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Reco JCB Limited
Annual Report and Financial Statements
Year Ended 31 March 2025

Registration number: 13244893

Reco JCB Limited

Contents

Company Information | 1
Strategic Report | 2 to 3
Directors' Report | 4 to 5
Statement of Directors' Responsibilities | 6
Independent Auditor's Report | 7 to 10
Profit and Loss Account | 11
Balance Sheet | 12
Statement of Changes in Equity | 13
Statement of Cash Flows | 14
Notes to the Financial Statements | 15 to 27

Reco JCB Limited

Company Information

Directors | Mr R A J Parris Mr N J Heal Mr J Nichols Mrs R J Flynn

Company secretary | Mr L Heal

Registered office | A37 Gurney Slade Radstock Somerset BA3 4UU

Auditors | PKF Francis Clark Statutory AuditorGround Floor Blackbrook Gate 1 Blackbrook Business Park Taunton TA1 2PX

Reco JCB Limited

Strategic Report for the Year Ended 31 March 2025

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

Principal activity

The principal activity of the company is the wholesale of agricultural machinery, equipment and supplies.

RECO JCB Limited is the UK’s first solely Agricultural JCB franchise and operates as a partnership between Redlynch Agricultural Engineering Limited and Compass Tractors Limited. It’s main premises is based at Gurney Slade, Somerset, but the company operates out of 4 further sites alongside the partner businesses - Compass Tractors at Bridgwater, Somerset and Redlynch Agricultural Engineering based at Bruton, Somerset, Milborne St Andrew, Dorset and Stoford, Wiltshire. All five depots sell and service new and used JCB agricultural machinery and parts covering Somerset, Dorset, Wiltshire, Hampshire and the New Forest.

Fair review of the business

The directors are pleased with the performance overall and growth in the aftersales department in the year to 31 March 2025. Overall, 2024/25 provided a good year for RECO and in line with the directors’ previous expectations of the market. Various factors (Acute price sensitivity, political factors, interest rates and inclement weather) impacted the slight reduction in turnover value and volume of new and used JCB agricultural machinery.
The directors consider turnover, gross profitability and market share to be key performance indicators and these are monitored throughout the year by the management team. The company reports a drop in turnover of 9.4% to £22,187,195 (2024 £24,481,037) but an increase in gross profit percentage to 7.46% (£1,655,725); (2024 6.07% (1,487,586)). The increased margin is mainly driven by further growth in the aftersales department coupled with a focus on increased efficiencies as we enter our 5th year of trade. Despite this fall in overall demand our JCB market share remained very strong at 59% (2024 57%).
During the year the company continued to focus on strategies to improve processes and increase efficiency after an exceptionally busy start-up period, recruitment of staff into key positions to ensure breadth and depth across the teams and overall stock management.
The company continued to monitor working capital and cashflow very closely during the year and the company has reduced its overall stock, whilst repaying long term debt and better monitoring trade debtors hence an increase in cash.
The company’s principal financial instruments are bank accounts, bank loans, trade debtors and trade creditors and these are actively monitored on a daily basis to aid the working capital of the company and manage liquidity risk. The company is in a strong financial position which can be seen on page 12 and it is operating well within its agreed bank facility, so solvency is not considered an issue.

Reco JCB Limited

Strategic Report for the Year Ended 31 March 2025

Principal risks and uncertainties

The principal risk and uncertainty for the company is derived from the changeability of the agricultural industry as a whole. Weather, regulations and government policies (both from within the UK and EU) can make commodity prices fluctuate. The company is reliant upon the continued profitability and confidence in the farming industry as a whole to maintain current levels of financial performance into the future. The directors have significant experience of the agricultural industry and are very aware of the potential volatility. Not only are the directors committed to the success of the company, but also the success of their customers as they recognise the mutual benefit this brings.
The company believes that the risk of only having one franchise and brand is mitigated by the strength of that brand. JCB is a UK based, global brand with an excellent reputation, broad product offerings and quality manufacturing. On the contrary, our strong franchise brand and excellent relationship with JCB are seen as a key strength of the company by the directors.

