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Registration number: 02765898

Keyo Agricultural Services Ltd

Annual Report and Financial Statements

for the Year Ended 31 March 2025

 

Keyo Agricultural Services Ltd

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14 to 28

 

Keyo Agricultural Services Ltd

Company Information

Directors

G Baugh

B G Baugh

J M Van Den Bos

C D W Ramskill

D Y Croft

Company secretary

D Y Croft

Registered office

Ancholme Business Park
Europa Way, Atherton Way
Brigg
North Lincolnshire
DN20 8AR

Auditors

Hawsons Chartered Accountants
5 Sidings Court
White Rose Way
Doncaster
South Yorkshire
DN4 5NU

 

Keyo Agricultural Services Ltd

Strategic Report for the Year Ended 31 March 2025

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

Principal activity

The principal activity of the company is services to the poultry industry.

Fair review of the business

Keyo Agricultural Services Ltd continued to operate as a key provider of specialist services to the poultry industry during the year ended 31 March 2025. The company’s activities include poultry handling, transportation, and related agricultural services.

Trading conditions during the year were challenging, reflecting a combination of increased costs, regulatory pressures, and ongoing sector-specific challenges such as avian influenza outbreaks and labour shortages. Despite this, the company maintained its core service provision and upheld strong relationships with its customer base.

Revenue levels remained broadly stable compared with the prior year, with efficiency initiatives helping to offset cost pressures. The company invested in operational improvements to support service quality, compliance, and sustainability, achieving ISO 45001(H&S) and 14001(environmental) later in the year.

Our strategy moving forward is centred on key pillars: efficiencies, innovations, compliance, training. We are committed to investing in technology to drive efficiency and customer satisfaction.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2025

2024

Turnover

£'000

27,845

25,629

Operating profit

£'000

2,725

2,304

Net assets

£'000

5,769

4,299

Number of employees

No.

92

122

Principal risks and uncertainties

The company faces several risks and uncertainties, including:

• Disease Outbreaks: The poultry industry continues to be significantly impacted by avian influenza and other livestock health risks, which can disrupt production volumes and demand for services.

• Regulatory Environment: Increasing regulation around animal welfare specific to bird collection, biosecurity, and environmental practices poses compliance and operational risks.

• Cost Pressures: Rising fuel, energy, and labour costs remain a challenge to profitability.

• Labour Availability: Recruiting and retaining skilled staff is a continuing risk given industry-wide shortages.

 

Keyo Agricultural Services Ltd

Strategic Report for the Year Ended 31 March 2025 (continued)

Key Achievements

• Maintained continuity of service despite significant industry disruption from disease-related movement restrictions.

• Strengthened compliance and welfare procedures, reinforcing the company’s reputation for high standards in poultry handling and transport.

• Invested in upgrading fleet and equipment to improve efficiency, reliability, and environmental performance.

• Enhanced staff training programmes, supporting employee retention and welfare.

• Preserved strong relationships with key clients through responsive service delivery and flexible solutions.

Future Plans

• Regulatory and Operational Challenges: Large investment required over the next 5 years in Automatic Handling Machines to meet welfare legislation requirements.

• Workforce Development: Expanding training and welfare initiatives to attract and retain staff.

• IT: Investment on a bespoke logistics programme to cut overheads, and repetitive non-essential staff jobs.

• Sustainability: Exploring further measures to reduce carbon footprint and align with customers’ environmental priorities.

• Client Partnerships: Deepening long-term partnerships with major poultry producers by offering value-added services and tailored solutions to challenges they want to offload.

Challenges

The company expects ongoing challenges from:

• The uncertain impact of automatic machines for collection

• Continued pressure on margins due to rising costs in fuel, insurance, compliance, forklifts and sub-contractors.

• Labour shortages across the agricultural sector.

Looking Ahead

Despite these challenges, Keyo Agricultural Services Ltd is well-positioned to continue serving the poultry industry as a trusted and resilient partner. With strong industry expertise, long-standing customer relationships, and a commitment to compliance and sustainability, the business aims to remain adaptable to evolving market conditions.

The directors remain confident that, through ongoing investment in people, equipment, and processes, the company can sustain its position within the poultry services sector and deliver long-term value for its stakeholders.
 

 

Keyo Agricultural Services Ltd

Strategic Report for the Year Ended 31 March 2025 (continued)

Key Achievements

• Maintained continuity of service despite significant industry disruption from disease-related movement restrictions.

