Diamond Facilities Support Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07145959 (England and Wales)

REPORT OF THE DIRECTORS AND

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

DIAMOND FACILITIES SUPPORT LIMITED

Page

Company Information

1

Report of the Directors

2

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTORS:

P A Brooks

J A Gray

H R Cooper-Atkins

A Cooper-Atkins

REGISTERED OFFICE:

Unit 2222 - 2226

The Crescent

Birmingham Business Park

Birmingham

B37 7YE

REGISTERED NUMBER:

07145959 (England and Wales)

ACCOUNTANTS:

Philip Barnes & Co Limited

Chartered Accountants

The Old Council Chambers

Halford Street

Tamworth

Staffordshire

B79 7RB

The directors present their report with the financial statements of the company for the year ended 31 December 2020.

REVIEW OF BUSINESS

Business Performance

In 2020 the business started the year well with above expectation performance in January but due to the pandemic we saw a drop off in turnover in February and then a significant drop off from March through to June. From July until November we regained ground only to see another drop off in November and December due to further restrictions that the Government introduced in order to control the virus.

Lockdowns and tiered restrictions have caused a very unpredictable turnover, that said Diamond has managed to navigate through this difficult time and returned a profit for the year unlike many other businesses.

Although we do operate within the Retail, Hospitality and Leisure sectors we also have work within Transport, Logistics, Student Accommodation and Care which in the main continued. We also found that our M&E compliance work continued throughout.

Again, we continue to develop our diversity & service offering through our subsidiary divisions. Diamond is truly a one stop shop for both hard and soft services, the ongoing investment is based on our medium-term goals in line with our strategy but short term this does impact on margin and profitability.

As a business our ethos remains one of direct employment, this is what sets us apart from the competition - over 90% of all reactive maintenance and M&E compliance services are with our own direct labour.

We continue to follow our 5-year strategic plan although we have taken the opportunity to revise this. We will continue to invest in our business and its subsidiaries through 2021 - we are starting to see a take up of additional services and in-particular with our cleaning division through 2020.

The pandemic enabled us to review the business, reshape and focus on what is important.

- Service

- Cost Efficiency

- Content staff & happy clients

- Profitability

We have revised our turnover targets and although we remain a national FM provider our focus will be on service and profitability, with Diamond being a great place to work. We will choose clients carefully and work with only those that fit with our selection criteria, so we are able to continue providing a great service to those we work with.

One opportunity that emerged through the pandemic is the supply of products through our cleaning division and we have now created a health, hygiene, cleaning and janitorial supplies operation. This completely compliments our soft services proposition and drives additional revenue giving additional opportunities.

Our structure continues to be as follows:

Diamond Complete

- Our integrated and complete service offering.

Helpdesk Plus

- Our FM helpdesk solution.

Diamond Compliance

- Full M&E servicing and remedial works.

Sanctuary Fire & Security

- Full M&E servicing and remedial works.

Jet Through

- Specialist drainage works.

Nationwide Property Clean

- Specialist commercial cleaning and soft services.

Diamond Environmental

- Waste, water and energy.

Our client base continues to be strong with key clients across many sectors such as Care, Retail, Leisure and Student Accommodation. Our client base is also using our additional services through our developing subsidiaries. In-particular our cleaning division has benefitted from the additional product and cleaning demands that the pandemic has created. As always, we have a steady pipeline of opportunity and no one client dominates our sales split.

Diamond is a well-known and growing brand within FM with a solid reputation for service and reliability, this will serve us well over the coming years as we continue to cement our place in the sector.

Financial Performance

The year ended with a turnover of £5.96m, a gross profit of £1.14m (19%) and a net profit of £0.16m (2.6%). This was a better than expected result given the pandemic and the continued development of the subsidiaries. Acting quickly to reshape and adapt to the changing environment was key and the performance underpins our robust business model.

Business Development

Our key markets continue to be Care, Retail, Leisure, Industrial, Education, Disaster Recovery, Transport and Logistics. We will continue to look to gain momentum within the care and education sectors as we see these as an ongoing key targets for both Diamond and its subsidiaries.

We have added to the business development team as we look to regain lost ground due to the pandemic through 2021.

Our national strategy is to provide a quality and personal service with care and urgency at the heart of everything we do being underpinned by operational efficiency. We are targeting both the acquisition of new clients but also increasing what we do with existing clients by introducing our subsidiary businesses.

Our vision remains to become the leading national FM provider in terms of client service and innovation.

Health, safety, quality and environment

We continue to hold all necessary standards including now ISO45001. We work with a retained consultant and Peninsula on all health, safety, quality and environmental processes and procedures. Our record continues to be second to none.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report.

P A Brooks

J A Gray

H R Cooper-Atkins

A Cooper-Atkins

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

A Cooper-Atkins - Director

27 January 2021

FIXED ASSETS

Tangible assets

4

259,447

493,307

Investments

5

300

300

259,747

493,607

CURRENT ASSETS

Stocks

269,907

40,878

Debtors

6

1,634,652

2,244,136

1,904,559

2,285,014

CREDITORS

Amounts falling due within one year

7

1,548,318

2,252,894

NET CURRENT ASSETS

356,241

32,120

TOTAL ASSETS LESS CURRENT LIABILITIES

615,988

525,727

CREDITORS

Amounts falling due after more than one year

8

(71,702

)

(139,344

)

PROVISIONS FOR LIABILITIES

10

(17,206

)

-

NET ASSETS

527,080

386,383

CAPITAL AND RESERVES

Called up share capital

11

218,400

218,400

Capital redemption reserve

21,600

21,600

Retained earnings

287,080

146,383

SHAREHOLDERS' FUNDS

527,080

386,383

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and loss account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 January 2021 and were signed on its behalf by:

H R Cooper-Atkins - Director

1.	STATUTORY INFORMATION

Diamond Facilities Support Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared in accordance with the provisions of Section 1A ''Small Entities'' of Financial Reporting Standard 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention and on a going concern basis. The financial statements are prepared in pounds sterling, the functional currency, rounded to the nearest £1.

