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Registration number: 00593600

Davan Caravans Limited
Annual Report and Financial Statements
for the Year Ended 31 December 2025

Davan Caravans Limited

Contents

Company Information | 1
Strategic Report | 2 to 5
Directors' Report | 6 to 7
Independent Auditor's Report | 8 to 10
Statement of Comprehensive Income | 11
Statement of Financial Position | 12
Statement of Changes in Equity | 13
Statement of Cash Flows | 14
Notes to the Financial Statements | 15 to 29

Davan Caravans Limited

Company Information

Directors | Mr R Burton Mr M Davies Mr N Davies Mr G M Davies

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

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

Davan Caravans Limited

Strategic Report for the Year Ended 31 December 2025

The directors present their strategic report for the year ended 31 December 2025.

Fair review of the business

1. Executive Summary
Over the past two financial years, Davan Caravans Ltd has undertaken a deliberate and disciplined strategy to strengthen its financial position, reduce liabilities, and restore tighter operational control. The key objective of this strategy was to reduce borrowing, lower interest costs, and bring inventory levels back into alignment with realistic market demand.
A loss was made in the year of £225,348, the size of this loss was increased due to the strategy in the year of reducing inventory levels. This loss was lessened also however by the gain on revaluation of tangible assets of £74,101.
The principal activity of the company remains the retail of caravans, motorhomes and caravan and camping equipment.
2. Strategic Objective
The primary strategic objective implemented over the last two financial years was to strengthen the financial foundations of the business by focusing on three key areas:
• Reduction of borrowings
• Reduction of stock levels
• Reduction of interest costs
This objective was pursued through a controlled but aggressive inventory reduction programme, supported by the strategic deployment of retained profits.
The intention behind this strategy was not only to reduce financial liabilities but also to improve liquidity, strengthen the balance sheet, and position the business for long-term sustainable profitability.

3. Financial Performance and Key Improvements
3.1 Stock Reduction
Inventory management has been a central focus of the company’s strategy. At 31 December 2024, total stock stood at: £7,634,541. Through targeted pricing strategies and accelerated stock turnover, total stock was reduced to £6,568,969 at 31 December 2025. The reduction in inventory has improved liquidity, reduced capital tied up in stock, and lowered the risk associated with holding ageing vehicles.
3.2 Borrowing and Bank Overdraft Reduction
The company has made significant progress in reducing its reliance on short-term borrowing.. Bank overdraft levels were reduced from £196,736 at 31 December 2024 to £17,713 at 31 December 2025. This substantial reduction demonstrates the success of the stock reduction strategy and improved cash flow management. Lower borrowing levels directly reduce interest costs and strengthen the company’s financial resilience.

Davan Caravans Limited

Strategic Report for the Year Ended 31 December 2025 (continued)

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

Financial KPIs | Unit | 2025 | 2024
Turnover | £mil | 16.9 | 18.0
Gross profit | % | 8.2 | 10.3

4. Strategic Use of Retained Profits
The retained profit and loss account reserves was effectively used as “ammunition” to facilitate aggressive discounting where required in order to accelerate sales and release capital tied up in inventory.
While this approach reduced short-term margins on certain vehicles, the longer-term benefits include:
• Reduced financing costs
• Lower interest payments
• Improved cash flow
• Reduced exposure to market volatility
• Stronger balance sheet position
This strategic deployment of retained earnings demonstrates prudent financial management and a long-term focus on business sustainability.

5. Competitive Landscape
5.1 Industry Consolidation
The caravan retail sector has experienced a degree of consolidation over the past year. Several competitors have either:
• Entered voluntary liquidation, or
• Ceased trading operations.
This reduction in the number of active competitors may create favourable conditions for remaining retailers.
For Davan Caravans Ltd, this presents several potential advantages:
• Increased market share
• Reduced price competition in certain segments
• Improved sales opportunities
• Greater potential for retained profitability.
A smaller competitive landscape may allow the company to strengthen its position within the regional market.

Davan Caravans Limited

Strategic Report for the Year Ended 31 December 2025 (continued)

6. External Market Factors

Global political instability continues to influence consumer confidence and travel decisions.
Periods of international uncertainty can lead to increased reluctance among some consumers to travel abroad, particularly by air.
Historically, such conditions have supported the domestic holiday market in the UK.
Caravanning and motorhome holidays provide an attractive alternative for consumers seeking:
• Greater control over travel plans
• Reduced exposure to international travel disruption
• Flexible domestic holiday options.
As a result, global instability may indirectly generate a new wave of customers entering the caravanning market. However, we recognise the potential negative impact on demand of the instability also.

