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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 2025

FOR

FAROL HOLDINGS LIMITED

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST JANUARY 2025










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 2025







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: Shaw Gibbs (Audit) Limited
Chartered Certified Accountants
Statutory Auditor
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 2025


The directors present their strategic report of the company and the group for the year ended 31st January 2025.

Review of the business
Turnover for the year has decreased by £6m to £185m from £191m. Gross profit has increased slightly to 12.45% from 12.32%. Net profit before tax has contracted down to £2.6m against £4.7m with margins at 1.38% and 2.45% respectively.

Shareholders' Funds have increased to £29,025,085 (2024: £27,682,988) 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 326 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 dependent upon a number of key employees for the sales activity and management functions. The group recognises this risk by careful long-term planning.





FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST JANUARY 2025

Health and safety
The Board recognises that health and safety in the work place is paramount and it is therefore taken very seriously. The board is committed to maintaining the highest standards of health and safety compliance to protect employees, customers and assets. 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" INDG41T as their management system. These efforts not only support employee well-being but also contribute to the financial stability and reputation of our business.

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 2025



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.

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 326 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.

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST JANUARY 2025


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


2nd May 2025

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST JANUARY 2025


The directors present their report with the financial statements of the company and the group for the year ended 31st January 2025.

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 85.726 - 31st January 2025
B Ordinary £1 shares 85.726 - 31st January 2025


The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31st January 2025 will be £ 400,000 .

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 2024 to the date of this report.

Mr M E Vellacott
Mr B T Vellacott

POLITICAL DONATIONS AND EXPENDITURE
The group made charitable donations of £567 (2024 - £52,570) and did not incur any political expenditure during the year.

GOING CONCERN
The directors have prepared a forecast up to January 2029. 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 2025

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 5.

STREAMLINED ENERGY AND CARBON REPORTING
Farol have 326 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 2024 to 31st January 2025

31.01.25


31.01.24

Energy consumption used to calculate emissions (kwh) 9,871,081 9,614,733

Energy consumption break down (kwh)
Gas 113,323 107,159
Electricity 653,485 577,419
Transport fuel 9,104,273 8,930,156

Scope 1 emissions in metric tonnes CO2e
Gas consumption 22.92 20.68
Owned Transport 2,263.74 2,113.70
Total Scope 1 2,286.66 2,134.37

Scope 2 emissions in metric tonnes CO2e
Purchased electricity 133.92 122.60
Total Scope 2 133.92 122.60

Total gross emissions in metric tonnes CO2e 2,402.58 2,256.98

Intensity ratio tonne CO2e per million £ sales revenue 13.08 11.94

Intensity ratio tonne CO2e per employee 7.43 6.90

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 2025

Measures taken to improve energy efficiency and the environment
The Board is committed to sound environmental management, sustainability and working towards net zero as per our Net Zero Management Statement. As part of our ongoing commitment to energy efficiency and environmental responsibility, we have undertaken several key initiatives throughout the year. ESOS audits were completed across our three main depots and submitted, identifying opportunities for further energy savings. Our ESOS Action Plan has been formally submitted in compliance with regulatory requirements.

Our group H&S Manager has completed formal sustainability training, strengthening our ability to implement effective environmental strategies across the business. Additionally, we have continued upgrading lighting across the business, replacing traditional fixtures with energy-efficient LED lighting and PIR-controlled systems to reduce unnecessary energy consumption. These measures align with our sustainability goals, helping to lower our carbon footprint while improving operational efficiency. We remain actively engaged in Scope 3 supply chain reporting, responding to requests from suppliers and customers to support transparency and sustainability initiatives.

During the reporting period, we have continued to upgrade our vehicle fleet by replacing less efficient older models with a mix of fuel, electric, and hybrid vehicles. Improved driver behaviour reports have contributed to enhanced fuel efficiency and overall performance. Our motor fleet purchasing policy remains focused on energy consumption and emissions reduction, ensuring alignment with our sustainability objectives. Additionally, our LGV fleet remains fully compliant with Low Emission Zone (LEZ) regulations and meets Ultra Low Emission Zone (ULEZ) Standards.

