The directors present the strategic report for the year ended 30 September 2025.
The directors consider the year-end financial position of the Group to be disappointing but reflective of the challenges faced by the farming, food and distribution sectors generally.
The Group reported a net loss after tax of £775k for FY25 (£459k loss, FY24). Trading conditions remained challenging across both farming businesses.
The Group continues to support the Portuguese farming operation, which represents a part of the procurement programme for each winter season to ensure supply of high-quality produce to our customers.
The food sector within which the Group operates, continued to be stable into FY25. The company continues to adopt a strategy of diversifying into a broader range of customers, thereby helping to spread trading risk and reduce exposure in certain areas.
Consistent service levels continue to be a point of difference compared to competitors and developing long term customer relationships with all customers is a priority. However, the business continued to experience significant cost increases across the year, particularly in utility, labour and finance costs which continued to challenge trading margins.
The Group continues to have a loyal and committed core customer base that is forecast to grow into FY26.
In common with other business operating in the farming and food service sectors, the Group’s performance is susceptible to fluctuating producer prices and increased competition from imports. In addition, turnover from the individual farm can fluctuate from year to year depending on the range of crops grown, crop yields, producer prices, quality and wastage.
Weather conditions also play a large part in determining yields, quality and demand, which is largely out of the control of the producer.
As an importer of certain out of season produce, the company is also affected by worldwide climatic factors and exchange rate movements.
It is the directors’ view that the Group can withstand any anticipated detrimental impacts and still have the resources to trade successfully over the coming FY26.
Management use a range of financial and non-financial performance measures to monitor and manage the business. The key KPI’s used to determine the progress and performance are set out below:
Turnover
Turnover has decreased by 6.7% to £47.0m (£49.6m, FY24).
Gross Profit
The Group’s gross profit as a percentage of turnover has improved to 11.9% (10.9%, FY24).
Balance Sheet
The balance sheet shows that the Group’s net liabilities have increased from £1.3m to £1.8m.
Staff development
We recognise that our staff are fundamental to our success and that a strategic, professional approach to staff development will enable us to deliver our business objectives more effectively. We have continued to invest heavily in our staff during the year with a focus on creating an environmentally coherent approach to doing business that all stakeholders will appreciate and expect from a rapidly growing provider of fresh produce. Productivity remains a key focus, through investment in new equipment and technology to improve efficiency and competitiveness.
Sustainability
The Group has made significant advancements in its approach to long term sustainable farming and distribution. This includes investing in energy efficient production and distribution equipment that best reflects the group's commitment to reducing its long-term environmental footprint.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 September 2025.
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group’s principal financial instruments include bank overdrafts, loans, hire purchase arrangements and an invoice discounting facility, the main purpose of which is to provide finance for its operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.
Investment of cash surpluses and borrowings are made through banks and institutions which must fulfil credit rating criteria approved by the Board. All customers who wish to trade on credit terms are subject to credit verification procedures, and trade debtors are reviewed on a regular basis with provision made for doubtful debts when necessary.
The group operates a treasury function which is responsible for managing the liquidity, interest and currency risk associated with its activities.
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring it has sufficient liquid resources to meet the operating needs of the business.
The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on bank overdrafts and loans.
The group is a non-discriminatory employer operating an Equal Opportunities Policy which aims to eliminate unfair discrimination, harassment, victimisation and bullying. The group is committed to ensuring that all individuals are treated fairly, with respect and are valued irrespective of disability, race, gender, health, social class, sexual preference, marital status, age or membership or non-membership of a trade union.
The group uses consultative procedures agreed with its staff and elected representatives with a view to ensuring that employees are aware of employment legislation with regard to their roles and responsibilities. Employee and food safety is at the centre of our company culture, with focus on processes and procedures that strengthen and reinforce this with the whole workforce. The employees are invited to participate in an annual survey to monitor employee satisfaction.
Results are followed through using employee focus groups to understand the key issues highlighted by the survey. Employees make recommendations at these forums which are then developed into action plans.
The Group is expected to continue investing in its people and growing technology to maintain its strong position in the market. The Watts Farm Group has strong commitments to all of its customers to provide them with the best products available in the market now and in the future.
The company is exempt from reporting Part 7A disclosures on the basis that the company itself has consumed less than 40,000 kWh of energy in the United Kingdom during the year and each of its subsidiaries are themselves exempt from energy reporting requirements.
United Kingdom company law requires the directors to prepare financial statements for each financial year. Under that law, the directors have elected to prepare the group and parent company 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 group and parent company, and of the profit or loss of the group 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;
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 group and parent company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 group and parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Watts Farms Fresh Produce Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2025 which comprise the group profit and loss account, 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 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 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 directors 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
• those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
• those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include food safety legislation and various industry standards.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting
irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the
effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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 section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £324,107 (2024 - £35,469 profit).
Watts Farms Fresh Produce Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office and principal place of business is Section A, Unit 14, Mills Road, Quarry Wood Industrial Estate, Aylesford, Kent, ME20 7NA.
The group consists of Watts Farms Fresh Produce Holdings 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 and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Watts Farms Fresh Produce Holdings 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 30 September 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.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The directors are of the view that the budgets and forecasts for the next twelve months are realistic and achievable.
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 assumption is based on the company’s ability to manage cash flows and settle short term liabilities as they fall due using the various financial resources at its disposal, including cash generated from the sale of group property post year end and ongoing facilities offered by funders and the support of Directors and certain related parties.
In addition, the Portuguese growing activity at Quinta Fresca, now operating on a targeted, smaller scale, will continue to help the directors evaluate business performance and ease the financial pressures experienced across the group in recent years, enabling the business to assess the future viability of this part of the group.
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Land is not depreciated, and nor are freehold buildings on the basis that the estimated lives are deemed to be so long and the estimated residual values so high that any charge for depreciation would not be considered material.
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.
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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
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.
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
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 expense for the period comprises 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 group operates and generates taxable income.
Enhanced tax relief claims in relation to research and development are made, time permitting, in the same accounting period for which the eligible expenditure is identified. This means the claims will be matched to the correct accounting period where possible. Otherwise, tax recoverable in relation to retrospective claims are recognised in the accounting period when those claims are submitted to HMRC.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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.
When the group acts as a lessor, a lease is classified as a finance lease whenever it transfers substantially all the risks and rewards of ownership of the underlying asset to the lessee, either at the end of the lease term or for the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains both lease and non-lease components, the group allocates the consideration in the contract to the two elements.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
The company has adopted the accrual model for accounting for government grants. Grants relating to revenue are recognised in income on a systematic basis over the same period as the related costs for which the grant is intended to compensate. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset.
Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of 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 rates prevailing on the initial transaction dates.
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
In the application of the group's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historic experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
Specifically, judgements and estimates are required in determining the useful economic lives of fixed assets, the valuation of stock, the recoverability of trade debtors and the use of the going concern basis of preparation.
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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Government grants received consist of grants from the Rural Payments Agency of £234,240 (2024: £325,127).
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge 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:
The group has unused tax losses of £2,727,612 (2024: £4,252,670) for which a deferred tax asset is recognised on the balance of losses necessary to offset against the deferred tax liability in relation to accelerated capital allowances.
The company has unused tax losses of £nil (2024: £nil) for which a deferred tax asset is recognised on the balance of losses necessary to offset against the deferred tax liability in relation to accelerated capital allowances.
Revaluation
Land and buildings comprises a property at Harlow with depreciated historic cost of £396,550. The property was professionally valued on 13 June 2022 at £450,000, the property was sold after year end for £750,000. The basis of the valuation is "Market value" following the relevant RICS valuation guidelines, the directors incorporated this sale value into the accounts for the current year. The directors consider this a reasonable approximation of "Fair value" as is the requirement of FRS102.
Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:
The investment property comprises a property in Dartford with historic cost of £1,678,145, including £144,145 of subsequent enhancement expenditure. Revaluation adjustments of £966,000 arising prior to the property being reclassified as "investment property" in 2019 are included in the revaluation reserve.
The property was professionally valued most recently on 18 January 2022 by an independent firm of Chartered Surveyors at £3,900,000 and the directors have incorporated this valuation into the accounts for the year ended 30 September 2022. The basis of the valuation is "Market value" following the relevant RICS valuation guidelines and the directors consider this a reasonable approximation of "Fair value" as is the requirement of FRS102.
In April 2025 the company disposed of an investment property for proceeds of £4,051,347. The property had a carrying value of £3,900,000 immediately prior to disposal. A gain on disposal has been recognised within profit and loss for the year.
Details of the company's subsidiaries at 30 September 2025 are as follows:
Group
Growing and harvested crops include biological assets (i.e. perennial crops such as asparagus, chives and mint). Perennials had a carrying value at the beginning of the year of £179,702, less depreciation of £23,385, leaving a carrying value at the year-end of £156,317.
Other creditors includes amounts due to HSBC Invoice Finance (UK) Limited of £4,743,033 (2024: £5,269,729) under the terms of an invoice discounting arrangement. This liability is secured on the debts concerned and by a fixed charge over certain non-vesting debts.
Finance lease liabilities
Hire purchase and finance lease agreements are repayable in monthly instalments under normal commercial terms. The liabilities are secured against the assets concerned.
Bank loans
Bank borrowings include two term loans provided by HSBC. Security is as follows:
- a cross guarantee and debenture dated 21 February 2019 with subsidiary undertakings incorporating a fixed and floating charge over the Group's assets.
- legal mortgages over the company's leasehold and freehold properties dated 21 Feburary 2019.
These loans are repayable by monthly instalments and interest is charged at 1.45 percentage points above base. The carrying value at the year end was £nil (2024: £1,655,448). The loan was fully repaid with the proceeds gained from sale of the investment property
Bank borrowings also include an HSBC loan facility under the Coronavirus Business Interruption Loan (CBIL) scheme whereby the Secretary of State for Business, Energy and Industrial Strategy has provided a guarantee to the bank under the terms of the CBIL scheme. This is supported by personal guarantees provided by the directors.
The CBIL loan is repayable in monthly instalments and interest is charged at 3.99 percentage points above base. The carrying value at the year end was £215,625 (2024: £539,062).
Hire purchase and finance lease agreements are repayable in monthly instalments under normal commercial terms. The liabilities are secured against the assets concerned.
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:
The amount of non-cancellable operating lease payments recognised as an expense during the year was £492,575 (2024 - £382,441).
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.
Subsequent to the balance sheet date, on 28 November 2025, the Company completed the sale of its freehold property for proceeds of £750,000. The directors consider that the sale provides additional evidence of the fair value of the property at the balance sheet date. Accordingly, the carrying value of the property has been adjusted in these financial statements to £730,000, and the resulting revaluation has been reflected in the financial statements. The sale completed before the financial statements were authorised for issue.
Within cash at bank as at 30 September 2024 £447,798 was held under a rent deposit deed providing security in respect the lease contract for our investment property. The property was sold in the current year. As at 30 September 2025 the remaining £696 relates to interest accrued on the deposit and will be transferred out of the account post year end.
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions:
The holders of Ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All Ordinary shares rank equally with regard to the company's residual assets.
The profit and loss account includes £nil (2024: £1,397,425) of non-distributable reserves in relation to post tax unrealised gains on investment property due to the sale of the investment property in the year.
The company has taken advantage of the exemption in FRS102 33.1A "Related Party Disclosures" from disclosing transactions with other members of the group.
Directors' loans are unsecured, interest free and repayable on demand.