REGISTERED NUMBER: 00199317 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

SHARMANS AGRICULTURAL LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

S Barclay

F Disney

S A Hazard

J Madge

SECRETARY:

S A Hazard

REGISTERED OFFICE:

College Farm

Gonerby Moor

Grantham

NG32 2AB

REGISTERED NUMBER:

00199317 (England and Wales)

AUDITORS:

Clement Millar

Statutory Auditors

Spiersbridge House

1 Spiersbridge Way

Glasgow

G46 8NG

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

Operating review

The company's trading performance during the year has been in line with the directors expectations. Turnover is similar to the previous year, Gross margins have reduced by 1.5% on last year.

The figures are reflective of industry performance in the year. Overhead expenses have been a key area that the company continuously and consistently keep under tight control, with close monitoring of key areas throughout the business being fundamental to its success.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial Risk Management

The company monitors working capital management strictly. Financial management risk is largely negated due to the net worth and financial viability of the company.

Competitive Risk Assessment

The company operates in a competitive environment, however, the directors believe that the company through continued focus on cost reduction and continued investment in new products is well placed to continue developing its market share.

DIRECTORS' STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE SUCCESS OF THE COMPANY

We have a legal responsibility under Section 172 of the Companies Act 2006 to act in good faith to promote the company success and have regard to the long-term effect our decisions have on the company and its stakeholders.

The principle business is the supply and aftersales service of new and used agricultural tractors and farm equipment to the farming industry.The company continues to strive to provide the highest levels of customer service and satisfaction, together with providing stable employment, training and financial reward for its employees and acting as a valued business partner for its suppliers and customers.We have established over many years long -term relationships with our customers and aim to continue efficient practices at every opportunity based on strong communication and close understanding of customers' requirements. Strategic decisions are based on long-term objectives, including investment in premises and facilities, training and software systems bespoke to our industry and fully integrated with our suppliers.

Our key stakeholders and engagement with them are as follows-

Employees

The strong work ethic and motivated attitude of our team, staff retention, training and personal career development provide an advantage to our customers in trading with our business.

Suppliers

We form mutually beneficial partnerships with our suppliers to provide best market share and financial performance to enhance customer experience in the relationship with our business.

Customers

We form a friendly, fair, professional and transparent relationship with our customers, establishing efficient working practice, adopting the latest in innovation and technology to best support their needs. We aim to provide market leading products and appropriate solutions to enhance business and increase profitability for our customers.

Environment

We are an equal opportunity and ethical employer and act in a responsible manner to our environment, adopting environmentally friendly practices wherever possible.

KEY PERFORMANCE INDICATORS (KPI'S)

Financial KPI's

The directors use Financial Key Performance Indicators to measure gross and net profit margins as well as Return On Capital Employed (ROCE), Return on Investment (ROI) and current ratio's to review the company's development and performance during the year and position at year end.

The KPI's assessed were in line with management expectations.

Non Financial KPI's

Non Financial Key Performance Indicators are also used by the directors and include statistical information relating to staff hours and service levels. The directors believe that monitoring non financial KPI's contributes substantially in assessing non-financial business performance which inevitably leads to increased customer satisfaction and an increase in profitability.

FUTURE PROSPECTS

The company's operations have generated healthy cash flows and the balance sheet remains strong. The continued investment in cost management and efficiencies should ensure that the company maintains and continues to improve its performance and customer service levels going forward.

Opportunities for growth give the directors confidence that the company is well placed to continue its strong position going forward.

ON BEHALF OF THE BOARD:

S A Hazard - Secretary

12 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

S Barclay

F Disney

S A Hazard

J Madge

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Clement Millar, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S A Hazard - Secretary

12 September 2025

Opinion

We have audited the financial statements of Sharmans Agricultural Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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:

Enquiry of management and those charged with governance, including consideration of known or suspected

instances of non-compliance with laws, regulations and fraud.

- Reviewing minutes of meetings of those charged with governance.

