REGISTERED NUMBER: 02216545 (England and Wales)

Cheviot Trees Limited

Strategic Report,

Report of the Directors and

Audited Financial Statements

for the Year Ended 31st August 2025

Page

Company information

1

Strategic report

2

Report of the directors

3

to

4

Report of the independent auditors

5

to

8

Income statement

9

Other comprehensive income

10

Balance sheet

11

to

12

Statement of changes in equity

13

Cash flow statement

14

Notes to the cash flow statement

15

to

16

Notes to the financial statements

17

to

25

Directors:

H F Frew

Mrs P A Frew

Mrs C A Young

A H Frew

Secretary:

Mrs P A Frew

Registered office:

Newton Brae

Foulden

Berwick Upon Tweed

TD15 1UL

Registered number:

02216545 (England and Wales)

Auditors:

Rennie Welch Audit Limited

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

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

Review of business

The company has had a successful year of trading. Turnover has increased by ten percent however gross profit percentages have reduced slightly.

During the year the company has continued to invest in fixed assets, with the addition of land and buildings amongst other equipment additions.

Principal risks and uncertainties

The key business risks affecting the company are:

- Plant pests and diseases, particularly new ones brought in to the country

- Extreme weather

- Plant price

- Government policy changes

The directors regularly review risk strategy and make any necessary changes to reduce exposure.

Development and performance

The results for the year show a profit on ordinary activities before tax of three million, nine hundred and sixty-five thousand, two hundred and sixty-nine pounds (2024: four million, two hundred and ninety-one thousand, seven hundred and forty-two pounds). The Board are satisfied with the performance for the financial year.

The board monitor the progress of the company by the following KPIs and deem these to provide a suitable base for ongoing performance review.

Turnover generated in the year to 31st August 2025 of seventeen million, sixty-five thousand, three hundred and forty-two pounds. Compared to a comparative of fifteen million, four hundred and forty-six thousand, seven hundred and two pounds.

A core KPI utilised to provide a benchmark for performance between periods are revenues generated per employee. For the period ended 31st August 2025, this KPI was two hundred and ninety-four thousand, two hundred and thirty pounds, compared to a comparative of two hundred and seventy thousand, nine hundred and ninety-five pounds.

The cash reserves are maintained to allow the business to take account of any expansion opportunities that may arise.

On behalf of the board:

Mrs P A Frew - Secretary

29th May 2026

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

Principal activity

The principal activity of the company in the year under review was that of tree growing and carrying on the business of nurserymen and market gardeners.

Dividends

Interim dividends were paid for the year ended 31st August 2025, the total dividend distributions for these were £334,400. A final dividend totalling £4,000,000 was also declared in the year ended 31st August 2025 which was paid after the year end.

Directors

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

H F Frew

Mrs P A Frew

Mrs C A Young

A H Frew

Statement of directors' responsibilities

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

Statement as to disclosure of information to auditors

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

Auditors

The auditors, Rennie Welch Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:

Mrs P A Frew - Secretary

29th May 2026

Opinion

We have audited the financial statements of Cheviot Trees Limited (the 'company') for the year ended 31st August 2025 which comprise the Income statement, Other comprehensive income, Balance sheet, Statement of changes in equity, Cash flow statement and Notes to the cash flow statement, Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

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

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

Audit response to risks identified

- the nature of the industry and sector, control environment and business performance.

- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

-- identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance.

-- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud.

-- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and have not identified any significant areas with potential for fraud to occur. We hold this view on the basis on that the company is classified under the Companies Act 2006 as a medium company for reporting purposes, under which anomalies would be detected.

