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REGISTERED NUMBER: 01477993 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 September 2024

for

Davroc Limited

Davroc Limited (Registered number: 01477993)






Contents of the Financial Statements
for the Year Ended 30 September 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


Davroc Limited

Company Information
for the Year Ended 30 September 2024







DIRECTORS: P Corbisiero
G Corbisiero
E Marsden





SECRETARY: P Corbisiero





REGISTERED OFFICE: Ibroc House
Essex Road
Hoddesdon
Hertfordshire
EN11 0QS





REGISTERED NUMBER: 01477993 (England and Wales)





AUDITORS: Curo Professional Services Ltd, Statutory Auditors
Curo House
Greenbox
Westonhall Road
Bromsgrove
Worcestershire
B60 4AL

Davroc Limited (Registered number: 01477993)

Strategic Report
for the Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

REVIEW OF BUSINESS
The Group's directors consider the Group's financial position and business performance to be very good. The Group has kept close control over costs in view of the current economic situation and the impact this has had on the industry.
The Group plans to continue its existing business in the year to come. The Group will continue to work extensively with existing clients. 2024 has seen further growth in Davroc's own brand, Coalbrook and 2025 will see a continuation of this growth. 2024 has seen the removal of two brands such that Davroc is able to concentrate on its own manufactured brands and those it solely distributes for.

PRINCIPAL RISKS AND UNCERTAINTIES
The Group's principal activity of manufacturing and wholesaling bathroom equipment and fittings is reliant on both maintaining good knowledge of ever changing customer tastes, and the UK economy. Sales in luxury items will always be impacted by variations in disposable income and the UK economy. As such, the fallout from the economic downturn and Brexit remains a risk to the company. We continue to manage this risk with careful selection of projects, and also by continuing to keep our manufacturing facilities within the United Kingdom.
The company is exposed to a number of financial risks from its operating activities. The business does not trade in financial instruments or currently use financial derivatives. The key financial risks are identified below:-

Credit risk
The company manages its credit risk by ensuring that it only engages with counter-parties that have high credit ratings. The company set and actively monitor credit limits for its customers based on reference checks and payment history.

Liquidity risk
The business manages its cashflow to ensure that it can meet its obligations and requirements.

KEY PERFORMANCE INDICATORS
The company has KPI's relating to this industry, focussed on maximising margins through effective distribution and brand management.

2024 2023 2022
Turnover £25,617,899 £30,638,089 £30,873,483
Turnover growth -<16% -<1% 23%
Operating profit £962,195 £830,828 £500,142

ON BEHALF OF THE BOARD:





P Corbisiero - Director


17 February 2025

Davroc Limited (Registered number: 01477993)

Report of the Directors
for the Year Ended 30 September 2024

The directors present their report with the financial statements of the company for the year ended 30 September 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of a builders merchant's factory and bathroom fittings manufacturer

DIVIDENDS
No interim dividends were paid during the year ended 30 September 2024.

The directors recommend final dividends per share as follows:

Ordinary 89900 shares 8.40
Ordinary A 10100 shares NIL
Ordinary B 1000 shares NIL

The total distribution of dividends for the year ended 30 September 2024 will be £ 755,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report.

P Corbisiero
G Corbisiero
E Marsden

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 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 company and of the profit or loss of the company 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;
-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 and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Davroc Limited (Registered number: 01477993)

Report of the Directors
for the Year Ended 30 September 2024


AUDITORS
The auditors, Curo Professional Services Ltd, Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





P Corbisiero - Director


17 February 2025

Report of the Independent Auditors to the Members of
Davroc Limited

Opinion
We have audited the financial statements of Davroc Limited (the 'company') for the year ended 30 September 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the year then ended;
-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 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Davroc Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, 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
- 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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and responding to risks of material misstatement due to fraud
The level of risk and ability to detect irregularities due to fraud was considered during the planning stage of the audit. A risk assessment was undertaken, taking into consideration the Company's policies, procedures and enquiries with management.

We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.

