Hughes Family Holdings Limited Group accounts (Group and Company)

COMPANY REGISTRATION NUMBER: NI634385

Hughes Family Holdings Limited

Financial Statements

31 December 2024

Hughes Family Holdings Limited

Financial Statements

Year ended 31 December 2024

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	7

Consolidated statement of income and retained earnings	12

Company statement of income and retained earnings	13

Consolidated statement of financial position	14

Company statement of financial position	15

Consolidated statement of cash flows	16

Notes to the financial statements	17

Hughes Family Holdings Limited

Officers and Professional Advisers

The board of directors	Mr K Hughes
	Mr E Hughes
	Mr CO Hughes

Registered office	118 Trew Mount Road
	Dungannon
	County Tyrone
	Northern Ireland
	BT71 7EF

Auditor	Maneely Mc Cann Audit Limited
	Chartered accountants & statutory auditor
	Aisling House
	50 Stranmillis Embankment
	Belfast
	BT9 5FL

Bankers	First Trust
	18- 20 Scotch Street
	Dungannon
	BT70 1AZ

	Danske Bank
	Donegall Square West
	Belfast
	BT1 6JS

Solicitors	DWF (Northern Ireland) LLP
	Jefferson House
	42 Queen Street
	Belfast
	BT1 6HL

Hughes Family Holdings Limited

Strategic Report

Year ended 31 December 2024

The directors present their report and audited financial statements of the company and the group for the period ended 31 December 2024. Principal activities The principal activity of the company was that of a holding company. The principal activity of the group during the period was that of growing, processing and marketing of mushrooms, general haulage and rental income from investment properties. The group operates throughout the United Kingdom. Review of business and future developments Performance The directors consider the results for the current period and position of the group at the period end to be satisfactory. The directors are committed to long term creation of shareholder value by increasing the group's market share through organic growth. The directors have plans in place to ensure the group is strongly placed to retain its market position. The group's result for the period is an operating profit of £3,903,662 (2023: £2,097,728) and a profit on ordinary activities before taxation of £2,878,645 (2023: £832,743). At the period end net assets of the group were £16,373,811 (2023: £13,610,585). Principal risks and uncertainties The group's performance is sensitive to any changes in interest rates, inflation, foreign exchange, stability of suppliers, competition from other suppliers, employee retention and consumer spending habits. With these risks and uncertainties in mind the directors are aware that any plans for future development of the business may be subject to unforeseen future events outside of their control. The directors however, focus on managing and mitigating these risks as part of the overall business strategy via strong customer service, not being overly reliant on one supplier and investment in people and facilities. Key performance indicators The key performance indicators that management monitored on a monthly basis during the period were: - Sales growth compared to prior period - Gross profit margins - Employee numbers Environment The group recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The director's continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible. Health and safety The group is committed to achieving the highest practical standards in health and safety management and strives to make all sites and offices safe environments for employees and customers alike. Human resources Management of the group recognises that its most important resource is its people; their knowledge and experience is crucial to meeting customer requirements. Retention of key staff is critical and the group has invested increasingly in employment training and development and has introduced appropriate incentive and career progression arrangements.

This report was approved by the board of directors on 23 December 2025 and signed on behalf of the board by:

Mr K Hughes

Director

Registered office:

118 Trew Mount Road

Dungannon

County Tyrone

Northern Ireland

BT71 7EF

Hughes Family Holdings Limited

Directors' Report

Year ended 31 December 2024

The directors present their report and the financial statements of the group for the year ended 31 December 2024 .

Directors

The directors who served the company during the year were as follows:

Mr K Hughes
Mr E Hughes
Mr CO Hughes

Dividends

Particulars of recommended dividends are detailed in note 14 to the financial statements.

Employment of disabled persons

The company gives full consideration to applications for employment from disabled persons where the requirement of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training, career development and promotions wherever appropriate.

