Ethos Farm Limited Company accounts

COMPANY REGISTRATION NUMBER: 10378647

ETHOS FARM LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 December 2024

ETHOS FARM LIMITED

FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2024

Contents	Page

Strategic report	1

Directors' report	5

Independent auditor's report to the member	8

Profit and loss account	11

Balance sheet	12

Statement of changes in equity	13

Notes to the financial statements	14

ETHOS FARM LIMITED

STRATEGIC REPORT

YEAR ENDED 31 DECEMBER 2024

REVIEW OF THE BUSINESS At Ethos Farm, we believe people are the differentiator and the biggest influencing factor on customer's experience with an organisation's product or service. We are huge proponents of the philosophy that employee experience = customer experience (EX = CX) and therefore investment in the people who work for companies is fundamental to delivering world-class experiences for their customers. - Our brand purpose is to cultivate extraordinary experiences for employees, customers and clients. - Our brand mission is to put people at the heart of every great experience. We're on a mission to empower employees to deliver extraordinary customer service, creating loyalty and differentiation for brands. - Our brand vision is to inspire and deliver exceptional customer experiences by unleashing the power and potential of brands and their people. The principal activities of the business during the year were split across three core pillars: 1. Customer & Employee Experience Consultancy We provide advice to organisations who wish to elevate their customer experience standards and differentiate their business proposition, particularly in relation to customer-facing teams whether insourced or outsourced. We are proud to develop strategies, craft CX roadmaps and create service values and behaviours to win customer loyalty and drive consistency across all customer touchpoints. Our consultancy clients this year included some globally recognised brands including Eurostar, Harrods and the V&A Museums. Our expertise in this pillar was recognised throughout the year, most notably with Founder & CEO Sally Alington picking up the CX Leader of the Year at the UK Customer Experience Awards 2024 and being a finalist in the EY Entrepreneur of the Year 2024. Our Consultancy pillar can act as a standalone business unit or in conjunction with our other core solutions such as training and people solutions, depending on specific client requirements and the contractual scope of services. 2. Customer Experience Learning & Innovation We intentionally put 'learning' and 'innovation' together because we believe in immersive training techniques to enhance learning experiences and increase knowledge retention. These techniques include VR training, multilingual AI avatars and gamification. Our team spans instructional designers, e-learning and face-to-face training developers and facilitators. Throughout 2024, we worked with clients such as The Imperial War Museum, KFC and Birmingham Airport to deliver exceptional learning solutions for their frontline workforces. We retained our CPD accreditation which is not only a quality seal for being a centre of learning excellence but also gives our clients the opportunity to offer training which enables learners to attain Continuous Professional Development credits. Our Learning & Innovation pillar can act as a standalone business unit or in conjunction with our other core solutions such as consultancy and people solutions, depending on specific client requirements and the contractual scope of services. 3. Customer Experience People Solutions The third pillar of Ethos Farm was our highest revenue stream during the year, albeit with a lower gross profit margin compared to the other pillars due to the costs associated with delivering outsourced staffing and manpower solutions. In the wake of Covid pandemic, many large customer facing organisations have struggled with recruiting and retaining workforces. Many have opted to work with Ethos Farm to look after the provision of their customer service and guest experience teams. 'Walking the Talk' is very important to us given that we often advise organisations on how to elevate employee experience to deliver the best possible customer experience. Our badge of honour in this space was renewed again this year, achieving Great Place to Work™ accreditation for a third year in a row. Over and above this accreditation, we were proud to also be listed in the Best Workplaces 2024 for Retail, Hospitality and Leisure. Our People Solutions pillar acts as a standalone business unit but more often includes specific support from our Learning & Innovations Team and sometimes aligned to a CX Strategy and Standard we have created for a client.

