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

The principal activity of the company during the period was growing horticultural produce.

The company has continued to grow its turnover with the 2024 accounts reporting a 28% increase to £35.0m (2023: £27.3m). Effective cost management and operational efficiencies achieved in the year has enabled a significant improvement in financial performance, with a profit before tax of £3.93m (2023: £2.07m profit).

Operational risk

The growing of fruit is subject to the effect of weather and the availability of picking staff. Growing is conducted in controlled glass house and polytunnel environments in an attempt to mitigate these risks.

Credit risk

Over 70% of fruit sales are made via the marketing organisations of Driscoll's and Fruition or sold at market. Therefore, the credit risk is considered to be minimised.

Liquidity and cashflow risks

The company produces regular cash flow forecasts to ensure both short-term and long-term financing is fully appropriate to the objectives of the company.

The company has consistently met customer requirements, maintaining a strong alignment between its contracted UK production and market demand. Over the past year, the company has made ongoing investments in research and development focused on both crop varieties and advanced growing techniques.

Financial KPIs include sales, gross profit, operating expenses, cash flow and EBITDA.

Non-financial KPIs include service levels, market share and employee return rates.

The above financial KPIs were in line with the expectations of the directors, with further improvement expected in the future. Service levels, given the nature of the product, were considered to have remained at an appropriate level.

Under the Companies Act 2006 (CA 2006), directors have seven general duties to the company. One of these duties, commonly referred to as the ‘si72 duty’, is ‘to promote the success of the company’. Part I of that duty requires directors to do so ‘for the benefit of its members as a whole’, and in doing so, to have regard to the following six factors:

• the likely consequences of any decisions in the long term;

• the interests of the company’s employees;

• the need to foster the company’s business relationships with suppliers, customers and others;

• the impact of the company’s operations on the community and the environment;

• the reputation for a high standard of business conduct; and

• the need to act fairly as between members of the company.

Regular board meetings are held during which both financial and non-financial KPIs are reviewed. The directors use these to make informed business decisions, assess performance and identify future opportunities.

The company has established a robust framework for employee communication and consultation, encouraging staff to share suggestions and feedback on performance. Monthly management meetings involving administrative staff provide a forum for discussing current systems and exploring opportunities for improvement. During the harvest season, similar meetings are held with seasonal workers at their accommodation sites to address issues or changes. A full-time worker liaison officer facilitates relationships between management and staff. Regular appraisals are conducted, and a bonus scheme is in place to reward both overall business and departmental performance.

Key management holds regular meetings with both customers and key suppliers to maintain strong relationships and ensure that service expectations are being met on both sides.

The company has been working for some time to reduce its impact on the environment. A Biomass boiler was installed by the company in 2016, this is a renewable energy source. The company is also now heating a glass house using the country’s largest known river sourced heat pump system used for berry production, this is another renewable energy source which draws heat from the river Medway. The company is also improving biodiversity locally through Countryside Stewardship Schemes in addition to new tree planting and rewilding schemes.

The company places the highest importance on the quality of its produce, viewing it as a key factor in its growth since its founding in 1952. A core focus continues to be identifying new techniques to protect crops from pests and enhance fruit quality.

The directors foster strong relationships with shareholders and are committed to acting in a way that ensures fair and equal treatment for all.

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 10.

Ordinary dividends were paid amounting to £24,000. The directors do not recommend payment of a final dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

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

The company gives full consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion. Where existing employees become disabled, it is the company's policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim.

Under the Companies Act 2006 s.4 16(4), details are provided within the strategic report.

The directors and other key management personnel regularly meet with both customers and key suppliers to ensure that strong relationships can be maintained and that the required levels of service are being met on both sides.

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

In accordance with the company's articles, a resolution proposing that Chavereys Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

Clock House Farm monitors its carbon footprint using the ‘Hortiplanet’ monthly carbon reporting tool, specifically designed for horticulture. This tool estimates emissions by analysing ‘activity data’ and applying appropriate ‘emissions factors’. It has been independently reviewed to ensure alignment with the Greenhouse Gas Protocol and PAS2050.

