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REGISTERED NUMBER: 01143172 (England and Wales)





GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST JANUARY 2024

FOR

FAROL HOLDINGS LIMITED

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST JANUARY 2024










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 6

Statement of Directors' Responsibilities 9

Report of the Independent Auditors 10

Consolidated Income Statement 13

Consolidated Other Comprehensive Income 14

Consolidated Statement of Financial Position 15

Company Statement of Financial Position 16

Consolidated Statement of Changes in Equity 17

Company Statement of Changes in Equity 18

Consolidated Statement of Cash Flows 19

Notes to the Consolidated Statement of Cash Flows 20

Notes to the Consolidated Financial Statements 22


FAROL HOLDINGS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST JANUARY 2024







DIRECTORS: Mr M E Vellacott
Mr B T Vellacott


SECRETARY: Mr B T Vellacott


REGISTERED OFFICE: Rycote Lane Farm
Milton Common
Oxfordshire
OX9 2NZ


REGISTERED NUMBER: 01143172 (England and Wales)


SENIOR STATUTORY AUDITOR: David Barr BSc FCA


AUDITORS: Martin and Company Audit Limited
Chartered Accountants
and Statutory Auditors
25 St Thomas Street
Winchester
Hampshire
SO23 9HJ


BANKERS: Lloyds Bank Plc
The Atrium
Davidson House
Forbury Square
Reading
RG1 3EU

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST JANUARY 2024


The directors present their strategic report of the company and the group for the year ended 31st January 2024.

Review of the business
Turnover for the year has increased 5.28% to £191m from £181m. Gross profit has strengthened slightly to 12.40% from 12.19% due to the increase in aftersales profitability. Net profit before tax has contracted down to £4.7m against £6.7m with margins at 2.45% and 3.72% respectively.

Shareholders' Funds have increased to £27,682,988 (2023: £24,403,781) and we are therefore well placed to make continued investment in future.

Funding
The group banks with Lloyds Bank Plc. We have kept within our facilities during the year.

John Deere and other core brands
Our major supplier, John Deere, has a strong product portfolio and continues to have the largest market share both in the UK and globally. Thanks to a strong, prestigious brand portfolio which include Kramer, Kuhn, Bailey Trailers, Yanmar and Bomford, we continue to supply a broad range of quality innovative products and enjoy excellent market share.

John Deere and other core brands set us product targets and business objectives. We are pleased to confirm we continue to exceed these targets and meet their business objectives. We are grateful for their continued support. We recognise that ongoing success is dependent upon retaining these good relationships with key suppliers.

Key performance indicators
The directors use KPIs to measure monthly performance against previous periods and budget. The management reviews each depot's contribution for each division of the business. The business divisions are segregated between agricultural, golf and turf, construction, tyres, transport and financial services. Each division is split by department for sales (wholegoods), parts and service. The KPIs utilised are revenue, gross margin, absorption, operating profit and cashflow.

The directors also use 'non-financial' performance indicators such as the number of wholegood units sold and market share, engaged hectares, labour recovery rates, parts stock turn and machine down percentages. In addition a Customer Satisfaction Index is monitored monthly.

Principal risks and uncertainties
Taking risks is all part of entrepreneurial activity and its assessment is inherent in our culture. The principal risks and corresponding controls identified are as follows:-

Business strategy
The directors recognise the importance of having a strong business strategy. The strategic risk of business options is reviewed by the board, with a view to providing long term growth. The key areas of focus are:

* Growth through additional John Deere Areas of Responsibility and Diversification
* Market share
* Engaged Hectares
* Customer Experience
* Staff Satisfaction

People
The group employs 327 staff who are critical to the success of the business. The Board invests in the appraisal, training and development of all staff. Remuneration and benefits are regularly reviewed.

As with all businesses the group is dependant upon a number of key employees for the sales activity and management functions. The company recognises this risk by careful long-term planning.





FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST JANUARY 2024

Health and safety
The Board recognises that health and safety in the work place is paramount and it is therefore taken very seriously. The directors believe that they have all the necessary policies and procedures in place to safeguard the health, safety and welfare of its staff and anyone affected by our work activities. We employ a full time Chartered Health and Safety Practitioner as the Group H&S Manager who follows the HSE "Leading health and safety at work" INDG417 as their management system.

Economic and market risks
The group's market demand is affected by economic cycles and sector specific factors (such as commodity prices for farmers, or membership renewals for golf clubs). By operating in a range of business sectors the company is able to mitigate the risk of severe drops in demand in any one market. It also seeks to maintain a strong balance sheet and takes a long term view in building customer and supplier relationships, both of which help it cope with short term economic shocks.

Competitor Risk
The group operates in a competitive market which is influenced by price pressures and competitors attempting to increase market share. To reduce this risk, we concentrate on promoting industry leading customer service whilst operating in a diverse range of markets with a wide range of franchises.

Business continuity
A major disaster such as flood, loss of power or IT crash could impact on the ability of the business to trade. The board is aware of such risks and has plans in place should one depot suffer such a crisis, to enable the business as a whole to continue.

Financial risk management objectives and policies
The directors aim to minimise the financial risk to the company and manage this as follows:

Interest rate risk
The group has hire purchase and finance lease debts for the purchase of stock and assets. These are at fixed interest rates from their inception and so no risk of interest rate increases arises. In addition the group has a bank loan and overdraft facility together with loans from its directors which are tied to the bank base rate.

