DYSON JAMES LIMITED - Annual Accounts

Form: AA - Annual Accounts

GROUP OF COMPANIES' ACCOUNTS MADE UP TO 31/12/09

Filed on: 1 Oct 2010

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Dyson James Limited
R lg t d N b ########
Annual report and consolidated
financial statements for the year ended
## December ####
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Reglistered Number ########
Dyson James Limited
Annual report and consolidated financial statements for the
year ended ## December ####
Contents
Officers and professional advisor
Directors' report for the year ended ## December ####
Independent auditors' report to the members of Dyson James Limited
Consolidated profit and loss account for the year ended ## December ####
Statement of Group total recognised gains and losses for the year ended ## December ####
Consolidated balance sheet as at ## December ####
Company balance sheet as at ## December ####
Consolidated cash flow statement for the year ended ## December ####
Statement of accounting policies `
Notes to the financial statements for the year ended ## December ####

Dyson James Limited
Officers and professional advisor
Directors
M McCourt
P Richardson
J Shtpsey
Company Secretary
A Briggs
Independent Auditors
PricewaterhouseCoopers LLP
Chartered Accountant and Statutory Auditors
# Embankment Place
London
WCZN GRH
Principal Bankers
Lloyds TSB Bank PLC
## Corn Street
Bristol
BS## #LE
Principal Solicitors
Wragge ## Co
## Colmore Row
Birmingham
B# #AS
Registered Office
Tetbury Hill
Malmesbury
Wiltshire
SN## ORP
Registered Number
########
l
l l
l # i

Registered Number ########
Dyson James Limited
Directors’ report for the year ended ## December ####
The directors present their annual report together with the audited consolidated financial statements
of the Dyson James Limited Group (“the Group") for the year ended ## December ####
Principal activities
The principal activities of the Group are the invention, development and sale of domestic appliances
and commercial hand dryers The principal activity of the Company is that of a group holding
company
Business review
The results for the Group show sales of £### #m (#### £### #m) and a pre-tax profit of £### #m
(#### £## #m) for the year The Group's profit for the financial year was £### #m (#### £## #m),
this profit was transferred to reserves At year end the Group had net cash of £## #m (#### net
debt of £### #m)
Key performance indicators (“KPls”)
Given the straightforward nnature of the business, the directors are of the opinion that analysis using
KPis is not necessary for an understanding of the development, performance or position of the
business
Future outlook
The global economic environment is expected to remain challenging in #### However the Group
expects to sustain its strong performance through continued focus on product innovation
Principal risks and uncertainties
The risks and uncertainties to which the business is exposed are formally reviewed by the board and
appropriate processes are put in place to monitor and mitigate them The Group operates in a very
competitive market where high investment in research and development is required ID order to
sustain and extend the performance lead of Dyson products
Financial risk management
The Group's principal financial risks are those relating to pricing, foreign exchange, interest rates,
credit and liquidity The aim of the Group’s financial risk management policies is to optimise financial
performance by managing and mitigating those risks in the most cost~effective manner The Group
has a Treasury Committee, which advises the board on most financial risks It also has a Group
Credit Committee, which advises the board on customer credit risks
Foreign exchange risk
The Group operates in a number of countries across the world, and it both buys and sells in foreign
currencies It is Group policy that each Group company hedges all material foreign exchange
exposures in its own currency as they arise The results of this are consolidated and monitored at
Group level Anticipated exposures were not hedged during ####, but the weakness of sterling in
early #### led the Group to cover some of its anticipated exposures in Japanese yen and euro for the
remainder of #### Later in the year the Group hedged some of its anticipated exposure in Australian
dollar for the following ## months Most of the foreign currency denominated net assets of the
overseas operations are hedged into sterling
#

Registered Number ########
Dyson James Limited
Directors’ report for the year ended ## December ####
(continued)
Interest rate risk
As a result of its FX hedging policy, the Group has interest-bearing liabilities in a range of currencies
All are at floating interest rates in view of the relatively low level of net debt, together with the lack
of an exposure to interest rates in any one dominant currency, the Group has not sought to fix any of
its floating interest rate exposures
Dividends
Total dividends paid in respect of the year amounted to £##m (#### lint) Dividends paid on class A
equity shares amounted to £#m (#### £nil) Dividends paid on class B non-equity shares amounted
to £##m (#### Enll)
Research and development
The Group is committed to research and development Research and development costs amounting
to £## #m (#### £## #m) were expensed in the year
Donations
During the year the Group made donations of £# #m (#### £##m) for charitable purposes, all of
which were to the James Dyson Foundation (a registered charity) No payments were made for
political purposes (#### £nil)
Employee Involvement
The Group's ATM, for all members of staff and applicants for employment, is to fit the qualifications,
aptitude and ability of each individual to the appropriate ion and to provide equal opportunity
regardless of sex, religion or ethnic origin The Group does all that is practicable to meet its
responsibility towards the employment of disabled people
Where an employee becomes disabled, every effort is made to provide continuity of employment in
the same ion or a suitable alternative The training and re-training of staff is a high priority Much of
this training is on the job as well as by Internal and external courses it IS Group policy that career
development and promotion opportunities should be available to all employees The Group ensures
that all employees are kept up to date by regular meetings and newsletters with major developments
and changes within the organisation
Creditor payment policy
The Group agrees terms and conditions for its business transactions with suppliers Payment is
made on these terms, subtext to the terms and conditions being met by the supplier At the year end
the Company did not have any trade creditors (#### £nil)
#

