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Registered number: 13560678










DAVIES ENTERPRISE HOLDINGS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2024

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Director
S E Davies 




Company secretary
F Davies



Registered number
13560678



Registered office
Unit 5, Dyffryn Enterprise Park
Pool Road

Newtown

Powys

SY16 3AJ




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG





 
DAVIES ENTERPRISE HOLDINGS LIMITED
 

CONTENTS



Page
Group strategic report
 
1 - 2
Director's report
 
3 - 4
Independent auditors' report
 
5 - 8
Consolidated statement of comprehensive income
 
9
Consolidated statement of financial position
 
10 - 11
Company statement of financial position
 
12
Consolidated statement of changes in equity
 
13
Company statement of changes in equity
 
14
Consolidated statement of cash flows
 
15 - 16
Notes to the financial statements
 
17 - 40


 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

Introduction
 
Davies Enterprise Holdings Ltd is the ultimate parent and holding company for Hilltop Honey Ltd and its associated companies.
The Group has continued to be one of the leading independent suppliers of honey in the UK, with its principal activity being the packaging and distribution of sweet spreads.

Business review
 
The Directors present the results of the Group for the year ended 31 August 2024. The review of the  performance of the Group included below is deemed appropriate based on the size and nature of the Group. 
During the year, the Group’s turnover has increased by 31% to £44.1m (2023: £33.7m). Gross profit has increased by 70% to £9.7m (2023: £5.7m).  The increase in turnover and gross profit has been due to the continued expansion of the Group. Operating profit increased by 465% to £3.5m (2023: £688k).  
The Group’s cash position has remained consistent with a cash balance of £433k at year end (2023: £354k).
The Group’s financial position has remained strong, with net assets increasing to £3.5m (2023: £1.7m).
 

Principal risks and uncertainties
 
The Directors continually monitor the risks and uncertainties which may impact the performance of the Group. 
The principal risks during the year included the impact of inflation, increased shipping costs, higher interest rates, and the Group’s ability to absorb these additional expenses. The directors monitor these factors on a regular basis and adapt strategies as required to ensure that the business mitigates these risks as much as commercially possible.  
These are in addition to the normal operational risks associated with safety and product quality.

Financial key performance indicators
 
The key performance indicators used by the business to measure its financial performance those relating to
turnover, gross profit and operating profit. The Group measures its financial position by reference to the
bank balance, net current assets and net assets. A description of Group performance with reference to
these key performance indicators is included in the business review above. 

Page 1

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Other key performance indicators
 
The Group uses a number of other non- financial key performance indicators to measure its ongoing
performance. The Group monitors its relationships with key customer and suppliers which continue to be
strong. The Group continually monitors customer service and staff productivity. 


This report was approved by the board and signed on its behalf.



S E Davies
Director

Date: 24 May 2025

Page 2

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2024

The director presents his report and the financial statements for the year ended 31 August 2024.

The parent company Davies Enterprise Holdings Limited was incorporated on 11 August 2021 and the accounts include results of the Company from that date. 
The accounts include results of the Group and have been consolidated on the merger accounting basis. Accordingly the results of the Group are included as if it has always been in existence and no goodwill has been accounted for.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £2,318,789 (2023 - £308,289).

Interim group dividends of £458,333 were paid during the year. 

Director

The director who served during the year was:

S E Davies 

Future developments

The Group continues to trade in relation to its principal activities and there are no likely future developments
which the Directors consider relevant.
The Group will continue to invest in the Vastre factory in the new financial year, with an emphasis on automation, all of which will support continued growth well into the future.

Page 3

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as  is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

 has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

On 10 January 2025 the company acquired 50% of the issued share capital of Waterfields (Leigh) Limited. 
 
Subsequent to the year end, one of the company's subsidiaries, Patchwork Foods Limited, ceased trading. The investment in the subsidiary of £150,000 and intercompany receivable of £106,000 have been fully provided against in these financial statements.

