The directors present the strategic report for the year ended 30 September 2025.
The result for 2024/25 was built on the successes of the prior year, and sees record levels of turnover and profitability again.
We have continued to streamline our manufacturing processes, concentrating on developing new levels of flexibility within the workforce through our ‘Built to Lead’ training course which has strengthened middle management capabilities significantly. Our orderbook has remained consistently healthy throughout the period which has again given us the opportunity to concentrate on large batch runs that bring benefits to both operational efficiency and good cash flow.
We are committed to continuously making sensible investment decisions that lower our cost base and, in many cases, reduce our carbon footprint. We have also continued to strengthen relations with our employees, with further investment in the development of our employee representation group. A new structure for this group has been implemented, with training provided to all those involved. This now enables employees to effectively have their say on both local and company-wide issues.
During the year the Group was awarded bronze medal status by EcoVadis, a globally recognised platform assessing corporate sustainability performance. This reflects the Directors’ commitment to improving standards across labour & human rights, ethics, sustainable procurement and environment, and is regarded as a significant milestone in the Group’s wider corporate social responsibility journey.
We remain committed to providing the best products that the industry has to offer with innovation at the core of our design principles. Our focus is on safety and we are pleased to confirm that we have had a patent granted for our new ‘Suspension Safe’ feature which has attracted significant interest within the market.
Despite the significant government-imposed cost increases of both employer’s national insurance and the rise in national living wage, we have been mindful to protect our margins wherever possible whilst being careful to remain competitive. Coupled with the improvements in our operations as outlined above, and the continued tight control of all our costs, we saw profit before tax rise from £15.0m in 23/24 to £16.6m in 24/25.
We remain heavily dependent however on being able to source appropriately skilled labour to produce our products to the required standards, and this issue remains a constant challenge.
Cash remains a crucial focus of the business and a healthy position is seen as critical in ensuring a stable environment for the business to continue to flourish. To this end we pay close attention to cash collection from our customers, and maintaining sensible inventory levels.
As the global markets finally settle down after the unprecedented events of recent years, we feel that the greatest risk in the business now resides around the uncertainties in the labour market which are being driven by factors beyond our control. The imposed rise in employer’s national insurance contributions, coupled with another significant rise to the living wage has had a serious effect on our labour rates, and the overall cost of labour. As a result of these legislative changes, it continues to be increasingly difficult to keep the pay differential through our various skill levels equitable and this brings a risk of affecting the morale of our workforce. One of our biggest challenges, always, is to attract and retain appropriately skilled staff and this is becoming increasingly difficult each year. To counter this risk Don-Bur engages with the local community and fosters relationships with many schools and colleges in the immediate area in order to create partnerships that will encourage young local talent to seek a career with us.
There are many other uncertainties and issues that still surround business however which include the volatility of exchange rates, the continued volatility of various commodities, and the uncertainty around inflation and interest rates and other factors that all put strain on material and labour costs.
We also need to consider the solvency of our clients, and the security and integrity of our supply chains, and weigh all these factors in relation to our investment needs and financing capabilities.
Our position within our industry remains strong however, and we still believe that we are placed as the first-choice in the UK for bespoke trailers and bodies amongst the top retail and freight distribution companies in the UK.
In order to mitigate risk:
We place forward exchange contracts at the point of placing orders for materials in foreign currency so that our costings reflect the price we will actually incur.
We have freight forwarders in place to ensure the smooth supply of goods from Europe and the rest of the world.
Mechanisms are in place with customers to ensure that unforeseen price rises affecting contracts can be passed on to the end customer.
We apply strict credit control procedures to clients to monitor their creditworthiness and to keep debts within a defined range.
Our supply chain is tested rigorously, both for financial strength and to ensure we have alternate routes (where available) to materials in the event of non-supply.
We maintain a dialogue with our workforce through an Employee Representation Group to ensure that all issues are discussed and that solutions are found with the involvement of the workforce.
Our banking facilities were renewed in full in the year, which the directors believe will be more than adequate for our expected needs.
To assist in monitoring the performance of the company the following key performance indicators are used:
2025 2024
£'000 £'000
Turnover 100,000 93,308
Profit before tax 16,585 14,967
Stock levels 11,132 10,404
Trade debtors 11,363 10,306
Net cash (cash less leases) 29,716 22,646
Staff costs 22,650 20,865
Number of employees 504 498
Future developments
Continuous improvement remains central to the Group's operations. Alongside ongoing product innovation, the business continues to review and enhance processes to improve quality, delivery performance, and profitability.
We remain committed to investing in our employees, communicating effectively with them to understand and provide the facilities and structure that they need. This means maintaining a fair and relevant pay framework and developing a training program that suits their needs. During the coming year we will build on these initiatives with projects to further improve operations, developing our own systems to enhance production flows and provide valuable real time data on the shop floor that will work hand in hand with the development program of our middle-managers. There will also be a focus on our internal branding, aiming to attract and retain the calibre of people that we need to help us move forwards.