7. Strategic Priorities for the Next Trading Period

1. Maintain Controlled Stock Levels
Continue careful management of inventory levels to prevent a return to overstocking.
2. Preserve Financial Discipline
Maintain reduced borrowing levels and continue prioritising strong cash flow management.
3. Capitalise on Reduced Competition
Actively pursue opportunities to capture additional market share as competitor numbers decline.
4. Target New Customers
Focus marketing efforts on customers seeking alternatives to international travel.
5. Protect Profitability
Balance competitive pricing with sustainable margins to ensure continued financial stability.

8. Outlook

Davan Caravans Ltd has made substantial progress in strengthening its financial position between 2024 and 2025.
The successful reduction in stock level and significant decrease in bank overdraft demonstrate the effectiveness of the company’s strategic approach.
At the same time, structural changes within the competitive landscape and potential shifts in consumer travel behaviour present new opportunities for growth.
If managed effectively, these factors could allow the company to increase both market share and retained profitability in the coming years.

Davan Caravans Limited

Strategic Report for the Year Ended 31 December 2025 (continued)

9. Conclusion

The strategic decisions implemented over the past two years have positioned Davan Caravans Ltd on a significantly stronger financial footing.
By reducing debt, lowering inventory levels, and improving liquidity, the company has strengthened its resilience and created a stable platform for future growth.
Combined with favourable industry developments and evolving travel trends, Davan Caravans Ltd is well placed to build on this progress and pursue sustainable long-term profitability.

Approved and authorised by the Board on 2 April 2026 and signed on its behalf by:

......................................... Mr N Davies Director

Davan Caravans Limited

Directors' Report for the Year Ended 31 December 2025

The directors present their report and the financial statements for the year ended 31 December 2025.

Directors of the company

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

Mr R Burton

Mr M Davies

Mr N Davies

Mr G M Davies

Dividends

There are no recommended dividends for the 2025 year.

Information included in the Strategic Report

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

Statement of Directors' responsibilities

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

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

• | select suitable accounting policies and apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

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

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

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

Davan Caravans Limited

Directors' Report for the Year Ended 31 December 2025 (continued)

Disclosure of information to the auditors

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

Approved and authorised by the Board on 2 April 2026 and signed on its behalf by:

Mr N Davies Director

Davan Caravans Limited

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

Opinion

We have audited the financial statements of Davan Caravans Limited (the 'company') for the year ended 31 December 2025, 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 2025 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.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

Davan Caravans Limited

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

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

• | the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

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

• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
• | the financial statements are not in agreement with the accounting records and returns; or
• | certain disclosures of directors' remuneration specified by law are not made; or
• | we have not received all the information and explanations we require for our audit.

Responsibilities of directors

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

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

Auditor Responsibilities for the audit of the financial statements

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

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

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

Davan Caravans Limited

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

• | The company is subject to laws and regulations that govern the preparation of the financial statements, including financial reporting legislation, and other companies legislation. The company is also subject to other laws and regulations where the consequences of non-compliance could have a material impact on the amounts or disclosures within the financial statements including employment laws and regulations, electrical waste regulations and certain aspects of companies legislation.
• | Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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

Use of our report

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

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

2 April 2026

Davan Caravans Limited

Statement of Comprehensive Income for the Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Turnover | 4 | 16,887,211 | 17,980,488
Cost of sales |  | (15,496,150) | (16,137,411)
Gross profit |  | 1,391,061 | 1,843,077
Administrative expenses |  | (1,511,991) | (1,473,461)
Operating (loss)/profit | 6 | (120,930) | 369,616
Interest payable and similar expenses | 7 | (268,684) | (296,387)
(Loss)/profit before tax |  | (389,614) | 73,229
Tax on (loss)/profit | 11 | 90,165 | (24,815)
(Loss)/profit for the financial year |  | (299,449) | 48,414
Deferred tax on revaluation of property | 12 | 2,500 | -
Revaluation of property | 12 | 71,601 | -
Total comprehensive income for the year |  | (225,348) | 48,414

The above results were derived from continuing operations.

