Company registration number 01571914 (England and Wales)
Don-Bur (Bodies and Trailers) Limited
Annual report and financial statements
For the year ended 30 September 2024
Don-Bur (Bodies and Trailers) Limited
Company information
Directors
Ms D J Burton
Mr A Bushnell
Mr D M Burton
Mr D Burton
Mr C Griffiths
Mr D J Challinor
(Appointed 15 January 2024)
Mr A P Ridgway
(Appointed 6 September 2024)
Secretary
Mr A Bushnell
Company number
01571914
Registered office
Mossfield Road
Adderley Green
Longton
Stoke on Trent
Staffordshire
England
ST3 5BW
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Don-Bur (Bodies and Trailers) Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 7
Independent auditor's report
8 - 10
Statement of comprehensive income
11
Statement of financial position
12
Statement of changes in equity
13
Notes to the financial statements
14 - 31
Don-Bur (Bodies and Trailers) Limited
Strategic report
For the year ended 30 September 2024
- 1 -

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

Review of the business

2023/24 sets a new benchmark for the company in terms of both turnover achieved and profitability.

We have consciously streamlined our orderbook, exclusively taking orders only for work that best serves our business model and which we know will provide a world class product for our customers. This strategy has paid off again and has resulted in further growth in our turnover which now stands at over £93.3m, a further 9.6% increase on that of the prior year.

Profitability has also increased through the efficiencies that we have gained in our main site operations by concentrating on large batch orders. These bring the benefits of requiring considerably less engineering per unit to deliver the same standard to the customer, and a greatly reduced learning curve over producing smaller batches of complex units.

In tandem with the growth seen in the main site our Service operations also expanded, taking full advantage of our continued investment in plant and machinery that has been targeted to make those operations run more efficiently.

We have kept a careful and watchful eye over all price increases that have affected us during the period and ensured that good communication and relations with our valued customers has enabled us to protect our margins in what remains a fairly volatile market. Coupled with the improvements in our operations as outlined above, and the continued tight control of all our costs, we saw profit before tax rise from £9.9m in 22/23 to £15.0m in 23/24, which is a 51.5% increase.

We remain heavily dependant on being able to source appropriately skilled labour to produce our products to the required standards, and this challenge does not get any easier.

Cash remains a crucial focus of the business and a healthy position is seen as critical in ensuring a stable environment for the business to continue to flourish. To this end we pay close attention to cash collection from our customers, and maintaining sensible inventory levels. We finished the year with cash in hand of £27.1m

 

Don-Bur (Bodies and Trailers) Limited
Strategic report (continued)
For the year ended 30 September 2024
- 2 -
Principal risks and uncertainties

As the global markets finally settle down after the unprecedented events of recent years, we feel that the greatest risk in the business now resides around the uncertainties in the labour market which are being driven by factors beyond our control. The impending rise in Employer’s National Insurance contributions, coupled with another significant rise to the living wage will have a serious effect on our labour rates, and the overall cost of labour. As a result of these legislative changes, it will be increasingly difficult to keep the pay differential through our various skill levels equitable and this brings a risk of affecting the morale of our workforce. One of our biggest challenges, always, is to attract and retain appropriately skilled staff and this is becoming increasingly difficult each year.

There are many other uncertainties and issues that still surround the business, which include the volatility of exchange rates, the continued volatility of energy prices, the uncertainty around inflation and interest rates, and various other factors that all put strain on material and labour costs.

We also need to consider the solvency of our clients, and the security and integrity of our supply chains, and weigh all these factors in relation to our investment needs and financing capabilities.

Our position within our industry remains strong however and we still believe that we are placed as the first-choice in the UK for bespoke trailers and bodies amongst the top retail and freight distribution companies in the UK.    

In order to mitigate risk:

We place forward exchange contracts at the point of placing orders for materials in foreign currency so that our costings reflect the price we will actually incur.

We have freight forwarders in place to ensure the smooth supply of goods from Europe and the rest of the world.

Mechanisms are in place with customers to ensure that unforeseen price rises affecting contracts can be passed on to the end customer.

We apply strict credit control procedures to clients to monitor their creditworthiness and to keep debts within a defined range.                             

Our supply chain is tested rigorously, both for financial strength and to ensure we have alternate routes (where available) to materials in the event of non-supply.

We maintain a dialogue with our workforce through an Employee Representation Group to ensure that all issues are discussed and that solutions are found with the involvement the workforce.

