Registered number:
For the year ended
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DYWIDAG Systems International Limited
Company Information
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DYWIDAG Systems International Limited
Contents
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DYWIDAG Systems International Limited
Strategic Report
For the year ended 31 December 2020
The directors present the strategic report for the year ended 31 December 2020.
Trading conditions, in the backdrop of the COVID-19 pandemic have been challenging, and it is a testament to the continued hardwork of the Company’s employees that the Company has produced a solid financial performance in 2020. The impact of COVID-19 on the business was witnessed in a material decrease in the demand for its products and services in the first half of 2020, driven primarily by temporary closures of customers’ construction sites. Although the Company achieved higher levels of turnover in the second half of the year, it did not match the turnover level delivered in the year ended 31st December 2019.
Despite the impact of COVID-19, the directors are happy to report the increase in sales of its concrete accessories business, delivered under the DY.CO brand. Turnover of this business unit increased by 20.7% in the year, and the strategic growth of this product line is planned to continue into 2021. This change in the mix of business, together with improved gross margins in the Geotechnical business saw an overall improvement in the gross profit percentage from 18.9% in 2019 to 23.7% in 2020. The year also saw a material decrease in the level of administrative expenses. Firstly, these cost reductions resulted from a planned reallocation of senior management costs to other parts of the group, and cost synergies achieved by consolidating certain support functions in the UK. Secondly, the impact of government’s COVID-19 social distancing and lockdown measures dramatically reduced the amount of travel and marketing costs, as our sales teams switched to interacting with our customer’s remotely.
The risks and uncertainties facing the company are those common with well established businesses and company remains acutely aware of competitive pressures in the market. The key uncertainty faced by the business at this time is the ongoing impact of the COVID-19 pandemic on the UK and Ireland economies. The company has taken swift action to mitigate the impact of COVID-19, including , but not limited to, deferring non-critical spending, rationalising labour costs, and leveraging available government support measures. The full impact of COVID-19 is not yet known, and may remain the case for a protracted length of time. The directors remain vigilant and are monitoring the situation closely and will take further steps where necessary.
The Company remains dependent on suppliers of good in mainland Europe for its materials and as a result has monitored closely the conclusion of the UK’s exit from the European Union. As the deal agreed with the European Union secured the continuation of a zero-tariff regime, the main impact on the company, so far, has been increased costs and time associated with the preparation of import and export document for the shipment of goods to and from the EU. The directors anticipate that longer term effects of the UK’s decision to leave the EU may impact the company further and will take appropriate action as is necessary.
In the year ended 31/12/2020 turnover decreased by 13.8%, with a corresponding fall in cost of sales by 19%. As a result the gross profit percentage increased from 18.9% in 2019 to 23.7% in 2020.
Profit before tax increased in the period from £6,268 in 2019 to £949,993 in 2020.
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DYWIDAG Systems International Limited
Strategic Report (continued)
For the year ended 31 December 2020
This report was approved by the board
and signed on its behalf.
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DYWIDAG Systems International Limited
Directors' Report
For the year ended 31 December 2020
The directors present their report and the financial statements for the year ended 31 December 2020.
The directors are responsible for preparing the strategic report, the directors' report and the
financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year
. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙
select suitable accounting policies and then apply them consistently;
∙
make judgements and accounting estimates that are reasonable and prudent;
∙
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £
914,209
(2019:
£
26,499
)
.
Dividends of £Nil (
2019: £Nil
) were paid during the year. The directors do not recommend the payment of a final dividend.
The directors who served during the year were:
After a positive year with a positive return despite challenging circumstances, management are committed to continuing this upward trend.
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DYWIDAG Systems International Limited
Directors' Report (continued)
For the year ended 31 December 2020
Liquidity risk
The company seeks to manage financial risk by ensuring that sufficient liquidity is available to meet foreseeable requirements. Credit risk The company has no significant concentrations of credit risk with its major customers. Procedures are in place to closely manage credit risk on all customers.
