Company registration number 12977697 (England and Wales)
AGVANTAGE UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Whitings LLP
Chartered Accountants
Fenland House
15B Hostmoor Avenue
March
Cambridgeshire
PE15 0AX
AGVANTAGE UK LIMITED
COMPANY INFORMATION
Director
Mr A L Carse
Company number
12977697
Registered office
12/13 The Crescent
Wisbech
Cambridgeshire
PE13 1EH
Auditor
Whitings LLP
Fenland House
15B Hostmoor Avenue
March
Cambridgeshire
PE15 0AX
AGVANTAGE UK LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 28
AGVANTAGE UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The director aims to present a balanced review of the company's performance and development during the year that is consistent with the size and nature of the business and that also covers the principal risks and uncertainties faced by the company.

 

Principal activities

The principal activity of the company continued to be that of wholesale of agricultural machinery and equipment and related after sales business including spare parts and repair shop.

Review of the business

The Company has seen an increase in turnover this year in line with its consistent year on year growth and expectations as well as there being more favourable market conditions during the year. 

 

Despite the ongoing cost pressures that the company faces the aim again for the upcoming year is growth within the market.

Principal risks and uncertainties

In the course of normal business, the director continually assesses significant risks faced and takes action to mitigate the potential impact.

 

The following risks, whilst not intended to be a comprehensive analysis, constitute (in the opinion of the director) the principal risks and uncertainties currently facing the company

Economic conditions - the company operates in an industry which can be susceptible to adverse economic conditions through cost pressures, commodity price fluctuations and political changes. Although the director acknowledges this risk, the core offering of the company is well diversified to combat this. The parent company continues to meet the demand of its customers at competitive prices.

 

Competitive pressures - the company operates in a highly competitive industry and faces competition from a number of sources. This competition may lead to pricing pressure which could result in squeezed profit margins and potential loss of business to other market players. The director continually monitors this risk and the company holds a strong position in the market and is highly regarded within the industry

 

Regulation - the company operates in an industry which is subject to numerous laws and regulations covering a wide range of matters including health & safety, employment and other operating issues. The company is continually ensuring that the compliance demands of these regulatory factors are met and the director has ensured that the policies and culture in relation to this are well communicated to all employees.

 

Key performance indicators

The director considers the key performance indicators of the business to be turnover, gross profit, gross profit margin and net profit margin.

Turnover for the period is £15,682,399 (2023 - £10,905,223)

Gross Profit for the period is £2,849,524 (2023 - £2,144,107)

Gross Profit margin for the period is 18.17% (2023 - 19.66%)

Net Profit margin for the period is 6.32% (2023 - 4.81%)

AGVANTAGE UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

On behalf of the board

Mr A L Carse
Director
3 June 2025
AGVANTAGE UK LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The director presents his annual report and financial statements for the year ended 31 December 2024.

Results and dividends

The profit for the year, after taxation, amounted to £742,731 (2023 - £374,459).

 

No dividends have been proposed at the year end (2023 - £Nil).

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr A L Carse
Post reporting date events

There have been no significant events affecting the Company since the year end.

Future developments

There are no future developments that require disclosure.

Auditor

Whitings LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the director is required to:

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

AGVANTAGE UK LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr A L Carse
Director
3 June 2025
AGVANTAGE UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AGVANTAGE UK LIMITED
- 5 -
Opinion

We have audited the financial statements of Agvantage UK Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

AGVANTAGE UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AGVANTAGE UK LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

- the identification, evaluation and compliance with laws and regulations; and

- the detection and response to the risks of fraud.

 

 

AGVANTAGE UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AGVANTAGE UK LIMITED (CONTINUED)
- 7 -

- evaluation of the programmes and controls established to address the risks related to irregularities and fraud;

- testing journal entries, in particular journal entries relating to management estimates and entries determined to be large or relating to unusual transactions;

- challenging assumptions and judgements made by management in its significant accounting estimates;

- identifying and testing related party transactions.

These audit procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error and detecting irregularities that result from fraud is inherently more difficult than detecting those that result from error, as fraud may involve collusion, deliberate concealment, forgery or intentional misrepresentations. Also, the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it.

The engagement partner's assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagement team's:

In assessing the potential risks of material misstatement, we obtained an understanding of:

 

 

 

 

AGVANTAGE UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AGVANTAGE UK LIMITED (CONTINUED)
- 8 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

The prior period financial statements were not audited due to the company previously being entitled to exemption from audit under section 477 of the Companies Act 2006 related to small companies.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Band BA FCA (Senior Statutory Auditor)
For and on behalf of Whitings LLP, Statutory Auditor
Chartered Accountants
Fenland House
15B Hostmoor Avenue
March
Cambridgeshire
PE15 0AX
3 June 2025
AGVANTAGE UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
5
15,682,399
10,905,223
Cost of sales
(12,832,875)
(8,761,116)
Gross profit
2,849,524
2,144,107
Administrative expenses
(1,736,499)
(1,499,524)
Operating profit
6
1,113,025
644,583
Interest payable and similar expenses
9
(122,614)
(120,556)
Profit before taxation
990,411
524,027
Tax on profit
10
(247,680)
(149,568)
Profit for the financial year
742,731
374,459

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 14 to 28 form part of these financial statements.

AGVANTAGE UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
£
£
Profit for the year
742,731
374,459
Other comprehensive income
-
-
Total comprehensive income for the year
742,731
374,459

The notes on pages 14 to 28 form part of these financial statements.

AGVANTAGE UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
321,997
235,507
Current assets
Stocks
12
4,932,475
3,301,560
Debtors
14
991,316
688,921
Cash at bank and in hand
1,582,412
1,579,438
7,506,203
5,569,919
Creditors: amounts falling due within one year
15
(5,586,515)
(4,315,397)
Net current assets
1,919,688
1,254,522
Total assets less current liabilities
2,241,685
1,490,029
Creditors: amounts falling due after more than one year
16
(558,511)
(547,781)
Provisions for liabilities
Deferred tax liability
19
57,072
58,877
(57,072)
(58,877)
Net assets
1,626,102
883,371
Capital and reserves
Called up share capital
22
100,000
100,000
Profit and loss reserves
23
1,526,102
783,371
Total equity
1,626,102
883,371

The notes on pages 14 to 28 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 3 June 2025
Mr A L Carse
Director
Company registration number 12977697 (England and Wales)
AGVANTAGE UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
100,000
408,912
508,912
Year ended 31 December 2023:
Profit and total comprehensive income
-
374,459
374,459
Balance at 31 December 2023
100,000
783,371
883,371
Year ended 31 December 2024:
Profit and total comprehensive income
-
742,731
742,731
Balance at 31 December 2024
100,000
1,526,102
1,626,102

The notes on pages 14 to 28 form part of these financial statements.

AGVANTAGE UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
1
(846,481)
1,351,424
Interest paid
(122,614)
(120,556)
Income taxes paid
(121,606)
-
0
Net cash (outflow)/inflow from operating activities
(1,090,701)
1,230,868
Investing activities
Purchase of tangible fixed assets
(79,444)
(46,682)
Net cash used in investing activities
(79,444)
(46,682)
Financing activities
Proceeds from borrowings
1,239,772
-
0
Payment of finance leases obligations
(66,661)
(48,593)
Net cash generated from/(used in) financing activities
1,173,111
(48,593)
Net increase in cash and cash equivalents
2,966
1,135,593
Cash and cash equivalents at beginning of year
1,579,438
443,845
Cash and cash equivalents at end of year
1,582,404
1,579,438
Relating to:
Cash at bank and in hand
1,582,412
1,579,438
Bank overdrafts included in creditors payable within one year
(8)
-
0

The notes on pages 14 to 28 form part of these financial statements.

