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00593600 core:ShareCapital 2022-12-31 iso4217:GBP xbrli:pure xbrli:shares

Registration number: 00593600

Davan Caravans Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2024

image-name
 

Davan Caravans Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5 to 6

Independent Auditor's Report

7 to 9

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 28

 

Davan Caravans Limited

Company Information

Directors

Mr R Burton

Mr M Davies

Mr N Davies

Mr G M Davies

Registered office

Shepherds Way
St Georges
Weston super Mare
North Somerset
BS22 7XA

Auditors

Westcotts (SW) LLP
Chartered Accountants and statutory auditorTallford House
38 Walliscote Road
Weston-super-Mare
Somerset
BS23 1LP

 

Davan Caravans Limited

Strategic Report for the Year Ended 31 December 2024

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

Fair review of the business


Navigating a Tough Year of Overproduction and Diverging Fortunes

The caravan and motorhome industry, once riding a wave of unprecedented demand, is facing turbulent times. Davan Caravans & Motorhomes, like many dealerships across the UK, finds itself navigating a "tough year" characterized by high stock levels, manufacturer overproduction, and a striking divergence between motorhome and caravan sales.

For the past few years, the 'staycation boom' fuelled by travel restrictions and a desire for outdoor adventures saw both caravan and motorhome sales soar. Manufacturers, eager to capitalize on this unprecedented demand, ramped up production. However, as international travel has reopened and the cost of living has significantly increased, the landscape has shifted dramatically.

The Overproduction Problem:

The root of the current challenges stems from manufacturers anticipating continued growth at the same rate as the pandemic years. This led to significant overproduction, leaving dealerships like Davan holding considerably more stock than anticipated. While a healthy inventory is essential, the current level is putting pressure on storage space, financing costs, and ultimately, profit margins.

Motorhomes Hold Their Ground (Somewhat):

The good news, relatively speaking, is that motorhome sales, while not booming, are still holding up better than caravan sales. Motorhomes, with their inherent freedom and self-sufficiency, remain attractive to a specific demographic of travellers seeking longer, more immersive adventures. The investment in a motorhome is often seen as a longer-term commitment, making it less susceptible to short-term economic fluctuations compared to the more leisure-focused caravan.

Caravan Sales Lag Behind:

Caravan sales, on the other hand, have experienced a more significant downturn. This could be attributed to several factors:

Increased Cost of Living: Caravanning often involves additional expenses like campsite fees, fuel costs, and towing equipment. As household budgets become stretched, these discretionary expenses are often the first to be cut

Return to International Travel: With the world opening up, families are once again prioritizing overseas holidays, diverting budgets away from domestic caravanning trips.

Saturation of the Market: The rapid growth in caravan sales during the pandemic might have reached a saturation point, with many potential buyers already owning a caravan.

 

Davan Caravans Limited

Strategic Report for the Year Ended 31 December 2024 (continued)

Davan's Response to the Challenges:

Davan Caravans & Motorhomes, like other dealerships, is taking proactive steps to weather this storm. These measures likely include:

Strategic Pricing and Promotions: Offering competitive pricing and enticing promotions to stimulate sales and reduce inventory levels

Focus on Customer Service: Providing exceptional customer service to retain existing customers and attract new ones through

Exploring Alternative Revenue Streams: Expanding services like repairs, maintenance, and accessories to supplement sales revenue.

Close Collaboration with Manufacturers: Working closely with manufacturers to adjust orders and manage stock levels effective

Highlighting the Benefits of Caravanning and Motorhoming: Emphasizing the value proposition of caravanning and motorhoming - the freedom, flexibility, and connection with nature - to rekindle interest.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£mil

18.0

17.0

Gross profit

%

10.3

14.3

Principal risks and uncertainties

Davan, like many businesses, has faced a complex economic environment. The year 2024 presented significant headwinds, including slow sales driven by general financial uncertainties such as the general election, persistently high interest rates, and the ongoing cost of living crisis. This challenging climate led to industry-wide overstocking, resulting in substantial discounts and squeezed profit margins.

While the start of 2025 has shown a steady improvement, Davan continues to implement its de-stocking strategy, which, while effective, has resulted in lower margins for the time being.