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, Shaw Gibbs (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr M E Vellacott - Director


2nd May 2025

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

STATEMENT OF DIRECTORS' RESPONSIBILITIES
FOR THE YEAR ENDED 31ST JANUARY 2025


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 2025 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 2025 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 Shaw Gibbs (Audit) Limited
Chartered Certified Accountants
Statutory Auditor
25 St Thomas Street
Winchester
Hampshire
SO23 9HJ

2nd May 2025

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31ST JANUARY 2025

2025 2024
Notes £    £   

TURNOVER 4 184,656,129 190,638,855

Cost of sales 161,663,204 167,152,788
GROSS PROFIT 22,992,925 23,486,067

Administrative expenses 17,694,117 16,695,307
5,298,808 6,790,760

Other operating income 87,487 96,124
OPERATING PROFIT 6 5,386,295 6,886,884

Impairment loss on freehold property 7 15,406 (71,766 )
5,401,701 6,815,118

Interest receivable and similar income 119,154 119,810
5,520,855 6,934,928

Interest payable and similar expenses 8 2,955,356 2,255,872
PROFIT BEFORE TAXATION 2,565,499 4,679,056

Tax on profit 9 794,806 1,039,295
PROFIT FOR THE FINANCIAL YEAR 1,770,693 3,639,761
Profit attributable to:
Owners of the parent 1,770,693 3,639,761

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST JANUARY 2025

2025 2024
Notes £    £   

PROFIT FOR THE YEAR 1,770,693 3,639,761


OTHER COMPREHENSIVE INCOME
Revaluation of freehold property (40,188 ) -
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

(40,188

)

-
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,730,505

3,639,761

Total comprehensive income attributable to:
Owners of the parent 1,730,505 3,639,761

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31ST JANUARY 2025

2025 2024
Notes £    £    £   
FIXED ASSETS
Tangible assets 12 29,942,765 28,332,574
Investments 13 - -
29,942,765 28,332,574

CURRENT ASSETS
Stocks 14 47,310,015 65,471,638
Debtors 15 17,741,454 16,063,904
Cash at bank and in hand 3,993,213 2,602,853
69,044,682 84,138,395
CREDITORS
Amounts falling due within one year 16 58,831,009 68,331,961
NET CURRENT ASSETS 10,213,673 15,806,434
TOTAL ASSETS LESS CURRENT
LIABILITIES

40,156,438

44,139,008

CREDITORS
Amounts falling due after more than one
year

17

(7,725,049

)

(13,344,480

)

PROVISIONS FOR LIABILITIES 21 (3,406,304 ) (3,111,540 )
NET ASSETS 29,025,085 27,682,988

CAPITAL AND RESERVES
Called up share capital 22 4,666 4,666
Share premium 23 14,980 14,980
Revaluation reserve 23 2,779,992 2,808,588
Capital redemption reserve 23 14,274 14,274
Retained earnings 23 26,211,173 24,840,480
SHAREHOLDERS' FUNDS 29,025,085 27,682,988

The financial statements were approved by the Board of Directors and authorised for issue on 2nd May 2025 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 2025

2025 2024
Notes £    £    £   
FIXED ASSETS
Tangible assets 12 13,104,504 13,129,724
Investments 13 3,173,289 3,173,289
16,277,793 16,303,013

CURRENT ASSETS
Debtors 15 1,034,866 788,600
Cash at bank 273,943 113,966
1,308,809 902,566
CREDITORS
Amounts falling due within one year 16 4,108,121 3,574,582
NET CURRENT LIABILITIES (2,799,312 ) (2,672,016 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

13,478,481

13,630,997

CREDITORS
Amounts falling due after more than one
year

17

(5,915,205

)