Credit risk
The group monitors and checks credit ratings of its customers closely and considers that this policy meets the objective of managing and minimising exposure to credit risk.

Liquidity risk
The group controls cashflow by careful budgeting which ensures liquidity is maintained.

Currency risk
The group carries out a proportion of its trade in Europe. The exposure to foreign currency risk is minimised by setting the majority of prices in a sterling equivalent and maintaining a minimum timeframe between invoicing and cash receipt. In addition the euro bank account is managed to enable purchases to be made efficiently. The group does not carry out any hedging activities.

Group Values

Employees of Farol are at the centre of our continued success and development, the business has a strategic aim of becoming an employer of choice:

One Team
By respecting each other and working together, Farol creates a highly rewarding environment.

Winning Mindset
Farol believes being reliable and consistent, by delivering the fundamentals well and with a forward-thinking mindset, we get results.


FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST JANUARY 2024

Customer Partnership
Through partnership with our customers, Farol provides added value and sustainability, using the latest technology, machine data, connectivity and consultation.

Creatively Different
At Farol we encourage, develop and support creativity to become outstanding leaders in our industry.


FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST JANUARY 2024

SECTION 172(1) STATEMENT
As the board at Farol group, we have a legal responsibility under section 172 of the Companies Act 2006 to act in a way we consider, in good faith, would be most likely to promote the group's success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the group and its stakeholders. This statement addresses the ways in which we as a board outwork this responsibility.

Promoting the company's success for its members
Farol was started by George Vellacott in 1976 and the group continues to be controlled and run by the Vellacott family. The group now employs over 327 staff and is a market leader in the agricultural and groundcare industries. For nearly half a century the group has provided employment, training and financial reward for its owners and employees.

The group operates from seven depots covering various parts of the country and part of the group's strategy for growth includes the expansion of its dealer network.

With thanks to a strong prestigious brand portfolio the group continues to explore possibilities and in doing so aims to maximise the group's ability to grow market share whilst returning value to the Vellacott family shareholders.

The board makes strategic decisions based on long-term objectives and has invested significantly over the years to ensure that we can deliver high quality innovative products to our customers and provide excellent customer aftercare.

Engaging with stakeholders
Our key stakeholders, and the ways in which we engage with them, are as follows:

Our employees
We are one of the leading John Deere dealers in the UK with people at the heart of its strategy. We rely on a skilled team of product service advisors, technicians, agricultural engineers and a highly motivated sales force who are critical to the success of the business. We are renowned for our customer service which requires us to adapt to ever increasing demands for our products. This cannot be achieved without the dedication, expertise, skill and professionalism of the workforce.

Recruitment and retention of staff is therefore considered very important and we engage with staff members by:
- setting competitive remuneration packages and rewarding performance with bonuses at all levels;
- carrying out regular appraisals of staff members;
- providing training and career development support;
- ensuring that staff members are present at management meetings and involved in decision making.

Our customers
Innovation is crucial to the continuing success of the business so that we can continue to offer customers the best quality products and service. A customer Satisfaction Index is monitored monthly to ensure good customer feedback.

Our Community
As a family-run group we have invested over the years in our local community and sponsor various events on an annual basis. We also make various charitable donations throughout the year as detailed in the directors report.

ON BEHALF OF THE BOARD:





Mr M E Vellacott - Director


26th April 2024

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST JANUARY 2024


The directors present their report with the financial statements of the company and the group for the year ended 31st January 2024.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of the sale of new and used farm machinery and golf and turf machinery as John Deere main dealers, together with their repair and servicing. In addition the group carries out the sale and repair of tyres to both customers of the principal activity and other retail customers. The principal activity of the company was that of property management, predominantly of properties occupied by the subsidiary company.

DIVIDENDS
Interim dividends per share were paid as follows:
A Ordinary £1 shares 91.97 - 31st January 2024
B Ordinary £1 shares 91.87 - 31st January 2024


The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31st January 2024 will be £ 428,907 .

RESEARCH AND DEVELOPMENT
The group is currently undertaking research and development to improve both its customer offerings and internal performance of its operational activities which is recognised as an expense in the period in which it is incurred.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st February 2023 to the date of this report.

Mr M E Vellacott
Mr B T Vellacott

POLITICAL DONATIONS AND EXPENDITURE
The group made charitable donations of £52,570 (2023 - £70,383) and did not incur any political expenditure during the year.

GOING CONCERN
The directors have prepared a forecast up to January 2028. The results to date show that the group is ahead of forecast with the agricultural industry continuing to show a willingness to invest in the John Deere brand. The directors expect improved profitability levels for the foreseeable future and as such adopt the going concern assumptions in preparing the financial statements.

GROUP'S POLICY ON PAYMENT OF CREDITORS
The group makes purchases from suppliers according to the terms and conditions agreed in advance between the two parties. Payments are made to suppliers when the goods or services have been received and the terms and conditions met.

DISABLED PERSONS
Applications for employment by disabled persons are always considered fully, having taken into account the specific role and aptitude of the applicant concerned. In the event that employees become disabled during their employment then every effort is made to facilitate their role within the business. The group policy is that training, career development and promotion will be equally available to all employees regardless of disability.


FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST JANUARY 2024

EMPLOYEE INVOLVEMENT
The group ensures there is active employee participation within the business. During the year, the policy of providing employees with information, including that relating to the economic and financial factors affecting the performance of the group, has been continued.

