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REGISTERED NUMBER: 07266151 (England and Wales)









DAVID DAVIES RESOURCES LTD

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024






DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Income and Retained Earnings 9

Statement of Financial Position 10

Statement of Cash Flows 12

Notes to the Statement of Cash Flows 13

Notes to the Financial Statements 15


DAVID DAVIES RESOURCES LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2024







DIRECTORS: Mr A C Davies
Mr M J Davies
Mr R D Davies





SECRETARY: Mrs M A K Davies





REGISTERED OFFICE: Newhouse Farm
Minsterley
Shrewsbury
Shropshire
SY5 0HR





REGISTERED NUMBER: 07266151 (England and Wales)





AUDITORS: Xeinadin Audit Limited
St Andrews House
Yale Business Village
Ellice Way
Wrexham
LL13 7YL

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024


The directors present their strategic report for the year ended 31 May 2024.

REVIEW OF THE BUSINESS
The Directors are satisfied with the results for the year given the competitive pressures that prevailed in the market place. During the year the company invested in buildings, plant and equipment to commence free range egg production.

The company's key financial indicators during the year were as follows:


2024 2023
£ £
Turnover 15,873,547 13,528,669
Operating profit 974,296 2,249,002
Profit before tax 510,309 2,078,054


PRINCIPAL RISKS AND UNCERTAINTIES
The general risks and uncertainties facing the company are the general competitive pressures in the market place.

FUTURE DEVELOPMENTS
The Company will continue to focus on improving margins and to grow profits. Further expansion of the free range egg production is ongoing.

ON BEHALF OF THE BOARD:





Mr A C Davies - Director


11 April 2025

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MAY 2024


The directors present their report with the financial statements of the company for the year ended 31 May 2024.

PRINCIPAL ACTIVITIES
The principal activities of the company in the year under review were those of Provision of staff, production, packing and selling of eggs and production and selling of milk.

DIVIDENDS
Final dividends were paid during the year of £NIL: (2023: £NIL).

RESEARCH AND DEVELOPMENT
A Research and Development claim has been made for the year ended 31 May 2024 , which results in an enhanced expenditure claim of £1,143,760. This will create a Taxable Trading loss,. Group relief is being claimed and the balance of losses will be carried forward.

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

Mr A C Davies
Mr M J Davies

Other changes in directors holding office are as follows:

Mr R D Davies - appointed 19 July 2023

STRATEGIC REPORT
The company has chosen in accordance with Companies Act 2006,s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008,Sch.7, to be contained in the directors' report. It has done so in respect of risks and future developments.

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.


DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MAY 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr A C Davies - Director


11 April 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DAVID DAVIES RESOURCES LTD


Opinion
We have audited the financial statements of David Davies Resources Ltd (the 'company') for the year ended 31 May 2024 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 31 May 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DAVID DAVIES RESOURCES LTD


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.

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 pages three and four, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DAVID DAVIES RESOURCES LTD


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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management and those charged with governance around actual and potential litigation and claims;
- Reviewing minutes of meetings of those charged with governance;
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
- Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the group and company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the group and company is subject to many other laws and regulations where the consequence of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the company's license to operate. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management 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.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit."

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
DAVID DAVIES RESOURCES LTD


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.




Timothy Mitchell BSc FCA (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited
St Andrews House
Yale Business Village
Ellice Way
Wrexham
LL13 7YL

11 April 2025

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2024

2024 2023
Notes £    £   

TURNOVER 15,873,547 13,528,669

Cost of sales 12,147,198 9,559,400
GROSS PROFIT 3,726,349 3,969,269

Administrative expenses 2,752,053 1,720,267
OPERATING PROFIT 4 974,296 2,249,002

Interest receivable and similar income 2,218 1,112
976,514 2,250,114

Interest payable and similar expenses 5 466,205 172,060
PROFIT BEFORE TAXATION 510,309 2,078,054