(6,469,938

)

PROVISIONS FOR LIABILITIES 21 (529,983 ) (508,915 )
NET ASSETS 7,033,293 6,652,144

CAPITAL AND RESERVES
Called up share capital 22 4,666 4,666
Revaluation reserve 23 2,779,992 2,808,588
Capital redemption reserve 23 11,334 11,334
Retained earnings 23 4,237,301 3,827,556
SHAREHOLDERS' FUNDS 7,033,293 6,652,144

Company's profit for the financial year 809,745 672,113

The financial statements were approved by the Board of Directors and authorised for issue on 2nd May 2025 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 2025

Called up
share Retained Share
capital earnings premium
£    £    £   
Balance at 1st February 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

Changes in equity
Dividends - (400,000 ) -
Total comprehensive income - 1,770,693 -
Balance at 31st January 2025 4,666 26,211,173 14,980
Capital
Revaluation redemption Total
reserve reserve equity
£    £    £   
Balance at 1st February 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

Changes in equity
Dividends - - (400,000 )
Total comprehensive income (40,188 ) - 1,730,505
Deferred tax arising from
revaluation of land and
buildings 11,592 - 11,592
Balance at 31st January 2025 2,779,992 14,274 29,025,085

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST JANUARY 2025

Called up Capital
share Retained Revaluation redemption Total
capital earnings reserve reserve equity
£    £    £    £    £   
Balance at 1st February 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

Changes in equity
Dividends - (400,000 ) - - (400,000 )
Total comprehensive income - 809,745 (40,188 ) - 769,557
Deferred tax arising from
revaluation of land and
buildings - - 11,592 - 11,592
Balance at 31st January 2025 4,666 4,237,301 2,779,992 11,334 7,033,293

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST JANUARY 2025

2025 2024
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 7,552,956 4,156,172
Interest paid (2,358,305 ) (1,937,456 )
Interest element of hire purchase payments
paid

(597,051

)

(318,416

)
Tax paid (934,690 ) (907,662 )
Net cash from operating activities 3,662,910 992,638

Cash flows from investing activities
Purchase of tangible fixed assets (210,231 ) (723,313 )
Sale of tangible fixed assets 263,757 305,099
Interest received 119,154 119,810
Net cash from investing activities 172,680 (298,404 )

Cash flows from financing activities
Loan repayments in year (554,733 ) (554,734 )
Capital repayments in year (1,273,322 ) (1,072,210 )
Amount introduced by directors 1,359,375 691,508
Amount withdrawn by directors (2,157,794 ) (1,311,891 )
Hire purchase agreements 581,244 -
Equity dividends paid (400,000 ) (428,907 )
Net cash from financing activities (2,445,230 ) (2,676,234 )

Increase/(decrease) in cash and cash equivalents 1,390,360 (1,982,000 )
Cash and cash equivalents at beginning of
year

2

2,602,853

4,584,853

Cash and cash equivalents at end of year 2 3,993,213 2,602,853

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST JANUARY 2025


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2025 2024
£    £   
Profit before taxation 2,565,499 4,679,056
Depreciation charges 3,014,188 2,542,850
Profit on disposal of fixed assets (134,386 ) (230,080 )
(Increase)/decrease in fleet hire stock (2,762,647 ) (1,852,988 )
Finance costs 2,955,356 2,255,872
Finance income (119,154 ) (119,810 )
5,518,856 7,274,900
Decrease/(increase) in stocks 18,161,623 (15,160,113 )
(Increase)/decrease in trade and other debtors (1,306,863 ) 2,174,175
(Decrease)/increase in trade and other creditors (14,820,660 ) 9,867,210
Cash generated from operations 7,552,956 4,156,172

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 2025
31.1.25 1.2.24
£    £   
Cash and cash equivalents 3,993,213 2,602,853
Year ended 31st January 2024
31.1.24 1.2.23
£    £   
Cash and cash equivalents 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 2025