AGVANTAGE UK LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
1
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit after taxation
742,731
374,459
Adjustments for:
Taxation charged
247,680
149,568
Finance costs
122,614
120,556
Depreciation and impairment of tangible fixed assets
86,203
70,156
Movements in working capital:
Increase in stocks
(1,630,915)
(602,916)
Increase in debtors
(302,395)
(88,925)
(Decrease)/increase in creditors
(245,686)
1,180,093
Increase in deferred income
133,287
148,433
Cash (absorbed by)/generated from operations
(846,481)
1,351,424
2
Analysis of changes in net funds
1 January 2024
Cash flows
New finance leases
31 December 2024
£
£
£
£
Cash at bank and in hand
1,579,438
2,974
-
1,582,412
Bank overdrafts
-
0
(8)
-
(8)
1,579,438
2,966
-
0
1,582,404
Borrowings excluding overdrafts
-
(1,239,772)
-
(1,239,772)
Obligations under finance leases
(107,267)
66,661
(93,249)
(133,855)
1,472,171
(1,170,145)
(93,249)
208,777
3
Accounting policies
Company information

Agvantage UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 12/13 The Crescent, Wisbech, Cambridgeshire, PE13 1EH.

3.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Accounting policies
(Continued)
- 15 -
3.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

3.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

3.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
10% Straight Line
Plant and equipment
20% Straight Line
Fixtures and fittings
33% Straight Line
Motor vehicles
20% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

3.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Accounting policies
(Continued)
- 16 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

3.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

3.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

3.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Accounting policies
(Continued)
- 17 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Accounting policies
(Continued)
- 18 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

3.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

3.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Accounting policies
(Continued)
- 19 -
3.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

3.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

3.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

3.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
4
Judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgments and estimates. The items in the financial statements where these judgments and estimates have been made include the following:

 

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed on an annual basis and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programs are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Depreciation charged to the Profit & Loss account is disclosed within the notes to the accounts.

 

When determining whether there are any indicators of impairment in relation to the company's tangible assets various factors are taken into account prior to reaching a decision, these include the economic viability and expected future financial performance of the asset.

 

Stock is recognised at the lower of cost and net realisable value in relation to raw materials and wholegoods. Included in the stock figure is work in progress that is valued based on the level of completion.

 

Provision for obsolete stocks - stock categories are reviewed on a regular basis for slow moving and obsolete items. Where the items recoverable amount is considered to be less than its initial cost value an estimate is made for this difference. At the Balance Sheet date the provision amounted to £77,970 (2023 - £nil).

5
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of wholegoods
13,423,686
8,958,597
Sale of parts
1,577,676
1,496,802
Repairs and Servicing
497,730
449,824
Machinery Hire
183,307
-
15,682,399
10,905,223
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
15,243,242
8,922,243
Outside of United Kingdom
439,157
1,982,980
15,682,399
10,905,223
AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
6
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(99,336)
29,104
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
-
0
Depreciation of owned tangible fixed assets
86,203
70,156
Impairment of stocks recognised or reversed
77,970
-
0
Operating lease charges
69,923
56,679
7
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
12,000
-
0
8
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Management and administration
11
14
Technician
8
-
Total
19
14

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
835,687
622,500
Pension costs
15,777
14,132
851,464
636,632
AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
114,586
114,700
Other finance costs:
Interest on finance leases and hire purchase contracts
8,028
5,856
122,614
120,556
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
249,486
121,607
Deferred tax
Origination and reversal of timing differences
(1,806)
27,961
Total tax charge
247,680
149,568

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
990,411
524,027
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
247,603
123,251
Tax effect of expenses that are not deductible in determining taxable profit
3,134
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(370)
Permanent capital allowances in excess of depreciation
(1,252)
(1,274)
Deferred Tax
(1,805)
27,961
Taxation charge for the year
247,680
149,568
AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
11
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
24,680
110,608
19,831
236,104
391,223
Additions
92,395
30,013
2,036
48,249
172,693
At 31 December 2024
117,075
140,621
21,867
284,353
563,916
Depreciation and impairment
At 1 January 2024
5,020
41,352
17,277
92,067
155,716
Depreciation charged in the year
5,037
25,519
1,612
54,035
86,203
At 31 December 2024
10,057
66,871
18,889
146,102
241,919
Carrying amount
At 31 December 2024
107,018
73,750
2,978
138,251
321,997
At 31 December 2023
19,660
69,256
2,554
144,037
235,507