Furthermore, as a provider of products for outdoor leisure, Davan's success is inherently linked to weather patterns. We remain hopeful for favourable weather conditions that will inspire our customers to embrace the open road in their caravans and motorhomes.

Despite these challenges, Davan has maintained a focus on financial strength and liquidity, successfully retaining a small margin even while aggressively de-stocking. We are committed to navigating these risks and uncertainties with a proactive and strategic approach to ensure continued stability and growth.

Future developments

Davan remains committed to optimizing stock levels and margins, ensuring a strong financial foundation. To meet the growing demand for leisure vehicle repairs and servicing, we are expanding our service team and increasing capacity. These improvements, driven by solid profitability, will further strengthen the company and reduce financing costs, allowing us to better serve our customers in the long term.

 

Davan Caravans Limited

Strategic Report for the Year Ended 31 December 2024 (continued)

Financial instruments

Our trading activities, primarily conducted in Sterling and Euros, involve a normal level of exposure to typical financial risks, including price, credit, liquidity, and cash flow. We actively monitor and manage these risks to ensure the stability and profitability of our operations.

Going Concern & Financial Stability

Following a general glut of supply in the caravan and motorhome markets, margins have weakened in the last 12 months. Stock was high at the year end, and management expects this to reduce over the next 12 months. In addition, management’s forecasts show a reduction in stock finance levels over the same period. Management recognises that its reduction in financing levels will add pressure to its cash flow, and forecasts an increase in overdraft finance in the period.

Management believes that it has sufficient head room in its financing facilities should it require additional funding. As such, the accounts have been prepared on a going concern basis.
 

Approved and authorised by the Board on 8 July 2025 and signed on its behalf by:
 

.........................................
Mr G M Davies
Director

 

Davan Caravans Limited

Directors' Report for the Year Ended 31 December 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors of the company

The directors who held office during the year were as follows:

Mr R Burton

Mr M Davies

Mr N Davies

Mr G M Davies

Dividends

There are no recommended dividends for the 2024 year.

Information included in the Strategic Report

In accordance with section 414C of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, those disclosures required to be given in the directors' report by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 are given in the strategic report.

Statement of Directors' responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Davan Caravans Limited

Directors' Report for the Year Ended 31 December 2024 (continued)

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 8 July 2025 and signed on its behalf by:
 


Mr G M Davies
Director

 

Davan Caravans Limited

Independent Auditor's Report to the Members of Davan Caravans Limited

Opinion

We have audited the financial statements of Davan Caravans Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, 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 auditor 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 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Davan Caravans Limited

Independent Auditor's Report to the Members of Davan Caravans Limited (continued)

We have nothing to report in this regard.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 Directors' Report on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors. We communicated identified laws and regulations throughout our team, and remained alert to any indications of non-compliance throughout the audit

 

Davan Caravans Limited

Independent Auditor's Report to the Members of Davan Caravans Limited (continued)

The company is subject to laws and regulations that govern the preparation of the financial statements, including financial reporting legislation, and other companies legislation. The company is also subject to other laws and regulations where the consequences of non-compliance could have a material impact on the amounts or disclosures within the financial statements including employment laws and regulations and certain aspects of companies legislation.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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

Use of our report

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

......................................
Peter Lomax (Senior Statutory Auditor)
For and on behalf of Westcotts (SW) LLP, Statutory Auditor
 Tallford House
38 Walliscote Road
Weston-super-Mare
Somerset
BS23 1LP

8 July 2025

 

Davan Caravans Limited

Statement of Comprehensive Income for the Year Ended 31 December 2024

Note

2024
£

2023
£

Turnover

4

17,980,488

17,034,400

Cost of sales

 

(16,137,411)

(14,596,384)

Gross profit

 

1,843,077

2,438,016

Administrative expenses

 

(1,473,461)

(1,389,283)

Operating profit

6

369,616

1,048,733

Other interest receivable and similar income

7

-

68

Interest payable and similar expenses

8

(296,387)

(205,729)

   

(296,387)

(205,661)

Profit before tax

 

73,229

843,072

Tax on profit

12

(24,815)

(207,204)

Profit for the financial year

 

48,414

635,868

The above results were derived from continuing operations.

