The directors present the strategic report for the year ended 31 March 2025. This covers a fair review of business, description of principal risks and uncertainties, financial instruments and research and development.

Ashley Chase Estate Limited is a wholly owned subsidiary of A.J. And R.G. Barber Limited, based in Litton Cheney, Dorset and produces a range of cheeses for the UK, USA, and other overseas markets. Its wholly owned subsidiary, Ford Farm USA LLC, purchases its goods primarily from its parent, Ashley Chase Estate Limited and from other group members for marketing and distribution in the USA.

Total sales revenue increased £1.27m over the prior year and was split equally between domestic and export markets. UK sales were up £0.61m (+2.1%) with both traditional and innovative products showing solid demand. UK retailers have been keen to refocus more attention on traditionally made heritage products as well as looking to tap into our strengths in innovative cheeses. Overseas sales, after a significant year of growth in the previous year (+10.1%), saw a year of consolidation and more modest growth of +2.6%. Both European and Rest of the World sales performed solidly throughout the year in spite of growing concerns over geo-political disruption to international trade.

Ashley Chase Limited has continued to invest in its targeted programme of maximising core processing capacity, in automation, and in the teams that operate all the core functions. Capital expenditure of £0.82m in the year focussed on technological improvements to a number of key production lines. Investment in further use of ultrasonic technology for cheese cutting allowed for significant quality improvements in a number of cutting and packing processes.

An additional cheese cutting and packing line was designed, ordered, and in the process of construction during the year. This will increase capacity to produce and flow-wrap premium quality retail ready portions for growing export and domestic demand. At the year end this production line was going through the commissioning process ready to come on stream for the following financial year and the seasonal peak demand period that runs from Thanksgiving in the USA through to Christmas.

Deployment of lean manufacturing training and skills, along with a strong programme of continuous improvement, has put people and our entire site based cross-functional team at the heart of business development and improvement strategy. Meanwhile, sales and marketing resource is focussed primarily on UK and USA markets, and a well targeted pipeline of new product development and innovation enables the business to differentiate itself from the competition. Strong relationships with major UK and international retailers continue to be founded on well-defined points of difference and in a market leading range of speciality cheeses.

In a wider macro-economic context, the deliberations of the US government around new tariff impositions dominated the global trade agenda. The announcement in April 2025 of an additional 10% tariff on most items, including cheese and dairy products, imported into the USA from the UK and many other countries was an unwelcome one. However, some of the preceding commentary had envisaged a higher level of tariff so in some quarters there was a degree of relief that the cost impact to US consumers could have been greater. We have worked closely with our partners in the US market to manage the application of these tariffs into market pricing and the impact on demand though the early part of the year had been relatively neutral. We continue to monitor the demand profile and assess any long-term risk of consumer demand reduction.

Sustainability & Climate Change

The directors fully acknowledge their responsibility with regard to the effect of the group’s operations on the local and wider environment, and a duty of care in this regard is enshrined in the mission statement of the business. They also appreciate that our customers, at both a trade and consumer level, consider sustainability to be one of the key drivers in the choice of products that they purchase. A wide programme of progressive investment has been underway for a number of years, across all aspects of the business, aimed at mitigating environmental impact wherever possible. These include: green energy installations and green power sourcing; energy efficiency projects; heat recycling; water from milk reclamation; packaging and material recycling and many more besides.

Concerns about climate change continue to accelerate as well as challenges as to what individuals and organisations are doing to make a positive difference. The group’s commitment to milk sourcing, based on a low intensity outdoor grazing model for our cows, gives us a strong base upon which to build our positive environmental credentials. We have undertaken a business wide programme of measuring and understanding both the positive and negative impacts of all aspects of our natural capital assets, operations and supply chain to better inform our strategy, to meet and surpass any environmental targets set by government, together with the expectations of all our stakeholders. We have plans in place not only reduce Scope 1 and 2 carbon emissions but focus our supply chain on critical Scope 3 emissions. We are also in the process of better understanding how we can best deploy the natural capital assets on our own farms, as well as others in our supply chain, to improve our carbon sequestration capabilities and to continue deliver on our duty of care for the environment.

