ACCOUNTS - Final Accounts

Operating profit

The operating profit is stated after charging:

Registered number: 13560678

DAVIES ENTERPRISE HOLDINGS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

DAVIES ENTERPRISE HOLDINGS LIMITED

COMPANY INFORMATION

Director	S E Davies


Registered number	13560678


Registered office	Unit A-C, Vastre Industrial Estate
	Hoel Vastre
	Newtown
	Powys
	SY16 1DZ


Independent auditors	WR Partners
	Chartered Accountants & Statutory Auditors
	Belmont House
	Shrewsbury Business Park
	Shrewsbury
	Shropshire
	SY2 6LG

DAVIES ENTERPRISE HOLDINGS LIMITED

CONTENTS

	Page
Group strategic report	1 - 2
Director's report	3 - 4
Independent auditors' report	5 - 8
Consolidated statement of comprehensive income	9
Consolidated statement of financial position	10 - 11
Company statement of financial position	12
Consolidated statement of changes in equity	13
Company statement of changes in equity	14
Consolidated statement of cash flows	15 - 16
Notes to the financial statements	17 - 40

DAVIES ENTERPRISE HOLDINGS LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 AUGUST 2025

Introduction

Davies Enterprise Holdings Ltd is the ultimate parent and holding company for Hilltop Food Group Ltd and its associated companies.

The Group has continued to be one of the leading independent suppliers of honey in the UK, with its principal activity being the packaging and distribution of sweet spreads.

Business review

The Directors present the results of the Group for the year ended 31 August 2025. The review of the business performance included below is considered appropriate given the size and nature of the Group.

During the year, Davies Enterprise prioritised strengthening its operational foundations while maintaining steady progress. Alongside continued investment in production capacity and quality control systems to meet evolving domestic and international regulatory requirements, the Group enhanced supply chain efficiency and carefully managed increases in packaging and import costs. This approach has positioned the business well to support future growth, and maintain competitiveness.

During the year, the Group's turnover has increased by 3% to £45.4m. Gross profit has decreased by 4% to £9.3m Operating profit decreased by 39% to £2.1m.

The Group’s cash position has remained consistent with a cash balance of £145k at year end.

The Group’s financial position has remained strong, with net assets increasing from £3.5m in 2024 to £4.3m in 2025.

Principal risks and uncertainties

The Directors continually monitor the risks and uncertainties which may impact the performance of the Group.

The principal risks during the year included the impact of inflation, increased shipping costs, higher interest rates, and the Group’s ability to absorb these additional expenses. The directors monitor these factors on a regular basis and adapt strategies as required to ensure that the business mitigates these risks as much as commercially possible.

These are in addition to the normal operational risks associated with safety and product quality.

Financial key performance indicators

The key performance indicators used by the business to measure its financial performance those relating to
turnover, gross profit and operating profit. The Group measures its financial position by reference to the
bank balance, net current assets and net assets. A description of Group performance with reference to
these key performance indicators is included in the business review above.

Page 1

DAVIES ENTERPRISE HOLDINGS LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2025

Other key performance indicators

The Group uses a number of other non- financial key performance indicators to measure its ongoing performance. The Group monitors its relationships with key customer and suppliers which continue to be strong. The Group continually monitors customer service and staff productivity.

Important events occurring in the year

During the year, the Group made a significant investment in a comprehensive rebranding programme. This initiative was designed to strengthen brand identity, improve market positioning, and ensure the brand better reflects the quality of the Company’s products and its long-term growth ambitions. The Company also continued to expand its production and storage capacity through the leasing of an adjacent facility and targeted investment in automation.

During the year, particular focus was placed on improving productivity, increasing operational efficiency, optimising inventory management, and streamlining supply chain processes. The Company also advanced the development of new product categories, with continued focus towards export markets and e-commerce-driven growth. The Company’s secondary site transitioned from providing contract packing services for third-party peanut butter brands to the launch of its own proprietary peanut butter brand in the UK market.

This report was approved by the board and signed on its behalf.

