ARGRAIN LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Company registration number 01223191 (England and Wales)
ARGRAIN LTD
COMPANY INFORMATION
Directors
Mr D Padgett
Mr R Padgett
Company number
01223191
Registered office
Mill Farm
Raskelf
Easingwold
York
YO61 3LB
Auditor
Hunter Gee Holroyd
Club Chambers
Museum Street
York
YO1 7DN
Bankers
HSBC Bank plc
13 Parliament Street
York
YO1 8XS
Solicitors
Harland & Co
18 St Saviourgate
York
YO1 8NS
ARGRAIN LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
ARGRAIN LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 1 -

The directors present the strategic report for the year ended 30 June 2025.

Review of the business

As anticipated, turnover and profit for the year are both down significantly, a factor of both reduced grain prices throughout the year and a smaller crop, the result of the wet autumn of 2023, leading inevitable to a reduction in the tonnage traded. Given the circumstances the directors are, however, satisfied with the results.

The outlook for the farming sector in general remains extremely challenging, due to the ongoing effects of more extreme weather and the changes to government policy. The arable sector on which the group principally relies for its trade is facing the most severe effects. The company does not therefore see any imminent improvement in prospects for the business, but more Iikely further deterioration.

Feed,seed and fertiliser volumes were broadly in line with expectations, with the contract to manufacture blended feeds continuing satisfactorily.

Drying, storage and haulage operations were all impacted by the reduced tonnage but continue to support the trading business.

The farming operation faces the challenges highlighted above, with the BPS reduced to a negligible amount and great uncertainty surrounding the SFI scheme and payments from it. Whilst the company is committed to its in-house farming operation with profitability marginal at best, external contracts will be under review.

The UK grain merchanting sector remains very competitive and the weather and political landscape give rise to significant volatility to prices. It is not foreseen that the current year's level of profitability will continue, certainly the outlook for 2026 is reduced. Again the outlook for the arable farming sector remains uncertain because of the weather, the volatile price of both crops and inputs, together with the effects of changing government policy. Therefore, the company will continue to concentrate on maintaining its existing trading relationships and will only consider organic growth opportunities.

Principal risks and uncertainties

The directors' principal concerns remain profitability at both gross and post tax levels, together with the return on capital employed. The performance against these indicators was exceptional.

The risks and uncertainties faced by the company, and all others in the sector, remain principally weather conditions throughout the world affecting the quantity and quality of the crop. This creates speculation on a world level which directly impacts on price volatility and the pattern of trading, giving rise both to downside risk and profitable trading opportunities. This risk is constantly managed using both physical and futures contracts where appropriate.

The company is exposed to some risk from trade debtors, which is reduced by insurance and active monitoring of all accounts.

The company also needs to ensure it has sufficient liquidity to meets its foreseeable requirements. The directors remain satisfied that the banking facilities in place are more than adequate to allow it to meet all its obligations and exploit any possible trading opportunities that arise.

ARGRAIN LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 2 -
Key performance indicators

The directors monitor the following key performance indicators.

- Gross profit percentage - 7.69% in 2025 compared to 6.79% in 2024.

- Profit before tax - £768,706 in 2025 compared to £1,259,483 in 2024.

- Return on capital employed - 11.74% in 2025 compared to 19.23% in 2024.

The company is not planning to move into any new markets, growth is to be achieved through increasing the market share in its existing markets.

On behalf of the board

Mr D Padgett
Director
12 March 2026
ARGRAIN LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2025
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2025.

Principal activities

The principal activity of the company during the year remained the drying, storage, marketing and distribution of grain from Yorkshire and the surrounding counties.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £539,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr D Padgett
Mr R Padgett
Financial instruments

The company holds or issues financial instruments in order to achieve three main objectives, being:

(a) to finance its operations;

(b) to manage its exposure to interest and currency risks arising from its operations and from its sources of finance; and

(c) for trading purposes.

In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.

Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.

Liquidity risk
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. In respect of loans, these comprise loans from directors and loans from financial institutions. The interest rate on the loans from financial institutions is variable but the monthly repayments are fixed. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments. The loans from directors are interest free and payable on demand. The directors are aware of the company's required finance and have determined that these will only be repaid, in whole or in part, when finance is available.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Credit risk
The company monitors credit risk closely and considers that its current policies of credit checks meets its objectives of managing exposure to credit risk.
The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments.
ARGRAIN LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 4 -
Auditor

The auditor, Hunter Gee Holroyd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

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

Statement of disclosure to auditor

So far as the directors are aware, there is no relevant audit information of which the company's auditor are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr D Padgett
Director
12 March 2026
ARGRAIN LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARGRAIN LTD
- 5 -
Opinion

We have audited the financial statements of Argrain Ltd (the 'company') for the year ended 30 June 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

- give a true and fair view of the state of the company's affairs as at 30 June 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'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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

- the information given in the strategic report and the directors' r eport 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.

