REGISTERED NUMBER: 09045535 (England and Wales)

FARRALLS TRANSPORT (PROPERTIES) LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Consolidated Income Statement

10

Consolidated Other Comprehensive Income

11

Consolidated Balance Sheet

12

Company Balance Sheet

14

Consolidated Statement of Changes in Equity

16

Company Statement of Changes in Equity

17

Consolidated Cash Flow Statement

18

Notes to the Consolidated Cash Flow Statement

19

Notes to the Consolidated Financial Statements

21

DIRECTORS:

M C Farrall

Mrs E A Farrall

M Farrall

Mrs K A Farrall

REGISTERED OFFICE:

Unit 2

Second Avenue

Deeside Industrial Park

Deeside

Clwyd

CH5 2NX

REGISTERED NUMBER:

09045535 (England and Wales)

AUDITORS:

Murray Smith LLP

Chartered Accountants

Statutory Auditors

Darland House

44 Winnington Hill

Northwich

Cheshire

CW8 1AU

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

Principal Activity

During the period under review, the principal activity of the Group was the provision of contract distribution, general haulage, and pallet network operations across a range of industries. The Group's customer base primarily comprises industrial, retail, and manufacturing businesses serving both UK and international markets.

Business review

We aim to provide a balanced and comprehensive review of the Group's performance during the year and its financial position at year-end. This review reflects the size and complexity of the business and is presented in the context of the key risks and uncertainties we face.

The results for the year, along with the Group's financial position, are set out in the accompanying financial statements. We consider turnover and profit margin to be our key financial performance indicators, as they best reflect the Group's overall financial performance and strength.

The Group increased its turnover to £16,082,725 in 2024, up from £14,478,225 in 2023. This growth was primarily driven by the addition of a Pallet Network depot, which has had a positive impact on the business and contributed to a 2.56% increase in gross profit. The Group reported an operating profit of £520,880 for 2024 compared to an operating profit of £181,212 in the prior year, which represents a significant improvement in trading results.

2024 remained a challenging year for the Group, as it did for many within the logistics and distribution sector. Despite an overall increase in turnover compared to the previous year, sales volumes were inconsistent on a day-to-day and month-to-month basis. This level of unpredictability made resource planning and operational scheduling more difficult, ultimately impacting our efficiency and utilisation levels across the business.

The ongoing impact of the war in Ukraine continued to contribute to economic uncertainty and inflationary pressures throughout 2024. As a result, the Group, along with the wider industry, remained in a reactive position, needing to adapt quickly to evolving market conditions.

Although fuel prices became more stable during the second half of the year, costs remained elevated, particularly in Q1 and Q2. Beyond fuel, the conflict also contributed to widespread cost increases across multiple areas of the business, including vehicle parts, tyres, insurance, utilities, and general supply chain inputs. These sustained pressures have had a noticeable impact on our cost base, further challenging operational efficiency and profitability. this combined with the need to maintain high service standards for our customers, put further strain on our margins and operational performance.

The Group has taken steps to address these challenges by investing in improved route planning, strengthening customer communication, and implementing cost-control measures where possible. We continue to monitor market conditions closely and remain focused on increasing operational resilience and efficiency to support long-term profitability.

During 2024, the Group maintained its focus on building stability and strengthening the foundations of the business. We continued to invest in our fleet and expanded our operational footprint by adding new sites. While these initiatives have contributed to increased costs in the short term, they are expected to deliver improved efficiency and capacity in the years ahead.

A key theme for the year was sustainability-both in terms of our environmental impact and the long-term viability of our operations. We also placed significant emphasis on enhancing the experience and support we provide to both our customers and our staff, with improvements made in service delivery, working conditions, and internal processes.

Principal risks and uncertainties

The Group is subject to the same risks and uncertainties that affect the wider transport and storage industry. These include economic volatility, fuel price fluctuations, labour availability, regulatory changes, and supply chain disruptions.

The directors remain confident that the business is well-positioned to navigate these challenges, supported by a highly motivated and capable workforce. The Group benefits from strong leadership, effective internal processes, and a skilled operational team. Together, these elements ensure that the business is not only able to manage industry-wide pressures but is also well-placed to exceed performance expectations.

Financial Risk Management and Objectives

The Group uses various financial instruments in order to raise finance for it's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below.

The main risks arising from the Group's financial instruments are market risk, cash flow interest rate risk, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks. These policies remain unchanged from previous years.

In order to further manage credit risk, the directors set specific credit limits on clients based on criteria including payment history, credit referencing and market intelligence. Credit limits are reviewed regularly.

The Group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by the use of overdraft facilities.

Based on the circumstances presented above, the directors have a realistic expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors are confident we are commercially and financially in a very strong position to continue our development of the business and our strategic plans. Accordingly, the directors continue to adopt the going concern basis of accounting in preparing these financial statements.