Preparation of consolidated financial statements

The financial statements contain information about Diamond Facilities Support Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

33% on cost and 20% on cost

Plant and machinery

-

33% on cost

Fixtures and fittings

-

20% on cost

Motor vehicles

-

25% reducing balance

Computer equipment

-

33% on cost

Government grants

Government grants in relation to expenditure are credited when the expenditure is charged to profit and loss.

Investments in subsidiaries

Investments in subsidiaries are valued at cost less impairment.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The Company 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 non-puttable 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 financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

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 Profit and Loss account.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Operating lease commitments

Rentals under operating leases are charged to the profit and loss account on a straight line basis over the lease term.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are

recognised when paid. Final equity dividends are recognised when approved by the shareholders at

an annual general meeting.

3.

EMPLOYEES

The average number of employees during the year was 74 (2019 - 98 ) .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 January 2020

52,024

135,948

79,049

Additions

-

2,864

1,542

Disposals

-

-

-

At 31 December 2020

52,024

138,812

80,591

DEPRECIATION

At 1 January 2020

33,368

108,805

62,379

Charge for year

6,219

18,048

8,200

Eliminated on disposal

-

-

-

At 31 December 2020

39,587

126,853

70,579

NET BOOK VALUE

At 31 December 2020

12,437

11,959

10,012

At 31 December 2019

18,656

27,143

16,670

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2020

579,005

174,702

1,020,728

Additions

28,038

3,330

35,774

Disposals

(234,779

)

-

(234,779

)

At 31 December 2020

372,264

178,032

821,723

DEPRECIATION

At 1 January 2020

184,200

138,669

527,421

Charge for year

67,785

18,216

118,468

Eliminated on disposal

(83,613

)

-

(83,613

)

At 31 December 2020

168,372

156,885

562,276

NET BOOK VALUE

At 31 December 2020

203,892

21,147

259,447

At 31 December 2019

394,805

36,033

493,307

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 January 2020

501,914

27,363

529,277

Additions

28,038

-

28,038

Disposals

(170,191

)

-

(170,191

)

At 31 December 2020

359,761

27,363

387,124

DEPRECIATION

At 1 January 2020

151,044

495

151,539

Charge for year

65,883

9,030

74,913

Eliminated on disposal

(55,352

)

-

(55,352

)

At 31 December 2020

161,575

9,525

171,100

NET BOOK VALUE

At 31 December 2020

198,186

17,838

216,024

At 31 December 2019

350,870

26,868

377,738

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2020

and 31 December 2020

300

NET BOOK VALUE

At 31 December 2020

300

At 31 December 2019

300

The company's investments at the Balance Sheet date are in respect of group undertakings.

Balance sheet totals of subsidiary companies:

2020

2019

£

£

Jet Through Limited

(132,825

)

(76,824

)

Nationwide Property Clean Limited

(16,494

)

(56,282

)

Sanctuary Fire & Security Limited

(215,475

)

(143,142

)

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

1,053,943

2,011,659

Other debtors

580,709

232,477

1,634,652

2,244,136

Included in other debtors are amounts due from subsidiary companies totalling £393,558 (2019 : £90,627), please see note 5. The subsidiary companies were setup in 2018, this company is providing financial support whilst these companies are being established.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

174,009

386,902

Hire purchase contracts (see note 9)

131,693

175,099

Trade creditors

694,548

1,179,774

Taxation and social security

488,824

401,093

Other creditors

59,244

110,026

1,548,318

2,252,894

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Hire purchase contracts (see note 9)

71,702

139,344

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2020

2019

£

£

Net obligations repayable:

Within one year

131,693

175,099

Between one and five years

71,702

139,344

203,395

314,443

Non-cancellable operating

leases

2020

2019

£

£

Within one year

73,147

73,147

Between one and five years

31,574

106,721

104,721

179,868

10.	PROVISIONS FOR LIABILITIES

2020

2019

£

£

Deferred tax

17,206

-

Deferred

tax

£

Charged for the year (P&L)

17,206

Balance at 31 December 2020

17,206

The deferred tax liability consists of accelerated capital allowances.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

218,400

Ordinary

£1

218,400

218,400

12.	RELATED PARTY DISCLOSURES

Transactions with entities in which the directors have control, joint control or significant influence over the

entity.

2020

2019

£

£

Purchases

72,423

187,134

Management consultancy charges

-

2,000

Rent and service charges

30,871

63,752

Transactions with entities over which the entity has control, joint control or significant influence.

2020

2019

£

£

Sales

196,782

253,488

Purchases

584,008

1,123,369

Amount due from related parties

358,088

193,590

Guarantees and securities

Security has been provided in the form of guarantee by Diamond Facilities Support Limited for bank loans totalling £442,312 in My Iglu Limited, a company in which the directors have a participating interest.

Security has been provided in the form of guarantee by Diamond Facilities Support Limited for bank loan totalling £750,000 in Diamond Build PLC, a company in which the directors have a participating interest.

13.	COVID-19 PANDEMIC

The business in 2020 was adversely affected by the pandemic, turnover dropped by 31% in the year. The business manages over 5,000 sites nationwide, many of which were forced to close during national lockdowns implemented by the Government to control the spread of the virus. The business was projected to turnover £7.7m with a 5% net profit which was in line with previous years.