Halse South West Limited

Contents

Company Information	1
Strategic Report	2
Directors' Report	3 to 4
Statement of Directors' Responsibilities	5
Independent Auditor's Report	6 to 9
Profit and Loss Account	10
Balance Sheet	11
Statement of Changes in Equity	12
Statement of Cash Flows	13
Notes to the Financial Statements	14 to 31

Halse South West Limited

Company Information

Directors

Mr P J Halse Mr J P Halse

Registered office

West Hill Brickyard Road Ottery St Mary Devon EX11 1GN

Solicitors

Foot Anstey Senate Court Southernhay Gardens Exeter Devon EX1 1NT

Bankers

Barclays Bank PLC 3 Bedford Street Exeter Devon EX1 1NT

Auditors

PKF Francis Clark Statutory AuditorSecond Floor Blackbrook Gate 1 Blackbrook Business Park Taunton Somerset TA1 2PX

Halse South West Limited

Strategic Report for the Year Ended 31 December 2025

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

Principal activity

The principal activity of the company is that of sale of agricultural machinery, equipment and supplies.

Review of the business

The year saw the highest levels of turnover to date and the company had a very strong year in terms of turnover. Margins were slighlty squeezed reflecting the seasonality of sales and margin variations across specific products sold. The directors continued with the strategy of maintaining high levels of both new and used stock, despite supply chain challenges, such that the business has been able to meet customer demand across its wide variety of equipment types. The business has also benefited from a stable and engaged workforce, complimenting the delivery of excellence to customers in the agricultural retail sector and the directors are delighted that this is reflected in the performance of the business.

The financial position of the company has remained stable with net assets of £6,061,772 (2024 - £5,565,741). Net current assets have increased to £3,712.545 from £869,964 for the year ending 31 December 2025. This is due to the bank borrowing facilities being up for renewal at the prior year end and therefore reclass to be due within one year. These were renewed during the year.

The current challenges faced by the UK economy, as well as the general pressures on the supply chain, has driven inflationary pressures that the business is well positioned to deal with as it continues to benefit from stable workforce, strong stock-holding and excellent customer service.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs	Unit	2025	2024
Turnover	£	35,314,299	29,537,612
Gross profit margin	%	9	10
Net cash flow for the year	£	351,680	(155,839)
Net profit before tax	£	721,360	681,523
Net current assets	£	3,712,545	869,964

Principal risks and uncertainties

The principal risks and uncertainties that face the company are considered to be the state of the agricultural industry as a whole within the country and the competition within that market.

Approved and authorised by the Board on 27 July 2026 and signed on its behalf by:
 

......................................... Mr P J Halse Director

Halse South West Limited

Directors' Report for the Year Ended 31 December 2025

The directors present their report and the financial statements for the year ended 31 December 2025.

Directors of the company

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

Mr P J Halse

Mr J P Halse

Dividends

Ordinary dividends were paid out amounting to £1,000 (2024: £nil).

Financial instruments

Objectives and policies

The company has exposure to three main types of risk, being liquidity risk and customer credit exposure. The company does not enter into any hedging transactions. The use, and nature, of finance instruments are determined by the directors, in context of trading terms made available to the company by the customers and suppliers, with the objective of securing the liquid and profitability of the company.

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

Due to the nature of the financial instruments used by the company, there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the availability of overdraft facilities at floating rates of interest and stocking loans.

Trade debtors are managed in respect of credit and cash flow risk policies concerning the credit offered to customers, and the regular monitoring of amounts outstanding for both time and limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. Trade creditors are paid in line with agreed credit terms and conditions, subject to correct invoicing.

Future developments

With the sixth generation of the Halse family now actively engaged in the business, robust management and the ongoing commitment to the development of staff, the directors are confident of the future progression of the company, and its continued support for the agricultural sector in the South West of England.

Halse South West Limited

Directors' Report for the Year Ended 31 December 2025

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 and authorised by the Board on 27 July 2026 and signed on its behalf by:
 

......................................... Mr P J Halse Director

Halse South West 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.

Halse South West Limited

Independent Auditor's Report to the Members of Halse South West Limited

Opinion

We have audited the financial statements of Halse South West Limited (the 'company') for the year ended 31 December 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 31 December 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 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.

Halse South West Limited

Independent Auditor's Report to the Members of Halse South West 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:

Halse South West Limited

Independent Auditor's Report to the Members of Halse South West Limited

As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the industry/sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we discussed with management the laws and regulations applicable to the company, reviewed certification identified on the company website and other communications and considered findings from previous audits.

The key laws and regulations we identified were Health & Safety at Work legislation, General Data Protection Regulations (GDPR), and Financial Conduct Authority (FCA) regulations.

We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily Companies Act 2006, Corporation Taxes Acts 2009 & 2010, and the Capital Allowances Act 2001.

We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place.

We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deal with reporting any issues if they arise.

As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue trading and the risk of material misstatement to the financial statements.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:

• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
• Reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance;
• Enquired with management to understand company's GDPR policy, as well as the occurrence and outcome of any reportable breaches
• Reviewed any health and safety incidents which have been reported under The Reporting of injuries, Diseases and Dangerous Occurrences Regulations 2013 ("RIDDOR") during the year; and
• Reviewed returns to the FCA for consistency with the financial records of the company and any non-compliance.

As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which management confirmed there had been none during or after the period.

We also evaluated the risk of fraud through management override. The key risks we identified were to meet compliance with financial loan covenants and minimise tax liabilities, and we determined that the principal risks were related to completeness in respect of revenue recognition, management override of controls and stock valuation.

Halse South West Limited

Independent Auditor's Report to the Members of Halse South West Limited

In response to the identified risk, as part of our audit work we:

• Used data analytics to test journal entries throughout the year, for appropriateness;
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates; and
• Undertook specific completeness procedures in respect of revenue recognition.

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.

......................................
Robert Deare (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Second Floor
Blackbrook Gate 1
Blackbrook Business Park
Taunton
Somerset
TA1 2PX

27 July 2026

Halse South West Limited

Profit and Loss Account

Year Ended 31 December 2025

	Note	2025 £	(As restated) 2024 £
Turnover	3	35,314,299	29,537,612
Cost of sales		(31,941,781)	(26,427,468)
Gross profit		3,372,518	3,110,144
Administrative expenses (excluding exceptional item)		(2,108,753)	(1,898,441)
Exceptional costs	4	(150,000)	-
Total administrative expenses (including exceptional item)		(2,258,753)	(1,898,441)
Operating profit	5	1,113,765	1,211,703
Other interest receivable and similar income	9	-	3,831
Interest payable and similar expenses	10	(392,405)	(534,011)
		(392,405)	(530,180)
Profit before tax		721,360	681,523
Tax on profit	11	(224,329)	(224,461)
Profit for the financial year		497,031	457,062

The above results were derived from continuing operations.

Halse South West Limited

Balance Sheet

31 December 2025

	Note	2025 £	2024 £
Fixed assets
Intangible assets	12	183,750	341,250
Tangible assets	13	4,417,541	4,096,576
Other financial assets	14	1,169,600	1,208,472
		5,770,891	5,646,298
Current assets
Stocks	15	10,861,770	9,238,685
Debtors	16	5,912,560	4,344,295
Cash at bank and in hand		3,763	8,722
		16,778,093	13,591,702
Creditors: Amounts falling due within one year	19	(13,065,548)	(12,721,738)
Net current assets		3,712,545	869,964
Total assets less current liabilities		9,483,436	6,516,262
Creditors: Amounts falling due after more than one year	19	(3,108,664)	(738,781)
Provisions for liabilities	22	(313,000)	(211,740)
Net assets		6,061,772	5,565,741
Capital and reserves
Called up share capital		100	100
Capital redemption reserve		2,000,000	2,000,000
Profit and loss account		4,061,672	3,565,641
Shareholders' funds		6,061,772	5,565,741

Approved and authorised by the Board on 27 July 2026 and signed on its behalf by:
 

......................................... Mr P J Halse Director

......................................... Mr J P Halse Director

Company Registration Number: 10231695

Halse South West Limited

Statement of Changes in Equity

Year Ended 31 December 2025

	Share capital £	Capital redemption reserve £	Profit and loss account £	Total £
At 1 January 2025	100	2,000,000	3,565,641	5,565,741
Profit for the year	-	-	497,031	497,031
Dividends	-	-	(1,000)	(1,000)
At 31 December 2025	100	2,000,000	4,061,672	6,061,772