• Strengthened compliance and welfare procedures, reinforcing the company’s reputation for high standards in poultry handling and transport.

• Invested in upgrading fleet and equipment to improve efficiency, reliability, and environmental performance.

• Enhanced staff training programmes, supporting employee retention and welfare.

• Preserved strong relationships with key clients through responsive service delivery and flexible solutions.

Future Plans

• Regulatory and Operational Challenges: Large investment required over the next 5 years in Automatic Handling Machines to meet welfare legislation requirements.

• Workforce Development: Expanding training and welfare initiatives to attract and retain staff.

• IT: Investment on a bespoke logistics programme to cut overheads, and repetitive non-essential staff jobs.

• Sustainability: Exploring further measures to reduce carbon footprint and align with customers’ environmental priorities.

• Client Partnerships: Deepening long-term partnerships with major poultry producers by offering value-added services and tailored solutions to challenges they want to offload.

Challenges

The company expects ongoing challenges from:

• The uncertain impact of automatic machines for collection

• Continued pressure on margins due to rising costs in fuel, insurance, compliance, forklifts and sub-contractors.

• Labour shortages across the agricultural sector.

Looking Ahead

Despite these challenges, Keyo Agricultural Services Ltd is well-positioned to continue serving the poultry industry as a trusted and resilient partner. With strong industry expertise, long-standing customer relationships, and a commitment to compliance and sustainability, the business aims to remain adaptable to evolving market conditions.

The directors remain confident that, through ongoing investment in people, equipment, and processes, the company can sustain its position within the poultry services sector and deliver long-term value for its stakeholders.
 

Approved and authorised by the Board on 18 December 2025 and signed on its behalf by:
 

.........................................
G Baugh
Director

 

Keyo Agricultural Services Ltd

Directors' Report for the Year Ended 31 March 2025

The directors present their report and the financial statements for the year ended 31 March 2025.

Directors of the company

The directors who held office during the year were as follows:

G Baugh

B G Baugh (appointed 10 October 2024)

J M Van Den Bos (appointed 10 October 2024)

C D W Ramskill (appointed 10 October 2024)

D Y Croft - Company secretary and director (appointed 10 October 2024)

Information included in the Strategic Report

Detailed information in respect of principal activities, future developments, review of business performance, principle risks and uncertainties and KPI's can be found in the strategic report and form part of this report by cross-reference.

Results and dividend

The results for the company are set out in the financial statements.

The directors do not recommend the payment of a final dividend.

Disclosure of information to the auditors

Each director of the company who held office at the date of the approval of this Annual Report, as set out above, confirms that:

• so far as they are aware, there is no relevant audit information (information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and

• they have taken all the steps they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Reappointment of auditors

The auditors Hawsons Chartered Accountants are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the Board on 18 December 2025 and signed on its behalf by:
 

.........................................
G Baugh
Director

 

Keyo Agricultural Services Ltd

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom 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.

 

Keyo Agricultural Services Ltd

Independent Auditor's Report to the Members of Keyo Agricultural Services Ltd

Opinion

We have audited the financial statements of Keyo Agricultural Services Ltd (the 'company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

 

Keyo Agricultural Services Ltd

Independent Auditor's Report to the Members of Keyo Agricultural Services Ltd (continued)

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Keyo Agricultural Services Ltd

Independent Auditor's Report to the Members of Keyo Agricultural Services Ltd (continued)

The company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the company and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102, Companies Act 2006 and Health and Safety regulations. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries to improve the company’s result for the period, and management bias in key accounting estimates.

Audit procedures performed by the engagement team included:

Discussions with management and those responsible for legal compliance procedures within the company to obtain an understanding of the legal and regulatory framework applicable to the company and how the company complies with that framework, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

Reviewing minutes of Board meetings;

Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations;

Challenging assumptions and judgements made by management in their significant accounting estimates;

Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management.

There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Keyo Agricultural Services Ltd

Independent Auditor's Report to the Members of Keyo Agricultural Services Ltd (continued)

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.

