REGISTERED NUMBER: 07266151 (England and Wales)

DAVID DAVIES RESOURCES LTD

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Income and Retained Earnings

9

Statement of Financial Position

10

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

15

DIRECTORS:

Mr A C Davies

Mr M J Davies

Mr R D Davies

SECRETARY:

Mrs M A K Davies

REGISTERED OFFICE:

New House Farm

Minsterley

Shrewsbury

Shropshire

SY5 0HR

REGISTERED NUMBER:

07266151 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

St Andrews House

Yale Business Village

Ellice Way

Wrexham

LL13 7YL

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

REVIEW OF THE BUSINESS

The Directors are satisfied with the results for the year given the competitive pressures that prevailed in the market place. During the year the company invested in buildings, plant and equipment to commence free range egg production.

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

2025

2024

£

Turnover

17,554,186

15,873,547

Operating profit

1,557,973

974,296

Profit before tax

1,058,953

510,309

Shareholders' funds

9,104,037

8,364,714

PRINCIPAL RISKS AND UNCERTAINTIES

The general risks and uncertainties facing the company are the general competitive pressures in the market place, together with those associated with the Poultry industry.

FUTURE DEVELOPMENTS

The Company will continue to focus on improving margins and to grow profits. Further expansion of the free range egg production is ongoing.

ON BEHALF OF THE BOARD:

Mr M J Davies - Director

30 April 2026

The directors present their report with the financial statements of the company for the year ended 31 May 2025.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of Provision of staff, production, packing and selling of eggs and production and selling of milk.

DIVIDENDS

Final dividends were paid during the year of £NIL: (2024: £NIL).

RESEARCH AND DEVELOPMENT

A Research and Development claim is to be made for the year ended 31 May 2025. This claim will increase the Taxable Trading loss. This loss will be carried forward.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2024 to the date of this report.

Mr A C Davies

Mr M J Davies

Mr R D Davies

STRATEGIC REPORT

The company has chosen in accordance with Companies Act 2006,s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008,Sch.7, to be contained in the directors' report. It has done so in respect of risks and future developments.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

Mr M J Davies - Director

30 April 2026

Opinion

We have audited the financial statements of David Davies Resources Ltd (the 'company') for the year ended 31 May 2025 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 May 2025 and of its profit for the year then ended;

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

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

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

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

- Reviewing minutes of meetings of those charged with governance;

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

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

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

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

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

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the 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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Timothy Mitchell BSc FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

St Andrews House

Yale Business Village

Ellice Way

Wrexham

LL13 7YL

30 April 2026

TURNOVER

17,554,186

15,873,547

Cost of sales

13,000,729

12,147,198

GROSS PROFIT

4,553,457

3,726,349

Administrative expenses

2,995,484

2,752,053

OPERATING PROFIT

4

1,557,973

974,296

Interest receivable and similar income

1,226

2,218

1,559,199

976,514

Interest payable and similar expenses

5

500,246

466,205

PROFIT BEFORE TAXATION

1,058,953

510,309

Tax on profit

6

319,630

(40,028

)

PROFIT FOR THE FINANCIAL YEAR

739,323

550,337

Retained earnings at beginning of year

8,363,714

7,813,377

RETAINED EARNINGS AT END OF YEAR

9,103,037

8,363,714

FIXED ASSETS

Intangible assets

7

6,012

9,574

Tangible assets

8

15,137,726

16,484,283

15,143,738

16,493,857

CURRENT ASSETS

Stocks

9

1,652,880

1,614,452

Debtors

10

4,808,280

4,527,530

Cash at bank

220,161

20,674

6,681,321

6,162,656

CREDITORS

Amounts falling due within one year

11

8,288,782

7,025,344

NET CURRENT LIABILITIES

(1,607,461

)

(862,688

)

TOTAL ASSETS LESS CURRENT LIABILITIES

13,536,277

15,631,169

CREDITORS

Amounts falling due after more than one year

12

(3,954,953

)

(7,108,798

)

PROVISIONS FOR LIABILITIES

16

(477,287

)

(157,657

)

NET ASSETS

9,104,037

8,364,714

CAPITAL AND RESERVES

Called up share capital

17

1,000

1,000

Retained earnings

18

9,103,037

8,363,714

SHAREHOLDERS' FUNDS

9,104,037

8,364,714

The financial statements were approved by the Board of Directors and authorised for issue on 30 April 2026 and were signed on its behalf by:

Mr M J Davies - Director

Cash flows from operating activities

Cash generated from operations

1

1,434,293

3,315,378

Interest paid

(500,246

)

(466,205

)

Net cash from operating activities

934,047

2,849,173

Cash flows from investing activities

Purchase of intangible fixed assets

-

(4,500

)

Purchase of tangible fixed assets

(530,678

)

(7,046,675

)

