REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2023 |
FOR |
C.P. DAVIDSON & SONS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2023 |
FOR |
C.P. DAVIDSON & SONS LIMITED |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 30 April 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Statement of Financial Position | 12 |
Statement of Changes in Equity | 13 |
Notes to the Financial Statements | 14 |
C.P. DAVIDSON & SONS LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 April 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
BANKERS: |
26 Market Street |
Chorley |
Lancashire |
PR7 2RX |
SOLICITORS: |
Unit C1 |
Hurstwood Court |
Duttons Way |
Blackburn |
BB1 2QR |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
STRATEGIC REPORT |
for the Year Ended 30 April 2023 |
The directors present their strategic report for the year ended 30 April 2023. |
REVIEW OF BUSINESS |
The results of the company for the year show a profit on ordinary activities before taxation of £519,951 (2022: £961,733). |
The directors are satisfied with the operating performance of the company for the year. They are mindful that the UK automotive industry is highly competitive, which has given rise to aggressive pricing structures resulting in a squeeze on margins. It is important that management regularly reviews euro currency rates, market pricing and contract profitability generally. |
The directors are conscious that Covid-19, Brexit and the war in Ukraine have affected the company, as it has led to increased import and transport costs, and has also affected delivery timescales. These factors have also led to changes in staffing levels, however we feel these issues have been addressed. |
Several factors have contributed to the decrease in the company's profits this year compared to the previous year. One significant factor is the rise in interest rates, which has led to higher borrowing costs for the company, affecting its overall financial health. With higher interest expenses, a larger portion of the company's revenue is allocated to servicing debt, leaving less room for net profit. |
Additionally, the company has faced a considerable challenge due to a substantial increase in equipment costs, which surged by 30% compared to the previous year. This increase can be attributed to various factors, including inflation, supply chain disruptions, or increased demand for specific types of equipment. The higher costs have compelled the company to adjust its hire rates to accommodate the increased expenses. However, the company faced limitations in raising hire rates to a level that would fully offset the spike in equipment costs, thereby constraining its ability to generate the same level of profit as the previous year. |
The combination of rising interest rates and a significant increase in equipment costs has created a challenging financial environment for the company. While it has made efforts to pass on some of the increased costs to customers through higher hire rates, there's a limit to how much rates can be raised without negatively impacting competitiveness or losing customers. As a result, the company finds itself in a situation where the margin between revenue and expenses has narrowed, leading to reduced profitability. |
Looking ahead to 2024, the company is optimistic about the potential for interest rates to decrease. This expectation of lower interest rates should alleviate some of the financial pressure on the company, allowing for improved margins and, consequently, better profitability. However, the company acknowledges the need to carefully manage its cost structure, including equipment expenses and operational efficiency, to ensure sustained profitability in the future. |
The directors will continue to concentrate their efforts on monitoring revenue streams and on improving efficiency in all the company's operations. As part of this strategy, the directors intend to increase the size of its vehicle hire fleet and take advantage of emerging market opportunities that are arising due to the Euro-6 emission standard. Customer service remains a priority. |
The company's key financial performance indicators during the year were as follows: |
2023 | 2022 |
£'000 | £'000 |
Turnover | 8,525 | 11,304 |
Gross profit | 1,597 | 1,905 |
Operating profit | 694 | 1,132 |
EBITDA | 2,352 | 2,688 |
Net assets | 2,797 | 2,712 |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
STRATEGIC REPORT |
for the Year Ended 30 April 2023 |
The directors are optimistic that the level of business activity and profitability can be sustained in the forthcoming financial year, despite the lingering effects of Covid-19, Brexit and the war in Ukraine. The business has continued to operate successfully throughout 2022 and into 2023 despite the increased cost of borrowing, rising utility costs and pressure on wages. Cashflow remains good and the company has not needed to rely on Government grants or incentives. The company has rigorous Heath & Safety procedures in operation and continues to train and support it's employees and have benefitted from improved staff retention during 2022 and 2023. The Board would like to thank staff for their endeavours during this difficult economic and social period. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company uses various financial instruments, which include cash and asset financing arrangements, together with other items such as trade debtors and trade creditors that arise directly from its operations. |
The existence of these financial instruments exposes the company to a number of financial risks. These are mainly liquidity risk, currency risk and credit risk. The directors review and agree policies for managing each of these risks and they are summarised below. |
Liquidity risk |
Liquidity risk is the risk that the company will encounter difficulty in meeting obligations associated with financial liabilities. The directors manage liquidity risk by maximising cash generation from its operations and short-term flexibility is achieved through the company's bank overdraft facility. |
Currency risk |
The company purchases products from overseas suppliers and is thereby exposed to risk in relation to foreign currency rate fluctuations. Any impact of Brexit and the war in Ukraine on the company's supply chain and costings is expected to be managed by forward planning and review of pricing structures during 2023. |
The directors do not trade speculatively in derivatives or similar instruments. |
Credit risk |
The company's trade debtors relate to amounts owed mainly by local authorities and UK corporations. Given the size and stability of the core debtors, the directors do not believe that credit risk to the company is significant. However, the directors carefully monitor any default credit risk on an ongoing basis and have very few bad or doubtful debts. |
ON BEHALF OF THE BOARD: |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 April 2023 |