S E Davies

Director

Date: 14 May 2026

Page 2

DAVIES ENTERPRISE HOLDINGS LIMITED

DIRECTOR'S REPORT

FOR THE YEAR ENDED 31 AUGUST 2025

The director presents his report and the financial statements for the year ended 31 August 2025.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

In preparing these financial statements, the director is required to:

∙select suitable accounting policies for the Group's financial statements and then apply them consistently;

∙make judgments 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 Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,132,645 (2024 - £2,318,789).

Interim group dividends of £366,668 (2024: £458,333) were paid during the year.

Director

The director who served during the year was:

S E Davies

Future developments

The Group continues to trade in line with its principal activities, and there are no anticipated future developments that the Directors consider relevant for disclosure.

The Group will continue to invest in the Vastre facility in the forthcoming financial year, with plans to expand into the spreads market through the development of its own food brands. This strategy will be underpinned by further investment in automation and enhanced service capabilities, which are expected to support sustainable long-term growth.

Page 3

DAVIES ENTERPRISE HOLDINGS LIMITED

DIRECTOR'S REPORT (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2025

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:

∙so far as is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙ has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group or the Company since the year end.

Auditors

The auditors, WR Partners, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

S E Davies

Director

Date: 14 May 2026

Page 4

DAVIES ENTERPRISE HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAVIES ENTERPRISE HOLDINGS LIMITED

Opinion

We have audited the financial statements of Davies Enterprise Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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 Group's and of the parent Company's affairs as at 31 August 2025 and of the Group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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 director with respect to going concern are described in the relevant sections of this report.

Page 5

DAVIES ENTERPRISE HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAVIES ENTERPRISE HOLDINGS LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual Report. 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. 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 course of 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.

Opinion 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 Group strategic report and the Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Group strategic report and the Director's report 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Director's report.

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

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

∙the parent Company financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of director's remuneration specified by law are not made; or

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

Page 6

DAVIES ENTERPRISE HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAVIES ENTERPRISE HOLDINGS LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is responsible for assessing the Group's and the parent 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 director either intends to liquidate the Group or the parent 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 an Auditors' 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 Group financial statements.

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:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and the Group and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).

We understood how the Company and the Group are complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements.

We assessed the susceptibility of the Company and Group's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.

Page 7

DAVIES ENTERPRISE HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DAVIES ENTERPRISE HOLDINGS LIMITED (CONTINUED)

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.

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 Auditors' 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 Auditors' 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.

John Fletcher BA (Hons) FCA (Senior statutory auditor)

for and on behalf of

WR Partners

Chartered Accountants

Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG

15 May 2026

Page 8

DAVIES ENTERPRISE HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 AUGUST 2025

	2025	2024
Note	£	£


Turnover	4	45,436,047	44,125,077
Cost of sales		(36,127,936)	(34,440,789)
Gross profit		9,308,111	9,684,288
Distribution costs		(1,350,636)	(1,259,121)
Administrative expenses		(5,844,210)	(4,901,662)
Other operating income	5	51,830	-
Operating profit	6	2,165,095	3,523,505
Income from participating interests		(18,440)	-
Interest receivable and similar income		9,873	-
Interest payable and similar expenses	11	(493,488)	(350,366)
Profit before taxation		1,663,040	3,173,139
Tax on profit	12	(530,395)	(854,350)
Profit for the financial year		1,132,645	2,318,789

Profit for the year attributable to:
Owners of the parent Company	1,132,645	2,318,789
	1,132,645	2,318,789

There were no recognised gains and losses for 2025 or 2024 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 17 to 40 form part of these financial statements.

