Introduction

Your board of directors (Board) have pleasure in presenting the financial statements for the year to 31 March 2025.

The aim of Hopes continues to be to provide first class livestock auctioneering, land agency and other complementary services to the agricultural community and other customers, in a manner that protects and grows shareholders value.

The Board recognise that the industry we work in is extremely competitive and ever evolving with various pressures including economic, political and legislative to name just a few that impact both our business and that of our customers. With this in mind I am delighted to present these financial statements for the year ended 31 March 2025. The operating profit before property revaluation, tax and the bad debt provision for the year was £277,213 which being a significant increase on the previous year is a fantastic result. These results are testament to the whole team at Hopes whose hard work and passion for the company ensure the continued success of the company.

I would personally like to thank all the staff for their hard work and dedication throughout the year.

The team continued to promote our business with the most recent success being the main sponsor of the NSA North Sheep show held at Greystoke Castle. It was a fantastic opportunity to be the principal sponsor of such a prestigious event and the team did us proud with the stand and hospitality offered on the day. We also ran the annual Christmas Tractor run with over 100 tractors taking part and huge crowds enjoying the display as they drove though villages and towns across West Cumbria raising significant funds for 3 worthy charities. Together with other fund-raising events throughout the year we raised £14,099 for a variety of good causes. We also had the pleasure of hosting the annual Carol service held at the mart in conjunction with RABI.

Hopes has continued with its overarching strategy to reduce the long-term debt whilst maximising the company assets. However, the board and management team recognised that in order to continue to develop and remain competitive in the ring additional buyers were required. The auctioneering team worked tirelessly to attract these and thanks to all their hard work the number of active buyers has significantly increased ensuring our vendors are receiving competitive returns for their stock as well as attracting new vendors.

During the year we saw unprecedented increases in the value of stock being sold, this coupled with an increase in numbers sold resulted in a 16% increase in income for the livestock mart and also resulted in the largest grossing week in the marts history by both stock numbers and gross sale value. The knock on effect of this increase resulted in additional pressure on the company’s overdraft which the team managed well to reduce the impact of additional borrowing costs.

As with other marts Hopes are not immune from bad debts, and with the increased trade comes increased risk of bad debt. As a result of this the company has included a bad debt provision of £87,933 in these accounts. Although these bad debts have been provided for, they are still actively being chased.

This years’ trading profits coupled with a revaluation of the property assets have continued to strengthen the balance sheet value of the company from £3,015,012 at 31 March 2024 to £4,584,387 at 31 March 2025.

As was documented in last years accounts on the 25 October 2024 we received the formal planning permissions for the 15 acres next to the mart. This land is now being marketed and we have received interest in sites but we are mindful given the economic climate about committing additional borrowing at this point to speculatively develop the site.

The Drainwise depot is now complete and they have been a great addition to Hopes site.

We are continuing to review the other Company assets and explore opportunities to maximise the value.

The Board recommend that a final dividend of 10 pence per share be paid.

Going concern

One of the key ongoing responsibilities we have as a Board is to review the resources and funding available to the company. We then use this information to establish whether or not the company is able to remain operational into the foreseeable future. The company prepares annual cash flow forecasts and regular management accounts to assist with financial management, decision making and good conduct. This information is regularly reviewed and monitored by the Board.

The company continues to rely on external finance, principally Virgin Bank, who continue to support us. After making enquiries and reviewing annual cash flow forecasts against the banking facilities available, the Board is confident that the company has adequate resources to continue in operation for the foreseeable future. For this reason, we continue to adopt the going concern basis in preparing these financial statements.

Principle Risks and Uncertainties

Management continually monitor the key risks facing the company together with assessing the controls used in order to manage these risks. The directors agree policies for managing the risk arising from the company’s financial instruments. These are as follows:

Economic downturn – The company acknowledges the importance of maintaining close relationships with key customers in order to be able to identify the early signs of potential financial difficulties.

Competitor pressure – The market in which the company operates, particularly livestock auctioneering is considered to be highly competitive with the existence of other auction marts and alternative sale methods, which may result in a risk of losing sales to competitors. The company manages this risk by providing a quality service and maintaining strong relationships with its key customers. To this end the company seeks to maximise income from its entire asset base as well as looking to strengthen its position within the livestock auctioneering sector.

Exposure to bad debts – Due to the nature of the sector in which the company operates, it faces a significant risk in respect of its trade debtor balances, the Board recognises this risk has a direct correlation to the price of stock we sell which has seen some substantial increases recently. The company manages its risk through close monitoring of the trading activities through the auction and understanding their customers.

Loss of key personnel – This would present significant operational difficulties for the company. The Board seek to ensure that key personnel are appropriately remunerated to ensure that good performance is rewarded.

Interest rate – The Board continues to focus on debt reduction and managing the overdraft in order to minimise the exposure of the interest rate.