Sale of tangible fixed assets

156,484

-

Interest received

1,226

2,218

Net cash from investing activities

(372,968

)

(7,048,957

)

Cash flows from financing activities

New loans in year

1,570,762

4,564,301

Capital repayments in year

(1,616,554

)

(941,418

)

Net cash from financing activities

(45,792

)

3,622,883

Increase/(decrease) in cash and cash equivalents

515,287

(576,901

)

Cash and cash equivalents at beginning of year

2

(295,126

)

281,775

Cash and cash equivalents at end of year

2

220,161

(295,126

)

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

1,058,953

510,309

Depreciation charges

1,782,079

1,646,819

Profit on disposal of fixed assets

(57,766

)

-

Finance costs

500,246

466,205

Finance income

(1,226

)

(2,218

)

3,282,286

2,621,115

Increase in stocks

(38,428

)

(420,529

)

(Increase)/decrease in trade and other debtors

(280,750

)

284,197

(Decrease)/increase in trade and other creditors

(1,528,815

)

830,595

Cash generated from operations

1,434,293

3,315,378

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 May 2025

31.5.25

1.6.24

£

£

Cash and cash equivalents

220,161

20,674

Bank overdrafts

-

(315,800

)

220,161

(295,126

)

Year ended 31 May 2024

31.5.24

1.6.23

£

£

Cash and cash equivalents

20,674

281,775

Bank overdrafts

(315,800

)

-

(295,126

)

281,775

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.6.24

Cash flow

At 31.5.25

£

£

£

Net cash

Cash at bank

20,674

199,487

220,161

Bank overdrafts

(315,800

)

315,800

-

(295,126

)

515,287

220,161

Debt

Finance leases

(2,179,321

)

807,280

(1,372,041

)

Debts falling due within 1 year

(252,000

)

(3,244,190

)

(3,496,190

)

Debts falling due after 1 year

(5,736,757

)

2,482,702

(3,254,055

)

(8,168,078

)

45,792

(8,122,286

)

Total

(8,463,204

)

561,079

(7,902,125

)

1.	STATUTORY INFORMATION

David Davies Resources Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

At the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

The financial statements of the company are consolidated in the financial statements of Andrew C Davies Holdings Limited. These consolidated financial statement are available from its registered office, Astley Grange, Astley, Shrewsbury, Shropshire, England, SY4 4BS

Turnover

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

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

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Basic Payment entitlement are being amortised evenly over its estimated useful life of 5 years.

Tangible fixed assets

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

Improvements to property

-

at varying rates on cost

Plant and machinery

-

at variable rates on reducing balance

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of the finished goods comprises of direct materials and labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell: the impairment loss is recognised immediately in the profit and loss. Agricultural produce harvested from biological assets are measured at the point of harvest at the lower of cost and estimated selling price less costs to complete.

Financial instruments

Cash and cash equivalents:

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

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

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

Hire purchase and leasing commitments

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

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

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

Retirement benefits

The company operates a defined contribution pension scheme.

Contributions payable to the company's pension scheme are charged to the profit and loss in the period to which they relate.

Significant judgements and estimates

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.

The company depreciates tangible assets over their estimated useful lives based on historic performance. The actual lives can vary. Judgement is applied also in the residual values of plant and equipment. When determining the residual value the directors aim to assess the amount that the asset would currently obtain if the asset were disposed using market prices where possible.

3.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,393,765

2,161,933

Social security costs less statutory pay reclaimed

244,193

199,800

Pension cost

66,446

63,833

2,704,404

2,425,566

The key management personnel comprise of the directors

The average number of employees during the year was as follows:

2025

2024

Average number of employees

82

79

2025

2024

£

£

.

Directors' remuneration

209,307

188,485

No Directors are accruing pension benefits.

4.	OPERATING PROFIT

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

2025

2024

£

£

Contract labour

467,770

295,748

Depreciation - owned assets

1,482,729

1,373,548

Depreciation - assets on hire purchase contracts

295,788

270,533

Profit on disposal of fixed assets

(57,766

)

-

Basic payment scheme entitlements amortisation

3,562

2,737

Auditors' remuneration

7,950

7,500

Auditors' remuneration

- underprovided previous years

200

-

Increase in stock

38,426

420,529

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank charges and loan interest

430,807

419,513

HP interest

69,439

46,692

500,246

466,205

6.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2025

2024

£

£

Deferred tax

319,630

(40,028

)

Tax on profit

319,630

(40,028

)

Reconciliation of total tax charge/(credit) included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

£

Profit before tax

1,058,953

510,309

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

264,738

127,577

Effects of:

Expenses not deductible for tax purposes

2,709

363

Depreciation in excess of capital allowances

2,400,691

178,038

R&D Claim

-

(285,940

)

Group Surrender - losses

-

67,960

Tax losses brought forward

(2,348,508

)

(128,026

)

Total tax charge/(credit)

319,630

(40,028

)