Financial key performance indicators

The Group uses a number of key performance indicators in assessing and driving performance. The key financial and non-financial indicators used by the Group are sales, spend per head, gross margin, wages as a percentage of sales and customer feedback.

2024

2023

Change

£

£

£

Turnover

16,082,725

14,478,225

1,604,500

Gross profit

2,421,663

1,808,534

613,129

Wages as % of sales

24.96%

27.16%

(2.2%

)

Future developments

Following a year of growth in 2024, the team views 2025 as a year of consolidation, with a primary focus on achieving sustainable and stable results. As in the previous year, we remain committed to strengthening the Group's financial position and maintaining growth within a sustainable and scalable structure.

Our fleet renewal programme will continue in 2025, adopting a more structured and disciplined approach than in previous years. This will be aligned with turnover levels and managed carefully to ensure ongoing cost efficiencies. By investing in new and enhanced equipment, we aim to improve operational efficiency while sustainably increasing fleet capacity to support expansion of our customer base.

We will also remain focused on our core values as a family business, ensuring they are clearly promoted to both our workforce and our customers. These values form the foundation of a balanced and resilient business model - one that supports long-term financial growth for everyone connected to the Group.

A key ongoing priority for 2025 is our transition towards Net Zero. Building on the significant progress made in 2024, we will continue to invest in electric vehicles and the supporting charging infrastructure. We are actively working alongside our customers and suppliers to ensure our environmental ambitions are achieved, and we remain fully committed to playing our part in creating a more sustainable future for the transport and logistics sector.

ON BEHALF OF THE BOARD:

Mrs K A Farrall - Director

26 September 2025

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

DIVIDENDS

Dividends of £10.24 per share were paid during the year.

DIRECTORS

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

M C Farrall

Mrs E A Farrall

M Farrall

Mrs K A Farrall

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

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

-	select suitable accounting policies and then apply them consistently;

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

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he 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 group's auditors are aware of that information.

AUDITORS

The auditors, Murray Smith LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs K A Farrall - Director

26 September 2025

Opinion

We have audited the financial statements of Farralls Transport (Properties) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

The audit procedures designed to identify irregularities included:

- enquiry of management and those charged with governance around actual and potential litigation and claims;

- enquiry of company staff with responsibilities for tax and compliance matters to identify any instances of

non compliance with laws and regulations;

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

applicable laws and regulations;

- auditing the risk of management override of controls, including through testing journal entries and other

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

normal course of business.

There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, intentional misrepresentations or through collusion.

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.

Steven Williams (Senior Statutory Auditor)

for and on behalf of Murray Smith LLP

Chartered Accountants

Statutory Auditors

Darland House

44 Winnington Hill

Northwich

Cheshire

CW8 1AU

27 September 2025

TURNOVER

4

16,082,725

14,478,225

Cost of sales

13,661,062

12,669,691

GROSS PROFIT

2,421,663

1,808,534

Administrative expenses

2,712,190

2,425,293

(290,527

)

(616,759

)

Other operating income

5

811,407

797,971

OPERATING PROFIT

7

520,880

181,212

Income from other participating interests

2,169

133,641

523,049

314,853

Interest payable and similar expenses

9

416,681

357,635

PROFIT/(LOSS) BEFORE TAXATION

106,368

(42,782

)

Tax on profit/(loss)

10

56,059

(17,408

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

50,309

(25,374

)

Profit/(loss) attributable to:

Owners of the parent

50,309

(25,374

)

PROFIT/(LOSS) FOR THE YEAR

50,309

(25,374

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

50,309

(25,374

)

Note

Prior year adjustment

13

(497,508

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

(447,199

)

Total comprehensive income attributable to:

Owners of the parent

(447,199

)

(25,374

)

FIXED ASSETS

Tangible assets

14

8,419,003

8,643,741

Investments

15

Interest in joint venture

135,811

133,642

Investment property

16

5,529,269

5,529,269

14,084,083

14,306,652

CURRENT ASSETS

Stocks

17

35,437

43,951

Debtors

18

2,611,707

2,446,293

Cash at bank and in hand

12,825

78,349

2,659,969

2,568,593

CREDITORS

Amounts falling due within one year

19

5,803,186

4,965,289

NET CURRENT LIABILITIES

(3,143,217

)

(2,396,696

)

TOTAL ASSETS LESS CURRENT LIABILITIES

10,940,866

11,909,956

CREDITORS

Amounts falling due after more than one year

20

(4,691,949

)

(5,585,347

)

PROVISIONS FOR LIABILITIES

24

(1,468,872

)

(1,412,813

)

