The director presents the strategic report for the year ended 31 August 2025.
During 2023, Plevinco 2 Limited was incorporated and following a group re-structure became the ultimate parent company of the existing "Plevin" Group. No change in overall ownership occurred and as such merger accounting principles were applied. These group consolidated financial statements reflect the results and performance of the "Plevin" Group for the year ended 31 August 2025.
The group continues to specialise in the recycling of all forms of waste wood and produce a range of sustainable products suitable for the panel board industry, biomass power plants and for use within animal bedding.
Our sites are strategically located around the UK to enable us to provide our services nationwide, with our head office in South Yorkshire and facilities in Nottinghamshire and Lincolnshire.
We operate a modern fleet of articulated vehicles, with specialist moving floor, chip liner and blow box trailers along with wagon and drag vehicles / skips, ensuring we are well equipped to service all wood waste requirements.
With over 40 years’ experience, we have built an enviable reputation for service and quality. We work closely with many wood waste companies ranging from pallet and joinery workshops to local authorities, waste management and skip companies.
The financial year to 31 August 2025 has been a challenging year, fundamentally due to the continued financial impact of the group relocating its operations to Hazlehead in 2023 and a strategic decision to address customer concentration risk. The planned relocation did cause unavoidable disruptions to operations. That being said, the group will benefit in future years from the move to Hazlehead, both from an operational capacity and output perspective. This can be evidenced by the increase in turnover from 2024 to 2025. The director is pleased with the successful replacement of various income streams, which are now across multiple customers. This strategic decision will benefit the group both in terms of turnover and gross profit margin for future years. Turnover is expected to increase within the next 12 months, with expectations for future growth based on current pipelines.
Gross margins for the year have risen from 9% to 12%. This is due to increases in selling prices and the resolution of raw material supply issues, together with changes in both customer and product mix and timing of sales price increases. It is expected that gross profit margins will improve going forward.
Administrative expenses have been closely monitored and managed. Whilst these have reduced in these group accounts, this is predominantly due to the absence of amortisation charges, as the goodwill was fully written down in the prior year. Generally overhead expenses are increasing as a result of price increases across multiple industries and inflation linked to the cost-of-living crisis.
The loss after tax of (£0.3m) reported for 2025 is not reflective of normal trading conditions. The group has a proven track record in respect of profitability and operational management and the director is satisfied that disruptions were easing towards the end of the 2025 financial period. The group has a solid pipeline of work and product demand, and the director is pleased to report that the group has returned to profitability post year-end.
As at the 31 August 2025, the group has significant net assets of £12.7m (2024: £14.2m) which the director believes places the group in a strong and stable financial position.
The group uses various financial instruments including loans and various other mainstream items, such as debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations.
The existence of these financial instruments exposes the group to a number of financial risks which are described in more detail below. These are reviewed and policies are agreed for managing these risks. These policies have remained unchanged from previous years.
Strategic risk
The group ensures that it carefully maintains stock of raw material on each site to meet the demands of all customers. Due to the FPP directives of the Environment Agency, stock holding remains the single most important consideration for all suppliers in this sector, our ability to service all contracts whilst working within guidelines, remains the main focus for the group.
Concentration risk
The group is in constant contact with markets, and ensures all new opportunities are explored. The diversity of the group's activities ensures there is no reliance on any particular sector or customer.
Financial risk
Cash flow is vital and being able to service its liabilities whilst continuing to invest and grow is pivotal to all activities. The careful management of stock and full utilisation of assets that have been purchased over the preceding 3 years is seen as key to cash management.
Liquidity risk
The group seeks to manage financial risk by ensuring liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by an invoice discounting facility.
The group finances its operations through a combination of retained profits, loans, invoice discounting facilities, finance leases and hire purchase contracts. The group exposure to interest rate fluctuations on its borrowings is managed by the use of both fixed and floating facilities.
Credit risk
The principal credit risk arises from the main trading subsidiary company’s trade debtors.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an on going basis and provision is made for doubtful debts where necessary. Credit insurance is deployed within the group where deemed appropriate by the directors.