 

Davan Caravans Limited

(Registration number: 00593600)
Statement of Financial Position as at 31 December 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

13

1,976,766

2,009,761

Current assets

 

Stocks

14

7,634,541

7,717,879

Debtors

15

548,285

491,849

Cash at bank and in hand

 

24,111

25,944

 

8,206,937

8,235,672

Creditors: Amounts falling due within one year

17

(6,517,754)

(6,628,549)

Net current assets

 

1,689,183

1,607,123

Total assets less current liabilities

 

3,665,949

3,616,884

Creditors: Amounts falling due after more than one year

17

(31,077)

(32,296)

Provisions for liabilities

18

(317,383)

(315,513)

Net assets

 

3,317,489

3,269,075

Capital and reserves

 

Called up share capital

4,000

4,000

Capital redemption reserve

21

1,000

1,000

Revaluation reserve

21

1,614,086

1,636,258

Profit and loss account

21

1,698,403

1,627,817

Shareholders' funds

 

3,317,489

3,269,075

Approved and authorised by the Board on 8 July 2025 and signed on its behalf by:
 


Mr R Burton
Director


Mr G M Davies
Director

 

Davan Caravans Limited

Statement of Changes in Equity for the Year Ended 31 December 2024

Ref

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 January 2024

 

4,000

1,000

1,636,258

1,627,817

3,269,075

Profit for the year

 

-

-

-

48,414

48,414

Other comprehensive income

21

-

-

(22,172)

22,172

-

Total comprehensive income

 

-

-

(22,172)

70,586

48,414

At 31 December 2024

 

4,000

1,000

1,614,086

1,698,403

3,317,489

Ref

Share capital
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 January 2023

 

4,000

1,000

1,658,430

1,129,777

2,793,207

Profit for the year

 

-

-

-

635,868

635,868

Other comprehensive income

21

-

-

(22,172)

22,172

-

Total comprehensive income

 

-

-

(22,172)

658,040

635,868

Dividends

 

-

-

-

(160,000)

(160,000)

At 31 December 2023

 

4,000

1,000

1,636,258

1,627,817

3,269,075

 

Davan Caravans Limited

Statement of Cash Flows for the Year Ended 31 December 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

48,414

635,868

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

57,068

56,682

Profit on disposal of tangible assets

5

(23,552)

-

Finance income

7

-

(68)

Finance costs

8

296,387

205,729

Income tax expense

12

24,815

207,204

 

403,132

1,105,415

Working capital adjustments

 

Decrease/(increase) in stocks

14

83,338

(2,658,788)

(Increase)/decrease in trade debtors

15

(56,436)

430,810

(Decrease)/increase in trade creditors

17

(18,248)

665,363

Cash generated from operations

 

411,786

(457,200)

Income taxes paid

12

(22,945)

(205,277)

Net cash flow from operating activities

 

388,841

(662,477)

Cash flows from investing activities

 

Acquisitions of tangible assets

(30,607)

(40,983)

Proceeds from sale of tangible assets

 

30,086

-

Net cash flows from investing activities

 

(521)

(40,983)

Cash flows from financing activities

 

Interest paid

8

(296,387)

(205,729)

Payments to finance lease creditors

 

(1,157)

(21,595)

Proceeds from new hire purchase agreement

 

-

38,703

Dividends paid

-

(160,000)

Net cash flows from financing activities

 

(297,544)

(348,621)

Net increase/(decrease) in cash and cash equivalents

 

90,776

(1,052,081)

Cash and cash equivalents at 1 January

 

(263,401)

788,680

Cash and cash equivalents at 31 December

16

(172,625)

(263,401)

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Shepherds Way
St Georges
Weston super Mare
North Somerset
BS22 7XA

Principal activity

The principal activity of the company is retail of caravans, motorhomes and caravan and camping equipment.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling which is the functional currency of the entity.

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

2

Accounting policies (continued)

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

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

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 operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold property

2% straight line on building cost/valuation

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

2

Accounting policies (continued)

Fixtures, fittings and equipment

15%-25% reducing balance and 3 years straight line for computer equipment

Motor vehicles

25% reducing balance or lease term

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. .

