Dhoot Transmission ( UK ) Limited

STRATEGIC REPORT YEAR ENDED 31 MARCH 2023 Review of the business The group's principal business activity is the manufacture and sale of wiring harnesses. The group was created during 2017/18 by the acquisition of the entire issued share capital of TFC Cable Assemblies Ltd and Parkinson Harness Technology Ltd. The directors consider that the turnover, gross margin and net profitability are a satisfactory result for the group. The group profit before taxation is £2,001,964 (2022 - £2,191,138) and the profit after taxation is £1,597,711 (2022 - £1,710,590). The group has a strong net current assets position of £8,545,083 (2022 - £7,024,526) and the total shareholders funds at the balance sheet date are £10,950,450 (2022 - £9,352,789). The directors consider that the strong financial position will allow further expansion in the future. The main key performance indicators are turnover and gross margin which are monitored through monthly management accounts. Principal risks and uncertainties The principal risks are: 1. Reduced demand from the company's main markets 2. Increased costs of raw materials and energy 3. Major changes in exchange rates 4. Adverse changes in legislation 5. Competitive pressure 6. Uncertainty over the UK's future trading relationship with Europe. 7. Potential effects of the Covid 19 pandemic. The group has strategies to manage these risks and the directors are confident that they will continue to be successful. Plans for the future Further acquisitions may be made as and when suitable opportunities arise. The acquisitions represent a policy to expand the group's market share and manufacturing base. The directors consider that the strength of the group's financial position will allow it to pursue this policy successfully.