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

The results of the company for the year, as set out on page 14, show a profit on ordinary activities before tax of £3,521,623 (2024: (£1,100,669)).

In the period post year end we welcomed a new family appointment of William Hunter as Managing Director. Having worked across all areas of the business his rounded knowledge is invaluable in leading the business forward. In addition managements continual review of its farming practices has included introducing an additional Farm Director into the business to support this.

The reported operating profit for the year in continuing challenging conditions reflects the hard work undertaken by the management team in working on mitigating factors to tackle the company’s exposure to weather conditions.

The weather has continued to impact yields for the third year running. The UK experienced the warmest spring on record along with the wettest September and Autumn in some counties since 1836 (ref: Met office data). With our crops being field stored the weather extremes the UK has experienced impacted on packable yield.

Considering the weather extremes the business aimed to improve its resilience by organising imports from Europe. Due to floods and storms in Europe germination was heavily impacted which resulted in yield losses from our import partners. Further work is taking place to improve the resilience of our import partners crops by the sharing of best practice and growing techniques with the aim to mitigate potential issues for the forthcoming season.

As per last year we did face challenges of higher employee related costs with legislative changes i.e. National Minimum Wage and Employer National Insurance which also impacted our external contractors pricing, growing crop costs particularly straw due to availability and motor related costs, reflective of pressures seen in the wider economy. Strategic action to facilitate the impact of these cost pressures is evident in continued investment in automated processes, removal of a third shift on the product line and subsequent team restructures.

To improve the sustainability practices of the company there has been significant investment in new water intake tanks to reduce water consumption down by 85%. Alongside of this investment the company has also invested in a water treatment facility to improve the treatment of processing water. This investment was predominantly funded through hire purchase in the new financial year.

Gross profit margins have increased from 23.96% to 28.61%.

The company has seen programmed volume increases with a key account which has allowed the business to streamline the operation further and to find processing efficiencies across the operation. Further programmed increases are planned for futures years with then potential new markets to be explored.

The weather for the first half of this new financial year has continued to be challenging with extreme dry weather being experienced. This has meant investments into irrigation infrastructure and equipment.

Capital investments in the new financial year will continue to help improve efficiencies, grow revenue and reduce risk. Investments to aid automation is key both in production and on growing crop activities.

We continue to work in partnership with our customers to mutually gain a better understanding of demand which will help with of our component costs, pricing and profit profile, allowing a competitive strategy to be delivered to the market. Generating new business where possible and increasing retention levels while navigating the pressure on prices.

After reporting challenges over the last few years, through factors largely outside the business’s control the company is pleased to report a profitable result. The balance sheet continues to strengthen with net assets of £21.99m due to the company’s profitability.

The new financial year ending June 2026 is an exciting one for the business as we continue our journey of significant customer expansion which will continue into the next financial year. The company has reported a strong start to the financial year albeit facing challenges in respect of irrigation and straw costs with unprecedented dry weather.

The Company will keep pushing to ensure a competitive edge over its competitors as business policy is to invest. This is highlighted by our additions in the year, totalling over £3m, with heavy investment in production, farming equipment and IT infrastructure. Forecast Investment in the business for the current financial year has focus on farm operations and looking into future years phase 2 of the extension of the current pack house facility.

Environmental Statement

The company is conscious of complying with legislation surrounding environmental matters and monitors this closely.

In this financial year the company has commenced work with Optimised Energy to put in place validated Science Based Targets. This work has meant the calculation of the company’s carbon footprint with future Absolute Reduction Targets being set for Scope 1,2 & 3 - inclusive of FLAG targets (Forest, Land and Agriculture) against a base year of 2023.

In line with the company’s success in adopting new innovative sustainability practices the company received the accolade of becoming the 41st LEAF (Linking the Environment and Farming) Demonstration Farm. This recognition as a LEAF Demonstration Farm reflects the business’ long-standing commitment to innovative, climate positive approaches across its entire operation – from growing and packing to transportation and delivery.

The company has also facilitated a monthly ‘Future Farming Meeting’ which will assist in driving innovation and sustainability projects within the business.

Strategy

The company's success is dependent on the proper selection, pricing and ongoing management of the risks it accepts. We believe it is important to retain a diversified portfolio of products and customers in order to achieve maximum profitability in this highly competitive marketplace. To achieve this, we have continued to consolidate our position with existing customers, and we have set objectives to our account managers to widen our customer base and have a proactive approach to new product development. We have continued to focus on and improve the alignment of our transport logistics planning with our product delivery destinations in order to maximise revenue from our haulage contracting.

We are continually looking to improve efficiency in all areas of our operations through cost reduction and plant innovation and improvement whilst ensuring customer service remains a top priority.