Employee involvement

It is the policy of the company to provide employees with information on matters of concern to them through the normal management channels. The involvement of the employees in the company's performance is encouraged by the provision of relevant information aimed at achieving employee awareness of the various factors affecting the company.

Financial instruments

The group's operations expose it to a variety of financial risks in respect of its use of financial instruments that include the effects of change in price risk, interest rate risk, credit risk, liquidity risk and foreign exchange risk.

Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub committee of the board. The policies set by the board of directors are implemented by the group's finance department. The main risks are summarised below:

Price risk

The group is exposed to commodity price risk as a result of its operations. However given the size of the group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the group's operations change in size or nature. The group has no exposure to equity securities price risk as it holds no listed or other equity investments.

Interest rate risk

The group has interest bearing liabilities, namely bank and other loans, which earn interest at a variable rate. The group has a policy of maintaining debt at competitive rate to ensure a reasonable degree of certainty over future interest cash flows. The directors will revisit the appropriateness of this policy should the group's operations change in nature or size.

Credit risk

The group monitors credit risk closely and considers that its current policies of credit checks meet its objectives of managing exposure to credit risk. The group has no significant concentrations of credit risk.

Liquidity risk

The group actively maintains a mixture of short and long term debt finance to ensure the group has sufficient funds for operations and planned expansions.

Foreign exchange risk

While the greater part of the group's revenues and expenses are denominated in sterling, the group is exposed to some foreign exchange risk in the normal course of business. While the group has not used financial instruments to hedge foreign exchange exposure, this position is under constant review.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company and 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 judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.

This report was approved by the board of directors on 23 December 2025 and signed on behalf of the board by:

Mr K Hughes

Director

Registered office:

118 Trew Mount Road

Dungannon

County Tyrone

Northern Ireland

BT71 7EF

Hughes Family Holdings Limited

Independent Auditor's Report to the Members of Hughes Family Holdings Limited

Year ended 31 December 2024

Opinion

We have audited the financial statements of Hughes Family Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the consolidated statement of income and retained earnings, company statement of income and retained earnings, consolidated statement of financial position, company statement of financial position, consolidated statement of cash flows and the related notes, 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 FRS 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 of the parent company's affairs as at 31 December 2024 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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 or the 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent 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 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.

Responsibilities of directors

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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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: Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: - the nature of the industry and sector, control environment and business performance including the design of the Group's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; - results of our enquiries of management about their own identification and assessment of the risks of irregularities; - any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to: - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; - the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and Taxation Legislation. Audit response to risks identified Our procedures to respond to risks identified included the following: - reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; - enquiring of management and external legal counsel concerning actual and potential litigation and claims; - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; - reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and - in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in new making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.

Cathal Maneely

(Senior Statutory Auditor)

For and on behalf of

Maneely Mc Cann Audit Limited

Chartered accountants & statutory auditor

Aisling House

50 Stranmillis Embankment

Belfast

BT9 5FL

23 December 2025

Hughes Family Holdings Limited

Consolidated Statement of Income and Retained Earnings

Year ended 31 December 2024

		2024	2023
Note		£	£
Turnover	4	70,726,279	55,486,163

Cost of sales	58,982,396	47,043,727
	-------------	-------------
Gross profit	11,743,883	8,442,436

Distribution costs		366,370	284,904
Administrative expenses		7,481,886	6,059,804
Other operating income	5	39,144	–
		-------------	------------
Operating profit	6	3,934,771	2,097,728

Income from joint ventures	10	( 31,109)	–
Share of profit of joint ventures	16	22,275	10,549
Other interest receivable and similar income	11	239,979	–
Interest payable and similar expenses	12	2,009,762	1,272,270
		-------------	------------
Profit before taxation		2,156,154	836,007

Tax on profit	13	( 722,491)	3,264
		------------	---------
Profit for the financial year and total comprehensive income		2,878,645	832,743
		------------	---------

Dividends paid and payable	14	( 115,419)	( 115,404)

Retained earnings at the start of the year	8,996,559	8,279,220
	-------------	------------
Retained earnings at the end of the year	11,759,785	8,996,559
	-------------	------------

All the activities of the group are from continuing operations.