The directors present their report with the financial statements of the company for the year ended 30 April 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the supply of vehicles and vehicle parts, the hire of vehicles and equipment and the repair and maintenance of vehicles. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 April 2023 will be £325,200 (2022: £600,000). |
DIRECTORS |
Other changes in directors holding office are as follows: |
DONATIONS |
A £25,000 donation was made during the year to a local registered youth charity. |
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. |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 April 2023 |
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. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
C.P. DAVIDSON & SONS LIMITED |
Opinion |
We have audited the financial statements of C.P. Davidson & Sons Limited (the 'company') for the year ended 30 April 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and 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 30 April 2023 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
C.P. DAVIDSON & SONS LIMITED |
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 four, 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
C.P. DAVIDSON & SONS LIMITED |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- we identified the laws and regulations applicable to the company through discussions with directors and other management, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on it's operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation, employment legislation and Health and Safety regulations. |
- we enquired of the directors and reviewed correspondence with HMRC for evidence of non-compliance with laws and regulations. We also reviewed controls the directors have in place to ensure compliance. |
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. |
- performed analytical procedures to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias. |
- we reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above; |
- we enquired of the directors about actual and potential litigation and claims. |
Due to inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
C.P. DAVIDSON & SONS LIMITED |
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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Douglas Bank House |
Wigan Lane |
Wigan |
Lancashire |
WN1 2TB |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
INCOME STATEMENT |
for the Year Ended 30 April 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
694,289 | 1,113,597 |
Other operating income |
OPERATING PROFIT |
Interest receivable and similar income |
713,204 | 1,132,111 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION | 6 |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 30 April 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
STATEMENT OF FINANCIAL POSITION |
30 April 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 April 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 May 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 April 2023 |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 30 April 2023 |
1. | STATUTORY INFORMATION |
C.P. Davidson & Sons Limited is a |
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 modified, where appropriate, to include certain items at fair value. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Preparation of consolidated financial statements |
The financial statements contain information about C.P. Davidson & Sons Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, P.J.D. (Holdings) Limited. |
Related party exemption |
The 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. |
Judgements and sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions concerning the future. The resulting accounting estimates and assumptions may not equal the related actual results. |
The key source of estimation uncertainty at the end of the reporting period that has a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year is in relation to depreciation of motor vehicles used for hire. The directors estimate the useful lives to be 7 years for such vehicles. Changes in technological developments and expected usage of such vehicles could impact their economic useful lives; therefore future depreciation charges could be revised. |
The year end stock figure includes a provision made against certain old or slow moving stock. Whilst this includes a significant element of judgement this is unlikely to lead to a material effect on the value of stock. |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at fair value of the consideration received or receivable, net of discounts and value added tax. Turnover includes revenue earned from the sale of vehicles, from contracts for the supply of vehicles, from the hire of vehicles and equipment and from vehicle repairs and maintenance services. |
Turnover from the sale of vehicles is recognised when the significant risks and rewards of ownership of the vehicles have transferred to the buyer. This is usually when the vehicles have been delivered to customers such that the risks and rewards of ownership have been transferred to them. |
Turnover from hire rentals of vehicles and equipment is recognised on a straight line basis over the hire term. |
Turnover from vehicle repair and maintenance services is recognised when the service has been undertaken. |
Cost of sales includes the expenditure relating to the estimated cost of self-insured warranties offered to customers as part of the sale of a vehicle beyond those provided by the manufacturer. |
Income from contract activity is recognised as the contract progresses, such that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue is measured at the fair value of the work performed by reference to the amounts chargeable to customers, excluding Value Added Tax. Income not billed to customers at the balance sheet date is included in debtors as amounts recoverable on incomplete contracts. Payments on account received, as progress payments on a contract, are included in creditors. |
Tangible fixed assets |
Tangible fixed asset are measured at cost less depreciation and any impairment. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Plant and machinery | 20% on reducing balance |
Fixtures and fittings | 20% reducing balance, 33.33% straight line |
Vehicles on rental | 14.3% straight line, 33.33% straight line |
Assets under construction are stated at initial costs plus other direct costs incurred to 30 April 2023 necessary to bring the assets into operational use. They are not depreciated until the accounting period in which they are brought into use. |
Impairment of assets |
At each reporting date assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the profit or loss. |
If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset in prior periods. A reversal of an impairment loss is recognised immediately in the profit or loss. |
Investments in subsidiaries |