Our banking facilities were renewed in full in the year, which the directors believe will be more than adequate for our expected needs.

Key performance indicators

To assist in monitoring the performance of the company the following key performance indicators are used:

 

2024         2023

£'000         £'000

 

Turnover                            93,308        85,107

Profit before tax                        14,967        9,929

Stock levels                            10,404        9,257

Trade debtors                            10,302        10,813

Net cash (cash less leases)                    22,624        13,195

Staff costs                            20,865        18,575

Number of employees                        498        468

Don-Bur (Bodies and Trailers) Limited
Strategic report (continued)
For the year ended 30 September 2024
- 3 -
Section 172(1) Statement

Section 172 of the Companies Act 2006 requires Directors to consider the interests of stakeholders and other matters in their decision making. When making decisions the Directors continue to regard the interests of the company's employees and other stakeholders, including customers, suppliers, creditors, strategic partners, and shareholders.

 

We also consider the impact of the company's activities on the community and the environment, and the factors which may affect the company's reputation. In this context, acting in good faith and fairly, the Directors consider what is most likely to promote the success of the company for its shareholders in the long term.

 

The Board recognises that it is essential to build relationships and partner with our customers, suppliers and strategic partners. We engage with these stakeholders in an honest and ethical manner, promoting transparency in all that we do. We look to partner with customers and suppliers who share our corporate philosophy and commit to ethical business practices in a wide variety of areas (such as health and safety, employment practices, anti-bribery laws and trade regulations). We maintain a good and constant level of communication with all key stakeholders, particularly our employees, customers and suppliers and keep abreast of all relevant legislation in order to understand the issues to which we must have regard and act upon.

 

The effect of such actions over the financial year has been primarily to protect the company's profitability during a period of rapidly rising costs, particularly in steel. We have developed models to justify our price increases to our customers, linked to various indices, with an open book approach to assure them that the increases are only implemented to protect our margins and ensure that Don-Bur remains a going concern that will be able to serve them in the future.

 

Suppliers are seen as essential stakeholders and are treated with respect by the Directors of the company. Payment terms are clearly defined and suppliers are paid to these terms without fail.

 

Employee wellbeing has also been at the forefront of our processes this year. We have put pay rises in place to ensure that they have not been detrimentally affected by rising household costs, and have used professionals to gain feedback from them such that we better understand their needs.

 

The safety of employees also continues to be of prime concern with appropriate policies put in place and subjected to periodic review.

 

Operating safely and maintaining the health and safety of our employees, customers and neighbours while protecting the environment are priorities of the Board. Safety is part of the company's culture and every employee must abide by our H&S policies. The Directors are fully aware of their responsibilities to promote the success of the company in accordance with section 172 of the Companies Act 2006.

On behalf of the board

Mr D M Burton
Director
7 March 2025
Don-Bur (Bodies and Trailers) Limited
Directors' report
For the year ended 30 September 2024
- 4 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principal activity of the company in the year under review was that of the design, manufacture, maintenance, refurbishment and repair of commercial vehicle and trailer bodies, together with the manufacture of trailer and related curtains and load restraint, large format printing, fibre glass fairings and sign writing with our aftermarket parts department. Our facilities include an authorised commercial vehicle testing station. We are one of the few commercial vehicle bodybuilders to be able to offer whole life support services.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to (£000s) - £2,064 (2023: £1,253). The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Ms D J Burton
Mr A Bushnell
Mr D M Burton
Mr D Burton
Mr C Griffiths
Mr D J Challinor
(Appointed 15 January 2024)
Mr A P Ridgway
(Appointed 6 September 2024)
Financial instruments

When we are exposed to currency exchange risk we apply appropriate forward contracts to hedge our exposure.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Don-Bur (Bodies and Trailers) Limited
Directors' report (continued)
For the year ended 30 September 2024
- 5 -
Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

It is company policy to maintain and develop employee involvement.

 

The directors are conscious that the expertise and dedication of our staff is the primary asset of the company. Regular meetings are held with employee representatives to discuss all aspects of the business and opportunities are given at these meetings for senior executives of the company to be questioned about matters which concern the employees.

 

Without the loyalty and commitment of all the people working in the company it would not have been possible to achieve the progress that has been made. The board is highly appreciative of this fact and would like to thank everyone for all their efforts.

