Year Ended
Registration number:
Parris Tractors Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Parris Tractors Limited
Company Information
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Directors |
Mr A P Parris Mrs S M Parris Mr R A J Parris Mrs P J Parris |
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Registered office |
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Auditors |
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Parris Tractors Limited
Strategic Report for the Year Ended 31 March 2025
The directors present their strategic report for the year ended 31 March 2025.
Principal activity
The principal activity of the company is the trading of agricultural machinery, equipment and supplies.
Review of the business
The directors are pleased to report that the results shown in these financial statements present strong profitability once again, along with continued balance sheet growth, despite the uncertain UK and agricultural sector economic conditions.
Turnover for the year fell by £2,897,151 (9%) versus the year ended 31 March 2024. Despite the revenue changes described above, gross margin remained relatively consistent at 4.97% compared to 4.99% for the previous year. Our customers continued to face volatility in their commodity prices and inclement weather conditions during this period, which led to both a reduction in demand, coupled with more acute price sensitivity which was especially prevalent in the third quarter of our year. Overheads have remained under close control throughout the year. The strong performance in the year has resulted in the strengthening of the net assets position at the balance sheet date to £6,156,533 (2024: £5,671,599).
In light of the uncertainties summarised below, but taking into account the positive trading for 2025 and the year-to-date trading performance for 2026, the directors remain positively optimistic. They also recognise that steps may be required to reflect uncertainty in the market.
The company continues to actively monitor and control its costs.
The company's key financial and other performance indicators during the year were as follows:
|
Financial KPIs |
Unit |
2025 |
2024 |
|
Turnover |
£ |
28,278,068 |
31,175,219 |
|
Gross Margin |
£ |
1,405,213 |
1,556,129 |
|
Gross Margin |
% |
5 |
5 |
|
Profit before tax |
£ |
702,435 |
781,652 |
|
Net cash flow |
£ |
1,567,559 |
(838,927) |
Parris Tractors Limited
Strategic Report for the Year Ended 31 March 2025
Principal risks and uncertainties
The principal risks and uncertainties for the company are derived from the changeability of the agricultural industry as a whole within the South West of England and its European import and export markets. Also, the value of sterling against foreign currencies has a significant impact on both sales and margins. Strengthening currencies has continued to contribute to falling demand pressures from overseas customers.
Weather conditions, regulations and government policies (both from within the UK and EU) can make commodity prices fluctuate, affecting the ability for customers to invest in agricultural machinery with confidence. The company is reliant upon the continued profitability and confidence in the farming industry as a whole to maintain current levels of financial performance into the future. The directors have significant experience of the agricultural industry and are very aware of the potential volatility.
Approved and authorised by the
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Parris Tractors Limited
Directors' Report for the Year Ended 31 March 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
Directors of the company
The directors who held office during the year were as follows:
Dividends
Ordinary dividends were paid amounting to £4,000 (2024: £8,000)
Financial instruments
Objectives and policies
The company's activities expose it to a number of financial risks including credit risk, cashflow risk and liquidity risk. The use, and nature, of financial instruments are determined by the directors, in the context of trading terms made available to the company by the customers and suppliers, with the objective of securing the liquidity and profitability of the company.
Price risk, credit risk, liquidity risk and cash flow risk
The company has a normal level of exposure to price, liquidity and cash flow risks arising from trading
activities.
Price risk - Due to the nature of the financial instruments used by the company, there is exposure to price risk. This lies in the purchase of goods from foreign suppliers and is actively managed by undertaking transactions in the relevant currency. From time to time, the company enters into foreign forward exchange contracts in order to hedge this risk.
Liquidity risk - The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business. Liquidity risk is managed through working capital facilities provided by the company’s bankers, secured by a debenture over the company's assets, and trading terms agreed with trade creditors, suppliers, and directors loan accounts.