ARGRAIN LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARGRAIN LTD (CONTINUED)
- 6 -
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 identifie d material misstatements in the strategic report or the directors' r eport.

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' r esponsibilities s tatement, 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.

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

ARGRAIN LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARGRAIN LTD (CONTINUED)
- 7 -

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

•the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

•we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the grain sector;

•we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery and employment legislation;

•we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

•identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

•making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

•considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;

To address the risk of fraud through management bias and override of controls, we:

•performed analytical procedures to identify any unusual or unexpected relationships;

•tested journal entries to identify unusual transactions;

•assessed whether judgements and assumptions made in determining accounting estimates were indicative of potential bias; and

•investigated the rationale behind significant or unusual transactions;

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

•agreeing financial statement disclosures to underlying supporting documentation;

•reading the minutes of meetings of those charged with governance; and

•enquiring of management as to actual and potential litigation and claims;

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

ARGRAIN LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ARGRAIN LTD (CONTINUED)
- 8 -

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.

Nigel Everard (Senior Statutory Auditor)
For and on behalf of Hunter Gee Holroyd, Statutory Auditor
Chartered Accountants
Club Chambers
Museum Street
York
YO1 7DN
16 March 2026
ARGRAIN LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
- 9 -
2025
2024
Notes
£
£
Revenue
3
55,301,752
69,723,836
Cost of sales
(51,048,958)
(64,982,988)
Gross profit
4,252,794
4,740,848
Distribution costs
(688,490)
(760,011)
Administrative expenses
(2,954,811)
(2,954,441)
Other operating income
81,179
90,509
Operating profit
4
690,672
1,116,905
Investment income
7
140,751
197,962
Finance costs
8
(62,717)
(55,384)
Profit before taxation
768,706
1,259,483
Tax on profit
9
(205,088)
(298,147)
Profit for the financial year
563,618
961,336

The income statement has been prepared on the basis that all operations are continuing operations.

ARGRAIN LTD
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
30 June 2025
- 10 -
2025
2024
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
12
1,237,765
1,269,915
Current assets
Inventories
13
1,288,798
2,392,869
Trade and other receivables
14
8,374,858
7,819,455
Cash and cash equivalents
623,615
1,018,120
10,287,271
11,230,444
Creditors: amounts falling due within one year
15
(5,639,939)
(6,632,683)
Net current assets
4,647,332
4,597,761
Total assets less current liabilities
5,885,097
5,867,676
Provisions for liabilities
Deferred tax liability
18
296,279
303,476
(296,279)
(303,476)
Net assets
5,588,818
5,564,200
Capital and reserves
Called up share capital
20
34,280
34,280
Share premium account
301,120
301,120
Capital redemption reserve
10,000
10,000
Retained earnings
5,243,418
5,218,800
Total equity
5,588,818
5,564,200

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 12 March 2026 and are signed on its behalf by:
Mr D Padgett
Director
Company registration number 01223191 (England and Wales)
ARGRAIN LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
- 11 -
Share capital
Share premium account
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
£
Balance at 1 July 2023
34,280
301,120
10,000
4,793,464
5,138,864
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
961,336
961,336
Dividends
10
-
-
-
(536,000)
(536,000)
Balance at 30 June 2024
34,280
301,120
10,000
5,218,800
5,564,200
Year ended 30 June 2025:
Profit and total comprehensive income
-
-
-
563,618
563,618
Dividends
10
-
-
-
(539,000)
(539,000)
Balance at 30 June 2025
34,280
301,120
10,000
5,243,418
5,588,818
ARGRAIN LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025
- 12 -
2025
2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
692,287
2,557,787
Interest paid
(62,717)
(55,384)
Income taxes paid
(238,212)
(583,753)
Net cash inflow from operating activities
391,358
1,918,650
Investing activities
Purchase of property, plant and equipment
(484,677)
(732,434)
Proceeds from disposal of property, plant and equipment
131,059
265,225
Interest received
140,751
197,962
Net cash used in investing activities
(212,867)
(269,247)
Financing activities
Payment of finance leases obligations
(23,638)
(51,575)
Dividends paid
(539,000)
(536,000)
Net cash used in financing activities
(562,638)
(587,575)
Net (decrease)/increase in cash and cash equivalents
(384,147)
1,061,828
Cash and cash equivalents at beginning of year
1,007,762
(54,066)
Cash and cash equivalents at end of year
623,615
1,007,762
Relating to:
Cash at bank and in hand
623,615
1,018,120
Bank overdrafts included in creditors payable within one year
-
0
(10,358)
ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
- 13 -
1
Accounting policies
Company information

