The directors present the strategic report for the year ended 30 June 2025.

The Company is primarily engaged in seed production, grain drying and storage, fertilizer trading, general bulk logistics and the trading of UK combinable crops and remains the largest farmer owned business in the North of England and Scotland.

The 2024/2025 grain marketing witnessed continued price volatility but ultimately the market continued its downward trend with London July 25 wheat futures trading in a £63.00 p/t band from a high of £208.30 on the 1st July 24 to a low of £145.00 on the 20th June 25. The main catalyst for the downward movement in price was abundant global stocks being available on the world market leading to strong competition to find market demand for wheat globally and reduced consumption locally.

Whilst UK production was at a record low a combination of high carry in stocks from 23/24 and elevated UK domestic prices allowed imported grain to flow in during the early part of the season once again causing farmers to carry crops into the 25/26 campaign in the hope of higher prices in the following campaign.

Grainco's robust balance sheet allowed Grainco to offer farmers sufficient liquidity during ongoing challenging times. All segments of Grainco's diverse operations performed well which all aided in delivering another excellent profit for its shareholders and in further increasing its balance sheet.

Grainco's excellent financial performance was once again matched with market leading pool results.

Grainco continued its association with Humber Grain which was especially pleasing given the nature of professionalism exhibited by this group of first-class large growers based primarily in Lincolnshire.

Grainco's large scale pelleting plant continued to perform well and extended its long-term agreement during the year with its key clients. Grainco's storage assets at the Wilton and Piercebridge were fully utilized during the season and its Seed processing plant continued to deliver first class seed to its shareholders and the wider farming community.

All of Grainco’s mobile plant, land, houses, retail units and rental offices remain fully occupied on a mixture of short- and long-term agreements.

The company’s customer relationships with its consumers and farmer clientele remain robust due to our excellent service levels and logistical capabilities backed by our strong Balance Sheet and our many years of experience in the marketplace in which we operate.

The company continues to explore new business ventures which would add value to its farmer clients and benefit the entire food chain.

The Company is exposed to many operational and commercial risks. It is the responsibility of the Company's directors to assess these risks and ensure appropriate controls are in place to mitigate their effect. The directors consider that the principal risks and mitigating controls are as follows:

• A shortage of grain - the Company procures a large proportion of its grain requirements directly from UK farmers across North East England and Scotland. The Company also has several strategic alliances with suppliers, both within the UK and further afield, capable of fulfilling grower shortages;

• The loss of stock or equipment - the Company has high safety and operating standards across all its sites with critical equipment subject to a continual maintenance review. The Company also has a tailored insurance programme to minimise financial and operating impact in the event of a loss. These procedures and plans are regularly reviewed by the directors and other external parties to ensure they remain robust and appropriate;

• A decline in demand - markets are closely monitored by the directors and communication is regular to ensure their plans are consistent with those of the Company. A significant grain volume is forward sold on agreements with fixed or minimum contracted volumes;

• Grain and energy prices - the Company is exposed to potentially volatile grain and energy costs and mitigates this risk through entering into, when appropriate to do so, a mixture of variable and fixed price contracts at various points in advance of the physical delivery of grain and energy. When considered appropriate, the Company also uses approved futures and hedging markets to manage price risk on grain trading positions;

• Insurance policies – the Company has in place a wide range of insurance policies to mitigate its risk exposure such as, bad debt, stock deterioration, equipment and public liability risk;

• The Board considers matters of corporate governance across the Company and ensures that agreed procedures are adhered to robustly and appropriately documented; and

Directors appointed to the Finance & Risk Committee: Steve Gillie (Chair), Peter Jackson, Bob Davison, Susan Duck (Finance Director), Gary Bright (Managing Director) and John Hutcheson.

The directors regularly review and agree its policies for managing financial risk. The policies are implemented by the Company's financial controller. The Company's significant financial risks and relevant policies, which have not changed throughout the year, are as follows:

• Credit risk - this risk arises from the collection of trade debtors. Credit checks are performed on potential customers through our credit insurance scheme before sales are transacted. The amount of exposure to any individual customer is controlled by means of credit limit that is set by our insurers. Invoice financing is also in place to reduce the financial impact of non-collection of debtors

• Liquidity risk - the Company mitigates this risk by ensuring that sufficient bank facilities are in place to meet the investment and working capital needs of the company, including any seasonal borrowing peaks. Bank covenants and forecast facility headroom are monitored monthly and more regularly if forecast facility headroom falls below pre-determined limits