Regular meetings are held between management and employees to allow the free flow of information and ideas.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
Our engagement with suppliers, customers and others are detailed within the strategic report on pages 2 to 4.

STREAMLINED ENERGY AND CARBON REPORTING
Farol have 327 employees spread across 7 sites in Oxfordshire, Leicestershire, Berkshire, West Sussex, Nottingham and Ashbourne.

All results have been compiled using data from supplier invoices and external reports, we have also used the Conversion factors index to calculate all conversions from kWh to kgCO2e for the relevant energy sources.

UK Greenhouse gas emissions and energy use data for the period 1st
February 2023 to 31st January 2024

31.01.24


31.01.23

Energy consumption used to calculate emissions (kwh) 9,614,733 7,632,611

Energy consumption break down (kwh)
Gas 107,159 161,741
Electricity 577,419 473,925
Transport fuel 8,930,156 6,996,944

Scope 1 emissions in metric tonnes CO2e
Gas consumption 20.68 30.69
Owned Transport 2,113.70 1,656.27
Total Scope 1 2,134.37 1,686.96

Scope 2 emissions in metric tonnes CO2e
Purchased electricity 122.60 100.63
Total Scope 2 122.60 100.63

Total gross emissions in metric tonnes CO2e 2,256.98 1,787.59

Intensity ratio tonne CO2e per million £ sales revenue 11.94 9.51

Intensity ratio tonne CO2e per employee 6.90 5.84

Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee and per million £ of sales revenue.













FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST JANUARY 2024

Measures taken to improve energy efficiency and the environment
Farol is committed to sound environmental management, sustainability and working towards net zero as per our Net Zero Management Statement. New electronic environmental report form introduced 2023 for staff to report any environmental spillage, contamination immediately to the Group H&S Manager. We participate in the supply chain scope 3 reporting requirements when requested.

Newest Ashbourne Depot has fuel grid supplied electricity, and a recently installed workshop waste oil burner to recycle waste engine oil. Looking to install a waste oil burner at our Newark Depot to reduce energy consumption from the air source heat pump and recycle their waste oil.

2023 Fleet Management Plan included replacement of less efficient older vehicles with a mixture of fuel, electric and hybrid vehicles. Driver behaviour reports run which has improved driving and fuel efficiency. Purchasing policy for the motor fleet considers energy consumption/emissions. We are LGV fleet LEZ compliant and meet ULEZ emissions standards.

All depots: significant further investment in LED lighting and PIR lighting control. Conducting regular maintenance of HVAC Systems.

All depots: auditing waste streams to remove any POP's (Persistent organic pollutants) and increase reuse and recycling. New Waste Electrical and Electronic Equipment recycling (WEEE) process.

Having a full-time in-house JD trained Farol Technical Instructor has reduced amount of training in Nottingham and external travel to courses.

We continue to participate in the supply chain scope 3 reporting requirements when asked by suppliers and customers.

HR Director project to draw up a Sustainability and Carbon Reduction Plan in accordance with PPN 06/2 and fully update the Environmental Policy in accordance with net zero.

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 group'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 group's auditors are aware of that information.

AUDITORS
The auditors, Martin and Company Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr M E Vellacott - Director


26th April 2024

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

STATEMENT OF DIRECTORS' RESPONSIBILITIES
FOR THE YEAR ENDED 31ST JANUARY 2024


The directors are responsible for preparing the Group 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 the group 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 accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FAROL HOLDINGS LIMITED


Opinion
We have audited the financial statements of Farol Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st January 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31st January 2024 and of the group's 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 group 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 group's and the 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
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report, the Report of the Directors and the Statement of Directors' Responsibilities, 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 Group 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 Group 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
FAROL HOLDINGS LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 nine, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory framework applicable to the company via discussions with the directors and our previous knowledge of the company. This identified that the most significant laws and regulations relate to the form and content of the financial statements such as the UK Companies Act 2006 and Financial Reporting Standard 102. The company complies with these laws and regulations by using appropriately qualified professionals to prepare the financial statements.

As part of our planning process we assessed susceptibility of the company's financial statements to material misstatements, including how fraud might occur by making an assessment of the key risks. The key risks identified in respect of Farol Holdings Limited and its subsidiaries are revenue recognition and the impact of performance targets on influencing management override, payroll and misappropriation of stock by staff members. Risks also arise from accounting estimates made by the directors which include provision for bad debts, stock provisions, depreciation policy and valuation of freehold property. The directors confirmed no actual, suspected or alleged cases of fraud.

Based on this assessment we designed our audit procedures to address these key risk areas with an emphasis on testing sales and stock cut off and those areas susceptible to management override including testing manual journals, testing of payroll records, attendance at the year end stock take and making enquiries of management. We also assessed the reasonableness of bad debt and stock provisions made, depreciation rates used and property valuations used.

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
FAROL HOLDINGS 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.