......................................
Daniel Wood (Senior Statutory Auditor)
For and on behalf of Hawsons Chartered Accountants, Statutory Auditor

5 Sidings Court
White Rose Way
Doncaster
South Yorkshire
DN4 5NU

22 December 2025

 

Keyo Agricultural Services Ltd

Statement of Comprehensive Income for the Year Ended 31 March 2025

Note

2025
 £

2024
 £

Turnover

2

27,844,808

25,629,044

Cost of sales

 

(15,501,796)

(13,286,054)

Gross profit

 

12,343,012

12,342,990

Administrative expenses

 

(9,618,499)

(10,039,072)

Operating profit

 

2,724,513

2,303,918

Other interest receivable and similar income

4

21,599

4,037

Interest payable and similar charges

5

(380,112)

(203,346)

Profit before tax

 

2,366,000

2,104,609

Taxation

9

(596,501)

(555,736)

Profit for the financial year

 

1,769,499

1,548,873

Total comprehensive income for the year

 

1,769,499

1,548,873

The above results were derived from continuing operations.

 

Keyo Agricultural Services Ltd

(Registration number: 02765898)

Balance Sheet as at 31 March 2025

Note

2025
£

2024
£

Fixed assets

 

Tangible assets

10

4,184,177

4,166,874

Current assets

 

Stocks

11

96,612

82,376

Debtors

12

8,926,790

8,395,250

Cash at bank and in hand

13

1,118,135

952,989

 

10,141,537

9,430,615

Creditors: Amounts falling due within one year

14

(4,135,460)

(4,507,449)

Net current assets

 

6,006,077

4,923,166

Total assets less current liabilities

 

10,190,254

9,090,040

Creditors: Amounts falling due after more than one year

14

(3,758,547)

(4,246,532)

Provisions for liabilities

15

(662,703)

(544,003)

Net assets

 

5,769,004

4,299,505

Capital and reserves

 

Called up share capital

1,000

1,000

Retained earnings

5,768,004

4,298,505

Shareholders' funds

 

5,769,004

4,299,505

These financial statements were approved and authorised by the Board on 18 December 2025 and signed on its behalf by:
 

.........................................
G Baugh
Director

 

Keyo Agricultural Services Ltd

Statement of Changes in Equity for the Year Ended 31 March 2025

Share capital
£

Retained earnings
£

Total
£

At 1 April 2024

1,000

4,298,505

4,299,505

Profit for the year

-

1,769,499

1,769,499

Dividends

-

(300,000)

(300,000)

At 31 March 2025

1,000

5,768,004

5,769,004

Share capital
£

Retained earnings
£

Total
£

At 1 April 2023

1,000

3,609,632

3,610,632

Profit for the year

-

1,548,873

1,548,873

Dividends

-

(860,000)

(860,000)

At 31 March 2024

1,000

4,298,505

4,299,505

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025

1

Accounting policies

Statutory information

Keyo Agricultural Services Ltd is a private company, limited by shares, domiciled in England and Wales, company number 02765898. The registered office is at Ancholme Business Park, Europa Way, Atherton Way, Brigg, DN20 8AR.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value. The presentation currency is United Kingdom pounds sterling, which is the functional currency of the company. The financial statements are those of an individual entity.

Summary of disclosure exemptions

The company is a qualifying entity for the purposes of Financial Reporting Standard 102 and therefore has taken advantage of the disclosure exemption available in Financial Reporting Standard 102 not to produce a cash flow statement..

Related party exemption

The company has taken advantage of the exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland', not to disclose related party transactions with other wholly owned members of the group and any parent undertaking.

Group accounts not prepared

The financial statements contain information about Keyo Agricultural Services Ltd as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Demeter (Brigg) Ltd, Europa Way, Ancholme Business Park, Brigg, North Lincolnshire, DN20 8AR.

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

1

Accounting policies (continued)

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

The company has entered into leases as a lessee to obtain the use of property, plant and equipment. The classification of such leases as operating or finance lease requires the company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. Turnover is recognised when the service has been provided.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in statement of comprehensive income, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

1

Accounting policies (continued)

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Improvements to property

20% straight line

Van and lorries

25% straight line

Motor vehicles

25% straight line

Office equipment

20% straight line

Computer equipment

25% straight line

Plant and machinery

16% to 25% straight line

Stocks

Stock comprises fuel stock and is valued at cost.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Statement of Comprehensive Income over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Trust

The company previously created a trust whose beneficiaries include employees of the company and their dependents. Assets held under this trust are controlled by trustees who act independently and entierly at their own discretion.

Where assets were held in the trust and these were considered by the company to be in respect of services already provided by employees to the company, the company accounted for these assets of the trust when payment was made to the trust. The value transferred was charged in the company's profit and loss account for the year to which it relates. This trust has now been closed.

