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Registration number: 02871703

Denford Stud Limited
Unaudited Filleted Financial Statements
for the Year Ended 30 June 2025

Denford Stud Limited

Contents

Balance Sheet | 1
Notes to the Unaudited Financial Statements | 2 to 8

Denford Stud Limited

(Registration number: 02871703)
Balance Sheet as at 30 June 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 4 | 1,674,204 | 1,921,871
Current assets |  |  |
Stocks | 5 | 10,231,879 | 8,038,331
Debtors | 6 | 44,960 | 120,124
Cash at bank and in hand |  | 2,396 | 21,083
|  | 10,279,235 | 8,179,538
Creditors: Amounts falling due within one year | 7 | (14,847,424) | (12,039,445)
Net current liabilities |  | (4,568,189) | (3,859,907)
Total assets less current liabilities |  | (2,893,985) | (1,938,036)
Creditors: Amounts falling due after more than one year | 7 | (31,262) | (32,930)
Net liabilities |  | (2,925,247) | (1,970,966)
Capital and reserves |  |  |
Called up share capital |  | 27,449,978 | 27,449,978
Retained earnings |  | (30,375,225) | (29,420,944)
Shareholders' deficit |  | (2,925,247) | (1,970,966)

For the financial year ending 30 June 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• | The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
• | The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 29 May 2026

......................................... Mr N H D Ryder Director

Denford Stud Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

1 | General information

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

The address of its registered office is:
2 Old Bath Road
Newbury
Berkshire
RG14 1QL
England

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

Denford Stud Limited has reported a loss for the year ended 30 June 2025 of £954,281 (2024: £2,074,470). At the balance sheet date, the company had net liabilities of £2,925,247 (2024: £1,970,966) and net current liabilities of £4,568,189 (2024: £3,859,907). Loans from the ultimate beneficial owner were £11,925,684 (2024: £9,189,325) and from associated entities £1,643,738 (2024: £1,643,738)
The company has received confirmation from the ultimate beneficial owner that repayments of amounts advanced will not be required if that would compromise its ability to continue in business.
In addition, the company has also received confirmation from the ultimate beneficial owner that he will make available such further funds as are required in order to enable it to meet its liabilities as they fall due for the foreseeable future, being not less than twelve months from the date on which these financial statements were signed.
The financial statements have therefore been prepared on the going concern basis, which assumes that this will be the case.

Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Revenue from the sale of goods is recognised when all of the following condidtions are satisfied:
-The company has transferred the significant risks and rewards of ownership to the buyer;
-The company retains neither continuing managerial involvement to the degree usually associated with the owenershipnor effective control over the goods sold;
-The amount of revenue can be measured reliably;
- It is probable that the company will receive the consideration due under the transaction;
-The costs incurred or to be incurred in respect of the transaction can be measured reliably.

Denford Stud Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tangible assets

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

Depreciation

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

Asset class | Depreciation method and rate
Leasehold property improvements | 5% Straight Line
Plant & machinery | 33% Straight Line
Motor vehicles | 25% Reducing Balance
Computer equipment | 33% Straight Line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, 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.

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, Less any impairment.

Stocks

Bloodstock is valued individually under the cost model at the lower of cost or valuation at the balance sheet date.
The book value of broodmares and horses in training is considered on an annual basis and impairment adjustments are made where necessary. This is considered to be more appropriate than applying a systematic depreciation charge.
The cost of the homebred foals is determined as the aggregate of the cost of keep of the broodmares for one year and the annual write off of stallion share utilised or the cost of the nomination, as appropriate.
The costs of the foals and yearlings is increased by the cost of keep from the date of weaning, which is assumed to be 1 October, until the earlier of the date of transfer to training or 30 June of the year in which the horse reaches two years of age. The cost of foals and yearlings is not depreciated. Impair adjustments are made where necessary.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Denford Stud Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

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

3 | Staff numbers

The average number of persons employed by the company (including the director) during the year, was 9 (2024 - 8).

Denford Stud Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

4 | Tangible assets

| Land and buildings £ | Plant and machinery £ | Office equipment £ | Motor vehicles £ | Total £
Cost or valuation
At 1 July 2024 | 5,283,511 | 342,114 | 27,020 | 57,000 | 5,709,645
Additions | 51,550 | 423 | - | - | 51,973
Disposals | - | (43,049) | (7,120) | - | (50,169)
At 30 June 2025 | 5,335,061 | 299,488 | 19,900 | 57,000 | 5,711,449
Depreciation
At 1 July 2024 | 3,447,776 | 305,274 | 26,411 | 8,313 | 3,787,774
Charge for the year | 268,482 | 18,377 | 609 | 12,172 | 299,640
Eliminated on disposal | - | (43,049) | (7,120) | - | (50,169)
At 30 June 2025 | 3,716,258 | 280,602 | 19,900 | 20,485 | 4,037,245
Carrying amount
At 30 June 2025 | 1,618,803 | 18,886 | - | 36,515 | 1,674,204
At 30 June 2024 | 1,835,735 | 36,840 | 609 | 48,687 | 1,921,871

Included within the net book value of land and buildings above is £1,618,803 (2024 - £1,835,735) in respect of freehold land and buildings.

Denford Stud Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

5 | Stocks

| 2025 £ | 2024 £
Broodmares | 6,305,198 | 4,547,197
Youngstock | 1,948,163 | 1,741,562
Horses in training | 1,974,446 | 1,745,500
Other stock | 4,072 | 4,072
| 10,231,879 | 8,038,331

6 | Debtors

Current | 2025 £ | 2024 £
Prepayments | 36,321 | 37,055
Other debtors | 8,639 | 83,069
| 44,960 | 120,124

Denford Stud Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

7 | Creditors

Creditors: amounts falling due within one year

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Loans and borrowings | 8 | 656,426 | 601,956
Trade creditors |  | 528,308 | 516,766
Amounts owed to related parties | 10 | 1,643,738 | 1,643,738
Taxation and social security |  | 9,347 | 5,243
Other creditors |  | 12,009,605 | 9,271,742
|  | 14,847,424 | 12,039,445

Creditors: amounts falling due after more than one year

| Note | 2025 £ | 2024 £
Due after one year |  |  |
Loans and borrowings | 8 | 31,262 | 32,930

8 | Loans and borrowings

Current loans and borrowings

| 2025 £ | 2024 £
Bank overdrafts | 648,923 | 588,477
Hire purchase contracts | 7,503 | 13,479
| 656,426 | 601,956

Non-current loans and borrowings

| 2025 £ | 2024 £
Hire purchase contracts | 31,262 | 32,930

Hire purchase contract liabilities are secured on the assets to which they relate.

Denford Stud Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2025

9 | Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £5,375 (2024 - £9,982).

10 | Related party transactions

Other transactions with the director

During the year, the ultimate controlling party had a loan with the company. At the balance sheet date the amount owned to the ultimate controlling party was £11,925,684 (2024: £9,189,325). This loan is interest free, unsecured and potentially repayable on demand, subject to the company being able to continue in business following any repayment.

Summary of transactions with other related parties

During the year, the immediate parent had a loan with the company. At the balance sheet date the amount owned to the immediate parent was £1,643,738 (2024: £1,643,738). This loan is interest free, unsecured potentially repayable on demand.

11 | Parent and ultimate parent undertaking

The company's immediate parent is Denford Stud Jersey Limited, incorporated in Jersey.
The ultimate controlling party is HRH Prince Faisal Bin Salman Bin Abdulaziz Al Saud.