David Barr BSc FCA (Senior Statutory Auditor)
for and on behalf of Martin and Company Audit Limited
Chartered Accountants
and Statutory Auditors
25 St Thomas Street
Winchester
Hampshire
SO23 9HJ

26th April 2024

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31ST JANUARY 2024

2024 2023
Notes £    £   

TURNOVER 4 190,638,855 181,068,743

Cost of sales 166,993,021 158,989,840
GROSS PROFIT 23,645,834 22,078,903

Administrative expenses 16,855,074 14,377,261
6,790,760 7,701,642

Other operating income 96,124 78,639
OPERATING PROFIT 6 6,886,884 7,780,281

Impairment loss on freehold property 7 (71,766 ) -
Loss on disposal of freehold
property 7 - 2,033
6,815,118 7,782,314

Interest receivable and similar income 119,810 61,012
6,934,928 7,843,326

Interest payable and similar expenses 8 2,255,872 1,090,142
PROFIT BEFORE TAXATION 4,679,056 6,753,184

Tax on profit 9 1,039,295 1,496,156
PROFIT FOR THE FINANCIAL YEAR 3,639,761 5,257,028
Profit attributable to:
Owners of the parent 3,639,761 5,257,028

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST JANUARY 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 3,639,761 5,257,028


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

3,639,761

5,257,028

Total comprehensive income attributable to:
Owners of the parent 3,639,761 5,257,028

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31ST JANUARY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 12 28,332,574 23,314,649
Investments 13 - -
28,332,574 23,314,649

CURRENT ASSETS
Stocks 14 65,471,638 50,311,525
Debtors 15 16,063,904 18,024,864
Cash at bank and in hand 2,602,853 4,584,853
84,138,395 72,921,242
CREDITORS
Amounts falling due within one year 16 68,331,961 57,038,324
NET CURRENT ASSETS 15,806,434 15,882,918
TOTAL ASSETS LESS CURRENT
LIABILITIES

44,139,008

39,197,567

CREDITORS
Amounts falling due after more than one
year

17

(13,344,480

)

(11,928,284

)

PROVISIONS FOR LIABILITIES 21 (3,111,540 ) (2,865,502 )
NET ASSETS 27,682,988 24,403,781

CAPITAL AND RESERVES
Called up share capital 22 4,666 4,666
Share premium 23 14,980 14,980
Revaluation reserve 23 2,808,588 2,740,235
Capital redemption reserve 23 14,274 14,274
Retained earnings 23 24,840,480 21,629,626
SHAREHOLDERS' FUNDS 27,682,988 24,403,781

The financial statements were approved by the Board of Directors and authorised for issue on 26th April 2024 and were signed on its behalf by:




Mr M E Vellacott - Director



Mr B T Vellacott - Director


FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

COMPANY STATEMENT OF FINANCIAL POSITION
31ST JANUARY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 12 13,129,724 13,090,380
Investments 13 3,173,289 3,173,289
16,303,013 16,263,669

CURRENT ASSETS
Debtors 15 788,600 1,594,872
Cash at bank 113,966 146,684
902,566 1,741,556
CREDITORS
Amounts falling due within one year 16 3,574,582 4,170,181
NET CURRENT LIABILITIES (2,672,016 ) (2,428,625 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

13,630,997

13,835,044

CREDITORS
Amounts falling due after more than one
year

17

(6,469,938

)

(7,024,672

)

PROVISIONS FOR LIABILITIES 21 (508,915 ) (469,787 )
NET ASSETS 6,652,144 6,340,585

CAPITAL AND RESERVES
Called up share capital 22 4,666 4,666
Revaluation reserve 23 2,808,588 2,740,235
Capital redemption reserve 23 11,334 11,334
Retained earnings 23 3,827,556 3,584,350
SHAREHOLDERS' FUNDS 6,652,144 6,340,585

Company's profit for the financial year 672,113 2,460,140

The financial statements were approved by the Board of Directors and authorised for issue on 26th April 2024 and were signed on its behalf by:



Mr M E Vellacott - Director



Mr B T Vellacott - Director


FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST JANUARY 2024

Called up
share Retained Share
capital earnings premium
£    £    £   
Balance at 1st February 2022 4,666 18,166,691 14,980

Changes in equity
Dividends - (1,794,093 ) -
Total comprehensive income - 5,257,028 -
Balance at 31st January 2023 4,666 21,629,626 14,980

Changes in equity
Dividends - (428,907 ) -
Total comprehensive income - 3,639,761 -
Balance at 31st January 2024 4,666 24,840,480 14,980
Capital
Revaluation redemption Total
reserve reserve equity
£    £    £   
Balance at 1st February 2022 3,017,530 14,274 21,218,141

Changes in equity
Dividends - - (1,794,093 )
Total comprehensive income - - 5,257,028
Deferred tax arising from
revaluation of land and
buildings (277,295 ) - (277,295 )
Balance at 31st January 2023 2,740,235 14,274 24,403,781

Changes in equity
Dividends - - (428,907 )
Total comprehensive income - - 3,639,761
Deferred tax arising from
revaluation of land and
buildings 68,353 - 68,353
Balance at 31st January 2024 2,808,588 14,274 27,682,988

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST JANUARY 2024

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1st February 2022 4,666 2,918,303 3,017,530 11,334 5,951,833

Changes in equity
Dividends - (1,794,093 ) - - (1,794,093 )
Total comprehensive income - 2,460,140 - - 2,460,140
Deferred tax arising from
revaluation of land and
buildings - - (277,295 ) - (277,295 )
Balance at 31st January 2023 4,666 3,584,350 2,740,235 11,334 6,340,585

Changes in equity
Dividends - (428,907 ) - - (428,907 )
Total comprehensive income - 672,113 - - 672,113
Deferred tax arising from
revaluation of land and
buildings - - 68,353 - 68,353
Balance at 31st January 2024 4,666 3,827,556 2,808,588 11,334 6,652,144