Particular focus has been placed on the progress of our “nature positive” programme and continued efforts to reduce the climate impact of our farming and milk sourcing operations. This programme also features a wider suite of key measures, including biodiversity and carbon sequestration for measurement and improvement across our own and all supplying farms. Having captured independently accredited (Kingshay/Trinity Agtech) data for all our supplying farms in the baseline year of 2021/22, we have been tracking year on year progress against our key targets to reduce climate impact. This extremely detailed understanding and knowledge to the background of all of our milk sourcing, and of the continued journey of improvement in key areas, is a key foundation stone for the trust in our products that we have built throughout the supply chain from farm to fork.

Our favourable geographical location, smaller farm outdoor grazing model, and efficient milk production means our milk related climate impact is now 60% less than the global average, when measured in terms of CO2eKg/litre milk. However, it is a key objective to see year on year reductions in our impact and the first three years of the programme saw a 19% reduction from our baseline, to less than 1Kg CO2eKg/litre of milk purchased, compared to the global average of 2.4Kg. Much of this can be attributed to the progressive environmental attitudes of our farmers and our mutual dedication to a traditional and less intensive grass based, outdoor grazing farming system. Now in our fourth year of measurement it is getting more difficult to replicate the scale of reductions from previous years, but we remain focussed on helping drive down environmental impact on our own and all supplying farms.

Towards the end of the financial year the wider-business was engaged with working group, the UK Dairy Carbon Network. This consortium led by the Agri-Food & Biosciences Institute is looking to collaborate with selected progressive farmers to evaluate practical approaches to manage down greenhouse gas (GHG) emissions on dairy farms. Our pioneering work on carbon measurement and forward-thinking attitude to carbon reduction has resulted in one of our own farms being selected for inclusion in a panel of UK farms looking to monitor and research the impact of multiple proven GHG reducing measures. The research is based on a three-year programme of activity. It will help us and the dairy industry at large get a better understanding of the effectiveness of a range of GHG mitigation strategies and use this to create a long-term lower carbon future for all.

Corporate Governance

The success of our business depends on the trust and confidence of our stakeholders in the ability of the business to operate sustainably, both economically and environmentally. As a family owned business the company seeks to generate fair returns for shareholders through building long term mutually sustainable relationships our customers, employee team, key suppliers and with the communities we operate in.

The directors have acted in accordance with their legal duties, which include a duty to act in the way in which they consider, in good faith, would be most likely to promote the success of the business for the benefit of its shareholders, whilst having regard to all of our stakeholders and the matters set out in section 172(1) of the Companies Act 2006.

The following provides details of how the directors have engaged with, and how the business fully considers the interests of our stakeholders and the effect of doing so on the principal decisions taken by the business, during the financial year:

Our Workplaces

The directors recognise that the success of the company is built upon the skills, hard work, and continued loyalty of our employee team. Increasing complexity and regulation in many areas of the business have driven the need to ensure that our staff receive on-going training to address these changes, and that newly recruited team members bring to the business the necessary skills and experience to further develop our business. The directors recognise the importance of keeping our teams informed. Our employee consultation forum ensures that they are fully consulted, and their views considered, before any proposals, which may potentially impact them, are implemented. Employee representatives are appointed by ballot by the employees for whom they represent.

The directors take the health and safety of employees and visitors to our facilities very seriously and this is reflected in the commitment to the Health & Safety Management System which includes the monitoring, reporting and review of incidents and potential incidents and ensures the closer involvement of our teams, via the employee consultation forum, in helping to manage health and safety in our workplace. The Group continues to invest in our Health & Safety Management Systems, including training for our Health & Safety teams, and this commitment to health and safety continues to be valued by the workforce and visitors to our facilities.

The directors recognise that people with disabilities should have full and fair consideration for all vacancies. The group’s policies demonstrate our commitment to interviewing people with disabilities, if those people fulfil the minimum criteria expected for the vacancy, and endeavouring to retain employees in the business if they become disabled during our employment, including making reasonable adjustments to the working environment and re-training.

Partnering with Great Place to Work ®, a globally respected authority on workplace culture, January 2025 saw the first independently run employee team engagement survey to take place across the business. The survey has offered valuable insights into what it is that we do well and that our team like about working in our business but also highlighting areas of focus on which we can improve. We are committed to continuing this open dialogue to help us keep improving the working experience for all and to help us retain and recruit the best talent that will drive our business both now and into the future.