Grants receivable

Grants received in respect of revenue expenditure are credited to the Statement of Comprehensive Income in the year which the relevant expenditure is incurred.

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

1

Accounting policies (continued)

Leases

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Statement of Comprehensive Income and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

1

Accounting policies (continued)

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the statement of comprehensive income.

 Recognition and measurement
Financial instruments are recognised at fair value.

 Impairment
Financial instruments are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when 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 of the investment have been affected.

2

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2025
£

2024
£

Sale of goods

27,637,896

25,220,887

Other revenue

206,912

408,157

27,844,808

25,629,044

The turnover was all achieved in the UK.

3

Operating profit

Arrived at after charging/(crediting)

2025
£

2024
£

Depreciation expense

1,786,966

1,731,919

Profit on disposal of property, plant and equipment

(42,244)

(285,761)

4

Other interest receivable and similar income

2025
£

2024
£

Other finance income

21,599

4,037

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

5

Interest payable and similar expenses

2025
£

2024
£

Interest on bank overdrafts and borrowings

123,285

109,272

Interest on obligations under finance leases and hire purchase contracts

218,073

94,074

Interest expense on other finance liabilities

38,754

-

380,112

203,346

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2025
£

2024
£

Wages and salaries

4,048,276

4,804,959

Social security costs

446,302

480,099

Pension costs, defined contribution scheme

208,943

175,606

4,703,521

5,460,664

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2025
No.

2024
No.

Production

60

96

Administration and support

27

24

Other departments

5

2

92

122

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2025
£

2024
£

Remuneration

739,364

31,957

Contributions paid to money purchase schemes

75,582

-

814,946

31,957

During the year the number of directors who were receiving benefits and share incentives was as follows:

2025
No.

2024
No.

Accruing benefits under money purchase pension scheme

5

2

In respect of the highest paid director:

2025
£

2024
£

Remuneration

166,265

31,957

Company contributions to money purchase pension schemes

15,660

-

8

Auditors' remuneration

2025
£

2024
£

Audit of the financial statements

15,180

17,500


 

9

Taxation

Tax charged/(credited) in the profit and loss account

2025
£

2024
£

Current taxation

UK corporation tax

477,801

244,992

Deferred taxation

Arising from origination and reversal of timing differences

118,700

310,744

Tax expense in the income statement

596,501

555,736

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

9

Taxation (continued)

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).

The differences are reconciled below:

2025
£

2024
£

Profit before tax

2,366,000

2,104,609

Corporation tax at standard rate

591,500

526,152

Effect of expense not deductible in determining taxable profit (tax loss)

590

4,848

Tax increase from other tax effects

27,512

43,158

Effect of revenue expenditure treated as capital

-

(18,422)

Tax decrease arising from group relief

(23,101)

-

Total tax charge

596,501

555,736

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

10

Tangible assets

Improvements to property
£

Office equipment
£

Plant and machinery
£

Computer equipment
£

Motor vehicles
 £

Vans and lorries
£

Total
£

Cost

At 1 April 2024

1,161,110

476,918

7,430,948

125,674

162,413

4,097,636

13,454,699

Additions

384,979

187,065

222,981

9,032

66,834

1,034,633

1,905,524

Disposals

-

-

-

-

-

(892,583)

(892,583)

At 31 March 2025

1,546,089

663,983

7,653,929

134,706

229,247

4,239,686

14,467,640

Depreciation

At 1 April 2024

219,519

184,937

5,980,649

110,452

116,807

2,675,461

9,287,825

Charge for the year

238,928

98,728

758,249

8,538

22,436

660,087

1,786,966

Eliminated on disposal

-

-

-

-

-

(791,328)

(791,328)

At 31 March 2025

458,447

283,665

6,738,898

118,990

139,243

2,544,220

10,283,463

Carrying amount

At 31 March 2025

1,087,642

380,318

915,031

15,716

90,004

1,695,466

4,184,177

At 31 March 2024

941,591

291,981

1,450,299

15,222

45,606

1,422,175

4,166,874

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

10

Tangible assets (continued)

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2025
£

2024
£

Motor vehicles

76,567

45,606

Vans and lorries

1,687,761

1,404,537

Plant and machinery

701,277

1,123,091

2,465,605

2,573,234

11

Stocks

2025
£

2024
£

Consumable stores

96,612

82,376

12

Debtors

Current

2025
£

2024
£

Trade debtors

1,944,089

1,845,607

Owed by group undertakings

6,600,874

6,031,658

Director's loan account

152,802

293,670

Other debtors

1,183

48,043

Prepayments

176,272

176,272

Corporation tax recoverable

51,570

-

 