We plan to further expand our solar array in early 2026, moving towards an even lower carbon footprint with sustainably produced electricity providing a significant percentage of our energy needs.
Section 172 of the Companies Act 2006 requires Directors to consider the interests of stakeholders and other matters in their decision making. When making decisions the Directors continue to regard the interests of the group's employees and other stakeholders, including customers, suppliers, creditors, strategic partners, and shareholders.
We also consider the impact of the group's activities on the community and the environment, and the factors which may affect the group's reputation. In this context, acting in good faith and fairly, the Directors consider what is most likely to promote the success of the group for its shareholders in the long term.
The board recognises that it is essential to build relationships and partner with our customers, suppliers and strategic partners. We engage with these stakeholders in an honest and ethical manner, promoting transparency in all that we do. We look to partner with customers and suppliers who share our corporate philosophy and commit to ethical business practices in a wide variety of areas (such as health and safety, employment practices, anti-bribery laws and trade regulations). We maintain a good and constant level of communication with all key stakeholders, particularly our employees, customers and suppliers and keep abreast of all relevant legislation in order to understand the issues to which we must have regard and act upon.
The effect of such actions over the financial year has been primarily to protect the group's profitability during a period of rapidly rising costs, particularly in steel. We have developed models to justify our price increases to our customers, linked to various indices, with an open book approach to assure them that the increases are only implemented to protect our margins and ensure that Don-Bur remains a going concern that will be able to serve them in the future.
Suppliers are seen as essential stakeholders and are treated with respect by the Directors of the group. Payment terms are clearly defined and suppliers are paid to these terms without fail.
Employee wellbeing has also been at the forefront of our processes this year. We have put pay rises in place to ensure that they have not been detrimentally affected by rising household costs, and have used professionals to gain feedback from them such that we better understand their needs.
The safety of employees also continues to be of prime concern with appropriate policies put in place and subjected to periodic review.
Operating safely and maintaining the health and safety of our employees, customers and neighbours while protecting the environment are priorities of the Board. Safety is part of the group's culture and every employee must abide by our H&S policies. The Directors are fully aware of their responsibilities to promote the success of the group in accordance with section 172 of the Companies Act 2006.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 September 2025.
The results for the year are set out on page 12.
Ordinary dividends were paid amounting to (£000s) - £8,758 (2024: £2,064). The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
When we are exposed to currency exchange risk we apply appropriate forward contracts to hedge our exposure.
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
It is group policy to maintain and develop employee involvement.
The directors are conscious that the expertise and dedication of our staff is the primary asset of the group. Regular meetings are held with employee representatives to discuss all aspects of the business and opportunities are given at these meetings for senior executives of the company to be questioned about matters which concern the employees.
Without the loyalty and commitment of all the people working in the group it would not have been possible to achieve the progress that has been made. The board is highly appreciative of this fact and would like to thank everyone for all their efforts.
The board recognises that it is essential to build relationships and partner with our customers, suppliers and strategic partners. We engage with these stakeholders in an honest and ethical manner, promoting transparency in all that we do. We look to partner with customers and suppliers who share our corporate philosophy and commit to ethical business practices in a wide variety of areas (such as health and safety, employment practices, anti-bribery laws and trade regulations). We maintain a good and constant level of communications with all key stakeholders, particularly our employees, customers and suppliers and keep abreast of all relevant legislation in order to understand the issues to which we must have regard and act upon.
Continuous improvement is at the heart of our operations. In addition to our product innovation, we are always looking for ways to improve processes which will enhance quality, ensure delivery on time, and improve profitability.
We remain committed to investing in our people and have already invested in a fairer pay framework, internal communications and employee training. During the coming year we intend to build on these initiatives with projects to improve the group further, focussing on investment in the middle management, more work to harmonise pay across all divisions, work to enhance our branding, all of which will attract and retain the calibre of people that we need to help us move forwards.
We are also investing in another large format laser cutter which will strengthen our fabrication department and bring new efficiencies.
Once again, we have a strong orderbook heading into the next year and the directors are confident that the group will still be profitable in the forthcoming 12 months and beyond. The full impact of the uncertainties outlined above still cannot be predicted with any certainty but the directors nonetheless are of the strong opinion that the group will continue to operate within its current and future financial parameters and so continue to meet its debts as they fall due.
The group's longer-term strategy for beyond 2025 is to continue to grow its market share (primarily through organic growth), to continue to invest in our internal systems (where the focus will be on stores processes and inventory), and to improve our quality through clearly defined processes. We aim to improve profitability and sustainability still further through the many opportunities available to become more efficient both through good management and prudent investment. As such, the directors believe the group to be a going concern and have adopted this assumption in preparing the financial statements.
