Registration number:
Davan Caravans Limited
for the Year Ended 31 December 2024
Davan Caravans Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Independent Auditor's Report |
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Statement of Comprehensive Income |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Davan Caravans Limited
Company Information
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Directors |
Mr R Burton Mr M Davies Mr N Davies Mr G M Davies |
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Registered office |
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Auditors |
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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:
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• |
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 |
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Return to International Travel: With the world opening up, families are once again prioritizing overseas holidays, diverting budgets away from domestic caravanning trips. |
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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:
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Strategic Pricing and Promotions: Offering competitive pricing and enticing promotions to stimulate sales and reduce inventory levels |
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Focus on Customer Service: Providing exceptional customer service to retain existing customers and attract new ones through |
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Exploring Alternative Revenue Streams: Expanding services like repairs, maintenance, and accessories to supplement sales revenue. |
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Close Collaboration with Manufacturers: Working closely with manufacturers to adjust orders and manage stock levels effective |
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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:
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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
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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:
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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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
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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:
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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 |
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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:
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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)
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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. |
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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.
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For and on behalf of
38 Walliscote Road
Weston-super-Mare
Somerset
BS23 1LP
Davan Caravans Limited
Statement of Comprehensive Income for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Operating profit |
369,616 |
1,048,733 |
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|
Other interest receivable and similar income |
- |
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
(296,387) |
(205,661) |
||
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
Davan Caravans Limited
(Registration number: 00593600)
Statement of Financial Position as at 31 December 2024
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Note |
2024 |
2023 |
|
|
Fixed assets |
|||
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Tangible assets |
|
|
|
|
Current assets |
|||
|
Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
|
Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
4,000 |
4,000 |
|
|
Capital redemption reserve |
1,000 |
1,000 |
|
|
Revaluation reserve |
1,614,086 |
1,636,258 |
|
|
Profit and loss account |
1,698,403 |
1,627,817 |
|
|
Shareholders' funds |
3,317,489 |
3,269,075 |
Approved and authorised by the
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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 |
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
|
Other comprehensive income |
- |
- |
( |
|
- |
|
|
Total comprehensive income |
- |
- |
( |
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
|
Ref |
Share capital |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total |
|
|
At 1 January 2023 |
|
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
|
|
Other comprehensive income |
- |
- |
( |
|
- |
|
|
Total comprehensive income |
- |
- |
( |
|
|
|
|
Dividends |
- |
- |
- |
( |
( |
|
|
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
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Note |
2024 |
2023 |
|
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Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Profit on disposal of tangible assets |
( |
- |
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Finance income |
- |
( |
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|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
|
|
||
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Working capital adjustments |
|||
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Decrease/(increase) in stocks |
|
( |
|
|
(Increase)/decrease in trade debtors |
( |
|
|
|
(Decrease)/increase in trade creditors |
( |
|
|
|
Cash generated from operations |
|
( |
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
( |
|
|
Cash flows from investing activities |
|||
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
- |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Proceeds from new hire purchase agreement |
- |
38,703 |
|
|
Dividends paid |
- |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 January |
( |
|
|
|
Cash and cash equivalents at 31 December |
(172,625) |
(263,401) |
|
Davan Caravans Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Principal activity
The principal activity of the company is retail of caravans, motorhomes and caravan and camping equipment.
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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)
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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
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)
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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.
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Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Commissions received |
|
|
|
|
|
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
|
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 |
|
- |
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Operating lease expense - other |
|
|
|
Profit on disposal of property, plant and equipment |
( |
- |
|
Foreign currency (gains)/losses |
(236) |
1,113 |
Davan Caravans Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Other finance income |
- |
|
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Administrative staff |
|
|
|
Management staff |
|
|
|
|
|
Davan Caravans Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
228,825 |
225,409 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
|
- |
|
Company contributions to money purchase pension schemes |
|
- |
Disclosure of highest paid director was not required in 2023, as total Director's remuneration did not exceed £200,000.
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Other fees to auditors |
||
|
Taxation compliance services |
|
|
|
All other non-audit services |
|
- |
|
Other non-audit services |
210 |
195 |
|
|
|
Davan Caravans Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Taxation |
Tax charged/(credited) in the statement of comprehensive income
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
- |
|
|
22,945 |
211,388 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
|
Tax expense in the income statement |
|
|
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
The corporation tax rate changed from 19% to 25% on 1 April 2023.
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Increase in UK and foreign current tax from adjustment for prior periods |
- |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Effect of tax losses |
( |
- |
|
Tax decrease from other tax effects |
( |
- |
|
Total tax charge |
|
|
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 |
- |
( |
|
Revaluation of tangible assets |
- |
|
|
Unused tax losses |
- |
( |
|
- |
|
|
2023 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
( |
|
Revaluation of tangible assets |
- |
|
|
Unused tax losses |
- |
( |
|
- |
|
|
Tangible assets |
|
Land and buildings |
Fixtures and fittings |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Additions |
- |
|
|
|
|
Disposals |
- |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
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 |
|
Stocks |
|
2024 |
2023 |
|
|
Merchandise |
|
|
|
Debtors |
|
Current |
2024 |
2023 |
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
Davan Caravans Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
|
|
Bank overdrafts |
( |
( |
|
Cash and cash equivalents in statement of cash flows |
(172,625) |
(263,401) |
|
Creditors |
|
Note |
2024 |
2023 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to related parties |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other payables |
|
|
|
|
Accruals |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
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.
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase (decrease) in existing provisions |
|
|
|
At 31 December 2024 |
|
|
|
|
||
Davan Caravans Limited
Notes to the Financial Statements for the Year Ended 31 December 2024 (continued)
|
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 £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
4,000 |
|
4,000 |
|
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 |
( |
|
- |
|
|
|||
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)
|
Loans and borrowings |
Non-current loans and borrowings
|
2024 |
2023 |
|
|
Hire purchase contracts |
|
|
Current loans and borrowings
|
2024 |
2023 |
|
|
Bank overdrafts |
|
|
|
Hire purchase contracts |
|
|
|
|
|
|
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.
|
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 |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
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 |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Dividends |
|
2023 |
|
|
Dividends paid during the year |
160,000 |
|
Related party transactions |
|
Directors' loan balances |
|
2024 |
At 1 January 2024 |
At 31 December 2024 |
|
Directors' loan |
( |
( |
|
2023 |
At 1 January 2023 |
At 31 December 2023 |
|
Directors' loan |
( |
( |
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.