8,926,790

8,395,250

13

Cash and cash equivalents

2025
£

2024
£

Cash on hand

598

472

Cash at bank

1,117,537

952,517

1,118,135

952,989

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

14

Creditors

2025
£

2024
£

Due within one year

Loans and borrowings

1,243,647

1,184,614

Trade creditors

1,704,427

1,347,631

Social security and other taxes

346,482

536,328

Other payables

726,533

1,134,915

Accruals

20,000

58,969

Corporation tax liability

94,371

244,992

4,135,460

4,507,449

Due after one year

Loans and borrowings

3,758,547

4,246,532

15

Provisions for liabilities

Deferred tax
£

Total
£

At 1 April 2024

544,003

544,003

Increase (decrease) in existing provisions

118,700

118,700

At 31 March 2025

662,703

662,703

16

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £208,943 (2024 - £175,606).

Contributions totalling £2,359 (2024 - £Nil) were payable to the scheme at the end of the year and are included in creditors.

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

17

Share capital

Allotted, called up and fully paid shares

2025

2024

No.

£

No.

£

Ordinary of £1 each

1,000

1,000

1,000

1,000

       

18

Loans and borrowings

Current loans and borrowings

2025
£

2024
£

Bank borrowings

93,407

131,199

Hire purchase contracts

1,150,240

1,053,415

1,243,647

1,184,614

Non-current loans and borrowings

2025
£

2024
£

Bank borrowings

1,420,261

1,518,080

Hire purchase contracts

2,338,286

2,728,452

3,758,547

4,246,532

Secured debts

Bank borrowings are secured by a charge on all assets of the company, and a legal charge on the parent company's land and buildings. The company's bankers hold an unlimited cross guarantee dated 25 March 2019 between the company and the immediate parent company, Keyo Holdings Limited.

The gross sum due to the bank by the company and subject to the guarantee, amounted to £1,513,668 (2024: £1,649,279).

The hire purchase borrowings are secured on the assets to which they relate.

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2025
£

2024
£

Not later than one year

17,908

26,942

Later than one year and not later than five years

26,310

44,067

44,218

71,009

The amount of non-cancellable operating lease payments recognised as an expense during the year was £16,612 (2024 - £77,927).

20

Dividends

Interim dividends paid

2025
£

2024
£

Interim dividend of £300.00 (2024 - £860.00) per each Ordinary

300,000

860,000

 

 

21

Related party transactions

As set out in note 1, the company has taken advantage of the disclosure exemption available in Financial Reporting Standard 102 not to disclose related party transactions with other wholly owned members of the group and any parent undertaking.

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

21

Related party transactions (continued)

Summary of transactions with key management

Key management personnel include the executive directors and all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £880,582 (2024: £31,957).
 

Transactions with directors

2025

At 1 April 2024
£

Advances to director
£

Repayments by director
£

At 31 March 2025
£

G Baugh

Director's loan account

293,670

200,326

(341,195)

152,801

-

-

-

-

293,670

200,326

(341,195)

152,801

M Van Den Bos

Former director's loan account

48,043

-

(48,043)

-

-

-

-

-

48,043

-

(48,043)

-

2024

At 1 April 2023
£

Advances to director
£

Repayments by director
£

At 31 March 2024
£

G Baugh

Director's loan account

375,669

348,001

(430,000)

293,670

375,669

348,001

(430,000)

293,670

M Van Den Bos

Former director's loan account

321,485

339,299

(612,741)

48,043

321,485

339,299

(612,741)

48,043

Interest has been charged at the official HMRC rate of interest at 2.25% per annum in both years.

 

Keyo Agricultural Services Ltd

Notes to the Financial Statements for the Year Ended 31 March 2025 (continued)

22

Parent and ultimate parent undertaking

The company's immediate parent is Keyo Holdings Limited, incorporated in England.

 The ultimate parent is Demeter (Brigg) Limited, incorporated in England.

 The ultimate controlling party is Mr G Baugh.

The parent of the smallest group in which these financial statements are consolidated is Demeter (Brigg) Limited, incorporated in England.

The address of Demeter (Brigg) Limited is:
Europa Way,
Off Atherton Way,
Brigg,
North Lincolnshire,
DN20 8AR