Interest rate risk - The company is exposed to interest rate risk on its variable rate borrowings. Management continue to monitor the effect of changes in interest rates and manage borrowings to achieve finance at a rate aligned with the company’s long term strategy. The company’s borrowings consist of variable interest rate overdraft facility, the company is therefore exposed to interest rate risk on variable rate borrowings.
Trade debtors are managed in respect of credit and cash flow risk policies concerning the credit offered to customers, and the regular monitoring of amounts outstanding for both time and limits.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Trade creditors are paid in line with agreed credit terms and conditions, subject to correct invoicing.
Parris Tractors Limited
Directors' Report for the Year Ended 31 March 2025
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Future developments
Interest rates are still relatively high and together with political unrest and recent changes to tax regimes, many farmers will be avoiding the risk of making new investments, which in turn is likely to reduce the demand for agricultural machinery.
Approved and authorised by the
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Parris Tractors Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
Parris Tractors Limited
Independent Auditor's Report to the Members of Parris Tractors Limited
Opinion
We have audited the financial statements of Parris Tractors Limited (the 'company') for the year ended 31 March 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the 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 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 director's 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Parris Tractors Limited
Independent Auditor's Report to the Members of Parris Tractors Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 where 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. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 6, 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.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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:
Parris Tractors Limited
Independent Auditor's Report to the Members of Parris Tractors Limited
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we discussed with management the laws and regulations applicable to the company, reviewed certification identified on the company website and other communications and considered findings from previous audits.
The key laws and regulations we identified were Health & Safety at Work legislation and EU-UK Trade and Cooperation Agreement.
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily Companies Act 2006, Corporation Taxes Acts 2009 & 2010, and the Capital Allowances Act 2001.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deal with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue trading and the risk of material misstatement to the financial statements.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
• Review of relevant correspondence, reports and documentation;
• Review of legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance; and
• Review of health and safety incidents which have been reported under the reporting of injuries, diseases and dangerous occurences regulations 2013 ("RIDDOR") during the year.
As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which management confirmed there had been none during or after the period.
We also evaluated the risk of fraud through management override including that arising from management incentives. The key risks we identified were incentives relating to reduction of profits in order to minimise the company’s tax liability, and we determined that the principle risks were related to the understatement of profits and revenue recognisition, either through overstating expenditure or management bias in accounting estimates.
In response to the identified risk, as part of our audit work we:
• Reviewed and tested journal entries throughout the year, for appropriateness;
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates;
• Undertook sample testing and analytical review of expenditure incurred during the year, for appropriateness; and
• Undertook sample testing and analytical review of revenue recognised during the year, for appropriateness.
Parris Tractors Limited
Independent Auditor's Report to the Members of Parris Tractors Limited
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.
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Ground Floor
Blackbrook Gate 1
Blackbrook Business Park
TA1 2PX
Parris Tractors Limited
Profit and Loss Account
Year Ended 31 March 2025
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Note |
2025 |
2024 |
|
|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Amortisation of goodwill |
( |
( |
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
- |
|
|
|
Operating profit |
716,412 |
798,003 |
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
(13,977) |
(16,351) |
||
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
|
Profit for the financial year |
|
|
Parris Tractors Limited
Balance Sheet
31 March 2025
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Note |
2025 |
2024 |
|
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Fixed assets |
|||
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Intangible assets |
- |
|
|
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Tangible assets |
|
|
|
|
|
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||
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Current assets |
|||