Page 9

DAVIES ENTERPRISE HOLDINGS LIMITED

REGISTERED NUMBER: 13560678

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 AUGUST 2025

		2025		2024
Note		£		£

Fixed assets
Tangible assets	15		6,583,533		5,150,947
			6,583,533		5,150,947
Current assets
Stocks	17	5,902,058		4,897,787
Debtors: amounts falling due within one year	18	3,802,978		3,906,659
Current asset investments	19	5,821		5,821
Cash at bank and in hand	20	144,671		432,903
		9,855,528		9,243,170
Creditors: amounts falling due within one year	21	(9,524,466)		(8,551,849)
Net current assets			331,062		691,321
Total assets less current liabilities			6,914,595		5,842,268
Creditors: amounts falling due after more than one year	22		(1,351,740)		(1,199,663)
Provisions for liabilities
Deferred taxation	25	(1,206,784)		(1,052,511)
Other provisions	26	(75,000)		(75,000)
			(1,281,784)		(1,127,511)
Net assets			4,281,071		3,515,094

Page 10

DAVIES ENTERPRISE HOLDINGS LIMITED

REGISTERED NUMBER: 13560678

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 AUGUST 2025

		2025		2024
Note		£		£

Capital and reserves
Called up share capital	27	1	1
Profit and loss account	28	4,281,070	3,515,093
Equity attributable to owners of the parent Company		4,281,071	3,515,094

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

S E Davies

Director

Date: 14 May 2026

The notes on pages 17 to 40 form part of these financial statements.

Page 11

DAVIES ENTERPRISE HOLDINGS LIMITED

REGISTERED NUMBER: 13560678

COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 31 AUGUST 2025

		2025		2024
Note		£		£

Fixed assets
Investments	16		2		2
			2		2
Current assets
Debtors: amounts falling due within one year	18	598,013		-
Cash at bank and in hand	20	5,220		23,675
		603,233		23,675
Creditors: amounts falling due within one year	21	(456,113)		(279,676)
Net current assets/(liabilities)			147,120		(256,001)
Total assets less current liabilities			147,122		(255,999)


Net assets/(liabilities)			147,122		(255,999)

Capital and reserves
Called up share capital	27		1		1
Profit and loss account brought forward		(256,000)		-
Profit for the year		769,789		202,333
Other changes in the profit and loss account		(366,668)		(458,333)
Profit and loss account carried forward			147,121		(256,000)
			147,122		(255,999)

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

S E Davies

Director

Date: 14 May 2026

The notes on pages 17 to 40 form part of these financial statements.

Page 12

DAVIES ENTERPRISE HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 AUGUST 2025

	Called up share capital	Profit and loss account	Equity attributable to owners of parent Company	Total equity
	£	£	£	£
At 1 September 2023	1	1,654,637	1,654,638	1,654,638
Comprehensive income for the year
Profit for the year	-	2,318,789	2,318,789	2,318,789
Total comprehensive income for the year	-	2,318,789	2,318,789	2,318,789
Contributions by and distributions to owners
Dividends: Equity capital	-	(458,333)	(458,333)	(458,333)
Total transactions with owners	-	(458,333)	(458,333)	(458,333)

At 1 September 2024	1	3,515,093	3,515,094	3,515,094
Comprehensive income for the year
Profit for the year	-	1,132,645	1,132,645	1,132,645
Total comprehensive income for the year	-	1,132,645	1,132,645	1,132,645
Contributions by and distributions to owners
Dividends: Equity capital	-	(366,668)	(366,668)	(366,668)
Total transactions with owners	-	(366,668)	(366,668)	(366,668)
At 31 August 2025	1	4,281,070	4,281,071	4,281,071

The notes on pages 17 to 40 form part of these financial statements.

Page 13

DAVIES ENTERPRISE HOLDINGS LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 AUGUST 2025

	Called up share capital	Profit and loss account	Total equity
	£	£	£
At 1 September 2023	1	-	1
Comprehensive income for the year
Profit for the year	-	202,333	202,333
Total comprehensive income for the year	-	202,333	202,333
Contributions by and distributions to owners
Dividends: Equity capital	-	(458,333)	(458,333)
Total transactions with owners	-	(458,333)	(458,333)

At 1 September 2024	1	(256,000)	(255,999)
Comprehensive income for the year
Profit for the year	-	769,789	769,789
Total comprehensive income for the year	-	769,789	769,789
Contributions by and distributions to owners
Dividends: Equity capital	-	(366,668)	(366,668)
Total transactions with owners	-	(366,668)	(366,668)
At 31 August 2025	1	147,121	147,122

The notes on pages 17 to 40 form part of these financial statements.