Operational risk
The group continues to invest in its staff via professional training programmes, to ensure that site operations continue in a smooth and consistent format. These are augmented by the ISO9001, ISO14001 and ISO18001 accreditations which were achieved during previous years.
Compliance
The group treats its compliance responsibility obligations appropriately and has established a robust framework to ensure compliance with all relevant legislation. The group is in regular dialogue with all regulatory bodies at all of its sites and constantly monitors the impact of its operations on the local environment.
The group reviews and monitors its performance against a number of key performance indicators both financial and non-financial. The principal measures include revenue growth, maintaining service levels, improvement of gross margins and EBITDA. These are reviewed by the management team and reported to the Board on a monthly basis.
The director has and will continue to monitor all of the KPI’s and daily operating controls and maintain a strong focus on increasing performance in all aspects of the business.
The main KPI’s and corresponding results are as follows:
| 2025 | 2024 |
|
|
|
Turnover | £25.5m | £24.9m |
GP margin | 12.4% | 9.3% |
EBITDA | £1.7m | £1.1m |
Net assets | £12.7m | £14.2m |
The increase in turnover in the year is a result of price increases and the relocation of operations and the timing of strategic customer changes to address concentration matters. Turnover is expected to increase even further within the next 12 months.
Both gross margin and EBITDA has been impacted by the explained increase in turnover. Expenses generally have increased due to wider economic factors, particularly energy costs and wages, although administrative expenses are down as the consolidated goodwill is now fully amortised.
Despite the loss incurred in 2025, the group has significant net assets, illustrating the group's strong financial position.
The group continues to specialise in recycling waste wood into sustainable products.
The group has received a significant cash injection during the year following the planned and strategic sale of one of the group's sites.
Investment will continue to be made at all our sites, ensuring that latest technologies are embraced within our operational strategies, with key focus on service, product development and resourceful recycling.
The director is satisfied that the group has sufficient financial resources in place to execute its strategy and continue to develop into the future.
On behalf of the board
The director presents his annual report and financial statements for the year ended 31 August 2025.
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £333,200. The director does not recommend payment of a further dividend.
No preference dividends were paid. The director does not recommend payment of a final dividend.
The director who held office during the year and up to the date of signature of the financial statements was as follows:
In accordance with s414(c)(11) of the Companies Act, included in the strategic report is information relating to the future developments of the business which would otherwise be required by schedule 7 of the "Large and Medium Sized Company's (Accounts and Reports) Regulations 2008" to be contained in the directors report.
The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
We have audited the financial statements of Plevinco 2 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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).
Basis for 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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the director's report have been prepared in accordance with applicable legal requirements.
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.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: laws related to health and safety, employment and data protection as well as environmental regulations, as monitored by the Environment Agency.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:
Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud
Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud
Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged fraud;
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.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £447,200 (2024 - £394,800 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
Plevinco 2 Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Whams Road, Hazlehead, South Yorkshire, S36 4HG.
The group consists of Plevinco 2 Limited and all of its subsidiaries.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The consolidated group financial statements consist of the financial statements of the parent company Plevinco 2 Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 August 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future, based on continued bank and asset based funding facilities. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
This is on the basis that although the group has net current liabilities at the year end, this is partly due to the fact that there has been significant investment in fixed assets both in the current year and prior years. These acquisitions have been financed via finance leases / hire purchase contracts and repayments are being made over a much shorter period than the fixed assets useful economic life. Creditors due in less than one year, includes 12 repayments which are paid monthly and funding from working capital generated from monthly income.
This is demonstrated by the fact that the group has a strong EBITDA of £1.7m (2024: £1.1m), showing that the group is generating cash to enable it to meet its liabilities.
Towards the end of the prior financial year, the group secured funding of £1.75m by way of a cash flow loan, which provided additional working capital. During the year, an additional £1.5m funding facility was secured to further improve the group's working capital.
Post year end, some of the group's lease agreements have come to an end which will provide further cash-flow availability to support the long-term strategies of the group.
The group has prepared detailed financial forecasts and these support the going concern basis.