Registered Number ########
Dyson James Llmited
Directors’ report for the year ended ## December ####
(continued)
Directors
The directors who held office during the year and up to the date of signing the financial statements
were as follows
Sir James Dyson (chairman until ## March ####)
R Ayltng (independent non-executive vice chairman until ## March ####, thereafter chairman)
The Rt Hon Str Richard Needham (independent non-executive)
J Clare (independent non-executive)
M McCourt
P Richardson
J Shlpsey
Sir James Dyson and the non-executive directors resigned on ## April ####, when they became
directors of Dyson James Group Limited (the parent company)
Directors’ indemnities
During the year and up to the date of approval of the Directors' Report the Group had in place
qualifying third party indemnity provisions available for the benefit of the directors of the Company
Statement of directors’ responsibilities
The directors are responsible for preparing 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 Group and parent company financial statements in
accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom
Accounting Standards and applicable law)
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 Group and the Company and of the
profit or loss of the Group 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,
~ state whether applicable United Kingdom Accounting Standards have been followed, subject to
any material departures disclosed and explained in the financial statements,
o 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, disclose with reasonable accuracy at any time the financial
position of the Company and the Group, and enable them to ensure that the financial statements
comply with the Companies Act #### They are also responsible for safeguarding the assets of the
Company and the Group and hence taking reasonable steps for the prevention and detection of fraud
and other irregularities
#

Registered Number ########
Dyson James Limited
Directors’ report for the year ended ## December ####
(continued)
Auditors and disclosure of information to auditors
The directors who held office at the date of approval of this Directors’ Report confirm that, so far as
they are each aware
~ there is no relevant audit information as defined by Section ### of the Companies Act #### of
which the Company’s auditor is unaware, and
o each director has taken all the steps that they ought to have taken as a director to make
themselves aware of any relevant audit information, and that the Company’s auditor is aware
of that information
independent Auditors
Pursuant to section ### of the Companies Act ####, the auditors will be deemed to be re-appointed
and PricewaterhouseCoopers LLP will therefore continue in office
By order of the Board on ## May ####
J Shtpsey
Director
I
I
#

Registered Number ########
Dyson James Limited
Independent auditors’ report to the members of Dyson James
Limited
We have audited the Group and parent company financial statements (the “financial statements") of
Dyson James Limited for the year ended ## December #### which comprise the Group profit and
loss account, the Group and Company balance sheets, the Group cash flow statement, the Group
statement of total recognised gains and losses, the statement of accounting policies and the related
notes The financial reporting framework that has been applied in their preparation is applicable law
and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting
Practice)
Respective responsibilities of directors and auditors
As explained more fully in the statement of directors' responsibilities set out on page # the directors
are responsible for the preparation of the financial statements and for being satisfied that they give a
true and fair view Our responsibility is to audit the financial statements in accordance with applicable
law and International Standards on Auditing (UK and Ireland) Those standards require us to comply
with the Auditing Practices Board’s Ethical Standards for Auditors
This report, including the opinions, has been prepared for and only for the Company’s members as a
body in accordance with Chapter # of Part ## of the Companies Act #### and for no other purpose
We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any
other person to whom this report is shown or into whose hands It may come save where expressly
agreed by our prior consent in writing
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements
sufficient to give reasonable assurance that the financial statements are free from material
misstatement, whether caused by fraud or error This includes an assessment of whether the
accounting policies are appropriate to the Group's and parent company ccircumstances and have
been consistently applied and adequately disclosed, the reasonableness of significant accounting
estimates made by the directors, and the overall presentation of the financial statements
Opinion on financial statements
In our opinion the financial statements
¢ give a true and fair view of the state of the Group’s and parent company’s affairs as at ##
December #### and of the Group’s profit and cash flows for the year then ended,
o have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice, and
¢ have been prepared in accordance with the requirements of the Companies Act ####
Opinion on other matters prescribed by the Companies Act ####
In our opinion the information given in the Directors' Report for the financial year for which the
financial statements are prepared is consistent with the financial statements
#

Registered Number ########
Dyson James Limited
Independent auditors’ report to the members of Dyson James
Limited (continued)
Matters on which we are required to report by exception
We have nothing to report ID respect of the following matters where the Companies Act #### requires
us to report to you if, In our opinion
» adequate accounting records have not been kept by the parent com pant, or returns
adequate for our audit have not been received from branches not visited by us, or
~ the financial statements are not in agreement with the accounting records and returns, or
v certain disclosures of directors’ remuneration specified by law are not made, or
~ we have not received all the information and explanations we require for our audit
Alison Lees (Senior Statutory Auditor)
For and on behalf of PricewaterhouseCoopers LLP
Chartered Accountants and Statutory Auditors
London
## May ####
#

Registered Number ########
Dyson James Limited
Consolidated profit and loss account for the year ended
## December ####
#### ####
Note £m Em
Turnover ### # ### #
Cost of sales (### #) (### #)
Gross profit ###.# ### #
Distribution expenses (##.#) (## #)
Administrative expenses (### #) (### #)
Operating profit # ###.# ## O
Interest receivable and similar income # # # # #
Interest payable and similar charges # (## #) (## #)
Profit on ordinary activities before taxation ### B ## #
Tax on profit on ordinary activities # (## #) (## #)
Profit for the financial year ## ### # ## #
All of the Group's operations are continuing
There IS no material difference between the profit on ordinary activities before taxation and the profit
for the financial year stated above and their historical cost equivalents
The notes and accounting policies on pages ## to ## form an Integral part of these financial
statements
# l