Auditors

The auditorsWR Partnerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





S E Davies
Director

Date: 24 May 2025

Page 4

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAVIES ENTERPRISE HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of Davies Enterprise Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 August 2024 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 director's 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 or the 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 director with respect to going concern are described in the relevant sections of this report.


Page 5

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAVIES ENTERPRISE HOLDINGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's 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:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 6

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAVIES ENTERPRISE HOLDINGS LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is responsible for assessing the Group's and 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


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 an Auditors' 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 Group financial statements.


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

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and the Group and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR). 
We understood how the Company and the Group are complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements. 
We assessed the susceptibility of the Company and Group's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.


Page 7

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAVIES ENTERPRISE HOLDINGS LIMITED (CONTINUED)


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


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 Auditors' 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 2006Our 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 Auditors' 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.





John Fletcher BA (Hons) FCA (Senior statutory auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 
Date: 
27 May 2025
Page 8

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
Note
£
£

  

Turnover
 4 
44,125,077
33,741,312

Cost of sales
  
(34,440,789)
(28,039,409)

Gross profit
  
9,684,288
5,701,903

Distribution costs
  
(1,259,121)
(991,940)

Administrative expenses
  
(4,901,662)
(4,106,920)

Other operating income
 5 
-
20,204

Operating profit
 6 
3,523,505
623,247

Interest payable and similar expenses
 10 
(350,366)
(326,015)

Profit before taxation
  
3,173,139
297,232

Tax on profit
 11 
(854,350)
11,057

Profit for the financial year
  
2,318,789
308,289

Profit for the year attributable to:
  

Owners of the parent Company
  
2,318,789
308,289

  
2,318,789
308,289

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 17 to 40 form part of these financial statements.

Page 9

 
DAVIES ENTERPRISE HOLDINGS LIMITED
REGISTERED NUMBER: 13560678

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 14 
5,150,947
4,745,782

  
5,150,947
4,745,782

Current assets
  

Stocks
 16 
4,897,787
4,100,763

Debtors: amounts falling due within one year
 17 
3,906,659
5,724,269

Current asset investments
 18 
5,821
5,821

Cash at bank and in hand
 19 
432,903
354,208

  
9,243,170
10,185,061

Creditors: amounts falling due within one year
 20 
(8,551,849)
(10,409,330)

Net current assets/(liabilities)
  
 
 
691,321
 
 
(224,269)

Total assets less current liabilities
  
5,842,268
4,521,513

Creditors: amounts falling due after more than one year
 21 
(1,199,663)
(1,869,759)

Provisions for liabilities
  

Deferred taxation
 24 
(1,052,511)
(997,116)

Other provisions
 25 
(75,000)
-

  
 
 
(1,127,511)
 
 
(997,116)

Net assets
  
3,515,094
1,654,638

Page 10

 
DAVIES ENTERPRISE HOLDINGS LIMITED
REGISTERED NUMBER: 13560678
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Capital and reserves
  

Called up share capital 
 26 
1
1

Profit and loss account
 27 
3,515,093
1,654,637

Equity attributable to owners of the parent Company
  
3,515,094
1,654,638


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




S E Davies
Director

Date: 24 May 2025

The notes on pages 17 to 40 form part of these financial statements.

Page 11

 
DAVIES ENTERPRISE HOLDINGS LIMITED
REGISTERED NUMBER: 13560678

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024

2024
2023
Note
£
£

Fixed assets
  

Investments
 15 
2
2

  
2
2

Current assets
  

Debtors: amounts falling due within one year
 17 
-
33,937

Cash at bank and in hand
 19 
23,675
1,313

  
23,675
35,250

Creditors: amounts falling due within one year
 20 
(279,676)
(35,251)

Net current liabilities
  
 
 
(256,001)
 
 
(1)

Total assets less current liabilities
  
(255,999)
1

  

  

Net (liabilities)/assets
  
(255,999)
1


Capital and reserves
  

Called up share capital 
 26 
1
1

Profit for the year
  
202,333
175,333

Other changes in the profit and loss account

  

(458,333)
(175,333)

Profit and loss account carried forward
  
(256,000)
-

  
(255,999)
1


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




S E Davies
Director

Date: 24 May 2025

The notes on pages 17 to 40 form part of these financial statements.

