REGISTERED NUMBER: 04171564 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2024 TO 31 DECEMBER 2024

FOR

ROBERT DAVIES MACHINERY LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

Mrs M Davies

Mrs E M Wynne

A J Wynne

SECRETARY:

Mrs M Davies

REGISTERED OFFICE:

Oakstead House

Alderbury Road

Ford

Shrewsbury

Shropshire

SY5 9NA

REGISTERED NUMBER:

04171564 (England and Wales)

AUDITORS:

D.R.E. & Co. (Audit) Limited

7 Lower Brook Street

Oswestry

Shropshire

SY11 2HG

The directors present their strategic report for the period 1 April 2024 to 31 December 2024.

REVIEW OF BUSINESS

The company monitors its performance using key performance indicators. The company considers its main key performance indicators to be; sales growth, gross margin percentage. Performance on these measures is in line with expectations of the board.

31/12/2024 (£)

31/03/2024 (£)

% change

Turnover

8,790,255

12,588,905

(30.2%)

Gross margin

19%

22%

(3%)

Operating profit

7.5%

11%

(3.5%)

The decrease in turnover above is largely attributed to the fact the current period is only a 9 month period in comparison to a 12 month period. March is one of Robert Davies Machinery Ltd's busiest periods, and is not included in the current period's figures due to the change in reporting date. It is therefore not relevant to pro-rata either the previous year or current periods figure for comparative purposes.

The gross profit margin varies each year, and fluctuations are expected, as it often is impacted by the split of new and used machinery sales, as well as other factors such as the sales generated by the servicing department.

The industry average for operating profit percentage is 1%, so the company is performing well above expectations in its sector.

The directors expect the general level of activity to continue for the foreseeable future.

PRINCIPAL RISKS AND UNCERTAINTIES

The most significant risk to the company is competition. The directors try to mitigate this risk by providing machinery of high quality and providing excellent customer service. They ensure stocks are kept at reasonable levels to meet the demand when customers require certain machinery at short notice during certain times of year given the industry is typically seasonal.

An additional risk to the company is the volatility of the market value of used machinery. The second hand market often fluctuates due to global economic conditions, the most recent being the shortage of semi conductors in the which slowed new machine productions and increased used machine markets. The used machinery market is now returning to normal. Therefore, there is a possibility of used machinery being purchased for over and above its actual resalable value. The directors mitigate this risk by having extensive knowledge of the agricultural machinery industry, allowing them to recognise current trends within the market.

ON BEHALF OF THE BOARD:

Mrs M Davies - Director

22 September 2025

The directors present their report with the financial statements of the company for the period 1 April 2024 to 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of resale and maintenance of farm machinery and associated products.

DIVIDENDS

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

FUTURE DEVELOPMENTS

The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. With careful focus on appropriate diversification and development of new products, as well as continuing review of the state of the market and the activities of competitors, the directors are confident in the company's ability to maintain and build on this position, albeit with cautious growth expectations.

DIRECTORS

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

Mrs M Davies

Mrs E M Wynne

A J Wynne

DISCLOSURE IN THE STRATEGIC REPORT

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

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

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

ON BEHALF OF THE BOARD:

Mrs M Davies - Director

22 September 2025

Opinion

We have audited the financial statements of Robert Davies Machinery Limited (the 'company') for the period ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 period then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

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

- we identified the laws and regulations applicable to the company through discussions with directors and other

management, and from our commercial knowledge and experience of the client's operating sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment, environmental and health and safety legislation;

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

management; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to

instances of non-compliance throughout the audit.

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

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

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

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

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

- tested journal entries to identify unusual transactions;

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

- investigated the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

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

- reviewing correspondence with HMRC.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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

Aled Davies F.C.C.A (Senior Statutory Auditor)

for and on behalf of D.R.E. & Co. (Audit) Limited

7 Lower Brook Street

Oswestry

Shropshire

SY11 2HG

22 September 2025

TURNOVER

4

8,790,255

12,588,905

Cost of sales

(7,120,296

)

(9,828,810

)

GROSS PROFIT

1,669,959

2,760,095

Distribution costs

(20,494

)

(84,575

)

Administrative expenses

(986,682

)

(1,321,418

)

662,783

1,354,102

Other operating income

2,358

3,220

OPERATING PROFIT

6

665,141

1,357,322

Interest receivable and similar income

-

11,888

PROFIT BEFORE TAXATION

665,141

1,369,210

Tax on profit

7

(168,267

)

(340,101

)

PROFIT FOR THE FINANCIAL PERIOD

496,874

1,029,109

PROFIT FOR THE PERIOD

496,874

1,029,109

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

496,874

1,029,109

FIXED ASSETS

Tangible assets

8

177,803

180,149

CURRENT ASSETS

Stocks

9

4,976,129

5,372,263

Debtors

10

4,399,999

4,963,551

Cash at bank

2,193,625

1,227,511

11,569,753

11,563,325

CREDITORS

Amounts falling due within one year

11

2,719,795

3,212,528

NET CURRENT ASSETS

8,849,958

8,350,797

TOTAL ASSETS LESS CURRENT LIABILITIES

9,027,761

8,530,946

PROVISIONS FOR LIABILITIES

13

10,191

10,250

NET ASSETS

9,017,570

8,520,696

CAPITAL AND RESERVES

Called up share capital

14

100,000

100,000

Retained earnings

15

8,917,570

8,420,696

SHAREHOLDERS' FUNDS

9,017,570

8,520,696

The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2025 and were signed on its behalf by:

Mrs M Davies - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2023

100,000

7,391,587

7,491,587

Changes in equity

Total comprehensive income

-

1,029,109

1,029,109

Balance at 31 March 2024

100,000

8,420,696

8,520,696

Changes in equity

Total comprehensive income

-

496,874

496,874

Balance at 31 December 2024

100,000

8,917,570

9,017,570

Cash flows from operating activities

Cash generated from operations

1

999,836

(787,518

)

Tax paid

-

(23,977

)

Net cash from operating activities

999,836

(811,495

)

Cash flows from investing activities

Purchase of tangible fixed assets

(54,556

)

(128,258

)

Interest received

-

11,888

Net cash from investing activities

(54,556

)

(116,370

)

Cash flows from financing activities

Amount introduced by directors

20,834

-

Net cash from financing activities

20,834

-

Increase/(decrease) in cash and cash equivalents

966,114

(927,865

)

Cash and cash equivalents at beginning of period

2

1,227,511

2,155,376

Cash and cash equivalents at end of period

2

2,193,625

1,227,511

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

1.4.24

to

Year Ended

31.12.24

31.3.24

£

£

Profit before taxation

665,141

1,369,210

Depreciation charges

56,902

60,233

Loss on disposal of fixed assets

-

1,620

Finance income

-

(11,888

)

722,043

1,419,175

Decrease/(increase) in stocks

396,134

(2,113,276

)

Decrease in trade and other debtors

563,552

548,687

Decrease in trade and other creditors

(681,893

)

(642,104

)

Cash generated from operations

999,836

(787,518

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Period ended 31 December 2024

31.12.24

1.4.24

£

£

Cash and cash equivalents

2,193,625

1,227,511

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

1,227,511

2,155,376

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

1,227,511

966,114

2,193,625

1,227,511

966,114

2,193,625

Total

1,227,511

966,114

2,193,625

1.	STATUTORY INFORMATION

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

2.	STATEMENT OF COMPLIANCE

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

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The presentation currency is sterling (£) rounded to the nearest £1.

The financial statements are for the individual entity only.

Significant judgements and estimates

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

The company provides against the stock it holds based on the age profile of the units held utilising management's past experience and anticipated future market trends. See note 9 for the net carrying amount of stock.

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 10 for the net carrying amount of debtors.

Turnover

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property

-

in accordance with the property

Improvements to property

-

2% on cost

Plant and machinery

-

25% on reducing balance

Solar panels

-

5% on reducing balance

Motor vehicles

-

33% on reducing balance

Computer equipment

-

25% on reducing balance

Stocks

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

4.

TURNOVER

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

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

Period

1.4.24

to

Year Ended

31.12.24

31.3.24

£

£

Sale of goods

8,173,249

11,956,437

Servicing

617,006

632,468

8,790,255

12,588,905

5.	EMPLOYEES AND DIRECTORS

Period

1.4.24

to

Year Ended

31.12.24

31.3.24

£

£

Wages and salaries

536,495

706,366

Social security costs

37,895

82,604

Other pension costs

9,167

17,394

583,557

806,364

The average number of employees during the period was as follows:

Period

1.4.24

to

Year Ended

31.12.24

31.3.24

Directors

3

3

Workshop and Parts

11

11

Sales and Admin

5

5

19

19

Period

1.4.24

to

Year Ended

31.12.24

31.3.24

£

£

Directors' remuneration

106,875

142,500

Directors' pension contributions to money purchase schemes

1,857

2,476

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

Money purchase schemes

2

2

6.	OPERATING PROFIT

The operating profit is stated after charging:

Period

1.4.24

to

Year Ended

31.12.24

31.3.24

£

£

Hire of plant and machinery

20,494

84,575

Other operating leases

24,250

62,000

Depreciation - owned assets

56,902

60,233

Loss on disposal of fixed assets

-

1,620

Auditors' remuneration

16,150

15,500

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

Period

1.4.24

to

Year Ended

31.12.24

31.3.24

£

£

Current tax:

UK corporation tax

168,326

344,206

Deferred tax

(59

)

(4,105

)

Tax on profit

168,267

340,101

Reconciliation of total tax charge included in profit and loss

The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below:

Period

1.4.24

to

Year Ended

31.12.24

31.3.24

£

£

Profit before tax

665,141

1,369,210

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

166,285

342,303

Effects of:

Expenses not deductible for tax purposes

1,982

2,047

Capital allowances in excess of depreciation

-

(144

)

Depreciation in excess of capital allowances

59

-

Deferred tax

(59

)

(4,105

)

Total tax charge

168,267

340,101