PRINCIPAL RISKS AND UNCERTAINTIES Risk management is addressed through a risk register, online RM portal and RM processes that enable us to develop internal controls. These are reviewed by the Directors and the Senior Leadership Team (SLT) on a monthly basis. We have also taken the first step during the year to begin our journey to ISO45001 certification. Business risks identified for the year ahead included a reduced gross profit margin due to the mix of business which, despite growing revenue and opportunities, diluted the margin percentage compared to the previous year. The net profit margin percentage decreased during the year due to reinvestment of profits into building a Senior Leadership Team to continue to drive growth. This saw corporate overheads rise, most notably in terms of employee salaries, all of which were predicted and expected changes. However, government changes to Employer's National Insurance contributions in the October 2024 budget also impacted the business as it becomes more costly to employ people and may push some of our 'People Solutions' clients to reduce the headcount we provide for them. The Company maintains a close eye on this situation and continues to ensure that prioritisation of our top line growth doesn't negatively impact our bottom-line business performance. Uncertainties across the various markets we work in are always key considerations, however our strategy to diversify our solutions and broaden the industries we serve ultimately derisks the business to a large degree. Another risk that we have identified is the growth of AI and the question of AI as a replacement to human involvement in customer experience. This is a risk we see as a huge opportunity which we outline in the Future Developments section. It should be noted that The Company makes it a priority to be on top of developments in the AI CX world and is aiming to become a thought leader and trailblazer in this area. Foreign Exchange Risk Prior to 2022, there was an element of risk associated with fluctuations in exchange rates, in particular GBP to USD as all Americas trading was handled through the UK entity. Since April 2022 however, this risk has been dramatically reduced with the establishment of a separate USA Entity (Ethos Farm Americas Inc.) meaning Ethos Farm Limited is not impacted to the same degree. Some trading still takes place between the UK entity, Ethos Farm Limited, and clients in the Americas, for example where the UK Learning & Innovation Team deliver solutions for Americas-based clients. Other overseas work undertaken by the UK entity outside of the Americas is primarily focused in the GCC where foreign exchange rates are incredibly stable and often pegged with minimal fluctuation to GBP. KEY FINANCIAL PERFORMANCE INDICATORS We consider that our key financial performance indicators are those that communicate the performance and strength of the company as a whole, namely our strong growth in turnover and three-year CAGR as follows:

2024	2023	2022
£	£	£

Turnover	26,571,573	20,874,264	10,635,692

3 Year CAGR	160%

This excellent performance of the company was recognised in 2024 with a second consecutive listing in the Sunday Times 100, the Fastest Growing Private Companies in the UK, moving up from position 38 in 2023 to becoming the 12th fastest growing private company as listed in the ST100. For a second year, the Sunday Times featured Ethos Farm's Founder & CEA Sally Alington, highlighting Ethos Farm as a global leader in the Customer Experience space. The leadership of the business was further recognised by by the Sunday Times awarding the ST100 & Inflexion Leadership Award 2024.

KEY NON-FINANCIAL PERFORMANCE INDICATORS Our non-financial KPIs include awards, accreditations and the recognition we receive for industry bodies and during the year these were some of our highlights: - Founder and CEO Sally Alington - Winner, UK Customer Experience Leader of the Year 2024 (UK CXA) - The Sunday Times 100 & Inflexion Leadership Award 2024 - Ethos Farm - Best Customer Service through Employee Engagement 2024 (Engage Awards 2024) - Retention of our CPD Training accreditation and recognition as a dual centre of excellence for learning - Retention of our Forbes Business Council Membership and Thought Leadership in Forbes Magazine - Retention of Safe Contractor Accreditation for a third year - Retention of Great Place to Work Accreditation for a third year - Achieving Supply Chain Sustainability School Silver Level We also take huge pride in the Service Level Agreement Review meetings we have with our clients monthly, quarterly and annually. This year we saw an overwhelming response from our clients to the quality of solutions we provided with exceptional scores and feedback from both our clients and their customers. This is a real measure of the strength of relationships we build and our commitment to always delivering over and above expectation. FUTURE DEVELOPMENTS As highlighted in the 2023 report, AI becomes ever more a hot topic in the customer experience industry and it remains our vision to ensure we stay on top of developments in this sector through our research and development of technology solutions that can ultimately elevate experiences for employees, customers and our clients. During this year we continued to build our Data & Insights team which we intend to formally launch in 2025 by acquiring more talent and continue to test and trial AI, Machine Learning, Open-Source Data, and keep building our own proprietary data-lake based management system. We continue to see opportunities for our UK entity and expertise in the GCC where customer experience is becoming increasingly prominent as Middle Eastern economies diversify and seek to attract larger numbers of international tourists.