Exposure to bad debts – Due to the nature of the sector in which the company operates, it faces a significant risk in respect of its trade debtor balances, the Board recognises this risk has a direct correlation to the price of stock we sell which has seen some substantial increases recently. The company manages its risk through close monitoring of the trading activities through the auction and understanding their customers.

Loss of key personnel – This would present significant operational difficulties for the company. The Board seek to ensure that key personnel are appropriately remunerated to ensure that good performance is rewarded.

Interest rate – The Board continues to focus on debt reduction and managing the overdraft in order to minimise the exposure of the interest rate.

Financial performance

As stated above, the company has achieved an operating profit after tax and bad debt provision of £189,280. The Board are delighted with this given the competitive nature of the business and the current economic challenges and the continued inflationary pressures that have a negative impact on the business, the team at Hopes work hard to reduce the impact these challenges have on the business. The management team continuously review all costs as they are incurred.

The company has three main income streams are as follows:

• The livestock auction

• Land agency

• Rental income

Both Land agency and the livestock action have achieved increases in their department profits with both departments having to adapt and deal with challenges along the way. During the year the company’s turnover increased by 14% which was driven by both the livestock auction and land agency department. The board are committed to supporting the team and allowing them to develop.

The livestock auction has seen unprecedented increases in both value and volume of stock being sold. In order to ensure the mart continued to offer these returns the auctioneering team have attracted additional buyers which has been very well received by the vendors and has ensured we have kept pace with all other outlets. We continue to see new vendors coming to the mart each week. Going forward stock numbers continue to be strong but there are various challenges facing the industry such as disease and economic factors which could potentially have a detrimental effect on the business.

As well as the livestock sales the machinery sales have gone from strength to strength and are very much now a regular event.

The management team are continuing with new initiatives to continue to drive activity and increase stock numbers sold.

As noted above the knock-on effect of the substantial increase in Mart throughput is the additional pressure this puts on the company finances. The team continue to spend large amounts of time managing these debts but this year a bad debt provision of £87,932 has been included; this is currently a provision and we are still actively chasing these monies.

The land agency also had a successful year seeing the benefit from investing in the team in previous years. The department turnover increased by 14% on the year and the team continued to attract new customers and by continuously focusing on raising the profile, we are now well placed to look after all land agency needs and are passionate about driving the department forward. During the year there was concerns when DEFRA pulled the Sustainable Farming Incentive applications and there is still no certainty how the agricultural budget will be deployed but the team have helped navigate this with our customers.

The rental income received continued to increase on the year by 7% with almost 100% occupancy of the units available. Looking into the current year we expect there to be further developments on the rental front.

Without any significant unforeseen factors the directors are confident the company will show profits from the continuing operations for the year ending 31 March 2026. Early management information is supportive of this, although the Board are mindful of the increased costs and volatility within the agricultural sector which could potentially have a negative impact on the business if this risk is not continued to be managed.

Debt reduction is still a key part of the Board’s overall strategy. The company continued to pay down the bank loans which were restructured last year as well as managing the overdraft facility which given the increase in stock values and pressures farmers face is a credit to the team. Overall the total debt reduced by £46,025 during the year but the borrowing costs did increase by £17,273 as a result of utilising the overdraft to fund the increase in the stock sold. Given the increase in trade and economic climate this is testament to the team.

During the year there have been two main capital investments. The first being the creation of the compound at the back of the mart which is tenanted by Drainwise Ltd; I think everyone will agree this is a great use of the space and it is fantastic to have a firm like Drainwise on the site and the second being the investment in the planning for the 15 acres of land adjoining the mart. The board were delighted that post the previous year end this planning was obtained and is a significant step forward for the company.

As a result of the continued strengthened financial position of the company the Board recommend a final dividend of 10 pence per share is paid.

The company still owns the following property assets:

• Butchers field;

• Land at Low Houses;

• Land at Station Hill;

• Land at the Bowling Club; and

• The new auction mart premises and adjoining land.

The company continues to seek to maximise the value of all its assets. The Board will continue to manage the company assets in the way they believe is in the best interest of the company.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the company continued to be that of livestock auctioneer.

The directors' have proposed a final ordinary dividend of 10p per share in respect of the current financial year. This has not been included within creditors as it was not approved before the year end (2024: 10p).

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

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

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

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

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of post balance sheet events, future developments and financial risk management objectives and policies.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of Hope's Auction Company Limited (the 'company') for the year ended 31 March 2025 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 United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 and 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; or

• the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.

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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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 the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

• we identified the laws and regulations applicable to the company through discussions with directors and other management;

• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

• To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships;

• tested journal entries to identify unusual transactions

• assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and

• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation;

• reading the minutes of meetings of those charged with governance;

• enquiring of management as to actual and potential litigation and claims; and

• reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 income statement has been prepared on the basis that all operations are continuing operations.