NET ASSETS

4,780,045

4,911,796

CAPITAL AND RESERVES

Called up share capital

25

17,777

17,777

Revaluation reserve

26

1,481,118

1,481,118

Capital redemption reserve

26

2,223

2,223

Profit and loss account

26

3,278,927

3,410,678

SHAREHOLDERS' FUNDS

4,780,045

4,911,796

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

M Farrall - Director

Mrs K A Farrall - Director

FIXED ASSETS

Tangible assets

14

-

-

Investments

15

20,000

20,000

Investment property

16

7,903,268

7,903,268

7,923,268

7,923,268

CURRENT ASSETS

Debtors

18

308,875

115,635

Cash at bank

661

16,440

309,536

132,075

CREDITORS

Amounts falling due within one year

19

1,567,051

1,169,074

NET CURRENT LIABILITIES

(1,257,515

)

(1,036,999

)

TOTAL ASSETS LESS CURRENT LIABILITIES

6,665,753

6,886,269

CREDITORS

Amounts falling due after more than one year

20

(2,559,203

)

(2,865,368

)

PROVISIONS FOR LIABILITIES

24

(736,195

)

(736,140

)

NET ASSETS

3,370,355

3,284,761

CAPITAL AND RESERVES

Called up share capital

25

17,777

17,777

Revaluation reserve

26

2,891,920

2,891,920

Capital redemption reserve

26

2,223

2,223

Profit and loss account

26

458,435

372,841

SHAREHOLDERS' FUNDS

3,370,355

3,284,761

Company's profit for the financial year

267,654

536,083

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

M Farrall - Director

Mrs K A Farrall - Director

Called up

Profit

Capital

share

and loss

Revaluation

redemption

Total

capital

account

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

20,000

4,126,022

1,427,868

-

5,573,890

Changes in equity

Purchase of own shares

-

(533,520

)

-

2,223

(531,297

)

Shares redeemed during year

(2,223

)

-

-

-

(2,223

)

Transfer to revaluation reserve

-

-

53,250

-

53,250

Transfer from profit and loss account

-

(53,250

)

-

-

(53,250

)

Dividends

-

(103,200

)

-

-

(103,200

)

Total comprehensive income

-

472,134

-

-

472,134

Balance at 31 December 2023

17,777

3,908,186

1,481,118

2,223

5,409,304

Prior year adjustment

-

(497,508

)

-

-

(497,508

)

As restated

17,777

3,410,678

1,481,118

2,223

4,911,796

Changes in equity

Dividends

-

(182,060

)

-

-

(182,060

)

Total comprehensive income

-

50,309

-

-

50,309

Balance at 31 December 2024

17,777

3,278,927

1,481,118

2,223

4,780,045

Called up

Profit

Capital

share

and loss

Revaluation

redemption

Total

capital

account

reserve

reserve

equity

£

£

£

£

£

Balance at 1 January 2023

20,000

473,478

2,891,920

-

3,385,398

Changes in equity

Purchase of own shares

-

(533,520

)

-

2,223

(531,297

)

Shares redeemed during year

(2,223

)

-

-

-

(2,223

)

Dividends

-

(103,200

)

-

-

(103,200

)

Total comprehensive income

-

1,033,591

-

-

1,033,591

Balance at 31 December 2023

17,777

870,349

2,891,920

2,223

3,782,269

Prior year adjustment

-

(497,508

)

-

-

(497,508

)

As restated

17,777

372,841

2,891,920

2,223

3,284,761

Changes in equity

Dividends

-

(182,060

)

-

-

(182,060

)

Total comprehensive income

-

267,654

-

-

267,654

Balance at 31 December 2024

17,777

458,435

2,891,920

2,223

3,370,355

Cash flows from operating activities

Cash generated from operations

1

1,318,402

2,441,792

Interest paid

(242,098

)

(220,102

)

Interest element of hire purchase payments paid

(174,583

)

(137,533

)

Tax paid

(14,291

)

-

Taxation refund

76,630

-

Net cash from operating activities

964,060

2,084,157

Cash flows from investing activities

Purchase of tangible fixed assets

(221,167

)

(693,774

)

Sale of tangible fixed assets

74,083

4,000

Net cash from investing activities

(147,084

)

(689,774

)

Cash flows from financing activities

New loans in year

-

533,000

Loan repayments in year

(272,178

)

(206,936

)

Capital repayments in year

(1,124,230

)

(1,130,209

)

Share buyback

-

(533,520

)

(Decrease)/increase in invoice financing

163,525

(156,937

)

Equity dividends paid

(182,060

)

(103,200

)

Net cash from financing activities

(1,414,943

)

(1,597,802

)

Decrease in cash and cash equivalents

(597,967

)

(203,419

)

Cash and cash equivalents at beginning of year

2

78,349

281,768

Cash and cash equivalents at end of year

2

(519,618

)

78,349