Data for the tool is sourced from utility bills, invoices, and farm management records, ensuring a comprehensive and accurate assessment of emissions.

The Greenhouse Gas intensity of our operations for the year was 47.1t CO2e/£million of turnover.

Calculated as: (gas + transport + electricity emissions) / £ million of turnover.

The company is implementing digital metering across all incoming energy supplies. Recording data at 30 minute intervals allows the company to identify trends in usage and adjust usage accordingly.

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:

• so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

• the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor 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 International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

• properly select and apply accounting policies;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and

• make an assessment of the company's ability to continue as a going concern.

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.

We have audited the financial statements of Clock House Farm Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRS).

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 International Financial Reporting Standards; 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 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 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 company and its 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, 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.

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 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.

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 are 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).

The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management.

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

• We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: IFRSs, Companies Act 2006, UK corporate taxation laws, Health and Safety legislation and Food Standards.

• We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making enquiries of management of the company. We corroborated our enquiries through our review of papers provided to the audit team and consideration of the results of our audit procedures for the Company.

• We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the company 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 judgement made by management in its significant accounting estimates;

• Identifying and testing journals entries, in particular any journal entries posted with unusual account combinations and for unusual or large amounts;

• 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.

The notes on pages 15 to 37 form part of these financial statements.

The notes on pages 15 to 37 form part of these financial statements.

The notes on pages 15 to 37 form part of these financial statements.

The notes on pages 15 to 37 form part of these financial statements.

Clock House Farm Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Farm Office Clock House Farm, Heath Road, Coxheath, Maidstone, Kent, England, ME17 4PG. The company's principal activities and nature of its operations are disclosed in the directors' report.

The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is valued at fair value of the consideration received or receivable, excluding discounts, rebates and value added tax. The company recognizes revenue when it transfers control of a product to a customer.

The company sells soft fruit and top fruit both to wholesalers through producer organisation, and directly to customers through the market and other medium.

For sales of fruits to wholesalers through producer organisation and direct customers, revenue is recognised when control of the goods has transferred, being when the goods have been delivered to the wholesaler or direct customer. Following delivery, the wholesaler or direct customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility when onselling the goods and bears the risks of obsolescence and loss in relation to the goods. A receivable is recognised by the company when the goods are delivered to the wholesaler as this represents the point in time at which the right to consideration becomes unconditional, as only the passage of time is required before payment is due.

For sales of fruits to market customers, revenue is recognised when control of the goods has transferred, being at the point the customer purchases the goods at the market. Payment of the transaction price is due immediately at the point the customer purchases the fruits

Property, plant and equipment 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:

The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

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 income statement.

An associate is an entity over which the company has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

The results of associates are incorporated in these financial statements using the equity method of accounting, where the company’s share of post- acquisition profits and losses and other comprehensive income is recognised in the statement of comprehensive income (except for losses in excess of the company’s investment in the associate unless there is an obligation to make good those losses).

At each reporting end date, the company reviews the carrying amounts of its property, plant and equipment 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.

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 and to the extent that the impairment loss is greater than the related revaluation surplus, the excess impairment loss is recognised in profit or loss.

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.

Inventories are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow moving items. Cost includes all direct costs, and an appropriate proportion of fixed and variable overheads incurred in bringing the inventories to their present location and condition.

Biological assets are measured on initial recognition and subsequent reporting dates at fair value less estimated costs to sell, unless fair value cannot be reliably measured. When fair value cannot be reliably be measured the biological assets are measured at cost less accumulated depreciation and impairment losses.

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice or not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company’s cash management.

Financial assets and financial liabilities are recognised in the company’s statement of financial statement when the company becomes a party to the contractual provision of the instrument.

Financial assets and financial liabilities are initially measured of fair value, except for trade receivables that do not have significant financing component which are measured at transaction price.

All recognised financial assets are measured subsequently in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

Classification of financial assets

Debt instruments that meet the following conditions are measured subsequently at amortised cost:

• the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

By default, all other financial assets are measured subsequently at fair value through profit or loss (FVTPL).

The company's financial assets measured at amortised cost comprise of trade receivables, amounts owed by related parties, and cash and cash equivalents in the statement of financial position.

