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

The principal activity of the company and group continued to be that of farming.

The results for the year show a loss before taxation of £406,861 (2023 - £589,649) from a turnover of £66,908,592 (2023 - £66,286,084). Shareholders’ funds have increased in the year to £12,072,495 (2023 - £11,684,299) after a profit for the year after tax of £459,696 (2023 - £310,266 profit) and dividends paid of £71,500 (2023 - £175,500).

The group benefits from the diversity of its farming operations; namely fruit, arable crops and poultry. As with any business engaged in growing fresh produce or livestock, growing conditions have a significant influence over the size and quality of the crop, and the Group’s diversification provides a natural hedge.

The gross profit margin has risen from 6.08% to 7.14% in 2024 as a result of as a result of improved performance in poultry in particular.

We continue to focus on ensuring that all parts of our growing business have the systems, processes, resources and skills required for success in the future.

The key business risks and uncertainties facing the group relate to increasing input prices and interest rates, strong competition in the markets in which we and our customers operate, growing conditions and labour availability.

The group's key financial performance indicators during the period were as follows:

The group has a number key non-financial indicators that are reported and monitored routinely to assess performance. Examples in the fresh produce businesses are crop output per acre, farm input usage per acre, seasonal worker returnee rates and harvest speed. In the poultry businesses we report on feed conversion, bird growth and mortality, which are combined in the European Poultry Efficiency Factor (EPEF).

The Companies (Miscellaneous Reporting) Regulations 2018 requires business' to publish a statement describing how the board of directors have had regard to the matters set out in Section 172(1)(a) to (f) of the Companies Act 2006. Section 172(1)(a) to (f) requires each director to act in the way he or she considered would be most likely to promote the success of the group for the benefit of its members as a whole, with regard to the following matters:

(a) The likely consequences of any decision in the long-term

The group maintains the ethos of a family business with a clear objective of sustainable long term success. The board therefore continue to recognise the importance of any decisions in the long term for all key stakeholders.

(b) The interests of the group's employees

By nature of the agriculture sectors which the group service, the recruitment, development and retention of high quality employees is a key success factor. The board are therefore considerate of this and the need to support the health and safety of all employees.

(c) The need to foster the group's business relationships with suppliers, customers and others

The board ensures that good relationships are maintained with suppliers, customers and others, ensuring fair business practices are followed.

(d) The impact of the group's operations on the community and environment

As a rural and agricultural business, the board are highly considerate of the community and environmental impact of the group's operations.

(e) The desirability of the group maintaining a reputation for high standards of business conduct

The board of directors are closely involved in the day to day operations of the business, encouraging and enforcing a strong control environment through appropriate policies and good ethics.

(f) The need to act fairly as between members of the group

The board believe they have acted in good faith to promote the objectives of the group for the benefit of its members with due regard to the key stakeholders.

The board of directors continue to work under the following mission statement: "to sustainably deliver the highest quality products to our customers and partners, achieve profitable returns for all parties and allow future generations to continue working in the farming sector."

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £71,500. The directors do not recommend payment of a further dividend.

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

The group's financial instruments comprise of cash, trade debtors, trade creditors and loans. The main purpose of these financial instruments is to finance the trading operations of the group and where possible, to use debt financing for capital projects and equipment which will deliver economic benefits over a number of years.

The group is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages these risks through tight credit control procedures. The group uses a mixture of fixed and variable interest rate loans to provide certainty over debt servicing requirements and to protect the business against adverse changes in interest rates over the life of the loan.

The group continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to remain competitive in the market.

Following the year end, the group sold a poultry shed for £3 million less fees.

The directors expect an increase in the level of the group's activities and an improvement in gross margin in the forthcoming year ending 31 December 2025.

The group headed by E C Drummond (Agriculture) Ltd has prepared the following in accordance with required Streamlined Energy and Carbon Reporting (SECR). The following subsidiaries are exempt from reporting within the group's SECR due to their size: Brackley Farms Limited, ECD Poultry Limited and Homme Soft Fruit Limited. Consequently the SECR includes only the results relating to E C Drummond (Agriculture) Ltd as an individual entity.

Emissions factors are based on Government published 2024 GHG conversion factors.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £million of turnover.

Management have taken and continue to take steps to improve the energy efficiency of the company and group such as through installation of solar panels.

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 auditor of the company 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 auditor of the company is aware of that information.

The directors are responsible for preparing the Annual Report 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 group and company, 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 UK 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 group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of E C Drummond (Agriculture) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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:

• 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.

As explained more fully in the directors' responsibilities statement, 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 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 directors are responsible for assessing 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 parent company or to cease operations, or have no realistic alternative but to do so.

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 objectives of our audit include: to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

• We obtained an understanding of the legal and regulatory frameworks applicable to the group, the parent company and the sector in which they operate. We determined that the following laws and regulations were most significant: Companies Act 2006, UK corporate tax laws, health and safety laws and food hygiene regulations.

• We obtained an understanding of how the group and parent company is complying with those legal and regulatory frameworks by making enquiries of management of the company. We corroborated our enquiries through our review of legal fees, associated papers and regulator correspondence, along with consideration of the results of our audit procedures for the group.