This report was approved by the board of directors on 31 December 2025 and signed on behalf of the board by:

S A Alington

Director

Registered office:

2 Crossways Business Centre

Bicester Road

Kingswood

Aylesbury

England

HP18 0RA

ETHOS FARM LIMITED

DIRECTORS' REPORT

YEAR ENDED 31 DECEMBER 2024

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

Directors

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

S A Alington
M J Garner

M J Garner resigned as a director on 10 June 2025. L S Walsh was appointed as a director on 29 July 2025.

Dividends

Particulars of recommended dividends are detailed in note 12 to the financial statements.

Employment of disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of staff members becoming disabled, every effort is made to ensure that their employment with the company continues and that appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

Over and above our strong trading performance, we are proud to say that the Company endeavoured to generate positive social impact in the work we undertook. We launched our new CSR Strategy with a clearly defined aim: "To create positive impact for our People, the Planet and the Communities we're part of, while helping our clients to flourish and achieve their own CSR goals." The CSR Strategy outlines 3 priorities, 14 commitments and 12 objectives which will take us to 2028, and throughout the year we researched and developed ways in which we could collect data to provide insights and allow us to measure our performance against those targets. This work involving building bespoke technology using Microsoft Fabric and Power BI means that we have tangible achievements to report for 2024 including: - During 2024, 83% of Ethos Farm's colleagues commute to work by sustainable transport - During 2024, we spent 1,340 hours supporting local charities and community projects - During 2024, we facilitated more than 230 work experience days for young people in the communities where we work - During 2024, we donated 1,100 items to food banks and books for charity - During 2024, we organised for 2,200 items of lost property at the sites we manage to be donated to charity - During 2024, we exceeded all client targets for local recruitment - During 2024, we achieved Supply Chain Sustainability School Silver Level We have also built an incredible network of partnerships with organisations we enjoyed supporting during the year. This includes: You Make It Mentoring, The Thomas Pocklington Trust, LandAid, West London College, Royal Association for Deaf People, The Down's Syndrome Association. In addition to this, Founder and CEO Sally Alington became an Everywoman Ambassador and Everywoman Awards judge to support female entrepreneurs. Our commitments don't end there. As a business where travel is involved, we have made a commitment to offset our carbon associated with flying as follows: - 90% through certified reforestation - 10% by purchasing sustainable aviation fuel (SAF)

Disclosure of information in the strategic report

The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by Medium-sized Companies (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the director's report. It has done so in respect of future developments and financial risk management.

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 company and 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 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. Statement of disclosure of information to auditors

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 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 company's auditor is aware of that information.

This report was approved by the board of directors on 31 December 2025 and signed on behalf of the board by:

S A Alington

Director

Registered office:

2 Crossways Business Centre

Bicester Road

Kingswood

Aylesbury

England

HP18 0RA

ETHOS FARM LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBER OF ETHOS FARM LIMITED

YEAR ENDED 31 DECEMBER 2024

Opinion

We have audited the financial statements of Ethos Farm Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, balance sheet, statement of changes in equity 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 company's affairs as at 31 December 2024 and of its 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor'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: - Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; - Challenging assumptions and judgements made by management in their significant accounting estimates; - Identifying and testing journal entries, in particular any manual journal entries posted by unexpected users, posted with descriptions indicating a higher level of risk, or posted late with a favourable impact on financial performance. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. A further description of our responsibilities 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 auditor’s report. Use of our report

This report is made solely to the company's member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.