Tax on profit 6 (40,028 ) 44,280
PROFIT FOR THE FINANCIAL
YEAR

550,337

2,033,774

Retained earnings at beginning of year 7,813,377 5,779,603

RETAINED EARNINGS AT END OF
YEAR

8,363,714

7,813,377

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

STATEMENT OF FINANCIAL POSITION
31 MAY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 9,574 7,811
Tangible assets 8 16,484,283 11,081,689
16,493,857 11,089,500

CURRENT ASSETS
Stocks 9 1,614,452 1,193,923
Debtors 10 4,527,530 4,811,727
Cash at bank 20,674 281,775
6,162,656 6,287,425
CREDITORS
Amounts falling due within one year 11 7,025,344 5,489,444
NET CURRENT (LIABILITIES)/ASSETS (862,688 ) 797,981
TOTAL ASSETS LESS CURRENT
LIABILITIES

15,631,169

11,887,481

CREDITORS
Amounts falling due after more than one
year

12

(7,108,798

)

(3,875,419

)

PROVISIONS FOR LIABILITIES 16 (157,657 ) (197,685 )
NET ASSETS 8,364,714 7,814,377

CAPITAL AND RESERVES
Called up share capital 17 1,000 1,000
Retained earnings 18 8,363,714 7,813,377
SHAREHOLDERS' FUNDS 8,364,714 7,814,377

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

STATEMENT OF FINANCIAL POSITION - continued
31 MAY 2024


The financial statements were approved by the Board of Directors and authorised for issue on 11 April 2025 and were signed on its behalf by:





Mr A C Davies - Director


DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,315,378 2,424,900
Interest paid (466,205 ) (172,060 )
Tax paid - 229,071
Net cash from operating activities 2,849,173 2,481,911

Cash flows from investing activities
Purchase of intangible fixed assets (4,500 ) -
Purchase of tangible fixed assets (7,046,675 ) (4,058,513 )
Interest received 2,218 1,112
Net cash from investing activities (7,048,957 ) (4,057,401 )

Cash flows from financing activities
New loans in year 4,564,301 1,803,218
Capital repayments in year (941,418 ) (408,023 )
Net cash from financing activities 3,622,883 1,395,195

Decrease in cash and cash equivalents (576,901 ) (180,295 )
Cash and cash equivalents at
beginning of year

2

281,775

462,070

Cash and cash equivalents at end of
year

2

(295,126

)

281,775

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit before taxation 510,309 2,078,054
Depreciation charges 1,646,819 811,251
Finance costs 466,205 172,060
Finance income (2,218 ) (1,112 )
2,621,115 3,060,253
Increase in stocks (420,529 ) (546,798 )
Decrease/(increase) in trade and other debtors 284,197 (949,609 )
Increase in trade and other creditors 830,595 861,054
Cash generated from operations 3,315,378 2,424,900

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 May 2024
31.5.24 1.6.23
£    £   
Cash and cash equivalents 20,674 281,775
Bank overdrafts (315,800 ) -
(295,126 ) 281,775
Year ended 31 May 2023
31.5.23 1.6.22
£    £   
Cash and cash equivalents 281,775 462,070


DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.6.23 Cash flow At 31.5.24
£    £    £   
Net cash
Cash at bank 281,775 (261,101 ) 20,674
Bank overdrafts - (315,800 ) (315,800 )
281,775 (576,901 ) (295,126 )
Debt
Finance leases (1,843,840 ) (335,481 ) (2,179,321 )
Debts falling due within 1 year - (252,000 ) (252,000 )
Debts falling due after 1 year (2,701,354 ) (3,035,403 ) (5,736,757 )
(4,545,194 ) (3,622,884 ) (8,168,078 )
Total (4,263,419 ) (4,199,785 ) (8,463,204 )

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024


1. STATUTORY INFORMATION

David Davies Resources Ltd 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 (£).


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.

