REGISTERED NUMBER: 04450315 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st March 2025

for

West Scottish Lamb Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

to

5

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

to

20

DIRECTORS:

J F Errington

D Burton

SECRETARY:

Mrs A J Burton

REGISTERED OFFICE:

Carlisle Abattoir

Brunthill Road

Kingstown Industrial Estate

Carlisle

Cumbria

CA3 0EH

REGISTERED NUMBER:

04450315 (England and Wales)

AUDITORS:

Farries, Kirk & McVean

Chartered Accountants

Statutory Auditors

Dumfries Enterprise Park

Heathhall

Dumfries

DUMFRIESSHIRE

DG1 3SJ

SOLICITORS:

Arnison Heelis

1 St Andrew's Place

Penrith

CA11 7AW

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

West Scottish Lamb Limited run an abattoir. The abattoir is based in Carlisle, though the product is predominantly Scottish. They deal in lamb and beef production and associated by-products.

The directors believe that the company is well placed to service the meat production industry from its location close to major transport routes between Scotland and England. Their staff and management team have lengthy experience in the industry.

REVIEW OF BUSINESS

The directors are again delighted with the results. Turnover rose to £71.1m (2024 - £56.9m). They have continued the policy of concentrating mainly on lamb sales. As the majority of sales are to the export market, the Sterling turnover can fluctuate with Euro exchange rate movements regardless of the volume of business. The rate has not changed significantly over the year, remaining between 1.17€ and 1.21€. The low rate has again been good for export trade.

Gross profits during the year under review have remained consistent at £3.1m despite the increase in turnover. This is as a direct result of the higher prices being achieved for lamb at market in the UK. This increases the cost base of the company. Gross profit percentage has decreased from 5.4% to 4.4%. Bottom line profit before tax however is increased from £0.58m to £1.0m..

Key Performance Indicators (KPI's)

In the opinion of the directors, the key performance indicators of the company are gross profit and turnover as noted above. Given the straightforward nature of the business, the directors are of the opinion that there are no additional KPI's that are necessary for an understanding of the development, performance or position of the business.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to competition from both national and more local meat dealers, employee retention and product availability.

Financial risk management

The company's operations expose it to little in the way of financial risk. However, a variety of financial risks do exist to an extent including credit risk, liquidity risk currency risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs.

Credit risk

The company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual is subject to a limit which can only be reassessed by a director.

Liquidity risk

The company finances operations using invoice financing facilities from RBS Invoice Finance Limited. Reliance on this facility is reducing year on year and the company is operating well within available credit limits. However, it still requires the facility in order to ensure there are sufficient available funds for operations.

Currency risk

The company incurs virtually all its expenditure in Sterling but a significant percentage of its income is in Euros. As a result the company faces a risk with respect to movements in the exchange rate between invoice date and payment date.

Interest rate risk

The company has interest bearing liabilities including a bank overdraft and invoice financing facilities. The amount of interest charged on these liabilities is not sufficient to significantly affect company operations.

FUTURE OUTLOOK

The directors expect to continue trading profitably over the forthcoming twelve months, though the company results will always be subject to the fluctuations in the Euro exchange rate. There are no plans for significant expansion within the next twelve months.

SIGNED BY ORDER OF THE DIRECTORS:

D Burton - Director

19th December 2025

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

DIVIDENDS

No dividends will be distributed for the year ended 31st March 2025.

DIRECTORS

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

J F Errington

D Burton

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Farries, Kirk & McVean, will be proposed for re-appointment at the forthcoming Annual General Meeting.

SIGNED BY ORDER OF THE DIRECTORS:

D Burton - Director

19th December 2025

Opinion

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

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

- we have assessed the susceptibility of the company's financial statements to material misstatement as being low risk. The directors are very involved in the day to day management of the business and have a focus on controls to address potential fraud and error.

- the nature of the company's activities are significantly regulated. We have assessed the main regulations around the company's activities as being those concerning production of food for human consumption. The company's certification compliance with Global Standards for Food Safety was checked and confirmed.

- we have discussed the legal and regulatory framework the company operates under with the directors. This has enabled us to gain an understanding of those applicable to the company and the procedures they operate to ensure compliance.