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Stocks |
|
|
|
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Debtors |
|
|
|
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Cash at bank and in hand |
|
|
|
|
|
|
||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
- |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
34 |
34 |
|
|
Profit and loss account |
6,156,499 |
5,671,565 |
|
|
Shareholders' funds |
6,156,533 |
5,671,599 |
Approved and authorised by the
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Company Registration Number: 08977682
Parris Tractors Limited
Statement of Changes in Equity
Year Ended 31 March 2025
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 April 2024 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 March 2025 |
|
|
|
|
Share capital |
Profit and loss account |
Total |
|
|
At 1 April 2023 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 March 2024 |
34 |
5,671,565 |
5,671,599 |
Parris Tractors Limited
Statement of Cash Flows
Year Ended 31 March 2025
|
Note |
2025 |
2024 |
|
|
Cash flows from operating activities |
|||
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Profit for the year |
|
|
|
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Adjustments to cash flows from non-cash items |
|||
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Depreciation and amortisation |
|
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
|
|
|
|
|
||
|
Working capital adjustments |
|||
|
Decrease/(increase) in stocks |
|
( |
|
|
(Increase)/decrease in debtors |
( |
|
|
|
Increase/(decrease) in creditors |
|
( |
|
|
Decrease in deferred income, including government grants |
- |
( |
|
|
Cash generated from operations |
|
( |
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
( |
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Net receipt/(payment) to hire purchase creditor |
( |
( |
|
|
Items acquired from hire purchase |
|
|
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
|
Cash and cash equivalents at 1 April |
( |
|
|
|
Cash and cash equivalents at 31 March |
1,109,069 |
(458,490) |
|
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
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General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
The financial statements have been prepared on a going concern basis. In forming this opinion, and in particular, the directors have considered the performance of the company both during the year and subsequent to the year end, and the forecasted financial performance
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
Revenue relating to the sale of goods is recognised in the profit and loss account on delivery. Where customers are invoiced prior to delivery of goods a deferred income balance arises which is included within accruals and deferred income within current liabilities. For goods which are collected this is recognised in the profit and loss account once the customer has been notified that the goods are available to collect.
Revenue relating to the sale of services is recognised in the profit and loss account when the service
has been provided.
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
Key judgements and sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The key judgement in relation to the financial statement is that of going concern. The directors are satisfied with the trading performance and position of the company and that the going concern basis of preparation remains appropriate. In making this assessment the directors have considered their expectations for the 12 months following approval of these financial statements and also the ongoing availability of overdraft facilities which are next due for renewal in March 2026 and are subject to a fixed and floating charge over the company’s assets.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are as follows.
Goodwill is considered to have a finite useful life, the directors believe goodwill should be amortised over 10 years. This estimate is based upon the economic climate and no reliable estimate being able to be achieved as required under FRS 102 to amortise over a longer period. The carrying amount is £Nil (2024 - £150,000).
Stock is measured at the lower of cost and net realisable value. This requires estimation as to the net realisable value of each stock line, as to whether a provision is required. The carrying amount is £5,659,633 (2024 - £6,075,323).
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Plant and machinery |
10% reducing balance |
|
Motor vehicles |
10% reducing balance |
|
Office equipment |
20% reducing balance |
Goodwill
Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
10% straight line |
Stocks
Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Cost represents the purchase price of goods for resale, net any discounts receivable.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank overdrafts;
• Hire purchase and finance lease liabilities; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for hire purchase and finance lease obligations, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of cash or other consideration expected to paid or received, after taking account of impairment adjustments.
Assets held under hire purchases and finance leases are recognised at the lower of fair value at inception of the lease and the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a financial lease obligation. The asset is subsequently measures as discussed in the tangible fixed asset accounting policy above. Finance lease obligations are subsequently measured at amortised cost using the effective interest method.