Davan Caravans Limited

(Registration number: 00593600)
Statement of Financial Position as at 31 December 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 12 | 1,996,189 | 1,976,766
Current assets |  |  |
Stocks | 13 | 6,568,969 | 7,634,541
Debtors | 14 | 719,722 | 548,285
Cash at bank and in hand |  | 24,833 | 24,111
|  | 7,313,524 | 8,206,937
Creditors: Amounts falling due within one year | 16 | (5,969,909) | (6,517,754)
Net current assets |  | 1,343,615 | 1,689,183
Total assets less current liabilities |  | 3,339,804 | 3,665,949
Creditors: Amounts falling due after more than one year | 16 | - | (31,077)
Provisions for liabilities | 17 | (247,663) | (317,383)
Net assets |  | 3,092,141 | 3,317,489
Capital and reserves |  |  |
Called up share capital |  | 4,000 | 4,000
Capital redemption reserve | 20 | 1,000 | 1,000
Revaluation reserve | 20 | 1,591,914 | 1,614,086
Profit and loss account | 20 | 1,495,227 | 1,698,403
Shareholders' funds |  | 3,092,141 | 3,317,489

Approved and authorised by the Board on 2 April 2026 and signed on its behalf by:

Mr M Davies Director
Mr N Davies Director

Davan Caravans Limited

Statement of Changes in Equity for the Year Ended 31 December 2025

| Ref | Share capital £ | Capital redemption reserve £ | Revaluation reserve £ | Profit and loss account £ | Total £
At 1 January 2025 |  | 4,000 | 1,000 | 1,614,086 | 1,698,403 | 3,317,489
Loss for the year |  | - | - | - | (299,449) | (299,449)
Reclassification from revaluation reserve to profit and loss account | 20 | - | - | (22,172) | 22,172 | -
Deferred tax on revaluation of property | 12 | - | - | 2,500 | - | 2,500
Revaluation of property | 12 | - | - | 71,601 | - | 71,601
Total comprehensive income |  | - | - | 51,929 | (277,277) | (225,348)
At 31 December 2025 |  | 4,000 | 1,000 | 1,666,015 | 1,421,126 | 3,092,141

| Ref | Share capital £ | Capital redemption reserve £ | Revaluation reserve £ | Profit and loss account £ | Total £
At 1 January 2024 |  | 4,000 | 1,000 | 1,636,258 | 1,627,817 | 3,269,075
Profit for the year |  | - | - | - | 48,414 | 48,414
Other comprehensive income | 20 | - | - | (22,172) | 22,172 | -
Total comprehensive income |  | - | - | (22,172) | 70,586 | 48,414
At 31 December 2024 |  | 4,000 | 1,000 | 1,614,086 | 1,698,403 | 3,317,489

Davan Caravans Limited

Statement of Cash Flows for the Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Cash flows from operating activities
(Loss)/profit for the year |  | (225,348) | 48,414
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 6 | 54,924 | 57,068
Profit on disposal of tangible assets | 5 | - | (23,552)
Finance costs | 7 | 268,684 | 296,387
Income tax expense | 11 | (90,165) | 24,815
Revaluation of tangible assets | 12 | (74,101) | -
|  | (66,006) | 403,132
Working capital adjustments |  |  |
Decrease in stocks | 13 | 1,065,572 | 83,338
Increase in trade debtors | 14 | (148,492) | (56,436)
Decrease in trade creditors | 16 | (392,041) | (18,248)
Cash generated from operations |  | 459,033 | 411,786
Income taxes paid | 11 | - | (22,945)
Net cash flow from operating activities |  | 459,033 | 388,841
Cash flows from investing activities |  |  |
Acquisitions of tangible assets |  | (2,746) | (30,607)
Proceeds from sale of tangible assets |  | - | 30,086
Net cash flows from investing activities |  | (2,746) | (521)
Cash flows from financing activities |  |  |
Interest paid | 7 | (268,684) | (296,387)
Payments to finance lease creditors |  | (7,858) | (1,157)
Net cash flows from financing activities |  | (276,542) | (297,544)
Net increase in cash and cash equivalents |  | 179,745 | 90,776
Cash and cash equivalents at 1 January |  | (172,625) | (263,401)
Cash and cash equivalents at 31 December | 15 | 7,120 | (172,625)

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025

1 | General information

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

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

Principal activity

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

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

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

Basis of preparation

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

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

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 | Accounting policies (continued)

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

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.
Property is included at valuation and depreciation is charged on a straight-line basis over an estimated useful life of 50 years.