• Commodity price and position risk - The trading activities of the Company necessitate that forward positions are taken in order to meet supply requirements in the ordinary course of business. Positions are operated within duly authorised limits relevant to each commodity group. Senior management and board members regularly review these positions compared to those limits. Exposure to the commodity price fluctuation is controlled by the operation of position limits and by the use of approved futures markets. The Company accounts for these forward contracts by fair value hedge accounting

• Interest rate risk - the Company has interest bearing liabilities exposed to movements in the United Kingdom base rate. The risk is mitigated through a balanced mix of floating and, when considered appropriate, capped and/or fixed rate borrowings to ensure stability of future interest cash flows

• Currency risk - Trading activities include export/import of grain, which creates exposure to movements in foreign exchange rates, principally Euro and US dollar. The exposure to this risk is managed through matching forward exchange contracts. Authorisation for binding the Company to such contracts is restricted to authorised officers.

• Cyber crime risk - the Company's use of technology exposes it to digital, or cyber, crime. This exposure is also heightened by the general increase in criminal activity across the globe and the increasing sophistication of criminals. Cyber crime impacts range from events aimed at disrupting business activity to fraudulently obtaining cash payments. The Company mitigates this risk through investment in up to date security of its technology assets as well as employee training and education.

The directors consider that the most relevant KPl’s are as follows:

• Turnover - £238,242,461 (2024: £261,137,962 )

• Profit before tax - £5,593,994 (2024: £5,047,065)

• Gross profit margin is a measure of the net contribution from the group’s core activities and is gross profit expressed as a percentage of turnover. Gross profit margin for the year was 5.7% (2024: 4.6%).

• Earnings (or income) Before Interest, Tax and Depreciation (“EBITDA”) as a measure of cash generation and value creation. EBITDA for the year was £7,417,066 (2024: £6,951,125 ).

• Return on Capital Employed (“ROCE”) as a measure of operational efficiency. ROCE is operating income as a percentage of invested capital. Invested capital is non-current and current assets less current liabilities. ROCE for the year was 18.6% (2024: 15.1%).

The board of directors of Grainco Limited consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 30 June 2025. In particular, by reference to the approval of our business plan and regular board meeting discussions which guide the future of the Company.

Our discussions and plans aim to secure the success of the Company in the long term for the benefit of stakeholders, employees and customers.

To achieve this, we have built a board with a great deal of industry experience to allow them to assess the risks facing the Company.

We aim to continue to secure the best deals available for farmers in the North of England and Scotland by utilising the Company's strategic assets, marketing skills and other protection against risks outwith their control.

Our employees are also essential to the delivery of the board's plans. We continue to seek experienced staff who can fulfil the required roles, and also aim to provide secure employment and provide fair pay, benefits and working conditions. For many of our staff health and safety poses a particular risk due to the inherent dangers of the sites and a great deal of time, thought and finance is provided to ensure that all necessary PPE and training is provided to allow employees to work safely. The Company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the Company. This is achieved through informal meetings, newsletters and annual performance reviews.

The Company gives full and fair consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion.

Where existing employees become disabled, it is the Company’s policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim.

As the board of directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating with the highest standards of business conduct and good governance. This contributes to the delivery of our plans for the Company's future. The intention is to continue to grow the Company's reputation and ensure that the actions of management and employees reflect the board's responsible behaviour.

In turn, this allows stakeholders to also benefit from the Company's success.

By order of the board

The directors present their annual report and financial statements for the year ended 30 June 2025.

The Company is a general trading company whose principal activity continued to be that of the trading and marketing of grain. The Company is registered in England under the company number 03066352.

The results for the year are set out on page 13.

Ordinary interim dividends were paid of £1,000,000 (2024: £850,000).

The directors do not recommend payment of a final dividend.

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

The directors are aware of the need to consider fostering the Company’s business relationships with suppliers, customers and others. The directors aim to maintain good relationships with both customers, suppliers and employees to ensure the smooth running of the business and the efficient and effective execution of the board's plans for the business.

The auditors, Greaves West and Ayre, will be proposed for reappointment in accordance with Section 485 of the Companies Act 2006.

As the Company has consumed more than 40,000 kWh of energy in this reporting period, it does not qualify as a low energy user and is required to report on its emissions, energy consumption and energy efficiency activities.

Streamlined Energy & Carbon Reporting (SECR)

Under the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon) Regulations 2018, the company is mandated to disclose its UK energy use and associated greenhouse gas (GHG) emissions. As a minimum, it is required to report the GHG emissions from fuel combustion, purchased energy and transport vehicles. Additionally, the use of an intensity ratio and an outline of implemented efficiency measures are required under the Streamlined Energy and Carbon Reporting (SECR) regulations.