Registered Number ########
Dyson James Limited
Statement of Group total recognised gains and losses for the
year ended ## December ####
#### ####
£m £m
Profit for the financial year ### # ## #
Share buyback - (### #)
Currency translation differences on foreign currency net
Investment hedges #_# (# #)
Exchange adjustments taken to reserves relating to opening
IESSVVGS (# #) ## #
Exchange adjustments taken to resent/es relating to
movements in the current year # # # #
Total recognised gains/(losses) for the year ### # (## #)
The notes and accounting policies on pages ## to ## form an integral part of these financial
state enets
l #

Dyson James Limited
Registered Number ########
Consolidated balance sheet as at ## December ####
(###) I
#### #### #### ####
A/me £m Em £m Em
Fixed assets
Intangible assets # # # # #
Tangible assets ## ### ### #
## # # ## #
Current assets
Stocks ## ## # ## #
Debtors ## ### B ### #
Cash at bank and In hand ## # ## #
### # ### #
Creditors Amounts falling due
within one year ### (### #) (### #)
Net current assets ### # ### #
Total assets less current liabilities ### # ### #
Creditors Amounts falling due after
more than one year ##b (###) (####)
Provisions for liabilities and charges ## (##.#)
Net assets ###.# ## #
Capital and reserves
Called up share capital ## # # O #
Capital redemption reserve ## # # # #
Profit and loss reserve ## ###.# ## #
Toial shareholders’ funds__ ## ### # _ ## #
The notes and accounting policies on pages ## to ## form an Integral part of these financial
SISISITISDTS
The financial statements on pages # to ## were approved by the board of directors on ## May ####
and were signed on its behalf by
/ ,
J Shlpsey
Director
##

Dyson James Limited
Registered Number ########
Company balance sheet as at ## December ####
#### #### #### ####
Note £m £m £m £m
Fixed assets
Investments ## ### # ### #
Current assets
Debtors ## #.# # #
# # # #
Creditors* Amounts falling due
within one year ##a (# #) (##)
Net current assets/(liabilities) # # (# #)
Total assets less current liabilities ### # ### #
Creditors. Amounts falling due
after more than one year ###, ## #) #### #)
Net assets_ ___ _ ### _# ### #
Capital and reserves
Called up share capital ## # # # #
Capital redemption resent/e ## #.# # #
Profit and loss reserve ## ### # ## #
Revaluabon reserve _# ## ___## # ### #
Total shareholders’ funds ## ### # ### #
The notes and accounting policies on pages ## to ## form an Integral part of these financial
state enets
The financial statements on pages # to ## were approved by the board of directors on ## May ####
and were signed on Its behalf by
J Shipsey
Director
##

Dyson James Limited
Registered Number ########
Consolidated cash flow statement for the year ended ##
December ####
Note #### #### #### ####
Em Em Em Em
Net cash inflow from operating activities A ###.# ## #
Returns on investments and servicing
of finance
Interest received #.# # #
Interest paid (# #) (## #)
Preference share dividends paid (# #) (O #)
Non equity B share dividends paid (## #) -
Net cash outflow from returns on
investments and servicing of finance (## #) (# #)
Taxation (## #) (## #)
Capital expenditure and financial
Investments
Proceeds from sale of fixed assets # # # #
Purchase of fixed assets (## #) (## #)
Net cash outflow from capital
expenditure and financial investments (## #) (###)
Equity dividends paid (# #) -
Net cash inflow before financing ### # ## #
Financing
Purchase of own shares - (### #)
Repayment of unsecured loan (###.#) (## O)
New unsecured loan ## # ### #
Drawdown of other unsecured loans - # #
Arrangement fees paid (# #)
Net cash outflow from financing (### #) (## #)
Increase in net cash B # # # #
The notes and accounting policies on pages ## to ## form an integral part of these financial
$all€l'T'l€l#l$
##

Dyson James Limited
Registered Number ########
Notes to the consolidated cash flow statement for the year
ended ## December ####
A Reconciliation of operating profit to net cash inflow from
operating activities
#### ####
£m Em
Operating profit ### # ## #
Depreciation of tangible fixed assets ## # ## #
Amortisation of intangible fixed assets # # # #
Impairment of Intangible fixed assets - # #
(Profit) on disposal of tangible fixed assets (O #) (# #)
Decrease/(increase) In stocks ## # (## #)
(Increase) in debtors (# #) (## #)
Increase In creditors # # # #
Increase In provisions # # ## #
Foreign currency net investment hedges # # (# #)
Net cash inflow from operating activities __ ### # ## #
B Analysis and reconciliation of net funds/(debt)
At # At ##
January Exchange Non cash December
#### Cash flows Difference movement ####
Em £m Em £m £m
Cash at bank and In hand ## # # # (## #) ##.#
Overdrafts (# #) (# #) - (## #)
Total ## # # # (## #) - ## #
Unsecured loans (### #) ### # - (# #) (##.#)
Preference shares (# #) - - (# #)
B ordinary shares (# #) - - - (# #)
Net funds/(debt) (####) ### # (##.#) (o #) ## s
##

