REGISTERED NUMBER: 07805491 (England and Wales)

Davies Salvage Limited

Unaudited Financial Statements

for the Year Ended 31 October 2025

Page

Chartered accountants' report

1

Statement of financial position

2

to

3

Notes to the financial statements

4

to

8

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Statement of financial position. Readers are cautioned that the Income statement and certain other primary statements and the Report of the directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Davies Salvage Limited for the year ended 31 October 2025 which comprise the Statement of income and retained earnings, Statement of financial position and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of Davies Salvage Limited, as a body, in accordance with the terms of our engagement letter dated 24 May 2019. Our work has been undertaken solely to prepare for your approval the financial statements of Davies Salvage Limited and state those matters that we have agreed to state to the Board of Directors of Davies Salvage Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Davies Salvage Limited and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Davies Salvage Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Davies Salvage Limited. You consider that Davies Salvage Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Davies Salvage Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Moore Thompson

Bank House

Broad Street

Spalding

Lincolnshire

PE11 1TB

6 July 2026

Fixed assets

Intangible assets

5

-

-

Tangible assets

6

421,293

463,450

421,293

463,450

Current assets

Stocks

37,476

105,773

Debtors

7

460,361

433,012

Cash at bank and in hand

194,237

162,884

692,074

701,669

Creditors

Amounts falling due within one year

8

279,748

313,510

Net current assets

412,326

388,159

Total assets less current liabilities

833,619

851,609

Creditors

Amounts falling due after more than one year

9

(232,840

)

(292,414

)

Provisions for liabilities

(101,362

)

(112,299

)

Net assets

499,417

446,896

Capital and reserves

Called up share capital

11

100

100

Retained earnings

499,317

446,796

Shareholders' funds

499,417

446,896

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of income and retained earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 6 July 2026 and were signed on its behalf by:

Mr J P Davies - Director

Mrs A J H Davies - Director

1.	Statutory information

Davies Salvage Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number:

07805491

Registered office:

Langar North Trading Estate

Harby Road

Langar

Nottingham

NG13 9HY

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

2.	Statement of compliance

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	Accounting policies

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and VAT.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and

sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing

the stock to its present location and condition.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

Goodwill

-

20% Straight line basis

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Depreciation

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.

Freehold property

-

20% on reducing balance

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Office equipment

-

25% on a straight line basis

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset.

Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

4.	Employees and directors

The average number of employees during the year was 15 (2024 - 14 ) .

5.	Intangible fixed assets

Goodwill

£

Cost

At 1 November 2024

and 31 October 2025

16,984

Amortisation

At 1 November 2024

and 31 October 2025

16,984

Net book value

At 31 October 2025

-

At 31 October 2024

-

6.	Tangible fixed assets

Freehold

Plant and

Motor

Office

property

machinery

vehicles

equipment

Totals

£

£

£

£

£

Cost

At 1 November 2024

44,814

460,563

265,455

5,886

776,718

Additions

5,550

24,520

47,875

-

77,945

Disposals

-

-

(34,743

)

-

(34,743

)

At 31 October 2025

50,364

485,083

278,587

5,886

819,920

Depreciation

At 1 November 2024

30,562

163,727

113,755

5,224

313,268

Charge for year

3,961

48,236

44,111

662

96,970

Eliminated on disposal

-

-

(11,611

)

-

(11,611

)

At 31 October 2025

34,523

211,963

146,255

5,886

398,627

Net book value

At 31 October 2025

15,841

273,120

132,332

-

421,293

At 31 October 2024

14,252

296,836

151,700

662

463,450

7.

Debtors

2025

2024

£

£

Amounts falling due within one year:

Trade debtors

48,166

177,747

Amounts owed by group undertakings

-

52,406

Directors' current accounts

371,063

167,118

Prepayments and accrued income

5,487

5,137

424,716

402,408

2025

2024

£

£

Amounts falling due after more than one year:

S455 recoverable

35,645

30,604

Aggregate amounts

460,361

433,012

8.

Creditors: amounts falling due within one year

2025

2024

£

£

Bank loans and overdrafts

20,069

30,779

Hire purchase contracts

85,360

84,460

Trade creditors

25,536

60,927

Corporation tax

81,858

35,072

Social security and other taxes

5,948

4,645

Pensions creditor

1,320

1,218

VAT

53,310

56,645

Accruals and deferred income

6,347

39,764

279,748

313,510

9.

Creditors: amounts falling due after more than one year

2025

2024

£

£

Bank loans and overdrafts

-

12,147

Hire purchase contracts

232,840

280,267

232,840

292,414

10.	Secured debts

The following secured debts are included within creditors:

2025

2024

£

£

Hire purchase contracts

318,200

364,727

11.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

100

Ordinary shares

£1

100

100

12.	Directors' advances, credits and guarantees

The joint directors loan became overdrawn in the year. The balance as at 31 October 2025 was £371,063 (2024: £167,118 ). Interest has been charged at 2.25% and 3.75%.