REGISTERED NUMBER: 10785498 (England and Wales)

R F TOWERS LTD

STRATEGIC REPORT, DIRECTORS' REPORT AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2025

Page

Company Information

1

Strategic Report

2

Directors' Report

3

Independent Auditors' Report

4

Statement of Income and Retained Earnings

8

Balance Sheet

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

13

Directors:

Mrs S M Towers

Mr R F Towers

Mr R C Towers

Registered office:

Dalton House

9 Dalton Square

LANCASTER

LA1 1WD

Business address:

Curwen Hill Farm

Wray

LANCASTER

LA2 8JL

Registered number:

10785498 (England and Wales)

Auditors:

Xeinadin Audit Limited

2 Hilliards Court

Chester Business Park

CHESTER

CH4 9QP

The directors present their strategic report for the year ended 31 May 2025.

The principal activity of the company is farming.

Review of business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

As farmers, the company continues to supply its products to the meat industry.

We consider that our key financial performance indicators of gross profit and operating profit are those that communicate the financial performance and strength of the company as a whole.

We are satisfied that the business has performed satisfactorily and in line with expectations, given the difficult and fluctuating conditions affecting the sector.

Gross profit has increased to £1,923,553 (2024 - £933,288). The operating profit has increased to £981,127 (2024 - £171,103), and profit before tax has increased to £706,400 (2024 - £59,838).

The profit for the year, after taxation, amounted to £536,059 compared to £45,573 in the previous year.

Particulars of dividends paid are detailed in note 9 to the financial statements.

Principal risks and uncertainties

The business environment in which we operate continues to be challenging. The fluctuating costs of feed and overheads are having a direct impact on our operating profits and continue to be a concern.

With this in mind, as Directors we are aware that any plans for the future development of our business may be affected by future unforeseen events that are outside of our control.

On behalf of the board:

Mr R F Towers - Director

8 December 2025

The directors present their report with the financial statements of the company for the year ended 31 May 2025.

Dividends

The total distribution of dividends paid in the year ended 31 May 2025 were £40,000.

Directors

The directors shown below have held office during the whole of the period from 1 June 2024 to the date of this report.

Mrs S M Towers

Mr R F Towers

Mr R C Towers

Statement of directors' responsibilities

The directors are responsible for preparing the Strategic Report, the Directors' 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;

-	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.

Statement as to disclosure of information to auditors

So far as the directors are 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 each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

Mr R F Towers - Director

8 December 2025

Opinion

We have audited the financial statements of R F Towers Ltd (the 'company') for the year ended 31 May 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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 May 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 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.

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 Directors' Report.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

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 an Auditors' 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:

- Enquiry of management and those charged with governance around actual and potential litigation and claims;

- Reviewing minutes of meetings of those charged with governance;

- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;

- Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

Secondly, the Company is subject to many other laws and regulations where the consequence of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the Company's license to operate. We identified the following areas as those most likely to have such an effect: health and safety, data protection laws, anti-bribery, money laundering, employment law and DEFRA regulations recognising the nature of the Company's activities. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' 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 Auditors' 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.

Tim Preece FCCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

2 Hilliards Court

Chester Business Park

CHESTER

CH4 9QP

10 December 2025

Turnover

3

16,444,707

13,040,426

Cost of sales

14,521,154

12,107,138

Gross profit

1,923,553

933,288

Administrative expenses

948,426

762,185

975,127

171,103

Other operating income

6,000

-

Operating profit

5

981,127

171,103

Interest receivable and similar income

1,050

-

982,177

171,103

Interest payable and similar expenses

7

275,777

111,265

Profit before taxation

706,400

59,838

Tax on profit

8

170,341

14,265

Profit for the financial year

536,059

45,573

Retained earnings at beginning of year

1,071,913

1,039,340

Dividends

9

(40,000

)

(13,000

)

Retained earnings at end of year

1,567,972

1,071,913

Fixed assets

Intangible assets

11

-

9,748

Tangible assets

12

4,113,191

4,142,823

4,113,191

4,152,571

Current assets

Stocks

13

3,609,010

2,690,168

Debtors

14

497,303

444,676

4,106,313

3,134,844

Creditors

Amounts falling due within one year

15

2,452,300

1,937,290

Net current assets

1,654,013

1,197,554

Total assets less current liabilities

5,767,204

5,350,125

Creditors

Amounts falling due after more than one year

16

(3,968,552

)

(4,091,899

)

Provisions for liabilities

20

(218,624

)

(175,568

)

Accruals and deferred income

21

(11,956

)

(10,645

)

Net assets

1,568,072

1,072,013

Capital and reserves

Called up share capital

22

100

100

Retained earnings

23

1,567,972

1,071,913

Shareholders' funds

1,568,072

1,072,013

The financial statements were approved by the Board of Directors and authorised for issue on 8 December 2025 and were signed on its behalf by:

Mr R F Towers - Director

Cash flows from operating activities

Cash generated from operations

1

256,466

337,412

Interest paid

(275,777

)

(111,190

)

Interest element of hire purchase payments paid

-

(75

)

Tax paid

1

(35,227

)

Net cash from operating activities

(19,310

)