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST JANUARY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 4,156,172 5,736,084
Interest paid (1,937,456 ) (857,047 )
Interest element of hire purchase payments
paid

(318,416

)

(233,095

)
Tax paid (907,662 ) (384,094 )
Net cash from operating activities 992,638 4,261,848

Cash flows from investing activities
Purchase of tangible fixed assets (723,313 ) (1,753,645 )
Sale of tangible fixed assets 305,099 179,946
Interest received 119,810 61,012
Net cash from investing activities (298,404 ) (1,512,687 )

Cash flows from financing activities
New loans in year - 7,570,000
Loan repayments in year (554,734 ) -
Capital repayments in year (1,072,210 ) (7,499,484 )
Amount introduced by directors 691,508 2,609,676
Amount withdrawn by directors (1,311,891 ) (1,636,029 )
Equity dividends paid (428,907 ) (1,794,093 )
Net cash from financing activities (2,676,234 ) (749,930 )

(Decrease)/increase in cash and cash equivalents (1,982,000 ) 1,999,231
Cash and cash equivalents at beginning of
year

2

4,584,853

2,585,622

Cash and cash equivalents at end of year 2 2,602,853 4,584,853

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST JANUARY 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2024 2023
£    £   
Profit before taxation 4,679,056 6,753,184
Depreciation charges 2,542,850 2,060,879
Profit on disposal of fixed assets (230,080 ) (130,491 )
(Increase)/decrease in fleet hire stock (1,852,988 ) 3,734,987
Finance costs 2,255,872 1,090,142
Finance income (119,810 ) (61,012 )
7,274,900 13,447,689
Increase in stocks (15,160,113 ) (8,446,495 )
Decrease/(increase) in trade and other debtors 2,174,175 (4,179,442 )
Increase in trade and other creditors 9,867,210 4,914,332
Cash generated from operations 4,156,172 5,736,084

2. CASH AND CASH EQUIVALENTS

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

Year ended 31st January 2024
31.1.24 1.2.23
£    £   
Cash and cash equivalents 2,602,853 4,584,853
Year ended 31st January 2023
31.1.23 1.2.22
£    £   
Cash and cash equivalents 4,584,853 2,585,622


FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST JANUARY 2024


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.2.23 Cash flow At 31.1.24
£    £    £   
Net cash
Cash at bank and in hand 4,584,853 (1,982,000 ) 2,602,853
4,584,853 (1,982,000 ) 2,602,853
Debt
Finance leases (8,010,085 ) (3,987,284 ) (11,997,369 )
Debts falling due within 1 year (3,554,733 ) - (3,554,733 )
Debts falling due after 1 year (7,024,672 ) 554,734 (6,469,938 )
(18,589,490 ) (3,432,550 ) (22,022,040 )
Total (14,004,637 ) (5,414,550 ) (19,419,187 )

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST JANUARY 2024


1. STATUTORY INFORMATION

Farol Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

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


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Basis of consolidation
The consolidated financial statements incorporate the results of Farol Holdings Limited and all its subsidiary undertakings as at 31st January 2024 using the acquisition method of accounting. The parent company has taken advantage of section 408 of the Companies Act 2006 and has not included its own Profit and Loss Account in these financial statements.

Turnover
Turnover represents net invoiced sales of goods and services, excluding value added tax.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Hire fleet - 12.50% straight line and 10% straight line
Improvements to property - 4% on cost and Straight line over 6 years
Plant and machinery - 25% straight line and 15% to 25% straight line
Motor vehicles - 25% straight line and 20% straight line
Computer equipment - 25% straight line

Freehold Property
Freehold property is shown at most recent valuation. Depreciation is not provided on freehold property as the directors consider that the value of the freehold property has not changed materially since the last valuation and the assets are maintained at a level to make any depreciation charge unnecessary.

Assets on hire are transferred into fixed assets at the lower of cost or net realisable value when they are expected to be on hire for greater than 6 months.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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

Current or deferred taxation assets and liabilities are not discounted.

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


FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


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

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

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

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


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

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments
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 entity after deducting all of its financial liabilities.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Leased assets
Assets held under finance lease and hire purchase contracts are capitalised in the Balance Sheet and depreciated over their expected useful lives. The interest element of leasing payments represents a constant proportion of the capital balance outstanding and is charged to the Profit and Loss Account over the period of the lease.

All other leases are regarded as operating and the payments made under them are charged to the Profit and Loss Account on a straight line basis over the lease term.

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


2. ACCOUNTING POLICIES - continued

Revenue recognition
The group derives revenue from the following sources: (i) sale of new and used machinery, (ii) repair and servicing of machinery, (iii) sale of parts and tyres, (iv) transport services and (v) hire income.

The group recognises revenue from the sale of wholegoods when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch 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.

Turnover from hire agreements is recognised on a straight line basis over the course of the agreement.

Turnover from repair and servicing work is recognised on completion of the respective job.

Transport services revenue is recognised upon completion of the work carried out.

Turnover in respect of the sale of parts and tyres this is at the point of sale.

Rent and commission receivable are recognised in the period to which they relate.

Deferred revenue represents payments for products and service elements received in advance that do not qualify to be recognised as revenue under the group's revenue recognition policy.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Estimates and underlying assumptions are reviewed on an ongoing basis.

(a) Provisions against receivables
Using information available up to the date the financial statements have been approved, the Directors make judgments based on experience regarding the level of provision required to account for potentially non-collectible receivables.

