These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

G H Davies Machinery Limited is a private company limited by shares incorporated in England and Wales. The registered office is Boreton Farm, Cross Houses, Shrewsbury, Shropshire, SY5 6HJ.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Turnover is recognised at the fair value of the consideration received or receivable services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The average monthly number of persons (including directors) employed by the company during the year was:

The bank loan is subject to a UK Government guarantee. The facility is provided through the Bounce Back

Loan Scheme (BBLS), managed by the British Business Bank on behalf of and with the financial backing of

the Secretary of State for Business, Energy and Industrial Strategy, The BBLS guarantee is provided to the

lender.

The Ordinary Shares carry full rights in the Company with respect to voting, dividends and capital distributions.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 30 December 2024 and of its loss 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.

The ultimate parent company is G H Davies Holdings Limited and its registered office is Green Farm, Condover, Shrewsbury, Shropshire, SY5 7DA.

The ultimate controlling parties are its two directors, Mr E J Davies and Mr J G R Davies who each own 50% of the issued share capital of the parent company.

The parent undertaking of the group for which group accounts are prepared is G H Davies Holdings Limited. Copies of the group financial statements can be obtained from Companies House, Crown Way, Cardiff, CH14 3UZ.

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

There is a legal charge in place dated 22 March 2021 concerning bank loans received by the parent company, G H Davies Holdings Limited.

The bank loans are secured by way of a first legal 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; first floating charge over all assets and undertaking both present and future; and unlimited multilateral guarantee given by the company and its parent.