The director is satisfied that the group has sufficient financial resources in place to execute its strategy and continue to develop into the future.
Turnover 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.
Revenue relating to receipt of waste wood from customers for processing, is recognised on the date the risk and reward of the wood has transferred to the group, typically on receipt of the goods at one of the group's operating sites or on collection from a customer site. Revenue relating to the sale of finished goods and processed material is recognised on the date the risk and reward of the inventory passes to the customer, typically on delivery to a customer site or on collection by the customer from one of the group's operating sites.
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 recognised in the profit and loss account.
Freehold land and buildings is not depreciated on the basis that its carrying value reflects its residual value.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, which include debtors 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, 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.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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.
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 group after deducting all of its liabilities.
Basic financial liabilities, including creditors, 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 payments 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 creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 profit and loss account, 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 if, and only if, there is 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.
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 fixed 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 balance sheet 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 leased asset are consumed.
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
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.
In the application of the group’s accounting policies, the director is 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.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Land and buildings have been revalued to fair value based on property valuations prepared by an independent professional valuer.
At 31 August 2025, the balance on the revaluation reserve, net of deferred tax, amounted to £6,155,717 (2024: £7,617,926).
Refer to note 14 for the carrying value of land and buildings impacted by this key accounting estimate.
The useful economic life of tangible fixed assets has to be estimated by the director of the group to ensure an appropriate depreciation charge is recognised in the year. The value of the assets ultimately depends on the condition of the assets and whether economic income can be derived from the asset. The director undertakes a periodic review of the assets to ensure the value of the assets is fairly stated within the financial statements.
During the year, depreciation of £1,532,165 (2024: £1,745,485) has been charged.
Refer to note 14 for the carrying values of tangible fixed assets impacted by this key accounting estimate.
Provisions against trade debtors are recognised when a loss is considered probable.
Trade debtors are stated net of the allowance for the impairment of bad and doubtful debts. Debtor balances are provided against based on the date the invoice is raised based on historic experience and if any circumstances highlight potential non-recovery.
At the year-end, the director has included a bad debt provision of £11,825 (2024: £9,365).
Refer to note 18 for the carrying values of trade debtors impacted by this key accounting estimate.
Given the nature of the stock, significant judgement is made by management in both assessing the quantity of stock held at the year-end and the costing of stock. Management use their historical experience and other relevant factors to make their best estimate.
At the year end, stock was valued at £3,055,982 (2024: £3,208,053), as included in note 17.
Revaluation reserve transfer and deferred tax liability on revaluation gain
During the year, a prior year adjustment has been made in relation to a transfer from the revaluation reserve to the profit and loss reserves. This transfer relates to the previous disposal of a property in 2023, for which the historic cost figure used in calculating the revaluation uplift was incorrect.
The impact of this prior year adjustment has been to reduce the revaluation reserve by £580,405, reduce the deferred tax liability by £193,468 and increase profit and loss reserves by £773,873.
There is no impact on previously stated profits, but net assets of the company have increased by £193,468
Government grants received relate to the release of historic deferred capital grants, as outlined in note 24.
Audit fees are borne by the trading subsidiary.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024: 1).
The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Freehold land and buildings includes the historic cost of £4,141,379 (2024: £5,049,355) in respect of freehold land, which is not depreciated.
Land and buildings have been revalued in accordance with a professional property valuation dated 07 July 2025 by Savills (UK) Limited, independent valuers. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors believe the valuation dated 07 July 2025 is indicative of the fair value of the properties held as at 31 August 2025.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Details of the company's subsidiaries at 31 August 2025 are as follows:
Registered office addresses (all UK unless otherwise indicated):
The bank loan was secured by legal charges over properties held by the group.
Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
Included within other creditors is an amount of £2,913,806 (2024: £2,798,062) in respect of an invoice discounting facility. This is secured over the debts to which it relates.
Included within other borrowings is an amount of £1,569,473 (2024: £349,992) in respect of non-bank loans which are secured by floating charges over the company's assets
The bank loan is secured by legal charges over properties held by the group.
Obligations under finance leases and hire purchase contracts are secured on the assets to which they relate.