Page 14

DAVIES ENTERPRISE HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 AUGUST 2025

			2025	2024
			£	£

Cash flows from operating activities
Profit for the financial year	1,132,645	2,318,789
Adjustments for:
Depreciation of tangible assets	1,120,736	943,083
Loss on disposal of tangible assets	4,029	-
Interest paid	493,488	350,366
Interest received	8,567	-
Taxation charge	530,395	854,350
(Increase) in stocks	(1,004,271)	(797,024)
Decrease in debtors	103,681	1,302,910
(Decrease) in creditors	(469,513)	(2,122,980)
Increase in provisions	-	75,000
Corporation tax (paid)/received	(284,255)	-
Net cash generated from operating activities	1,635,502	2,924,494

Cash flows from investing activities
Purchase of tangible fixed assets	(2,556,126)	(1,348,248)
Sale of tangible fixed assets	(1,225)	-
Interest received	9,873	-
HP interest paid	(87,739)	(67,508)
Income from investments in related companies	(18,440)	-
Net cash from investing activities	(2,653,657)	(1,415,756)

Page 15

DAVIES ENTERPRISE HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 AUGUST 2025

		2025	2024
		£	£


Cash flows from financing activities
New secured loans	1,761,607	-
Repayment of bank loans	(457,334)	(361,539)
Repayment of/new finance leases	233,553	(354,697)
Dividends paid	(366,668)	(458,333)
Interest paid	(405,749)	(282,858)
Net cash used in financing activities	765,409	(1,457,427)
Net (decrease)/increase in cash and cash equivalents	(252,746)	51,311
Cash and cash equivalents at beginning of year	397,367	346,056
Cash and cash equivalents at the end of year	144,621	397,367

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	144,671	432,903
Bank overdrafts	(50)	(35,536)
	144,621	397,367

The notes on pages 17 to 40 form part of these financial statements.

Page 16

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

1.	General information

Davies Enterprise Holdings Limited (''the Company'') is a private company limited by shares and is registered and incorporated in England & Wales, with its registered office and principal place of business at Unit 5 Dyffryn Enterprise Park, Pool Road, Newtown, Powys, United Kingdom, SY16 3BD.

The principal activity of the Group during the year was the production of honey.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the merger accounting method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their book values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income for the entire financial year in which the combination occurred. They are deconsolidated from the date control ceases.

2.3

Financial reporting standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these
financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in
the UK and Republic of Ireland":

- the requirements of Section 7 Statement of Cash Flows;
- the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
- the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements.

Page 17

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.4

Going concern

The Group meets its day-to-day working capital requirements through its bank facilities. The Group’s forecasts and projections show that it should be able to operate within the level of its current facilities. After making enquiries, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.

2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

2.6

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 18

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.7

Operating leases: the Group as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.8

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Consolidated statement of comprehensive income in the same period as the related expenditure.

2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 19

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.12

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

2.13

Current and deferred taxation

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

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 and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 20

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.14

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property	-	2%
Short-term leasehold property	-	14%
Plant and machinery	-	15%
Motor vehicles	-	25%
Fixtures and fittings	-	25%
Computer equipment	-	25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Freehold land is considered to have an indefinite useful economic life and is therefore not depreciated.

Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use and are reviewed for impairment at each reporting period.

2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is 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.

Page 21

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

The carrying amount of the trade debtors includes debtors which are subject to a factoring arrangement. Under this arrangement, the company has transferred the relevant debtors to the factor in exchange for cash and is prevented from selling and pledging the debtors. The risks and rewards related to the factored debtors are transferred under the factoring agreement. The Company has therefore de-recognised the transferred assets in their entirety from the Balance Sheet.

2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.

Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

Dilapidation provisions are established over the life of leases to cover remedial work necessary at termination under the terms of those leases.

Page 22

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.21

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Statement of financial position when the Group 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Page 23

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

2.Accounting policies (continued)

2.21

Financial instruments (continued)

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations or future events that are believed to be reasonable under the circumstances.