Approved by the Board on 23 October 2025 and signed on its behalf by:

......................................... Mr R A J Parris Director ......................................... Mrs R J Flynn Director | ......................................... Mr N J Heal Director | ......................................... Mr J Nichols Director

Reco JCB Limited

Directors' Report for the Year Ended 31 March 2025

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

Directors of the company

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

Mr R A J Parris

Mr N J Heal

Mr J Nichols

Mrs R J Flynn

Financial instruments

Objectives and policies

The company finances its operations through a mixture of capital, retained profit and other borrowings. In managing the financial risks faced by the company, the directors aim to retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due whilst maximising returns on surplus funds.

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

The company's principal financial instruments comprise of bank balances, bank overdrafts, trade creditors, stocking facility, trade debtors and hire purchase and these are used to manage the company's working capital requirements. Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances, the directors aim to retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Future developments

The company intends to continue to invest in key staff and internal efficiencies to ensure it remains robust and competitive in the industry.

Reco JCB Limited

Directors' Report for the Year Ended 31 March 2025

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 23 October 2025 and signed on its behalf by:

......................................... Mr R A J Parris Director ......................................... Mrs R J Flynn Director | ......................................... Mr N J Heal Director | ......................................... Mr J Nichols Director

Reco JCB Limited

Statement of Directors' Responsibilities

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

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

• | select suitable accounting policies and apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

• | state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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

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

Reco JCB Limited

Independent Auditor's Report to the Members of Reco JCB Limited

Opinion

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

In our opinion the financial statements:

• | give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit for the year then ended;
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• | have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 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.

Reco JCB Limited

Independent Auditor's Report to the Members of Reco JCB Limited

Opinion on other matter prescribed by the Companies Act 2006

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

• | the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

Matters on which we are required to report by exception

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

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 6, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

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

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

Reco JCB Limited

Independent Auditor's Report to the Members of Reco JCB Limited

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we discussed with management the laws and regulations applicable to the company, reviewed certification identified on the company website and other communications and considered findings from previous audits.
The key laws and regulations we identified were Health & Safety at Work legislation, Supply of Machinery (Safety) Regulations 2008, and the Financial Conduct Authority (FCA) regulations.
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily Companies Act 2006, and the Corporation Taxes Acts 2009 & 2010.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deal with reporting any issues if they arise. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue trading and the risk of material misstatement to the financial statements.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
• Review of any health and safety incidents which have been reported under The Reporting of Injuries, Diseases and Dangerous Occurrences Regulations 2013 ("RIDDOR") during the year;
• Review of returns to the FCA for consistency with financial records of the company and any non-compliance; and
• Review of legal and professional costs to identify any possible non-compliance or legal costs in
respect of non-compliance.
As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which management confirmed there had been none during or after the period.
We also evaluated the risk of fraud through management override including that arising from management incentives. The key risks we identified were incentives relating to reduction of profits in order to minimise the company’s tax liability, and we determined that the principle risks were related to the understatement of profits and revenue recognition, either through overstating expenditure or management bias in accounting estimates.
In response to the identified risk, as part of our audit work we:
• Used data analytics to test journal entries throughout the year, for appropriateness;
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates; and
• Undertook specific cut-off procedures in respect of revenue recognition.

Reco JCB Limited

Independent Auditor's Report to the Members of Reco JCB Limited

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. 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 omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

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

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.