Registered Number ########
Dyson James Limited
Notes to the consolidated cash flow statement for the year
ended ## December #### (continued)
B Analysis and reconciliation of net funds/(debt) (continued)
#### ####
£m £m
Increase in net cash # # # #
Decrease/(Increase) In unsecured loans due within # year # # (# #)
Decrease/(Increase) in unsecured loans due after more than # year ### # (### #)
Change In net funds/(debt) resulting from cash flows ### # (### O)
Non cash movements (# #) # #
Translation difference (## #) # #
Net (debt)/funds at # January (###.#) # #
Net funds/(debt) at ## December ## # (####)
##

Registered Number ########
Dyson James Limited
Statement of accounting policies
Basis of accounting
These financial statements have been prepared on the going concern basis, under the historical cost
convention as modified by the revaluation of fixed asset Investments in the parent company balance
sheet and In accordance with the Companies Act #### and applicable accounting standards The
principal accounting policies which, unless otherwise stated, have been applied consistently with the
prior year, are set out below
Basis of consolidation
The Group financial statements consolidate those of the Company and all of its subsidiaries drawn up
to ## December each year using consistent accounting policies The unrealised profit of Intragroup
trading is eliminated on consolidation
Subsidiaries acquired are dealt with in the consolidated financial statements using acquisition
accounting Upon the acquisition of a subsidiary, fair values that reflect the condition at the date of
acquisition are attributed to the identifiable assets and liabilities acquired Adjustments are made to
bring the accounting policies of subsidiaries acquired into alignment with those of the Group Where
the fair value of the consideration paid exceeds the fair value of the acquired assets and liabilities. the
difference is treated as goodwill The results of businesses acquired are Included from the effective
date of acquisition and businesses sold are included up to the date of disposal
Turnover
Turnover IS recognised on delivery of product to customer or completion of service and represents
the invoiced value of goods and services derived from the Group's principal activities net of Value
Added Tax, discounts and promotional expenditure
Fixed asset investments
Investments in subsidiary undertakings are Initially recorded at cost and then subsequently revalued
to their net asset value at each balance sheet date Revaluation gains and losses are generally
taken to the revaluation reserve Revaluation losses which exceed previous gains are dealt with In
the profit and loss account Revaluation gains on entitles whose losses have been dealt with In the
profit and loss account In prior years are taken to the profit and loss account to the extent of the loss
Exchange gains are taken to reserves
Goodwill on consolidation
Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any
excess of the fair value of the consideration given over the fair value of the identifiable assets and
liabilities acquired, is capitalised and written off on a straight line basis over its useful economic life of
## years, which is management’s best estimate Provision is made for any Impairment, with the cost
taken to the profit and loss account
Financial Instruments
Non-equity shares are classified as creditors in the financial statements In accordance with FRS##
Dividends paid on non-equity shares are Included within Interest payable and similar charges in the
profit and loss account Dividends are recognised In the period In which they are approved In
accordance with FRS ##
##

Registered Number ########
Dyson James Limited
Statement of accounting policies (continued)
Tangible fixed assets
Tangible fixed assets are stated at historic purchase cost less accumulated depreciation Cost
includes the original purchase price of the asset and the costs attributable to bringing the asset to its
working condition for its Intended use
Depreciation is provided on tangible fixed assets at rates calculated so as to write off the cost. less
estimated residual value, of each asset on a straight line basis, over its useful economic life, as
follows
Freehold buildings #% per annum
Leasehold land and buildings Period of lease
Tooling ## #% per annum or product life In case of production line
Plant, equipment, fixtures and fittings
information Technology ## #% - ## #% per annum
Other ##-##% per annum
Motor vehicles ##% per annum
Assets In the course of construction are not depreciated until they are brought into use No
depreciation is provided against freehold land
Patents and licences
Patents and licences are stated at cost less accumulated amortisation Amortisation is provided from
the date of acquisition to write off the cost less estimated residual value of each asset (on a straight
line basis) over their useful economic lives of ## years
Stocks
Stocks are stated at the lower of cost and net realisable value Cost Includes all direct expenditure
and, where applicable, manufacturing support overheads Where necessary, provision is made for
obsolete, slow moving and defective stocks
Guarantee provision
A provision is recognised in the financial statements when an obligation exists at the balance sheet
date, rt is probable that an outflow of resources will be required to settle the obligation and a reliable
estimate of the obligation can be made
Provision is made for the cost of repairing appliances under the guarantee period of #-# years,
together with collection and return to the consumer where appropriate and is based on the expected
level of returns
Deferred taxation
Deferred tax is recognised In respect of all timing differences that have originated but not reversed at
the balance sheet date, where transactions or events that result in an obligation to pay more tax in
the future or a right to pay less tax in the future have occurred at the balance sheet date
A net deferred tax asset is recognised only when, on the basis of all available evidence, It can be
regarded as more likely than not that there will be suitable taxable profits against which to recover
carried don/card tax losses and/or from which the future reversal of underlying timing differences can
be deducted
##