(b) Stock provision
The percentage used in the stock provision is reviewed by the Directors based on their knowledge and experience within the market that they operate in. During the year the percentages applied have been updated to reflect the current market.The overall change in this estimate has resulted in a £691K increase in the stock provision.

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Haulage 11,942 14,240
Wholegoods sales 151,775,914 147,963,796
Plant sales 5,281,983 4,770,030
Installations 10,238 285,477
Repairs and Servicing 27,048,816 21,149,268
Online 1,803,783 2,000,598
Asset finance 96,555 104,952
Tyres 4,575,292 4,746,050
Rental income 34,332 34,332
190,638,855 181,068,743

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 175,643,131 164,927,592
Europe 14,995,724 16,141,151
190,638,855 181,068,743

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 13,769,537 11,819,251
Social security costs 1,458,619 1,307,645
Other pension costs 355,949 286,097
15,584,105 13,412,993

The average number of employees during the year was as follows:
2024 2023

Sales and marketing 53 52
Service 115 107
Parts and warehousing 37 32
Tyres 14 17
Technology 12 7
Distribution and logistics 8 7
Management and administration 88 72
327 294

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


5. EMPLOYEES AND DIRECTORS - continued

The average number of employees by undertakings that were proportionately consolidated during the year was 327 (2023 - 294 ) .

2024 2023
£    £   
Directors' remuneration 290,839 24,300
Directors' pension contributions to money purchase schemes 12,188 11,625

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Information regarding the highest paid director for the year ended 31st January 2024 is as follows:
2024
£   
Emoluments etc 156,634
Pension contributions to money purchase schemes 6,771

6. OPERATING PROFIT

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

2024 2023
£    £   
Depreciation - owned assets 2,471,086 2,060,879
Profit on disposal of fixed assets (230,080 ) (130,491 )
Auditors' remuneration 40,350 32,800
Foreign exchange differences 8,004 (26,935 )
Hire of plant and machinery 279,809 481,883
Other operating leases 330,773 333,510
Auditors' remuneration relating to taxation and all other services 10,825 10,430
Government grants (5,000 ) (4,500 )

7. EXCEPTIONAL ITEMS
2024 2023
£    £   
Impairment loss on freehold property (71,766 ) -
Loss on disposal of freehold
property - 2,033
(71,766 ) 2,033

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


8. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 194,106 103,120
Bank loan interest 1,024,774 405,445
Other interest payable 718,576 348,482
Hire purchase 318,416 233,095
2,255,872 1,090,142

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 730,562 794,156
Corporation tax - prior year (5,658 ) (222,643 )
Total current tax 724,904 571,513

Deferred tax 314,391 924,643
Tax on profit 1,039,295 1,496,156

UK corporation tax has been charged at 25 % (2023 - 19 %).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 4,679,056 6,753,184
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2023 - 19 %)

1,169,764

1,283,105

Effects of:
Expenses not deductible for tax purposes 16,804 (6,847 )
Capital allowances in excess of depreciation (430,109 ) (499,307 )
Adjustments to tax charge in respect of previous periods (5,658 ) (222,643 )
Leased asset repayments 4,334 2,425
Deferred tax 314,391 924,643
Under/over provision 4,123 14,780
Effect of changes in tax rates (34,354 ) -
Total tax charge 1,039,295 1,496,156

The current year tax and deferred tax have been calculated at 25%. For 2023, the current tax charge was
calculated at 19%, with 25% being the deferred tax rate.

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


10. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


11. DIVIDENDS
2024 2023
£    £   
A Ordinary shares of £1 each
Interim 214,574 266,593
B Ordinary shares of £1 each
Interim 214,333 1,527,500
428,907 1,794,093

12. TANGIBLE FIXED ASSETS

Group
Improveme
Freehold Hire to
property fleet property
£    £    £   
COST OR VALUATION
At 1st February 2023 14,378,287 7,208,033 254,985
Additions 111,548 62,200 7,034
Disposals - - -
Transfers from stock - 8,473,568 -
Transfers to stock - (3,267,575 ) -
At 31st January 2024 14,489,835 12,476,226 262,019
DEPRECIATION
At 1st February 2023 1,296,786 606,688 134,146
Charge for year - 1,051,359 42,428
Eliminated on disposal - - -
Impairments 71,766 - -
Transfers to stock - (475,644 ) -
At 31st January 2024 1,368,552 1,182,403 176,574
NET BOOK VALUE
At 31st January 2024 13,121,283 11,293,823 85,445
At 31st January 2023 13,081,501 6,601,345 120,839

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


12. TANGIBLE FIXED ASSETS - continued

Group

Plant and Motor Computer
machinery vehicles equipment Totals
£    £    £    £   
COST OR VALUATION
At 1st February 2023 1,142,547 6,493,896 510,864 29,988,612
Additions 414,654 1,323,452 35,271 1,954,159
Disposals (168,390 ) (603,202 ) (130,685 ) (902,277 )
Transfers from stock - - - 8,473,568
Transfers to stock - - - (3,267,575 )
At 31st January 2024 1,388,811 7,214,146 415,450 36,246,487
DEPRECIATION
At 1st February 2023 685,055 3,720,420 230,868 6,673,963
Charge for year 229,117 1,063,077 85,105 2,471,086
Eliminated on disposal (137,156 ) (559,417 ) (130,685 ) (827,258 )
Impairments - - - 71,766
Transfers to stock - - - (475,644 )
At 31st January 2024 777,016 4,224,080 185,288 7,913,913
NET BOOK VALUE
At 31st January 2024 611,795 2,990,066 230,162 28,332,574
At 31st January 2023 457,492 2,773,476 279,996 23,314,649

Included in cost or valuation of land and buildings is freehold land of £4,365,789 (2023 - £4,365,789) which is not depreciated.