Hughes Family Holdings Limited

Company Statement of Income and Retained Earnings

Year ended 31 December 2024

		2024	2023
Note		£	£
Profit for the financial year and total comprehensive income		137,695	125,953
Dividends paid and payable	14	( 115,420)	( 115,404)

Retained earnings at the start of the year	10,549	–
	---------	---------
Retained earnings at the end of the year	32,824	10,549
	---------	---------

Hughes Family Holdings Limited

Consolidated Statement of Financial Position

31 December 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	15	33,763,045	30,608,198
Investments:	16
Investments in joint-ventures		32,826	10,551
		-------------	-------------
		33,795,871	30,618,749

Current assets

Stocks	17	5,015,488	3,274,293
Debtors	18	14,773,235	10,119,109
Cash at bank and in hand		5,804	59,133
		-------------	-------------
		19,794,527	13,452,535

Creditors: amounts falling due within one year	20	22,678,167	18,016,251
		-------------	-------------
Net current liabilities		2,883,640	4,563,716
		-------------	-------------
Total assets less current liabilities		30,912,231	26,055,033

Creditors: amounts falling due after more than one year	21	14,204,503	11,662,390

Provisions	23	333,917	782,058
		-------------	-------------
Net assets		16,373,811	13,610,585
		-------------	-------------

Capital and reserves

Called up share capital	27	111	111
Capital redemption reserve	28	22,000	22,000
Merger reserve	28	4,591,915	4,591,915
Profit and loss account	28	11,759,785	8,996,559
		-------------	-------------
Shareholders funds		16,373,811	13,610,585
		-------------	-------------

These financial statements were approved by the board of directors and authorised for issue on 23 December 2025 , and are signed on behalf of the board by:

Mr K Hughes

Director

Company registration number: NI634385

Hughes Family Holdings Limited

Company Statement of Financial Position

31 December 2024

	2024	2023
Note	£	£

Fixed assets

Investments	16	33,046	10,771

Current assets

Debtors	18	1	1

Creditors: amounts falling due within one year	20	112	112
		----	----
Net current liabilities		111	111
		--------	--------
Total assets less current liabilities		32,935	10,660
		--------	--------

Capital and reserves

Called up share capital	27	111	111
Profit and loss account	28	32,824	10,549
		--------	--------
Shareholders funds		32,935	10,660
		--------	--------

The profit for the financial year of the parent company was £ 137,695 (2023: £ 125,953 ).

These financial statements were approved by the board of directors and authorised for issue on 23 December 2025 , and are signed on behalf of the board by:

Mr K Hughes

Director

Company registration number: NI634385

Hughes Family Holdings Limited

Consolidated Statement of Cash Flows

Year ended 31 December 2024

	2024	2023
Note	£	£

Cash flows from operating activities

Profit for the financial year	2,878,645	832,743

Adjustments for:
Depreciation of tangible assets	1,663,838	1,383,863
Income from joint ventures	31,109	–
Share of profit of joint ventures	( 22,275)	( 10,549)
Other interest receivable and similar income	( 239,979)	–
Interest payable and similar expenses	2,009,762	1,272,270
Gains on disposal of tangible assets	( 8,858)	( 6,551)
Tax on profit	(448,141)	3,264
Accrued expenses	487,760	339,466

Changes in:
Stocks	( 1,741,195)	147,033
Trade and other debtors	( 4,654,126)	( 781,692)
Trade and other creditors	1,544,064	121,620
	------------	------------
Cash generated from operations	1,500,604	3,301,467

Interest paid	( 2,009,762)	( 1,272,270)
Interest received	239,979	–
	------------	------------
Net cash (used in)/from operating activities	( 269,179)	2,029,197
	------------	------------