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

2 | Accounting policies (continued)

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
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 2025 (continued)

2 | Accounting policies (continued)

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation.
Lease payments are apportioned between finance costs in the statement of comprehensive income and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

3 | Going Concern

Following a general glut of supply in the caravan and motorhome markets in prior years, margins weakened in 2025, exacerbated by the business's stock reduction strategy. Whilst a loss was made in 2025 this was also affected by the stock reduction strategy. Management expects margins to improve because of reduced supply and more effective stock acquisition. Management forecasts for 2026 also show an improved return and that the business has sufficient cash to enable it to continue trading for the foreseeable future.
Management have increased their overdraft facility and believe that the business could access sufficient funding via its existing facilities, or take other cash generating actions if required. As such, the accounts have been prepared on a going concern basis.

4 | Turnover

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

| 2025 £ | 2024 £
Sale of goods | 16,864,849 | 17,961,178
Commissions received | 22,362 | 19,310
| 16,887,211 | 17,980,488

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

5 | Other gains and losses

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

| 2025 £ | 2024 £
Gain on disposal of tangible assets | - | 23,552

6 | Operating (loss)/profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 54,924 | 57,068
Operating lease expense - other | 17,671 | 18,709
Profit on disposal of property, plant and equipment | - | (23,552)
Foreign currency (gains)/losses | (1,026) | (236)

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

7 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on bank overdrafts and borrowings | 262,938 | 282,387
Interest on obligations under finance leases and hire purchase contracts | 2,365 | 2,365
Interest expense on other finance liabilities | 3,381 | 11,635
| 268,684 | 296,387

8 | Staff costs

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

| 2025 £ | 2024 £
Wages and salaries | 1,270,944 | 1,199,697
Social security costs | 134,877 | 111,020
Pension costs, defined contribution scheme | 75,393 | 72,060
| 1,481,214 | 1,382,777

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

| 2025 No. | 2024 No.
Administrative staff | 41 | 39
Management staff | 9 | 9
| 50 | 48

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

9 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 193,247 | 200,397
Contributions paid to money purchase schemes | 28,585 | 28,428
| 221,832 | 228,825

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

| 2025 No. | 2024 No.
Accruing benefits under money purchase pension scheme | 4 | 4

In respect of the highest paid director:

| 2025 £ | 2024 £
Remuneration | 61,598 | 59,362
Company contributions to money purchase pension schemes | 3,385 | 3,228

10 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 29,250 | 24,000
Other fees to auditors |  |
Taxation compliance services | 650 | 500
All other non-audit services | 1,500 | 3,475
Other non-audit services | - | 210
| 2,150 | 4,185

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

11 | Taxation

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

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | (22,945) | 22,945
Deferred taxation |  |
Arising from origination and reversal of timing differences | (67,220) | 1,870
Tax (receipt)/expense in the income statement | (90,165) | 24,815

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
(Loss)/profit before tax | (389,614) | 73,229
Corporation tax at standard rate | (97,403) | 18,307
Effect of expense not deductible in determining taxable profit (tax loss) | 10,226 | 8,783
Effect of tax losses | - | (36)
Tax decrease from other tax effects | (2,988) | (2,239)
Total tax (credit)/charge | (90,165) | 24,815

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

11 | Taxation (continued)

Deferred tax

Deferred tax assets and liabilities

2025 | Asset £ | Liability £
Accelerated capital allowances | 12,729 | -
Revaluation of tangible assets | - | 319,720
Unused tax losses | 59,328 | -
| 72,057 | 319,720

2024 | Asset £ | Liability £
Accelerated capital allowances | 3,402 | -
Revaluation of tangible assets | - | 322,221
Unused tax losses | 1,436 | -
| 4,838 | 322,221

The net deferred tax position of £247,663 (2024: £317,383) has been recognised in Provisions.

12 | Tangible assets

| Land and buildings £ | Fixtures and fittings £ | Motor vehicles £ | Total £
Cost or valuation
At 1 January 2025 | 1,950,000 | 384,216 | 104,256 | 2,438,472
Revaluations | (10,000) | - | - | (10,000)
Additions | - | 2,746 | - | 2,746
At 31 December 2025 | 1,940,000 | 386,962 | 104,256 | 2,431,218
Depreciation
At 1 January 2025 | 59,346 | 355,880 | 46,480 | 461,706
Charge for the year | 29,627 | 6,192 | 19,105 | 54,924
Revaluations | (81,601) | - | - | (81,601)
At 31 December 2025 | 7,372 | 362,072 | 65,585 | 435,029
Carrying amount
At 31 December 2025 | 1,932,628 | 24,890 | 38,671 | 1,996,189
At 31 December 2024 | 1,890,654 | 28,336 | 57,776 | 1,976,766

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

12 | Tangible assets (continued)