- Review of legal expenditure in the year to identify non-compliance with laws, regulations and fraud.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with

applicable laws and regulations.

- Performing audit work over the risk of management override of controls, including testing of journal entries and

other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the

normal course of business and reviewing accounting estimates for bias. In particular the calculation of stock

related provisions and regulations.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements as we will be less likely to be aware of instances of non-compliance.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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.

Scott Millar (Senior Statutory Auditor)

for and on behalf of Clement Millar

Statutory Auditors

Spiersbridge House

1 Spiersbridge Way

Glasgow

G46 8NG

12 September 2025

TURNOVER

3

63,273,790

63,372,436

Cost of sales

56,957,122

56,096,074

GROSS PROFIT

6,316,668

7,276,362

Administrative expenses

5,638,788

4,575,941

677,880

2,700,421

Other operating income

48,383

12,383

OPERATING PROFIT

5

726,263

2,712,804

Interest receivable and similar income

326,989

198,930

1,053,252

2,911,734

Interest payable and similar expenses

6

34,030

30,427

PROFIT BEFORE TAXATION

1,019,222

2,881,307

Tax on profit

7

991,086

213,530

PROFIT FOR THE FINANCIAL YEAR

28,136

2,667,777

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

28,136

2,667,777

FIXED ASSETS

Tangible assets

8

12,356,050

11,315,066

CURRENT ASSETS

Stocks

9

22,556,696

29,900,747

Debtors

10

4,535,898

6,948,359

Cash at bank

6,810,215

2,830,475

33,902,809

39,679,581

CREDITORS

Amounts falling due within one year

11

11,266,498

16,830,471

NET CURRENT ASSETS

22,636,311

22,849,110

TOTAL ASSETS LESS CURRENT LIABILITIES

34,992,361

34,164,176

PROVISIONS FOR LIABILITIES

12

1,336,111

536,062

NET ASSETS

33,656,250

33,628,114

CAPITAL AND RESERVES

Called up share capital

13

1,775

1,775

Capital redemption reserve

14

28,750

28,750

Retained earnings

14

33,625,725

33,597,589

SHAREHOLDERS' FUNDS

33,656,250

33,628,114

The financial statements were approved by the Board of Directors and authorised for issue on 12 September 2025 and were signed on its behalf by:

S Barclay - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

1,775

30,929,812

28,750

30,960,337

Changes in equity

Total comprehensive income

-

2,667,777

-

2,667,777

Balance at 31 December 2023

1,775

33,597,589

28,750

33,628,114

Changes in equity

Total comprehensive income

-

28,136

-

28,136

Balance at 31 December 2024

1,775

33,625,725

28,750

33,656,250

Cash flows from operating activities

Cash generated from operations

1

5,831,473

1,226,720

Interest paid

(34,030

)

(30,427

)

Tax paid

(467,608

)

(652,351

)

Net cash from operating activities

5,329,835

543,942

Cash flows from investing activities

Purchase of tangible fixed assets

(6,022,736

)

(8,332,145

)

Sale of tangible fixed assets

4,345,652

5,111,669

Interest received

326,989

198,930

Net cash from investing activities

(1,350,095

)

(3,021,546

)

Increase/(decrease) in cash and cash equivalents

3,979,740

(2,477,604

)

Cash and cash equivalents at beginning of year

2

2,830,475

5,308,079

Cash and cash equivalents at end of year

2

6,810,215

2,830,475

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

2024

2023

£

£

Profit before taxation

1,019,222

2,881,307

Depreciation charges

883,314

823,662

Profit on disposal of fixed assets

(247,214

)

(719,927

)

Finance costs

34,030

30,427

Finance income

(326,989

)

(198,930

)

1,362,363

2,816,539

Decrease/(increase) in stocks

7,344,051

(9,126,790

)

Decrease/(increase) in trade and other debtors

2,454,592

(3,560,945

)

(Decrease)/increase in trade and other creditors

(5,329,533

)

11,097,916

Cash generated from operations

5,831,473

1,226,720

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

6,810,215

2,830,475

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,830,475

5,308,079

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

2,830,475

3,979,740

6,810,215

2,830,475

3,979,740

6,810,215

Total

2,830,475

3,979,740

6,810,215

1.	STATUTORY INFORMATION

Sharmans Agricultural 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 Company Information page.