Cash flows from investing activities

Purchase of tangible assets	( 4,830,939)	( 5,790,271)
Proceeds from sale of tangible assets	21,112	83,560
Acquisition of interests in associates and joint ventures	–	( 2)
Proceeds from sale of interests in associates and joint ventures	( 31,109)	–
	------------	------------
Net cash used in investing activities	( 4,840,936)	( 5,706,713)
	------------	------------

Cash flows from financing activities

Proceeds from borrowings	2,709,452	1,707,739
Proceeds from loans from participating interests	( 51,787)	( 64,597)
Payments of finance lease liabilities	363,073	1,304,633
Dividends paid	( 115,419)	( 115,404)
	------------	------------
Net cash from financing activities	2,905,319	2,832,371
	------------	------------

Net decrease in cash and cash equivalents		( 2,204,796)	( 845,145)
Cash and cash equivalents at beginning of year		(9,200,644)	(8,355,499)
		-------------	------------
Cash and cash equivalents at end of year	19	( 11,405,440)	( 9,200,644)
		-------------	------------

Hughes Family Holdings Limited

Notes to the Financial Statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is 118 Trew Mount Road, Dungannon, County Tyrone, BT71 7EF, Northern Ireland.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102:

(a) Disclosures in respect of each class of share capital have not been presented.

(b) No cash flow statement has been presented for the company.

(c) Disclosures in respect of financial instruments have not been presented.

(d) No disclosure has been given for the aggregate remuneration of key management personnel.

Consolidation

The financial statements consolidate the financial statements of Hughes Family Holdings Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Corporation tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.

Operating leases

Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss. Investment property is initially recorded at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss. If a reliable measure of fair value is no longer available without undue cost or effort for an item of investment property, it shall be transferred to tangible assets and treated as such until it is expected that fair value will be reliably measurable on an on-going basis.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Freehold property	-	2% straight line
Plant and machinery	-	5% - 15% Reducing balance
Fixtures, fittings and equipment	-	15% reducing balance
Motor vehicles	-	25% reducing balance

No depreciation is calculated on land or investment properties.

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Government grants

Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Sale of goods	70,166,879	54,789,425
Government grants received	124,464	256,491
Rental income	434,936	440,247
	-------------	-------------
	70,726,279	55,486,163
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.

5. Other operating income

	2024	2023
	£	£
Other operating income	39,144	–
	--------	----

6. Operating profit

Operating profit or loss is stated after charging/crediting:

	2024	2023
	£	£
Depreciation of tangible assets	1,663,838	1,383,863
Gains on disposal of tangible assets	( 8,858)	( 6,551)
Impairment of trade debtors	109,381	127,452
Research and development expenditure written off	61,680	65,209
Operating lease rentals	112,913	67,520
Foreign exchange differences	22,897	20,277
	------------	------------

7. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	23,004	47,800
	--------	--------

8. Staff costs

The average number of persons employed by the group during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Production staff	232	230
Distribution staff	4	5
Administrative staff	8	8
	----	----
	244	243
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	12,651,635	9,507,012
Social security costs	1,038,183	728,283
Other pension costs	94,569	79,336
	-------------	-------------
	13,784,387	10,314,631
	-------------	-------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	27,105	29,966
	--------	--------

10. Income from joint ventures

	2024	2023
	£	£
(Gain)/loss on disposal of interests in JV	(31,109)	–
	--------	----

11. Other interest receivable and similar income

	2024	2023
	£	£
Interest on cash and cash equivalents	239,979	–
	---------	----

12. Interest payable and similar expenses

	2024	2023
	£	£
Interest on banks loans and overdrafts	1,328,370	786,840
Interest on obligations under finance leases and hire purchase contracts	72,765	49,115
Other interest payable and similar charges	608,627	436,315
	------------	------------
	2,009,762	1,272,270
	------------	------------