The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the directors there are no estimates nor assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

Page 24

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

Turnover

The whole of the turnover is attributable to the principal activity of the Group.

Analysis of turnover by country of destination:

					2025	2024
					£	£

United Kingdom	42,386,776	42,127,861
Rest of Europe	1,439,744	573,699
Rest of the world	1,609,527	1,423,517
	45,436,047	44,125,077

5.	Other operating income
		2025	2024
		£	£

Sundry income	51,830	-
	51,830	-

(Profit)/loss on disposal of tangible assets	4,029	-
Exchange differences	(1,350)	(108,466)
Other operating lease rentals	288,529	77,979

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements

17,200

15,695

Page 25

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

8.	Employees
	Staff costs, including director's remuneration, were as follows:

		Group	Group
		2025	2024
		£	£


Wages and salaries	4,307,018	3,700,168
Social security costs	486,055	387,754
Cost of defined contribution scheme	374,479	292,773
	5,167,552	4,380,695

The average monthly number of employees, including the director, during the year was as follows:

	2025	2024
	No.	No.

Average employees	133	138

The Company has no employees other than the director, who did not receive any remuneration (2024 - £NIL)

9.	Director's remuneration
		2025	2024
		£	£

Director's emoluments	13,897	14,193
Group contributions to defined contribution pension schemes	60,722	75,425
	74,619	89,618

During the year retirement benefits were accruing to 1 director (2024 - 1) in respect of defined contribution pension schemes.

10.	Interest receivable
		2025	2024
		£	£

	Other interest receivable	9,873	-
		9,873	-

Page 26

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

11.	Interest payable and similar expenses
		2025	2024
		£	£

Bank interest payable	14,656	113,571
Other loan interest payable	354,590	169,283
Finance leases and hire purchase contracts	87,739	67,508
Other interest payable	36,503	4
	493,488	350,366

Corporation tax
Current tax on profits for the year	376,122	284,255
	376,122	284,255

Total current tax	376,122	284,255

Deferred tax
Origination and reversal of timing differences	154,273	570,095
Total deferred tax	154,273	570,095


	Taxation on profit on ordinary activities	530,395	854,350

Page 27

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

12.Taxation (continued)

Profit on ordinary activities before tax

1,663,040

3,173,139

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25.0% (2024 - 25.0%)	415,760	793,285
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	10,306	3,342
Capital allowances for year in excess of depreciation	-	(6,277)
Short-term timing difference leading to an increase (decrease) in taxation	32,773	-
Provision against investment and loan balances	70,549	64,000
Loss on chargeable assets	1,007	-
Total tax charge for the year	530,395	854,350

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

13.	Dividends
		2025	2024
		£	£

	On Ordinary share capital	366,668	458,333
		366,668	458,333

Page 28

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

14.	Intangible assets
	Group and Company

		Goodwill
		£
	Cost
	At 1 September 2024	34,000
	At 31 August 2025	34,000
	Amortisation
	At 1 September 2024	34,000
	At 31 August 2025	34,000
	Net book value
	At 31 August 2025	-
	At 31 August 2024	-

Page 29

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

15.	Tangible fixed assets
	Group

	Freehold property	Leasehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Computer equipment
	£	£	£	£	£	£
Cost or valuation
At 1 September 2024	649,158	1,698,361	5,238,126	17,651	104,910	226,699
Additions	719	372,949	1,222,646	-	42,482	19,280
Disposals	-	-	(8,515)	-	(778)	-
Transfers between classes	-	-	179,175	-	-	-
At 31 August 2025	649,877	2,071,310	6,631,432	17,651	146,614	245,979
Depreciation
At 1 September 2024	82,072	670,337	1,970,381	17,651	58,832	163,860
Charge for the year	14,113	257,823	792,793	-	25,960	30,047
Disposals	-	-	(6,473)	-	(16)	-
At 31 August 2025	96,185	928,160	2,756,701	17,651	84,776	193,907
Net book value
At 31 August 2025	553,692	1,143,150	3,874,731	-	61,838	52,072
At 31 August 2024	567,086	1,028,024	3,267,745	-	46,078	62,839

