REGISTERED NUMBER: 00744320 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025

FOR

COTTAGE FARMS (HORSMONDEN) LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

13

DIRECTOR:

C Browning

REGISTERED OFFICE:

Churn Lane

Horsmonden

Tonbridge

Kent

TN12 8HW

REGISTERED NUMBER:

00744320 (England and Wales)

AUDITORS:

BSR Bespoke

Chartered Accountants & Statutory Auditors

Linden House

Linden Close

Tunbridge Wells

Kent

TN4 8HH

The director presents his strategic report for the year ended 31 March 2025.

REVIEW OF BUSINESS

The year ending 31st March 2025 saw an increase in turnover of 3.45% which was due to both the consolidation of the tender won in 2022 and increases in chargeable rate card for the year. Gross profit percentage stood at 28.41% with a net profit figure of 4.22%. The business continues to focus on reducing the cost of sales and administrative expenses. The volume of units through the business remained steady at 4.3m (2024 - 4.35m units).

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk of the business remains the availability and cost of labour. We have increased the number of directly employed staff in order to limit the premium paid for agency, this stood at 77% (2024 65%). Wage cost inflation continues to challenge our profit margin and is a key focus. We continue to invest in staff training, wellbeing and welfare and significant steps have been taken during the year to ensure new staff members are on-boarded in an efficient and valued manner.

Energy costs are significant and are being managed though long term contracts. The energy monitoring and management system is now in place and showing initial benefit to these costs.

DEVELOPMENT AND PERFORMANCE

The director continues to review the business structure, but the core business will be fresh produce service provision.

The company will continue to assess labour saving technology for the whole business, this will require investment and will ultimately allow reduction in operation costs and overheads. We are constantly challenged by the inflationary pressures of labour inflation.

The company has initiated future marketing to enable the business to further widen their customer base, not only in the form of the number of customers but also in the categories of Fresh produce that they handle.

We continue to consider the environmental impact of the whole business, from packaging to renewable energy to waste and have made significant steps in making the business environmentally conscious. This work is ongoing and we work closely with both our suppliers and customers to achieve our joint goals and targets.

KEY PERFORMANCE INDICATORS

The company uses a number of KPI's to monitor performance both internally and externally and this will remain a key part of our business strategy.

Both profit and labour cost percentages are key measures and these are seen as critically important for continued investment.

Investment in new processes and technologies are continually assessed to allow the business to remain efficient and competitive.

ON BEHALF OF THE BOARD:

C Browning - Director

12 December 2025

The director presents his report with the financial statements of the company for the year ended 31 March 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the packing and storing of fresh produce.

DIVIDENDS

The director recommends that no final dividends be paid.

The total distribution of dividends for the year ended 31 March 2025 will be £155,000.

DIRECTOR

C Browning held office during the whole of the period from 1 April 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, BSR Bespoke, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C Browning - Director

12 December 2025

Opinion

We have audited the financial statements of Cottage Farms (Horsmonden) Limited (the 'company') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 Auditors' 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 financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Report of the Director.

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 director's remuneration specified by law are not made; or

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

- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained a general understanding of the company's legal and regulatory framework through enquiry of management concerning their understanding of relevant laws and regulations, the company's policies and procedures regarding compliance, and how they identify, evaluate and account for litigation claims. We also drew on our existing understanding of the company's industry and regulation.

We understand that the company complies with the framework through:

- Outsourcing accounts preparation and tax compliance to external experts.

- Subscribing to relevant updates from external experts, and making changes to internal procedures and controls as necessary.

In the context of the audit we considered those laws and regulations which determine the form and content of the financial statements, which are central to the company's ability to conduct its business and where there is a risk that failure to comply could result in material penalties. We identified the following laws and regulations as being of significance in the context of the company:

- UK taxation law

- UK employment law

- The Companies Act 2006 and FRS 102 in respect of the preparation and presentation of the financial statements

- Food Hygiene and quality control regulations

The senior statutory auditor led a discussion with all members of the engagement team regarding the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. The areas identified in this discussion were:

- Manipulation of the financial statements, especially revenue recognition via the omission of sales invoices, fraudulent journal entries or inappropriate estimates as a result of the inventive the reduce UK corporation tax liabilities.

