Don-Bur (Holdings) Limited
Annual report and financial statements
For the year ended 30 September 2024
Don-Bur (Holdings) Limited
Company information
Directors
Ms D J Burton
Mr D M Burton
Mr D Burton
Secretary
Mr A Bushnell
Company number
03218454
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 (Holdings) Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 7
Independent auditor's report
8 - 10
Group statement of income and retained earnings
11
Group statement of financial position
12
Company statement of financial position
13
Group statement of cash flows
14
Notes to the financial statements
15 - 35
Don-Bur (Holdings) 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 group 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 group and a healthy position is seen as critical in ensuring a stable environment for the group 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 £27.2m

 

Don-Bur (Holdings) 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 group 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 group, 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                            10,306        10,813

Net cash (cash less leases)                    22,646        13,195

Staff costs                            20,865        18,575

Number of employees                        498        468

Don-Bur (Holdings) 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 group's employees and other stakeholders, including customers, suppliers, creditors, strategic partners, and shareholders.

 

We also consider the impact of the group's activities on the community and the environment, and the factors which may affect the group's reputation. In this context, acting in good faith and fairly, the Directors consider what is most likely to promote the success of the group 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 group'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 group. 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 group'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 group 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 (Holdings) 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 group 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 further 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 D M Burton
Mr D Burton
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 group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group'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 group's performance.

It is group 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 group. 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 group 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.

Don-Bur (Holdings) Limited
Directors' report (continued)
For the year ended 30 September 2024
- 5 -
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 group further, focussing on investment in the middle management, more work to harmonise pay across all divisions, work to enhance our 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 group 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 group will continue to operate within its current and future financial parameters and so continue to meet its debts as they fall due.

The group'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 group to be a going concern and have adopted this assumption in preparing the financial statements.

Auditor

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

Energy and carbon report

The group'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
Don-Bur (Holdings) Limited
Directors' report (continued)
For the year ended 30 September 2024
- 6 -
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
4.80
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 Group 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.

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:

 

Don-Bur (Holdings) Limited
Directors' report (continued)
For the year ended 30 September 2024
- 7 -
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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and 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 auditor of the group 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 auditor of the group is aware of that information.

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

We have audited the financial statements of Don-Bur (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of income and retained earnings, the group statement of financial position, the company statement of financial position, the group statement of cash flows 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 group and parent 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 group's and parent 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 (Holdings) Limited
Independent auditor's report (continued)
To the members of Don-Bur (Holdings) 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 group and the parent company and their 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 parent 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 parent 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 (Holdings) Limited
Independent auditor's report (continued)
To the members of Don-Bur (Holdings) 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
7 March 2025
DJH Audit Limited
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Don-Bur (Holdings) Limited
Group statement of income and retained earnings
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
7
685
258
Interest payable and similar expenses
8
(181)
(209)
Profit before taxation
14,967
9,929
Tax on profit
9
(3,534)
(2,210)
Profit for the financial year
27
11,433
7,719
Retained earnings brought forward
25,518
19,052
Dividends
(2,064)
(1,253)
Retained earnings carried forward
34,887
25,518
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
Don-Bur (Holdings) Limited
Group statement of financial position
As at 30 September 2024
30 September 2024
- 12 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Intangible assets
11
61
45
Tangible assets
12
10,143
9,331
10,204
9,376
Current assets
Stocks
15
10,404
9,257
Debtors
16
15,384
17,116
Cash at bank and in hand
27,168
18,558
52,956
44,931
Creditors: amounts falling due within one year
18
(21,638)
(21,463)
Net current assets
31,318
23,468
Total assets less current liabilities
41,522
32,844
Creditors: amounts falling due after more than one year
19
(3,834)
(4,523)
Provisions for liabilities
Provisions
21
528
529
Deferred tax liability
22
486
487
(1,014)
(1,016)
Net assets
36,674
27,305
Capital and reserves
Called up share capital
24
128
128
Capital redemption reserve
25
23
23
Other reserves
1,636
1,636
Profit and loss reserves
27
34,887
25,518
Total equity
36,674
27,305
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:
07 March 2025
Mr D M Burton
Director
Company registration number 03218454 (England and Wales)
Don-Bur (Holdings) Limited
Company statement of financial position
As at 30 September 2024
30 September 2024
- 13 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
12
6,868
6,806
Investments
13
899
899
7,767
7,705
Current assets
Debtors
16
39
16
Cash at bank and in hand
22
20
61
36
Creditors: amounts falling due within one year
18
(153)
(32)
Net current (liabilities)/assets
(92)
4
Total assets less current liabilities
7,675
7,709
Provisions for liabilities
Deferred tax liability
22
26
27
(26)
(27)
Net assets
7,649
7,682
Capital and reserves
Called up share capital
24
128
128
Capital redemption reserve
25
23
23
Other reserves
787
787
Profit and loss reserves
27
6,711
6,744
Total equity
7,649
7,682