W J E Kerr

(Senior Statutory Auditor)

For and on behalf of

Xeinadin Audit Limited

Chartered Accountants & Statutory Auditor

2 Crossways Business Centre

Bicester Road

Kingswood

Aylesbury

Bucks

HP18 0RA

31 December 2025

ETHOS FARM LIMITED

PROFIT AND LOSS ACCOUNT

YEAR ENDED 31 DECEMBER 2024

		2024	2023
Note		£	£
Turnover	4	26,571,573	20,874,624

Cost of sales	( 21,639,802)	( 16,515,594)
	------------	------------
Gross profit	4,931,771	4,359,030

Administrative expenses		( 4,055,415)	( 3,319,615)
		-----------	-----------
Operating profit	5	876,356	1,039,415

Other interest receivable and similar income	9	24,270	6,499
Interest payable and similar expenses	10	( 11,208)	( 14,373)
		-----------	-----------
Profit before taxation		889,418	1,031,541

Tax on profit	11	( 229,715)	( 249,056)
		--------	-----------
Profit for the financial year and total comprehensive income		659,703	782,485
		--------	-----------

All the activities of the company are from continuing operations.

ETHOS FARM LIMITED

BALANCE SHEET

31 December 2024

	2024		2023
Note	£	£	£	£

Fixed assets

Tangible assets	13		167,222		140,935

Current assets

Stocks	14	4,462	4,462
Debtors	15	6,180,724	5,912,989
Cash at bank and in hand		1,232,198	340,970
		-----------	-----------
		7,417,384	6,258,421

Creditors: amounts falling due within one year	16	( 4,653,711)		( 3,924,473)
		-----------		-----------
Net current assets			2,763,673		2,333,948
			-----------		-----------
Total assets less current liabilities			2,930,895		2,474,883

Creditors: amounts falling due after more than one year	17		( 27,023)		( 80,272)

Provisions

Taxation including deferred tax	18	( 1,253)	( 21,695)
		-----------	-----------
Net assets		2,902,619	2,372,916
		-----------	-----------

Capital and reserves

Called up share capital	21	143	143
Share premium account	22	659,957	659,957
Profit and loss account	22	2,242,519	1,712,816
		-----------	-----------
Shareholder funds		2,902,619	2,372,916
		-----------	-----------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 31 December 2025 , and are signed on behalf of the board by:

S A Alington

Director

Company registration number: 10378647

ETHOS FARM LIMITED

STATEMENT OF CHANGES IN EQUITY

YEAR ENDED 31 DECEMBER 2024

		Called up share capital	Share premium account	Profit and loss account	Total
		£	£	£	£
At 1 January 2023		143	659,957	1,149,331	1,809,431

Profit for the year				782,485	782,485
		----	--------	-----------	-----------
Total comprehensive income for the year		–	–	782,485	782,485

Dividends paid and payable	12	–	–	( 219,000)	( 219,000)
		----	--------	-----------	-----------
Total investments by and distributions to owners		–	–	( 219,000)	( 219,000)

At 31 December 2023		143	659,957	1,712,816	2,372,916

Profit for the year				659,703	659,703
		----	--------	-----------	-----------
Total comprehensive income for the year		–	–	659,703	659,703

Dividends paid and payable	12	–	–	( 130,000)	( 130,000)
		----	----	--------	--------
Total investments by and distributions to owners		–	–	( 130,000)	( 130,000)

		----	--------	-----------	-----------
At 31 December 2024		143	659,957	2,242,519	2,902,619
		----	--------	-----------	-----------

ETHOS FARM 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 England and Wales. The address of the registered office is 2 Crossways Business Centre, Bicester Road, Kingswood, Aylesbury, HP18 0RA, England. The principal place of business is Myrtle House, Hampton Court Road, Hampton Court, Richmond Upon Thames, KT8 9BY.

2. Statement of compliance

The principal activities of the company during the period were customer and employee experience consultancy, learning and innovation and people solutions. 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. The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts in these financial statements are rounded to the nearest pound. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Ethos Farm Holdings Limited which can be obtained from Companies House, Crown Way, Cardiff CF14 3UZ. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Disclosures in respect of financial instruments have not been presented. (c) No disclosure has been given for the aggregate remuneration of key management personnel.