To ensure a high level of transparency is achieved, robust and recognised reporting methods are implemented. The reporting methodology involves usage of the 2025 DESNZ (Department for Energy Security & Net Zero) emissions factors to calculate and assess our UK operational emissions.

The SECR reporting period covers GrainCo Limited’s operations from the 1st July 2024 to the 30th June 2025 and our calculations are for the following scopes:

• Building-related energy – Onsite fuel combustion (Scope 1), gas consumption (Scope 1), and purchased electricity consumption (Scope 2).

• Transportation – Fuel combustion in company vehicles (Scope 1) and emissions from company electric vehicles (EVs) (Scope 2)

GrainCo Limited’s emissions have been assessed (by sustainability consultancy McGrady Clarke) in accordance with the ‘GHG Protocol Corporate Accounting and Reporting Standard’ and in line with DESNZ’s ‘Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting Requirements’. The DESNZ 2025 emissions conversion factors were used to quantify the emissions associated with GrainCo Limited’s UK operations for the specified reporting period.

Organisational Boundary

We have used the operational control approach. This SECR includes all emissions under GrainCo Limited, and includes emissions from Meldon Village Storage and Drying Limited.

Energy Efficiency Measures

During the reporting period, we implemented the following energy efficiency measures:

• The 550kw solar array is now fully operational at the Port of Tyne.

So far as the directors are aware, there is no relevant audit information of which the company's auditor are unaware. Additionally, the directors 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 auditors are aware of that information.

Information on risks and uncertainties is not shown in the Directors' Report as it is included in the Strategic Report under s414C(11) of the Act. For details of the fair review of the business, principal risks and uncertainties facing the company as well as trading performance and future developments, please see the Strategic Report on page 1.

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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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 directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

We have audited the financial statements of Grainco Limited (the 'company') for the year ended 30 June 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, 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 30 June 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

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

• the financial statements are not in agreement with the accounting records and returns; or

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

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

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

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 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, and from our commercial knowledge and experience of the sector;

• 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, including legislation such as the Companies Act 2006, taxation legislation, employment legislation and data protection;

• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, contacting the entity’s solicitor for any details of non-compliance and inspecting current year legal expenditure; and

• identified laws and regulations of particular relevance 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; and

• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, including any fraud associated with revenue recognition, 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 were indicative of potential bias;

• traced a sample of sales transactions from source documentation to nominal ledgers;

• traced a sample of sales around the year-end from source documentation to invoice to ensure cut-off is operating correctly;

• traced a sample of sales credit notes throughout the year and around the year-end in order to confirm their commercial justification; and

• evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

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 against the company; and

• reviewing correspondence with HMRC 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.

The laws and regulations which are considered to be significant to the entity relate to health and safety. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence on non-compliance.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.

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 profit and loss account has been prepared on the basis that all operations are continuing operations.

Grainco Limited is a private company limited by shares incorporated in England and Wales. The registered office is Tyne Dock, South Shields, Tyne & Wear, NE34 9PL.

The financial statements are prepared on the going concern basis and in accordance with the Companies Act 2006 and FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”).

The principal accounting policies, which have been applied consistently throughout the financial year, are set out below.

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 pound.

The financial statements have been prepared under the historical cost convention, modified 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.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life using the straight line method, as below.

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.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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 (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

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 replacement cost and cost, adjusted where applicable for any loss of service potential.

The company has elected to use hedge accounting to account for stock.

As a result of the fact that stock is part of a wider hedge, the hedge adjustments are included through the financial instruments rather than as an adjustment to stock values.

Stock is accounted for at the lower of cost or net realisable value at each reporting date, as such there is no requirement to have a separate impairment review.

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.

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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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 carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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.

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.

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised under the accrual method 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.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Grant income currently recognised in the accounts relates to grants relating to capital expenditure. The amount of grant income recognised in the accounts is disclosed in note 4 to the accounts.

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.

Consolidated accounts

The financial statements present information about the company as an individual undertaking and not about its group. The company has not prepared group accounts as it is exempt from the requirement to do so by section 400 of the Companies Act 2006 as it is a subsidiary undertaking of Tynegrain Limited, a company incorporated in England and Wales, and is included in the consolidated accounts of that company.

Profit Incentive Scheme

The company operates a profit incentive scheme which is open to all selected employees who accept written invitations to participate. The scheme is a three year incentive scheme and terminates on 30 June 2026. No bonus will be payable under the scheme unless pre-tax profits equal or exceed the target set.

Liabilities accruing through this scheme are estimated at fair value and recognised in the profit and loss account as salary costs.

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.

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

Fees payable to the company's auditor for the audit of the company were £64,547. The auditor provided audit services for all associate companies of Grainco Limited. Fees payable in respect of these services amounted to £43,697.