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.2.24 Cash flow At 31.1.25
£    £    £   
Net cash
Cash at bank and in hand 2,602,853 1,390,360 3,993,213
2,602,853 1,390,360 3,993,213
Debt
Finance leases (11,997,369 ) (1,128,984 ) (13,126,353 )
Debts falling due within 1 year (3,554,733 ) - (3,554,733 )
Debts falling due after 1 year (6,469,938 ) 554,733 (5,915,205 )
(22,022,040 ) (574,251 ) (22,596,291 )
Total (19,419,187 ) 816,109 (18,603,078 )

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST JANUARY 2025


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 2025 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
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.

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


2. ACCOUNTING POLICIES - continued

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- 15% straight line and 10% straight line
Improvements to property- straight line over 6 years
Plant and machinery- 15% to 25% straight line
Motor vehicles- 20% straight line
Lorries- straight line over 6 years
Computers and office equipment- 20% to 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.

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.

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


2. ACCOUNTING POLICIES - continued

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.

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 £392k increase in the stock provision.

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


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:

2025 2024
£    £   
Haulage 15,268 11,942
Wholegoods sales 145,489,390 151,775,914
Plant sales 3,617,094 5,281,983
Installations - 10,238
Repairs and Servicing 28,938,524 27,048,816
Online 1,854,153 1,803,783
Asset finance 116,130 96,555
Tyres 4,589,522 4,575,292
Rental income 36,048 34,332
184,656,129 190,638,855

An analysis of turnover by geographical market is given below:

2025 2024
£    £   
United Kingdom 169,385,505 175,643,131
Europe 15,270,624 14,995,724
184,656,129 190,638,855

5. EMPLOYEES AND DIRECTORS
2025 2024
£    £   
Wages and salaries 14,144,246 13,769,539
Social security costs 1,503,179 1,458,619
Other pension costs 362,847 355,949
16,010,272 15,584,107

The average number of employees during the year was as follows:
2025 2024

Sales and marketing 53 53
Service 125 115
Parts and warehousing 35 37
Tyres 14 14
Technology 11 12
Distribution and logistics 7 8
Management and administration 81 88
326 327

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


5. EMPLOYEES AND DIRECTORS - continued

The average number of employees by undertakings that were proportionately consolidated during the year was 326 (2024 - 327 ) .

2025 2024
£    £   
Directors' remuneration 369,419 290,839
Directors' pension contributions to money purchase schemes 13,214 12,188

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

Money purchase schemes 2 2

Information regarding the highest paid director is as follows:
2025 2024
£    £   
Emoluments etc 199,240 156,634
Pension contributions to money purchase schemes 7,304 6,771

6. OPERATING PROFIT

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

2025 2024
£    £   
Depreciation - owned assets 3,029,595 2,471,086
Profit on disposal of fixed assets (134,386 ) (230,080 )
Auditors' remuneration 10,000 8,700
Auditors remuneration - other
services 33,550 31,650
Foreign exchange differences (7,198 ) 8,004
Hire of plant and machinery 364,000 279,809
Other operating leases 400,753 400,031
Auditors' remuneration relating to taxation and all other services 9,730 10,825
Government grants - (5,000 )

7. EXCEPTIONAL ITEMS
2025 2024
£    £   
Impairment loss on freehold property 15,406 (71,766 )

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


8. INTEREST PAYABLE AND SIMILAR EXPENSES
2025 2024
£    £   
Bank interest 233,527 194,106
Bank loan interest 488,616 480,936
Other interest payable 966,752 718,576
Extended finance interest 669,410 543,838
Hire purchase 597,051 318,416
2,955,356 2,255,872

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2025 2024
£    £   
Current tax:
UK corporation tax 259,153 730,562
Corporation tax - prior year 229,296 (5,658 )
Total current tax 488,449 724,904

Deferred tax 306,357 314,391
Tax on profit 794,806 1,039,295

UK corporation tax has been charged at 25 % (2024 - 25 %).