As required by auditing standards and considering our overall knowledge of the control environment, we performed procedures to address the risk of management override of controls and the risk of fraudulent transactions, in particular the risk that management may be in a position to make inappropriate accounting entries.

We performed procedures including:
- Evaluating the business purpose of journal entries and comparing the identified entries to supporting documentation.
- Evaluating the business purpose of significant bank payments and receipts and comparing these to supporting documentation.
- Walkthrough and further substantive testing on sales and purchases to identify weaknesses and override of internal controls.
- Using analytical procedures to identify any unusual or unexpected variances.

Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations
The level of risk and ability to detect irregularities due to non-compliance with laws and regulations was considered during the planning stage of the audit. A risk assessment was undertaken, taking into consideration the company's policies, procedures and compliance with laws and regulations.

We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.

Report of the Independent Auditors to the Members of
Davroc Limited


The company is subject to laws and regulations that directly affect the financial statements including financial reporting and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

The company is also subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, there is a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Anna Madden FCA (Senior Statutory Auditor)
for and on behalf of Curo Professional Services Ltd, Statutory Auditors
Curo House
Greenbox
Westonhall Road
Bromsgrove
Worcestershire
B60 4AL

24 February 2025

Davroc Limited (Registered number: 01477993)

Statement of Comprehensive Income
for the Year Ended 30 September 2024

2024 2023
Notes £    £   

TURNOVER 4 25,617,899 30,638,089

Cost of sales 17,500,221 22,378,556
GROSS PROFIT 8,117,678 8,259,533

Administrative expenses 7,160,116 7,434,705
957,562 824,828

Other operating income 5,275 6,000
OPERATING PROFIT 6 962,837 830,828

Interest receivable and similar income 49,206 18,143
1,012,043 848,971

Interest payable and similar expenses 7 3,419 3,756
PROFIT BEFORE TAXATION 1,008,624 845,215

Tax on profit 8 228,755 294,857
PROFIT FOR THE FINANCIAL YEAR 779,869 550,358

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

779,869

550,358

Davroc Limited (Registered number: 01477993)

Balance Sheet
30 September 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 472,907 707,623

CURRENT ASSETS
Stocks 11 9,286,129 8,707,756
Debtors 12 7,327,455 8,343,550
Cash at bank and in hand 1,500,854 1,592,734
18,114,438 18,644,040
CREDITORS
Amounts falling due within one year 13 3,027,813 3,782,071
NET CURRENT ASSETS 15,086,625 14,861,969
TOTAL ASSETS LESS CURRENT
LIABILITIES

15,559,532

15,569,592

PROVISIONS FOR LIABILITIES 15 51,014 85,943
NET ASSETS 15,508,518 15,483,649

CAPITAL AND RESERVES
Called up share capital 16 101,000 101,000
Retained earnings 15,407,518 15,382,649
SHAREHOLDERS' FUNDS 15,508,518 15,483,649

The financial statements were approved by the Board of Directors and authorised for issue on 17 February 2025 and were signed on its behalf by:




G Corbisiero - Director



P Corbisiero - Director


Davroc Limited (Registered number: 01477993)

Statement of Changes in Equity
for the Year Ended 30 September 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 October 2022 101,000 16,007,291 16,108,291

Changes in equity
Dividends - (1,175,000 ) (1,175,000 )
Total comprehensive income - 550,358 550,358
Balance at 30 September 2023 101,000 15,382,649 15,483,649

Changes in equity
Dividends - (755,000 ) (755,000 )
Total comprehensive income - 779,869 779,869
Balance at 30 September 2024 101,000 15,407,518 15,508,518

Davroc Limited (Registered number: 01477993)

Notes to the Financial Statements
for the Year Ended 30 September 2024

1. STATUTORY INFORMATION

Davroc 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.

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


The financial statements are rounded to the nearest £1.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirements of paragraph 12.26;
the requirement of paragraph 33.7.