Page 30

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

15.Tangible fixed assets (continued)

	Assets under construction	Total
	£	£
Cost or valuation
At 1 September 2024	179,175	8,114,080
Additions	898,050	2,556,126
Disposals	-	(9,293)
Transfers between classes	(179,175)	-
At 31 August 2025	898,050	10,660,913
Depreciation
At 1 September 2024	-	2,963,133
Charge for the year	-	1,120,736
Disposals	-	(6,489)
At 31 August 2025	-	4,077,380
Net book value
At 31 August 2025	898,050	6,583,533
At 31 August 2024	179,175	5,150,947

Page 31

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

15.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2025	2024
	£	£


Plant and machinery	1,387,878	916,333
	1,387,878	916,333

16.	Fixed asset investments

	Company

	Investments in subsidiary companies	Investment in joint ventures	Total
	£	£	£
Cost or valuation
At 1 September 2024	150,002	-	150,002
Additions	-	18,442	18,442
Disposal	(150,000)	-	(150,000)
Share of profit/(loss)	-	(18,442)	(18,442)
At 31 August 2025	2	-	2
Impairment
At 1 September 2024	150,000	-	150,000
Impairment on disposals	(150,000)	-	(150,000)
At 31 August 2025	-	-	-
Net book value
At 31 August 2025	2	-	2
At 31 August 2024	2	-	2

Page 32

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Registered office	Class of shares	Holding

Hilltop Food Group Limited	Vastre Industrial Estate, Hoel Vastre, Newtown, Powys, United Kingdom, SY16 1DZ	Ordinary	100%
Sweet Vegan Foods Limited	Unit 5 Dyffryn Enterprise Park, Pool Road, Newtown, Powys, United Kingdom, SY16 3BD	Ordinary	100%
Patchwork Foods Limited	Unit 5-6 Llys Parcwr, Ruthin, Denbighshire, LL15 1NJ	Ordinary	53%

Patchwork Food Limited entered into voluntary liquidation on 6th June 2025.

In accordance with the provisions of the Companies Act 2006 and paragraph 9.9A of FRS102, Patchwork Foods Limited has been excluded from the consolidated accounts on the basis that it is not material to the Group.

Page 33

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

17.	Stocks
		Group	Group
		2025	2024
		£	£

Raw materials and consumables	3,275,711	2,015,211
Finished goods and goods for resale	2,626,347	2,882,576
	5,902,058	4,897,787

Inventory is pledged as security over the revolving loan.

18.

Debtors

Group	Group	Company	Company
2025	2024	2025	2024
£	£	£	£


Trade debtors	2,435,416	3,097,791	-	-
Other debtors	1,094,254	261,586	598,013	-
Prepayments and accrued income	273,308	547,282	-	-
	3,802,978	3,906,659	598,013	-

19.	Current asset investments
		Group	Group
		2025	2024
		£	£

Listed investments	5,821	5,821
	5,821	5,821

Page 34

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

20.	Cash and cash equivalents
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Cash at bank and in hand	144,671	432,903	5,220	23,675
Less: bank overdrafts	(50)	(35,536)	-	-
	144,621	397,367	5,220	23,675

21.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2025	2024	2025	2024
		£	£	£	£

Bank overdrafts	50	35,536	-	-
Bank loans	1,748,174	411,234	-	-
Trade creditors	4,950,230	6,358,789	-	-
Amounts owed to group undertakings	-	-	301,013	276,426
Corporation tax	376,122	284,255	-	-
Other taxation and social security	101,792	95,895	-	-
Obligations under finance lease and hire purchase contracts	372,363	338,255	-	-
Other creditors	1,105,700	478,843	150,900	-
Accruals and deferred income	870,035	549,042	4,200	3,250
	9,524,466	8,551,849	456,113	279,676

22.	Creditors: Amounts falling due after more than one year
		Group	Group
		2025	2024
		£	£

Bank loans	424,667	457,334
Net obligations under finance leases and hire purchase contracts	780,072	580,627
Accruals and deferred income	147,001	161,702
	1,351,740	1,199,663