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit for the year was (£000s) - £2,031 (2023 - £1,157).

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:
07 March 2025
Mr D M Burton
Director
Company registration number 03218454 (England and Wales)
Don-Bur (Holdings) Limited
Group statement of cash flows
For the year ended 30 September 2024
- 14 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Cash flows from operating activities
Cash generated from operations
31
17,130
11,031
Interest paid
(181)
(209)
Income taxes paid
(4,792)
(1,331)
Net cash inflow from operating activities
12,157
9,491
Investing activities
Purchase of intangible assets
(36)
-
Purchase of tangible fixed assets
(1,897)
(1,226)
Proceeds from disposal of tangible fixed assets
4
318
Interest received
685
258
Receipt of finance lease capital
582
615
Net cash used in investing activities
(662)
(35)
Financing activities
Payment of finance leases obligations
(821)
(682)
Dividends paid to equity shareholders
(2,064)
(1,253)
Net cash used in financing activities
(2,885)
(1,935)
Net increase in cash and cash equivalents
8,610
7,521
Cash and cash equivalents at beginning of year
18,558
11,037
Cash and cash equivalents at end of year
27,168
18,558
Don-Bur (Holdings) Limited
Notes to the group financial statements
For the year ended 30 September 2024
- 15 -
1
Accounting policies
Company information

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

 

The group consists of Don-Bur (Holdings) Limited and all of its subsidiaries.

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, modified to include the revaluation of freehold land at fair value. The principal accounting policies adopted are set out below.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Don-Bur (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 September 2024.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
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.

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 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.

1.6
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.

Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 17 -
1.7
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
4 years on cost
1.8
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:

Freehold land and buildings
Fifty years on revalued cost or over the useful economic life of the asset
Leasehold land and buildings
Over the period of the lease
Plant and equipment
Two to ten years on cost
Fixtures and fittings
Two to ten years on cost

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 recognised in the income statement.

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.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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.

 

 

Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 18 -
1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
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.

1.12
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.

Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 19 -
1.13
Financial instruments

The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 group 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.

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 group after deducting all of its liabilities.

Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 20 -
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 group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 21 -
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 if, and only if, there is 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.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group 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.

1.17
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.

1.18
Retirement benefits

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group 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 group in independently administered funds.

Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 22 -
1.19
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 leased 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.

1.20
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.

1.21

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.

1.22

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 (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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 group 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 group 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
Sales 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 (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 24 -
4
Operating profit
2024
2023
£'000
£'000
Operating profit for the year is stated after charging/(crediting):
Exchange gains
-
(36)
Research and development costs
3
24
Depreciation of owned tangible fixed assets
940
763
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 group and company
2
2
Audit of the financial statements of the company's subsidiaries
38
36
40
38
For other services
All other non-audit services
4
4
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Number of production staff
436
407
-
-
Number of administrative staff
62
61
-
-
Total
498
468
-
0
-
0
Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
6
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Wages and salaries
18,584
16,795
-
0
-
0
Social security costs
1,695
1,423
-
-
Pension costs
586
357
-
0
-
0
20,865
18,575
-
0
-
0
7
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
8
Interest payable and similar expenses
2024
2023
£'000
£'000
Interest on finance leases and hire purchase contracts
181
209
9
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
3,535
2,181
Adjustments in respect of prior periods
-
0
4
Total current tax
3,535
2,185
Deferred tax
Origination and reversal of timing differences
(1)
25
Total tax charge
3,534
2,210
Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
9
Taxation
(Continued)
- 26 -