Judgements and key sources of estimation uncertainty

In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ. 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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. Critical judgements in applying the company's accounting policies The critical judgements that the directors have made in the progress of applying the company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below. (i) Assessing indicators of impairment In assessing whether there have been any indicators of impairment of assets, the directors have considered both internal and external sources of information such as market conditions, counterparty credit ratings and experience recoverability. There have been no indicators of impairments identified during the current financial year. Key sources of estimation uncertainty The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below. (ii) Recoverability of receivables The company establishes a provision for receivables that are estimated not to be recoverable. When assessing recoverability, the directors consider factors such as the ageing of the receivables, past experience of recoverability, and the credit profile of individual or groups of customers. Judgement is applied by management when determining the residual values for plant, machinery and equipment. When determining the residual value management aim to assess the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax. When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period.

Income 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.

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:

Leasehold improvements	-	10% straight line
Equipment	-	25 % straight line

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.

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.

Financial instruments

The company has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments. Basic financial assets, which include trade, other receivables, amounts owed by fellow group undertakings and bank balances, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. Basic financial liabilities, which include trade, other payables and a bank loan, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade payables 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 payment is due within one year of less. If not, then they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Research and development

Expenditure on research and development is written off as incurred.

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.

Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

Distributions to equity holders

Dividends and other distributions to the company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the shareholders. These amounts are recognised in the statement of changes in equity.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Sale of goods	–	84,513
Rendering of services	26,571,573	20,790,111
	------------	------------
	26,571,573	20,874,624
	------------	------------

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

5. Operating profit

Operating profit or loss is stated after charging/crediting:

	2024	2023
	£	£
Depreciation of tangible assets	55,893	30,371
Impairment of trade debtors	792	(792)
Foreign exchange differences	12,570	31,953
	-------	-------

6. Auditor's remuneration

	2024	2023
	£	£
Fees payable for the audit of the financial statements	35,000	30,000
	-------	-------

7. Staff costs

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

	2024	2023
	No.	No.
Production staff	698	571
Administrative staff	30	25
Management staff	2	2
	----	----
	730	598
	----	----

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

	2024	2023
	£	£
Wages and salaries	19,890,357	14,575,907
Social security costs	1,795,153	1,221,929
Other pension costs	450,373	241,205
	------------	------------
	22,135,883	16,039,041
	------------	------------

8. Directors' remuneration

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

	2024	2023
	£	£
Remuneration	286,900	332,508
Company contributions to defined contribution pension plans	66,960	37,040
	--------	--------
	353,860	369,548
	--------	--------

Remuneration of the highest paid director in respect of qualifying services:

	2024	2023
	£	£
Aggregate remuneration	204,229	229,263
	--------	--------

9. Other interest receivable and similar income

	2024	2023
	£	£
Interest on cash and cash equivalents	11,694	6,384
Other interest receivable and similar income	12,576	115
	-------	------
	24,270	6,499
	-------	------

10. Interest payable and similar expenses

	2024	2023
	£	£
Interest on banks loans and overdrafts	11,114	14,373
Other interest payable and similar charges	94	–
	-------	-------
	11,208	14,373
	-------	-------

11. Tax on profit

Major components of tax expense

	2024	2023
	£	£

Current tax:

UK current tax expense	250,157	258,402
Adjustments in respect of prior periods	–	( 20,982)
	--------	--------
Total current tax	250,157	237,420
	--------	--------

Deferred tax:

Origination and reversal of timing differences	( 20,442)	11,636
	--------	--------
Tax on profit	229,715	249,056
	--------	--------

Reconciliation of tax expense

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

	2024	2023
	£	£
Profit on ordinary activities before taxation	889,418	1,031,541
	--------	-----------
Profit on ordinary activities by rate of tax	222,355	257,885
Adjustment to tax charge in respect of prior periods	–	( 20,982)
Effect of expenses not deductible for tax purposes	7,360	25,458
Effect of different UK tax rates on some earnings	–	(16,254)
Investment tax credit	–	( 228)
Adjustment to opening deferred tax to standard rate	–	3,177
	--------	-----------
Tax on profit	229,715	249,056
	--------	-----------

An increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) was substantively enacted on 24 May 2021. The deferred tax liability at 31 December 2024 has been calculated at 25% (2023: 25%).