Registered Number ########
Dyson James Limited
Statement of accounting policies (continued)
Deferred taxation (continued)
Deferred tax is measured at the average tax rates that are expected to apply In the periods in which the
timing differences are expected to reverse based on tax rates and laws that have been enacted or
substantively enacted by the balance sheet date Deferred tax is measured on a non-discounted basis
Foreign currencies
Items valued In the Gnanclal statements of each of the Group’s entitles are measured using the currency
of the primary economic environment In which the Group operates (the "functional currency") The
consolidated financial statements are presented in sterling, which is the Group's presentational
currency
Trading Items In foreign currencies are translated into sterling at the rate of exchange ruling at the date
of the transaction, or, If appropriate, at the forward contract rate Monetary assets and liabilities
denominated In foreign currencies are translated into sterling at mid-market rates of exchange ruling at
the balance sheet date Exchange differences arising on transactions are taken to the profit and loss
account
The results and financial position of all the Group entitles that have a functional currency different from
the Group’s presentational currency are translated into sterling as follows
~ assets and liabilities are translated at closing rates,
~ Income statements are translated at average rates, and
~ exchange differences are taken directly to reserves
Treasury and derivative instruments
All outstanding foreign exchange deals hedging exposures at the balance sheet are marked to
market using mid-market rates of exchange ruling at the balance sheet date Premta and discounts
on forward foreign exchange deals are taken to the profit and loss account as interest over the period
of the contract Premla on foreign exchange options are taken to the profit and loss account over the
period of the contract
Outstanding foreign exchange deals hedging anticipated exposures are not marked to market
Payments under credit default swaps are taken to the profit and loss account over the period of the
contract
Leases and hire purchase agreements
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis
over the life of the lease
Finance costs
Arrangement fees payable for entering into new loans are capitalised then charged to the profit and
loss over the life of the loan All other finance costs are expensed t the profit and loss account as
incurred
Pensions
Contributions In respect of defined contribution pension schemes are charged to the profit and loss
account as they fall due
##

Registered Number ########
Dyson James Limited
Statement of accounting policies (continued)
Research and development costs
Research and development costs are expensed to the profit and loss account as incurred
##

Registered Number ########
Dyson James Limited
Notes to the financial statements for the year ended ##
December ####
# Parent company
The parent company profit and loss account has not been presented as permitted by Section ### of
the Companies Act #### The parent company’s profit after tax for the year ended ## December
#### amounted to £### #m (#### £# #m)
# Segmental information
The disclosure of segmental information as laid down by SSAP ## - Segmental Reporting would, In
the opinion of the directors, be seriously prejudicial to the Interests of the Group Consequently these
disclosures have not been made
# Operating profit
#### ####
£m £m
Operating profit is stated after charging/(crediting)
Staff costs ###.# ### #
Research and development ##.# ## #
Depreciation of tangible assets ## # ## #
Amortisation of Intangible assets # # # #
Loss on foreign exchange # # # #
Operating leases - other # # # #
Operating leases - plant and machinery #.# # #
Impairment of Intangible assets - # #
##

Registered Number ########
Dyson James Limited
Notes to the financial statements for the year ended ##
December #### (continued)
# Operating profit (continued)
Auditor’s remuneration #### ####
Em £m
Fees payable to the Company auditor for the audit of the parent
company’s and consolidated accounts # # # #
Fees payable to the Company auditor and its associates for other
services
The audit of the Company’s subsidiaries, pursuant to legislation #.# # #
Tax services #.# O O
Other # # # #
#.# # #
# Directors’ remuneration
#### ####
£m Em
Aggregate emoluments # # # #
Company contributions paid to money purchase pension schemes # # # #
# # # #
The number of directors with benefits accruing during the year under money purchase schemes is #
(#### #)
The directors’ remuneration disclosed above Includes the following amounts for the highest paid
director
Highest paid director #### ####
£m £m
Aggregate emoluments # # # #
Company contributions paid to money purchase pension schemes # # # #
#.# # O
##

Dyson James Limited
Registered Number ########
Notes to the financial statements for the year ended ##
December #### (continued)
# Staff costs
#### ####
£m £m
Wages and salaries ### # ## #
Social security costs #.# # #
Other pension costs # # # #
### # ### #
One of the Company’s subsidiaries, Dyson Limited, operates defined contribution pension schemes
The assets are held and managed independently of the finances of that company
The average monthly number of employees (Including directors) during the year was as follows
By activity #### ####
Number Number
Production ## ##
Sales and administration #,### #.###
Research and development ### ###
#,### #,###
# Interest receivable and similar income
#### ####
Em £m
Bank interest # # # #
Discounts on don/card foreign exchange deals # # # #
# # # #
Bank interest was receivable at margins ranging from # #% to # #% below the relevant currency base
rate (#### #% below)
l
l
` I
I ##

Dyson James Limited
Registered Number ########
Notes to the financial statements for the year ended ##
December #### (continued)
# Interest payable and similar charges
#### ####
£m £m
Amortisation of bank loan arrangement fees # # # #
Preference share dividends # # # O
Non equity B-share dividends ## # # #
Bank interest # # ## #
Other Interest #.# -
Premra on forward foreign exchange deals # # # #
## # ## #
Bank Interest was payable on drawings under the Group revolving credit facility at # ##% above
LIBOR (#### # ##% above LIBOR) and on an overdraft facility at margins ranging from # #% to
# ##% above the relevant currency base rate (#### O #% above)
# Tax on profit on ordinary activities
#### ####
Em £m
Current tax
- UK corporation tax on profits of the period ## # ## #
- adjustments In respect of previous periods Q # (# #)
## # ## #
Double tax relief (#.#) (# #)
## # ## #
Overseas tax #.# # #
Total current tax ## # ## #
Deferred tax
- origination and reversal of timing differences (# #) # #
- adjustments in respect of previous periods (# #) O #
Total deferred tax (note ##) (# #) # #
Tax on profit on ordinary activities ##.# ## #
##