There have been no significant events affecting the Company since the year end.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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DYWIDAG Systems International Limited
Independent Auditors' Report to the Members of DYWIDAG Systems International Limited
We have audited the financial statements of DYWIDAG Systems International Limited (the 'Company') for the year ended 31 December 2020, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity
and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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DYWIDAG Systems International Limited
Independent Auditors' Report to the Members of DYWIDAG Systems International Limited (continued)
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
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DYWIDAG Systems International Limited
Independent Auditors' Report to the Members of DYWIDAG Systems International Limited (continued)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: • The nature of the industry and sector, control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets. • Enquiring of local management and parent company management, including obtaining and reviewing supporting documentation, concerning the Company's policies and procedures relating to: - Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; - Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected of alleged fraud; - The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. • Discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud; • Obtaining an understanding of the legal and regulatory frameworks that the Company operates in, focusing on those laws and regulations that had a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or that had a fundamental effect on the operations of the Company, including General Data Protection requirements, Anti-bribery and corruption policy and the Coronavirus Job Retention Scheme. Audit response to risks identified Our procedures to respond to risk identified included the following: • Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; • Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; • Evaluation and testing of the operating effectiveness of management’s controls designed to prevent and detect irregularities; • Enquiring of management concerning actual and potential litigation and claims; • Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; • Reading minutes of meetings of those charged with governance, reviewing correspondence with regulators; and • Carrying out substantive testing to confirm the validity and accuracy of 'furlough' claims.
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DYWIDAG Systems International Limited
Independent Auditors' Report to the Members of DYWIDAG Systems International Limited (continued)
Audit response to risks identified (continued)
We have also considered the risks noted above in addressing the risk of fraud through management override of controls: • Testing the appropriateness of journal entries and other adjustments; • Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and • Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our auditors' report.
This report is made solely to the Company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants & Statutory Auditors
Lancashire Gate
21 Tiviot Dale
SK1 1TD
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DYWIDAG Systems International Limited
Statement of Comprehensive Income
For the year ended 31 December 2020
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DYWIDAG Systems International Limited
Registered number:
02049781
Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 12 to 30 form part of these financial statements.
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DYWIDAG Systems International Limited
Statement of Changes in Equity
For the year ended
31 December 2020
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
DYWIDAG Systems International Limited is a private company limited by shares, incorporated in the United Kingdom. The address of the company's registered office and its principal place of business is Northfield Road, Southam, Warwickshire, CV47 0FG.
The principal activity of the company for the year was the supply of specialised ranges of geotechnical and construction accessory products to the civil engineering and construction industries.
2.
Accounting policies
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2.
Accounting policies (continued)
The company has taken advantage of the following disclosure exemptions under FRS 101:
∙
the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations
∙
the requirements of IFRS 7 Financial Instruments: Disclosures
∙
the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
∙
the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 79(a)(iv) of IAS 1;
- paragraph 73(e) of IAS 16 Property, Plant and Equipment;
- paragraph 118(e) of IAS 38 Intangible Assets;
- paragraphs 76 and 79(d) of IAS 40 Investment Property; and
- paragraph 50 of IAS 41 Agriculture
∙
the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
∙
the requirements of IAS 7 Statement of Cash Flows
∙
the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
∙
the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
∙
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
∙
the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
Where required, equivalent disclosures are given in the consolidated financial statements of DYWIDAG Systems International GMBH, a company incorporated in Austria. The largest consolidated financial statements within which the company's results are included is Tension II Acquico SARL, a company registered in Luxembourg. Copies of the consolidated financial statements can be obtained from that company's registered office, which is 2C Rue Albert Borschette, L-1246, Luxembourg.
In the first quarter of 2020, the World Health Organisation recognised the spread of COVID-19 as a global pandemic. The Company was impacted by the suspension of activity at certain construction industry customers’ sites. Although this direct interruption to the Company’s activity was short-lived, the general uncertainty in the UK economy has led to a moderate decrease in the demand for the Company’s products.
It may be viewed that the level of uncertainty caused by COVID-19 is now reduced, however the economic outlook, in the backdrop of COVID-19 still offers a range of potential outcomes. The management team still remain vigilant, and will continue to take advantage of key government support measures as necessary.
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2.