Tangible assets held at valuation

The site at Shepherds Way, St Georges was revalued on 7 October 2025 by Vickery Holman Chartered Surveyors, the market value of the site was determined to be £1,940,000. The directors have confirmed the property value of £1,940,000 as at end of year is still appropriate. Depreciation of £7,372 has been charged since the valuation date up to the year-end.
£74,101 has been recognised in the Statement of Other Comprehensive Income for Revaluation of Land & Buildings, this relates to £71,601 on uplift of fixed assets book value and £2,500 for deferred tax on revaluation.
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 2025 | Freehold property £
Aggregate cost | 434,909
Aggregate depreciation | (252,804)
| 182,105

At 31 December 2024 |
Aggregate cost | 434,909
Aggregate depreciation | (238,990)
| 195,919

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:

| 2025 £ | 2024 £
Motor vehicles | 9,676 | 22,577
Equipment | - | -
| 9,676 | 22,577

13 | Stocks

| 2025 £ | 2024 £
Merchandise | 6,568,969 | 7,634,541

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

14 | Debtors

Current | Note | 2025 £ | 2024 £
Trade debtors |  | 11,379 | 14,513
Other debtors |  | 60,503 | 67,985
Prepayments |  | 624,895 | 465,787
Income tax asset | 11 | 22,945 | -
|  | 719,722 | 548,285

15 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash on hand | 1,139 | 2,016
Cash at bank | 23,694 | 22,095
| 24,833 | 24,111
Bank overdrafts | (17,713) | (196,736)
Cash and cash equivalents in statement of cash flows | 7,120 | (172,625)

16 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Loans and borrowings | 21 | 46,487 | 202,291
Trade creditors |  | 4,762,201 | 5,136,697
Amounts due to related parties | 23 | 20,000 | 20,000
Social security and other taxes |  | 319,854 | 512,924
Other payables |  | 12,090 | 94,991
Accruals and deferred income |  | 809,277 | 550,851
|  | 5,969,909 | 6,517,754
Due after one year |  |  |
Loans and borrowings | 21 | - | 31,077

Included within trade creditors is an amount of £4,692,488 (2024: £5,068,164) in respect of stocking loans which are secured on the related stock.

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

17 | Provisions for liabilities

| Deferred tax £ | Total £
At 1 January 2025 | 317,383 | 317,383
Increase (decrease) in existing provisions | (69,720) | (69,720)
At 31 December 2025 | 247,663 | 247,663

18 | 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 £75,393 (2024 - £72,060).

19 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary shares of £1 each | 4,000 | 4,000 | 4,000 | 4,000

20 | 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.

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

20 | Reserves (continued)

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

| Revaluation reserve £ | Retained earnings £ | Total £
Reclassification from revaluation reserve to profit and loss account | (22,172) | 22,172 | -

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

| Revaluation reserve £ | Retained earnings £
Reclassification from revaluation reserve to profit and loss account | (22,172) | 22,172

21 | Loans and borrowings

Non-current loans and borrowings

| 2025 £ | 2024 £
Hire purchase contracts | - | 31,077

Current loans and borrowings

| 2025 £ | 2024 £
Bank overdrafts | 17,713 | 196,736
Hire purchase contracts | 28,774 | 5,555
| 46,487 | 202,291

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

21 | Loans and borrowings (continued)

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.

22 | Obligations under leases and hire purchase contracts

Finance leases and hire purchase contracts

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 28,774 | 5,590
Later than one year and not later than five years | - | 31,042
| 28,774 | 36,632

Interest payable on these leases totalled £2,365 (2024: £2,365) - see note 7.

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 14,366 | 19,977
Later than one year and not later than five years | 14,786 | 29,152
| 29,152 | 49,129

The amount of non-cancellable operating lease payments recognised as an expense during the year was £19,977 (2024 - £20,344).

Davan Caravans Limited

Notes to the Financial Statements for the Year Ended 31 December 2025 (continued)

23 | Related party transactions

Directors' loan balances

2025 | At 1 January 2025 £ | At 31 December 2025 £
Directors' loan | (20,000) | (20,000)

2024 | At 1 January 2024 £ | At 31 December 2024 £
Directors' loan | (20,000) | (20,000)

During the year gross interest was payable to the Directors of £1,600 (2024: £1,600) in respect of loans made to the company.
During the year gross interest was payable to family members of a director of £917 (2024: £8,800) in respect of loans made to the company.
At the year-end £Nil (2024: £57,500) was owed to a family member of a director.
During the year £80,440 (2024: £76,601) was payable in gross wages to close family members of the directors.