Machinery sales

[texelburger]

Would it be safe to say the combo you are trading is quite fresh?
He's probably full to the neck ..................
@texelburger

Yes,it's a 2011 .Said he was going to get a underwritten value but would hope to sell it from the yard.

 

[Only]

I suppose if its a Ltd company, you can find out.
@Only quoted that amount, so I presume he's looked at companies house.

It's on company check Robert Davies ltd
anybody can check it out it was an exceptional year for him not as good now of course

 

[Only]

Who plucked £2 million out of the air, anyway? That sounds absurdly high.

Check for yourself company check

 

[Only]

Most dealers who shift a lot of kit, and lets face it they have to be very competitive to shift a lot of machinery these days, are working on a net profit of around 2% of turnover, give or take. If this company is making £2million profit before tax, work out how much kit he shifts. Even at 5% net if he's a magician.

Company check it's there in black and white

 

[Grassman]

2 million turnover perhaps

 

[Cowabunga]

Company check it's there in black and white

Since he doesn't deal in tractors or harvesters as far as I know, there must be another income stream. Maybe the machinery is a hobby?

Unless he is a major importer and distributor of a top selling brand, I'm at a loss to explain that kind of profit. It might include property sales perhaps?
If he was making £2million in total sales of machinery, it would not be insubstantial for a single depot dealer that didn't deal new and used tractors and harvesters.

 

[Goweresque]

Company check it's there in black and white

You are totally misreading the financial details. Annual profits at that company were just under £400k before tax in the 2014/15 tax year: Profit for 2015/16 would not yet be finalised.

https://www.duedil.com/company/04171564/robert-davies-machinery-limited/financials

 

[Cowabunga]

You are totally misreading the financial details. Annual profits at that company were just under £400k before tax in the 2014/15 tax year: Profit for 2015/16 would not yet be finalised.

https://www.duedil.com/company/04171564/robert-davies-machinery-limited/financials

I've had a look at the 2012 and 2013 accounts and I agree, it is nothing like as portrayed. It is an excellent business, no doubt about it, but profit before tax is only about a fifth of the claimed amount before tax. The profit actually comes in at between four and five percent of turnover, which is within the limits I mentioned as being normal for the industry earlier on.


I'm amazed it is that much, which is a testament to a well run business.
Should say that I don't know the company from Adam.

 

[Only]

he has no sales reps and runs it out of aportacabin
he sells 120 manitous a year roughly and loads of other stuff
hes a cash buyer of kit so propably gets mega deals
https://companycheck.co.uk/company/04171564/ROBERT-DAVIES-MACHINERY-LIMITED/financial-accounts

no I did not read it wrong year ending 2014
ON A TURNOVER of £11,096,61 million

£2,196.208 million pre tax profit year ending 2014
tax he paid £ 504,155

download the actual accounts and read the forewords"
farmers spending money contributed to an excellent year!!!

 

[smcapstick]

he has no sales reps and runs it out of aportacabin
he sells 120 manitous a year roughly and loads of other stuff
hes a cash buyer of kit so propably gets mega deals
https://companycheck.co.uk/company/04171564/ROBERT-DAVIES-MACHINERY-LIMITED/financial-accounts

no I did not read it wrong year ending 2014
ON A TURNOVER of £11,096,61 million

£2,196.208 million pre tax profit year ending 2014
tax he paid £ 504,155

download the actual accounts and read the forewords"
farmers spending money contributed to an excellent year!!!

Yes, you are reading it wrong. He has not reached the end of the year with a million and a half in his pocket, in fact he may well have an empty bank account.

That is the profit from sales, you see. It does not take in to account the purchase of stock to replace that which has been sold. A dealer could sell everything in the yard and show an enormous profit for the year, then go out of business the next because there is nothing left to sell. I discovered this when I was penniless, in the middle of winter when nothing was selling, and a letter from HMRC landed on the mat demanding five figures. I could not understand why, until I asked the accountant - assets are tax deductible, you see. If a farmer is at the end of his tax year and has shown a profit, the tax can avoided by purchasing an asset (be it a new tractor, machine, building, land... whatever). This reduces the annual profit. When a dealer buys stock, call it 50 Manitious, it is NOT an asset but trade stock so it makes no impact on the tax bill. Sure, you could be naughty and claim that ten of them are for business use, but that would not only be fraud but you would be charged capital gains when you sold them.

The tax system for a retailer is very different to the system imposed on a farm.

 

[Only]

Yes, you are reading it wrong. He has not reached the end of the year with a million and a half in his pocket, in fact he may well have an empty bank account.

That is the profit from sales, you see. It does not take in to account the purchase of stock to replace that which has been sold. A dealer could sell everything in the yard and show an enormous profit for the year, then go out of business the next because there is nothing left to sell. I discovered this when I was penniless, in the middle of winter when nothing was selling, and a letter from HMRC landed on the mat demanding five figures. I could not understand why, until I asked the accountant - assets are tax deductible, you see. If a farmer is at the end of his tax year and has shown a profit, the tax can avoided by purchasing an asset (be it a new tractor, machine, building, land... whatever). This reduces the annual profit. When a dealer buys stock, call it 50 Manitious, it is NOT an asset but trade stock so it makes no impact on the tax bill. Sure, you could be naughty and claim that ten of them are for business use, but that would not only be fraud but you would be charged capital gains when you sold them.

The tax system for a retailer is very different to the system imposed on a farm.[/QUOTE

 

[Only]

He seemed to have a greater value of stock at the end of the year than the year before though
Slightly confused

 

[stuart]

He seemed to have a greater value of stock at the end of the year than the year before though
Slightly confused

because no one is buying?

 

[Only]

because no one is buying?

Must be
Boy he does have some serious stock on that yard

 

[Only]

When you download the actual accounts it says nothing about land sales but says it was an exceptional year on the back of farmers doing well

 

[stuart]

tbf does it really matter how much profit he made its got to be a good thing he is making a profit one of the most honest people you'll ever deal with no sales men deal direct with the boss and he'll stand by anything that leaves his yard

 

[Only]

tbf does it really matter how much profit he made its got to be a good thing he is making a profit one of the most honest people you'll ever deal with no sales men deal direct with the boss and he'll stand by anything that leaves his yard

Yes I agree almost 100% with ( but that's another story)

 

[sleepy]

Something doesn't quite make sense. Their stock appeared to hugely increase in the previous year (not sure why) which they did not revalue down at 31 March 2014 but then they carried on increasing stock into 2015 before writing overall stock down thus reducing their gross profit. The net profit in 2014 is too high because the gross margin was so high - it was almost as if they forgot to value stock back to cost in 2014. Doesn't make complete sense.

 

[Only]

This slightly bizarre I agree

 

[smcapstick]

The companies house records seem to have little correlation to the performance of the company in question. Mine are a mile out