Business relationships

The board recognises that it is essential to build relationships and partner with our customers, suppliers and strategic partners. We engage with these stakeholders in an honest and ethical manner, promoting transparency in all that we do. We look to partner with customers and suppliers who share our corporate philosophy and commit to ethical business practices in a wide variety of areas (such as health and safety, employment practices, anti-bribery laws and trade regulations). We maintain a good and constant level of communications with all key stakeholders, particularly our employees, customers and suppliers and keep abreast of all relevant legislation in order to understand the issues to which we must have regard and act upon.

Future developments

Continuous improvement is at the heart of our operations. In addition to our product innovation, we are always looking for ways to improve processes which will enhance quality, ensure delivery on time, and improve profitability.

We remain committed to investing in our people and have already invested in a fairer pay framework, internal communications and employee training. During the coming year we intend to build on these initiatives with projects to improve the company further, focussing on investment in the middle management, more work to harmonise pay across all divisions, work to enhance our company branding, all of which will attract and retain the calibre of people that we need to help us move forwards.

We are also investing in another large format laser cutter which will strengthen our fabrication department and bring new efficiencies.

Once again, we have a strong orderbook heading into the next year and the directors are confident that the company will still be profitable in the forthcoming 12 months and beyond. The full impact of the uncertainties outlined above still cannot be predicted with any certainty but the directors nonetheless are of the strong opinion that the company will continue to operate within its current and future financial parameters and so continue to meet its debts as they fall due.

The company's longer-term strategy for beyond 2024 is to continue to grow its market share (primarily through organic growth), to continue to invest in our internal systems (where the focus will be on stores processes and inventory), and to improve our quality through clearly defined processes. We aim to improve profitability and sustainability still further through the many opportunities available to become more efficient both through good management and prudent investment. As such, the directors believe the company to be a going concern and have adopted this assumption in preparing the financial statements.

Don-Bur (Bodies and Trailers) Limited
Directors' report (continued)
For the year ended 30 September 2024
- 6 -
Auditor

In accordance with the company's articles, a resolution proposing that DJH Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report

The company’s greenhouse gas emissions, energy consumption and intensity ratios for the year are summarised as follows:

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
6,090,146
5,706,406
- Electricity purchased
3,479,478
4,205,398
- Fuel consumed for transport
2,264,804
2,195,589
11,834,428
12,107,393
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
1,129.00
1,047.00
- Fuel consumed for owned transport
539.00
523.00
1,668.00
1,570.00
Scope 2 - indirect emissions
- Electricity purchased
720.00
871.00
Total gross emissions
2,388.00
2,441.00
Intensity ratio
Tonnes CO2e per employee
4.8
5.22
Tonnes CO2e per turnover £m
26
29
Quantification and reporting methodology

All activities generating emissions are based in the UK, none are offshore.

 

Emissions stated above were calculated based on observed quantities of process inputs and conversion at the rates published within ‘UK Government GHG Conversion Factors for Company Reporting’ for 2024. Input observations were based, wherever practicable, on verifiable usage data. Where this proved impracticable, inputs were assessed through sampling of usage data and extrapolation based on costs incurred.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee and total gross emissions in metric tonnes CO2e per turnover. These are the recommended ratios for the sector.

Don-Bur (Bodies and Trailers) Limited
Directors' report (continued)
For the year ended 30 September 2024
- 7 -
Measures taken to improve energy efficiency

The key sources of emissions are gas, electricity and travel.

 

Don-Bur has continued to manage its energy usage, and going forward continues to review and consider further actions inline with ESOS requirements

 

Actions taken in the current financial year include:

 

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 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:

 

 

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 of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr D M Burton
Director
7 March 2025
Don-Bur (Bodies and Trailers) Limited
Independent auditor's report
To the members of Don-Bur (Bodies and Trailers) Limited
- 8 -
Opinion

We have audited the financial statements of Don-Bur (Bodies and Trailers) Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.