Investment in subsidiary undertakings are recognised at cost, less provision for permanent diminution in value. |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making allowance for obsolete and slow moving items. |
Cost is calculated using the average stock method and includes direct materials and where applicable, direct labour costs and an appropriate proportion of overhead expenses bringing stocks to their present location and condition. |
Financial instruments |
Trade and other debtors and trade creditors are measured at the transaction price and thereafter stated at amortised cost using effective interest rate method, less impairment losses. |
Other financial assets and liabilities shall be measured at amortised cost using the effective interest rate. Financial assets and liabilities that have no stated interest rate and are payable within one year shall be measured at the undiscounted amount due. Amounts due to and from related undertakings, including directors, are repayable on demand and are measured at the undiscounted amount due. |
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 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 |
Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit. |
Foreign currencies |
Transactions in foreign currency are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account. Non monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. |
Hire purchase and leasing commitments |
Fixed assets held under hire purchase contracts and finance leases are capitalised in the balance sheet at cost and fair value respectively and an appropriate provision is made for depreciation. The corresponding liabilities under such arrangements are included in creditors. |
Hire purchase repayments and finance lease payments are apportioned between finance charges and the reduction of the finance obligations using the effective interest method so as to achieve a constant rate of interest on the remaining balance of the relevant liabilities. |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Production | 22 | 25 |
Administration | 6 | 6 |
Sales, marketing and distribution | 6 | 6 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Hire purchase |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
6. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Over provided in |
prior years | (25 | ) | (1,961 | ) |
Total current tax |
Deferred tax: |
Deferred tax current year |
Deferred tax prior year | - | (755 | ) |
Total deferred tax |
Tax on profit |
Reconciliation of total tax charge 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: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Fixed asset differences | (2,887 | ) | (4,384 | ) |
Remeasurement of deferred tax for changes in tax rates. | 11,761 | 150,763 |
Adjustment to tax charge in respect of previous periods - deferred tax | - | (755 | ) |
Total tax charge | 110,255 | 326,620 |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
B Ordinary shares of 1 each |
Final |
9. | TANGIBLE FIXED ASSETS |
Fixtures | Assets |
Plant and | and | Vehicles | under |
machinery | fittings | on rental | construction | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 May 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 April 2023 |
DEPRECIATION |
At 1 May 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
The net book value of tangible fixed assets includes £3,771,746 (2022: £4,935,092) in respect of assets held under hire purchase contracts. |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 May 2022 |
and 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
Subsidiary |
Principal activity |
% Holding |
Direct/ indirect Holding |
CPD Sales Limited | Dormant | 100 | Direct |
CPD Hire Limited | Dormant | 100 | Direct |
CPD Support Limited | Dormant | 100 | Direct |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
11. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
Work-in-progress |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts recoverable on |
contracts |
Other debtors |
Directors' current accounts | 198,983 | - |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 15) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | - | 13,944 |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 15) |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
15. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
In more than five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Hire purchase | 5,794,531 | 5,233,197 |
Hire purchase obligations are secured on the assets concerned. |
There is an unlimited cross guarantee for borrowings between the company and its holding company, PJD (Holdings) Limited. |
17. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 681,567 | 628,178 |
Deferred |
tax |
£ |
Balance at 1 May 2022 |
Provided during year |
Balance at 30 April 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
A Ordinary | 1 | 1 | 1 |
B Ordinary | 1 | 49 | 49 |
C Ordinary | 1 | 49 | 49 |
99 | 99 |
The shares rank pari passu except that dividends may be declared at variable rates on the different classes of shares. |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 May 2022 |
Profit for the year |
Dividends | ( |
) |
At 30 April 2023 |
20. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the schemes and amounted to £92,293 (2022: £83,178). At the year end £7,491 (2022: £Nil) remains outstanding. |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 30 April 2023 and 30 April 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year | ( |
) | ( |
) |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
Balance outstanding at start of year | ( |
) | ( |
) |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
Balance outstanding at start of year | ( |
) | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
C.P. DAVIDSON & SONS LIMITED (REGISTERED NUMBER: 02590166) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
Balance outstanding at start of year | ( |
) | ( |
) |
Amounts advanced |
Amounts repaid |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
The loans have been fully repaid within 9 months of the year end and interest has been charged at a rate of 2.25%. |
22. | RELATED PARTY DISCLOSURES |
Included within other debtors is an interest free loan of £1,302,226 (2022: £1,308,180) to a connected company. |
23. | ULTIMATE CONTROLLING PARTY |
The company's ultimate parent is PJD (Holdings) Limited, a company incorporated in the United Kingdom at the year end. |
The company is ultimately controlled by PJ Davidson and Mrs AL Davidson by virtue of their shareholdings in PJD (Holdings) Limited. |
These results are included in the consolidated financial statements of PJD (Holdings) Limited. The financial statements of PJD (Holdings) Limited may be obtained from Companies House. |
Following the year end the parent company has been acquired 100% by Faun Zoeller (UK) Limited and the company is now controlled by its ultimate parent company Kirchoff Ecotec GmbH, incorporated in Germany. |
These financial statements are available upon request from Iserlohn, StefanstraBe 2, 58638 Iserlohn, Germany. |