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
5
15
Effect of change in corporation tax rate
-
(306)
Permanent capital allowances in excess of depreciation
(2)
-
0
Under/(over) provided in prior years
-
0
4
Depreciation in excess of capital allowances
(211)
15
Taxation charge
3,534
2,210
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£'000
£'000
Interim paid
2,064
1,253
11
Intangible fixed assets
Group
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
Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
11
Intangible fixed assets
(Continued)
- 27 -
Carrying amount
At 30 September 2024
61
At 30 September 2023
45
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£'000
£'000
£'000
£'000
£'000
Cost or valuation
At 1 October 2023
9,278
612
8,262
861
19,013
Additions
199
10
1,618
70
1,897
Disposals
-
0
-
0
(162)
(2)
(164)
At 30 September 2024
9,477
622
9,718
929
20,746
Depreciation and impairment
At 1 October 2023
2,512
526
6,146
498
9,682
Depreciation charged in the year
138
15
825
105
1,083
Eliminated in respect of disposals
-
0
-
0
(162)
-
0
(162)
At 30 September 2024
2,650
541
6,809
603
10,603
Carrying amount
At 30 September 2024
6,827
81
2,909
326
10,143
At 30 September 2023
6,766
86
2,116
363
9,331
Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
12
Tangible fixed assets
(Continued)
- 28 -
Company
Freehold land and buildings
£'000
Cost or valuation
At 1 October 2023
6,961
Additions
200
At 30 September 2024
7,161
Depreciation and impairment
At 1 October 2023
155
Depreciation charged in the year
138
At 30 September 2024
293
Carrying amount
At 30 September 2024
6,868
At 30 September 2023
6,806

Included in cost of land and buildings is freehold land of (£000s) - £2,923 (2023 - £2,915) which is not depreciated.

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

Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Plant and equipment
225
817
-
0
-
0

Some land and buildings were revalued on 30 September 1998. The group had previously adopted the transactional provision of FRS 15 'Tangible Fixed Assets'. Whilst previous valuations have been retained, they have not been updated. From 1 October 1998 it is company policy not to revalue. No further adjustment has been made following the transition to FRS 102.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
12
Tangible fixed assets
(Continued)
- 29 -
2024
2023
£'000
£'000
Group
Cost
8,414
8,414
Accumulated depreciation
(2,551)
(2,383)
Carrying value
5,863
6,031
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Investments in subsidiaries
14
-
0
-
0
899
899
Movements in fixed asset investments
Company
Shares in subsidiaries
£'000
Cost or valuation
At 1 October 2023 and 30 September 2024
899
Carrying amount
At 30 September 2024
899
At 30 September 2023
899
14
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Don-Bur (Bodies and Trailers) Limited
Mossfield Road, Adderley Green, Longton, Stoke On Trent, United Kingdom, ST3 5BW
Commercial vehicle body builder and repairer and trailer manufacturer
Ordinary
100.00
-
Don-Bur (Service) Limited
Mossfield Road Adderley Green, Longton, Stoke On Trent, Staffordshire, United Kingdom, ST3 5BW
Dormant
Ordinary
100.00
-
Temperature Controlled Technology Limited
Mossfield Road Adderley Green, Longton, Stoke On Trent, Staffordshire, United Kingdom, ST3 5BW
Dormant
Ordinary
0
100.00
Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 30 -
15
Stocks
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Raw materials and consumables
3,828
3,036
-
-
Work in progress
6,574
6,220
-
-
Finished goods and goods for resale
2
1
-
0
-
0
10,404
9,257
-
-
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£'000
£'000
£'000
£'000
Trade debtors
10,306
10,815
2
-
0
Amounts owed by group undertakings
-
-
-
8
Finance leases receivable
605
582
-
-
Other debtors
18
35
37
8
Prepayments and accrued income
781
1,405
-
0
-
0
11,710
12,837
39
16
Amounts falling due after more than one year:
Other debtors
3,591
4,196
-
0
-
0
Deferred tax asset (note 22)
83
83
-
0
-
0
3,674
4,279
-
-
Total debtors
15,384
17,116
39
16