Page 35

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

23.	Loans
	Analysis of the maturity of loans is given below:
		Group	Group
		2025	2024
		£	£

Amounts falling due within one year
Bank loans	1,748,174	411,234
	1,748,174	411,234
Amounts falling due 1-2 years
Bank loans	32,667	32,667
	32,667	32,667
Amounts falling due 2-5 years
Bank loans	392,000	424,667
	392,000	424,667
Amounts falling due after more than 5 years
	2,172,841	868,568

Bank loans are secured by fixed and floating charges over the Group's assets.

Included within bank loans are loans issued by Santander UK PLC for £457,333. This loan is repayable by quarterly instalments with a final repayment date of August 2027. Interest is charged at a rate of 2.5% per annum at the Bank of England Base rate.

Included within bank loans is a revolving facility of £1.7m issued by Santander PLC secured over the stock/ trade of the business. This revolving facility is payable on demand. Interest is charged at 2.5% per annum above the Santander Base Rate.

Page 36

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025


24.	Hire purchase and finance leases
	Minimum lease payments under hire purchase fall due as follows:
		Group	Group
		2025	2024
		£	£

Within one year	372,363	338,255
Between 1-5 years	780,072	580,627
	1,152,435	918,882

Obligations under finance lease and hire purchase contracts are secured on the assets to which they relate.

25.	Deferred taxation
	Group

		2025
		£

	At beginning of year	(1,052,511)
	Charged to profit or loss	(154,273)
	At end of year	(1,206,784)

The deferred tax balance is made up as follows:
	Group	Group
	2025	2024
	£	£

Accelerated capital allowances	(1,212,520)	(1,058,888)
Short term timing differences - unpaid pension contributions	5,736	6,377
	(1,206,784)	(1,052,511)

Comprising:
Liability	(1,206,784)	(1,052,511)

Page 37

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

26.	Provisions
	Group

		Dilapidation provisions
		£

	At 1 September 2024	75,000
	At 31 August 2025	75,000

The dilapidation provision relates to the group's warehouse leases.

27.	Share capital
		2025	2024
		£	£

Allotted, called up and fully paid

1 (2024 - 1) Ordinary share of £0.01	0.01	0.01
74 (2024 - 74) Ordinary A shares of £0.01 each	0.74	0.74
25 (2024 - 25) Ordinary B shares of £0.01 each	0.25	0.25

	1.00	1.00

28.

Reserves

Profit and loss account

Group & Company

This reserve represents the value of the cumulative retained profits and losses since incorporation, less distributions made to shareholders.

Page 38

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

29.	Analysis of net debt

		At 1 September 2024	Cash flows	At 31 August 2025
		£	£	£

Cash at bank and in hand	432,903	(288,232)	144,671
Bank overdrafts	(35,536)	35,486	(50)
Debt due after 1 year	(457,334)	32,667	(424,667)
Debt due within 1 year	(436,741)	(1,334,376)	(1,771,117)
Finance leases	(918,882)	(233,553)	(1,152,435)
Liquid investments	5,821	-	5,821
	(1,409,769)	(1,788,008)	(3,197,777)

30.	Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £374,480 (2024: £292,773). Contributions totalling £22,943 (2024: £25,507) were payable to the fund at the balance sheet date and are included in creditors.

31.	Commitments under operating leases
	At 31 August 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
		Group	Group
		2025	2024
		£	£

Not later than 1 year	590,685	145,203
Later than 1 year and not later than 5 years	2,507,084	398,643
Later than 5 years	1,039,958	-
	4,137,727	543,846

32.	Related party transactions
	Included within other debtors is a loan due from Directors for the sum of £447,110 (2024: £54,622).

33.	Post balance sheet events

There have been no significant events affecting the Group since the year end.

Page 39

DAVIES ENTERPRISE HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2025

34.	Controlling party

The Company is under control of Mr S E Davies, by virtue of owning more than 50% of the voting rights of the ordinary share capital.

Page 40