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REGISTERED NUMBER: SC373245 (Scotland)
















Unaudited Financial Statements

for the Year Ended 29 February 2024

for

Davis Track Hire Ltd

Davis Track Hire Ltd (Registered number: SC373245)






Contents of the Financial Statements
for the Year Ended 29 February 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 4


Davis Track Hire Ltd

Company Information
for the Year Ended 29 February 2024







DIRECTORS: T Davis
J B Davis





SECRETARY: J B Davis





REGISTERED OFFICE: 103a Main Street
Newmains
Wishaw
ML2 9BG





REGISTERED NUMBER: SC373245 (Scotland)





ACCOUNTANTS: Gillespie & Anderson
Chartered Accountants
147 Bath Street
Glasgow
G2 4SN

Davis Track Hire Ltd (Registered number: SC373245)

Balance Sheet
29 February 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 9,875,184 9,530,950
Investment property 5 373,050 373,050
10,248,234 9,904,000

CURRENT ASSETS
Debtors 6 1,131,376 1,301,216
Cash at bank and in hand 549,901 548,232
1,681,277 1,849,448
CREDITORS
Amounts falling due within one year 7 3,176,769 2,955,159
NET CURRENT LIABILITIES (1,495,492 ) (1,105,711 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,752,742

8,798,289

CREDITORS
Amounts falling due after more than one
year

8

(3,959,648

)

(5,379,084

)

PROVISIONS FOR LIABILITIES (1,340,810 ) (815,536 )
NET ASSETS 3,452,284 2,603,669

CAPITAL AND RESERVES
Called up share capital 10 10
Retained earnings 3,452,274 2,603,659
SHAREHOLDERS' FUNDS 3,452,284 2,603,669

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 29 February 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 29 February 2024 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.

Davis Track Hire Ltd (Registered number: SC373245)

Balance Sheet - continued
29 February 2024


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 & Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 12 November 2024 and were signed on its behalf by:





J B Davis - Director


Davis Track Hire Ltd (Registered number: SC373245)

Notes to the Financial Statements
for the Year Ended 29 February 2024

1. STATUTORY INFORMATION

Davis Track Hire Ltd is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements are prepared on the going concern basis of accounting as, in the opinion of the directors, there are no matters of material uncertainty which cast doubt on the company's ability to continue.

Significant judgements and estimates
In preparing the financial statements, management are required to make judgements, estimates and assumptions, based on historical experience and other relevant factors. Actual results may differ from these best estimates, which are reviewed on an ongoing basis.

The significant items in the financial statements where these judgements are required (and the factors in play) include debtors (likelihood of recovery), fixed assets (depreciation rates & useful lives), and the going concern basis of accounting.

Turnover
Turnover derived from ordinary activities is measured at the fair value of consideration received or receivable and represents the net sales of goods (excluding value added tax, sales discounts and rebates) after adjusting for work in progress.

Such turnover is recognised when the company becomes entitled to the income concerned and when the outcome of the transaction can be reliably measured. This occurs when:
- the company has transferred to the buyer the significant risks and rewards of ownership of the goods;
- the company no longer retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- it is probable that the economic benefits associated with the transaction will flow to the company; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery etc - 33% on reducing balance, 33.3% on cost, 25% on cost, 25% on reducing balance, 20% on reducing balance, 20% on cost and 6.67% on cost

Factors such as a change in how an asset is used, significant unexpected wear and tear, technological advancement, and changes in market prices may indicate that the residual value or useful life of an asset has changed since the most recent annual reporting date. If such indicators are present, the company will review its previous estimates and, if current expectations differ, amend the residual value, depreciation method or useful life, accounting for such revisions as a change in an accounting estimate in accordance with FRS 102.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Davis Track Hire Ltd (Registered number: SC373245)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has no complex financial instruments but does hold basic financial instruments of cash at bank, debtors and creditors.

Cash and cash equivalents comprise cash at bank and on hand, foreign currency on hand, demand deposits with banks and other short term highly liquid investments with original maturities of three months or less and bank overdrafts. A bank overdraft would be shown within current liabilities.

Trade and other debtors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less losses for bad debts except where the effect of discounting would be immaterial. In such cases, trade and other debtors are stated at cost less losses for bad debts.

Trade and other creditors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate unless the effect of discounting would be immaterial. In such cases, trade and other creditors are stated at cost.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit & 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.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Employee benefits
The total cost of employee benefits to which employees have become entitled as a result of service rendered to the entity during the reporting period are recognised and charged to the profit and loss account in the period to which they relate.