Registered Number ########
Dyson James Limited
Notes to the financial statements for the year ended ##
December #### (continued)
# Tax on profit on ordinary activities (continued)
The tax assessed for the year is higher (#### lower) than the standard rate of corporation tax in the
UK of ##% (#### ## #%) The differences are explained below
#### ####
£m £m
Profit on ordinary activities before tax ###.# ## #
Profit on ordinary activities multiplied by the standard rate ## # ## #
of corporation tax In the UK of ##% (#### ## #%)
Effects of
Non equity dividend disclosed as Interest #.# -
Timing differences on tax on patents sold Intragroup # # # #
Overseas deferred tax asset not recognised in respect of tax Incentives # # # #
Adjustments to tax charge In respect of previous periods # # (# #)
Short term timing difference relating to elimination of Intragroup profit # # (# #)
Different tax rates applicable In overseas subsidiaries # # # #
Capital allowances less than depreciation/(depreciation ID excess of
capital allowances) # # (# #)
Expenses not deductible for tax purposes # # O #
Use of overseas tax losses # # (# #)
Effect of tax rate change - (# #)
Other timing differences (# #) # #
Benefits of tax Incentives (#.#) (# #)
Current tax charge for year _ _ ##.# _ ## #
With effect from # April #### the United Kingdom corporation tax rate was reduced from ##% to ##%
This gave a blended ## #% tax rate for the prior year The Company’s profits for the current
accounting period are taxed at an effective rate of ##% and will be taxed at ##% In the future
The Group is subject to a number of factors that may affect future tax charges, principally the split of
profits across jurisdictions, tax rates Imposed In those jurisdictions and the availability of tax
Incentives
##

Dyson James Limited
Registered Number ########
Notes to the financial statements for the year ended ##
December #### (continued)
# Intangible assets - Group
Licences Goodwill Total
£m £m £m
Cost
At # January #### # # # # # #
At ## December #### # # # # # #
Accumulated amortisation
At# January #### # # # # # #
Charge for the year - # # #-#
At ## December #### # # # # # #
Net book amount
At ## December #### - # # # #
At ## December #### - # # # #
The Company does not hold any Intangible assets
#

Dyson James Limited
Notes to the financial statements for the year ended ##
December #### (continued)
## Tangible assets - Group
Registered Number ########
Plant,
Freehold Leasehold equipment,
land and land and fixtures and
buildings buildings Tooling fittings Total
£m £m £m £m Em
Cost
At # January #### ## # # # ### # ## # ###.#
Additions - # # # # ## # ## #
Disposals (# #) - (# #) (# #) (#.#)
Exchange differences # # (# #) (# #) (# #) (##.#)
At ## December #### ## # ## # ### # ##.# ### #
Accumulated depreciation
At # January #### # # # # ## # ## # ###.#
Charge for the year # # # # ## # ## # ## #
Disposals (# #) - (# #) (# #) (# #)
Exchange differences # # (# #) (# #) (# #) (# #)
At ## December #### # # # # ### # ## # ### #
Net book amount
At ## December #### ## # ## ## # ## # ## #
At ## December #### ## # # # ## # ## # ### #
The cost and net book values include assets In the course of construction as follows
At ## December #### #.# #.# # #
At ## December #### - # # # # # #
Capital expenditure contracted but not provided for at the year end was £# #m (#### £# #m)
##

Dyson James Limited
Notes to the financial statements for the year ended ##
December #### (continued)
## Investments - Company
Registered Number ########
£m
Unlisted Investments in subsidiaries at valuation
At # January #### ### #
Revaluation movements (## #)
At ## December #### ### #
Net book amount
At ## December #### ###.#
At ## December #### ### #
The principal subsidiaries held directly by the Company are as follows
Country of Shares Company
Company name “"¢°f°Va'°l" held )’\°id‘\'l# % Principal activity
Dyson Ltd UK Ordinary ### Sale and service of
domestic appliances
Dyson Research Ltd UK Ordinary ### Holder of exclusive brand
rights, licences and
trademarks
Dyson Technology Ltd UK Ordinary ### Research and
development, holder of
product design rights
Dyson Estates Ltd UK Ordinary ### Purchase and rental of
commercial premises
Dyson Finance Ltd UK Ordinary ### Provision of treasury
den/Ices
Dyson Exchange Ltd UK Ordinary ### Sale of domestic
appliances
##

Dyson James Limited
Notes to the financial statements for the year ended ##
December #### (continued)
## Investments - Company (continued)
Registered Number ##
The principal subsidiaries held indirectly by the Com pant are as follows
######
Country of Shares Company
Company name '"¢°f°i'=phi°" he"-# )'i°id""# % Prrnclpal activity
Dyson Appliances Australia Ordinary ### Sale and service of
(Australia) Pty Ltd domestic appliances
Dyson Canada Ltd Canada Ordinary ### Sale and service of
domestic appliances
Dyson SAS France Ordinary ### Sale and service of
domestic appliances
Dyson GmbH Germany Ordinary ### Sale and service of
domestic appliances
Dyson BV I-lowland Ordinary ### Sale and service of
domestic appliances
Dyson KK Japan Ordinary ### Sale and service of
domestic appliances
Dyson Manufacturing Malaysia Ordinary ### Manufacturing support
Sdn Bhd
Dyson International UK Ordinary ### Intermediate holding
Ltd C#t#D#I'l
Dyson Technology Inc USA Ordinary ### Intermediate holding
company
Dyson Inc USA Ordinary ### Sale and service of
domestic appliances
## Stocks
#### #### #### ####
Group Company Group Company
£m £m £m £m
Raw materials and consumables # # # #
Finished goods and goods for resale ## # ## #
##.# ## #
##