......................................
Robert Deare (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor
Ground Floor
Blackbrook Gate 1
Blackbrook Business Park
Taunton
TA1 2PX

4 November 2025

Reco JCB Limited

Profit and Loss Account

Year Ended 31 March 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 22,187,195 | 24,481,037
Cost of sales |  | (20,531,470) | (22,993,451)
Gross profit |  | 1,655,725 | 1,487,586
Administrative expenses |  | (713,166) | (738,932)
Other operating income |  | 7,782 | -
Operating profit |  | 950,341 | 748,654
Interest payable and similar expenses | 7 | (47,398) | (61,162)
Profit before tax |  | 902,943 | 687,492
Tax on profit | 8 | (232,001) | (186,181)
Profit for the financial year |  | 670,942 | 501,311

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Reco JCB Limited

Balance Sheet

31 March 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 9 | 1,405,819 | 1,308,513
Current assets |  |  |
Stocks | 10 | 4,063,290 | 3,606,872
Debtors | 11 | 3,160,901 | 1,684,601
Cash at bank and in hand |  | 856,225 | 144
|  | 8,080,416 | 5,291,617
Creditors: Amounts falling due within one year | 13 | (6,162,050) | (3,835,597)
Net current assets |  | 1,918,366 | 1,456,020
Total assets less current liabilities |  | 3,324,185 | 2,764,533
Creditors: Amounts falling due after more than one year | 13 | (360,735) | (495,445)
Provisions for liabilities | 15 | (205,090) | (176,940)
Net assets |  | 2,758,360 | 2,092,148
Capital and reserves |  |  |
Called up share capital |  | 100 | 100
Profit and loss account |  | 2,758,260 | 2,092,048
Shareholders' funds |  | 2,758,360 | 2,092,148

Approved and authorised by the Board on 23 October 2025 and signed on its behalf by:

......................................... Mr R A J Parris Director ......................................... Mrs R J Flynn Director | ......................................... Mr N J Heal Director | ......................................... Mr J Nichols Director

Company Registration Number: 13244893

Reco JCB Limited

Statement of Changes in Equity

Year Ended 31 March 2025

| Share capital £ | Profit and loss account £ | Total £
At 1 April 2024 | 100 | 2,092,048 | 2,092,148
Profit for the year | - | 670,942 | 670,942
Dividends | - | (4,730) | (4,730)
At 31 March 2025 | 100 | 2,758,260 | 2,758,360

| Share capital £ | Profit and loss account £ | Total £
At 1 April 2023 | 100 | 1,590,737 | 1,590,837
Profit for the year | - | 501,311 | 501,311
At 31 March 2024 | 100 | 2,092,048 | 2,092,148

Reco JCB Limited

Statement of Cash Flows

Year Ended 31 March 2025

| Note | 2025 £ | 2024 £
Cash flows from operating activities
Profit for the year |  | 670,942 | 501,311
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation |  | 126,498 | 100,613
(Profit)/loss on disposal of tangible assets |  | (32,286) | 387
Finance costs | 7 | 47,398 | 61,162
Income tax expense | 8 | 232,001 | 186,181
|  | 1,044,553 | 849,654
Working capital adjustments |  |  |
(Increase)/decrease in stocks | 10 | (456,418) | 517,252
(Increase)/decrease in trade debtors | 11 | (1,476,300) | 952,220
Decrease in trade creditors | 13 | (43,748) | (1,637,684)
Increase/(decrease) in deferred income, including government grants |  | 2,468,707 | (421,312)
Cash generated from operations |  | 1,536,794 | 260,130
Income taxes paid | 8 | (164,230) | (259,872)
Net cash flow from operating activities |  | 1,372,564 | 258
Cash flows from investing activities |  |  |
Acquisitions of tangible assets |  | (291,018) | (194,480)
Proceeds from sale of tangible assets |  | 99,500 | 24,000
Net cash flows from investing activities |  | (191,518) | (170,480)
Cash flows from financing activities |  |  |
Interest paid | 7 | (47,398) | (61,162)
Proceeds from bank borrowing draw downs |  | (134,710) | (123,474)
Payments to finance lease creditors |  | (86,759) | 86,759
Dividends paid | 17 | (4,730) | -
Net cash flows from financing activities |  | (273,597) | (97,877)
Net increase/(decrease) in cash and cash equivalents |  | 907,449 | (268,099)
Cash and cash equivalents at 1 April |  | (51,224) | 216,875
Cash and cash equivalents at 31 March |  | 856,225 | (51,224)

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
A37 Gurney Slade
Radstock
Somerset
BA3 4UU
United Kingdom

These financial statements were authorised for issue by the Board on 23 October 2025.