Further to this no non-routine financial accounting has taken place from which we would expect an increase of fraud or error to occur.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Gillian Adamson BSC (Hons) CA CTA (Senior Statutory Auditor)

for and on behalf of Rennie Welch Audit Limited

Academy House

Shedden Park Road

Kelso

Roxburghshire

TD5 7AL

29th May 2026

Turnover

3

17,065,342

15,446,702

Other operating income

215,989

287,416

17,281,331

15,734,118

Raw materials and consumables

(10,238,690

)

(8,570,510

)

Other external expenses

(18,913

)

(22,121

)

7,023,728

7,141,487

Staff costs

4

(2,266,550

)

(2,099,097

)

Depreciation

(523,994

)

(485,652

)

Other operating expenses

(658,174

)

(575,660

)

Operating profit

6

3,575,010

3,981,078

Income from fixed asset investments

36,252

35,470

Interest receivable and similar income

224,692

164,792

3,835,954

4,181,340

Gain/loss on revaluation of investments

235,102

215,014

4,071,056

4,396,354

Interest payable and similar expenses

7

(105,787

)

(104,612

)

Profit before taxation

3,965,269

4,291,742

Tax on profit

8

(1,008,969

)

(1,082,357

)

Profit for the financial year

2,956,300

3,209,385

Profit for the year

2,956,300

3,209,385

Other comprehensive income

-

-

Total comprehensive income for the year

2,956,300

3,209,385

Fixed assets

Tangible assets

10

4,625,791

3,034,504

Investments

11

1,769,916

2,107,977

6,395,707

5,142,481

Current assets

Stocks

12

1,885,046

1,742,061

Debtors

13

822,620

564,181

Investments

14

1

1

Cash at bank and in hand

5,629,928

5,895,293

8,337,595

8,201,536

Creditors

Amounts falling due within one year

15

5,732,581

2,971,721

Net current assets

2,605,014

5,229,815

Total assets less current liabilities

9,000,721

10,372,296

Creditors

Amounts falling due after more than one year

16

(18,133

)

-

Provisions for liabilities

19

(313,378

)

(324,986

)

Net assets

8,669,210

10,047,310

Capital and reserves

Called up share capital

20

80,000

80,000

Capital redemption reserve

21

69,600

69,600

Retained earnings

21

8,519,610

9,897,710

Shareholders' funds

8,669,210

10,047,310

The financial statements were approved by the Board of Directors and authorised for issue on 29th May 2026 and were signed on its behalf by:

H F Frew - Director

A H Frew - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1st September 2023

80,000

7,474,991

69,600

7,624,591

Changes in equity

Dividends

-

(786,666

)

-

(786,666

)

Total comprehensive income

-

3,209,385

-

3,209,385

Balance at 31st August 2024

80,000

9,897,710

69,600

10,047,310

Changes in equity

Dividends

-

(4,334,400

)

-

(4,334,400

)

Total comprehensive income

-

2,956,300

-

2,956,300

Balance at 31st August 2025

80,000

8,519,610

69,600

8,669,210

Cash flows from operating activities

Cash generated from operations

1

3,534,571

4,766,192

Interest paid

(105,787

)

(104,612

)

Tax paid

(1,071,395

)

(671,465

)

Net cash from operating activities

2,357,389

3,990,115

Cash flows from investing activities

Purchase of tangible fixed assets

(2,051,938

)

(478,997

)

Purchase of fixed asset investments

(55,375

)

(195,030

)

Sale of tangible fixed assets

11,667

9,500

Sale of fixed asset investments

580,726

144,727

Interest received

224,692

164,792

Dividends received

36,252

35,470

Net cash from investing activities

(1,253,976

)

(319,538

)

Cash flows from financing activities

Capital repayments in year

(3,995

)

(6,848

)

Amount introduced by directors

102,340

80,000

Amount withdrawn by directors

(1,132,723

)

(102,341

)

Equity dividends paid

(334,400

)

(786,666

)

Net cash from financing activities

(1,368,778

)

(815,855

)

(Decrease)/increase in cash and cash equivalents

(265,365

)

