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REGISTERED NUMBER: 05284390 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

W.R. DAVIES (2OO4) LIMITED

W.R. DAVIES (2OO4) LIMITED (REGISTERED NUMBER: 05284390)






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 4

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


W.R. DAVIES (2OO4) 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: 05284390 (England and Wales)





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

W.R. DAVIES (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

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 (2004) Limited is a 100% subsidiary of W R Davies (Motors) Limited, the parent company of the group.

The company currently operates two Nissan dealerships in Stafford and Telford.

2024 has proved to have been another profitable year and a continuation from 2023 with profits being comparable 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 £28,456,634 £24,878,594 14.38%
Gross profit £1,453,429 £1,351,100 7.57%
Shareholders' funds £1,614,683 £1,581,448 2.10%
Gross margin 5.11% 5.43% (0.32% )

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 be continued 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 affect 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 Nissan. 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 (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

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
No dividends will be distributed for the year ended 31 December 2024.

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

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

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 (2OO4) LIMITED

Opinion
We have audited the financial statements of W.R. Davies (2oo4) 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 (2OO4) 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 (2OO4) 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.

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:

- 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 regulation, 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.

- 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.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
W.R. DAVIES (2OO4) LIMITED


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 (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

31.12.24 31.12.23
Notes £    £   

TURNOVER 4 28,456,634 24,878,594

Cost of sales (27,003,205 ) (23,527,494 )
GROSS PROFIT 1,453,429 1,351,100

Administrative expenses (1,241,620 ) (1,165,263 )
OPERATING PROFIT 6 211,809 185,837

Interest receivable and similar income 681 -
212,490 185,837

Interest payable and similar expenses 7 (153,961 ) (129,479 )
PROFIT BEFORE TAXATION 58,529 56,358

Tax on profit 8 (25,294 ) (9,925 )
PROFIT FOR THE FINANCIAL YEAR 33,235 46,433

W.R. DAVIES (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

31.12.24 31.12.23
Notes £    £   

PROFIT FOR THE YEAR 33,235 46,433


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

33,235

46,433

W.R. DAVIES (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

BALANCE SHEET
31 DECEMBER 2024

31.12.24 31.12.23
Notes £    £    £   
FIXED ASSETS
Tangible assets 9 370,854 398,209

CURRENT ASSETS
Stocks 10 4,105,074 3,370,894
Debtors 11 769,844 1,412,047
Cash at bank - 75,947
4,874,918 4,858,888
CREDITORS
Amounts falling due within one year 12 3,577,319 3,625,470
NET CURRENT ASSETS 1,297,599 1,233,418
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,668,453

1,631,627

PROVISIONS FOR LIABILITIES 15 53,770 50,179
NET ASSETS 1,614,683 1,581,448

CAPITAL AND RESERVES
Called up share capital 16 1,025,000 1,025,000
Retained earnings 17 589,683 556,448
SHAREHOLDERS' FUNDS 1,614,683 1,581,448

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 (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

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

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2023 1,025,000 510,015 1,535,015

Changes in equity
Total comprehensive income - 46,433 46,433
Balance at 31 December 2023 1,025,000 556,448 1,581,448

Changes in equity
Total comprehensive income - 33,235 33,235
Balance at 31 December 2024 1,025,000 589,683 1,614,683

W.R. DAVIES (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

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

1. STATUTORY INFORMATION

W.R. Davies (2oo4) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The principal place of business is Valley Drive, Stafford ST16 1NZ.

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

Accounting convention
The financial statements have been prepared under the historical cost convention.

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
Tangible fixed assets are stated at historic cost less accumulated depreciation. Cost includes the original purchase price, costs 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 the shorter:

Improvements to leasehold property- 7.5% straight line
Fixtures and fittings- varying rates between 15% and 33% straight line
Motor vehicles- varying rates between 15% and 33% straight line
Computer equipment- 15%, 25% and 50% straight line

W.R. DAVIES (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

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

3. ACCOUNTING POLICIES - continued

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

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

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, amounts owed by group undertakings and cash and bank balances, 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 (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

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 profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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 27,241,515 23,821,659
Rendering of services 1,215,119 1,056,935
28,456,634 24,878,594

5. EMPLOYEES AND DIRECTORS
31.12.24 31.12.23
£    £   
Wages and salaries 1,089,809 994,468
Social security costs 144,922 119,270
Other pension costs 42,102 37,313
1,276,833 1,151,051

W.R. DAVIES (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

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

5. EMPLOYEES AND DIRECTORS - continued

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

Directors and management 1 1
Administration 3 3
Salesmen and other technicians 32 30
36 34

None of the directors are remunerated by the company. Details of directors' remuneration are included within the financial statements of W R Davies (Motors) Limited and W R Davies Limited, related companies.