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

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

Basis of preparation

The financial statements have been prepared using the historical cost convention.
The functional currency of the company is considered to be pounds sterling because this is the currency of the primary economic environmnet in which the company operates, and the financial statements are presented to the nearest round pound

Going concern

The company made a profit for the year of £670,942 and reported net current assets of £1,918,366 at the balance sheet date.
The company is highly profitable, but the nature of the business and sector is such that the working capital cycle is generally long and a significant working capital investment in stock is required to operate profitability. This can result in periods of limited headroom within the company's existing facilities, which comprise a bank overdraft, bank loan and a stocking plan. Whilst the company operates within a sector which makes reliable forecasting extremely difficult, both in terms of sales activity and cash conversion, the directors are highly experienced in managing such periods. The company also benefits from long-standing relationships with its bankers, key customers and key supplier.

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

Key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised 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.
The key judgement in relation to the financial statements is that of going concern. The directors are satisfied with the trading performance and position of the company and that the going concern basis of preparation remains appropriate. In making this assessment the directors have considered their expectations for the 12 months following approval of these financial statements and also the ongoing availability of overdraft facilities which are next due for renewal in November 2025 and are subject to a fixed and floating charge over the company’s assets. The directors have also considered the relationship with the franchisor, which remains strong.
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are as follows.

Stock is measured at the lower of cost and net realisable value. This requires estimation as to the net realisable value of each stock line, as to whether a provision is required. The carrying amount is £4,063,290 (2024 - £3,606,872).

Trade debtors are constantly being managed and are reviewed throughout the year. A provision for doubtful debts is made where recovery of debt is uncertain, this is on a case by case basis. The carrying amount is £2,680,914 (2024 - £1,075,285).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
Revenue relating to the sale of goods is recognised in the profit and loss account on delivery or collection. Where customers are invoiced prior to delivery of goods a deferred income balance arises which is included within accruals and deferred income within current liabilities.
Revenue relating to the sale of services is recognised in the profit and loss account when the service
has been provided.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

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

Asset class | Depreciation method and rate
Land and buildings | 2% reducing balance
Plant and machinery | 15% reducing balance
Motor vehicles | 25% reducing balance
Office equipment | 25% reducing balance

Stocks

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Cost represents the purchase price of goods for resale, net any discounts receivable.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

3 | Turnover

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

| 2025 £ | 2024 £
Sale of goods | 19,761,879 | 22,542,376
Rendering of services | 1,472,430 | 1,286,612
Leasing of equipment | 29,387 | 20,110
Incentives and bonuses received | 923,499 | 631,939
| 22,187,195 | 24,481,037

The analysis of the company's Turnover for the year by class of business is as follows:

| 2025 £ | 2024 £
New and used JCB Sales | 16,409,802 | 19,648,191
Parts | 3,352,077 | 2,894,185
Labour | 1,472,430 | 1,286,612
Incentives and bonuses received | 923,499 | 631,939
Leasing of equipment | 29,387 | 20,110
| 22,187,195 | 24,481,037

The analysis of the company's Turnover for the year by market is as follows:

| 2025 £ | 2024 £
UK | 21,843,109 | 24,169,098
Europe | 344,086 | 311,939
| 22,187,195 | 24,481,037

4 | Staff costs

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

| 2025 £ | 2024 £
Wages and salaries | 981,434 | 831,416
Social security costs | 104,240 | 89,166
Pension costs, defined contribution scheme | 21,700 | 18,233
| 1,107,374 | 938,815

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

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

| 2025 No. | 2024 No.
Parts | 3 | 2
Administration and support | 4 | 2
Sales | 2 | 2
Service | 17 | 16
| 26 | 22

