REGISTERED NUMBER: OC355457 (England and Wales)

DAVID DAVIES & COMPANY LLP

REPORT OF THE MEMBERS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Page

General Information

1

Report of the Members

2

Report of the Independent Auditors

4

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Reconciliation of Members' Interests

11

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DESIGNATED MEMBERS:

Mr A C Davies

Mr R D Davies

Mrs M A K Davies

Mr M J Davies

David Davies Resources Ltd

REGISTERED OFFICE:

Newhouse Farm

Minsterley

Shrewsbury

Shropshire

SY5 0HR

REGISTERED NUMBER:

OC355457 (England and Wales)

ACCOUNTANTS:

Morgans

Chartered Accountants

Clive House

Severn Road

Welshpool

Powys

SY21 7AL

The members present their report with the financial statements of the LLP for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the LLP in the year under review was that of poultry and arable farming.

DESIGNATED MEMBERS

The designated members during the year under review were:

Mr A C Davies

Mr R D Davies

Mrs M A K Davies

Mr M J Davies

David Davies Resources Ltd

RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS

The profit for the year before members' remuneration and profit shares was £1,254,325 (2024 - £489,357 profit).

MEMBERS' INTERESTS

During the period members received drawings as agreed by the members.

Profits are determined, allocated and divided as agreed by the members.

STATEMENT OF MEMBERS' RESPONSIBILITIES

The members are responsible for preparing the Report of the Members and the financial statements in accordance with applicable law and regulations.

Legislation applicable to limited liability partnerships requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under legislation applicable to limited liability partnerships the members 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 LLP and of the profit or loss of the LLP for that period. In preparing these financial statements, the members 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 LLP will continue in business.

The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and enable them to ensure that the financial statements comply with the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. They are also responsible for safeguarding the assets of the LLP 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 members are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the LLP's auditors are unaware, and each member has taken all the steps that he or she ought to have taken as a member in order to make himself or herself aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.

AUDITORS

The auditors , Xeinadin Audit Limited , will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE MEMBERS:

Mr A C Davies - Designated member

23 December 2025

Opinion

We have audited the financial statements of David Davies & Company LLP (the 'LLP') for the year ended 31 March 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Reconciliation of Members' Interests, 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 LLP's affairs as at 31 March 2025 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 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008.

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 LLP 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 members' 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 LLP'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 members with respect to going concern are described in the relevant sections of this report.

Other information

The members are responsible for the other information. The other information comprises the information in the Report of the Members, 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.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 as applied to LLPs 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

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

Responsibilities of members

As explained more fully in the Statement of Members' Responsibilities set out on page two, the members 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 members 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 members are responsible for assessing the LLP'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 members either intend to liquidate the LLP 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:

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

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing minutes of meetings of those charged with governance;

- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

- Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the LLP is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the LLP is subject to many other laws and regulations where the consequence of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the LLP's license to operate. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

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

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit."

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 LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP'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 LLP and the LLP's members as a body, for our audit work, for this report, or for the opinions we have formed.

Timothy Mitchell BSc FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

St Andrews House

Yale Business Village

Ellice Way

Wrexham

LL13 7YL

23 December 2025

TURNOVER

14,710,742

13,983,196

Cost of sales

10,390,185

11,127,120

GROSS PROFIT

4,320,557

2,856,076

Administrative expenses

2,970,037

2,261,173

OPERATING PROFIT

4

1,350,520

594,903

Interest payable and similar expenses

5

96,195

105,546

PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES

1,254,325

489,357

PROFIT FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES

1,254,325

489,357

Members' remuneration charged as an expense

6

(1,254,325

)

(489,357

)

PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS

-

-

PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS

-

-

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

-

-

FIXED ASSETS

Tangible assets

7

3,064,143

3,161,444

CURRENT ASSETS

Stocks

8

1,282,816

1,503,668

Debtors

9

2,230,095

2,192,562

Cash at bank

1,886,687

363,105

5,399,598

4,059,335

CREDITORS

Amounts falling due within one year

10

1,355,342

1,405,987

NET CURRENT ASSETS

4,044,256

2,653,348

TOTAL ASSETS LESS CURRENT LIABILITIES

7,108,399

5,814,792

CREDITORS

Amounts falling due after more than one year

11

2,071,166

2,071,466

NET ASSETS ATTRIBUTABLE TO MEMBERS

5,037,233

3,743,326

LOANS AND OTHER DEBTS DUE TO MEMBERS

15

5,037,233

3,743,326

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

15

5,037,233

3,743,326

The financial statements were approved by the members of the LLP and authorised for issue on 23 December 2025 and were signed by:

Mr A C Davies - Designated member

EQUITY

DEBT

TOTAL

Members'

Loans and other debts due to

MEMBERS'

other

members less any amounts due

INTERESTS

interests

from members in debtors

Other

Other

reserves

amounts

Total

£

£

£

Amount due to members

3,743,326

Amount due from members

-

Balance at 1 April 2024

-

3,743,326

3,743,326

Members' remuneration charged as an expense, including employment and retirement benefit costs

-

1,254,325

1,254,325

Profit for the financial year available for discretionary division among members

-

-

-

Members' interests after profit for the year

-

4,997,651

4,997,651

Introduced by members

-

903,844

903,844

Drawings on account and distributions of profit

-

(864,262

)

(864,262

)

Amount due to members

5,037,233

Amount due from members

-

Balance at 31 March 2025

-

5,037,233

5,037,233

EQUITY

DEBT

TOTAL

Members'

Loans and other debts due to

MEMBERS'

other

members less any amounts due

INTERESTS

interests

from members in debtors

Other

Other

reserves

amounts

Total

£

£

£

Amount due to members

4,384,147

Amount due from members

(735,997

)

Balance at 1 April 2023

-

3,648,150

3,648,150

Members' remuneration charged as an expense, including employment and retirement benefit costs

-

489,357

489,357

Profit for the financial year available for discretionary division among members

-

-

-

Members' interests after profit for the year

-

4,137,507

4,137,507

Introduced by members

-

1,311,801

1,311,801

Drawings on account and distributions of profit

-

(1,705,982

)

(1,705,982

)

Amount due to members

3,743,326

Amount due from members

-

Balance at 31 March 2024

-

3,743,326

3,743,326

Cash flows from operating activities

Cash generated from operations

2

2,202,572

1,138,260

Interest paid

(96,195

)

(105,546

)

Net cash from operating activities

2,106,377

1,032,714

Cash flows from investing activities

Purchase of tangible fixed assets

(899,261

)

(263,304

)

Sale of tangible fixed assets

204,686

26,100

Net cash from investing activities

(694,575

)

(237,204

)

Transactions with members and

former members

Payments to members

(864,262

)

(1,705,982

)

Contributions by members

903,844

1,311,801

39,582

(394,181

)

Cash flows from other financing activities

New loans in year

293,635

-

Capital repayments in year

(221,437

)

(212,397

)

72,198

(212,397

)

Net cash from financing activities

111,780

(606,578

)

Increase in cash and cash equivalents

1,523,582

188,932

Cash and cash equivalents at beginning of year

3

363,105

174,173

Cash and cash equivalents at end of year

3

1,886,687

363,105

1.	CLASSIFICATION OF SHARE OF PROFITS IN THE CASH FLOW STATEMENT

The division of profits is discretionary.