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:

2025 2024
£    £   
Profit before tax 2,565,499 4,679,056
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2024 - 25 %)

641,375

1,169,764

Effects of:
Expenses not deductible for tax purposes 21,034 16,804
Capital allowances in excess of depreciation (386,550 ) (430,109 )
Adjustments to tax charge in respect of previous periods 229,296 (5,658 )
Leased asset repayments (16,773 ) 4,334
Deferred tax 306,357 314,391
Under/over provision - 4,123
Effect of changes in tax rates - (34,354 )
Marginal relief 67 -
Total tax charge 794,806 1,039,295

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


9. TAXATION - continued

Tax effects relating to effects of other comprehensive income

2025
Gross Tax Net
£    £    £   
Revaluation of freehold property (40,188 ) - (40,188 )

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
2025 2024
£    £   
A Ordinary shares of £1 each
Interim 200,000 214,574
B Ordinary shares of £1 each
Interim 200,000 214,333
400,000 428,907

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


12. TANGIBLE FIXED ASSETS

Group
Improvements
Freehold Hire to
property fleet property
£    £    £   
COST OR VALUATION
At 1st February 2024 14,489,835 12,476,226 262,019
Additions - - 15,000
Disposals - - -
Transfers from stock - 6,646,835 -
Revaluations (40,188 ) - -
Transfers to stock - (4,436,253 ) -
At 31st January 2025 14,449,647 14,686,808 277,019
DEPRECIATION
At 1st February 2024 1,368,552 1,182,403 176,574
Charge for year - 1,496,596 43,120
Eliminated on disposal - - -
Impairments (15,406 ) - -
Transfers to stock - (786,166 ) -
At 31st January 2025 1,353,146 1,892,833 219,694
NET BOOK VALUE
At 31st January 2025 13,096,501 12,793,975 57,325
At 31st January 2024 13,121,283 11,293,823 85,445

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


12. TANGIBLE FIXED ASSETS - continued

Group

Plant and Motor Computer
machinery vehicles equipment Totals
£    £    £    £   
COST OR VALUATION
At 1st February 2024 1,388,811 7,214,146 415,450 36,246,487
Additions 226,437 1,532,007 23,747 1,797,191
Disposals (35,924 ) (780,936 ) - (816,860 )
Transfers from stock - - - 6,646,835
Revaluations - - - (40,188 )
Transfers to stock - - - (4,436,253 )
At 31st January 2025 1,579,324 7,965,217 439,197 39,397,212
DEPRECIATION
At 1st February 2024 777,016 4,224,080 185,288 7,913,913
Charge for year 263,929 1,131,993 93,957 3,029,595
Eliminated on disposal (32,431 ) (655,058 ) - (687,489 )
Impairments - - - (15,406 )
Transfers to stock - - - (786,166 )
At 31st January 2025 1,008,514 4,701,015 279,245 9,454,447
NET BOOK VALUE
At 31st January 2025 570,810 3,264,202 159,952 29,942,765
At 31st January 2024 611,795 2,990,066 230,162 28,332,574

Included in cost or valuation of land and buildings is freehold land of £4,284,833 (2024 - £4,365,789) which is not depreciated.

The net book value of fixed assets of £29,942,765 (2024: £28,332,574) includes an amount of £15,430,213 (2024: £13,345,300) 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 £2,253,239 (2024: £1,944,165).