31.12.24 31.12.23
£    £   
Directors' remuneration - -

6. OPERATING PROFIT

The operating profit is stated after charging:

31.12.24 31.12.23
£    £   
Depreciation - owned assets 80,053 88,041
Depreciation - assets on hire purchase contracts or finance leases 4,922 5,858
Auditors' remuneration 11,930 11,489
Auditors' remuneration for non audit work 4,526 4,320

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.24 31.12.23
£    £   
Stocking loan interest 99,006 80,708
Other interest 955 -
Interest paid to group company 54,000 48,000
Corporation tax interest - 771
153,961 129,479

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 21,703 20,894

Deferred tax 3,591 (10,969 )
Tax on profit 25,294 9,925

W.R. DAVIES (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

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

8. TAXATION - continued

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 58,529 56,358
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

14,632

14,090

Effects of:
Expenses not deductible for tax purposes 1,050 (415 )
Depreciation in excess of capital allowances 6,021 8,532
Deferred tax 3,591 (10,969 )
Change in tax rate - (1,313 )
Total tax charge 25,294 9,925

9. TANGIBLE FIXED ASSETS
Improvements
to Fixtures
leasehold and Motor Computer
property fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 January 2024 344,859 425,644 45,000 41,762 857,265
Additions - 51,408 - 6,212 57,620
At 31 December 2024 344,859 477,052 45,000 47,974 914,885
DEPRECIATION
At 1 January 2024 133,192 254,486 45,000 26,378 459,056
Charge for year 27,461 46,836 - 10,678 84,975
At 31 December 2024 160,653 301,322 45,000 37,056 544,031
NET BOOK VALUE
At 31 December 2024 184,206 175,730 - 10,918 370,854
At 31 December 2023 211,667 171,158 - 15,384 398,209

W.R. DAVIES (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

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

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows:
Fixtures
and
fittings
£   
COST
Additions 43,750
At 31 December 2024 43,750
DEPRECIATION
Charge for year 4,922
At 31 December 2024 4,922
NET BOOK VALUE
At 31 December 2024 38,828

10. STOCKS
31.12.24 31.12.23
£    £   
Vehicles, parts and sundry stock 4,105,074 3,370,894

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Trade debtors 461,119 607,227
Amounts owed by group undertakings 156,399 639,593
Other debtors 96,337 92,248
VAT 41 12,397
Prepayments 55,948 60,582
769,844 1,412,047

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Bank loans and overdrafts (see note 13) 269,623 -
Trade creditors 3,097,101 3,414,044
Amounts owed to group undertakings 2,562 5,686
Tax 21,703 7,191
Social security and other taxes 47,269 39,069
Other creditors 86,267 86,899
Accrued expenses 52,794 72,581
3,577,319 3,625,470

W.R. DAVIES (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

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

13. 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:
Bank overdrafts 269,623 -

14. SECURED DEBTS

The following secured debts are included within creditors:

31.12.24 31.12.23
£    £   
Bank overdraft 269,623 -
Used vehicle stocking loan 2,934,386 3,019,797
3,204,009 3,019,797

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

Included within trade creditors is the amount of £2,034,619 (2023: £2,194,558) due to Nissan (GB) Financial Services Ltd and £899,767 (2023: £825,239) due to Lombard North Central Plc in respect of vehicle stocking loans. Outstanding amounts are secured over the vehicle stock to which they relate.

Bank borrowing is secured by a debenture.

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

The hire purchase liabilities are secured on the asset to which they relate.

15. PROVISIONS FOR LIABILITIES
31.12.24 31.12.23
£    £   
Deferred tax
Accelerated capital allowance 53,770 50,179

Deferred
tax
£   
Balance at 1 January 2024 50,179
Provided during year 3,591
Balance at 31 December 2024 53,770

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.24 31.12.23
value: £    £   
1,025,000 Ordinary £1 1,025,000 1,025,000

W.R. DAVIES (2OO4) LIMITED (REGISTERED NUMBER: 05284390)

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

16. CALLED UP SHARE CAPITAL - continued

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

17. RESERVES
Retained
earnings
£   

At 1 January 2024 556,448
Profit for the year 33,235
At 31 December 2024 589,683

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

18. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for the benefit of the employees. There were unpaid contributions of £16,391 at 31 December 2024 (2023: £6,703).

19. CONTINGENT LIABILITIES

The company has an unlimited multilateral guarantee in respect of bank borrowings with the following related companies: W R Davies (Motors) Limited, W R Davies (Stafford) Limited, W R Davies Limited and Kirby Jones Limited.

As at the year end the potential contingent liability for W R Davies (2004) Limited amounted to £3,169,816 (2023: £3,693,337).

During a prior year the group companies entered into a Vehicle Stocking Loan Facility with Lombard North Central Plc. 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 (2004) Limited amounted to £2,982,008 (2023: £2,769,855).

The total potential contingent liability for W R Davies (2004) Limited amounted to £6,151,824 (2023: £6,463,192).

20. 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 (2004) Limited. Group accounts are freely available from Companies House.

W R Davies (Motors) Limited is regarded by the directors as being the company's ultimate parent company.

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