Going concern
The financial statements have been prepared on the going concern basis on the grounds that the directors believe that there is sufficient funding in place to support the business for the next twelve months from the date of approval of the 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
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

The company assesses at each reporting date whether tangible fixed assets are impaired.

Depreciation is charged to the profit and loss account over the estimated useful lives of each part of an item of tangible fixed assets.The estimated useful lives are as follows:

Fixtures and fittings - 20% - 33.3% on cost
Motor vehicles - 33.3% on cost
Leasehold property - 10% on cost

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits.

Stocks
Stocks have been valued at the lower of cost and the estimated selling price less costs to sell. At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.


Davroc Limited (Registered number: 01477993)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

2. ACCOUNTING POLICIES - continued
Taxation
Tax on the profit or loss 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 directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. The following timing differences are not provided for; differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met; and differences relating to investments to the extent that it is not probable that they will reverse in the foreseeable future and the reporting entity is able to control the reversal of the timing difference. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense.

Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet. Deferred tax balances are not discounted.

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.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 plan. A defined contribution plan is a post-employment benefit plan under which the company pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in the profit and loss account in the periods during which services are rendered by employees.

Davroc Limited (Registered number: 01477993)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

2. ACCOUNTING POLICIES - continued

Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price, including any transaction costs, and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Creditors
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

Financial instruments
The Company only enters into basic financial instruments 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 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 Statement of Comprehensive Income.

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 established 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.

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.

Provisions and contingencies
Provisions are made where an event has taken place that gives the Company 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.

Davroc Limited (Registered number: 01477993)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

2. ACCOUNTING POLICIES - continued

Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet 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 Balance Sheet.

Contingent liabilities are recognised as a provision when the likelihood of economic outflow is assessed as probable. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company's control. Contingent liabilities are not recognised as a provision but are instead disclosed in the financial statements when the likelihood of economic settlement is deemed possible and not probable. Contingent liabilities are not recognised as a disclosure when the probability of an outflow of resources is remote.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of financial statements requires management to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on a continuing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

The directors consider that there are no significant judgements or estimates in the preparation of these financial statements.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 25,117,849 30,606,313
Overseas 500,050 31,776
25,617,899 30,638,089

Davroc Limited (Registered number: 01477993)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

5. EMPLOYEES AND DIRECTORS

20242023
££
Wages and salaries3,380,3113,630,109
Social security costs350,417354,708
Other pension costs70,75768,946
3,801,4854,053,763

The average number of employees during the year was as follows:

20242023

Distribution and marketing6769
Administration and establishment4450
111119

2024 2023
£    £   
Directors emoluments 325,000 365,546
Defined contribution pension scheme 3,750 4,362
328,750 369,907

The aggregate of remuneration and amounts receivable under long term incentive schemes of the highest paid director was £125,000 (2023: £100,000) and company pension contributions of £3,750 (2023: £3,687) were made to a money purchase scheme on their behalf.

Retirement benefits are accruing to 1 director under money purchase schemes (2023: 1).

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Other operating leases 738,995 621,797
Depreciation - owned assets 503,023 535,821
Profit on disposal of fixed assets (17,569 ) (28,970 )
Auditors' remuneration 13,500 12,600
Foreign exchange differences 26,611 53,557

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Interest payable 3,419 3,756

Davroc Limited (Registered number: 01477993)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 263,684 205,458

Deferred tax (34,929 ) 89,399
Tax on profit 228,755 294,857

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 1,008,624 845,215
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

252,156

160,591

Effects of:
Expenses not deductible for tax purposes 7,080 7,332
Adjustments to tax charge in respect of previous periods (35,103 ) -
Depreciation on ineligibles 7,697 6,559
Tax saved due to super deduction claimed - (1,916 )
Tax in respect of group relief - (45,763 )
Part year taxed at new rate - 26,892
Motor vehicle transferred at TWDV instead of NBV (3,075 ) (1,455 )
Deferred tax asset not recognised - 121,991
Movement in tax rates - 20,626
Total tax charge 228,755 294,857