- we have obtained an understanding of the company's policies and procedures on fraud risk through two way communication with the management and have no knowledge of any actual, suspected or alleged fraud.

- the Senior Statutory Auditor is satisfied that the engagement audit staff were competent to and capable of recognising non-compliance with laws and regulation. No details of any non-compliance were communicated to us and no such potential instances were noted during the audit process.

We have reached these conclusions following enquiries made of those charged with governance and senior staff and following audit testing procedures and review of financial statements.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Gerald McGill, BA CA (Senior Statutory Auditor)

for and on behalf of Farries, Kirk & McVean

Chartered Accountants

Statutory Auditors

Dumfries Enterprise Park

Heathhall

Dumfries

DUMFRIESSHIRE

DG1 3SJ

19th December 2025

TURNOVER

3

71,141,390

56,945,510

Cost of sales

(68,012,576

)

(53,875,573

)

GROSS PROFIT

3,128,814

3,069,937

Administrative expenses

(2,345,384

)

(2,525,843

)

783,430

544,094

Other operating income

172,522

7,702

OPERATING PROFIT

6

955,952

551,796

Income from fixed asset investments

30

30

Interest receivable and similar income

76,651

58,953

1,032,633

610,779

Interest payable and similar expenses

7

(29,948

)

(31,976

)

PROFIT BEFORE TAXATION

1,002,685

578,803

Tax on profit

8

(24,131

)

(82,444

)

PROFIT FOR THE FINANCIAL YEAR

978,554

496,359

PROFIT FOR THE YEAR

978,554

496,359

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

978,554

496,359

FIXED ASSETS

Tangible assets

9

1,855,177

1,686,196

Investments

10

3,870

3,870

1,859,047

1,690,066

CURRENT ASSETS

Stocks

11

752,376

532,101

Debtors

12

7,062,320

5,983,399

Cash at bank

3,391,397

3,453,102

11,206,093

9,968,602

CREDITORS

Amounts falling due within one year

13

(4,455,728

)

(4,004,268

)

NET CURRENT ASSETS

6,750,365

5,964,334

TOTAL ASSETS LESS CURRENT LIABILITIES

8,609,412

7,654,400

PROVISIONS FOR LIABILITIES

17

(252,632

)

(276,174

)

NET ASSETS

8,356,780

7,378,226

CAPITAL AND RESERVES

Called up share capital

18

200,080

200,080

Capital redemption reserve

19

100,040

100,040

Retained earnings

19

8,056,660

7,078,106

SHAREHOLDERS' FUNDS

8,356,780

7,378,226

The financial statements were approved by the Board of Directors and authorised for issue on 19th December 2025 and were signed on its behalf by:

D Burton - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st April 2023

200,080

6,581,747

100,040

6,881,867

Changes in equity

Total comprehensive income

-

496,359

-

496,359

Balance at 31st March 2024

200,080

7,078,106

100,040

7,378,226

Changes in equity

Total comprehensive income

-

978,554

-

978,554

Balance at 31st March 2025

200,080

8,056,660

100,040

8,356,780

Cash flows from operating activities

Cash generated from operations

1

854,391

8,360

Interest paid

(26,600

)

(25,349

)

Interest element of hire purchase payments paid

(3,348

)

(6,627

)

Tax paid

(60,219

)

(337,055

)

Net cash from operating activities

764,224

(360,671

)

Cash flows from investing activities

Purchase of tangible fixed assets

(395,788

)

(333,309

)

Sale of tangible fixed assets

47,200

6,000

Interest received

76,651

58,953

Dividends received

30

30

Net cash from investing activities

(271,907

)

(268,326

)

Cash flows from financing activities

Capital repayments in year

(46,821

)

(43,267

)

Amount introduced by directors

692,242

578,241

Amount withdrawn by directors

(1,145,543

)

(589,090

)

Net cash from financing activities

(500,122

)

(54,116

)

Decrease in cash and cash equivalents

(7,805

)

(683,113

)