Page 12

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£


At 1 September 2022
1
1,521,681
1,521,682
1,521,682


Comprehensive income for the year

Profit for the year
-
308,289
308,289
308,289
Total comprehensive income for the year
-
308,289
308,289
308,289


Contributions by and distributions to owners

Dividends: Equity capital
-
(175,333)
(175,333)
(175,333)


Total transactions with owners
-
(175,333)
(175,333)
(175,333)



At 1 September 2023
1
1,654,637
1,654,638
1,654,638


Comprehensive income for the year

Profit for the year
-
2,318,789
2,318,789
2,318,789
Total comprehensive income for the year
-
2,318,789
2,318,789
2,318,789


Contributions by and distributions to owners

Dividends: Equity capital
-
(458,333)
(458,333)
(458,333)


Total transactions with owners
-
(458,333)
(458,333)
(458,333)


At 31 August 2024
1
3,515,093
3,515,094
3,515,094


The notes on pages 17 to 40 form part of these financial statements.

Page 13

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 September 2022
1
-
1


Comprehensive income for the year

Profit for the year
-
175,333
175,333
Total comprehensive income for the year
-
175,333
175,333


Contributions by and distributions to owners

Dividends: Equity capital
-
(175,333)
(175,333)


Total transactions with owners
-
(175,333)
(175,333)



At 1 September 2023
1
-
1


Comprehensive income for the year

Profit for the year
-
202,333
202,333
Total comprehensive income for the year
-
202,333
202,333


Contributions by and distributions to owners

Dividends: Equity capital
-
(458,333)
(458,333)


Total transactions with owners
-
(458,333)
(458,333)


At 31 August 2024
1
(256,000)
(255,999)


The notes on pages 17 to 40 form part of these financial statements.

Page 14

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
2,318,789
308,289

Adjustments for:

Depreciation of tangible assets
943,083
818,009

Loss on disposal of tangible assets
-
(995)

Interest paid
350,366
370,695

Taxation charge
854,350
(11,057)

(Increase) in stocks
(797,024)
(449,831)

Decrease/(increase) in debtors
1,302,910
(1,655,401)

(Decrease)/increase in creditors
(2,122,980)
2,846,945

Increase in provisions
75,000
-

Corporation tax received
-
67,688

Net cash generated from operating activities

2,924,494
2,294,342


Cash flows from investing activities

Purchase of tangible fixed assets
(1,348,248)
(1,546,351)

Sale of tangible fixed assets
-
20,000

HP interest paid
(67,508)
(56,869)

Net cash from investing activities

(1,415,756)
(1,583,220)
Page 15

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024


2024
2023

£
£



Cash flows from financing activities

Repayment of bank loans
(361,539)
(185,736)

Repayment of other loans
-
(247,756)

Repayment of/new finance leases
(354,697)
488,063

Dividends paid
(458,333)
(175,333)

Interest paid
(282,858)
(313,826)

Net cash used in financing activities
(1,457,427)
(434,588)

Net increase in cash and cash equivalents
51,311
276,534

Cash and cash equivalents at beginning of year
346,056
69,522

Cash and cash equivalents at the end of year
397,367
346,056


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
432,903
354,208

Bank overdrafts
(35,536)
(8,152)

397,367
346,056


Page 16

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

1.