The procedures we carried out to gain evidence in the above areas included:

- Challenging management regarding assumptions used in the estimates identified above, and comparison to underlying supporting data as appropriate.

- Substantive work on material areas affecting profit.

- Testing journal entries, focusing particularly on postings to unexpected or unusual accounts and those posted by unusual personnel.

Overall, the senior statutory auditor was satisfied that the engagement team collectively had the appropriate competence and capabilities to identify or recognise irregularities.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Rachael Avon FCA CTA (Senior Statutory Auditor)

for and on behalf of BSR Bespoke

Chartered Accountants & Statutory Auditors

Linden House

Linden Close

Tunbridge Wells

Kent

TN4 8HH

12 December 2025

TURNOVER

3

8,927,128

8,629,607

Cost of sales

6,391,349

6,242,326

GROSS PROFIT

2,535,779

2,387,281

Administrative expenses

2,065,471

2,079,791

470,308

307,490

Other operating income

243,570

346,739

OPERATING PROFIT

5

713,878

654,229

Interest payable and similar expenses

6

337,230

216,392

PROFIT BEFORE TAXATION

376,648

437,837

Tax on profit

7

111,213

170,346

PROFIT FOR THE FINANCIAL YEAR

265,435

267,491

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

265,435

267,491

FIXED ASSETS

Tangible assets

9

7,044,810

7,281,071

Investments

10

255

255

7,045,065

7,281,326

CURRENT ASSETS

Stocks

11

138,408

155,229

Debtors

12

1,335,167

918,886

Cash at bank and in hand

22,044

1,082

1,495,619

1,075,197

CREDITORS

Amounts falling due within one year

13

2,845,379

5,756,070

NET CURRENT LIABILITIES

(1,349,760

)

(4,680,873

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,695,305

2,600,453

CREDITORS

Amounts falling due after more than one year

14

(3,261,933

)

(388,729

)

PROVISIONS FOR LIABILITIES

18

(567,492

)

(456,279

)

NET ASSETS

1,865,880

1,755,445

CAPITAL AND RESERVES

Called up share capital

19

30,000

30,000

Revaluation reserve

65,703

65,703

Retained earnings

1,770,177

1,659,742

SHAREHOLDERS' FUNDS

1,865,880

1,755,445

The financial statements were approved by the director and authorised for issue on 12 December 2025 and were signed by:

C Browning - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2023

30,000

1,547,251

65,703

1,642,954

Changes in equity

Dividends

-

(155,000

)

-

(155,000

)

Total comprehensive income

-

267,491

-

267,491

Balance at 31 March 2024

30,000

1,659,742

65,703

1,755,445

Changes in equity

Dividends

-

(155,000

)

-

(155,000

)

Total comprehensive income

-

265,435

-

265,435

Balance at 31 March 2025

30,000

1,770,177

65,703

1,865,880

Cash flows from operating activities

Cash generated from operations

1

389,063

902,353

Debt factoring costs

(129,895

)

(98,064

)

Net cash from operating activities

259,168

804,289

Cash flows from investing activities

Purchase of tangible fixed assets

(127,108

)

(61,584

)

Sale of tangible fixed assets

-

40,084

Net cash from investing activities

(127,108

)

(21,500

)

Cash flows from financing activities

New loans in year

527,794

-

Loan repayments in year

(235,522

)

(431,531

)

Capital repayments on finance leases

(16,118

)

(1,185

)

Amount withdrawn by directors

(5,566

)

(2,890

)

Bank loan and other interest paid

(195,688

)

(117,200

)

Interest paid on finance leases

(11,648

)

(1,128

)

Equity dividends paid

(155,000

)

(155,000

)

Net cash from financing activities

(91,748

)

(708,934

)

Increase in cash and cash equivalents

40,312

73,855

Cash and cash equivalents at beginning of year

2

(857,878

)

(931,733

)

Cash and cash equivalents at end of year

2

(817,566

)

(857,878

)

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.3.25

31.3.24

£

£

Profit before taxation

376,648

437,837

Depreciation charges

360,117

377,630

Loss on disposal of fixed assets

3,251

98,666

Finance costs

337,230

216,392

1,077,246

1,130,525

Decrease/(increase) in stocks

16,821

(7,498

)

(Increase)/decrease in trade and other debtors

(416,281

)

357,912

Decrease in trade and other creditors

(288,723

)

(578,586

)