Don-Bur (Bodies and Trailers) Limited
Independent auditor's report (continued)
To the members of Don-Bur (Bodies and Trailers) Limited
- 9 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor's report 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

Don-Bur (Bodies and Trailers) Limited
Independent auditor's report (continued)
To the members of Don-Bur (Bodies and Trailers) Limited
- 10 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

Gary Chadwick FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
7 March 2025
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Don-Bur (Bodies and Trailers) Limited
Statement of comprehensive income
For the year ended 30 September 2024
- 11 -
2024
2023
Notes
£'000
£'000
Turnover
3
93,308
85,107
Cost of sales
(74,083)
(71,289)
Gross profit
19,225
13,818
Distribution costs
(1,252)
(876)
Administrative expenses
(3,699)
(3,324)
Other operating income
189
262
Operating profit
4
14,463
9,880
Interest receivable and similar income
8
685
258
Interest payable and similar expenses
9
(181)
(209)
Profit before taxation
14,967
9,929
Tax on profit
10
(3,501)
(2,114)
Profit for the financial year
11,466
7,815

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

Don-Bur (Bodies and Trailers) Limited
Statement of financial position
As at 30 September 2024
- 12 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Intangible assets
12
61
45
Tangible assets
13
3,253
2,503
3,314
2,548
Current assets
Stocks
16
10,404
9,257
Debtors falling due after more than one year
17
3,674
4,279
Debtors falling due within one year
17
11,822
12,827
Cash at bank and in hand
27,146
18,538
53,046
44,901
Creditors: amounts falling due within one year
19
(21,640)
(21,441)
Net current assets
31,406
23,460
Total assets less current liabilities
34,720
26,008
Creditors: amounts falling due after more than one year
20
(3,834)
(4,523)
Provisions for liabilities
Provisions
22
528
529
Deferred tax liability
23
460
460
(988)
(989)
Net assets
29,898
20,496
Capital and reserves
Called up share capital
25
63
63
Profit and loss reserves
26
29,835
20,433
Total equity
29,898
20,496
The financial statements were approved by the board of directors and authorised for issue on 7 March 2025 and are signed on its behalf by:
Mr D M Burton
Director
Company registration number 01571914 (England and Wales)
Don-Bur (Bodies and Trailers) Limited
Statement of changes in equity
For the year ended 30 September 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
Balance at 1 October 2022
63
13,871
13,934
Year ended 30 September 2023:
Profit and total comprehensive income
-
7,815
7,815
Dividends
11
-
(1,253)
(1,253)
Balance at 30 September 2023
63
20,433
20,496
Year ended 30 September 2024:
Profit and total comprehensive income
-
11,466
11,466
Dividends
11
-
(2,064)
(2,064)
Balance at 30 September 2024
63
29,835
29,898
Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements
For the year ended 30 September 2024
- 14 -
1
Accounting policies
Company information

Don-Bur (Bodies and Trailers) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mossfield Road, Adderley Green, Longton, Stoke on Trent, Staffordshire, England, ST3 5BW.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Don-Bur (Holdings) Limited. These consolidated financial statements are available from its registered office, Mossfield Road, Adderley Green, Longton, Stoke on Trent, ST3 5BW.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

Atruet 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.

1.3
Turnover

Turnover is recognised 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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 15 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on the completion of manufacture), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Interest income is recognised in profit or loss using the effective interest method.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
Four years on cost
1.6
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Long-term leasehold property
Fifty years on cost
Short-term leasehold property
Over the period of the lease
Plant and equipment
Two to ten years on cost
Fixtures and fittings
Two to ten years on cost

Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 16 -

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

1.7
Fixed asset investments

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

Cost is based on the cost of purchase on a first in, first out basis.

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 profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 17 -
1.10
Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without

penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

1.11
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors, cash and bank balances and amounts due from fellow group companies, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 18 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 19 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

 

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 

Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 20 -
1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets.

 

Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives.

 

Assets acquired by hire purchase are depreciated over their useful lives.

 

Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Where assets leased to a third party give rights approximating to ownership (finance lease), the lessor recognises as a receivable an amount equal to the net investment in the lease i.e. the minimum lease payments receivable under the lease discounted at the interest rate implicit in the lease. This receivable is reduced as the lessee makes capital payments over the term of the lease.

 

A finance lease gives rise to two types of income: profit or loss equivalent to the profit or loss

resulting from outright sale of the asset being leased, at normal selling prices, reflecting any

applicable discounts, and finance income over the lease term.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

1.20

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 

Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

Stock provision

 

Estimates have been made in relation to the calculation of the stock provision. The calculation

requires the company to estimate the net realisable value, in order to compare to cost in assessing if any provisions against stock are required.

Warranty provision

 

Estimates have been made in relation to the calculation of the warranty provision. The calculation requires the company to estimate the cost of future repairs to trailer bodies.