During the year the auditor received £3,140 for the supply of IT services. The auditor also received £18,274 which related to recharged equipment and software subscription costs.

For the purposes of this note, associated companies means other members of the Tynegrain group and Tynegrain Agriculture Limited.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2024 - 4).

The highest paid directors' remuneration was enhanced in 2024 due to the inclusion of the four year crystallised long term incentive scheme payments.

This figure represents amounts paid to the highest paid director during the year and does not include amounts accruing in relation to the company's current long term incentive scheme or annual bonus. The accrued amounts are calculated and paid on an agreed basis which relates to the value added to the group, over the previous four year period for the crystallised scheme paid and included above, and three year period for the new scheme, which does not form part of the directors annual remuneration package until crystallisation.

Included in remuneration for qualifying services are directors' benefits receivable in respect of use of and fuel for vehicles and medical care.

No directors were paid any shares in respect of qualifying services under a long term incentive scheme.

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:

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

More information on the impairment is given in note 12.

Investment property comprises the Piercebridge shop, quarry and houses. The fair value of the investment property is based on the directors' knowledge and understanding of the local market and comparable properties. The fair value is considered to be equal to the cost of purchasing the properties in 2017. The directors' consider the fair value to be reflective of the market value at the year end.

Market value for the investments is not readily ascertainable but it is the directors belief that the market value of the investments is not less than their carrying value in the accounts.

Grainco Scotland Limited was dormant throughout the year to 30 June 2025. For this reason the company has not consolidated its subsidiary on the basis that the results of consolidation would not present a materially different position. These accounts only present information about Grainco Limited itself.

Registered office addresses (all UK unless otherwise indicated):

Details of the company's subsidiaries at 30 June 2025 are as follows:

Registered office addresses (all UK unless otherwise indicated):

Maritime Shipping and Logistics Ltd's last year end before the parent company's year end was 31 August 2024. All other subsidiaries have coterminous year ends.

The bank overdraft is secured by way of:-

- a first legal charge over the leasehold property know as Plot 9, Wilton International Site, Middlesbrough,

- a debenture including a fixed charge over all present freehold and leasehold property, a first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future, and a first floating charge over all assets and undertakings both present and future,

- a charge over contract monies dated 31 January 2014, and

- a fixed charge over book debts and other debts, goodwill, uncalled capital and intellectual property and a floating charge over all other assets.

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:

The deferred tax liability set out above is in relation to the timing of capital allowances. The effect is expected to reverse over the life of the assets.

The deferred tax asset set out above is in relation to the timing of the profit incentive scheme. The effect is expected to reverse over the life of the scheme.

Following the enactment of the Finance Act 2021 the deferred tax provision at the year end has been calculated using a rate of 25% (2024: 25%).

The company contributes towards a number of defined contribution pension schemes on behalf of certain employees, including four directors. The assets of the scheme are held separately from those of the company in independently administered funds. There are no amounts due at the year end.

The shares carry full voting rights but no fixed entitlement to income.

In May 2007 the company entered into arrangements with The Rural Payments Agency in which the company provided a guarantee for the sum of £275,000.

The company has entered into a group security arrangement whereby the company provides a security for bank loans and overdrafts for other group members.

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

The operating leases represent leases of Piercebridge to third parties. The leases are negotiated over terms of 3 to 5 years, the leases for the Office, Quarry and Shop have 12 months break notice clauses, therefore, the amounts receivable have only been disclosed for the period of the break notice clauses.

Dividends totalling £0 (2024 - £0) were paid in the year in respect of shares held by the company's directors.

The remuneration of key management personnel is as follows.

No guarantees have been given by the company to the directors or received by the directors from the company.

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

The company also paid management fees in the sum of £350,000 (2024 : £350,000) to Tynegrain Limited. These amounts are included in the above amounts on an invoice basis.

The following amounts were outstanding at the reporting end date:

Grainco Limited is controlled by Tynegrain Limited, which owns 100% of the company's share capital. Tynegrain Limited is incorporated in England under the Co-operative and Community Benefit Societies Act 2014. The company number is:

Tynegrain Limited            23873R

For the year to 30 June 2025 group accounts have been drawn up for the Tynegrain Limited group.

Copies of the audited accounts can be viewed on the FCA's website.

Following the fire on 26 June 2024, the insurers have accepted liability but the quantum is still to be negotiated.

The information required by FRS 102 paragraph 21.16 has not been disclosed as per FRS 102 paragraph 21.17. An estimate of the loss of earnings amount has not been included in the accounts as an attempt to include any amount relating to this must be prudent and a prudent estimation of the asset would prejudice the on-going negotiations with its insurer.