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

 

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

Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 31 -
17
Finance lease receivables
Group
Company
2024
2023
2024
2023
£'000
£'000
£'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
-
-
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Obligations under finance leases
20
688
820
-
0
-
0
Trade creditors
13,746
13,367
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
116
-
0
Corporation tax payable
155
1,412
33
28
Other taxation and social security
2,025
1,477
-
-
Other creditors
353
75
4
4
Accruals and deferred income
4,671
4,312
-
0
-
0
21,638
21,463
153
32

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.

Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 32 -
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Obligations under finance leases
20
3,834
4,523
-
0
-
0

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

20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Future minimum lease payments due under finance leases:
Within one year
688
820
-
0
-
0
In two to five years
2,918
2,581
-
0
-
0
In over five years
916
1,942
-
0
-
0
4,522
5,343
-
-

Finance lease payments represent rentals payable by the company or group 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.

21
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Warranty provision
528
529
-
-
Movements on provisions:
Warranty provision
Group
£'000
At 1 October 2023
529
Additional provisions in the year
16
Reversal of provision
(17)
At 30 September 2024
528
Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 33 -
22
Deferred taxation

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

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£'000
£'000
£'000
£'000
Accelerated capital allowances
486
487
-
-
Other provisions
-
-
83
83
486
487
83
83
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£'000
£'000
£'000
£'000
Accelerated capital allowances
26
27
-
-
Group
Company
2024
2024
Movements in the year:
£'000
£'000
Liability at 1 October 2023
404
27
Credit to profit or loss
(1)
(1)
Liability at 30 September 2024
403
26
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
586
357

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

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

Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 34 -
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £1 each
90,500
90,500
91
91
Ordinary B shares of £1 each
1,000
1,000
1
1
Ordinary C shares of £1 each
18,000
18,000
18
18
Ordinary D shares of £1 each
18,000
18,000
18
18
127,500
127,500
128
128

All shares are eligible to receive dividends when declared and have full voting rights and full entitlement to return upon winding up or other distribution.

25
Capital redemption reserve

The capital redemption reserve records the nominal value of shares repurchased by the company.

26
Other reserves

Merger reserve

 

The merger reserve arose on the business acquisition and presents the difference of the nominal value of shares over the shares acquired.

27
Profit and loss reserves

The retained earnings relate to the accumulated results of the business, less dividends declared and adjusted for transfer to/from other reserves.

28
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Within one year
167
281
-
-
Between two and five years
440
415
-
-
In over five years
622
645
-
-
1,229
1,341
-
-
Don-Bur (Holdings) Limited
Notes to the group financial statements (continued)
For the year ended 30 September 2024
- 35 -
29
Related party transactions

The parent 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 and re-charged to the group. 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).

 

 

30
Controlling party

The ultimate controlling party of the group is Mr D Burton.

31
Cash generated from group operations
2024
2023
£'000
£'000
Profit for the year after tax
11,433
7,719
Adjustments for:
Taxation charged
3,534
2,210
Finance costs
181
209
Investment income
(685)
(258)
Gain on disposal of tangible fixed assets
(2)
(16)
Amortisation and impairment of intangible assets
20
28
Depreciation and impairment of tangible fixed assets
1,083
1,002
(Decrease)/increase in provisions
(1)
226
Movements in working capital:
(Increase)/decrease in stocks
(1,147)
2,090
Decrease/(increase) in debtors
1,695
(1,011)
Increase/(decrease) in creditors
1,601
(1,168)
Cash generated from operations
17,712
11,031
32
Analysis of changes in net funds - group
1 October 2023
Cash flows
30 September 2024
£'000
£'000
£'000
Cash at bank and in hand
18,558
8,610
27,168
Obligations under finance leases
(5,343)
821
(4,522)
13,215
9,431
22,646
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