3
Turnover and other revenue
2024
2023
£'000
£'000
Turnover analysed by class of business
Sale of goods
78,554
69,627
Rendering of services
14,754
15,480
93,308
85,107
2024
2023
£'000
£'000
Turnover analysed by geographical market
United Kingdom
92,921
85,059
Europe
387
48
93,308
85,107
2024
2023
£'000
£'000
Other revenue
Interest income
685
258
Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 22 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Exchange gains
-
0
(36)
Research and development costs
3
24
Depreciation of owned tangible fixed assets
802
630
Depreciation of tangible fixed assets held under finance leases
143
240
Profit on disposal of tangible fixed assets
(2)
(16)
Amortisation of intangible assets
20
28
Operating lease charges
336
536
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
38
36
For other services
All other non-audit services
4
4
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Number of production staff
436
407
Number of administrative staff
62
61
Total
498
468

Their aggregate remuneration comprised:

2024
2023
£'000
£'000
Wages and salaries
18,584
16,795
Social security costs
1,695
1,423
Pension costs
586
357
20,865
18,575
Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 23 -
7
Directors' remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
568
553
Company pension contributions to defined contribution schemes
248
35
816
588

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2023 - 5).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£'000
£'000
Remuneration for qualifying services
218
191
Company pension contributions to defined contribution schemes
22
8
8
Interest receivable and similar income
2024
2023
£'000
£'000
Interest income
Interest on bank deposits
515
57
Other interest income
170
201
Total income
685
258
9
Interest payable and similar expenses
2024
2023
£'000
£'000
Interest on finance leases and hire purchase contracts
181
209
10
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
3,501
2,153
Adjustments in respect of prior periods
-
0
4
Total current tax
3,501
2,157
Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
10
Taxation
2024
2023
£'000
£'000
(Continued)
- 24 -
Deferred tax
Origination and reversal of timing differences
-
0
(43)
Total tax charge
3,501
2,114

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£'000
£'000
Profit before taxation
14,967
9,929
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
3,742
2,482
Tax effect of expenses that are not deductible in determining taxable profit
(30)
15
Effect of change in corporation tax rate
-
0
(306)
Under/(over) provided in prior years
-
0
4
Depreciation in excess of capital allowances
(211)
(81)
Taxation charge for the year
3,501
2,114
11
Dividends
2024
2023
£'000
£'000
Interim paid
2,064
1,253
Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 25 -
12
Intangible fixed assets
Software
£'000
Cost
At 1 October 2023
394
Additions
36
At 30 September 2024
430
Amortisation and impairment
At 1 October 2023
349
Amortisation charged for the year
20
At 30 September 2024
369
Carrying amount
At 30 September 2024
61
At 30 September 2023
45

Amortisation is included within administration expenses.

13
Tangible fixed assets
Long-term leasehold property
Short-term leasehold property
Plant and equipment
Fixtures and fittings
Total
£'000
£'000
£'000
£'000
£'000
Cost or valuation
At 1 October 2023
23
541
8,262
861
9,687
Additions
199
10
1,618
70
1,897
Disposals
(200)
-
0
(162)
(2)
(364)
At 30 September 2024
22
551
9,718
929
11,220
Depreciation and impairment
At 1 October 2023
-
0
517
6,169
498
7,184
Depreciation charged in the year
-
0
15
825
105
945
Eliminated in respect of disposals
-
0
-
0
(162)
-
0
(162)
At 30 September 2024
-
0
532
6,832
603
7,967
Carrying amount
At 30 September 2024
22
19
2,886
326
3,253
At 30 September 2023
23
24
2,093
363
2,503
Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
13
Tangible fixed assets
(Continued)
- 26 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£'000
£'000
Plant and equipment
225
817
14
Fixed asset investments
2024
2023
£'000
£'000
Investments in subsidiaries
15
-
-
0
Movements in fixed asset investments
Shares in
£'000
Cost or valuation
At 1 October 2023 & 30 September 2024
184
Impairment
At 1 October 2023 & 30 September 2024
184
Carrying amount
At 30 September 2024
-
At 30 September 2023
-
15
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Temperature Controlled Technology Limited
Mossfield Road, Adderley Green, Longton, Stoke-on-Trent, ST3 SBW
Ordinary
100.00
Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 27 -
16
Stocks
2024
2023
£'000
£'000
Raw materials and consumables
3,828
3,036
Work in progress
6,574
6,220
Finished goods
2
1
10,404
9,257
17
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
10,302
10,813
Amounts owed by group undertakings
116
-
0
Finance leases receivable
605
582
Other debtors
18
27
Prepayments and accrued income
781
1,405
11,822
12,827
2024
2023
Amounts falling due after more than one year:
£'000
£'000
Other debtors
3,591
4,196
Deferred tax asset (note 23)
83
83
3,674
4,279
Total debtors
15,496
17,106

Included in other debtors due after more than one year are amounts of (£000s) £3,591 (2023: £4,196) in respect of amounts due under finance leases.