The directors understand the business and the evolving environment in which it operates. The Board conducts board meetings to assess and monitor the progress against its strategic decisions. Factors which are continually being considered against strategy include the promotion of the company, its stakeholders, employees and the strengthening of supplier and customer relationships.

The company has four values which have played a vital role in the business history. These values are Team Player, Hardworking, Committed and Communication.

These values remain essential for the personal and professional development of all of our stakeholders and for the continued success and growth of Huntapac Produce, forming a fundamental part of our culture. Our values not only focus on providing a high quality product but to do so by acting with integrity and honesty, whilst always making decisions based on the long-term interest of our customers, company and employees.

This statement sets out how the directors of the company have fulfilled their duty to comply with the requirements of Section 172 of the Companies Act 2006 and explains how the directors have had regard to broader stakeholder interests when making decisions to promote the success of the business.

Our Employees

The directors recognise that employees are fundamental and core to our business and delivery of our strategic ambitions. Our success depends on attracting, retaining, and motivating employees. We ensure that we remain a responsible employer, from pay and benefits to our health, safety, and workplace environment. The directors are accessible most days to employees and factor the implications of decisions on employees and the wider workforce, where relevant and feasible.

In a strive for personal development and career progression, employees are offered both internal and external training programmes/courses. These courses range from areas such as health and safety and modern slavery awareness as well as more bespoke/tailored courses.

The company runs regular employee engagement surveys to understand what matters to our people. We also hold monthly CVC (Colleague Voice Committee) meetings in which employee representatives are encouraged to meet with senior management to discuss any issues or suggestions on how the business can be improved.

Regular employee events around special holidays across the year, raffles and health awareness programs are well received by the staff. We also hold events such as five a side football tournament, which provides an opportunity for our employees to meet and communicate outside of a working environment.

The company places considerable importance on communication with employees. The business provides quarterly updates on company performance presented by the board of directors as well as communication throughout the year giving transparency on company direction, performance, investments and national updates.

Delivering our business strategy requires strong mutually beneficial relationships with customers. The Board receives regular reporting on customer outcomes and customer related strategic initiatives throughout the year. The Board closely monitors customer metrics and engages with the management team to understand the issues if our performance does not meet our customers' expectations. The board continues to monitor and review changes to our IT infrastructure which will allow us to simplify and support service delivery to our customers.

The directors maintain oversight of the management of our most important suppliers and regularly review their performance. Our established supplier standards set out ways of working and the high standards we expect of our suppliers. For example, in relation to our obligations under the anti-modern slavery law. The Board reviews the actions we have taken to prevent modern slavery and associated practices in any part of our supply chain and approves our Modern Slavery Statement each year.

The company is committed to protecting the environment by complying with all relevant legislation, compliance obligations and the needs of interested parties in relation to the context of the company.

We recognise the importance of contributing to our communities and regularly provide donations to local causes.

We partner with local charities and arrange regular fund-raising events to support these charities.

The Board plays a constructive role in tackling issues through both engagement and investment. It is important that for the long-term future of the business that we protect and enhance the environment. We are committed to reducing our carbon footprint and contribute to climate change where economically viable.

On behalf of the board

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

The principal activity of the company is that of farming and packing of root vegetables. The company also provides refrigerated and ambient haulage contracting services.

The results for the year are set out on page 14.

No ordinary dividends were paid. 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:

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The directors regularly meet with employees to discuss all matters of company importance. Additional detail is provided in the Section 172 statement.

Champion Accountants LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

The company complies with the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 and the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 and our approach to reporting is based on the GHG Protocol Corporate Accounting and Reporting Standard in line with guidance on SECR.

Our reporting period is for the financial year 1 July 2024 to 30 June 2025, reporting all material GHG emissions using "Tonnes of CO2 equivalent" (tCO2e) as the unit of measurement and reporting energy use in kWh. We have included the energy and emissions for the buildings owned and operated (i.e. those within the financial control boundary).

The results are presented as Location based emissions. Location based are mandatory and reflect the average emissions intensity of grid supplies (using grid average emissions factors) and Market based are voluntary and reflect emissions from energy where companies have a contractual agreement to procure green energy.

The methodology used to calculate total energy consumption and carbon emissions has been invoice data for the financial years stated. Where data was not available, estimates have been calculated using historical profiles and details kept in the client's evidence pack.

Energy and fuel consumption has been converted to carbon (tCO2e) using DEFRA published conversion factors.

New DEFRA conversion tables are issued in June and cover January to December, our financial year covers two data sets, and to maintain consistency has used the annual published factors covering 2024.