The company recognises a loss allowance for expected credit loss on trade receivable and amount receivable from related parties. The amount of expected credit losses is updated at each reporting date to reflect changes in credit risk since

The company always recognises lifetime expected credit losses (ECL) for trade receivables. The expected credit losses on trade receivables are estimated using the provision matrix based on the company’s historical credit loss experience, adjusted for factors that are specific to the debtors, , general economic conditions and an assessment of both the current as well as the forecast direction of conditions at the reporting date, including time value of money where appropriate.

For trade receivables, which are reported net, such provisions are recorded in a separate provision account with the loss being recognised in profit or loss. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

For all other financial instruments, the company recognises lifetime ECL when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the company measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.

For those that are determined to be credit impaired, lifetime expected credit losses along with interest income on a net basis are recognised.

From time to time, the company elects to renegotiate the terms of trade receivables due from customers with which it has previously had a good trading history. Such renegotiations will lead to changes in the timing of payments rather than changes to the amounts owed and, in consequence, the new expected cash flows are discounted at the original effective interest rate and any resulting difference to the carrying value is recognised in the consolidated statement of comprehensive income (operating profit).

Classification as debt or equity

Debt and equity instruments are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the company are recognised at the proceeds received, net of direct issue costs.

The company's ordinary shares are classified as equity instruments.

All financial liabilities are measured subsequently at amortised cost using the effective interest method or at FVTPL.

The tax expense represents the sum of current and deferred income tax expense.

The current tax payable is based on taxable profit for the year. The charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date. The differences between taxable profit and profit reported in the financial statements are disclosed in note 13.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 based on tax laws and rates that have been enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets against tax liabilities and when they relate to income taxes levied by the same tax authority and the company intends to settle its current tax assets and liabilities on a net basis.

Current tax and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly to equity, in which case the current and deferred tax are also recognised in other comprehensive income or directly to equity respectively

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 inventories or non-current 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.

The company operates a defined contribution scheme for the benefit of its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid, the company has no further payment obligations.

Contributions are recognised as an expense in the statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

Company as a lessee

The company assesses whether a contract is, or contains, a lease, at inception of the contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a property, plant and equipment is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement date less any lease incentive received and any initial direct costs.

Whenever the company incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the right-of-use asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The company applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in the ‘Property, Plant and Equipment’ policy.

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate.

The incremental borrowing rate depends on the term, currency and start date of the lease and is determined based on a series of inputs including: the risk-free rate based on government bond rates; a country-specific risk adjustment; a credit risk adjustment based on bond yields; and an entity-specific adjustment when the risk profile of the entity that enters into the lease is different to that of the company and the lease does not benefit from a guarantee from the company.

Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is subsequently measured at amortised cost using the effective interest method.

The company remeasures the lease liability whenever, a lease contract is modified and the lease modification is not accounted for as a separate asset or there is a change in: the lease term or significant event or circumstances resulting in a change in the assessment of exercise of a purchase option; or future lease payments arising from a change in an index or rate or the company's estimate of the amount expected to be payable under a residual value guarantee.

When the lease liability is remeasured a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

The company as lessor

Leases for which the company is a lessor are classified as finance or operating leases. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.

When the company is an intermediate lessor, it accounts for the head lease and the sub-lease as two separate contracts. The sub-lease is classified as a finance or operating lease by reference to the right-of-use asset arising from the head lease.

Finance sublease

Where substantially all the risks and rewards incidental to ownership of the right-of-use asset are transferred to the sublessee, the sublease is classified as a finance lease. In this case, the right-of-use asset relating to the head lease is derecognized to the extent transferred, and a net investment in the sublease is recognized. The head lease liability continues to be recognized and measured in accordance with IFRS 16.

Operating sublease

Where the sublease does not transfer substantially all the risks and rewards incidental to ownership of the right-of-use asset, the sublease is classified as an operating lease. The right-of-use asset relating to the head lease continues to be recognized, and lease income from the sublease is recognized on a straight-line basis over the term of the sublease (or on another systematic basis if that basis is more representative of the pattern of benefit).