9. DIVIDENDS
2024 2023
£    £   
Ordinary share of 89900
Final 755,000 1,175,000

Davroc Limited (Registered number: 01477993)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

10. TANGIBLE FIXED ASSETS
Fixtures
Short and Motor
leasehold fittings vehicles Totals
£    £    £    £   
COST
At 1 October 2023 639,446 872,789 833,445 2,345,680
Additions - 22,996 274,518 297,514
Disposals - - (336,949 ) (336,949 )
At 30 September 2024 639,446 895,785 771,014 2,306,245
DEPRECIATION
At 1 October 2023 444,219 633,116 560,722 1,638,057
Charge for year 173,166 81,801 248,056 503,023
Eliminated on disposal - - (307,742 ) (307,742 )
At 30 September 2024 617,385 714,917 501,036 1,833,338
NET BOOK VALUE
At 30 September 2024 22,061 180,868 269,978 472,907
At 30 September 2023 195,227 239,673 272,723 707,623

11. STOCKS
2024 2023
£    £   
Stocks 9,286,129 8,707,756

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 3,748,428 4,102,955
Amounts owed by group undertakings 1,165,837 1,212,823
Other debtors 1,724,611 2,234,429
Prepayments and accrued income 688,579 793,343
7,327,455 8,343,550

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 1,912,956 2,141,020
Amounts owed to group undertakings 145,662 89,209
Tax 85,599 231,087
Social security and other taxes 76,203 77,710
VAT 333,131 571,949
Other creditors 171,149 145,259
Accruals and deferred income 303,113 525,837
3,027,813 3,782,071

Davroc Limited (Registered number: 01477993)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

14. LEASING AGREEMENTS
Operating Leases
Minimum future lease payments 2024 2023
£    £   

Within 1 year 660,450 632,781
2-5 years 1,592,719 428,446
Over 5 years - -
Total 2,253,169 1,061,227

The annual cost of operating lease payments was £738,995 (2023 - £621,797).

15. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 51,014 85,943

Deferred
tax
£   
Balance at 1 October 2023 85,943
Credit to Statement of Comprehensive Income during year (25,455 )
Utilised during year (9,474 )
Balance at 30 September 2024 51,014

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1 Ordinary 89900 89,900 89,900
1 Ordinary A 10100 10,100 10,100
1 Ordinary B 1000 1,000 1,000
101,000 101,000

17. PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £70,757 (2023: £73,308).

Davroc Limited (Registered number: 01477993)

Notes to the Financial Statements - continued
for the Year Ended 30 September 2024

18. RELATED PARTY DISCLOSURES

The company trades on normal commercial terms with Lefroy Brooks Diffusion Limited and Original Bathrooms Limited, companies which are under common control of the directors.

During the year the company made sales to Lefroy Brooks Diffusion Limited totalling £400,498 (2023 - £177,389).

During the year the company made purchases from Lefroy Brooks Diffusion Limited totalling £4,072,065 (2023 - £3,800,168).

During the year the company made sales to Original Bathrooms Limited totalling £647,518 (2023 - £NIL).

During the year the company made purchases from Original Bathrooms Limited of £822 (20223 - £NIL).

At the year end the company owed £352,280 (2023: (£2,034,230) ) to Lefroy Brooks Diffusion Limited.

At the year end the company was owed £81,873 (2023: £52,836) by Original Bathrooms Limited.

Private insurance costs totalling £6,982 were paid on behalf of directors' close family members in the year.

At the year end the company owed £249 (2023: £NIL) to directors' close family members in respect of unpaid business expenses.

Transactions between wholly-owned subsidiaries within the group have not been disclosed in line with the provisions of FRS102 33.1A.

19. PARENT COMPANY

The company is a wholly owned subsidiary of Ibroc Investments Limited, a company incorporated in England and Wales. The financial statements of this company are available to the public and may be obtained from the following address:

Ibroc House,
Essex Road,
Hoddesdon,
United Kingdom,
EN11 0QS