Cash and cash equivalents at beginning of year

2

3,399,202

4,082,315

Cash and cash equivalents at end of year

2

3,391,397

3,399,202

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

1,002,685

578,803

Depreciation charges

205,804

185,984

Loss/(profit) on disposal of fixed assets

4,803

(3,874

)

Finance costs

29,948

31,976

Finance income

(76,681

)

(58,983

)

1,166,559

733,906

Increase in stocks

(220,275

)

(98,404

)

Increase in trade and other debtors

(625,620

)

(763,178

)

Increase in trade and other creditors

533,727

136,036

Cash generated from operations

854,391

8,360

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st March 2025

31.3.25

1.4.24

£

£

Cash and cash equivalents

3,391,397

3,453,102

Bank overdrafts

-

(53,900

)

3,391,397

3,399,202

Year ended 31st March 2024

31.3.24

1.4.23

£

£

Cash and cash equivalents

3,453,102

4,082,315

Bank overdrafts

(53,900

)

-

3,399,202

4,082,315

3.	ANALYSIS OF CHANGES IN NET FUNDS

Other

non-cash

At 1.4.24

Cash flow

changes

At 31.3.25

£

£

£

£

Net cash

Cash at bank

3,453,102

(61,705

)

3,391,397

Bank overdrafts

(53,900

)

53,900

-

3,399,202

(7,805

)

3,391,397

Debt

Finance leases

(24,631

)

15,821

(31,000

)

(8,810

)

(24,631

)

15,821

(31,000

)

(8,810

)

Total

3,374,571

8,016

(31,000

)

3,382,587

1.	STATUTORY INFORMATION

West Scottish Lamb Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents the net invoiced sales of meat, services and by-products during the financial year under review excluding value added tax. With respect to sales of meat products, revenue is recognised based on date of despatch to customers.

In addition, turnover includes an element of service work where animals are slaughtered on behalf of a third party. Such income is recognised based on the date the work is carried out.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

4% on cost

Plant and machinery

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

15% on reducing balance

Amounts written off each asset over the estimated useful life represent cost less residual value.

The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period.

Stocks

Livestock is valued at specific invoiced cost. Meat stocks are valued at cost price also. By products are not valued due to the uncertainty of value at time of production. Consumables are valued at the lower of cost and net realisable value on a first in, first out basis.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Foreign currencies

Assets and liabilities in foreign currencies have been translated into sterling at the rate available to the company from its bank at the period end date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The company makes contributions to a workplace pension on behalf of employees and occasionally makes contributions to personal schemes on behalf of directors. Contributions payable to these schemes are charged to profit or loss in the period to which they relate.

Invoice financing

The company use Invoice Financing through RBS Invoice Finance Limited to accelerate the receipt of funds due from debtors. No rights are transferred to the finance provider, all benefits and risks remain with the company and all finance is potentially repayable therefore linked presentation is not appropriate. Accordingly debtors are disclosed in full within the balance sheet and the associated finance is included within creditors due within one year.

Financial instruments

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for the sale of services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price and represent the full value of the services charged to customers, including any amounts charged on for third parties.

Trade Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date they are presented as non current liabilities.

Borrowings

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

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

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

Share Capital

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

Provisions and contingencies

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probably that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably.

3.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Sale of goods

70,867,135

56,534,844

Rendering of services

274,255

410,666

71,141,390

56,945,510

An analysis of turnover by geographical market is given below:

2025

2024

£

£

United Kingdom

16,296,568

16,895,668

Europe

54,844,822

40,049,842

71,141,390

56,945,510

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

2,186,374

1,856,929

Social security costs

212,281

173,880

Other pension costs

42,684

38,013

2,441,339

2,068,822

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

2025

2024

Directors

2

2

Management staff

3

3

Administrative staff

4

3

Production staff

54

63

63

71

5.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

44,703

68,503

6.	OPERATING PROFIT

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

2025

2024

£

£

Hire of plant and machinery

106,400

99,946

Depreciation - owned assets

201,929

166,847

Depreciation - assets on hire purchase contracts

3,875

19,139

Loss/(profit) on disposal of fixed assets

4,803

(3,874

)

Auditors' remuneration

30,938

14,000

Foreign exchange differences

(166,702

)

76,509