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The financial statements of the company are consolidated in the financial statements of Andrew C Davies Holdings Limited. These consolidated financial statement are available from its registered office, Astley Grange, Astley, Shrewsbury, Shropshire, England, SY4 4BS

Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company , and the revenue can be reliably measured once the goods or services are provided to the customer.

Turnover is measured at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Basic Payment entitlement are being amortised evenly over its estimated useful life of 5 years.

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.
Improvements to property - at varying rates on cost
Plant and machinery - at variable rates on reducing balance

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


2. ACCOUNTING POLICIES - continued

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

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

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 statement of financial position 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.

Retirement benefits
The company operates a defined contribution pension scheme.

Contributions payable to the company's pension scheme are charged to the profit and loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


2024 2023
£ £
Wages and salaries 2,161,933 2,035,784
Redundancy - -
Social security costs less statutory pay reclaimed 199,800 173,197
Pension cost 63,833 68,894
Sickness insurance claims - (4,817 )
2,425,566 2,273,058

The key management personnel comprise of the directors

The average number of employees during the year was as follows:
2024 2023

Average number of employees 79 73


2024 2023
£ £
.
Directors' remuneration 188,485 173,683
No Directors are accruing pension benefits.


4. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Contract labour 295,748 173,369
Depreciation - owned assets 1,373,548 634,004
Depreciation - assets on hire purchase contracts 270,533 174,586
Basic payment scheme entitlements amortisation 2,737 2,662
Auditors' remuneration 7,500 7,200
Auditors' remuneration
- underprovided previous years - 400
Increase in stock 420,529 546,798

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank charges and loan interest 419,513 146,407
HP interest 46,692 25,653
466,205 172,060

6. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
2024 2023
£    £   
Deferred tax (40,028 ) 44,280
Tax on profit (40,028 ) 44,280

Reconciliation of total tax (credit)/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 510,309 2,078,054
Profit multiplied by the standard rate of corporation tax in the UK
of 25% (2023 - 25%)

127,577

519,514

Effects of:
Expenses not deductible for tax purposes 363 87
Depreciation in excess of capital allowances 178,038 323,909
R&D Claim (285,940 ) (425,795 )
Group Surrender - losses 67,960 100,557
Tax losses brought forward (128,026 ) (473,992 )
Total tax (credit)/charge (40,028 ) 44,280

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


7. INTANGIBLE FIXED ASSETS
Basic
payment
scheme
entitlements
£   
COST
At 1 June 2023 13,310
Additions 4,500
At 31 May 2024 17,810
AMORTISATION
At 1 June 2023 5,499
Amortisation for year 2,737
At 31 May 2024 8,236
NET BOOK VALUE
At 31 May 2024 9,574
At 31 May 2023 7,811

8. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery Totals
£    £    £    £   
COST
At 1 June 2023 3,879,524 2,404,338 7,065,185 13,349,047
Additions - 1,791,346 5,255,329 7,046,675
At 31 May 2024 3,879,524 4,195,684 12,320,514 20,395,722
DEPRECIATION
At 1 June 2023 - 700,709 1,566,649 2,267,358
Charge for year - 427,590 1,216,491 1,644,081
At 31 May 2024 - 1,128,299 2,783,140 3,911,439
NET BOOK VALUE
At 31 May 2024 3,879,524 3,067,385 9,537,374 16,484,283
At 31 May 2023 3,879,524 1,703,629 5,498,536 11,081,689

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


8. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Improvements
to Plant and
property machinery Totals
£    £    £   
COST
At 1 June 2023 200,000 2,050,004 2,250,004
Additions - 904,500 904,500
Reclassification/transfer - 259,801 259,801
At 31 May 2024 200,000 3,214,305 3,414,305
DEPRECIATION
At 1 June 2023 79,703 234,626 314,329
Charge for year 28,571 241,962 270,533
At 31 May 2024 108,274 476,588 584,862
NET BOOK VALUE
At 31 May 2024 91,726 2,737,717 2,829,443
At 31 May 2023 120,297 1,815,378 1,935,675