In the previous year the chosen intensity measurement ratio was total gross emissions in metric tonnes CO2e per processed tonnes, previously reported intensity for previous year 0.158.

We have changed the intensity metric in the current year to total gross emissions in metric tonnes CO2e per sales tonnes,which includes all our sales, the most appropriate intensity metric in line with the primary drivers of energy consumption.

In our ongoing commitment to energy efficiency, we have taken the following actions;

• Production Facility Investment - The business invested in a new intake wash installation at the end of the financial year. This resulted in a reduction in submersible pumps required and is projected to save over 60,000 kWh per annum.

• Solar Panels - This financial year is the first full year utilising self-generated solar electricity contributing to providing power for the Packhouse including heat recovery units which previously ran on natural gas consumption.

• Low Carbon Fertilisers (LCFs) - It is now standard practice on the Yorkshire farms to apply R-Leaf for all phosphate and potash requirements. In the financial year this has now been rolled out to Shropshire farms. Currently in grant application, which will enable an extended trial of this product.

• Fridge Units - Continue replacement process on fridge units with plans to decommission a further 20. The new units produce savings on fuel consumption at 1.5-1.6 litres/hr per unit.

• Energy Usage - Surveys undertaken on out of hours usage in production facility and zonal energy monitoring is under trial with the objective of identifying possible areas for energy saving.

• Company Cars - The company promotes procurement of full electric company cars for staff where practical. Several electric charging points are fitted at head office facilitating charging on site.

The reported emissions data for 2024 was reviewed and updated when preparing the report for 2025. The reason for the differences related to the timing of invoices and the usage of estimates on some energy invoices. These have now been updated to actual readings. The table below outlines these differences;

In the previous year the chosen intensity measurement ratio was total gross emissions in metric tonnes CO2e per processed tonnes. We have changed the intensity metric in the current year to total gross emissions in metric tonnes CO2e per sales tonnes,which includes all our sales.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the Directors' report. It has done so in respect of financial risk management, future developments information and stakeholder engagement statement (incorporated within the section 172 statement).

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

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.

We have audited the financial statements of Huntapac Produce Limited (the 'company') for the year ended 30 June 2025 which comprise 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

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

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

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006, compliance with UK tax regulations and compliance with health and safety laws.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries in overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to debt recoverability, stock provisions and depreciation methods.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations.

- Documenting and verifying all significant related party balances and transactions.

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.

Huntapac Produce Limited is a private company limited by shares incorporated in England and Wales. The registered office is 293 Blackgate Lane, Holmes, Tarleton, Preston, Lancashire, PR4 6JJ.

The company's principal activities and nature of its operations are disclosed in the Strategic Report.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include certain fixed assets and investment properties at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exception in section 402 of the Companies Act 2006 from the requirement to prepare consolidated financial statements. Consequently, these financial statements present the financial position and financial performance of the company as a single entity.

In assessing the ability of the company to continue as a going concern for 12 months from the date of signing of the financial statements, the directors have considered a number of scenarios which have involved a degree of judgment based upon experience of the sector, forecast activity and the funding available to ensure that the financial statements can be prepared on a going concern basis. The directors have reached the conclusion that the going concern basis of preparation is still appropriate.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

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.

Revenue in respect of haulage services is recognised at the point at which the service is delivered.

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Assets in the course of construction are not depreciated.

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.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

The company’s operations include activities of an agricultural nature and are therefore subject to the recognition, measurement and disclosure requirements of FRS 102 Section 34 – Specialised Activities.

Biological assets are carried in the balance sheet under Growing Crops at cost less any accumulated impairment. Short-term biological assets comprise crops that are planted, grown and harvested within a period of less than twelve months. These crops leave no residual asset capable of generating future economic benefits, and accordingly no depreciation is charged.

The company’s biological assets relate solely to the current growing season. The directors assess these assets for impairment during the year and at each reporting date, based on physical inspection of the crops and their best estimate of net realisable value, with reference to quoted market or contract prices where available.

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

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

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

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

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

Financial 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.

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 transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The 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.

For investment properties measured at fair value, deferred tax is measured using the tax rates and allowances that apply to the sale of the asset or property.

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

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

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

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

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

The Government grant income received in previous years related partly to the assistance to purchase a fixed asset. The income has been deferred in relation to the grant and continues to be released over the life of the grant as the performance obligations are satisfied.

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

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

In categorising leases as finance leases or operating leases, management makes judgements as to whether significant risks and rewards of ownership have transferred to the company as a lessee.