 

The company entered into financial leasing arrangements for a number of trailers. The average term of finance leases is 10 years.

Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 28 -
18
Finance lease receivables
2024
2023
£'000
£'000
Gross amounts receivable under finance leases:
Within one year
753
753
In two to five years
3,010
3,010
In over five years
957
1,710
4,720
5,473
Unearned finance income
(524)
(693)
Present value of minimum lease payments receivable
4,196
4,778
The present value is receivable as follows:
Within one year
605
582
In two to five years
2,726
2,677
In over five years
865
1,519
4,196
4,778
19
Creditors: amounts falling due within one year
2024
2023
Notes
£'000
£'000
Obligations under finance leases
21
688
820
Trade creditors
13,746
13,367
Amounts owed to group undertakings
-
0
8
Corporation tax
122
1,384
Other taxation and social security
2,062
1,477
Other creditors
349
71
Accruals and deferred income
4,673
4,314
21,640
21,441

Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.

 

HSBC UK Bank PLC has a fixed and floating charge over all property, assets and future undertakings of the Company.

20
Creditors: amounts falling due after more than one year
2024
2023
Notes
£'000
£'000
Obligations under finance leases
21
3,834
4,523
Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
20
Creditors: amounts falling due after more than one year
(Continued)
- 29 -

Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.

21
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£'000
£'000
Within one year
688
820
In two to five years
2,918
2,581
In over five years
916
1,942
4,522
5,343

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 - 10 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Provisions for liabilities
2024
2023
£'000
£'000
Warranty provision
528
529
Movements on provisions:
Warranty provision
£'000
At 1 October 2023
529
Additional provisions in the year
16
Reversal of provision
(17)
At 30 September 2024
528
Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 30 -
23
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£'000
£'000
£'000
£'000
Accelerated capital allowances
460
460
-
-
Other provisions
-
-
83
83
460
460
83
83
There were no deferred tax movements in the year.
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
586
357

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totaling (£000s) - £109 (2023 - £71) were payable to the fund at the balance sheet date and are included in creditors.

25
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
A Ordinary shares of £1 each
62,500
62,500
63
63
B Ordinary shares of £1 each
1
1
-
0
-
0

The A Ordinary shares are eligible to receive dividends when declared and have full voting rights and full entitlement to return of capital upon winding up or other distribution.

 

The B Ordinary share is eligible to receive dividends when declared but has no right to return of capital or any voting rights.

26
Profit and loss reserves

The profit and loss account reserves relate to accumulated results of the business, less dividends declared and adjusted for transfers to/from other reserves.

Don-Bur (Bodies and Trailers) Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 31 -
27
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£'000
£'000
Within one year
167
281
Between two and five years
440
415
In over five years
622
645
1,229
1,341
28
Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

 

During the year payroll costs of (£000s) £265 (2023 - £191) and expenses of (£000s) £1 (2023 - £nil) were paid on behalf of a company under common control of three Directors and re-charged to the company. Net receipts of (£000s) £257 (2023 - £198) have been received from the related party during the year. At the balance sheet date there was (£000s) £14 due from the related party (2023 - £6).

29
Ultimate controlling party

The company is a wholly owned subsidiary undertaking of Don-Bur (Holdings) Limited, which is the ultimate holding company and is incorporated in England and Wales.

 

The registered office address of the ultimate holding company is Mossfield Road, Adderley Green, Longton, Stoke on Trent, ST3 SBW.

 

The company is ultimately controlled by Mr D Burton.

The largest group into which the entity is consolidated is Don-Bur (Holdings) Limited, a company registered in England and Wales. Copies of the group financial statements of Don-Bur (Holdings) Limited are available from Don-Bur (Holdings) Limited, Mossfield Road, Adderley Green, Longton, Stoke on Trent, ST3 5BW.

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