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REGISTERED NUMBER: 02700130 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

W.R. DAVIES LIMITED

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13


W.R. DAVIES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024







DIRECTORS: J R Davies
B R Pritchard
D J Conway
C J D Taylor





SECRETARY: B R Pritchard





REGISTERED OFFICE: W.r.davies
Conwy Road
Llandudno Junction
Gwynedd
LL31 9BA





REGISTERED NUMBER: 02700130 (England and Wales)





AUDITORS: D.R.E. & Co. (Audit) Limited
Kingsland House
39 Abbey Foregate
Shrewsbury
Shropshire
SY2 6BL

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

REVIEW OF BUSINESS
The W R Davies Motor group operates car and commercial dealerships throughout North Wales and the Staffordshire areas. W R Davies Limited is a 100% subsidiary of W R Davies (Motors) Limited, the parent company of the group.

The company currently operates three Toyota dealerships in Stafford, Shrewsbury and Telford.

2024 has proved to have been another profitable year and a continuation from 2023, profit is though reduced in 2024 compared to 2023 due to the continued inflationary pressures facing everyone and the reduced margins achievable on used cars.

In summary the directors are satisfied with the results in 2024 and are realistic about the performance expected in 2025 with the decreasing interest rates aiding performance but the changes to National Minimum Wage increasing pressure on the company.

Key performance indicators

2024 2023 % change
Turnover £48,578,254 £47,211,399 2.90%
Gross profit £2,778,716 £3,003,932 (7.50% )
Shareholders' funds £4,206,449 £4,039,992 4.12%
Gross margin 5.72% 6.36% (0.64% )

PRINCIPAL RISKS AND UNCERTAINTIES
General economic circumstances
The levels of interest rates are expected to continue to affect the business with servicing the facilities for financing of stock and other existing loan facilities. The directors are optimistic 2025 will be a similar result in 2024 as there will continued be strong demand for products and services and inflation will have less impact.

Information systems
The company operates and is very reliant on its IT and computerised management systems. The interruption of this could have an adverse effect on the company's ability to manage its business.

Competition
Motor distribution is a very competitive sector, and as such the business is always at risk from aggressive competitors. The group believes that its superior customer service will help mitigate this risk.

Franchise agreements
The company holds franchises with Toyota. All of these agreements are subject to termination under certain circumstances. The loss of any of the franchises held could have a material effect on the business.

Regulatory compliance
The company is regulated by the FCA for sales of insurance products. In 2013 the FCA also took over responsibility for sale of consumer credit. The Group has to therefore comply with the regulatory regime and failure to do this could result in fines or even the cessation of some business. This risk is mitigated by the company through close monitoring of regulatory compliance.

ON BEHALF OF THE BOARD:





B R Pritchard - Secretary


20 May 2025

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2024

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of a motor retailer.

DIVIDENDS
An interim dividend of £0.9333333 per share was paid on 31 December 2024. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2024 will be £ 350,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

J R Davies
B R Pritchard
D J Conway
C J D Taylor

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen, in accordance with s414C(11) of the Companies Act, to set out in the company's strategic report information regarding the review of business and a description of the principal risks and uncertainties facing the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2024


AUDITORS
The auditors, D.R.E. & Co. (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



B R Pritchard - Secretary


20 May 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
W.R. DAVIES LIMITED

Opinion
We have audited the financial statements of W.r. Davies Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

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

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

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
W.R. DAVIES LIMITED


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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
W.R. DAVIES LIMITED


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

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:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the motor retail sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, Financial Conduct Authority, employment, environmental, health and safety legislation. We also consider regulations such as General Data Protection Regulations, Anti money laundering, Consumer Rights Act throughout the audit.

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

- making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and

- reviewing the client's system notes and internal controls.

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

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- review of the cashbook to identify any large or unusual transactions that appear to have no commercial basis.

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
W.R. DAVIES LIMITED

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

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




Aled Davies F.C.C.A. (Senior Statutory Auditor)
for and on behalf of D.R.E. & Co. (Audit) Limited
Kingsland House
39 Abbey Foregate
Shrewsbury
Shropshire
SY2 6BL

20 May 2025

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

31.12.24 31.12.23
Notes £    £   

TURNOVER 4 48,578,254 47,211,399

Cost of sales (45,799,538 ) (44,207,467 )
GROSS PROFIT 2,778,716 3,003,932

Administrative expenses (2,009,054 ) (1,985,876 )
769,662 1,018,056

Other operating income 67,200 66,663
OPERATING PROFIT 6 836,862 1,084,719


Interest payable and similar expenses 7 (132,685 ) (132,529 )
PROFIT BEFORE TAXATION 704,177 952,190