The notes on pages 15 to 30 form part of these financial statements.

The notes on pages 15 to 30 form part of these financial statements.

The notes on pages 15 to 30 form part of these financial statements.

The notes on pages 15 to 30 form part of these financial statements.

Hope's Auction Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hope's Auction House, Syke Road, Wigton, Cumbria, CA7 9NS.

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 to include 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.

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.

Auction

Turnover represents commissions earned, stated net of VAT, from the sale of livestock and machinery, recognised at the point of sale.

Land Agency

Turnover represents fees receivable, stated net of VAT, in connection with the sale, purchase and letting of land and properties, recognised on exchange of contracts.

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

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:

Freehold land is not depreciated. There has also been no depreciation charged on freehold buildings as the directors' are of the opinion that the nature of the property, it's standard of repair, length of useful life and residual value render depreciation immaterial.

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.

Investments in unlisted entities, which are not subsidiary undertakings, are measured at fair value unless the fair value cannot be reliably measured. Where the fair value cannot be reliably measured the investment will be measured at cost less accumulated impairment losses.

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).

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset 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 in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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

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

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 statement of financial position 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.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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 costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position 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.

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.

Long-lived assets, consisting primarily of property, plant and equipment, comprise a significant proportion of the total fixed assets. The annual depreciation charge depends primarily on the estimated useful lives in light of prospective economic utilisation and physical conditions of assets concerned. Changes in asset useful lives have significant impact on depreciation charges for the period.

The company establishes a provision for receivables that are not estimated to be recoverable. When assessing recoverability the directors consider factors such as the ageing of receivables past experience of recoverability, and the credit profile of individuals or groups of customers.

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

Their aggregate remuneration comprised:

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

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

The tax assessed on the profit on ordinary activities for the year is lower than (2024: lower than) the standard rate of corporation tax in the UK of 25% (2024: 25%).

The proposed final dividend for the year ended 31 March 2025 is:

The proposed final dividend is subject to approval by shareholders and has not been included as a liability in these financial statements.

Reversals of previous impairment losses have been recognised in profit or loss as follows, after an independent revaluation of the Syke Road property by C&D Rural during the year:

More information on impairment movements in the year is given in note 11.

Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:

More information on impairment movements in the year is given in note 11.

Freehold land and buildings with a carrying amount of £3,162,725 are held at valuation, with the last independent valuation carried out on the mart site at November 2024 by C & D Rural, a qualified professional valuer, in accordance with RICS Valuation Professional Standards.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

The fair value of the investment property has been determined internally using the expertise of the company's own RICS registered valuers. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

The above investments include £31,000 (2024: £31,000) measured at fair value. The valuation is based on the price of the most recent shares sold in the unlisted entity.

Included in creditors falling due within one year are liabilities totalling £899,000 (2024: £827,199) which are secured by a debenture held by Clydesdale Bank Plc that creates a fixed and floating charge over the assets of the company, as well as separate legal charges over the Syke Road mart site and land at Low Houses Farm.

Included in creditors falling due after more than one year are liabilities totalling £319,023 (2024: £382,471) which are secured by a debenture held by Clydesdale Bank Plc that creates a fixed and floating charge over the assets of the company, as well as separate legal charges over the Syke Road mart site and land at Low Houses Farm.

Included in bank loans above is a Bounce Back Loan being repaid at £833 per month plus interest of 2.5% over 5 years ending in 2026, a fixed rate loan being repaid at £2,256 per month over 10 years ending July 2032, and a variable rate loan with variable monthly repayments over 10 years ending July 2032 with an interest rate of 3.5% over Bank of England base rate.

Finance lease payments represent rentals payable by the company for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Obligations under finance leases are secured on the assets they were used to purchase.

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

The amount of the deferred tax liability set out above that is expected to reverse within 12 months is £nil, and relates to tax on the revaluation reserve less tax on capital losses carried forward. Accelerated capital allowances are offset by a deferred tax asset on tax losses.

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.

The company has one class of ordinary shares which carry voting rights but no right to fixed income.

Preference share capital has been issued on the terms that is, at the option of the company, liable to be redeemed at par on such terms and in such manner as the company before the issues of the shares may be special resolution determine.

The revaluation reserve is a non-distributive reserve and represents previous upwards revaluations of tangible fixed assets.

The profit and loss reserve represents cumulative profits and losses, net of dividends paid and other adjustments.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

During the year a number of the directors undertook routine trading transactions through the livestock auction on normal trade terms. The total gross sales through the auction mart were £1,183,452 (2024: £1,225,607) and purchases through the auction mart totalled £66,187 (2024: £99,165), this resulted in total commissions of £44,483 (2024: £45,614). At the year end £12,836 (2024: £2,042) was owed to the company.

A total of £2,480 (2024: £1,829) was invoiced to farm businesses run by directors for Land Agency services, with £nil (2024: £nil) owed to the company at the year end.