5 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 18,000 | 18,000
Contributions paid to money purchase schemes | 354 | 352
| 18,354 | 18,352

6 | Auditor's remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 20,500 | 20,815

7 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on bank overdrafts and borrowings | 47,398 | 61,162

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

8 | Taxation

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

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 202,580 | 162,504
UK corporation tax adjustment to prior periods | 1,271 | (77,313)
| 203,851 | 85,191
Deferred taxation |  |
Arising from origination and reversal of timing differences | 24,396 | 4,654
Arising from changes in tax rates and laws | 3,754 | 96,336
Total deferred taxation | 28,150 | 100,990
Tax expense in the income statement | 232,001 | 186,181

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

| 2025 £ | 2024 £
Profit before tax | 902,943 | 687,492
Corporation tax at standard rate | 225,736 | 167,026
Increase/(decrease) in UK and foreign current tax from adjustment for prior periods | 1,271 | (77,313)
Effect of expense not deductible in determining taxable profit (tax loss) | 785 | 132
Deferred tax expense from unrecognised temporary difference from a prior period | 4,209 | 96,336
Total tax charge | 232,001 | 186,181

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

Deferred tax

Deferred tax assets and liabilities

2025 | Asset £ | Liability £
Fixed asset timing differences | - | 205,090
| - | 205,090

2024 | Asset £ | Liability £
Fixed asset timing differences | - | 176,940
| - | 176,940

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

9 | Tangible assets

| Land and buildings £ | Furniture, fittings and equipment £ | Motor vehicles £ | Plant and machinery £ | Total £
Cost or valuation
At 1 April 2024 | 1,010,311 | 17,191 | 373,819 | 119,150 | 1,520,471
Additions | 2,075 | 7,948 | 251,297 | 29,698 | 291,018
Disposals | - | - | (100,387) | - | (100,387)
At 31 March 2025 | 1,012,386 | 25,139 | 524,729 | 148,848 | 1,711,102
Depreciation
At 1 April 2024 | 51,894 | 8,556 | 126,176 | 25,332 | 211,958
Charge for the year | 19,210 | 4,091 | 87,542 | 15,655 | 126,498
Eliminated on disposal | - | - | (33,173) | - | (33,173)
At 31 March 2025 | 71,104 | 12,647 | 180,545 | 40,987 | 305,283
Carrying amount
At 31 March 2025 | 941,282 | 12,492 | 344,184 | 107,861 | 1,405,819
At 31 March 2024 | 958,417 | 8,635 | 247,643 | 93,818 | 1,308,513

Included within the net book value of land and buildings above is £941,282 (2024 - £958,417) in respect of freehold land and buildings.

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

10 | Stocks

| 2025 £ | 2024 £
Finished goods and goods for resale | 4,063,290 | 3,606,872

The carrying amount of stocks pledged as security for liabilities amounted to £Nil (2024 - £86,759).

11 | Debtors

| 2025 £ | 2024 £
Trade debtors | 2,680,914 | 1,075,285
Other debtors | 112,886 | 221,923
Prepayments | 367,101 | 387,393
| 3,160,901 | 1,684,601

12 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash on hand | 9 | 144
Cash at bank | 856,216 | -
| 856,225 | 144
Bank overdrafts | - | (51,368)
Cash and cash equivalents in statement of cash flows | 856,225 | (51,224)

Net debt note

| At 1 April 2024 | Cash flow | At 31 March 2025
| £ | £ | £
Cash at bank and on hand | 144 | 856,081 | 856,225
Bank overdrafts | (51,368) | 51,368 | -
Cash and cash equivalents | (51,224) | 907,449 | 856,225
Hire purchase contracts | (86,759) | 86,759 | -
Bank loans | (676,819) | 134,710 | (542,109)
Net debt | (814,802) | 1,128,918 | 314,116