Cash generated from operations

389,063

902,353

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

22,044

1,082

Bank overdrafts

(839,610

)

(858,960

)

(817,566

)

(857,878

)

Year ended 31 March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

1,082

2,712

Bank overdrafts

(858,960

)

(934,445

)

(857,878

)

(931,733

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.4.24

Cash flow

At 31.3.25

£

£

£

Net cash

Cash at bank and in hand

1,082

20,962

22,044

Bank overdrafts

(858,960

)

19,350

(839,610

)

(857,878

)

40,312

(817,566

)

Debt

Finance leases

(59,054

)

16,118

(42,936

)

Debts falling due within 1 year

(2,800,106

)

2,626,298

(173,808

)

Debts falling due after 1 year

(22,100

)

(2,918,568

)

(2,940,668

)

(2,881,260

)

(276,152

)

(3,157,412

)

Total

(3,739,138

)

(235,840

)

(3,974,978

)

1.	STATUTORY INFORMATION

Cottage Farms (Horsmonden) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Revenue is recognised when it is probable that future economic benefits will flow to the company from the provision of contracts and is measured as the fair value of consideration which the company expects to receive from those transactions.

Revenue from the packaging and warehouse fees are recognised when goods are collected by the customer on the basis that the packaging service for each individual item packaged takes less than one day and the risks and rewards of the packaging products belong to the company until they are collected.

Revenue is recognised net of returns and of trade discounts and is shown exclusive of value added tax.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold land and buildings

-

2% on cost and not provided

Short leasehold

-

10% on cost

Plant and machinery

-

25% on reducing balance, 15% on reducing balance, 10% on reducing balance and 5% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stock is recorded on a first in, first out basis.

Financial instruments

Basic financial instruments are initially recognised at transaction price, 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Grant income

Grants received are recognised using the performance model. The grant income is recognised when the performance related conditions are met and any amounts received in advance of the conditions being met are recognised within deferred income as a liability.

Going concern

The director has made his assessment of whether the Company is a going concern using all available information including management accounts, budgets and forecasts which cover a period of more than 12 months from the date of approval of these financial statements.

At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the director continues to adopt the going concern basis of accounting in preparing the financial statements.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.3.25

31.3.24

£

£

Packaging & warehouse services

8,927,128

8,629,607

8,927,128

8,629,607

4.	EMPLOYEES AND DIRECTORS

31.3.25

31.3.24

£

£

Wages and salaries

3,281,670

2,935,597

Social security costs

305,875

267,272

Other pension costs

109,668

100,043

3,697,213

3,302,912

The average number of employees during the year was as follows:

31.3.25

31.3.24

Operations

104

102

Administrative

8

7

Director

1

1

113

110

31.3.25

31.3.24

£

£

Director's remuneration

14,843

14,920

Director's pension contributions to money purchase schemes

24,363

24,377

5.	OPERATING PROFIT

The operating profit is stated after charging:

31.3.25

31.3.24

£

£

Depreciation - owned assets

348,823

362,571

Depreciation - assets on hire purchase contracts

11,295

15,060

Loss on disposal of fixed assets

3,251

98,666

Auditors' remuneration

18,000

15,000

Other non- audit services

7,200

7,108

Payments made under operating leases

133,384

132,847

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.3.25

31.3.24

£

£

Bank interest & charges

129,895

98,064

Bank loan interest

163,011

90,200

Director's loan account interest

27,000

27,000

Other interest

5,676

-

Hire purchase

11,648

1,128

337,230

216,392

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

31.3.25

31.3.24

£

£

Deferred tax

111,213

170,346

Tax on profit

111,213

170,346

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.3.25

31.3.24

£

£

Profit before tax

376,648

437,837

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2024 - 25%)

94,162

109,459

Effects of:

Expenses not deductible for tax purposes

32,460

41,314

Income not taxable for tax purposes

(34,307

)

(58,483

)

Difference in deferred tax rate used

18,898

78,056

Total tax charge

111,213

170,346

8.

DIVIDENDS

31.3.25

31.3.24

£

£

Ordinary A shares of £1 each

Interim

80,000

80,000

Ordinary B shares of £1 each

Interim

75,000

75,000

155,000

155,000

During the year 1 (2024: 1) director was paid dividends totalling £80,000 (2024: £80,000).