In accordance with the company's articles, a resolution proposing that DJH Audit Limited be reappointed as auditor of the group will be put at a General Meeting.
The group's greenhouse gas emissions, energy consumption and intensity ratios for the year are summarised as follows:
All activities generating emissions are based in the UK, none are offshore.
Emissions stated above were calculated based on observed quantities of process inputs and conversion at the rates published within ‘UK Government GHG Conversion Factors for Group Reporting’ for 2025. Input observations were based, wherever practicable, on verifiable usage data. Where this proved impracticable, inputs were assessed through sampling of usage data and extrapolation based on costs incurred.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee and total gross emissions in metric tonnes CO2e per turnover. These are the recommended ratios for the sector.
The key sources of emissions are gas, electricity and travel.
Don-Bur has continued to manage its energy usage, and going forward continues to review and consider further actions inline with ESOS requirements
Actions taken in the current financial year include:
Gradual upgrade and replacement of lighting, switching to LED lights in all site locations, both in the workshops and offices.
Applying a preference for electric vehicles when adding to the company’s overall fleet.
We have audited the financial statements of Don-Bur (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the group;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with HMRC, relevant regulators and the group’s legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit for the year was (£000s) - £8,706 (2024 - £2,031).
Don-Bur (Holdings) Limited (“the company”) is a private limited company, limited by shares, domiciled and incorporated in England and Wales. The registered office is Mossfield Road, Adderley Green, Longton, Stoke on Trent, Staffordshire, England, ST3 5BW.
The group consists of Don-Bur (Holdings) Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold land at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Don-Bur (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries).
All financial statements are made up to 30 September 2025.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on completion of manufacture), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered
Interest income is recognised in profit or loss using the effective interest method.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
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.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, which include debtors, cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
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 Balance sheet. The assets of the plan are held separately from the group in independently administered funds.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets.
Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives.
Assets acquired by hire purchase are depreciated over their useful lives.
Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Where assets leased to a third party give rights approximating to ownership (finance lease), the lessor recognises as a receivable an amount equal to the net investment in the lease i.e. the minimum lease payments receivable under the lease discounted at the interest rate implicit in the lease. This receivable is reduced as the lessee makes capital payments over the term of the lease.
A finance lease gives rise to two types of income: profit or loss equivalent to the profit or loss
resulting from outright sale of the asset being leased, at normal selling prices, reflecting any
applicable discounts, and finance income over the lease term.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
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.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Stock provision
Estimates have been made in relation to the calculation of the stock provision. The calculation
requires the group to estimate the net realisable value, in order to compare to cost in assessing if any provisions against stock are required.
Warranty provision
Estimates have been made in relation to the calculation of the warranty provision. The calculation requires the group to estimate the cost of future repairs to trailer bodies.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2024 - 2).
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Included in cost of land and buildings is freehold land of (£000s) - £2,923 (2024 - £2,923) which is not depreciated.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Some land and buildings were revalued on 30 September 1998. The group had previously adopted the transactional provision of FRS 15 'Tangible Fixed Assets'. Whilst previous valuations have been retained, they have not been updated. From 1 October 1998 it is company policy not to revalue. No further adjustment has been made following the transition to FRS 102.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Details of the company's subsidiaries at 30 September 2025 are as follows:
Included in other debtors due after more than one year are amounts of £2,963 (2024: £3,591) in respect of amounts due under finance leases.
The group entered into financial leasing arrangements for a number of trailers. The average term of the finance leases is 10 years.
Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.
HSBC UK Bank PLC has a fixed and floating charge over all property, assets and future undertakings of the Company.
Obligations under finance leases and hire purchase contracts are secured against the assets to which they relate.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 - 10 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Contributions totalling (£000s) £94 (2024 - £109) were payable to the fund at the balance sheet date and are included in creditors.
All shares are eligible to receive dividends when declared and have full voting rights and full entitlement to return upon winding up or other distribution.
There has been a reclassification of shares on 16 May 2025. 29,312 ordinary shares have been reclassified to Ordinary E shares. 29,312 ordinary shares have been reclassified to Ordinary B shares.
The capital redemption reserve records the nominal value of shares cancelled by the company.
Merger reserve
The merger reserve arose on the business acquisition and presents the difference of the nominal value of shares over the shares acquired.
The retained earnings relate to the accumulated results of the business, less dividends declared and adjusted for transfer to/from other reserves.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The parent company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
During the year payroll costs of (£000s) £314 (2024 - £265) and expenses of (£000s) £5(2024 - £1) were paid on behalf of a company under common control and re-charged to the group. Net receipts of (£000s) £328 (2024 - £257) have been received from the related party during the year.
At the balance sheet date there was (£000s) £Nil due from the related party (2024 - £14).
At the balance sheet date there was (£000s) £6 due from the related party (2024 - £Nil).