The directors present the strategic report for the year ended 31 December 2025.
W.G. Davies Group Limited continues to operate as a franchised main dealer for MAN Truck & Bus Limited, providing specialist vehicle maintenance, servicing and spare parts supply. The group operates from three key locations across South Wales—Cardiff, Swansea and Sageston (Tenby)—and employs more than eighty skilled professionals.
Founded in 1949, W.G. Davies has developed from a family haulage business into a leading commercial vehicle service provider supporting customers across a wide range of sectors including logistics, construction, municipal services, petrochemicals and emergency services. The business remains firmly rooted in its family values, placing strong emphasis on long-term customer relationships, technical expertise and dependable service delivery.
During 2025 the group continued to trade in a competitive but stable commercial vehicle service market. Turnover for the year was £10,491,000 (2024: £10,804,440). Despite the slight reduction in revenue compared with the previous year, the group achieved an increase in gross profit to £2,914,101 (2024: £2,855,267), reflecting improved margin performance within the core parts and service operations.
Operating profit for the year was £530,405 (2024: £561,444). This reflects continued investment in facilities, systems and people to ensure the company maintains the high operational standards required within the MAN Truck & Bus dealer network and continues to deliver excellent service to its customers.
Leadership Transition
A significant milestone during the year was the retirement of Malcolm Jones, who had served as Operations Director and been closely associated with W.G. Davies for many years. Malcolm first became involved with the business in the mid-1990s and returned to the company in 2007 as Operations Director, playing a pivotal role during an important period in the company’s development.
Over the past two decades Malcolm has been instrumental in strengthening the operational foundations of the business, helping guide the company through periods of challenge while supporting its long-term growth. His leadership, experience and commitment to developing people within the organisation have made a lasting contribution to the culture and success of W.G. Davies.
Beyond his professional role, Malcolm has been a trusted colleague and friend to many within the business. His ability to build relationships, mentor colleagues and maintain a clear long-term vision for the company has been greatly valued by both employees and customers alike.
On behalf of the board, employees and customers, the directors would like to place on record their sincere appreciation for Malcolm’s dedication and many years of service, and wish him a long, healthy and well-deserved retirement.
Following Malcolm’s retirement, the company strengthened its leadership structure with the appointment of two new directors:
Andrew Dyer – Commercial Director
Daniel Jones – Aftersales Director
These appointments provide clear strategic focus across both commercial development and operational performance, supporting the next phase of the group’s continued growth.
W.G. Davies operates in a competitive and evolving commercial vehicle service sector. Key risks facing the business include inflationary pressures affecting labour, energy and operational costs, recruitment and retention of skilled technicians, supply chain constraints affecting parts availability and the increasing technological complexity of modern commercial vehicles.
The group mitigates these risks through strong operational management, continued investment in staff training and development, and maintaining close relationships with MAN Truck & Bus Ltd and key fleet customers.
Customer service remains central to the company’s strategy. Since 2009 the business has conducted more than 1,900 structured customer interviews, enabling continuous improvement in service delivery and helping maintain consistently high levels of customer satisfaction and customer retention.
Investment in People and Infrastructure
Workforce Development
The group continues to invest significantly in its workforce, recognising that its employees remain its most valuable asset. A large proportion of staff have long service within the organisation, reflecting the strong culture and stability of the business.
Ongoing investment in technical training, apprenticeships and professional development ensures that the company’s workforce remains highly skilled and capable of supporting the increasingly advanced technologies found in modern commercial vehicles.
Technological and Digital Development
Following the successful implementation of the X-Power dealer management system, the group continued to develop its digital capabilities during the year.
Improvements in operational systems have enhanced workshop scheduling, inventory management, service reporting and operational data analysis. These developments enable improved efficiency within the business while supporting better communication and service delivery to customers.
Infrastructure Investment
W.G. Davies continues to maintain modern facilities across its depots in Cardiff, Swansea and Sageston. Each site is equipped with advanced workshop equipment and specialist diagnostic tools, enabling the company to provide a comprehensive range of maintenance and repair services for commercial vehicles ranging from light vans to heavy articulated vehicles.
Ongoing investment ensures that the business continues to meet the operational standards required within the MAN dealer network while maintaining sufficient capacity to support customers across South Wales.
Sustainability and Environmental Responsibility
The group remains committed to reducing its environmental impact and operating responsibly within the communities it serves.
W.G. Davies continues to work towards its long-term objective of achieving carbon neutrality by 2030. Investment in solar energy systems, biomass heating and energy-efficient lighting across its facilities continues to reduce energy consumption and improve environmental performance.
The group also promotes responsible waste management, recycling initiatives and sustainable procurement practices wherever possible.
Future Outlook
Looking ahead, the directors remain confident in the long-term prospects of the business.