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
136,981
141,497
Leasehold improvements
44,250
-
181,231
141,497
12
Stocks
2024
2023
£
£
Wholegoods and parts
4,932,475
3,301,560

More information on impairment movements in the year is given in note 13.

 

Stock is reviewed regularly by management to ensure it is carried at the lower of cost and net realisable value in accordance with the accounting policies. Where indicators of impairment are identified, management estimates the extent of the impairment and adjusts the carrying value of the affected items accordingly. These estimates consider factors such as obsolescence, slow-moving stock, and market conditions.

AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
13
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2024
2023
Notes
£
£
In respect of:
Stocks
12
77,970
-
0
Recognised in:
Cost of sales
77,970
-
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
901,645
598,002
Amounts owed by group undertakings
55,098
-
0
Other debtors
6,787
-
0
Prepayments and accrued income
27,786
90,919
991,316
688,921
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
8
-
0
Obligations under finance leases
18
65,344
49,486
Other borrowings
17
1,239,772
-
0
Trade creditors
703,306
262,736
Amounts owed to group undertakings
2,065,635
2,711,847
Corporation tax
249,486
121,607
Other taxation and social security
144,092
418,147
Deferred income
20
519,220
385,933
Other creditors
383,527
87,052
Accruals and deferred income
216,125
278,589
5,586,515
4,315,397
AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
68,511
57,781
Other creditors
490,000
490,000
558,511
547,781
17
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
8
-
0
Loans from group undertakings
1,239,772
-
0
1,239,780
-
0
Payable within one year
1,239,780
-
0
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
65,344
49,486
In two to five years
68,511
57,781
133,855
107,267

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and leasehold property improvements. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets.

 

Net obligations under finance leases and hire purchase are secured on the assets to which they relate to.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
57,072
58,877
AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
Deferred taxation
(Continued)
- 26 -
2024
Movements in the year:
£
Liability at 1 January 2024
58,877
Credit to profit or loss
(1,805)
Liability at 31 December 2024
57,072

 

20
Deferred income
2024
2023
£
£
Other deferred income
519,220
385,933
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,777
14,132

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £100 each
750
750
75,000
75,000
Ordinary B shares of £100 each
250
250
25,000
25,000
1,000
1,000
100,000
100,000
23
Profit and loss reserves
2024
2023
£
£
At the beginning of the year
783,371
408,912
Profit for the year
742,731
374,459
At the end of the year
1,526,102
783,371
AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
24
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for the Coates site.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
49,172
49,172
Between two and five years
196,688
196,688
In over five years
98,344
147,516
344,204
393,376
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
94,067
-
26
Related party transactions
Remuneration of key management personnel

Key management personnel received remuneration during the year of £nil (2023 - £nil).

Transactions with related parties
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Parent Company
-
0
-
0
11,073
11,250
Fellow Group Undertakings
22,944
59,129
9,740,305
4,489,644
Other related parties
103
2
288,812
159,737

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Parent Company
1,625,845
375,000
Fellow Group Undertakings
2,054,562
2,711,847
Other related parties
351,137
137,137
AGVANTAGE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
26
Related party transactions
(Continued)
- 28 -

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Fellow Group Undertakings
55,098
-

The director is also a director and shareholder of Carse Group Ltd.

27
Ultimate controlling party

The company is a subsidiary of Definco NV and Carse Group Limited.

Definco NV is owned by Dewulf Invest NV who is the ultimate controlling party and incorporated in Belgium. The consolidated financial statements can be obtained at the following address: Moorseelsesteenweg 20, 8800 Roeselare, Belgium.

 

 

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