13. Tax on profit

Major components of tax income

	2024	2023
	£	£

Deferred tax:

Origination and reversal of timing differences	( 722,491)	3,264
	---------	-------
Tax on profit	( 722,491)	3,264
	---------	-------

Reconciliation of tax (income)/expense

The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 50 % (2023: 25 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	2,156,154	836,007
	------------	---------
Profit on ordinary activities by rate of tax	539,039	209,001
Effect of expenses not deductible for tax purposes	182,827	( 62)
Effect of capital allowances and depreciation	( 307,364)	33,728
Unused tax losses	( 400,602)	( 240,030)
Effect of income not taxable	( 13,900)	( 2,637)
Other deferred tax adjustment	( 722,491)	3,264
	------------	---------
Tax on profit	( 722,491)	3,264
	------------	---------

14. Dividends

	2024	2023
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	115,419	115,404
	---------	---------

15. Tangible assets

Group	Freehold property	Plant and machinery	Fixtures, fittings and equipment	Motor vehicles	Investment property	Total
	£	£	£	£	£	£
Cost
At 1 Jan 2024	19,695,603	13,530,620	276,398	309,036	2,739,302	36,550,959
Additions	1,724,376	3,030,300	46,318	29,945	–	4,830,939
Disposals	( 8,672)	( 44,951)	–	–	–	( 53,623)
	-------------	-------------	---------	---------	------------	-------------
At 31 Dec 2024	21,411,307	16,515,969	322,716	338,981	2,739,302	41,328,275
	-------------	-------------	---------	---------	------------	-------------
Depreciation
At 1 Jan 2024	1,440,087	4,184,150	121,399	197,125	–	5,942,761
Charge for the year	509,946	1,075,497	47,883	30,512	–	1,663,838
Disposals	–	( 41,369)	–	–	–	( 41,369)
	-------------	-------------	---------	---------	------------	-------------
At 31 Dec 2024	1,950,033	5,218,278	169,282	227,637	–	7,565,230
	-------------	-------------	---------	---------	------------	-------------
Carrying amount
At 31 Dec 2024	19,461,274	11,297,691	153,434	111,344	2,739,302	33,763,045
	-------------	-------------	---------	---------	------------	-------------
At 31 Dec 2023	18,255,516	9,346,470	154,999	111,911	2,739,302	30,608,198
	-------------	-------------	---------	---------	------------	-------------

The company has no tangible assets.

There is no material difference between the open market value of the Investment property at 31 December 2024 and the value at which it is being carried in the balance sheet at that date.

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

Group	Plant and machinery
	£
At 31 December 2024	2,310,169
	------------
At 31 December 2023	1,282,854
	------------

16. Investments

Group	Joint ventures
	£
Share of net assets/cost
At 1 January 2024	10,551
Share of profit or loss	22,275
	--------
At 31 December 2024	32,826
	--------
Impairment
At 1 January 2024 and 31 December 2024	–
	--------

Carrying amount
At 31 December 2024	32,826
	--------
At 31 December 2023	10,551
	--------

Company	Shares in group undertakings	Shares in participating interests	Total
	£	£	£
Cost
At 1 January 2024	220	2	222
	----	----	----
At 31 December 2024	220	2	222
	----	----	----
Impairment
At 1 January 2024 and 31 December 2024	–	–	–
	----	----	----

Carrying amount
At 31 December 2024	220	2	222
	----	----	----
At 31 December 2023	220	2	222
	----	----	----

Subsidiaries, associates and other investments

Details of the investments in which the group and the parent company have an interest of 20% or more are as follows:

	Class of share	Percentage of shares held
Subsidiary undertakings
K. Hughes & Co. Limited	Ordinary	100
Quintessential Science Ltd	Ordinary	100
K Hughes Estates Ltd	Ordinary	100

Other significant holdings
Hughes Compost Ltd	Ordinary	50

Hughes Compost Limited has ceased trading post year end. K. Hughes & Co. Limited hold investments in the following group company:

		Percentage of shares held
	Howden Enterprises Ltd - Ordinary shares	100

All subsidiary undertakings are incorporated in Northern Ireland. K. Hughes & Co. Limited, Howden Enterprises Ltd and K Hughes Estates Ltd are trading companies.