Included within the deferred tax provision is a deferred tax asset of £1,034,126 in relation to losses carried forward. Based on the performance of the company post year end, management expect to utilise the losses in the foreseeable future hence the asset has been recognised in the financial statements.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Under FRS102, investment properties are carried at fair value. At 30 June 2024, the directors assessed the fair value of investment property by using independent valuers and by reference to purchase prices. The directors have also considered the valuation of a piece of land included in Investment Property. The land, which is carried at £2.1m, is held for rental income and has been valued at market value.

The directors do not consider this value to be materially difference from the value at 30 June 2025.

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 10 (2024 - 8).

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

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

Freehold land and buildings include £915,983 (2024: £865,983) in respect of land which has not been depreciated.

Investment property comprises a mixture of residential and commercial properties rented to third parties.

Included within investment property is £7,845,431 (2024: £8,946,088) relating to properties whose fair value has been arrived at by a firm of independent valuers not connected with the group. The valuations of the properties were provided by Avison Young on 21 April 2023, and Fritton Estates on 20 September 2022 and 25 May 2023. In the opinion of the directors there is no change in this value for the year ended 30 June 2025.

During the financial year, land and buildings previously classified as investment property were transferred to freehold property within tangible fixed assets.

The reclassification was made following a change in the use of the assets. The land and warehouse, previously held for investment purposes, are now being used in the trade of the business.

In accordance with FRS 102 Section 16 – Investment Property, the property was transferred at its fair value at the date of change in use. The fair value at the date of transfer was £1,100,657, which has been recognised as the deemed cost of the asset within Freehold Property.

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

Invoice discounting advance of £209,252 (2024: £2,556,168) are secured on the trade debtors. Obligations under finance leases are secured on certain vehicles and plant and equipment.

Amounts owed to group undertakings are interest free and repayable on demand.

Obligations under finance leases are secured on certain vehicles and plant and equipment.

Included within bank loans is a loan of £990,000 from Lloyds Bank Plc, which is secured by specific charges over certain investment properties of the company. This loan is repayable in quarterly instalments, bears interest at 7.16% per annum, and is due to be repaid in full by 23 August 2028.

Bank loans also include a loan of £446,897 from Lombard Asset Finance, which is repayable in monthly instalments, bears interest at 7.98% per annum, and is due to be repaid in full by 20 February 2030.

Invoice Discounting Facilities

The company operates invoice discounting facilities to assist with short-term working capital requirements. The principal facility is with Lloyds Bank Plc and is secured by a fixed and floating charge over the company’s assets, which includes a negative pledge. This facility operates on a recourse basis, whereby the company retains the credit risk on the underlying trade receivables. Accordingly, the related trade debtors remain within trade receivables on the balance sheet, and the corresponding liability is included within creditors: amounts falling due within one year.

During the year, the company also entered into a non-recourse invoice discounting arrangement with a new provider. Under this arrangement, certain trade receivables are sold without recourse, resulting in derecognition of those receivables from the balance sheet, as substantially all risks and rewards of ownership have been transferred.

The overall invoice discounting liability has reduced compared with the prior year, primarily due to this change in financing structure, rather than a decrease in trading volumes. Interest and related charges on both facilities are recognised as finance costs in the profit and loss account as incurred.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

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

The deferred tax liability set out above is expected to reverse in line with the useful life of the assets and relates to accelerated capital allowances that are expected to mature within the same period.

The other timing differences are expected to reverse within12 months and relate to disallowable provisions.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Included within creditors at the year end are outstanding pension contributions of £137,636 (2024: £104,077).

The shares have full voting, dividend and capital distribution rights.

Profit and loss accounts represents cumulative profit and losses net of distribution to owners.

On 9 December 2024 the company granted a charge in favour of Lloyds Bank PLC. The charge contains a fixed and floating charge over all the property and undertaking of the company and contains a negative pledge.

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

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

Amounts contracted for but not provided in the financial statements:

Included within other debtors is an amount of £18,700 (2024: £47,024) owed by the directors of the company. Movements in the year relate to payments made on behalf of directors, transfers to the company, expenses reclaimed and additional loans.

Amounts owed by directors include a loan of £106,235 (2024: £119,311) which is subject to interest of 2.25% per annum and is repayable in instalments by April 2035 and a loan of £38,397 (2024: £nil) which is subject to interest of 2.25% per annum and is repayable by August 2026. The remaining balances are interest free and repayable on demand.

Included within other debtors is an amount of £14,187 (2024: £20,662) owed from companies connected via common directorship.

During the year, rent was charged of £4,920 (2024: £8,200) to the directors of the company.

The shares of the company are held by two settlements of which the trustees at 30 June 2025 were the estate of the late Mrs J Hunter, Mr W W Hunter and Mr J C Hunter.