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.

TURNOVER

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

TANGIBLE FIXED ASSETS

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

at varying rates on cost

Improvements to property

-

at varying rates on cost

Plant and machinery

-

20% on cost

Motor vehicles

-

at varying rates on cost

STOCKS

Stocks 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 Statement of Comprehensive Income, 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 balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

LEASING AND HIRE PURCHASE COMMITMENTS

Assets held under finance leases or hire purchase contracts are capitalised under tangible fixed assets in the balance sheet and depreciated over their useful economic lives. The capital element of the future payments is treated as a liability and the interest element charged to the profit and loss account.

Rentals payable under operating leases are charged to the profit and loss account on a straight-line basis over the term of the agreement.

3.

TURNOVER

Turnover represents the amounts derived from the provision of goods and services which fall within the company's ordinary activities.

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

3,376,623

2,930,789

Other pension costs

215,467

202,977

3,592,090

3,133,766

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

2024

2023

Full-time

120

120

2024

2023

£

£

Directors' remuneration

280,250

242,500

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

101,500

89,167

5.	OPERATING PROFIT

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

2024

2023

£

£

Depreciation - owned assets

883,314

823,662

Profit on disposal of fixed assets

(247,214

)

(719,927

)

Auditors' remuneration

6,250

6,250

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank charges

20,364

28,835

Loan interest

13,617

-

Loss on currency exchange

49

1,592

34,030

30,427

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

191,037

432,760

Deferred tax

800,049

(219,230

)

Tax on profit

991,086

213,530

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

8.	TANGIBLE FIXED ASSETS

Improvements

Freehold

to

Plant and

property

property

machinery

£

£

£

COST

At 1 January 2024

5,049,231

512,221

397,104

Additions

2,633,839

105,433

81,057

Disposals

-

-

-

At 31 December 2024

7,683,070

617,654

478,161

DEPRECIATION

At 1 January 2024

1,211,049

145,057

278,806

Charge for year

123,011

10,564

36,921

Eliminated on disposal

-

-

-

At 31 December 2024

1,334,060

155,621

315,727

NET BOOK VALUE

At 31 December 2024

6,349,010

462,033

162,434

At 31 December 2023

3,838,182

367,164

118,298

Solar

Motor

panels

vehicles

Totals

£

£

£

COST

At 1 January 2024

142,000

8,638,360

14,738,916

Additions

-

3,202,407

6,022,736

Disposals

-

(4,424,078

)

(4,424,078

)

At 31 December 2024

142,000

7,416,689

16,337,574

DEPRECIATION

At 1 January 2024

78,103

1,710,835

3,423,850

Charge for year

7,100

705,718

883,314

Eliminated on disposal

-

(325,640

)

(325,640

)

At 31 December 2024

85,203

2,090,913

3,981,524

NET BOOK VALUE

At 31 December 2024

56,797

5,325,776

12,356,050

At 31 December 2023

63,897

6,927,525

11,315,066

9.

STOCKS

2024

2023

£

£

Stocks

22,556,696

29,900,747

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

4,117,866

5,907,356

Tax

42,131

-

VAT

57,176

566,110

Prepayments and accrued income

318,725

474,893

4,535,898

6,948,359

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade creditors

10,127,990

16,362,715

Tax

-

234,440

Other creditors

900,000

-

Accrued expenses

238,508

233,316

11,266,498

16,830,471

12.	PROVISIONS FOR LIABILITIES

2024

2023

£

£

Deferred tax

1,336,111

536,062