• We assessed the susceptibility of the group's and parent company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

  • Identifying and assessing the design-effectiveness of controls management has in place to prevent and detect fraud;

  • Understanding how those charged with governance considered and addressed the potential override of controls or other inappropriate influence over the financial reporting process;

  • Challenging assumptions and judgements made by management in its significant accounting estimates;

  • Identifying and testing journal entries, in particular any journal entries posted outside of the financial team; and

  • Assessing the extent of compliance with the relevant laws and regulations.

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.

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.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £1,176,563 (2023 - £507,800 loss).

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

E C Drummond (Agriculture) Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Homme, Hom Green, Ross on Wye, Herefordshire, England, HR9 7TF.

The group consists of E C Drummond (Agriculture) Ltd and all of its subsidiaries.

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. The principal accounting policies adopted are set out below.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company E C Drummond (Agriculture) Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 7 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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:

Freehold land and assets in the course of construction are not depreciated.

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 recognised in the profit and loss account.

The company has granted tenancies over certain residential and non-residential properties within the farming estate. These properties are integral to the estate and the trading operations undertaken on the estate. In these circumstances, the directors do not consider these properties are held either solely or primarily for their investment potential and, consequently, they have not been classified as investment property.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

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.

Biological assets not held for continuing use within the company are classed as current assets and are included within stocks and are stated at cost less impairment. Costs comprise of the purchase cost and any additional costs incurred through the growing cycle.

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.

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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, 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.

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.

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.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.

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 group after deducting all of its 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.

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.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 if, and only if, there is 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.

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.

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

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The directors do not believe that any significant judgements are made within the financial statements.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Certain materials and supplies used in the production process are consumed over multiple accounting periods. In accordance with FRS 102, these items are recognised within stock as they meet the definition of materials or supplies to be consumed in the production process. Given that their usage spans multiple periods, management applies judgement in estimating the proportion of these items consumed in each period, which requires an estimation of their useful consumption cycle.

Amounts recognised in the profit and loss account and amounts due in respect of contract farming arrangements are based on estimates of the expected results of the final harvest. These estimates are determined using market values and crop movements observed up to the balance sheet date. The actual harvest results may differ from these estimates due to variations in market prices, crop yields, and other factors.

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

Their aggregate remuneration comprised:

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

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

Freehold land and buildings with a carrying amount of £13,184,895 (2023 - £13,281,242) have been pledged to secure borrowings of the company.

Details of the company's subsidiaries at 31 December 2024 are as follows:

Details of associates at 31 December 2024 are as follows:

The long-term loans are secured by fixed charges over the freehold property and fixed plant and machinery.

Other borrowings

Group

A loan with a carrying amount of £nil (2023 - £20,705), denominated in sterling, with an interest rate of 5%, was repaid during the year. Two of the directors provided a personal guarantee in respect of this loan of up to £191,000.

Bank borrowings

Group

A bank loan with a carrying amount of £244,412 (2023 - £327,382), with an interest rate at 2.75% above the Bank of England base rate, is due for repayment on 31 July 2027 by way of monthly instalments. The bank loan is secured by a fixed and floating charge over the assets of a subsidiary and imposes a negative pledge which prohibits the group from creating any security interests over the property pledged as security. One of the directors has provided a personal guarantee in respect of this bank loan of up to £600,000. The bank loan is also subject to a guarantee given by the parent company.

Group and Company

A bank loan with a carrying amount of £1,112,990 (2023 - £1,293,319), with an interest rate of 3.53%, is due for repayment on 17 June 2030 by way of quarterly instalments. The bank loan is secured by a legal charge over the group and company's freehold property with a carrying value of £343,459 and the loan imposes a negative pledge which prohibits the group and company from creating any security interests over the property pledged as security.

A bank loan with a carrying amount of £1,908,544 (2023 - £1,937,303), with an interest rate of 3.56%, is due for final repayment on 24 October 2042 by way of monthly instalments. The bank loan is secured by a legal charge over the group and company's freehold property with a carrying value of £3,988,468 and the loan imposes a negative pledge which prohibits the group and company from creating any security interests over the property pledged as security.

A bank loan with a carrying amount of £1,863,824 (2023 - £1,959,196), with an interest rate of 2.51% above the Bank of England base rate, is due for repayment on 24 October 2042 by way of monthly instalments. The bank loan is secured by a legal charge over the group and company's freehold property with a carrying value of £3,988,468 and the loan imposes a negative pledge which prohibits the group and company from creating any security interests over the property pledged as security.

A bank loan with a carrying amount of £4,190,184 (2023 - £4,305,435), with an interest rate of 2.89%, is due for repayment on 4 September 2049 by way of quarterly instalments. The bank loan is secured by a legal charge over the group and company's freehold property with a carrying value of £5,140,524 and the loan imposes a negative pledge which prohibits the group and company from creating any security interests over the property pledged as security.