12. Dividends

	2024	2023
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	130,000	219,000
	--------	--------

13. Tangible assets

	Leasehold improvements	Equipment	Total
	£	£	£
Cost
At 1 January 2024	62,440	183,468	245,908
Additions	–	82,180	82,180
	-------	--------	--------
At 31 December 2024	62,440	265,648	328,088
	-------	--------	--------
Depreciation
At 1 January 2024	35,036	69,937	104,973
Charge for the year	6,245	49,648	55,893
	-------	--------	--------
At 31 December 2024	41,281	119,585	160,866
	-------	--------	--------
Carrying amount
At 31 December 2024	21,159	146,063	167,222
	-------	--------	--------
At 31 December 2023	27,404	113,531	140,935
	-------	--------	--------

14. Stocks

	2024	2023
	£	£
Raw materials and consumables	4,462	4,462
	------	------

15. Debtors

	2024	2023
	£	£
Trade debtors	2,493,374	3,420,295
Amounts owed by group undertakings	866,936	743,846
Prepayments and accrued income	2,811,915	1,726,849
Other debtors	8,499	21,999
	-----------	-----------
	6,180,724	5,912,989
	-----------	-----------

Other debtors include £8,500 (2023: £8,500) due after more than one year.

16. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	53,998	51,473
Trade creditors	523,407	252,655
Accruals and deferred income	1,030,302	1,307,188
Corporation tax	70,687	112,080
Social security and other taxes	1,561,274	964,066
Director loan accounts	1,158	1,158
Other creditors	1,412,885	1,235,853
	-----------	-----------
	4,653,711	3,924,473
	-----------	-----------

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

	2024	2023
	£	£
Bank loans and overdrafts	27,023	80,272
	-------	-------

18. Provisions

	Deferred tax (note 19)
	£
At 1 January 2024	21,695
Amounts recognised in profit and loss account	( 20,442)
	-------
At 31 December 2024	1,253
	-------

19. Deferred tax

The deferred tax included in the balance sheet is as follows:

	2024	2023
	£	£
Included in provisions (note 18)	1,253	21,695
	------	-------

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

	2024	2023
	£	£
Accelerated capital allowances	39,957	32,645
Other short term timing differences	(38,704)	(10,950)
	-------	-------
	1,253	21,695
	-------	-------

20. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 383,413 (2023: £ 204,165 ).

21. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
A Ordinary shares of £ 0.01 each	10,000	100	10,000	100
B Ordinary shares of £ 0.01 each	4,286	43	4,286	43
	-------	----	-------	----
	14,286	143	14,286	143
	-------	----	-------	----

22. Reserves

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses.

23. Operating leases and off balance sheet arrangements

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2024	2023
	£	£
Not later than 1 year	485,153	333,853
Later than 1 year and not later than 5 years	434,919	642,689
	--------	--------
	920,072	976,542
	--------	--------

The leases relate to property. The amount recognised in the profit and loss account as an expense in relation to operating leases was £453,632 (2023: £70,226).

24. Related party transactions

Information about related party transactions and outstanding balances are outlined below:

	2024	2023
	£	£

Amounts owed to key management personnel	1,158	1,158

The company is exempt from disclosing other related party transactions as they are with wholly owned subsidiaries.

25. Controlling party

The immediate and ultimate parent company is Ethos Farm Holdings Limited, a company incorporated in England and Wales. Ethos Farm Holdings Limited heads the smallest and largest group to prepare consolidated financial statements which include Ethos Farm Limited. The address of the registered office for Ethos Farm Holdings Limited is 2 Crossways Business Centre, Bicester Road, Kingswood, Aylesbury, Bucks. HP18 0RA. The consolidated financial statements of Ethos Farm Holdings Limited can be obtained from Companies House, Crown Way, Cardiff CF14 3UZ. The ultimate controlling party is the director S A Alington .