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Registered number:
11911214
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DATUM ALLOYS GROUP LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE PERIOD ENDED 31 JULY 2019
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DATUM ALLOYS GROUP LIMITED
REGISTERED NUMBER:
11911214
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT
31 JULY 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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TOTAL ASSETS LESS CURRENT LIABILITIES
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Creditors: amounts falling due after more than one year
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The
financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the consolidated statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 5 to 17 form part of these financial statements.
Page 1
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DATUM ALLOYS GROUP LIMITED
REGISTERED NUMBER:
11911214
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT
31 JULY 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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TOTAL ASSETS LESS CURRENT LIABILITIES
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Creditors: amounts falling due after more than one year
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The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the consolidated statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 5 to 17 form part of these financial statements.
Page 2
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DATUM ALLOYS GROUP LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED
31 JULY 2019
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Equity attributable to owners of parent Company
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Movement on foreign currency translation
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TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
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Shares issued during the period
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TOTAL TRANSACTIONS WITH OWNERS
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Movement on foreign currency translation
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TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
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Shares issued during the period
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TOTAL TRANSACTIONS WITH OWNERS
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The notes on pages 5 to 17 form part of these financial statements.
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Page 3
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DATUM ALLOYS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED
31 JULY 2019
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Shares issued during the period
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The notes on pages 5 to 17 form part of these financial statements.
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Page 4
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
Datum Alloys Group Limited (registered number: 11911214) is a private company, limited by shares and incorporated in England and Wales. The registered office is Unit 9 Torr Hill Park, Torr Quarry Industrial Estate, East Allington, Totnes, Devon, England, TQ9 7QQ.
2.
ACCOUNTING POLICIES
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BASIS OF PREPARATION OF FINANCIAL STATEMENTS
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
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The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements.
The following principal accounting policies have been applied:
The company was incorporated on 28 March 2019. On 6 June 2019 the company acquired Datum Capital Limited and its subsidiary companies. These financial statements cover the period from acquisition to 31 July 2019 as Datum Alloys Group Limited did not undertake any significant activities before the acquisition date.
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
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the Group has transferred the significant risks and rewards of ownership to the buyer;
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the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
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the amount of revenue can be measured reliably;
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it is probable that the Group will receive the consideration due under the transaction; and
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the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Page 5
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
2.
ACCOUNTING POLICIES (continued)
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OPERATING LEASES: THE GROUP AS LESSEE
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Rentals paid under operating leases are charged to the Consolidated statement of income and retained earnings on a straight line basis over the lease term.
Finance costs are charged to the Consolidated statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in the Consolidated statement of income and retained earnings in the period in which they are incurred.
DEFINED CONTRIBUTION PENSION PLAN
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.
Page 6
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
2.
ACCOUNTING POLICIES (continued)
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CURRENT AND DEFERRED TAXATION
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The tax expense for the period comprises current and deferred tax. Tax is recognised in the Consolidated statement of income and retained earnings, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
∙
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
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Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
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Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
GOODWILL
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated statement of income and retained earnings over its useful economic life.
OTHER INTANGIBLE ASSETS
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Page 7
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
2.
ACCOUNTING POLICIES (continued)
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TANGIBLE FIXED ASSETS (CONTINUED)
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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:
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Long-term leasehold property
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over the term of the lease
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3 - 5 years straight line
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1 - 3 years straight line
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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 the Consolidated statement of income and retained earnings.
Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Consolidated statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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CASH AND CASH EQUIVALENTS
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Page 8
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
2.
ACCOUNTING POLICIES (continued)
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PROVISIONS FOR LIABILITIES
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Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Consolidated statement of income and retained earnings in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position 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 Statement of financial position.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of income and retained earnings.
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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The average monthly number of employees, including directors, during the period was
33
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Page 9
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
Page 10
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
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Long-term leasehold property
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Acquisition of subsidiary
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Charge for the period on owned assets
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Charge for the period on financed assets
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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Page 11
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
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Investments in subsidiary companies
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The following were subsidiary undertakings of the Company:
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Unit 9 Torr Hill Park, Torr Quarry Industrial Estate, East Allington, Totnes, England, TQ9 7QQ
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Unit 9 Torr Hill Park, Torr Quarry Industrial Estate, East Allington, Totnes, England, TQ9 7QQ
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407 Airport Road, Endicott, NY 13760
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One Raffles Place Tower 2, Level 20, #25, Singapore, 048616
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Raw materials and consumables
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The difference between purchase price or production cost of stocks and their replacement cost is not material.