Other borrowings relates to a non-bank loan which is secured by a floating charge over the groups's assets.
Bank loans have been fully repaid during the year. Interest was charged at 2% p.a. above the Bank of England base rate.
There was also a cross company guarantee given to the group's bankers between Plevin Holdings Limited, R. Plevin & Sons Limited and Snowflake Animal Bedding Ltd.
Included within other loans is an amount of £319,503 (2024: £347,607) due to a close family member of the director. This individual is also a director of the subsidiary companies within the group. There is no fixed repayment date, but all amounts due must be repaid by the final repayment date of 28 February 2029 and interest is charged at 5% per annum.
Included within other loans is an amount of £1,370,842 (2024: £1,720,834) in respect of non-bank loans. This loan is secured by a floating charge over the assets of the group. This loan is repayable within 5 years of the balance sheet date and interest is charged at 4% p.a. above the Bank of England base rate.
Included within other loans is an amount of £1,219,481 (2024: £Nil) in respect of non-bank loans. This loan is secured by a floating charge over the assets of the group. This loan is repayable within 12 months and interest is charged at a rate of 1.1% per month, calculated on the highest balance of the loan in the previous month.
Included within other loans is an amount of £499,512 (2024: £259,512) in respect of a loan payable to a related party. This loan carries no interest charge and has no fixed repayment date, so is deemed to be repayable on demand.
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3-5 years, although one lease entered into during 2021 had a term of 7 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax liability set out above predominately relates to future tax payable on expected property revaluation gains arising on fair value professional valuations obtained. It also includes accelerated capital allowances that are expected to mature over the associated fixed assets useful economic life. Tax losses carried forward will be utilised against future profits. Pension contributions will attract tax relief in the year paid.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
As at the year-end, contributions due to the schemes in respect of the current reporting year were £33,849 (2024: £44,444).
On 30 May 2024, 27 M Redeemable preference shares of £1.00 each were redeemed by the company at £3,800 per share.
On 22 May 2025, 30 M Redeemable preference shares of £1.00 each were redeemed by the company at £3,800 per share.
The Ordinary, A Ordinary and B Ordinary shares of £1 each, all rank pari passu in terms of fully voting rights, rights to dividends and distribution on a wind up basis.
The M and R redeemable preference shares carry no voting rights and do not carry any rights to participate in any dividend or distribution. They do carry preferential rights on a return of capital (including winding up). They are redeemable at the option of the company.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Amounts contracted for but not provided in the financial statements:
The company has taken advantage of the exemption available in accordance with Financial Reporting Standard, section 33, not to disclose transactions entered into between two or more members of a group, where any subsidiary party to the transaction is wholly owned.
As at 31 August 2025, the Plevin Holdings Limited was owed £73,596 (2024: £111,657) from a close family member of the director. During the year, interest of £1,989 (2024: £2,909) was charged on this overdrawn loan account.
As at 31 August 2025, £499,512 (2024: £259,512) was owed to R. Plevin & Sons Limited Directors Pension Fund. The loan does not carry any interest and has no fixed repayment date.
As at 31 August 2025, the group was owed £155,738 (2024: £48,293) from Plevinco 1 Limited, a related company under the ultimate control of J Plevin. This amount is interest free, repayable on demand and included within other debtors.
Included within other long term loans is £319,503 (2024: £347,607) in respect of a fixed interest loan owed to a close family member of the director and a group shareholder. The loan carries interest at 5% per annum. Loan note interest of £17,129 (2024: £18,619) was paid during the year.
Included within other debtors is £91,187 (2024: £146,750) in respect of an overdrawn directors loan account owed to Plevin Holdings Limited from a close family member of the director. During the year, advances of £92,762 were made and repayments of £151,729 were received. During the year, interest of £3,404 (2024: £4,030) was charged on this overdrawn directors loan account.
Dividends totalling £134,600 (2024 - £143,600) were paid in the year in respect of shares held by a close family member of the company's director.
Dividends totalling £198,600 (2024 - £148,600) were paid in the year in respect of shares held by the company's directors.