Tax on profit 8 (187,720 ) (202,135 )
PROFIT FOR THE FINANCIAL YEAR 516,457 750,055

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

31.12.24 31.12.23
Notes £    £   

PROFIT FOR THE YEAR 516,457 750,055


OTHER COMPREHENSIVE INCOME
Revaluation of property - 376,047
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

-

376,047
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

516,457

1,126,102

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

BALANCE SHEET
31 DECEMBER 2024

31.12.24 31.12.23
Notes £    £    £   
FIXED ASSETS
Tangible assets 10 3,260,873 3,276,516
Investment property 11 70,000 70,000
3,330,873 3,346,516

CURRENT ASSETS
Stocks 12 4,016,156 5,901,131
Debtors 13 1,581,278 1,624,462
Cash at bank 1,625,564 934,637
7,222,998 8,460,230
CREDITORS
Amounts falling due within one year 14 6,235,907 7,637,810
NET CURRENT ASSETS 987,091 822,420
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,317,964

4,168,936

CREDITORS
Amounts falling due after more than one
year

15

(1,800

)

(28,800

)

PROVISIONS FOR LIABILITIES 18 (109,715 ) (100,144 )
NET ASSETS 4,206,449 4,039,992

CAPITAL AND RESERVES
Called up share capital 19 375,000 375,000
Revaluation reserve 20 1,417,769 1,432,342
Retained earnings 20 2,413,680 2,232,650
SHAREHOLDERS' FUNDS 4,206,449 4,039,992

The financial statements were approved by the Board of Directors and authorised for issue on 20 May 2025 and were signed on its behalf by:





J R Davies - Director


W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2023 375,000 1,966,479 1,072,411 3,413,890

Changes in equity
Dividends - (500,000 ) - (500,000 )
Total comprehensive income - 766,171 359,931 1,126,102
Balance at 31 December 2023 375,000 2,232,650 1,432,342 4,039,992

Changes in equity
Dividends - (350,000 ) - (350,000 )
Total comprehensive income - 531,030 (14,573 ) 516,457
Balance at 31 December 2024 375,000 2,413,680 1,417,769 4,206,449

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

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

1. STATUTORY INFORMATION

W R Davies Limited is a private company, limited by shares, incorporated and registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The principal place of business is 123 Lichfield Road, Stafford, ST17 4LF.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

These financial statements are for the individual entity only.

The financial statements are presented in Sterling (£), rounded to the nearest £1.

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

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of paragraphs 29.28(b) and 29.29;
the requirement of paragraph 33.7;
the requirements of paragraph 24(b) of IFRS 6.

Turnover
Turnover represents net invoiced sales of goods, excluding value added tax.

Vehicle sales are recognised at the earlier of the delivery of the vehicle to the customer or the point at which the customer becomes legally committed to purchasing the vehicle. Bonus income for the sale of vehicles is recognised in the period to which it relates for general fleet bonuses. Bonus income relating to specific vehicles is recognised when that vehicle is sold. The sale of parts and servicing is recognised when goods and services are provided.

Tangible fixed assets
Freehold land and property are stated under the valuation method.

Other tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs and borrowing costs capitalised.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter:

Freehold land- Not depreciated
Freehold buildings- 2% on property
Office equipment- 50% straight line
Fixtures and fittings- 15% and 25% straight line
Motor vehicles - 25% straight line

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

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

3. ACCOUNTING POLICIES - continued

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

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

Vehicles held on consignment stock from Toyota are included in the balance sheet, as it is considered that the company enjoys the benefits and carries the risks of ownership.

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

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

3. ACCOUNTING POLICIES - continued

Financial instruments
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by group undertakings, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 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.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank and other loans, amounts due to group companies and finance leases, 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.


W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

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

3. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

4. TURNOVER

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

An analysis of turnover by class of business is given below:

31.12.24 31.12.23
£    £   
Sales of goods 46,525,664 45,324,134
Rendering of services 2,052,590 1,887,265
48,578,254 47,211,399

Turnover is the total amount, excluding value added tax, receivable by the company in the ordinary course of its business.