Davis Track Hire Ltd (Registered number: SC373245)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

2. ACCOUNTING POLICIES - continued

Provision for liabilities
A provision is initially recognised when there is an obligation at the balance sheet as the result of a past event, it is probable that there will be a transfer of funds in settlement and the amount of the obligation can be estimated reliably. The provision is subsequently measured by placing a charge against the provision only for expenditure for which the provision was originally recognised.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 49 (2023 - 49 ) .

4. TANGIBLE FIXED ASSETS
Plant and
machinery
etc
£   
COST
At 1 March 2023 15,262,246
Additions 1,545,721
Disposals (135,348 )
At 29 February 2024 16,672,619
DEPRECIATION
At 1 March 2023 5,731,297
Charge for year 1,189,211
Eliminated on disposal (123,073 )
At 29 February 2024 6,797,435
NET BOOK VALUE
At 29 February 2024 9,875,184
At 28 February 2023 9,530,949

Davis Track Hire Ltd (Registered number: SC373245)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

4. TANGIBLE FIXED ASSETS - continued

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

Plant and
machinery
etc
£   
COST
At 1 March 2023 10,687,088
Additions 869,002
Disposals (4,345 )
At 29 February 2024 11,551,745
DEPRECIATION
At 1 March 2023 2,915,827
Charge for year 975,862
Eliminated on disposal (869 )
At 29 February 2024 3,890,820
NET BOOK VALUE
At 29 February 2024 7,660,925
At 28 February 2023 7,771,261

5. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 March 2023
and 29 February 2024 373,050
NET BOOK VALUE
At 29 February 2024 373,050
At 28 February 2023 373,050

Fair value at 29 February 2024 is represented by:
£   
Valuation in 2022 373,050

If the property had not been revalued it would have been included at the following historical cost:

2024 2023
£    £   
Cost 373,050 373,050

The investment property was valued on an open market basis basis on 29 February 2024 by the directors of the company .

Davis Track Hire Ltd (Registered number: SC373245)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,019,893 1,008,167
Other debtors 111,483 293,049
1,131,376 1,301,216

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts 355,491 355,491
Hire purchase contracts and finance leases 1,915,380 1,825,687
Trade creditors 758,744 711,934
Taxation and social security 107,260 31,871
Other creditors 39,894 30,176
3,176,769 2,955,159

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans 447,512 804,865
Hire purchase contracts and finance leases 3,512,136 4,574,219
3,959,648 5,379,084

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 135,085 -

9. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 803,003 1,160,356
Hire purchase contracts and finance leases 5,427,516 6,399,906
6,230,519 7,560,262

The Clydesdale Bank plc hold a deed of assignment over an insurance policy held by the company (with an insured sum of £281,250) dated December 2015, together with a floating charge over all other assets of the company.

In addition, the bank also hold a standard security over the company's property at Lanniesmuir Farm, Wishaw dated December 2021, whilst the directors have given personal guarantees totalling £100,000 as security over the company's banking facilities.

Liabilities under hire purchase and finance lease contracts are secured over the assets concerned.

Davis Track Hire Ltd (Registered number: SC373245)

Notes to the Financial Statements - continued
for the Year Ended 29 February 2024

10. CAPITAL COMMITMENTS
2024 2023
£    £   
Contracted but not provided for in the
financial statements 1,542,775 130,000

11. OTHER FINANCIAL COMMITMENTS

After the financial year but prior to the formal approval of these financial statements, the company made dividend distributions totalling £418,420 (2023 - £80,040).

12. RELATED PARTY DISCLOSURES

During the year, total dividends of £375,204 (2023 - £375,348) were paid to the directors, with the remaining shareholders (being the directors' spouses) receiving £250,136 (2023 - £250,232).

At the financial year end, the directors of the company had advanced loans totalling £2,440 (2023 - £3,478) to the company. The loans are regarded as interest free and repayable on demand.

In addition, Heathfield (Scotland) Limited is regarded as a related party of the company under FRS 102 - other debtors at 28 February 2024 include an amount of £20,000 relating to an interest free loan (repayable on demand) due from that company (2023 - £20,000).

13. ULTIMATE CONTROLLING PARTY

The company was under the control of the directors, Mr T Davis & Mr J B Davis throughout the course of the current and the prior financial years.