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of comprehensive income over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

2

Accounting policies (continued)

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.

Lease payments are apportioned between finance costs in the statement of comprehensive income and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

3

Going Concern

Following a general glut of supply in the caravan and motorhome markets, margins have weakened in the last 12 months. Stock was high at the year end, and management expects this to reduce over the next 12 months. In addition, management’s forecasts show a reduction in stock finance levels over the same period. Management recognises that its reduction in financing levels will add pressure to its cash flow, and forecasts an increase in overdraft finance in the period.

Management believes that it has sufficient head room in its financing facilities should it require additional funding. As such, the accounts have been prepared on a going concern basis.
 

4

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

17,961,178

17,005,061

Commissions received

19,310

29,339

17,980,488

17,034,400

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2024
£

2023
£

Gain on disposal of tangible assets

23,552

-

6

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

57,068

56,682

Operating lease expense - other

18,709

19,974

Profit on disposal of property, plant and equipment

(23,552)

-

Foreign currency (gains)/losses

(236)

1,113

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

7

Other interest receivable and similar income

2024
£

2023
£

Other finance income

-

68

8

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

282,387

195,323

Interest on obligations under finance leases and hire purchase contracts

2,365

1,166

Interest expense on other finance liabilities

11,635

9,240

296,387

205,729

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,199,697

1,106,641

Social security costs

111,020

100,466

Pension costs, defined contribution scheme

72,060

66,842

1,382,777

1,273,949

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administrative staff

39

38

Management staff

9

9

48

47

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

200,397

197,317

Contributions paid to money purchase schemes

28,428

28,092

228,825

225,409

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

4

4

In respect of the highest paid director:

2024
£

2023
£

Remuneration

59,362

-

Company contributions to money purchase pension schemes

3,228

-

Disclosure of highest paid director was not required in 2023, as total Director's remuneration did not exceed £200,000.

11

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

24,000

19,000

Other fees to auditors

Taxation compliance services

500

500

All other non-audit services

3,475

-

Other non-audit services

210

195

4,185

695


 

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

12

Taxation

Tax charged/(credited) in the statement of comprehensive income

2024
£

2023
£

Current taxation

UK corporation tax

22,945

209,640

UK corporation tax adjustment to prior periods

-

1,748

22,945

211,388

Deferred taxation

Arising from origination and reversal of timing differences

1,870

(4,184)

Tax expense in the income statement

24,815

207,204

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 23.52%).

The corporation tax rate changed from 19% to 25% on 1 April 2023.

The differences are reconciled below:

2024
£

2023
£

Profit before tax

73,229

843,072

Corporation tax at standard rate

18,307

198,291

Increase in UK and foreign current tax from adjustment for prior periods

-

1,748

Effect of expense not deductible in determining taxable profit (tax loss)

8,783

7,165

Effect of tax losses

(36)

-

Tax decrease from other tax effects

(2,239)

-

Total tax charge

24,815

207,204

The tax decrease from other tax effects of £2,239 relates to the application of the marginal rate relief.

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

12

Taxation (continued)

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated capital allowances

-

(3,402)

Revaluation of tangible assets

-

322,221

Unused tax losses

-

(1,436)

-

317,383

2023

Asset
£

Liability
£

Accelerated capital allowances

-

(5,249)

Revaluation of tangible assets

-

322,221

Unused tax losses

-

(1,459)

-

315,513

13

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2024

1,950,000

377,348

134,369

2,461,717

Additions

-

6,868

23,739

30,607

Disposals

-

-

(53,852)

(53,852)

At 31 December 2024

1,950,000

384,216

104,256

2,438,472

Depreciation

At 1 January 2024

29,673

348,989

73,294

451,956

Charge for the year

29,673

6,891

20,504

57,068

Eliminated on disposal

-

-

(47,318)

(47,318)

At 31 December 2024

59,346

355,880

46,480

461,706

Carrying amount

At 31 December 2024

1,890,654

28,336

57,776

1,976,766

At 31 December 2023

1,920,327

28,359

61,075

2,009,761

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

13

Tangible assets (continued)

Tangible assets held at valuation

The site at Shepherds Way, St Georges was revalued on 10 May 2023 by Stephen and Co Chartered Surveyors, the market value of the site was determined to be £1,950,000. The directors have confirmed the property value of £1,950,000 as at end of year is still appropriate.