The lease liability under the head lease and the lease receivable under the sublease are not offset in the statement of financial position.

Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company’s net investment outstanding in respect of the leases.

Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Grants are accounted for under the accruals model. Grants relating to expenditure on property, plant and equipment are credited to the statement of comprehensive income at the same rate as the depreciation on the assets to which the grant relates. The deferral element of grants is included in liabilities as deferred income.

Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

Agricultural support schemes

Payments received under agricultural support schemes are recognised as income when the business has met all criteria which entitle it to the payments.

Amounts received under the Basic Payment Scheme are recognised on 31 December in the year of claim. No provision has been made for penalties arising from the failure to comply with 'cross compliance' conditions, as defined by the RPA, except for where notification has been received.

Dividends

Dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

In the current year, the Company has adopted all of the new and revised standards and interpretations issued by the International Accounting Standards Board (the “IASB”) and the International Financial Reporting Interpretations Committee (“IFRIC”) of the IASB that are relevant to its operations and effective for accounting periods beginning on 1 January 2024.

New and revised Standards that are effective but with no material effect on the financial statements

The following relevant revised standards have been applied in the financial statements. Their application has not had any

significant impact on the amounts reported for current and prior periods but may affect the accounting for future transactions or arrangements.

• IAS 1     Presentation of Financial Statements (Amendment – Classification of Liabilities as Current or         Non- current)

• IAS 1     Presentation of Financial Statements (Amendment – Non-current Liabilities with Covenants)

• IFRS 16    Leases (Amendment – Liability in a Sale and Leaseback)

New and revised Standards in issue but not yet effective

At the date of authorisation of these financial statements, the following relevant new and revised standards were in issue but effective on annual periods beginning on or after the respective dates as indicated:

• IAS 21     The effects of changes in Foreign Exchange Rates – Lack of exchangeability (effective 1 January         2025)

• IFRS 7     Financial Instruments: Disclosures – Amendments regarding classification and measurement of         financial instruments and power purchasing arrangements (effective 1January 2026)

• IFRS 9     Financial Instruments – Amendments regarding classification and measurement of financial             instruments and power purchasing arrangements (effective 1January 2026)

• IFRS 18     Presentation and Disclosures in Financial Statements (effective 1 January 2027)

The directors anticipate that these Standards and Interpretations will be applied on their effective dates in future periods. The directors have not yet had an opportunity to consider the potential impact of the application of these amendments

The preparation of the financial statements requires management to make judgments, estimates and assumptions that have significant impact on the recognised and reported amounts in the financial statements

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 arerecognised in the period in which the estimate is revised if the revision affects only that period, or in the period of therevision and future periods if the revision affects both current and future periods.

The areas where judgments, assumptions and estimates are most significant to the company, and which may affect the financial statements if changed are described below:

Property, plant and equipment are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of assets and residual values are assessed annually and may vary depending on a number of factors. In reassessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Consideration is also given to the extent of current profits and losses on the disposal of similar assets.

For leases where the company cannot readily determine the implicit rate of interest, it uses its incremental borrowing rate (IBR) to measure the lease liabilities. The IBR is the rate of interest that the company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-asset in a similar economic environment. The IBR therefore reflects what the company ‘would have to pay’, which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease.

The company is exposed through its operations to the following financial risks:

• Credit risk

• Interest rate risk

• Liquidity risk

In common with all other businesses, the company is exposed to risks that arise from its use of financial instruments. This note describes the company's objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.

There have been no substantive changes in the Company's exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.

(i) Principal financial instruments

The principal financial instruments used by the Company, from which financial instrument risk arises, are as follows:

• Trade receivables

• Cash and cash equivalents

• Trade and other payables

• Bank overdrafts

• Fixed rate bank loans

Financial instruments by category

Financial assets - measured at amortised cost

No financial assets are held at fair value through profit and loss or fair value through other comprehensive income.

Financial liabilities - measured at amortised cost

No financial liabilities are held at fair value through profit and loss or fair value through other comprehensive income.