General information

Davies Enterprise Holdings Limited (''the Company'') is a private company limited by shares and is registered and incorporated in England & Wales, with its registered office and principal place of business at Unit 5 Dyffryn Enterprise Park, Pool Road, Newtown, Powys, United Kingdom, SY16 3BD.
The principal activity of the Group during the year was the production of honey. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

  
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the merger accounting method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their book values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income for the entire financial year in which the combination occurred. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The company meets its day-to-day working capital requirements through its bank facilities. The company’s forecasts and projections show that the company should be able to operate within the level of its current facilities. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Page 17

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.5

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 18

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.7

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

 
2.8

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.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 19

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.10

Pensions

Defined contribution pension plan

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 Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.11

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 20

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
2%
Short-term leasehold property
-
14%
Plant and machinery
-
15%
Motor vehicles
-
25%
Fixtures and fittings
-
25%
Computer equipment
-
25%
Other fixed assets
-

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.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Freehold land is considered to have an indefinite useful economic life and is therefore not depreciated.

Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use and are reviewed for impairment at each reporting period. 

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 21

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

The carrying amount of the trade debtors includes debtors which are subject to a factoring arrangement. Under this arrangement, the company has transferred the relevant debtors to the factor in exchange for cash and is prevented from selling and pledging the debtors. The risks and rewards related to the factored debtors are transferred under the factoring agreement. The Company has therefore de-recognised the transferred assets in their entirety from the Balance Sheet. 

 
2.16

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.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Dilapidation provisions are established over the life of leases to cover remedial work necessary at termination under the terms of those leases. 

Page 22

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)

 
2.19

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Page 23

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

2.Accounting policies (continued)


2.19
Financial instruments (continued)

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

 
2.20

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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the directors there are no estimates nor assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Page 24

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

4.


Turnover

The whole of the turnover is attributable to the principal activity of the Company. 

Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
42,127,861
33,026,244

Rest of Europe
573,699
232,848

Rest of the world
1,423,517
482,220

44,125,077
33,741,312



5.


Other operating income

2024
2023
£
£

Sundry income
-
20,204

-
20,204



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

(Profit)/loss on disposal of tangible assets
-
(995)

Exchange differences
(108,466)
2,135

Other operating lease rentals
77,979
139,583


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
15,695
14,950

Page 25

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

8.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
3,574,070
3,251,527

Social security costs
387,754
273,969

Cost of defined contribution scheme
292,773
241,342

4,254,597
3,766,838


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Average employees
138
123

The Company has no employees other than the directors, who did not receive any remuneration (2023 - £NIL)

9.


Director's remuneration

2024
2023
£
£

Director's emoluments
163,751
142,841

Group contributions to defined contribution pension schemes
213,618
133,883

377,369
276,724


During the year retirement benefits were accruing to 3 directors (2023 - 2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £115,443 (2023 - £105,832).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £27,289 (2023 - £9,828).

Page 26

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
113,571
111,751

Other loan interest payable
169,283
157,316

Finance leases and hire purchase contracts
67,508
56,869

Other interest payable
4
79

350,366
326,015


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
284,255
-

Adjustments in respect of previous periods
-
(67,688)


284,255
(67,688)


Total current tax
284,255
(67,688)

Deferred tax


Origination and reversal of timing differences
570,095
56,631

Total deferred tax
570,095
56,631


Taxation on profit/(loss) on ordinary activities
854,350
(11,057)
Page 27

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25.0% (2023 - 21.5%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
3,173,139
297,232


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25.0% (2023 - 21.5%)
793,285
63,905

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,342
4,300

Capital allowances for year in excess of depreciation
(6,277)
(11,574)

Adjustments to tax charge in respect of prior periods
-
(67,688)

Impairment of investment and loan balances
64,000
-

Total tax charge for the year
854,350
(11,057)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Dividends

2024
2023
£
£


On Ordinary share capital
458,333
175,333

458,333
175,333

Page 28

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

13.


Intangible assets

Group and Company





Goodwill

£



Cost


At 1 September 2023
34,000



At 31 August 2024

34,000



Amortisation


At 1 September 2023
34,000



At 31 August 2024

34,000



Net book value



At 31 August 2024
-



At 31 August 2023
-



Page 29
 


 
DAVIES ENTERPRISE HOLDINGS LIMITED


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


14.