Principal risks and uncertainties

The directors consider the long-term primary risks facing the business are: competition from other UK cheese exporters and domestic cheese producers in our major markets; the volatility of global dairy market pricing; US global trade policy especially relating to increased levels of tariffs on UK products; the current higher levels of global geo-political instability; and the potential effect of adverse foreign exchange rates.

In addition, the last two years have seen elevated risks emanating from a significant rise in inflation rates and the consequent increase in interest base rates. The directors are keeping both actual and forecast rates under regular review and ensuring a strong Balance Sheet position is maintained in order to help insulate the business against the effects of these higher rates.

Financial Instruments

Objectives and policies

The group’s financial instruments principally comprise of bank borrowings together with loans from directors and members of their close family and a small self-administered pension scheme of which the directors are Trustees with others. Borrowings are to provide working capital for the group businesses to operate.

The group’s companies do not trade in financial instruments but constantly reviews its policies and risks, on an ongoing basis, but it is exposed to fair value risk on its fixed rate and floating rate borrowings. All borrowings are in Sterling.

Price risk, credit risk, liquidity risk, and cash flow risk

Liquidity Risk: The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk: The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts, and loans.

Foreign currency risk: The group’s foreign currency exposures arise from trading with its overseas subsidiaries and overseas customers. The exchange rate risk is constantly monitored, and prices reviewed accordingly, forward contracts are agreed to minimise the risk against customers’ orders received.

The directors actively manage the financial aspects of the business via timely and relevant management information. The primary financial performance and position metrics, including product margins, stock levels, wastage, production yields, direct and indirect costs and foreign exchange gains and losses are continually reviewed and any deviation from plan are investigated and, where possible, action undertaken to rectify the variance.

Research and Development

Group companies are currently undertaking research and development activities in a number of areas, primarily regarding improvements in product quality and consistency and innovations in the cheese making process.

As previously noted in the Sustainability & Climate Change section, we are also engaged in looking at practical approaches to manage down GFG emissions on dairy farms.

On behalf of the board

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

Principal activity of the company and group continued to be the manufacture and trading of cheese and importing and selling dairy products to UK and US based retailers.

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

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

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

The company maintains insurance policies on behalf of all directors against liability arising from negligence, breach of duty and breach of trust in relation to the company.

The auditor, Old Mill Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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 future developments, research and development activities and exposure to financial risk, credit risk, liquidity risk and cash flow risk.

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 auditor of the company 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 auditor of the company is aware of that information.

No disclosure of energy usage has been entered into these financial statements as the information has been consolidated into the publicly available financial statements of the parent company, A.J. And R.G. Barber Limited.

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 group and company, and of the profit or loss of the group 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;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Ashley Chase Estate Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity 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 group's and the parent company's affairs as at 31 March 2025 and of the group's 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 group and parent 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 group's and parent 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 group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent company 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

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

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. We recognised environmental, health and safety, cross compliance and BRCGS standards to be significant laws and regulations that the group are to adhere to.

Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

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.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £82,550 (2024 - £839,383 loss).

Ashley Chase Estate Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Maryland Farm, Smiths Lane, Ditcheat, SHEPTON MALLET, Somerset, BA4 6PR.

The trading address is Parks Farm, Litton Cheney, Dorchester, Dorset, DT2 9AZ.

The group consists of Ashley Chase Estate Limited and all of its subsidiaries.

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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of A.J and R.G Barber Limited. These consolidated statements are available from its registered office.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Ashley Chase Estate Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

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

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

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

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

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

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

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 recognised in the profit and loss account.

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. The surplus or deficit on revaluation is recognised in profit or loss.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. 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 group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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

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

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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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 group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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

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

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

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

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

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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 group after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

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

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group 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 group.

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

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

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 group’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 if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

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

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

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

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

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.

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

Where relevant the company applies judgement in arriving at the fair value of forward contracts entered into for the purposes of managing their exposure to exchange rate fluctuation. Management seek third party information in support of their judgement regarding the value of these contracts at the balance sheet date. At 31 March 2025, the value of the forward contract asset was £166,387 (2024 - £9,261).

In determining the estimated useful life the company considers the expected usage (capacity or physical output) of the asset, expected physical wear and tear of the asset and expected technical advancements in the industry that could lead to obsolescence of the asset. Each year the company reviews the above to establish if there is any change in expected useful life of tangible assets.

Estimated residual value of tangible assets is reviewed annually with consideration given to any changes in market prices and improvements in technology that would alter demand for such tangible assets.