General objectives, policies and processes

The Board has overall responsibility for the determination of the company's risk management objectives and policies and, whilst retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective implementation of the objectives and policies to the Company’s finance function. The Board receives regular reports from the Financial Controller through which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets.

The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Company’s competitiveness and flexibility. Further details regarding these policies are set out below:

Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is mainly exposed to credit risk from credit sales. It is company policy to assess the credit risk of new customers before entering contracts. Such credit ratings are taken into account by local business practices.

The Board has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The company’s review includes external ratings, when appropriate. Purchase limits are established for each customer, which represents the maximum open amount without requiring approval from the Board.

Credit risk in relation to trade and other receivable is considered immaterial due to the nature of the counterparties and the short-term settlement profile of the receivables. Accordingly, no further disclosures have been provided.

Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. However, as these balances are maintained with reputable banking institutions, the credit risk at the reporting date is considered to be low.

Interest rate risk management

The company is exposed to interest rate risk because it borrows and lend funds at both fixed and floating interest rates. The risk is managed by the company by maintaining an appropriate mix between fixed and floating rate borrowings.

Liquidity risk

Liquidity risk arises from the company’s management of working capital and the finance charges and principal repayments on its debt instruments. It is the risk that the Company will encounter difficulty in meeting its financial obligations as they fall due. The company’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. To achieve this aim, it seeks to maintain cash balances (or agreed facilities) to meet expected requirements for a period of at least 45 days.

The Board receives rolling 12-month cash flow projections on a regular basis as well as information regarding cash balances. At the end of the financial year, these projections indicated that the company expected to have sufficient liquid resources to meet its obligations under all reasonably expected circumstances. Budgets are set and agreed by the board in advance, enabling the company’s cash requirements to be anticipated.

An analysis of the company's revenue is as follows:

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

Their aggregate remuneration comprised:

The charge for the year can be reconciled to the profit per the income statement as follows:

Property, plant and equipment includes right-of-use assets, as follows:

Bank borrowings are secured on the company's freehold land and buildings.

The associate is accounted for using the equity method as set out in the company’s accounting policy in note 1.2

The following entities have been included in the company financial statements using the equity method

1. The primary business of Linton Growing Limited is the propagation of fruit trees and soft fruit plants.

Details of security provided:

The bank overdraft is secured by a mortgage debenture incorporating a fixed and floating charge over all current and future assets of the company.

Bank loans are secured by way of fixed and floating charges over all current and future assets of the company.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

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

Financial instruments issued by the company are classified as equity only to the extent that they do not meet the definition of a financial liability or financial asset.

The company's ordinary shares are classified as equity instruments.

The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures.

During the year the company entered into the following transactions with related parties;

The company has not made any allowance for bad or doubtful debts in respect of related party debtors nor has any guarantee been given or received during the current or prior year regarding related party transactions.

Five of the directors own freehold land and buildings which the company occupies and on which rent of £40,488 was paid for the year (2023: £37,500).

During the year, the company undertook transactions Linton Growing Ltd with an associate. The company made sales to Linton Growing Ltd of £2,465,565 and purchases of £3,115,816. At the year end, £400,157(2023: £1,040,991) was owed by the company to Linton Growing Ltd and is included within amounts owed by related parties.

Chitcombe Farm Ltd is a company controlled by R K Pascall and the Executors of C A Pascall. At the year end, £390,467 was owed to Chitcombe Farm Ltd (2023: £432,901). In the year the net value of management fees payable by Clock House Farm Ltd to Chitcombe Farm Ltd was £75,000 and net rent of £67,500 was payable in relation to the year.

Bonfleur Equestrian Ltd is a company over which one of the directors has significant control. At the year end the balance owed by Bonfleur Equestrian Ltd was £58,447 (2023: £48,423). In the year, the net value of land rent due from Bonfleur Equestrian Ltd was £6,000 (2023: £6,000).

CHF Sustainability Limited is a company controlled by R K Pascall and O C Pascall. During the years cost were charged to CHF Sustainability Ltd of £503,639. At the year end, £5,829 was owed to the company by CHF Sustainability Limited (2023: £1,144,165).

There is no ultimate controlling party.