In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:

At 31 December 2024

Freehold property
£

Aggregate cost

434,909

Aggregate depreciation

(238,990)

 

195,919

At 31 December 2023

Aggregate cost

434,909

Aggregate depreciation

(230,024)

 

204,885

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Motor vehicles

22,577

35,478

Equipment

-

5,383

22,577

40,861

14

Stocks

2024
£

2023
£

Merchandise

7,634,541

7,717,879

15

Debtors

Current

2024
£

2023
£

Trade debtors

14,513

76,550

Other debtors

67,985

45,088

Prepayments

465,787

370,211

 

548,285

491,849

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

16

Cash and cash equivalents

2024
£

2023
£

Cash on hand

2,016

1,886

Cash at bank

22,095

24,058

24,111

25,944

Bank overdrafts

(196,736)

(289,345)

Cash and cash equivalents in statement of cash flows

(172,625)

(263,401)

17

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

22

202,291

294,838

Trade creditors

 

5,136,697

5,032,977

Amounts due to related parties

25

20,000

20,000

Social security and other taxes

 

512,924

346,418

Other payables

 

94,991

379,839

Accruals

 

550,851

554,477

 

6,517,754

6,628,549

Due after one year

 

Loans and borrowings

22

31,077

32,296

Included within trade creditors is an amount of £5,068,164 (2023: £4,982,817) in respect of stocking loans which are secured on the related stock.

18

Provisions for liabilities

Deferred tax
£

Total
£

At 1 January 2024

315,513

315,513

Increase (decrease) in existing provisions

1,870

1,870

At 31 December 2024

317,383

317,383

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £72,060 (2023 - £66,842).

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

4,000

4,000

4,000

4,000

       

21

Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.

Revaluation reserve

This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.

Capital redemption reserve

This reserve records the nominal value of shares repurchased by the company.

The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:

Revaluation reserve
£

Retained earnings
£

Total
£

Reclassification from revaluation reserve to profit and loss account

(22,172)

22,172

-

The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:

Revaluation reserve
£

Retained earnings
£

Reclassification from revaluation reserve to profit and loss account

(22,172)

22,172

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

22

Loans and borrowings

Non-current loans and borrowings

2024
£

2023
£

Hire purchase contracts

31,077

32,296

Current loans and borrowings

2024
£

2023
£

Bank overdrafts

196,736

289,345

Hire purchase contracts

5,555

5,493

202,291

294,838

Securities

Debenture including Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking both present and future dated 26 November 2007.

First Mortgage dated 02 September 2008 over Life policy number SCOTTISH EQUITABLE Policy reference: L0197079013.

First Legal Charge dated 25 April 2008 over Freehold Property known as Land and Buildings at, Shepherds Way, St Georges, Weston Super Mare.
 

23

Obligations under leases and hire purchase contracts

Finance leases and hire purchase contracts

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

5,590

12,411

Later than one year and not later than five years

31,042

32,079

36,632

44,490

Interest payable on these leases totalled £2,365 (2023: £1,166) - see note 8.

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

23

Obligations under leases and hire purchase contracts (continued)

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

19,977

20,344

Later than one year and not later than five years

29,152

49,129

49,129

69,473

The amount of non-cancellable operating lease payments recognised as an expense during the year was £20,344 (2023 - £19,974).

24

Dividends

2023
£

Dividends paid during the year

160,000

25

Related party transactions

Directors' loan balances

2024

At 1 January 2024
£

At 31 December 2024
£

Directors' loan

(20,000)

(20,000)

2023

At 1 January 2023
£

At 31 December 2023
£

Directors' loan

(20,000)

(20,000)

 

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)

25

Related party transactions (continued)

During the year gross interest was payable to the Directors of £1,600 (2023 £1,750) in respect of loans made to the company.

During the year gross interest was payable to family members of a director of £8,800 (2023: £7,490) in respect of loans made to the company.

At the year-end £57,500 (2023: £147,500) was owed to a family member of a director.

During the year £76,601 (2023: £64,128) was payable in gross wages to close family members of the directors.