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Sale of goods |
|
|
|
Commissions received |
|
- |
|
|
|
The analysis of the company's turnover for the year by class of business is as follows:
|
2025 |
2024 |
|
|
Tractor and machinery sales |
|
|
|
Other sales |
|
|
|
Commissions received |
|
- |
|
|
|
The analysis of the company's turnover for the year by market is as follows:
|
2025 |
2024 |
|
|
UK |
|
|
|
Europe |
|
|
|
Rest of world |
|
|
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2025 |
2024 |
|
|
Sub lease rental income |
- |
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Foreign exchange losses |
|
|
|
Profit on disposal of property, plant and equipment |
( |
( |
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Administration and support staff |
|
|
|
Operational staff |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Auditor's remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements |
|
|
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Other interest receivable and similar income |
|
2025 |
2024 |
|
|
Interest income on bank deposits |
|
|
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Other interest payable |
|
|
|
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
|
|
Tax expense in the income statement |
|
|
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
(Decrease)/increase in UK and foreign current tax from adjustment for prior periods |
( |
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
- |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
( |
- |
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2025 |
Liability |
|
Fixed asset timing differences |
|
|
|
|
2024 |
Liability |
|
Fixed asset timing differences |
|
|
|
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Intangible assets |
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 April 2024 |
|
|
|
At 31 March 2025 |
|
|
|
Amortisation |
||
|
At 1 April 2024 |
|
|
|
Amortisation charge |
|
|
|
At 31 March 2025 |
|
|
|
Carrying amount |
||
|
At 31 March 2025 |
- |
- |
|
At 31 March 2024 |
|
|
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Tangible assets |
|
Leasehold property improvements |
Office equipment |
Motor vehicles |
Plant and machinery |
Total |
|
|
Cost or valuation |
|||||
|
At 1 April 2024 |
|
|
|
|
|
|
Additions |
- |
|
|
|
|
|
Disposals |
- |
- |
- |
( |
( |
|
At 31 March 2025 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 April 2024 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
|
At 31 March 2025 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 March 2025 |
|
|
|
|
|
|
At 31 March 2024 |
|
|
|
|
|
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Stocks |
|
2025 |
2024 |
|
|
Finished goods and goods for resale |
|
|
The carrying amount of stocks pledged as security for liabilities amounted to £
|
Debtors |
|
2025 |
2024 |
|
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash at bank |
|
|
|
Bank overdrafts |
- |
( |
|
Cash and cash equivalents in statement of cash flows |
1,109,069 |
(458,490) |
|
Analysis of cash and cash equivalents and net debt |
|
At 1 April 2024 |
Cash flow |
Non-cash movement |
At 31 March 2025 |
||
|
£ |
£ |
£ |
£ |
||
|
Cash at bank and on hand |
969 |
1,108,100 |
- |
1,109,069 |
|
|
Bank overdraft |
(459,459) |
459,459 |
- |
- |
|
|
Cash and cash equivalents |
(458,490) |
1,567,559 |
- |
1,109,069 |
|
|
Finance lease obligations due within one year |
(330,477) |
(330,802) |
203,302 |
(203,627) |
|
|
Net debt |
(788,967) |
1,236,757 |
203,302 |
905,442 |
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other creditors |
|
|
|
|
Accruals |
|
|
|
|
Corporation tax |
209,523 |
220,877 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
- |
|
|
Loans and borrowings |
Non-current loans and borrowings
|
2025 |
2024 |
|
|
Hire purchase contracts |
- |
|
Current loans and borrowings
|
2025 |
2024 |
|
|
Bank overdrafts |
- |
|
|
Hire purchase contracts |
|
|
|
|
|
|
Bank borrowings
|
|
Hire purchase liabilities
The hire purchase liability is denominated in sterling and has a nominal interest rate of 0.1%. The carring amount at year end is £203,627 (2024 - £330,477)
The hire purchase lease liability is secured over the asset it relates to.