The net book value of fixed assets of £28,332,574 (2023: £23,314,649) includes an amount of £13,345,300 (2023: £8,769,928) in respect of assets held under hire purchase and finance lease contracts. The depreciation charge for the year in respect of these assets amounted to £1,944,165 (2023: £1,106,365).

Cost or valuation at 31st January 2024 is represented by:

Improveme
Freehold Hire to
property fleet property
£    £    £   
Valuation in 2014 479,006 - -
Valuation in 2016 613,257 - -
Valuation in 2021 2,332,267 - -
Cost 11,065,305 12,476,226 262,019
14,489,835 12,476,226 262,019

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


12. TANGIBLE FIXED ASSETS - continued

Group

Plant and Motor Computer
machinery vehicles equipment Totals
£    £    £    £   
Valuation in 2014 - - - 479,006
Valuation in 2016 - - - 613,257
Valuation in 2021 - - - 2,332,267
Cost 1,388,811 7,214,146 415,450 32,821,957
1,388,811 7,214,146 415,450 36,246,487

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2024 2023
£    £   
Cost 10,953,757 10,953,757

Value of land in freehold land and buildings 4,365,789 4,365,789

Freehold land and buildings were valued on an open market basis on 31st January 2021 and subsequent addition on 2nd February 2022 by Savills.

Company
Improvements
Freehold to Plant and
property property machinery Totals
£    £    £    £   
COST OR VALUATION
At 1st February 2023 14,378,287 10,960 8,335 14,397,582
Additions 111,548 - - 111,548
Disposals - - (8,335 ) (8,335 )
At 31st January 2024 14,489,835 10,960 - 14,500,795
DEPRECIATION
At 1st February 2023 1,296,786 2,081 8,335 1,307,202
Charge for year - 438 - 438
Eliminated on disposal - - (8,335 ) (8,335 )
Impairments 71,766 - - 71,766
At 31st January 2024 1,368,552 2,519 - 1,371,071
NET BOOK VALUE
At 31st January 2024 13,121,283 8,441 - 13,129,724
At 31st January 2023 13,081,501 8,879 - 13,090,380

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


12. TANGIBLE FIXED ASSETS - continued

Company

Included in cost or valuation of land and buildings is freehold land of £ 4,365,789 (2023 - £ 4,365,789 ) which is not depreciated.

Cost or valuation at 31st January 2024 is represented by:

Improvements
Freehold to
property property Totals
£    £    £   
Valuation in 2014 479,006 - 479,006
Valuation in 2016 613,257 - 613,257
Valuation in 2021 2,332,267 - 2,332,267
Cost 11,065,305 10,960 11,076,265
14,489,835 10,960 14,500,795

Investment property was valued on an open market basis on 31st January 2021 and subsequent addition on 2nd February 2022 by Savills.

13. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertaking
£   
COST
At 1st February 2023
and 31st January 2024 3,173,289
NET BOOK VALUE
At 31st January 2024 3,173,289
At 31st January 2023 3,173,289

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


13. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

Farol Limited
Registered office: Rycote Lane Farm, Milton Common, Oxfordshire, UK OX9 2NZ
Nature of business: Sale of new and used farm machinery
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 23,932,101 21,015,831
Profit for the year 3,341,412 4,567,494

Thamesmead Limited
Registered office: Thame Mead Farm, Long Crendon Road, Thame, UK OX9 3SG
Nature of business: Sale of commercial vehicles
%
Class of shares: holding
Ordinary 100.00
2024 2023
£    £   
Aggregate capital and reserves 272,032 220,654
Profit for the year 51,378 23,487


14. STOCKS

Group
2024 2023
£    £   
New & secondhand machinery 58,717,966 44,230,982
Spare parts 5,579,932 4,713,244
Tyres 809,419 956,527
Work-in-progress 364,321 410,772
65,471,638 50,311,525

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Trade debtors 10,929,456 11,509,004 10,300 3,431
Amounts owed by group undertakings - - - 787,888
Other debtors 778,300 788,147 778,300 788,147
Tax 238,555 25,341 - -
VAT - 100,843 - -
Prepayments and accrued income 4,117,593 5,601,529 - 15,406
16,063,904 18,024,864 788,600 1,594,872

16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Bank loans and overdrafts (see note 18) 3,554,733 3,554,733 554,733 554,733
Hire purchase contracts (see note 19) 5,122,827 3,106,473 - -
Trade creditors 42,961,508 32,118,393 - -
Amounts owed to group undertakings - - 102,924 -
Tax 104,254 73,798 88,002 68,286
Social security and other taxes 329,222 305,103 2,062 24,010
VAT 418,748 - 56,610 54,216
Other creditors 213,386 288,851 213,386 288,851
Directors' current accounts 2,546,365 3,166,748 2,546,365 3,166,748
Accruals and deferred income 5,379,497 10,742,037 10,500 13,337
Stocking loans 7,701,421 3,682,188 - -
68,331,961 57,038,324 3,574,582 4,170,181

Stock loans of £7,701,421 (2023: £3,682,188) are secured on the assets to which they relate and are repayable at various dates within the coming year.