Investment property is included in the financial statements at fair value, based on the market value for the properties at the balance sheet date. An independent valuer was not used during the year, however the directors have sufficient knowledge and experience to apply judgement in determining a valuation. At 31 March 2025, the value of the investment property was £1,021,091 (2024 - £1,328,969).

Where estimated selling price less costs to complete and sell is lower than cost, a stock provision will be recorded. The estimated selling price is determined with reference to market values. At 31 March 2025, the stock provision totalled £2,955 (2024 - £79,856).

Taxation

Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future profits together with an assessment of the effect of future tax planning strategies. At 31 March 2025 the deferred tax asset recognised was £Nil (2024 - £Nil).

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

Their aggregate remuneration comprised:

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

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Freehold and leasehold land and buildings with a carrying amount of £1,230,959 (2024 - £1,012,801) have been pledged to secure borrowings of the group.

The revaluation surplus is disclosed in note 24.

Included within freehold land and buildings are two properties transferred at valuation from investment properties to freehold land and buildings. The valuation of the two properties at date of transfer was £556,042, The net book value of these buildings as at 31 March 2025 is £465,377.

If freehold land and buildings were measured using the cost model, the carrying amounts would be as follows:

The fair value of the investment property class of fixed assets has been arrived at on the basis of market value. This class of assets was revalued on 31 March 2025 by the directors who are internal to the company.

Depreciation is not provided on investment properties as a result of FRS 102 Section 16, which represents a departure from the Companies Act 2006, in order to achieve fair presentation. Management have concluded that the financial statements present fairly the group and company's financial position, financial performance and cash flows.

Details of the company's subsidiaries at 31 March 2025 are as follows:

Financial assets/(liabilities) measured at fair value total of £166,387 (2024 - £9,261) relate to forward contracts. The fair value has been calculated based on forward values of the relevant contracts at the year end, using market price. The company periodically enters into forward contracts in order to mitigate the effects of fluctuating exchange rates, and under the requirements of FRS 102 these have been carried out at fair value at the year end. The fluctuation in the fair value relates wholly to a change in market conditions. Own credit risk is not considered to be material.

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

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The total amount payable at 31 March 2025 was £24,868 (2024 - £25,436).

The ordinary shares have normal rights of ordinary shares.

The 'A' ordinary shareholders are not entitled to receive notice of, or vote at, any general meeting. On a winding up or other repayment of capital the assets remaining will be applied first in repaying the 'A' ordinary shareholders the sum of £1 per share. Dividends may be paid but can be differentiated from the amount paid to ordinary shareholders.

The amounts of paid up share capital for the 'A' Ordinary shares was lower than the called up share capital stated above due to unpaid calls of £4 (2024 - £4). This amount is included within debtors at the balance sheet date.

The revaluation surplus is the amount transferred between the profit and loss account and revaluation reserve in respect of properties transferred from investment property at deemed cost. Other movements reflect the transfer between the profit and loss account and revaluation reserve for depreciation on deemed valuation in excess of historical cost.

The wider Barber group, headed by A.J. And R.G. Barber Limited, provided security to Lloyds Bank in the form of a guarantee and a charge over freehold land and buildings of £16,450,000 (2024: £11,700,000), in respect of a group overdraft facility and term loan.

The group provided a guarantee and security to HSBC invoice Financing in respect of a group asset based lending facility. The amount guaranteed was £45,000,000 (2024: £45,000,000) relating to a £35,000,000 inventory facility limit and a £10,000,000 receivables facility limit. The security comprises a fixed and floating charge over book debt and a floating charge over all other assets.

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

The group and company have a guarantee with HSBC in favour of the Rural Payments Agency of £28,000 (2024 - £28,000).

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

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The company has taken advantage of the exemption in FRS 102 S33.1A Related Party Disclosures from disclosing transactions between two or more members of a group, where any subsidiary which is a party to the transaction is wholly owned by such a member.

The company is controlled by A.J and R.G. Barber Limited by virtue of its majority shareholding. A.J. and R.G. Barber Limited is controlled by its directors and incorporated in England. The results of Ashley Chase Estate Limited are included in the consolidated financial statements of A.J. and R.G. Barber Limited which are available from their registered office: Maryland Farm, Ditcheat, Shepton Mallet, BA4 6PR.