Argrain Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Mill Farm, Raskelf, Easingwold, York, YO61 3LB.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Revenue

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

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

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

1.4
Intangible fixed assets other than goodwill

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

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

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

Entitlement fees
3 years straight line
1.5
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 14 -
Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Plant and machinery
20% straight line
Fixtures fittings and equipment
20% and 33.3% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of non-current assets

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

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

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

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

1.7
Inventories

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

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 15 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

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

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities

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

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

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

Other financial liabilities

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

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 17 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

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

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

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

1.13
Retirement benefits
Contributions to the company's defined contribution pension schemes are charged to the profit and loss account for the year they become payable to the scheme. Differences between contributions payable and contributions actually paid are shown as either accruals or prepayments at the year end.
1.14
Leases
As lessee

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

As lessor

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
1
Accounting policies
(Continued)
- 18 -
1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and 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 amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Revenue

An analysis of the company's revenue is as follows:

2025
2024
£
£
Revenue analysed by class of business
Grain merchants
55,301,752
69,723,836
2025
2024
£
£
Other revenue
Interest income
140,751
197,962
4
Operating profit
2025
2024
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,000
8,500
Depreciation of property, plant and equipment
465,078
441,464
Profit on disposal of property, plant and equipment
(79,310)
(3,892)
Operating lease charges
483,956
488,044
ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 19 -
5
Employees

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

2025
2024
Number
Number
Number of administrative staff
33
33
Number of management staff
2
1
Total
35
34

Their aggregate remuneration comprised:

2025
2024
£
£
Wages and salaries
1,195,338
1,000,796
Social security costs
116,748
80,391
Pension costs
37,319
96,777
1,349,405
1,177,964
6
Directors' remuneration
2025
2024
£
£
Remuneration for qualifying services
9,110
7,956
Company pension contributions to defined contribution schemes
-
60,000
9,110
67,956

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2024 - 1).

7
Investment income
2025
2024
£
£
Interest income
Other interest income
140,751
197,962
ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 20 -
8
Finance costs
2025
2024
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
71,589
32,056
Other finance costs:
Interest on finance leases and hire purchase contracts
-
361
Other interest
(8,872)
22,967
62,717
55,384
9
Taxation
2025
2024
£
£
Current tax
UK corporation tax on profits for the current period
212,285
293,267
Adjustments in respect of prior periods
-
0
8,959
Total current tax
212,285
302,226
Deferred tax
Origination and reversal of timing differences
(7,197)
(4,079)
Total tax charge
205,088
298,147

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

2025
2024
£
£
Profit before taxation
768,706
1,259,483
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2024: 25.00%)
192,177
314,871
Tax effect of expenses that are not deductible in determining taxable profit
12,911
24,711
Adjustments in respect of prior years
-
0
8,959
Permanent capital allowances in excess of depreciation
7,197
(46,315)
Deferred tax adjustments in respect of prior years
(7,197)
(4,079)
Taxation charge for the year
205,088
298,147
ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 21 -
10
Dividends
2025
2024
£
£
Final paid
539,000
536,000
11
Intangible fixed assets
Entitlement fees
£
Cost
At 1 July 2024
19,448
Disposals
(19,448)
At 30 June 2025
-
0
Amortisation and impairment
At 1 July 2024
19,448
Disposals
(19,448)
At 30 June 2025
-
0
Carrying amount
At 30 June 2025
-
0
At 30 June 2024
-
0
12
Property, plant and equipment
Plant and machinery
Fixtures fittings and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2024
3,577,909
1,132
1,323,499
4,902,540
Additions
299,778
-
0
184,899
484,677
Disposals
(115,000)
-
0
(240,000)
(355,000)
At 30 June 2025
3,762,687
1,132
1,268,398
5,032,217
Depreciation and impairment
At 1 July 2024
2,804,186
1,132
827,307
3,632,625
Depreciation charged in the year
316,488
-
0
148,590
465,078
Eliminated in respect of disposals
(106,800)
-
0
(196,451)
(303,251)
At 30 June 2025
3,013,874
1,132
779,446
3,794,452
Carrying amount
At 30 June 2025
748,813
-
0
488,952
1,237,765
At 30 June 2024
773,723
-
0
496,192
1,269,915
ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
12
Property, plant and equipment
(Continued)
- 22 -

Property, plant and equipment includes assets held under finance leases or hire purchase contracts, as follows:

2025
2024
£
£
Plant and machinery
-
0
45,238
13
Inventories
2025
2024
£
£
Finished goods and goods for resale
1,288,798
2,392,869
14
Trade and other receivables
2025
2024
Amounts falling due within one year:
£
£
Trade receivables
6,485,981
6,913,771
Amounts owed by group undertakings
800,043
-
0
Other receivables
979,366
854,860
Prepayments and accrued income
109,468
50,824
8,374,858
7,819,455
15
Creditors: amounts falling due within one year
2025
2024
Notes
£
£
Bank loans and overdrafts
16
-
0
10,358
Obligations under finance leases
17
-
0
23,638
Trade payables
4,761,229
5,326,281
Amounts owed to group undertakings
-
0
209,139
Corporation tax
212,285
238,212
Other taxation and social security
31,912
28,942
Other payables
302,424
496,007
Accruals and deferred income
332,089
300,106
5,639,939
6,632,683
ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 23 -
16
Borrowings
2025
2024
£
£
Bank overdrafts
-
0
10,358
Payable within one year
-
0
10,358

Bank loans and overdrafts are secured by the following charges:

1. Debenture comprising fixed and floating charges over all the assets and undertaking of

Argrain Limited including all present and future freehold and leasehold property, book

and other debts, chattels, goodwill and uncalled capital, both present and future.

2. Debenture comprising fixed and floating charges over all the assets and undertaking of

Argrain Holdings Limited including all present and future freehold and leasehold

property, book and other debts, chattels, goodwill and uncalled capital, both present and

future.

3. Unlimited composite company guarantee to be given by Argrain Limited and Argrain

Holdings Limited to secure all liabilities of each other.

Net obligations under finance leases and hire purchase contracts are secured on the assets of the company.

17
Finance lease obligations
2025
2024
Future minimum lease payments due under finance leases:
£
£
Within one year
-
0
23,638
18
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2025
2024
Balances:
£
£
Accelerated capital allowances
296,279
303,476
2025
Movements in the year:
£
Liability at 1 July 2024
303,476
Credit to profit or loss
(7,197)
Liability at 30 June 2025
296,279
ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
18
Deferred taxation
(Continued)
- 24 -

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

19
Retirement benefit schemes
2025
2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
37,319
96,777

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2025
2024
2025
2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
15,380
15,380
15,380
15,380
Ordinary B shares of £1 each
15,000
15,000
15,000
15,000
Ordinary C shares of £1 each
3,900
3,900
3,900
3,900
34,280
34,280
34,280
34,280
21
Operating lease commitments
Lessee

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

2025
2024
£
£
Within one year
79,000
79,000
22
Related party transactions

H W Cowling Builders Limited a business in which Mr David Padgett has an interest received goods and services to the value of £4,432 Debtors include £9,351 owed by H W Cowling Limited, they also provided goods and services to the value of £Nil (20 24 - £10,526) creditors include £3,330 (20 24 - £4,741) at the year end.

Kyle Farming Limited a company in which the director Mr D Padgett has an interest received goods and services to the value of £91,802 (2024 - £223,589). Deb tors include £169,911 (20 24 - £177,109) owed by Kyle Farming Limited.

Howardian Developments Limited a company in which Mr David Padgett has a material interest has been loaned £724,332 (2024 - £560,027) by Argrain Limited. Interest paid on the loan was £75,797.

Argrain Holdings Limited received goods and services to the value of £166,579. Debtors include £800,043 owed by Argrain Holdings Ltd at the year end.

ARGRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
- 25 -
23
Ultimate controlling party

The parent company of Argrain Ltd is Argrain Holdings Ltd and its registered office is Mill Farm, Raskelf, Easingwold, York YO61 3LB.

24
Cash generated from operations
2025
2024
£
£
Profit after taxation
563,618
961,336
Adjustments for:
Taxation charged
205,088
298,147
Finance costs
62,717
55,384
Investment income
(140,751)
(197,962)
Gain on disposal of property, plant and equipment
(79,310)
(3,892)
Depreciation and impairment of property, plant and equipment
465,078
441,464
Movements in working capital:
Decrease in inventories
1,104,071
829,200
(Increase)/decrease in trade and other receivables
(555,403)
3,664,425
Decrease in trade and other payables
(932,821)
(3,490,315)
Cash generated from operations
692,287
2,557,787
25
Analysis of changes in net funds
1 July 2024
Cash flows
30 June 2025
£
£
£
Cash at bank and in hand
1,018,120
(394,505)
623,615
Bank overdrafts
(10,358)
10,358
-
0
1,007,762
(384,147)
623,615
Lease liabilities
(23,638)
23,638
-
984,124
(360,509)
623,615
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