Registered Number ########
Dyson James Limited
Notes to the financial statements for the year ended ##
December #### (continued)
## Debtors
#### #### #### ####
Group Company Group Company
£m £m £m Em
Trade debtors ###.# - ### #
Amounts owed by Group undertakings - - # # -
Interest bearing
Amounts owed by Group undertakings - # #
non Interest bearing
Group relief receivable from Group
undertakings - #.# # #
Corporation tax recoverable # # # # - -
Deferred tax asset ## # - ## #
Other debtors # # - # # -
Prepayments and accrued Income # # # # # # O O
### # #.# ### # # #
Amounts owed by Group undertakings are unsecured and repayable on demand
Deferred tax comprises
#### ####
Em Em
Accelerated capital allowances # # # #
Other timing differences ## # ## #
Losses # # # #
_ I ## # ## #
There was no unprovoked deferred tax asset at ## December #### (#### £nil)
##

Dyson James Limited
Registered Number ########
Notes to the financial statements for the year ended ##
December #### (continued)
## Debtors (continued)
Movement on deferred tax asset
Group
#### ####
£m £m
At # January ## # ## #
Credited/(charged) to the profit and loss account # # (# #)
Charged to reserves (# #) '
Movements In exchange rates (charged)/credited to reserves (# #) # #
## # ## #
##a Creditors - Amounts falling due within one year
#### #### #### ####
Group Company Group Company
£m £m £m £m
Trade creditors ## # ## # -
Bank overdraft (see note ##) ##.# # # # #
Unsecured loan - # # -
Amounts owed to Group undertakings - - # #
Interest bearing
Amounts owed to Group undertakings - # # # #
non Interest bearing
Corporation tax ## # ## #
Other taxes and social security #.# # #
Other creditors ## # - ## # -
Accruals and deferred Income ## # # # ## # # #
Preference share dividends # # # # # # # #
### # # # ### # # #
Amounts due to Group undertakings are unsecured and repayable on demand The unsecured loan
IS guaranteed by the Company
##

Dyson James Limited
Registered Number ########
Notes to the financial statements for the year ended ##
December #### (continued)
##b Creditors - Amounts falling due after more than one year
#### #### #### ####
Group Company Group Company
£m Em £m £m
Loans due after more than one year (see
note##) ##.# #### ####
Authorised, allotted, called up and fully
paid non-equity share capital
#,### B ordinary shares of £# each # # # # # # # #
###,### preference shares of £# each # # #.# # # # #
____ ## # OJ ### # I ### #
The B ordinary shares are only entitled to distributable profits after payment of the preference
dividend and the first £#,###,### of other dividends have been distributed to the A# ordinary
shareholders They carry no votes at shareholder meetings and are only entitled to repayment of
their nominal value on a winding up
The preference shareholders are entitled to a fixed, cumulative dividend equal to #% of the nominal
capital of the shares per annum The dividend accrues from the date of subscription and is payable
yearly on the anniversary of the Issue of the preference shares
## Loans and other borrowings
#### #### #### ####
Group Company Group Company
£m £m £m Em
Bank loans ## # ### # ### #
Bank overdraft ##.# - # # # #
Preference shares # # # # O # # #
B ordinary shares # # # # O O # #
## # O # ### # ### #
##

Registered Number ########
Dyson James Limited
Notes to the financial statements for the year ended ##
December #### (continued)
## Loans and other borrowings (continued)
Maturity of financial liabilities
#### #### #### ####
Group Company Group Company
Em Em Em £m
In one year or less or on demand ### ## ## # # #
In more than two years, but not more than ##.# - ### # ### #
five years
## # # # ### # ### #
Financial liabilities due In one year or less or on demand relate to an overdraft facility of £## Om of
which £## #m has been drawn down and an indrawn overnight facility of $## Om The financial
liability due in more than two years, but not more than five years relates to a £## Om revolving credit
facility of which £## Om has been drawn down This facility matures ID February #### and reduces
by £## #m ID February each year The arrangement fee of £# #m has been offset against the balance
of the loan and IS being amortised over the life of loan, with £# #m charged to the profit and loss
account during the current year
## Provisions for liabilities and charges - Group
Guarantee Other Total
Em Em £m
At # January #### ## # # # ##.#
Charged to the profit and loss account # # # # # #
At ## December #### ## # ##.# ## #
The guarantee provision represents the cost of potential repair of goods under guarantee The Other
provision represents costs of restructuring and Intellectual property protection
A US subsidiary IS currently Involved In litigation with a competitor, who is claiming damages ID
respect of alleged patent Infringement The costs of conducting the litigation through to trial are
included in the Other provision No liability has been recognised in regard to the outcome because
the directors believe, on the basis of legal advice, that a negative outcome is not probable
## )