17. Stocks

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Raw materials and consumables	352,062	289,053	–	–
Finished goods and goods for resale	4,663,426	2,985,240	–	–
	------------	------------	----	----
	5,015,488	3,274,293	–	–
	------------	------------	----	----

18. Debtors

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Trade debtors	12,192,744	8,127,455	–	–
Amounts owed by group undertakings	13,396	45,180	–	–
Amounts owed by undertakings in which the company has a participating interest	811,597	390,420	–	–
Deferred tax asset	274,350	–	–	–
Prepayments and accrued income	150,000	402,202	–	–
Other debtors	1,331,148	1,153,852	1	1
	-------------	-------------	----	----
	14,773,235	10,119,109	1	1
	-------------	-------------	----	----

19. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	2024	2023
	£	£
Cash at bank and in hand	5,804	59,133
Bank overdrafts	( 11,411,244)	( 9,259,777)
	-------------	------------
	( 11,405,440)	( 9,200,644)
	-------------	------------

20. Creditors: amounts falling due within one year

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Bank loans and overdrafts	13,005,631	10,255,754	–	–
Other loans	495,728	519,426	–	–
Trade creditors	5,965,826	4,820,505	–	–
Amounts owed to group undertakings	–	–	110	110
Amounts owed to undertakings in which the company has a participating interest	271,915	323,702	–	–
Accruals and deferred income	1,158,845	666,540	–	–
Social security and other taxes	1,209,223	939,581	–	–
Obligations under finance leases and hire purchase contracts	567,657	490,741	–	–
Other creditors	3,342	2	2	2
	-------------	-------------	----	----
	22,678,167	18,016,251	112	112
	-------------	-------------	----	----

Bank overdrafts and loans are secured by a mortgage debenture incorporating a fixed and floating charge over the assets of the subsidiary companies, K. Hughes & Co. Limited and Howden Enterprises Limited; and a legal charge over the factory premises at Trew Mount Road, Dungannon and the land at Howden Road, England.

21. Creditors: amounts falling due after more than one year

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Bank loans and overdrafts	11,792,187	9,681,145	–	–
Accruals and deferred income	798,327	653,413	–	–
Obligations under finance leases and hire purchase contracts	1,613,989	1,327,832	–	–
	-------------	-------------	----	----
	14,204,503	11,662,390	–	–
	-------------	-------------	----	----

The bank loans are repayable by quarterly capital and interest repayments in arrears. Interest is charged every 3 months at LIBOR plus 2.25% - 2.75%.

22. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Not later than 1 year	567,657	490,741	–	–
Later than 1 year and not later than 5 years	1,613,989	1,327,832	–	–
	------------	------------	----	----
	2,181,646	1,818,573	–	–
	------------	------------	----	----

23. Provisions

Group	Deferred tax (note 24)
	£
At 1 January 2024	782,058
Charge against provision	( 448,141)
	---------
At 31 December 2024	333,917
	---------

The company does not have any provisions.

24. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Included in debtors (note 18)	274,350	–	–	–
Included in provisions (note 23)	( 333,917)	( 782,058)	–	–
	---------	---------	----	----
	( 59,567)	( 782,058)	–	–
	---------	---------	----	----

The deferred tax account consists of the tax effect of timing differences in respect of:

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Accelerated capital allowances	2,526,417	2,545,481	–	–
Unused tax losses	( 2,466,850)	( 1,763,423)	–	–
	------------	------------	----	----
	59,567	782,058	–	–
	------------	------------	----	----

25. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 91,303 (2023: £ 74,718 ).