Accounting policies (continued)
New standards, amendments and interpretations coming into effect from 1 January 2020
Management have concluded that there is no impact on the financial statements as a result of the following changes to International Financial Reporting Standards: - Amendments to IFRS 3 (Business combinations) - definition of a business; - Amendments to IFRS 7 (Financial instruments: disclosures), IFRS 9 (Financial instruments) and IAS 39 (Financial instruments: recognition and measurement) - Interest Rate Benchmark Reform; - Amendments to IFRS 16 (Leases) - COVID-19 related rent concessions; - Amendments to IAS 1 (Presentation of Financial Statements )and IAS 8 (Changes in accounting policies, changes in accounting estimates and errors) - definition of material; - Revisions to the Conceptual Framework for Financial Reporting. New standards not yet effective There are a number of new standards, amendments and interpretations which have been issued by the International Accounting Standards Board that are effective in future periods, that the company has decided not to adopt early. The following amendments are effective for the accounting year beginning 1 January 2022: - Amendments to IAS 37 (Onerous contracts) - the cost of fulfilling a contract; - Amendments to IAS 16 (Property, plant and equipment) - proceeds before intended use; - Amendments to IFRS 1 (First time adoption of IFRS), IFRS 9, and IFRS 16 - Annual improvements to IFRS 2018-2020; - Amendments to IFRS 3 - References to conceptual framework. The following amendments are effective for the accounting year beginning 1 January 2023: - Amendments to IAS 1 (Presentation of financial statements) - clarity on when liabilities should be classified as current or non-current. Management are currently assessing the impact of these new accounting standards, amendments and interpretations. Management do not believe that any of the proposed changes will have a material impact on the financial statements of the company. The above standards considered have been endorsed by the European Union. With effect from 1 January 2021, the company will report under International Financial Reporting Standards as adopted by the United Kingdom, which are anticipated to be identical to those standards adopted by the European Union.
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2.
Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2.
Accounting policies (continued)
Grants for revenue expenditure are presented as part of the profit or loss in the periods in which the expenditure is recognised.
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2.
Accounting policies (continued)
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2.
Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2.
Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the balance sheet.
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Fair value through profit or loss
Debt instruments at amortised cost
Impairment of financial assets
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
2.
Accounting policies (continued)
Financial liabilities
Fair value through profit or loss
At amortised cost
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
Provisions against stocks Management review sales patterns and forecasts regularly, and use these to identify potentially slow moving or impaired items of stock, and make appropriate provisions where necessary. During the year, a charge of £121,166 was processed in the Statement of Comprehensive Income in respect of stock provisions. Provisions against debtors Management review aged debts on a regular basis, and make appropriate provision where recovery of debtors is deemed to be doubtful. During the year, a charge of £72,000 ( 2019: £48,000 ) was processed in the Statement of Comprehensive Income in respect of doubtful debts. IFRS 16 - leases The company recognises right of use assets and lease liabilities as described in accounting policy note 2.7 (leases). During the year, interest charges of £5,470 ( 2019: £4,577 ) and depreciation of £44,035 ( 2019: £41,780 ) were charged to the Statement of Comprehensive Income. The carrying values of right of use assets and lease liabilities are disclosed in notes 13 (Tangible fixed assets), 17 (Creditors: amounts falling due within one year),18 (Creditors: amounts falling due after more than one year) and note 20 (Leases). Such amounts are affected by the discount rates used by the company when recognising the right of use assets and lease liabilities, which are determined in line with the accounting standard. These estimates, by their nature, tend to involve judgement in respect of the current knowledge pertaining to a future event and as such the actual cash flows and the timing of those cash flows may be difference. To the extent that it is practicable, independent third-party assessments are sought in order to corroborate these judgements.
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
Analysis of turnover by country of destination:
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
12.
Taxation (continued)
There were no factors that may affect future tax charges.
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
The company uses a debt factoring service whereby the company receives a proportion of qualifying debts from the factoring company on a non-recourse basis. As a result, debtors are deemed to be settled at the point when monies are received from the factor. The value of trade debtors factored at the year end, which have been settled in these financial statements, is £1,815,911 (
2019: £1,432,415
).
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
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DYWIDAG Systems International Limited
Notes to the Financial Statements
For the year ended 31 December 2020
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £97,633 (
2019: £131,159
) . Contributions totalling £Nil (
2019: £17,141
) were payable to the fund at the balance sheet date and are included in creditors.
The immediate parent company is DSI Construction Holdings UK Limited, a company registered in the United Kingdom, by virtue of its controlling stake in the voting share capital of the company.
The smallest group into which the results of the company are consolidated is that headed by DSI International Holding Luxembourg SARL, a company registered in Luxembourg. The ultimate parent company is Tension II AcquiCo SARL, registered in Luxembourg, and is the largest group into which the results of the company are consolidated. Copies of the consolidated financial statements can be obtained from that company's registered office, which is 2C Rue Albert Borschette, L-1246, Luxembourg. The ultimate controlling party is Triton Fund III LP by virtue of its controlling stake in the ultimate parent company.
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