A bank loan with a carrying amount of £2,153,732 (2023 - £2,183,539), with an interest rate of 2.35% above the Bank of England base rate, is due for repayment on 4 September 2049 by way of quarterly instalments. The bank loan is secured by a legal charge over the group and company's freehold property with a carrying value of £5,140,524 and the loan imposes a negative pledge which prohibits the group and company from creating any security interests over the property pledged as security.

A bank loan with a carrying amount of £14,167 (2023 - £24,167), with an interest rate of 2.50%, is due for repayment on 19 May 2026 by way of monthly instalments.

A rolling credit facility with a carrying amount of £245,000 (2023 - £240,000) has an interest rate of 2.1% over the Bank of England base rate. Four of the directors have provided a personal guarantee in respect of this loan. The facility is subject to annual review with interest being settled on a monthly basis.

Bank overdraft

The bank overdraft is secured by fixed and floating charges over the assets of the group and on certain assets of the E C Drummond and Son partnership.

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

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

Deferred income is included in the financial statements as follows:

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

With the exception of the A Ordinary shares, all shares carry full and equal voting rights and participation in distribution rights (including on a winding up). The holders of the Ordinary and B-O Ordinary shares are entitled to a return of the amount paid up on them (including any premium) in priority to the A Ordinary shareholders. The A Ordinary shares are non-voting and the holders of such shares are only entitled to a return of the amount paid up on them (including any premium). The residue (if any) shall be divided among the holders of the Ordinary and B-O Ordinary shares. The directors have authority to declare dividends on one or more class of share to the exclusion of the other class or classes of shares. The shares are not redeemable.

This represents the nominal value of issued share capital that has been redeemed by the company.

During the year, the group charged an associate for services of £129,481 (2023 - £98,379). The group was charged by associates for services of £1,771 (2023 - £130). Dividends were received from associates of £30,000 (2023 - £nil). At the balance sheet date, the amount due from an associate was £24,750 (2023 - £37,576).

During the year, the group charged companies under common control for services of £1,628,958 (2023 - £923,248) and goods of £327,876 (2023 - £515,098). The group was charged by companies under common control for services of £135,517 (2023 - £88,174) and goods of £2,001,771 (2023 - £1,401,032). At the balance sheet date, the amount due from companies under common control was £1,208,526 (2023 - £2,574,500) and the amount due to companies under common control was £317,252 (2023 - £7,737)

During the year, the group charged partnerships under common control for services of £174,054 (2023 - £254,400) and goods of £20,140 (2023 - £25,585). The group was charged by partnerships under common control for services of £206,538 (2023 - £88,174), for goods of £57,141 (2023 - £69,711) and management charges of £150,000 (2023 - £550,000) At the balance sheet date, the amount due from partnerships under common control was £950,688(2023 - £514,803).

During the year dividends totalling £4,000 (2023 - £103,000) were paid to the directors. The amount due to directors at the balance sheet date was £115,000 (2023 - £111,000).

During the year, the group paid dividends to trusts under common control of £67,500 (2023 - 72,500) and was charged interest of £6,479. At the balance sheet date, the amount owed to trusts under common control was £136,340 (2023 - £72,500).

These amounts are unsecured, repayable on demand and no guarantees have been received or provided.

The ultimate controlling party is the Drummond family.

During the year, the directors identified certain errors in prior year financial statements, which have been adjusted as follows:

Group and company

Investment property

Properties previously classified as investment property did not meet the recognition criteria under FRS 102, as they were not held exclusively to earn rentals or for capital appreciation. These properties have been reclassified as freehold property, with prior revaluations and deferred tax adjustments reversed. The impact on reserves can be seen above.

Fixed assets

Errors were identified in the fixed asset register in prior years. The cost and accumulated depreciation of certain assets were understated due to misclassifications in the underlying records. The net book value of fixed assets was correctly stated, and there was no impact on previously reported profit, net book value, or reserves. To correct this, comparative figures have been adjusted as follows:

• Freehold property: cost decreased by £765,437 and accumulated depreciation decreased by £767,018

• Plant and machinery: cost decreased by £162,939 and accumulated depreciation decreased by £161,358

Dividends

Interim dividends declared in the prior year were not previously recognised in the financial statements. The comparative figures have been adjusted to recognise dividends of £175,500, with a corresponding increase in other creditors.

Group only

Stock

An error was identified in the prior year relating to the presentation of stock. Certain direct production costs had been included within prepayments rather than stock in addition to an over accrual of costs into stock. The error had no impact on previously reported profit or reserves. To correct this, comparative figures have been adjusted as follows:

• Stock increased by £864,130

• Prepayments decreased by £995,810

• Accruals decreased by £131,680

Fixed assets

Errors were identified in the fixed asset register in prior years. The cost and accumulated depreciation of certain assets were understated due to misclassifications in the underlying records. The net book value of fixed assets was correctly stated, and there was no impact on previously reported profit, net book value, or reserves. To correct this, comparative figures have been adjusted as follows:

• Freehold property: cost increased by £21,303 and accumulated depreciation increased by £21,303

• Plant and machinery: cost increased by £1,737,155 and accumulated depreciation increased by £1,737,155

All adjustments have been reflected retrospectively in accordance with FRS 102.