Cost or valuation at 31st January 2025 is represented by:

Improvements
Freehold Hire to
property fleet property
£    £    £   
Valuation in 2014 479,006 - -
Valuation in 2016 613,257 - -
Valuation in 2021 2,332,267 - -
Valuation in 2024 (40,188 ) - -
Cost 11,065,305 14,686,808 277,019
14,449,647 14,686,808 277,019

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


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
Valuation in 2024 - - - (40,188 )
Cost 1,579,324 7,965,217 439,197 36,012,870
1,579,324 7,965,217 439,197 39,397,212

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

2025 2024
£    £   
Cost 11,065,305 11,065,305

Value of land in freehold land and buildings 4,284,833 4,365,789

Freehold land and buildings were valued on an open market basis on 2nd February 2022 by Savills and subsequent addition on 24th May 2024 by CBRE.

Company
Improvements
Freehold to
property property Totals
£    £    £   
COST OR VALUATION
At 1st February 2024 14,489,835 10,960 14,500,795
Revaluations (40,188 ) - (40,188 )
At 31st January 2025 14,449,647 10,960 14,460,607
DEPRECIATION
At 1st February 2024 1,368,552 2,519 1,371,071
Charge for year - 438 438
Impairments (15,406 ) - (15,406 )
At 31st January 2025 1,353,146 2,957 1,356,103
NET BOOK VALUE
At 31st January 2025 13,096,501 8,003 13,104,504
At 31st January 2024 13,121,283 8,441 13,129,724

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


12. TANGIBLE FIXED ASSETS - continued

Company

Included in cost or valuation of land and buildings is freehold land of £ 4,284,833 (2024 - £ 4,365,789 ) which is not depreciated.

Cost or valuation at 31st January 2025 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
Valuation in 2025 (40,188 ) - (40,188 )
Cost 11,065,305 10,960 11,076,265
14,449,647 10,960 14,460,607

Investment property was valued on an open market basis on 2nd February 2022 by Savills and subsequent addition on 24th May 2024 by CBRE.

13. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1st February 2024
and 31st January 2025 3,173,289
NET BOOK VALUE
At 31st January 2025 3,173,289
At 31st January 2024 3,173,289


FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


13. FIXED ASSET INVESTMENTS - continued


Name Registered office Principle activity Class of
shares
Holding
Farol Limited Rycote Lane Farm, Milton
Common, Thame, Oxon, OX9
2NZ.
Sale of new and
used farm machinery
Ordinary 100%
Thamesmead Limited Thame Mead Farm, Long
Crendon Road, Thame, OX9
3SG
Sale of commercial
vehicles
Ordinary 100%
Look 4 Tyres Limited Rycote Lane Farm, Milton
Common, Thame, Oxon, OX9
2NZ.
Dormant company Ordinary 100%

All the above subsidiaries are included in the consolidated financial statements. Look 4 Tyres Limited is held indirectly.

14. STOCKS

Group
2025 2024
£    £   
New & secondhand machinery 41,111,960 58,717,966
Spare parts 5,206,871 5,579,932
Tyres 717,129 809,419
Work-in-progress 274,055 364,321
47,310,015 65,471,638

The stock provision has increased by £66,289 (2024: £607,439 increase), which has been charged to the profit and loss.

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2025 2024 2025 2024
£    £    £    £   
Trade debtors 9,455,620 10,929,456 - 10,300
Other debtors 1,034,866 778,300 1,034,866 778,300
Tax 609,242 238,555 - -
Prepayments and accrued income 6,641,726 4,117,593 - -
17,741,454 16,063,904 1,034,866 788,600

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


16. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2025 2024 2025 2024
£    £    £    £   
Bank loans and overdrafts (see note 18) 3,554,733 3,554,733 554,733 554,733
Hire purchase contracts (see note 19) 11,316,509 5,122,827 - -
Trade creditors 20,139,004 42,961,508 - -
Amounts owed to group undertakings - - 1,389,282 102,924
Tax 28,700 104,254 20,185 88,002
Social security and other taxes 316,941 329,222 7,529 2,062
VAT 1,484,460 418,748 59,247 56,610
Other creditors 317,397 213,386 317,397 213,386
Directors' current accounts 1,747,946 2,546,365 1,747,946 2,546,365
Accruals and deferred income 10,662,345 5,379,497 11,802 10,500
Stocking loans 9,262,974 7,701,421 - -
58,831,009 68,331,961 4,108,121 3,574,582

Stock loans of £9,262,974 (2024: £7,701,421) 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 £75,433 (2024: £74,470).