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

13 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Loans and borrowings | 14 | 181,374 | 319,501
Trade creditors |  | 1,446,730 | 1,751,566
Social security and other taxes |  | 590,442 | 55,654
Other creditors |  | 1,005,641 | 1,241,572
Accruals |  | 72,175 | 109,944
Corporation tax | 8 | 202,125 | 162,504
Deferred income |  | 2,663,563 | 194,856
|  | 6,162,050 | 3,835,597
Due after one year |  |  |
Loans and borrowings | 14 | 360,735 | 495,445

14 | Loans and borrowings

Non-current loans and borrowings

| 2025 £ | 2024 £
Bank borrowings | 360,735 | 495,445

Current loans and borrowings

| 2025 £ | 2024 £
Bank borrowings | 181,374 | 181,374
Bank overdrafts | - | 51,368
Hire purchase contracts | - | 86,759
| 181,374 | 319,501

Bank borrowings

The bank loan is denominated in sterling with a nominal interest rate of 2.5% above base rate, and the final instalment is due on 1 July 2027. The carrying amount at year end is £542,109 (2024 - £676,819). The bank loan is secured against the freehold property and floating assets of the business.

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

15 | Provisions for liabilities

| Deferred tax £ | Total £
At 1 April 2024 | 176,940 | 176,940
Increase (decrease) in existing provisions | 28,150 | 28,150
At 31 March 2025 | 205,090 | 205,090

16 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary A Shares of £1 each | 50 | 50 | 50 | 50
Ordinary B Shares of £1 each | 50 | 50 | 50 | 50
| 100 | 100 | 100 | 100

Rights, preferences and restrictions

Ordinary A Shares have the following rights, preferences and restrictions: Full rights regarding voting, payment of dividends and distribution.
Ordinary B Shares have the following rights, preferences and restrictions: Full rights regarding voting, payment of dividends and distribution.

17 | Dividends

Final dividends paid

|  | 2025 £ |  | 2024 £
Final dividend of 47.30 (2024 - Nil) per each Ordinary A shares |  | 2,365 |  | -
Final dividend of 47.30 (2024 - Nil) per each Ordinary B shares |  | 2,365 |  | -
|  | 4,730 |  | -

Reco JCB Limited

Notes to the Financial Statements

Year Ended 31 March 2025

18 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £21,700 (2024 - £18,233).

19 | Related party transactions

Transactions with directors

Certain directors have a directors’ current account with the company. At the balance sheet date, the amount due by the directors was £Nil (2024: £4,730). Amounts are interest free and repayable on demand.

Summary of transactions with other related parties

Included within other creditors are loans from associated companies in with shared directors. The balance owed to the companies at 31 March 2025 is £976,315 in total (2024 - £806,036). There were repayments in the year of £3,545,450 (2024 - £406,040) and additional loan amounts of £3,715,730 (2024 - £1,212,075) were received in the year. The balances are charged at 2.25% above base.
A company with two of four directors and shareholders in common with the Company:
An amount of £53,830 is owed from (2024 - £436,996 owed to) this related party. During the year, sales were made to the related party of £283,386 (2024 - £677,191) and purchases made of £807,314 (2024 - £711,478).
A company with one director and shareholder in common with the Company:
An amount of £26,197 is owed by (2024 - £46,087) this related party. During the year, sales were made to the related party of £50,770 (2024 - £230,452) and purchases made of £162,337 (2024 - £157,935).
A company with one director and shareholder in common with the Company:
An amount of £82 is owed to (2024 - £4,953 owed to) this related party. During the year, sales were made to the related party of £311 (2024 - £289) and purchases made of £28,223 (2024 - £36,310).
A company with one director and shareholder in common with the Company:
An amount of £118,800 is owed by (2024 - £26,520 owed by) this related party. During the year, sales were made to the related party of £440,526 (2024 - £230,535) and purchases made of £57,806 (2024 - £342,471).
A company with one director and shareholder in common with the Company:
No amount is owed to or by this related party. During the year, sales were made to the related party of £nil (2024 - £962). No purchases were made.