Included in accruals is unpaid pension liabilities of £74,470 (2023: £63,517).

17. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Bank loans (see note 18) 6,469,938 7,024,672 6,469,938 7,024,672
Hire purchase contracts (see note 19) 6,874,542 4,903,612 - -
13,344,480 11,928,284 6,469,938 7,024,672

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


18. LOANS

An analysis of the maturity of loans is given below:

Group Company
2024 2023 2024 2023
£    £    £    £   
Amounts falling due within one year or on demand:
Bank loans 3,554,733 3,554,733 554,733 554,733
Amounts falling due between one and two years:
Bank loans - 1-2 years 554,733 554,733 554,733 554,733
Amounts falling due between two and five years:
Bank loans - 2-5 years 1,104,600 1,104,600 1,104,600 1,104,600
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal 4,810,605 5,365,339 4,810,605 5,365,339

The first term loan is repayable in 60 consecutive monthly instalments (in respect of principal only). The first 59 instalments shall be in the amount of £39,278 and the final instalment shall be an amount equal to the amount outstanding on the final repayment date and interest is charged at 1.75% above BofE Base Rate.

The second term loan is repayable in 60 consecutive monthly instalments. The first 59 instalments shall be in the amount of £7,000 and the final instalment shall be an amount equal to the amount outstanding on the final repayment date and interest is charged at 1.9% above BofE Base Rate.

19. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 5,122,827 3,106,473
Between one and five years 6,874,542 4,903,612
11,997,369 8,010,085

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


19. LEASING AGREEMENTS - continued

Group
Non-cancellable operating leases
2024 2023
£    £   
Within one year 1,430,138 1,380,338
Between one and five years 253,333 413,333
1,683,471 1,793,671

20. SECURED DEBTS

The following secured debts are included within creditors:

Group Company
2024 2023 2024 2023
£    £    £    £   
Bank loans 10,024,671 10,579,405 7,024,671 7,579,405
Hire purchase contracts 11,997,369 8,010,085 - -
Stocking loans 7,701,421 3,682,188 - -
29,723,461 22,271,678 7,024,671 7,579,405

The bank loan and overdraft facility are secured by mortgage debentures from Farol Holdings Limited and Farol Limited, a cross guarantee between Farol Holdings Limited and Farol Limited and a first legal charge over the freehold property.

Hire purchase liabilities are secured on the assets to which they relate.

21. PROVISIONS FOR LIABILITIES

Group Company
2024 2023 2024 2023
£    £    £    £   
Deferred tax 3,111,540 2,865,502 508,915 469,787

Group
Deferred
tax
£   
Balance at 1st February 2023 2,865,502
Provided during year 246,038
Balance at 31st January 2024 3,111,540

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


21. PROVISIONS FOR LIABILITIES - continued

Company
Deferred
tax
£   
Balance at 1st February 2023 469,787
Provided during year 39,128
Balance at 31st January 2024 508,915

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
2,333 A Ordinary £1 2,333 2,333
2,333 B Ordinary £1 2,333 2,333
4,666 4,666

The rights of all shares rank pari passu with the exception of being able to vote varying dividend levels in each class.

23. RESERVES

Group
Capital
Retained Share Revaluation redemption
earnings premium reserve reserve Totals
£    £    £    £    £   

At 1st February 2023 21,629,626 14,980 2,740,235 14,274 24,399,115
Profit for the year 3,639,761 3,639,761
Dividends (428,907 ) (428,907 )
Deferred tax arising from
revaluation of land and
buildings - - 68,353 - 68,353
At 31st January 2024 24,840,480 14,980 2,808,588 14,274 27,678,322

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2024


23. RESERVES - continued

Company
Capital
Retained Revaluation redemption
earnings reserve reserve Totals
£    £    £    £   

At 1st February 2023 3,584,350 2,740,235 11,334 6,335,919
Profit for the year 672,113 672,113
Dividends (428,907 ) (428,907 )
Deferred tax arising from
revaluation of land and
buildings - 68,353 - 68,353
At 31st January 2024 3,827,556 2,808,588 11,334 6,647,478


24. CAPITAL COMMITMENTS
2024 2023
£    £   
Contracted but not provided for in the
financial statements 400,000 -

25. OFF-BALANCE SHEET ARRANGEMENTS

Some customers take contract hire agreements out directly with independent finance providers and at that point the risks and rewards of ownership pass to the customer therefore no asset or liability is recognised in the balance sheet in respect of these vehicles. At the end of the contract hire period, the Company is committed to buy the vehicles directly from the finance provider at the end of the contract hire period. At the year end the Company was committed to purchase vehicles to the value of £12.3m (2023 - £9.9m) which equates to the anticipated residual values of the stock.

26. RELATED PARTY DISCLOSURES

The group has an unlimited cross guarantee with John Deere Limited. In addition a cross guarantee is in place with Lloyds Bank Plc with regard to the overdraft facility which is supported by a first legal charge over the company's property.

Key management personnel of the entity or its parent (in the aggregate)
2024 2023
£    £   
Interest charges 152,186 120,048
Amount due to related party 2,546,365 3,166,748

Other related parties
2024 2023
£    £   
Amount due to related party 213,381 288,851

During the year, a total of key management personnel compensation of £ 825,501 (2023 - £ 494,076 ) was paid.