Tangible fixed assets


Group







Freehold property
Leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Computer equipment
Other fixed assets
Total

£
£
£
£
£
£
£
£



Cost or valuation


At 1 September 2023
640,024
1,671,158
4,168,601
17,651
74,295
194,103
-
6,765,832


Additions
9,134
27,203
1,069,525
-
30,615
32,596
179,175
1,348,248



At 31 August 2024

649,158
1,698,361
5,238,126
17,651
104,910
226,699
179,175
8,114,080



Depreciation


At 1 September 2023
68,469
435,156
1,330,136
17,651
37,100
131,538
-
2,020,050


Charge for the year
13,603
235,181
640,245
-
21,732
32,322
-
943,083



At 31 August 2024

82,072
670,337
1,970,381
17,651
58,832
163,860
-
2,963,133



Net book value



At 31 August 2024
567,086
1,028,024
3,267,745
-
46,078
62,839
179,175
5,150,947



At 31 August 2023
571,555
1,236,002
2,838,465
-
37,195
62,565
-
4,745,782

Page 30
 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

           14.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Plant and machinery
916,333
1,402,431

916,333
1,402,431


15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 September 2023
2


Additions
150,000



At 31 August 2024
150,002



Impairment


Charge for the period
150,000



At 31 August 2024

150,000



Net book value



At 31 August 2024
2



At 31 August 2023
2

Page 31

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Hilltop Honey Limited
Unit 5 Dyffryn Enterprise Park, Pool Road, Newtown, Powys, United Kingdom, SY16 3BD
Ordinary
100%
Sweet Vegan Foods Limited
Unit 5 Dyffryn Enterprise Park, Pool Road, Newtown, Powys, United Kingdom, SY16 3BD
Ordinary
100%
Patchwork Foods Limited
Unit 5-6 Llys Parcwr, Ruthin, Denbighshire, LL15 1NJ
Ordinary
53%

The company acquired 53% of the ordinary share capital and 90% of the voting rights of Patchwork Foods Limited on 7 May 2024 for a consideration of £150,000. 
In accordance with the provisions of the Companies Act 2006 and paragraph 9.9A of FRS102, Patchwork Foods Limited has been excluded from the consolidated accounts on the basis that it is not material to the Group. 

Page 32

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

16.


Stocks

Group
Group
2024
2023
£
£

Raw materials and consumables
2,015,211
2,036,280

Finished goods and goods for resale
2,882,576
2,064,483

4,897,787
4,100,763


Inventory is pledged as security over the revolving loan.


17.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
3,097,791
4,562,713
-
-

Amounts owed by group undertakings
-
-
-
32,371

Other debtors
261,586
196,823
-
1,566

Prepayments and accrued income
547,282
450,033
-
-

Deferred taxation
-
514,700
-
-

3,906,659
5,724,269
-
33,937


Page 33

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

18.


Current asset investments

Group
Group
2024
2023
£
£

Listed investments
5,821
5,821

5,821
5,821



19.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
432,903
354,208
23,675
1,313

Less: bank overdrafts
(35,536)
(8,152)
-
-

397,367
346,056
23,675
1,313


Page 34

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
35,536
8,152
-
-

Bank loans
411,234
408,054
-
-

Trade creditors
6,358,789
5,130,739
-
-

Amounts owed to group undertakings
-
-
276,426
1

Corporation tax
284,255
-
-
-

Other taxation and social security
95,895
83,783
-
-

Obligations under finance lease and hire purchase contracts
338,255
387,575
-
-

Other creditors
478,843
3,976,840
-
32,000

Accruals and deferred income
549,042
414,187
3,250
3,250

8,551,849
10,409,330
279,676
35,251



21.


Creditors: Amounts falling due after more than one year

Group
Group
2024
2023
£
£

Bank loans
457,334
822,053

Net obligations under finance leases and hire purchase contracts
580,627
886,004

Accruals and deferred income
161,702
161,702

1,199,663
1,869,759




Page 35

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£
£

Amounts falling due within one year

Bank loans
411,234
408,054


411,234
408,054

Amounts falling due 1-2 years

Bank loans
32,667
302,829


32,667
302,829

Amounts falling due 2-5 years

Bank loans
424,667
423,070


424,667
423,070

Amounts falling due after more than 5 years

Bank loans
-
96,154

-
96,154

868,568
1,230,107


Bank loans are secured by fixed and floating charges over the Company's assets.