190,920

Cash flows from investing activities

Purchase of tangible fixed assets

(138,500

)

(3,405,009

)

Sale of intangible fixed assets

6,000

-

Sale of tangible fixed assets

14,716

42,640

Interest received

1,050

-

Net cash from investing activities

(116,734

)

(3,362,369

)

Cash flows from financing activities

New loans in year

-

3,555,078

Loan repayments in year

(97,447

)

(82,063

)

Capital repayments in year

(18,950

)

75

Amount introduced by directors

99,455

582,485

Amount withdrawn by directors

(255,414

)

(695,454

)

Equity dividends paid

(40,000

)

(13,000

)

Net cash from financing activities

(312,356

)

3,347,121

(Decrease)/increase in cash and cash equivalents

(448,400

)

175,672

Cash and cash equivalents at beginning of year

2

(945,957

)

(1,121,629

)

Cash and cash equivalents at end of year

2

(1,394,357

)

(945,957

)

1.	Reconciliation of profit before taxation to cash generated from operations

2025

2024

as restated

£

£

Profit before taxation

706,400

59,838

Depreciation charges

160,564

165,466

Profit on disposal of fixed assets

(3,399

)

(10,966

)

Finance costs

275,777

111,265

Finance income

(1,050

)

-

1,138,292

325,603

Increase in stocks

(918,842

)

(167,039

)

(Increase)/decrease in trade and other debtors

(52,627

)

102,609

Increase in trade and other creditors

89,643

76,239

Cash generated from operations

256,466

337,412

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 May 2025

31/5/25

1/6/24

£

£

Bank overdrafts

(1,394,357

)

(945,957

)

Year ended 31 May 2024

31/5/24

1/6/23

as restated

£

£

Bank overdrafts

(945,957

)

(1,121,629

)

3.	Analysis of changes in net debt

At 1/6/24

Cash flow

At 31/5/25

£

£

£

Net cash

Bank overdrafts

(945,957

)

(448,400

)

(1,394,357

)

(945,957

)

(448,400

)

(1,394,357

)

Debt

Finance leases

(56,700

)

18,950

(37,750

)

Debts falling due within 1 year

(94,271

)

(7,027

)

(101,298

)

Debts falling due after 1 year

(4,054,149

)

104,472

(3,949,677

)

(4,205,120

)

116,395

(4,088,725

)

Total

(5,151,077

)

(332,005

)

(5,483,082

)

1.	Statutory information

R F Towers Ltd 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

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable, for goods provided in the normal course of business, net of discounts, rebates, value added tax and other sales taxes.

Turnover is recognised at a point in time when a performance obligation is satisfied by transferring a good to the customer.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Government grants

The company receives government grants. These grants are recognised at the fair value of the amount received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

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:

2025

2024

as restated

£

£

Sale of goods

16,409,293

13,013,318

Single Farm Payment

35,414

27,108

16,444,707

13,040,426

4.	Employees and directors

2025

2024

as restated

£

£

Wages and salaries

49,533

56,819

Other pension costs

101

-

49,634

56,819

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

2025

2024

as restated

Farm workers

3

2

Directors and management

3

3

6

5

2025

2024

as restated

£

£

Directors' remuneration

31,477

31,252

5.	Operating profit

The operating profit is stated after charging/(crediting):

2025

2024

as restated

£

£

Hire of plant and machinery

190,837

139,248

Other operating leases

41,161

41,161

Depreciation - owned assets

160,563

165,466

Profit on disposal of fixed assets

(3,399

)

(10,966

)

6.	Auditors' remuneration

2025

2024

as restated

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

8,000

-

7.

Interest payable and similar expenses

2025

2024

as restated

£

£

Bank loan interest

275,777

111,190

Hire purchase charges

-

75

275,777

111,265

8.

Taxation

Analysis of the tax charge

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

2025

2024

as restated

£

£

Current tax:

UK corporation tax

127,285

-

Deferred tax

43,056

14,265

Tax on profit

170,341

14,265

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge included in profit and loss

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

2025

2024

as restated

£

£

Profit before tax

706,400

59,838

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

176,600

14,960

Effects of:

Expenses not deductible for tax purposes

78

75

Income not taxable for tax purposes

(7,504

)

-

Chargeable gain on deed of surrender

(1,500

)

-

Depreciation on non-qualifying assets

230

230

Loss on disposal of non-qualifying assets

2,437

-

Proceeds on disposal restricted to cost

-

(1,000

)

Total tax charge

170,341

14,265

9.

Dividends

2025

2024

as restated

£

£

Ordinary shares of 1 each

Interim

40,000

13,000

10.	Prior year adjustment

In the previous year the Directors' loan account creditor was shown in the Balance Sheet with £250,000 due greater than one year because it was understood that the Director had agreed to this. In the current year no formal agreement regarding the repayment terms of the Directors' loan account has been found therefore the loan is shown as payable within one year, in accordance with FRS102. The comparative figure has been restated to also show the whole loan as payable within one year.

11.	Intangible fixed assets

Subsidy

entitlements

£

Cost

At 1 June 2024

9,748

Disposals

(9,748

)

At 31 May 2025

-

Net book value

At 31 May 2025

-

At 31 May 2024

9,748