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

Group Company
2025 2024 2025 2024
£    £    £    £   
Bank loans (see note 18) 5,915,205 6,469,938 5,915,205 6,469,938
Hire purchase contracts (see note 19) 1,809,844 6,874,542 - -
7,725,049 13,344,480 5,915,205 6,469,938

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


18. LOANS

An analysis of the maturity of loans is given below:

Group Company
2025 2024 2025 2024
£    £    £    £   
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 4,255,872 4,810,605 4,255,872 4,810,605

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
2025 2024
£    £   
Net obligations repayable:
Within one year 11,316,509 5,122,827
Between one and five years 1,809,844 6,874,542
13,126,353 11,997,369

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


19. LEASING AGREEMENTS - continued

Group
Non-cancellable operating leases
2025 2024
£    £   
Within one year 400,808 399,608
Between one and five years 370,364 530,364
In more than five years 917,665 986,923
1,688,837 1,916,895

20. SECURED DEBTS

The following secured debts are included within creditors:

Group Company
2025 2024 2025 2024
£    £    £    £   
Bank loans 9,469,938 10,024,671 6,469,938 7,024,671
Hire purchase contracts 13,126,353 11,997,369 - -
Stocking loans 9,262,974 7,701,421 - -
31,859,265 29,723,461 6,469,938 7,024,671

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
2025 2024 2025 2024
£    £    £    £   
Deferred tax 3,406,304 3,111,540 529,983 508,915

Group
Deferred
tax
£   
Balance at 1st February 2024 3,111,540
Provided during year 294,764
Balance at 31st January 2025 3,406,304

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


21. PROVISIONS FOR LIABILITIES - continued

Company
Deferred
tax
£   
Balance at 1st February 2024 508,915
Provided during year 21,068
Balance at 31st January 2025 529,983

22. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2025 2024
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 2024 24,840,480 14,980 2,808,588 14,274 27,678,322
Profit for the year 1,770,693 1,770,693
Dividends (400,000 ) (400,000 )
Property revaluation - - (40,188 ) - (40,188 )
Deferred tax arising from
revaluation of land and
buildings - - 11,592 - 11,592
At 31st January 2025 26,211,173 14,980 2,779,992 14,274 29,020,419

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


23. RESERVES - continued

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

At 1st February 2024 3,827,556 2,808,588 11,334 6,647,478
Profit for the year 809,745 809,745
Dividends (400,000 ) (400,000 )
Property revaluation - (40,188 ) - (40,188 )
Deferred tax arising from
revaluation of land and
buildings - 11,592 - 11,592
At 31st January 2025 4,237,301 2,779,992 11,334 7,028,627


24. CAPITAL COMMITMENTS
2025 2024
£    £   
Contracted but not provided for in the
financial statements 478,229 400,000

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 Group is committed to buy the vehicles directly from the finance provider at the end of the contract hire period. At the year end the Group was committed to purchase vehicles to the value of £13.5m (2024 - £12.3m) 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.

Entities with control, joint control or significant influence over the entity
2025 2024
£    £   
Amount due from related party 1,034,866 778,300

Key management personnel of the entity or its parent (in the aggregate)
2025 2024
£    £   
Interest charges 91,574 152,186
Amount due to related party 1,747,946 2,546,365

FAROL HOLDINGS LIMITED (REGISTERED NUMBER: 01143172)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST JANUARY 2025


26. RELATED PARTY DISCLOSURES - continued

Other related parties
2025 2024
£    £   
Amount due to related party 317,397 213,381

During the year, a total of key management personnel compensation of £ 950,804 (2024 - £ 825,501 ) was paid.