The assets of the scheme are held separately from those of the Group in an independently administered fund.

26. Government grants

The amounts recognised in the financial statements for government grants are as follows:

Group		Company
2024	2023	2024	2023
£	£	£	£

Recognised in creditors:

Deferred government grants due within one year	107,812	103,267	–	–
Deferred government grants due after more than one year	798,327	653,413	–	–
	---------	---------	----	----
	906,139	756,680	–	–
	---------	---------	----	----

27. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary shares of £ 0.01 each	100	1	100	1
Ordinary A shares of £ 1 each	110	110	110	110
	----	----	----	----
	210	111	210	111
	----	----	----	----

28. Reserves

Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses. Merger reserve - This reserve reflects the difference between the cost of investment and the nominal value of share capital acquired in the group reorganisation.

29. Analysis of changes in net debt

	At 1 Jan 2024	Cash flows	At 31 Dec 2024
	£	£	£
Cash at bank and in hand	59,133	(53,329)	5,804
Bank overdrafts	(9,259,777)	(2,151,467)	(11,411,244)
Debt due within one year	(1,810,420)	(623,539)	(2,433,959)
Debt due after one year	(11,008,977)	(2,397,199)	(13,406,176)
	-------------	------------	-------------
	( 22,020,041)	( 5,225,534)	( 27,245,575)
	-------------	------------	-------------

30. Contingencies

There is a contingent liability within one of the group's subsidiary companies to repay certain government grants received under the terms of a letter of offer from Invest NI if the company fails to achieve and maintain the specified conditions. In the opinion of the directors the terms of the letter have been complied with, and no loss is expected.

Hughes Family Holdings Limited

Notes to the Financial Statements (continued)

Year ended 31 December 2024

31. Related party transactions

Company

Control

Hughes Family Holdings Limited is the ultimate parent company of the group. Mr K Hughes is deemed the ultimate controlling party of the group and the company by virtue of his shareholding in the company.

Group party transactions

The company has taken advantage of the exemption from disclosing related party transactions with group companies, in accordance with Financial Reporting Standard No 102 Section 33, Related Party Disclosures.

Related party transactions

K. Hughes & Co. Limited is the sole employer in KMK Pension Fund. K. Hughes & Co. Limited has loans from the scheme. The balance on these loans at 31 December 2024 was £495,728 (2023: £519,426).

These are disclosed within Other loans in notes 18 and 19 of the group financial statements.

A director in a NI registered company is part of the key management within K. Hughes & Co. Limited. At the year end K. Hughes & Co. Limited was owed £292,034 (2023: £85,890) by this related party.

Two of the directors of K. Hughes & Co. Limited are directors and shareholders in another NI registered company. At the balance sheet date, the group owed £519,563 (2023: £304,529) to this related party.

Amounts due to and from related and group companies are interest free, unsecured and repayable on demand.

During the previous year, Hughes Family Holdings Limited entered into a joint venture, Hughes Compost Ltd. At the balance sheet date, K Hughes & Co. Limited was owed £13,395 (2023: £14,069) by this joint venture.

During the previous year, Hughes Family Holdings Limited entered into a joint venture, Hughes Global Limited. At the balance sheet date, K Hughes & Co. Limited was owed £Nil (2023: £31,110) by this joint venture.

Transactions with directors

The directors of K. Hughes & Co. Limited deemed to be related parties due to their position within the group. At 31 December 2024 the following are balances were due from K. Hughes & Co. Limited in respect of loans from the directors:

i) Balance owed to Mr K Hughes of £257,935 (2023: £306,295);

ii) Balance owed to Mr E Hughes of £19,372 (2023: £17,265);

iii) Balance owed to Mr CO Hughes of £5,392 (2023: £142).

The above balances are included within Amounts owed to related parties in note 18 of the group financial statements.