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2025 |
2024 |
|
|
Not later than one year |
- |
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 April 2024 |
|
|
|
Additional provisions |
|
|
|
At 31 March 2025 |
|
|
|
|
||
|
Pension schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
10.00 |
|
10.00 |
|
|
|
10.00 |
|
10.00 |
|
|
|
10.00 |
|
10.00 |
|
|
|
1.00 |
|
1.00 |
|
|
|
1.00 |
|
1.00 |
|
|
|
1.00 |
|
1.00 |
|
|
|
1.00 |
|
1.00 |
|
|
34 |
340 |
34 |
|
Rights, preferences and restrictions
|
Ordinary A shares have the following rights, preferences and restrictions: |
|
Ordinary B shares have the following rights, preferences and restrictions: |
|
Ordinary C shares have the following rights, preferences and restrictions: |
|
Ordinary D shares have the following rights, preferences and restrictions: |
|
Ordinary E shares have the following rights, preferences and restrictions: |
|
Ordinary F shares have the following rights, preferences and restrictions: |
|
Ordinary G shares have the following rights, preferences and restrictions: |
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
|
Dividends |
Interim dividends paid
|
2025 |
2024 |
|||
|
Interim dividend of £ |
|
|
||
|
Interim dividend of £ |
|
|
||
|
Interim dividend of £ |
|
|
||
|
Interim dividend of £ |
|
|
||
|
|
|
After the balance sheet date, interim dividends of £500 were declared on each of the following share classes: D, E, F and G. These dividends have not been accrued in the Balance Sheet.
|
Related party transactions |
Key management compensation
|
2025 |
2024 |
|
|
Salaries and other short term employee benefits |
|
|
|
Transactions with directors |
|
2025 |
At 1 April 2024 |
Advances to director |
Repayments by director |
At 31 March 2025 |
|
Director 1 |
||||
|
Interest free loan repayable on demand |
|
( |
|
|
|
2024 |
At 1 April 2023 |
Advances to director |
Repayments by director |
At 31 March 2024 |
|
Director 1 |
||||
|
Interest free loan repayable on demand |
|
( |
|
|
Parris Tractors Limited
Notes to the Financial Statements
Year Ended 31 March 2025
Summary of transactions with other related parties
An amount of £8,548 (2024 - £206,682) is owed to this related party as at the year end. During the year sales were made to the related party of £60,756 (2024 - £542,544), and purchases made of £974,716 (2024 - £245,616).
A partnership related to two of the director-shareholders of the company:
An amount of £316,071 (2024 - £27,860) is owed to this related party as at the year end. During the year loans were advanced to the company of £750,000 (2024 - £150,000), and repayments were made by the company of £842,151 (2024 - £nil). Sales were made to the related party of £280,481 (2024 - £139,819), and purchases made of £115,661 (2024 - £1,146,362).
A joint venture with a director-shareholder in common with the company:
An amount of £85,062 (2024 - £26,520) is owed to this related party as at the year end. During the year sales were made to the related party of £188,905 (2024 - £369,971), and purchases made of £614,432 (2024 - £258,033).
A partnership with a director-shareholder in common with the company:
An amount of £159,662 (2024 - £218,287) is owed from this related party as at the year end. During the year loans were advanced to the related party of £1,375 (2024 - £47,157), and repayments were made by the related party of £60,000 (2024 - £nil).
A company with a director-shareholder in common with the company:
An amount of £37,192 (2024 - £nil) is owed from this related party as at the year end. During the year sales were made to the related party of £423,464 (2024 - £430,317), and purchases made of £155,100 (2024 - £102,500).
A company with a director-shareholder in common with the company:
An amount of £250,842 (2024 - £250,842) is owed from this related party as at the year end. During the year loans were advanced to the related party of £nil (2024 - £nil), and repayments were made by the related party of £nil (2024 - £nil).
Transactions with shareholders
Loans of £84,000 (2024 - £80,000) were due to shareholders as at the year end. During the year £4,000 (2024 - £8,000) was advanced to the company from shareholders.
An amount of £196,800 (2024 - £74,257) was owed from shareholders as at year end. During the year sales were made to the shareholders of £328,836 (2024 - £74,809), and purchases made of £250,913 (2024 - £58,515).
Transactions with close family members.
An amount of £30,600 (2024 - £nil) was owed from these close family members as at the year end. During the year sales were made to these close family members of £204,928 (2024 - £19,380), and purchases made of £46,800 (2024 - £nil).
An amount of £6,300 (2024 - £nil) was owed from these close family members as at the year end. During the year sales were made to these close family members of £20,700 (2024 - £74,809), and purchases made of £24,600 (2024 - £45,250).