Dyson James Limited
Registered Number ########
Notes to the financial statements for the year ended ##
December #### (continued)
## Share capital
#### ####
£m Em
Authorised, allotted, called up and fully paid share capital
#,### A# ordinary shares of # #####p each (value £# ###) #.# # #
## Dividends
#### ####
Em £m
Equity shares
Interim dividend paid of £### ### per A# ordinary share # #
## Reconciliation of movements in shareholders’ funds
Gmup Capital
Share redemption Profit and Total Total
capital reserve loss reserve #### ####
£m £m Em £m £m
Shareholders' funds at # ### #
January # # O # ## # ###
Profit for the financial year - _ ### # ### # ## #
Dividends (# #) (# #) -
Repurchase of shares - - (### #)
Exchange differences - _ (# #) (# #) # #
Shareholders’ funds at ## # # # # ### # ### # ## #
December
##

Dyson James Limited
Registered Number ########
Notes to the financial statements for the year ended ##
December #### (continued)
## Reconciliation of movements in shareholders’ funds
(continued)
COIYIPGHY Capital Profit
Share redemption and loss Revaluation Total Total
Capital reserve reserve reserve #### ####
£m £m £m £m £m £m
Shareholders’
fund Sat# po po ### #### ###.# ####
January
Profit for the
financial year ### # ##### # #
Dividends (# #) (# #) -
Revaluation of
fixed asset
Investments (## O) (## #) # #
Share buyback _ - (### #)
Shareholders’
f""d$ #### po po #### ##:# zodiac ####
December
## Capital redemption reserve
#### ####
£m £m
Purchase of own shares (value E###) # # O #
An amount equal to the nominal value of the shares repurchased In #### was transferred to this
reserve ID order to maintain the capital base of the Company
## Controlling party
At ## December #### Dyson James Limited was a wholly owned subsidiary of Clear Cover Limited, a
company incorporated in Malta
##

Registered Number ########
Dyson James Limited
Notes to the financial statements for the year ended ##
December #### (continued)
## Controlling party (continued)
On # January #### Clear Cover Limited sold Dyson James Limited to Dyson James Group Limited (a
company Incorporated In the United Kingdom on ## November ####) In exchange for shares and
loan notes Clear Cover Limited remains the ultimate parent company The Initial set of financial
statements for Clear Cover Limited and Dyson James Group Limited will be for the period to ##
December ####
The ultimate controlling party is Str James Dyson by virtue of his controlling Interest In the shares of
Clear Cover Limited
## Related party transactions
The Company IS exempt under the terms of FRS # from disclosing related party transactions with
entities that are part of the Dyson James Limited Group Other related party transactions during the
year (all on normal commercial terms) were as follows
a) Profred Partners LLP, a limited liability partnership in which Str James Dyson has a beneficial
Interest, provided the Group with services amounting to £#,###,### (#### £#,###,###) during
#### At the year end the balance payable to Profred Partners LLP amounted to £##,### (####
£###,###) The Group provided staff services to Profred Partners LLP amounting to £##,###
(#### £##,###) At the year end the balance payable to Profred Partners LLP amounted to
£#,### (#### receivable of £#,###)
b) The Group provided staff services to White Rainbow Limited, a limited company In which Sir
James Dyson has a beneficial Interest, amounting to £###,### (#### £###,###) during the year
At the year end the balance receivable from White Rainbow amounted to £##,### (####
£##,###)
c) The Group leases a building from Lady Dyson, wife of Str James Dyson During the year the
Group paid rent of £###,### (#### £###,###) under the terms of the lease There were no
amounts outstanding at the year end
d) During ####, services totalling £##,### (#### £##,###) were provided by Richard Needham
Consultancy Ltd, a company in which the Rt Hon Str Richard Needham has a beneficial Interest
The Rt Hon Str Richard Needham is a non-executive director of Dyson James Limited
e) The Company charged £##,### (#### £###,###) to the profit and loss account in respect of
amounts payable to Sir James Dyson for the use of his Image At the end of ####, the balance
payable to the related party amounted to £###,### (#### £###,###)
f) The Group made donations of £###,### (#### £#,###,###) for charitable purposes to the James
Dyson Foundation (a registered charity) At the end of #### the Group owed £###,### (####
was owed £#,###) for donations not yet transferred
##

Registered Number ########
Dyson James Limited
Notes to the financial statements for the year ended ##
December #### (continued)
## Pension costs
Pension costs of £# Om (#### £# #m) were charged in the year ID relation to Group defined
contribution pension schemes £##,### (#### £#,###) was Included In other creditors at the year
end as amounts payable to the schemes
## Financial Commitments
#
The Group had annual commitments under non-cancellate ooperating leases expiring as follows
#### #### #### ####
Land and Land and
buildings Other buildings Other
£m £m £m £m
Within one year ## # # # # # #
Within two to five years #.# # # # # # #
In more than five years #.# - O # -
_ ## # # __ # # # #_
At the year end the Group had outstanding don/card foreign exchange contracts and foreign exchange
option commitments amounting to £### #m (#### £### Om)
## Contingent liabilities
The Group has given maximum guarantees of £##,### (#### £##,###) to HM Revenue and
Customs in respect of Dyson Exchange Limited’s deferment account (#### Dyson Limited)
The Company and certain other subsidiaries of Dyson James Limited have jointly and severally
guaranteed the borrowings on a £### Om bank facility This facility was reduced to £## Om t Mat
#### At ## December ####, the Group draw down was £## Om (#### £### Om) of which £natl (####
£### Om) IS Included In the Company’s year end balances
##