2.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit for the financial year available for discretionary division among members

-

-

Members' remuneration charged as an expense

1,254,325

489,357

Depreciation charges

506,590

571,255

Loss/(profit) on disposal of fixed assets

285,286

(10,881

)

Finance costs

96,195

105,546

2,142,396

1,155,277

Decrease in stocks

220,852

1,237,008

Increase in trade and other debtors

(37,533

)

(639,710

)

Decrease in trade and other creditors

(123,143

)

(614,315

)

Cash generated from operations

2,202,572

1,138,260

3.	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:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

1,886,687

363,105

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

363,105

174,173

4.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.4.24

Cash flow

changes

At 31.3.25

£

£

£

£

Net cash

Cash at bank

363,105

1,523,582

1,886,687

363,105

1,523,582

1,886,687

Debt

Finance leases

(63,833

)

(255,335

)

-

(319,168

)

Debts falling due

within 1 year

(179,064

)

(11,856

)

-

(190,920

)

Debts falling due

after 1 year

(2,045,933

)

194,993

-

(1,850,940

)

(2,288,830

)

(72,198

)

-

(2,361,028

)

Net debt (before

members' debt)

(1,925,725

)

1,451,384

-

(474,341

)

Loans and other debts

due to members

Other amounts

due to members

(3,743,326

)

(39,582

)

(1,254,325

)

(5,037,233

)

Net debt

(5,669,051

)

1,411,802

(1,254,325

)

(5,511,574

)

1.	STATUTORY INFORMATION

David Davies & Company LLP is registered in England and Wales. The LLP's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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 requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships. The financial statements have been prepared under the historical cost convention.

Turnover

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

The LLP recognises revenue when the amount of the revenue can be reliably measured, it is probable that future economic benefits can be reliably measured, and it is probable that future economic benefits will flow to the entity. Revenue from the sale of goods is recognised when the risks and rewards of ownership are transferred to the customer. Revenue from services is recognised in the accounting periods in which the services are rendered.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Building improvements

-

at varying rates on cost

Plant, equipment & motors

-

at variable rates on reducing balance

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of the finished goods comprises of direct materials and 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 the profit and loss. Agricultural produce harvested from biological assets are measured at the point of harvest at the lower of cost and estimated selling price less costs to complete.

The biological assets comprise of livestock, growing and harvested crops

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Members' remuneration

Profits attributable to members are determined, allocated and divided between members as agreed between them.

3.	EMPLOYEE INFORMATION

The average monthly number of persons employed by the company during the year was:

2025

2024

Total

-

-

The key management personnel comprise of the individual members.

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2025

2024

£

£

Depreciation - owned assets

462,551

545,922

Depreciation - assets on hire purchase contracts

44,039

25,332

Loss/(profit) on disposal of fixed assets

285,286

(10,881

)

Auditors' remuneration -

audit services only

9,200

8,400

Cost of stocks

10,390,185

11,127,120

All turnover arose within the United Kingdom. The turnover within the UK includes grants of £147,562 (2024 : £147,109).

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank charges & interest

1,885

2,916

Bank loan interest

94,310

102,630

96,195

105,546

6.	INFORMATION IN RELATION TO MEMBERS

2025

2024

£

£

Members' remuneration charged as an expense

Automatic division of profit

1,254,325

489,357

2025

2024

£

£

The amount of profit attributable to the member with the largest entitlement was

895,140

229,442

2025

2024

The average number of members during the year was

5

5

7.	TANGIBLE FIXED ASSETS

Plant,

Building

equipment

improvements

& motors

Totals

£

£

£

COST

At 1 April 2024

3,712,040

12,494,465

16,206,505

Additions

-

899,261

899,261

Disposals

-

(5,166,528

)

(5,166,528

)

At 31 March 2025

3,712,040

8,227,198

11,939,238

DEPRECIATION

At 1 April 2024

2,473,119

10,571,942

13,045,061

Charge for year

192,374

314,216

506,590

Eliminated on disposal

-

(4,676,556

)

(4,676,556

)

At 31 March 2025

2,665,493

6,209,602

8,875,095

NET BOOK VALUE

At 31 March 2025

1,046,547

2,017,596

3,064,143

At 31 March 2024

1,238,921

1,922,523

3,161,444

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant,

equipment

& motors

£

COST

At 1 April 2024

230,000

Additions

517,048

At 31 March 2025

747,048

DEPRECIATION

At 1 April 2024

114,599

Charge for year

44,039

At 31 March 2025

158,638

NET BOOK VALUE

At 31 March 2025

588,410

At 31 March 2024

115,401