2,854,722

Cash and cash equivalents at beginning of year

2

5,895,293

3,040,571

Cash and cash equivalents at end of year

2

5,629,928

5,895,293

1.	Reconciliation of profit before taxation to cash generated from operations

2025

2024

£

£

Profit before taxation

3,965,269

4,291,742

Depreciation charges

487,849

471,764

Loss on disposal of fixed assets

36,145

13,888

Gain on revaluation of fixed assets

(235,102

)

(215,014

)

Government grants

(77,819

)

(59,988

)

Finance costs

105,787

104,612

Finance income

(260,944

)

(200,262

)

4,021,185

4,406,742

(Increase)/decrease in stocks

(142,985

)

114,023

Increase in trade and other debtors

(258,439

)

(294,289

)

(Decrease)/increase in trade and other creditors

(85,190

)

539,716

Cash generated from operations

3,534,571

4,766,192

2.	Cash and cash equivalents

The amounts disclosed on the Cash flow statement in respect of cash and cash equivalents are in respect of these Balance sheet amounts:

Year ended 31st August 2025

31.8.25

1.9.24

£

£

Cash and cash equivalents

5,629,928

5,895,293

Year ended 31st August 2024

31.8.24

1.9.23

£

£

Cash and cash equivalents

5,895,293

3,040,571

3.	Analysis of changes in net funds

Other

non-cash

At 1.9.24

Cash flow

changes

At 31.8.25

£

£

£

£

Net cash

Cash at bank

and in hand

5,895,293

(265,365

)

5,629,928

5,895,293

(265,365

)

5,629,928

Liquid resources

Current asset

investments

1

-

-

1

1

-

-

1

Debt

Finance leases

(3,995

)

3,995

(27,199

)

(27,199

)

(3,995

)

3,995

(27,199

)

(27,199

)

Total

5,891,299

(261,370

)

(27,199

)

5,602,730

1.	Statutory information

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

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

2.	Accounting policies

Basis of preparing the financial statements

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

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover arising from the sale of goods is recognised when the significant risks and rewards of ownership have passed to the buyer. Turnover arising from the provision of services is recognised as contract activity progresses and the right to consideration is earned.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Land and property

-

not provided

Improvements to property

-

25% on cost and 10% on cost

PGS, equipment & trays

-

25% on cost, 15% on cost, 12.5% on cost and 10% on cost

Motor vehicles

-

25% on cost

Office equipment

-

50% on cost

The directors consider that the property is maintained in such a state of repair that their residual value is at least equal to their net book value. As a result, the corresponding depreciation would not be material and therefore is not charged in the Income Statement.

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost includes all direct expenditure and appropriate proportion of fixed and variable overheads. Net realisable value is based on estimated selling prices less further costs expected to be incurred in bringing the stock to completion.

Financial instruments

The following assets and liabilities are classified as financial instruments - trade debtors, trade creditors, accruals, hire purchase contracts and directors' loans.

Hire purchase contracts are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method.

Directors' loans (being repayable on demand), trade debtors, trade creditors and accruals are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

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

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

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Investments

Fixed asset investments are valued at market value.

Current asset investments are at the lower of cost and net realisable value.

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the date of the transactions. All differences are taken to the Income Statement.

Provisions

Provisions are set up only where it is probable that a present obligation exists as a result of an event prior to the balance sheet date and that a payment will be required in settlement that can be estimated reliably. Where material, provisions are calculated on a discounted basis.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the balance sheet, bank overdrafts are shown within borrowings or current liabilities.

Government Grants

Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met.

Grants are credited to deferred government grants. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

Going concern

The directors have considered the company's financial position for a period of 12 months and beyond from the date of signing these financial statements and have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing these financial statements.

Employee benefits

Short term employee benefits, including holiday pay, are recognised as an expense in the Income Statement in the period in which they are incurred.

3.

Turnover

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

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

2025

2024

£

£

Sale of goods

17,065,342

15,446,702

17,065,342

15,446,702