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Kernock Park Plants Limited

Annual Report and Financial Statements
Year Ended 30 September 2025

Registration number: 03297350

 

Kernock Park Plants Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12 to 13

Notes to the Financial Statements

14 to 26

 

Kernock Park Plants Limited

Company Information

Directors

Mr R F Harnett

Mrs J P Harnett

Mr B R Harnett

Company secretary

Mr R F Harnett

Registered office

Kernock Park Pillaton
Saltash
Cornwall
PL12 6RY

Auditors

PKF Francis Clark
Statutory AuditorUnit 18, 23 Melville Building East
Royal William Yard
Plymouth
Devon
PL1 3GW

 

Kernock Park Plants Limited

Strategic Report for the Year Ended 30 September 2025

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

Principal activity

The principal activity of the company is that of growing and selling ornamental flowers and plants, primarily young plants.

Fair review of the business

The year began strongly, with solid first-quarter sales and favourable early-season weather in the UK giving us good reason for optimism. Across the wider industry, however, a more cautious market emerged. Prolonged heat and drought conditions across much of the country made additional sales increasingly challenging. While we achieved notable gains, growing revenue from several key customers and securing new business - overall market consolidation and natural customer attrition resulted in a more restrained outcome than initially expected.

Inflationary pressures, particularly rising labour costs and significant increases in National Insurance, continued to place pressure on margins. Combined with a small number of bad-debt cases, this reinforced the necessity for continued vigilance in risk management.

Despite these challenges, the company remains in a strong and stable position. Through disciplined cost control, robust budgeting, sound cashflow management and an ongoing focus on efficiency and with commitment across the business, we maintained profitability. We have continued to reinvest in Kernock, not only through capital expenditure but also through essential operational improvements, including heating infrastructure upgrades and glasshouse repairs. These investments support our resilience and readiness for the future.

After many years of research, trials and testing, we successfully completed our first season as a 100% peat-free propagation nursery - a milestone that reflects our commitment to environmental sustainability within our green sector. Alongside ongoing product innovation, our presence at prestigious events such as the RHS Chelsea Flower Show to increase awareness of our novelties, and our dedication to delivering high-quality products and service, we remain confident in our ability to grow and to take advantage of new opportunities as they arise.

Approved by the Board on 23 June 2026 and signed on its behalf by:

Mr B R Harnett
Director

   
     
 

Kernock Park Plants Limited

Directors' Report for the Year Ended 30 September 2025

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

Directors of the company

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

Mr R F Harnett - Company secretary and director

Mrs J P Harnett

Mr B R Harnett

Objectives and policies

In the opinion of the directors, the company's operations are not exposed to any significant financial risks. However, management monitors and takes action to mitigate the company's price, credit and liquidity risk.

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

Price risk
The company is at risk of volatility in prices of raw materials such as chemicals, compost and oil. The company mitigates its risk to this volatility by working to anticipate a contingency in price setting before orders are quoted.

Credit risk
The company works to mitigate credit risk by running a credit application process before taking on a new customer. Outstanding debt is actively monitored, and credit terms are updated when necessary.

Liquidity risk
There is a risk that the company could over trade and have insufficient funds available to pay debts as they fall due. This risk is mitigated by the fact that stock holdings are carefully managed and rapidly turned over, any outstanding debts are actively chased and good relationships are maintained with suppliers.

Future developments

We continue to develop and seek new products with a constant eye on innovation and better performance. We are developing new customers and more contract work for specific partners that wish to use our facilities. We also have an eye on other potential revenue streams outside of ornamental horticulture, so with our facilities we are not necessarily fixed in our current model and product portfolio. We also have a constant research and development program in new processes, production methods and technologies.

Research and development

As mentioned in future developments, we have a constant research and development program in new processes, production methods and technologies.

 

Kernock Park Plants Limited

Directors' Report for the Year Ended 30 September 2025

Going concern

We enter the new financial year with positive momentum. A substantial proportion of customer orders for the forthcoming season have already been confirmed, as is typical as we approach the end of the calendar year. Supplies have begun arriving at the nursery, and we are organising our workforce and resources to ensure we meet our commitments to customers in a timely and efficient manner.

Labour costs continue to present the greatest pressure on our margins, which have been significantly reduced in recent years within our labour-intensive business. Further increases are anticipated in the current year due to general inflation and uplifts in the National Living Wage. These expected increases have been incorporated into our budgeting and cashflow planning to ensure that they are carefully managed.

Consistent with previous years, we remain focused on maintaining a close alignment between labour and production requirements, and on minimising controllable costs to protect margins wherever possible. Reducing waste and surplus remains essential, and we are scrutinising and streamlining expenditure across all departments.

At the same time, we continue to work proactively to strengthen revenue in a market that remains somewhat cautious. Our ongoing commitment to new product development, together with our focus on enhancing product quality and service delivery, reinforces our position within the market. These efforts, supported by prudent financial management, underpin our confidence in the company’s ability to meet its obligations and confirm the ongoing viability of Kernock Park Plants Ltd. for the year ahead and beyond.

Disclosure of information to the auditors

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

Approved by the Board on 23 June 2026 and signed on its behalf by:

Mr B R Harnett
Director

   
     
 

Kernock Park Plants Limited

Statement of Directors' Responsibilities

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

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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

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

 

Kernock Park Plants Limited

Independent Auditor's Report to the Members of Kernock Park Plants Limited

Opinion

We have audited the financial statements of Kernock Park Plants Limited (the 'company') for the year ended 30 September 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 September 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

Kernock Park Plants Limited

Independent Auditor's Report to the Members of Kernock Park Plants Limited

Opinion on other matter prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

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

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

 

Kernock Park Plants Limited

Independent Auditor's Report to the Members of Kernock Park Plants Limited

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the company which were contrary to applicable laws and regulations, including fraud.

We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting.

Audit procedures performed by the engagement team include, but were not limited to, discussion and inquiries with management of compliance with laws and regulations and review of correspondence and contracts with third parties. We also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

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

Use of our report

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

......................................
James Barrett FCA (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Unit 18, 23 Melville Building East
Royal William Yard
Plymouth
Devon
PL1 3GW

23 June 2026

 

Kernock Park Plants Limited

Profit and Loss Account

Year Ended 30 September 2025

Note

2025
£

2024
£

Turnover

3

4,904,369

4,835,493

Cost of sales

 

(3,766,540)

(3,670,241)

Gross profit

 

1,137,829

1,165,252

Administrative expenses

 

(1,179,608)

(981,456)

Other operating income

4

110,790

44,582

Operating profit

6

69,011

228,378

Gain on financial assets at fair value through profit and loss

 

170,658

211,516

Net gain on disposal of financial assets

 

3,122

-

Other interest receivable and similar income

10

19,303

64,496

Interest payable and similar expenses

11

(20,207)

(20,000)

   

172,876

256,012

Profit before tax

 

241,887

484,390

Tax on profit

12

(64,216)

(105,040)

Profit for the financial year

 

177,671

379,350

The above results were derived from continuing operations.

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

 

Kernock Park Plants Limited

Balance Sheet

30 September 2025

Note

2025
£

2024
£

Fixed assets

 

Tangible assets

14

1,468,476

1,357,349

Other financial assets

15

2,485,924

1,650,648

 

3,954,400

3,007,997

Current assets

 

Stocks

41,620

40,960

Debtors

16

437,682

756,897

Cash at bank and in hand

 

1,907,589

2,895,045

 

2,386,891

3,692,902

Creditors: Amounts falling due within one year

18

(1,000,163)

(1,598,639)

Net current assets

 

1,386,728

2,094,263

Total assets less current liabilities

 

5,341,128

5,102,260

Creditors: Amounts falling due after more than one year

18

(107,827)

(22,068)

Provisions for liabilities

21

(274,897)

(219,459)

Net assets

 

4,958,404

4,860,733

Capital and reserves

 

Called up share capital

2,300

2,300

Capital redemption reserve

675,000

-

Fair value reserves

555,800

427,807

Profit and loss account

3,725,304

4,430,626

Shareholders' funds

 

4,958,404

4,860,733

Approved and authorised by the Board on 23 June 2026 and signed on its behalf by:
 

Mr B R Harnett
Director

   
     

Company Registration Number: 03297350

 

Kernock Park Plants Limited

Statement of Changes in Equity

Year Ended 30 September 2025

Share capital
£

Capital redemption reserve
£

Fair value reserve
£

Profit and loss account
£

Total
£

At 1 October 2024

2,300

-

427,807

4,430,626

4,860,733

Profit for the year

-

-

-

177,671

177,671

Total comprehensive income

-

-

-

177,671

177,671

Dividends

-

-

-

(80,000)

(80,000)

Fair value adjustments

-

-

127,993

(127,993)

-

Redemption of preference shares

-

675,000

-

(675,000)

-

At 30 September 2025

2,300

675,000

555,800

3,725,304

4,958,404

Share capital
£

Fair value reserves
£

Profit and loss account
£

Total
£

At 1 October 2023

2,300

269,170

4,433,913

4,705,383

Profit for the year

-

-

379,350

379,350

Dividends

-

-

(224,000)

(224,000)

Fair value adjustments

-

158,637

(158,637)

-

At 30 September 2024

2,300

427,807

4,430,626

4,860,733

 

Kernock Park Plants Limited

Statement of Cash Flows

Year Ended 30 September 2025

Note

2025
£

2024
£

Cash flows from operating activities

Profit for the year

 

177,671

379,350

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

205,956

190,452

Profit from disposals of investments

5

(3,122)

-

Finance income

10

(19,303)

(64,496)

Finance costs

11

20,207

20,000

Fair value changes in investment portfolio

 

(170,658)

(211,516)

Income tax expense

12

64,216

105,040

Foreign exchange gains/losses

 

12,756

-

 

287,723

418,830

Working capital adjustments

 

(Increase)/decrease in stocks

(660)

615

Decrease/(increase) in trade debtors

16

351,048

(259,953)

Increase in trade creditors

18

119,737

135,738

Increase/(decrease) in deferred income, including government grants

 

87,527

(736)

Cash generated from operations

 

845,375

294,494

Income taxes paid

12

(119,609)

(32,350)

Net cash flow from operating activities

 

725,766

262,144

Cash flows from investing activities

 

Interest received

10

19,303

64,496

Acquisitions of tangible assets

(317,083)

(52,927)

Net income and expenditure on investments

 

(12,418)

9,599

Acquisition of financial investments other than trading investments

 

(949,509)

-

Proceeds from disposal of financial investments other than trading investments

 

287,675

-

Net cash flows from investing activities

 

(972,032)

21,168

Cash flows from financing activities

 

Interest paid

11

(207)

-

Redemption of shares classified as liabilities

 

(675,000)

-

Payments to finance lease creditors

 

34,017

-

Interest on preference shares

 

(20,000)

(20,000)

Dividends paid

23

(80,000)

(224,000)

Net cash flows from financing activities

 

(741,190)

(244,000)

 

Kernock Park Plants Limited

Statement of Cash Flows

Year Ended 30 September 2025

Note

2025
£

2024
£

Net (decrease)/increase in cash and cash equivalents

 

(987,456)

39,312

Cash and cash equivalents at 1 October

 

2,895,045

2,855,733

Cash and cash equivalents at 30 September

 

1,907,589

2,895,045

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 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:
Kernock Park Pillaton
Saltash
Cornwall
PL12 6RY

These financial statements were authorised for issue by the Board on 23 June 2026.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

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

Basis of preparation

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

The financial statements have been prepared on a going concern basis, which assumes that the company will continue in operational existence for the foreseeable future. This depends on the continued financial support of the company's directors.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

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.

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2025

Tax

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

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

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

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

Asset class

Depreciation method and rate

Buildings

2% straight line

Motor vehicles

25% reducing balance

Furniture, fittings and equipment

33% straight line

Plant and machinery

25% reducing balance

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2025

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:

• Financial investments held at fair value,
• Short term trade and other debtors and creditors; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2025

3

Revenue

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

2025
£

2024
£

UK

4,904,369

4,835,493

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2025
£

2024
£

Government grants

21,205

4,583

Sub lease rental income

46,151

38,709

Miscellaneous other operating income

43,434

1,290

110,790

44,582

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2025
£

2024
£

Gain from disposals of investments

3,122

-

6

Operating profit

Arrived at after charging/(crediting)

2025
£

2024
£

Depreciation expense

205,956

190,452

Foreign exchange losses

12,756

-

Operating lease expense - plant and machinery

4,368

6,936

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2025

7

Staff costs

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

2025
£

2024
£

Wages and salaries

1,698,933

1,686,239

Social security costs

169,032

144,376

Pension costs, defined contribution scheme

147,386

146,641

Other employee expense

7,554

7,654

2,022,905

1,984,910

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

2025
No.

2024
No.

Production

50

49

Administration and support

18

17

68

66

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2025
£

2024
£

Remuneration

12,128

11,200

Contributions paid to money purchase schemes

120,000

120,000

132,128

131,200

During the year the number of directors who were receiving benefits and share incentives was as follows:

2025
No.

2024
No.

Accruing benefits under money purchase pension scheme

1

1

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2025

9

Auditor's remuneration

2025
£

2024
£

Audit of the financial statements

11,585

11,000


 

10

Other interest receivable and similar income

2025
£

2024
£

Interest income on bank deposits

19,272

64,474

Other finance income

31

22

19,303

64,496

11

Interest payable and similar expenses

2025
£

2024
£

Interest on preference shares

20,000

20,000

Interest on obligations under finance leases and hire purchase contracts

207

-

20,207

20,000

12

Taxation

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

2025
£

2024
£

Current taxation

UK corporation tax

8,778

79,020

Deferred taxation

Arising from origination and reversal of timing differences

55,438

26,020

Tax expense in the income statement

64,216

105,040

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2025

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - lower than the standard rate of corporation tax in the UK) of 19% (2024 - 25%).

The differences are reconciled below:

2025
£

2024
£

Profit before tax

241,887

484,390

Corporation tax at standard rate

45,959

121,098

Effect of revenues exempt from taxation

(32,974)

(53,164)

Effect of expense not deductible in determining taxable profit (tax loss)

13,000

10,673

Deferred tax expense relating to changes in tax rates or laws

45,937

52,879

Tax decrease from effect of adjustment in research and development tax credit

(7,706)

(26,446)

Total tax charge

64,216

105,040

Deferred tax

Deferred tax assets and liabilities

2025

Asset
£

Liability
£

Fixed asset timing differences

-

73,125

Provisions timing differences

2,154

-

Fair value movement on property

-

71,100

Fair value movement on investments

-

132,825

2,154

277,050

2024

Asset
£

Liability
£

Fixed asset timing differences

-

59,861

Provisions timing differences

1,662

-

Fair value movement on property

-

71,100

Fair value movement on investments

-

90,160

1,662

221,121

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2025

13

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 October 2024

1,000,000

1,000,000

At 30 September 2025

1,000,000

1,000,000

Amortisation

At 1 October 2024

1,000,000

1,000,000

At 30 September 2025

1,000,000

1,000,000

Carrying amount

At 30 September 2025

-

-

14

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 October 2024

900,000

50,325

82,650

2,863,821

3,896,796

Additions

-

2,376

35,597

279,110

317,083

At 30 September 2025

900,000

52,701

118,247

3,142,931

4,213,879

Depreciation

At 1 October 2024

81,000

50,325

72,416

2,335,706

2,539,447

Charge for the year

18,000

719

9,975

177,262

205,956

At 30 September 2025

99,000

51,044

82,391

2,512,968

2,745,403

Carrying amount

At 30 September 2025

801,000

1,657

35,856

629,963

1,468,476

At 30 September 2024

819,000

-

10,234

528,115

1,357,349

Included within the net book value of land and buildings above is £801,000 (2024 - £819,000) in respect of freehold land and buildings.
 

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2025

15

Other investments

Financial assets at fair value through profit and loss
£

Non-current financial assets

Cost or valuation

At 1 October 2024

1,650,648

Fair value adjustments

170,320

Additions

949,509

Disposals

(284,553)

At 30 September 2025

2,485,924

Impairment

At 30 September 2025

-

Carrying amount

At 30 September 2025

2,485,924

16

Debtors

Note

2025
£

2024
£

Trade debtors

 

318,737

479,662

Other debtors

 

30,515

26,438

Prepayments

 

56,597

150,797

Accrued income

 

-

100,000

Income tax asset

12

31,833

-

 

437,682

756,897

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2025

17

Cash and cash equivalents

2025
£

2024
£

Cash on hand

3,645

3,054

Cash at bank

1,903,944

2,891,991

1,907,589

2,895,045

18

Creditors

Note

2025
£

2024
£

Due within one year

 

Loans and borrowings

19

330,536

1,000,000

Trade creditors

 

118,036

37,627

Corporation tax

12

-

78,998

Social security and other taxes

 

120,174

142,378

Other creditors

 

191,815

131,194

Outstanding defined contribution pension costs

 

5,328

4,587

Accruals

 

156,932

156,762

Deferred income

 

77,342

47,093

 

1,000,163

1,598,639

Due after one year

 

Loans and borrowings

19

28,481

-

Deferred income

 

79,346

22,068

 

107,827

22,068

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2025

19

Loans and borrowings

Current loans and borrowings

2025
£

2024
£

Hire purchase contracts

5,536

-

Redeemable preference shares

325,000

1,000,000

330,536

1,000,000

The hire purchase contracts are secured over the assets to which they relate.

Redeemable preference shares

The redeemable preference shares are redeemable at the option of the holder. They are redeemable at £1 per share and carry no voting rights. On a winding up of the company the holders of the shares have a right to receive a pari passu distribution. Winding up value for each redeemable preference share is £1. Holders are entitled to fixed cumulative preferential dividends at the rate of 2% per annum. The dividends are recognised as an interest expense in the profit and loss.

20

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2025
£

2024
£

Not later than one year

7,275

6,074

Later than one year and not later than five years

12,209

9,744

19,484

15,818

The amount of non-cancellable operating lease payments recognised as an expense during the year was £7,856 (2024 - £7,275).

21

Provisions for liabilities

Deferred tax
£

Total
£

At 1 October 2024

219,459

219,459

Additional provisions

55,438

55,438

At 30 September 2025

274,897

274,897

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2025

22

Share capital

Allotted, called up and fully paid shares

2025

2024

No.

£

No.

£

Ordinary B shares of £1 each

100

100

100

100

Ordinary C shares of £1 each

100

100

100

100

Ordinary D shares of £1 each

100

100

100

100

Ordinary E shares of £1 each

100

100

100

100

Ordinary Y shares of £1 each

1,800

1,800

1,800

1,800

Ordinary Z shares of £1 each

100

100

100

100

Preference shares of £1 each

315,000

315,000

990,000

990,000

Preference A shares of £1 each

2,426

2,426

2,426

2,426

Preference B shares of £1 each

2,426

2,426

2,426

2,426

Preference C shares of £1 each

2,426

2,426

2,426

2,426

Preference D shares of £1 each

2,722

2,722

2,722

2,722

327,300

327,300

1,002,300

1,002,300

Redeemable preference shares

During the year 675,000 £1 preference shares were redeemed.

23

Dividends

Interim dividends paid

2025
£

2024
£

Interim dividend of £Nil per each Ordinary B shares

-

-

Interim dividend of £Nil per each Ordinary C shares

-

-

Interim dividend of £480.00 (2024 - £1,120.00) per each Ordinary D shares

48,000

112,000

Interim dividend of £Nil per each Ordinary E shares

-

-

Interim dividend of £Nil per each Ordinary Y shares

-

-

Interim dividend of £320.00 (2024 - £1,200.00) per each Ordinary Z shares

32,000

112,000

80,000

224,000

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2025

24

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £147,386 (2024 - £146,641).

Contributions totalling £5,328 (2024 - £4,587) were payable to the scheme at the end of the year and are included in creditors.

25

Related party transactions

Summary of transactions with other related parties

A director of the company is also a director of Proven Winners Europe Limited.

Income and receivables from related parties

2025

Other related parties
£

Receipt of services

23,108

2024

Other related parties
£

Receipt of services

50,964

Expenditure with and payables to related parties

2025

Other related parties
£

Rendering of services

45,636

2024

Other related parties
£

Rendering of services

67,414

26

Parent and ultimate parent undertaking

The ultimate controlling party is the directors who own 100% of the called up share capital.