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

2024 experienced unseasonable weather throughout causing difficulties in production. Light levels and temperatures were very low for the year overall affecting yields, estimate accuracy and labour planning. 2024 was a slow start to harvesting. This led to a national shortage in the early months of the season and the production of a glut of fruit in August which is traditionally a difficult month for sales anyway. This resulted in a large tonnage of fruit being disposed of during August. As a farm we worked hard to control our costs and managed to keep our expenses and payroll in line with sales.

The company continues to work closely with Driscoll’s, producing only their varieties in the belief this will lead to a strong route to market in the future. They strive to consistently delight consumers and customers, in line with Driscoll’s mission statement. The company plans to focus on varieties that support achieving this going forward, with Driscoll’s varieties being their preferred varieties at this time.

Strawberries

2024 was an uncommonly late start to harvesting for strawberries, due to the difficulties in production from the intemperate weather experienced in the spring, early summer months. 2024 continued to be a very grey year, with very low sunlight hours achieved throughout the whole season affecting plant yields and quality greatly. Retailers continue to inundate the market with imports creating an oversupply, blocking opportunities for UK supply. To counteract this export sales opportunities were maximised.

Only Driscoll’s varieties were produced in 2024 as the company aligns itself with them for future supply. Plant densities were kept low for 2024, allowing the company to focus on improving yields per plant, rather than per hectare. This increased first class production, reduced waste, pests, and disease and aided the vision for sustainability.

Raspberries

The varieties grown in 2024 gave the farm access to increased premium sales allowing us to achieve a stronger return. The varieties yielded well, not struggling with the inclement weather as much as other berries, giving strong, flavourful berries that continued to allow a route to the premium raspberry market. August sales struggled with a glut forming from the late harvest coupled with imports into the UK supply creating an oversupply that meant removing produce.

Cherries

As the cherry orchards continue to mature 2024 saw the largest harvest to date. The inclement growing conditions of 2024 were difficult, affecting size and quality. Premium sales were difficult due to a key retailer no longer taking British cherries that had been a particular market for us in previous years.

Blackberries

The on-farm trial (OFT) of Henrietta and Clara Blackberries in 2024 was a great success so the decision to introduce Blackberries as a 4th product to the company’s product portfolio for 2025 was taken. A bespoke hybrid tunnel growing system was constructed in 2024 autumn for blackberry production. They will give improved fruit quality and yield, they will also harvest the tunnel roof rainwater and have an automatic climatic controlled roof and door ventilation system with a solar powered rig system to support it. They will support the company’s sustainable future vision and reduce labour costs.

Labour

Payroll costs continue to be one of the company's largest single costs. Procedures and processes introduced to manage recruitment and labour planning continue to effectively control costs.

During 2024 the maximum number of seasonal staff at any one time was 298. Of these 52% were EUSS returnee workers, a further 36% were returnees from the seasonal worker visa scheme. This would have been much higher except the introduction of a 2nd labour provider ‘Ethero’ in March 2024 caused disruption to our seasonal worker visa returnee supply. Unfortunately, their license was suspended in April 2024 and then revoked in August 2024. This caused significant recruitment issues and contributed to the drop in returnee rates for 2024 that had been expected to be 96%. The requirement to pay a minimum of 32 hours pay per week to workers caused some difficulty early on as the harvest start was so delayed.

The company has a strong worker welfare team that is demonstrated by the percentage of returnee workers year on year. The Managing Director continues to be actively involved with the NFU as a Horticultural and Advisory Member of Staffordshire to lobby MP’s in ensuring issues such as this and poor grower returns are lobbied to DEFRA and the wider government.

Driscoll’s market share of the overall UK Berry market did not grow as had been expected in 2024 and uncertainty about their place in the UK supply chain was a concern. At the latter part of the 2024 season Driscoll’s gained traction with key retailers recognising their brand as a viable competitor in the market. By growing solely Driscoll’s berry varieties the company has a more expensive route to market than other producers within the industry. The company believes that the Driscoll’s brand of quality and taste will win in the future

Growers’ returns continue to be unsustainable inhibiting the investment required for the future. The current conflicts in Ukraine/Russia and Israel/Palestine continues to give great volatility to prices and significant delays to deliveries for the supply of many materials and equipment used by the company.

The directors engage with British Berry Growers (BBG) to secure the long-term success of the British berry industry and to identify and tackle the industry’s key risks to ensure its long-term viability and the managing director sits on the Berry Gardens Growers (BGG) Board allowing him to be involved in key decisions for the future of the co-operative.

The company's key financial and other performance indicators during the year were sales, net profit after tax and dividends paid.

Turnover has increased during the period by 2% (2023: increased by 2%).

A profit before tax of £635,523 was reported for the period (2023: £1,171,108).

On behalf of the board

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Littywood Farm Limited is a private company limited by shares incorporated in England and Wales. The registered office is Farm Office, Littywood Farm, Bradley, Stafford, Staffordshire, ST18 9DW.

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, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

Whilst the company has significant debt, they continue to receive the support of the bank and the family. At present cashflow forecasts indicate that going concern can be maintained in the short to medium term.

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.

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.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

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:

Included in land and buildings freehold is land that is not depreciated. The directors consider that the land is maintained in such a state of repair that the residual value is at least equal to the net book value. As a result the corresponding depreciation would not be material and, therefore, is not charged to the profit and loss account.

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

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

At each reporting period end date, the company 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.

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

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

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

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

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

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

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

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

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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax 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 costs of short-term employee benefits are recognised as a liability and an expense.

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.

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.

Grants received relate to entitlements on land held.

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

In the application of the company’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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

The investment property values are based upon valuations carried out by Fisher German Chartered Surveyors who are independent to the company. These valuations are conducted using market data for the types of property in question.

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

During the year the company employed temporary labour for harvesting stock. Staff numbers during the growing season were 179 (2024: 174) and peaked at 310 (2024: 317) in July.

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

The fair value of the investment property has been arrived at on the basis of a valuation carried out on 20 December 2023 by Fisher German Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. Property values are not considered to have materially changed between 31 December 2023 and 31 December 2024.

The bank loan and overdraft is secured by a debenture over the total assets of the company and a series of 6 legal charges.

The loan is secured and interest is charged on the loan at commercial rates. Repayments are made on an annual basis.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Voting rights

All shares rank equally for voting purposes. On a show of hands each member has one vote and on a poll each member has one vote per share held.

Dividend rights

Dividends may be paid to the holders of one or more classes of shares to the exclusion of the others or to all classes of shares, in each case at the same or differing rates, as determined by ordinary resolution or resolution of the directors.

Rights to capital

Each share ranks equally for any distribution made on a winding up.

Rights of redemption

No shares are redeemable.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

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

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

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

At the time of approving the accounts discussions are at an advanced stage regarding the potential buyback of shares from one of its directors.

Included in other creditors are interest free loans from the directors totalling £99,853 (2023: £111,977).

Included in other debtors are loans to the directors totalling £253,235 (2023: £140,273).

During the year the company paid rent of £14,650 (2023: £14,650) to the directors' SIPP for land used by the company.

During the year the company received interest of £4,315 from directors on loans outstanding from the company (2023: £2,815).