9. STOCKS
2024 2023
£    £   
Stocks 1,614,452 1,193,923

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,810,612 1,993,906
Other debtors 2,680,513 2,511,071
VAT 14,677 286,673
Prepayments and accrued income 21,728 20,077
4,527,530 4,811,727

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) 567,800 -
Hire purchase contracts (see note 14) 807,280 669,775
Trade creditors 3,221,862 2,402,678
Social security and other taxes 57,562 46,151
Other creditors 2,370,840 2,370,840
7,025,344 5,489,444

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
2024 2023
£    £   
Bank loans (see note 13) 5,736,757 2,701,354
Hire purchase contracts (see note 14) 1,372,041 1,174,065
7,108,798 3,875,419

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 315,800 -
Bank loans - less than 1 yr 252,000 -
567,800 -

Amounts falling due between one and two years:
Bank loans - more than 1 yr 264,000 -

Amounts falling due between two and five years:
Bank loans - 2-5 years 3,565,576 -

Amounts falling due in more than five years:

Repayable by instalments
Bank loans more 5 yr by instal 1,907,181 2,701,354

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Net obligations repayable:
Within one year 807,280 669,775
Between one and five years 1,372,041 1,174,065
2,179,321 1,843,840

15. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 5,988,757 2,701,354

On 2 June 2021 Barclays Security Trustee Limited registered a charge at Companies House against the freehold property in relation to the bank loan.

On the 1 March 2021 Barclays Security Trustee Limited registered fixed and floating charges at Companies House against all current and future assets and undertakings of the Company, a wholly owned subsidiary of Andrew C Davies Holdings Ltd.

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 157,657 197,685

Deferred
tax
£   
Balance at 1 June 2023 197,685
Accelerated capital allowances 2,308,480
R & D Claim - losses (1,198,443 )
Group surrender 67,960
Losses brought forward (1,218,025 )
Balance at 31 May 2024 157,657

The deferred tax liability set out above is not expected to reverse completely within the next 12 months, and relates to accelerated capital allowance, losses created by R&D claim and adjusted for Group Surrender losses.

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1,000 Ordinary £1 1,000 1,000

18. RESERVES
Retained
earnings
£   

At 1 June 2023 7,813,377
Profit for the year 550,337
At 31 May 2024 8,363,714

19. ULTIMATE PARENT COMPANY

The Company is a wholly owned subsidiary of Andrew C. Davies Holdings Ltd, a company incorporated in England and Wales.
Copies of the accounts can be obtained from the registered office.

20. RELATED PARTY DISCLOSURES

The Company made a total of £950,332 (£1,082,291: 2023) sales to related parties. Included in this figure is a total of £17,684 (£21,143: 2023) interest received on loans due to the Company from related parties. Also included is the Company's interest on capital of £229,442 (£109,555: 2023) in it's membership in a Limited Liability Partnership.

The Company made purchases from related parties of £8,387,032 (£6,473,739: 2023) during the year.

Amounts due from related parties at the year end total £2,825,648 (£2,771,379: 2023) shown in Trade Debtors and Other Debtors. This figure includes the loan due from related parties and the Company's member's balance due from the Limited Liability Partnership.

Amounts due to related parties at the year end amounts to £1,270,788 (£849,357: 2023) shown in Trade Creditors.

Included in Other Creditors is £2,370,840 (£2,370,840: 2023) interest free loan from a related party. This is repayable on demand.

All transactions between related parties has been under normal marketing conditions.

DAVID DAVIES RESOURCES LTD (REGISTERED NUMBER: 07266151)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


21. ULTIMATE CONTROLLING PARTY

The company is under the control of Mr A C Davies and family, who own 100% of the issued share capital of Andrew C. Davies Holdings Ltd, the Ultimate Parent Company.