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

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

5. EMPLOYEES AND DIRECTORS
31.12.24 31.12.23
£    £   
Wages and salaries 2,060,326 1,927,866
Social security costs 292,638 268,280
Other pension costs 85,363 78,415
2,438,327 2,274,561

The average number of employees during the year was as follows:
31.12.24 31.12.23

Directors and management 1 1
Administration 4 4
Salesmen and other technicians 68 62
73 67

31.12.24 31.12.23
£    £   
Directors' remuneration 100,699 122,688
Directors' pension contributions to money purchase schemes 47,972 53,431

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

6. OPERATING PROFIT

The operating profit is stated after charging:

31.12.24 31.12.23
£    £   
Depreciation - owned assets 151,875 133,587
Depreciation - assets on hire purchase contracts or finance leases - 6,232
Auditors' remuneration 13,680 13,875
Auditors' remuneration for non audit work 8,521 7,319

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.24 31.12.23
£    £   
Stocking loan interest 50,390 58,650
Interest paid to parent company 81,000 72,000
Corporation tax interest 1,295 201
Hire purchase - 1,678
132,685 132,529

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

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

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.12.24 31.12.23
£    £   
Current tax:
UK corporation tax 178,149 182,553
Adjustment in respect of prior years - (203 )
Total current tax 178,149 182,350

Deferred tax 9,571 19,785
Tax on profit 187,720 202,135

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

31.12.24 31.12.23
£    £   
Profit before tax 704,177 952,190
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

176,044

238,048

Effects of:
Expenses not deductible for tax purposes (917 ) 1,598
Depreciation in excess of capital allowances 3,022 351
Adjustments to tax charge in respect of previous periods - (203 )
Deferred tax 9,571 19,785
Group relief - (45,961 )
Change in tax rate - (11,483 )
Total tax charge 187,720 202,135

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2024.

31.12.23
Gross Tax Net
£    £    £   
Revaluation of property 376,047 - 376,047

9. DIVIDENDS
31.12.24 31.12.23
£    £   
Ordinary shares of £1 each
Interim 350,000 500,000

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

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

10. TANGIBLE FIXED ASSETS
Freehold Improvements Fixtures
land and to and
buildings property fittings
£    £    £   
COST OR VALUATION
At 1 January 2024 2,991,791 21,271 580,820
Additions - - 68,260
At 31 December 2024 2,991,791 21,271 649,080
DEPRECIATION
At 1 January 2024 - 267 362,465
Charge for year 47,784 2,801 59,639
At 31 December 2024 47,784 3,068 422,104
NET BOOK VALUE
At 31 December 2024 2,944,007 18,203 226,976
At 31 December 2023 2,991,791 21,004 218,355

Motor Office
vehicles equipment Totals
£    £    £   
COST OR VALUATION
At 1 January 2024 48,683 59,082 3,701,647
Additions 61,118 6,854 136,232
At 31 December 2024 109,801 65,936 3,837,879
DEPRECIATION
At 1 January 2024 29,877 32,522 425,131
Charge for year 18,512 23,139 151,875
At 31 December 2024 48,389 55,661 577,006
NET BOOK VALUE
At 31 December 2024 61,412 10,275 3,260,873
At 31 December 2023 18,806 26,560 3,276,516

Tangible fixed assets with a carrying value of £2,944,007 (2023: £2,991,791) are pledged as security for the group's bank loans.

Cost or valuation at 31 December 2024 is represented by:

Freehold Improvements Fixtures
land and to and
buildings property fittings
£    £    £   
Valuation in 2018 805,822 - -
Cost 2,185,969 21,271 649,080
2,991,791 21,271 649,080

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

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

10. TANGIBLE FIXED ASSETS - continued

Motor Office
vehicles equipment Totals
£    £    £   
Valuation in 2018 - - 805,822
Cost 109,801 65,936 3,032,057
109,801 65,936 3,837,879

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

31.12.24 31.12.23
£    £   
Cost 2,185,969 2,185,969
Aggregate depreciation 658,184 626,518

Value of land in freehold land and buildings 602,601 602,601

The value of land and buildings is based on historic valuations performed by James R Evans MRIC, which were reviewed in 2023 by the directors, who took informal guidance from relevant professionals.

11. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 January 2024
and 31 December 2024 70,000
NET BOOK VALUE
At 31 December 2024 70,000
At 31 December 2023 70,000

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

31.12.2431.12.23
£   £   
Cost 140,000140,000
Aggregate depreciation 89,60086,800

Investment property with a value of £70,000 (2023: £70,000) is pledged as security for the group's bank loan.

The fair value of investment property is based on a valuation performed by James R Evans MRICS.