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Page 12
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
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Amounts owed by group undertakings
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Prepayments and accrued income
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CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Net obligations under finance leases and hire purchase contracts of £30,825 are secured upon the assets to which they relate.
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CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
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Net obligations under finance leases and hire purchase contracts
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Net obligations under finance leases and hire purchase contracts of £2,569 are secured upon the assets to which they relate.
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Page 13
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
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Included in other loans falling due within 2-5 years are £2,500,000 10 per cent secured loan notes which are repayble on 6 June 2024 or an exit date, which ever is sooner. The rate of interest is 10% per annum and is accrued daily and due for payment biannually in arrears. At the year end accrued interest of £38,339 is included in other loans due within one year. The loan notes are secured over the assets of the group and ranks behind the loan facility detailed below but ahead of all other charges.
Included in other loans falling due within 2-5 years is a £1,000,000 loan facility which is repayble on 6 June 2023 or an exit date, which ever is sooner. The rate of interest is 8% per annum and is accrued daily and due for payment biannually in arrears. At the year end accrued interest of £12,259 is included in other loans due within one year. The loan facility is secured over the assets of the group and has priority over all other secruities.
Included in other loans falling due after more than 5 years are £884,500 10 per cent unsecured loan notes which are repayable on an exit date. The rate of interest is 10% per annum and is accrued daily. The 50% of the interest charged is due for payment biannually in arrears with the remaining being due on redemption. At the year end interest of £6,782 is included in other loans due within one year and £6,782 is included in other loans due after more than 5 years. The loan notes are unsecured and rank behind the facilities described above.
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AMOUNTS FALLING DUE WITHIN ONE YEAR
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AMOUNTS FALLING DUE 2-5 YEARS
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AMOUNTS FALLING DUE AFTER MORE THAN 5 YEARS
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HIRE PURCHASE AND FINANCE LEASES
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Minimum lease payments under hire purchase fall due as follows:
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Net obligations under finance leases and hire purchase contracts are secured upon the assets to which they relate.
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Page 14
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
13.
DEFERRED TAXATION (CONTINUED)
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Charged to profit or loss
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Arising on business combinations
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Charged to profit or loss
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Accelerated capital allowances
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Tax losses carried forward
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Short term timing differences
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Page 15
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
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ALLOTTED, CALLED UP AND FULLY PAID
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50,162
Ordinary
shares of £
0.01
each
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420,000
A Shares
shares of £
0.01
each
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1,045,790
B Shares
shares of £
0.01
each
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At 31 July 2019 the Group and Company had capital commitments as follows:
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Contracted for but not provided in these financial statements
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The Group operates two defined contributions pension plans, one in the United Kingdom (under auto enrolment) and one in the United States of America. The Group makes fixed percentage contributions to pension schemes selected by each employee. Employees in the United Kingdom choosing to opt out of auto enrolment may elect to pay contributions into their own private pension schemes.
The Group also makes contributions to the Central Provident Fund (CPF) for staff employed in Singapore as required by law. The CPF scheme is accounted for as a defined contribution pension scheme. The assets of the schemes are held separately from those of the Group in independently administered funds.
The pension cost charge represents contributions payable by the Group to the funds and amounted to £5,405. Contributions totalling £1,623 were payable to the funds at the reporting date and are included in creditors.
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COMMITMENTS UNDER OPERATING LEASES
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At 31 July 2019 the Group and the Company had future minimum lease payments under non-cancellable operating leases as follows:
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Later than 1 year and not later than 5 years
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Page 16
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DATUM ALLOYS GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2019
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RELATED PARTY TRANSACTIONS
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The Company is the immediate parent of Datum Capital Limited (a company registered in England and
Wales), and the parent of Datum Alloys Limited (a company registered in England and Wales), Datum Alloys Inc (a company incorporated in the USA) and Datum Alloys Pte Limited (a company registered in Singapore), the results of which are contained in these consolidated financial statements. The Company has taken advantage of the exemption within FRS102 (section 33.12A) not to disclose transactions or balances with entities which form part of the Group.
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The company is owned by a number of individual investors that hold their shares on trust through Rockpool Investment Nominee – a nominee company. None of these individual investors is considered to have ultimate control over Datum Alloys Group Limited and as such there is no ultimate controlling party.
The auditors' report on the financial statements for the period ended 31 July 2019 was unqualified.
The audit report was signed on
24 December 2019
by
Robert Davey FCA
(Senior statutory auditor) on behalf of
Bishop Fleming LLP
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Page 17
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