Included within bank loans in the prior year were loans issued by National Westminster Bank PLC for £235,298 and £400,000. These loans were repaid in August 2024.

Included within bank loans in the prior year is a CBIL loan for £489,583 and was repaid in August 2024.

Included within bank loans are loans issued by Santander UK PLC for £490,000 (2023: Nil). This loan is repayable by quarterly instalments with a final repayment date of August 2027. Interest is charged at a rate of 2.5% per annum at the Bank of England Base rate. 

Included within bank loans is a revolving facility of £1.5m issued by Santander PLC secured over the stock of the business. This revolving facility is payable on demand. Interest is charged at 2.5% per annum above the Santander Base Rate.

Page 36

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2024
2023
£
£

Within one year
338,255
387,575

Between 1-5 years
580,627
886,004

918,882
1,273,579

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


24.


Deferred taxation


Group



2024


£






At beginning of year
(482,416)


Charged to profit or loss
(570,095)



At end of year
(1,052,511)

Page 37

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
 
24.Deferred taxation (continued)

Company


2024






At end of year
-

The deferred tax balance is made up as follows:

Group
Group
2024
2023
£
£

Accelerated capital allowances
(1,058,888)
(1,002,286)

Short term timing differences - unpaid pension contributions
6,377
5,170

Unused taxable losses
-
514,700

(1,052,511)
(482,416)

Comprising:

Asset - due within one year
-
514,700
-
-

Liability
(1,052,511)
(997,116)
-
-

(1,052,511)
(482,416)
-
-



25.


Provisions


Group



Dilapidation provisions

£





Charged to profit or loss
75,000



At 31 August 2024
75,000

The dilapidation provision relates to the group's warehouse leases. 
Page 38

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

26.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 (2023 - 1) Ordinary share of £0.01
0.01
0.01
74 (2023 - 74) Ordinary A shares of £0.01 each
0.74
0.74
25 (2023 - 25) Ordinary B shares of £0.01 each
0.25
0.25

1.00

1.00



27.


Reserves

Profit and loss account

Group & Company
This reserve represents the value of the cumulative retained profits and losses since incorporation, less distributions made to shareholders.

28.


Analysis of net debt




At 1 September 2023
Cash flows
At 31 August 2024
£

£

£

Cash at bank and in hand

354,208

78,695

432,903

Bank overdrafts

(8,152)

(27,384)

(35,536)

Debt due after 1 year

(822,053)

364,719

(457,334)

Debt due within 1 year

(463,183)

26,442

(436,741)

Finance leases

(1,273,579)

354,697

(918,882)

Liquid investments

5,821

-

5,821


(2,206,938)
797,169
(1,409,769)


29.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £292,773 (2023: £241,342). Contributions totalling £25,507 (2023: £20,678) were payable to the fund at the balance sheet date and are included in creditors.

Page 39

 
DAVIES ENTERPRISE HOLDINGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024

30.


Commitments under operating leases

At 31 August 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
145,203
149,720

Later than 1 year and not later than 5 years
398,643
546,031

543,846
695,751

31.


Related party transactions

Included within other debtors is a loan due from Director for the sum of £54,622 (2023: £1,566).


32.


Post balance sheet events

On 10 January 2025 the company acquired 50% of the issued share capital of Waterfields (Leigh) Limited. 
Subsequent to the year end, one of the company's subsidiaries, Patchwork Foods Limited, ceased trading. The investment in the subsidiary of £150,000 and intercompany receivable of £106,000 have been fully provided against in these financial statements. 


33.


Controlling party

The Company is under control of Mr S E Davies, by virtue of owning more than 50% of the voting rights of the ordinary share capital. 

 
Page 40