12. STOCKS
31.12.24 31.12.23
£    £   
Vehicles, parts and sundry stock 4,016,156 5,901,131

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

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

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Trade debtors 695,720 780,514
Amounts owed by group companies 38,370 27,044
Other debtors 547,639 573,413
VAT 47,432 70,286
Prepayments 252,117 173,205
1,581,278 1,624,462

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Other loans (see note 16) 27,000 27,000
Trade creditors 3,961,958 5,733,551
Amounts owed to group companies 1,299,763 816,406
Corporation tax 72,911 43,948
Social security and other taxes 77,951 69,825
Other creditors 665,322 768,071
Accruals and deferred income 131,002 179,009
6,235,907 7,637,810

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.12.24 31.12.23
£    £   
Other loans (see note 16) 1,800 28,800

16. LOANS

An analysis of the maturity of loans is given below:

31.12.24 31.12.23
£    £   
Amounts falling due within one year or on demand:
Other loans 27,000 27,000

Amounts falling due between one and two years:
Other loans - 1-2 years 1,800 28,800

Included within other loans is an amount of £28,800 (2023: £55,800) due to Toyota Financial Services (UK) PLC, which is repayable by monthly instalments. No interest was charged on the loan in the year.

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

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

17. SECURED DEBTS

The following secured debts are included within creditors:

31.12.24 31.12.23
£    £   
Consignment stock vehicles 395,474 958,085
Used vehicle stocking loan 2,931,391 3,921,203
3,326,865 4,879,288

Barclays Bank holds a fixed charge over the freehold land and buildings of the company and the book debts along with a floating charge over all other assets of the company.

An unlimited multilateral guarantee exists in respect of bank borrowings - further details are given in the contingent liabilities note.

Hire purchase liabilities are secured upon the assets to which they relate.

Trade creditors relating to consigned vehicles are secured on the individual vehicle stocks to which they relate.

Included within trade creditors are amounts of £2,429,990 (2023: £3,232,809) due to Toyota GB and £501,401 (2023: £688,394) due to Lombard North Central Plc in respect of vehicle stocking loans. Outstanding amounts are secured over the vehicle stock to which they relate.

18. PROVISIONS FOR LIABILITIES
31.12.24 31.12.23
£    £   
Deferred tax
Accelerated capital allowances 109,715 100,144

Deferred
tax
£   
Balance at 1 January 2024 100,144
Provided during year 9,571
Balance at 31 December 2024 109,715

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.24 31.12.23
value: £    £   
375,000 Ordinary £1 375,000 375,000

Each ordinary share is entitled to one vote in any circumstances.

W.R. DAVIES LIMITED (REGISTERED NUMBER: 02700130)

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

20. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 January 2024 2,232,650 1,432,342 3,664,992
Profit for the year 516,457 - 516,457
Dividends (350,000 ) - (350,000 )
Release of revaluation reserve 14,573 (14,573 ) -
At 31 December 2024 2,413,680 1,417,769 3,831,449

Retained earnings includes all current and prior period retained profits and losses.

Revaluation reserve represents the amount by which the net book value of fixed assets exceed carrying value.

21. CONTINGENT LIABILITIES

The company has an unlimited multilateral guarantee in respect of bank borrowings with the following group companies: W R Davies (Motors) Limited, W R Davies (Stafford) Limited, Kirby Jones Limited and W R Davies (2004) Limited. As at the year end the potential contingent liability for W R Davies Limited amounted to £5,043,752 (2023: £4,580,785).

In a prior year the following group companies entered into a Vehicle Stocking Loan Facility with Lombard North Central Plc: W R Davies (Stafford) Limited, W R Davies (Motors) Limited, W R Davies (2004) Limited and Kirby Jones Limited. The cross guarantors within this agreement are W R Davies (Motors) Limited, W R Davies Limited, W R Davies (Stafford) Limited, Kirby Jones Limited and W R Davies (2004) Limited. As at the year end the contingent liability for W R Davies Limited amounted to £3,322,744 (2023: £2,879,755).

The total potential contingent liability for W R Davies Limited amounted to £8,366,496 (2023: £7,460,540).

22. RELATED PARTY DISCLOSURES

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.

The company is a wholly owned subsidiary of W R Davies (Motors) Limited, whose registered office is Conwy Road, Llandudno Junction, Gwynedd, LL31 9BA.

W R Davies (Motors) Limited is the parent company of the smallest and largest group for which group accounts are drawn up and include W R Davies Limited.

Group accounts are freely available from Companies House.

23. ULTIMATE CONTROLLING PARTY

The controlling party is the parent company W R Davies (Motors) Limited. The ultimate controlling party is J R Davies, by virtue of a controlling shareholding in W R Davies (Motors) Limited.