The group will continue to focus on strengthening long-term service partnerships with fleet operators, improving operational efficiency across its workshop network and investing in digital systems that support data-driven management and customer service.
With a strong customer base, modern facilities and a highly experienced workforce, W.G. Davies is well positioned to continue delivering industry-leading service standards and supporting the needs of commercial vehicle operators across South Wales.
KPI | 2025 | 2024 | Movement |
Turnover | £10,491,000 | £10,804,440 | -£313,440 |
Gross Profit | £2,914,101 | £2,855,267 | +£58,834 |
Gross Profit Margin | 27.77% | 26.43% | +1.34% |
Operating Profit | £530,405 | £561,444 | -£73,348 |
Despite a modest reduction in turnover, the improvement in gross profit margin reflects the strength of the group's core service and parts operations and continued focus on operational efficiency.
Conclusion
2025 represented an important year of transition for W.G. Davies Group Limited, marked by leadership change and continued operational development.
The appointment of new directors strengthens the group's governance and strategic leadership while maintaining the values and service standards that have defined the business for more than seventy-five years.
The directors remain confident in the group's financial stability and long-term growth prospects, supported by strong customer relationships, continued investment in people and technology, and a clear strategy for sustainable development.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £134,500. 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:
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group 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;
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of W.G. Davies Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, 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 company through discussions with directors and other management, and from our commercial knowledge and experience of the company;
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 company’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 parent 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 parent 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 parent company and the parent 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 £134,500.
W.G. Davies Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 11 St. Davids Road, Swansea Enterprise Park, Morriston Swansea City And, Swansea, United Kingdom, SA6 8QL.
The group consists of W.G. Davies Group 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 £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The Company was incorporated on 13 October 2023 and took control of its subsidiary at the same date who were both owned by the same ultimate shareholder.
Because the ultimate shareholder was the same before and after the transaction, the acquisition of the investment by W.G. Davies Group Limited was not accounted for as a business combination under FRS102. Instead, it was accounted for using the merger accounting method.
The share capital in the consolidated financial statements is that of W.G. Davies Group Limited and the other reserves represent the combined reserves of this company and the acquired subsidiary.
The consolidated group financial statements consist of the financial statements of the parent company W.G. Davies Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
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 and parent company have 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.
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which 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 dispatch of the goods), 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.
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 profit and loss account.
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, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. 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 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 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 balance sheet 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 and 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 and bank loans, 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.
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 profit and loss account 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 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Biomass income is recognised at the fair value of the consideration received or receivable when there is reasonable assurance that the conditions will be met and the income will be received. Payments are made for 7 years and are based on the amount of renewable heat made by the heating system. This is paid through the Non-Domestic RHI scheme.
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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
As described in note 11, leasehold properties are measured using the revaluation method and as such this requires significant estimation. The valuation of the leasehold properties has been based on formal revaluations competed by property experts on 15th April 2025. The directors have considered changes in the valuation of freehold land and buildings since the year end, they do not consider there to be any material changes.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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 within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:
Included within Land and Buildings are two properties which are held at valuation. One property held is Freehold which has been revalued to £1,450,000 on 15/04/2025 by Certus Property Consultants, independent valuers not connected with the company. This property has a carrying value of at the year end of £1,438,400. The valuation conforms to RICS standards and was based on recent market transactions on arm's length terms for similar properties. The second property held is Leasehold and has been revalued to £1,750,00 on 15/04/2025 by Certus Property Consultants, independent valuers not connected with the company. This property has a carrying value of at the year end of £1,727,502. The valuation conforms to RICS standards and was based on recent market transactions on arm's length terms for similar properties
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 31 December 2025 are as follows:
Bank loans and overdrafts of £302,324 (2024 - £445,811) are secured by fixed and floating charges over the group's assets.
Also included within bank loans and overdrafts are amounts of £568,252 (2024 - £326,798) in respect of invoice discounting facilities. These amounts are secured by a fixed charge on all purchased debts.
Amounts due under hire purchase contracts are secured against the assets to which they relate.
Bank loans are secured by fixed and floating charges over the company's assets.
Amounts due under hire purchase contracts are secured against the assets to which they relate.
The bank loans are secured by a fixed and floating charge over the assets of the company.
There is a personal guarantee of £50,000 dated 21/11/2023 between the company and Michael Roger Davies and Deborah Davies against one of the loans.
Long term bank debt is in the form of five secured loans which are monthly repayment (capital and interest) instruments with various banks. The loans are set to mature between January 2026 and April 2040 at an interest rate varying between 2.05% and 14.15% per annum.
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 3 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:
Deferred income is included in the financial statements as follows:
The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Revaluation reserve is a non-distributable reserve that includes the increase on revaluation of leasehold property performed in 2024.
The retained earnings reserve holds the retained earnings of the company, after the deduction of any dividends paid in the period.
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: