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Compass Tractors Limited
Annual Report and Financial Statements
Year Ended 31 December 2025

Registration number: 04991388

Compass Tractors Limited

Contents

Company Information | 1
Strategic Report | 2 to 3
Directors' Report | 4 to 5
Statement of Directors' Responsibilities | 6
Independent Auditor's Report | 7 to 10
Profit and Loss Account | 11
Balance Sheet | 12
Statement of Changes in Equity | 13
Notes to the Financial Statements | 14 to 31

Compass Tractors Limited

Company Information

Directors | Mr J P W Nichols Mr R A J Parris

Registered office | Market Way North Petherton Bridgwater Somerset TA6 6DF

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

Compass Tractors 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 the sale of, repair, supply of parts for and servicing of agricultural machinery and vehicles.

Review of the business

The directors are pleased to report that the results shown in these financial statements present strong profitability once again, along with continued balance sheet growth, despite the uncertain UK and agricultural sector economic conditions.
Key to the success of the company is the continuation of prestigious and well-known dealership franchises. The company manages the security of these franchises by maintaining good customer relationships and by the close involvement of the directors, who monitor service levels and compliance with franchise dealer standards.
Turnover for the year decreased by £942,158 (3%) versus the year ended 31 December 2024.The gross margin increased to 9.3% from 7.3% and the net profit before tax has increased from £776k to £962k. This is mainly due to an increase in profit margin.
Overheads have remained under close control throughout the year with the number of employees remaining relatively consistent.
As at 31 December 2025, the balance sheet of the company has strengthened. Net assets have overall increased from £5,205,743 to £5,925,409 with net current assets increasing from £1,861,564 to £2,101,866.
The year saw a net cash inflow of £719,651 (2024 - £269,897). A further investment of £2,035k was made for fixed assets additions, of which £1,918k was for plant and machinery.

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

| Unit | 2025 | 2024
Turnover | £ | 23,194,071 | 24,136,229
Gross Margin | £ | 2,155,545 | 1,758,888
Gross Margin | % | 9 | 7
Profit before tax | £ | 962,149 | 776,416
Net cash flow | £ | 719,651 | 269,897
EBITDA | £ | 1,182,787 | 888,035

In light of the uncertainties summarised below, but taking into accounts the positive trading for 2024 and 2025, the directors remain positively optimistic. They also recognise that steps are required to ensure that the stock holding moving forward is sufficient to meet customer demand and service levels. The directors are actively managing this.

Compass Tractors Limited

Strategic Report for the Year Ended 31 December 2025

Principal risks and uncertainties

The principal risks and uncertainties which face the company is a potential down turn in the agricultural market. This is influenced by economic and political factors as well as the weather. The directors manage this by stocking a diverse range of products and brands.

Approved by the Board on 7 August 2026 and signed on its behalf by:

......................................... Mr J P W Nichols Director |  |

Compass Tractors 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 J P W Nichols

Mr R A J Parris

Financial instruments

Objectives and policies

The company's activities expose it to a number of financial risks including credit risk, cashflow risk and liquidity risk. The use, and nature, of financial instruments are determined by the directors, in the context of trading terms made available to the company by the customers and suppliers, with the objective of securing the liquidity and profitability of the company.

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

The company has a normal level of exposure to price, liquidity and cash flow risks arising from trading activities.
Liquidity risk - the company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business. Liquidity risk is managed through working capital facilities provided by the company’s bankers and a stocking loan provided by the franchiser.
Interest rate risk - the company is exposed to interest rate risk on its variable rate borrowings. Management continue to monitor the effect of changes in interest rates and manage borrowings to achieve finance at a rate aligned with the company’s long term strategy. The company’s borrowings are a mixture of fixed and variable rates of interest, the company is therefore exposed to interest rate risk on variable rate borrowings.
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.

Compass Tractors Limited

Directors' Report for the Year Ended 31 December 2025

Future developments

The directors believe that the franchisers products remain at the forefront of the market for premium tractors and are confident that this will stand the company in good stead in the coming year.

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 7 August 2026 and signed on its behalf by:

......................................... Mr J P W Nichols Director

Compass Tractors 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.

Compass Tractors Limited

Independent Auditor's Report to the Members of Compass Tractors Limited

Opinion

We have audited the financial statements of Compass Tractors Limited (the 'company') for the year ended 31 December 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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.

Compass Tractors Limited

Independent Auditor's Report to the Members of Compass Tractors 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 6, 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:

Compass Tractors Limited

Independent Auditor's Report to the Members of Compass Tractors 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), Financial Conduct Authority (FCA) regulations and the EU-UK Trade and Cooperation Agreement.
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;
•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;
• Enquires of management regarding their knowledge of any issues with exporting during the year; and
• Reviewed the return 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 maintain customer relationships through securing tax/financing advantages for them and manipulation of profits to obtain tax advantages. We determined that the principal risks were related to cut-off in respect of revenue recognition, management override of controls and stock valuation and provision.
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 cut-off procedures in respect of revenue recognition.

Compass Tractors Limited

Independent Auditor's Report to the Members of Compass Tractors Limited

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

11 August 2026

Compass Tractors Limited

Profit and Loss Account

Year Ended 31 December 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 23,194,071 | 24,136,229
Cost of sales |  | (21,038,526) | (22,377,231)
Gross profit |  | 2,155,545 | 1,758,998
Administrative expenses |  | (1,146,773) | (921,404)
Other operating income | 4 | 91,350 | 95,407
Operating profit | 5 | 1,100,122 | 933,001
Other interest receivable and similar income | 9 | 2,111 | 2,712
Interest payable and similar expenses | 10 | (140,084) | (159,297)
|  | (137,973) | (156,585)
Profit before tax |  | 962,149 | 776,416
Tax on profit | 11 | (242,483) | (194,899)
Profit for the financial year |  | 719,666 | 581,517

Compass Tractors Limited

Balance Sheet

31 December 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 12 | 3,066,544 | 2,639,786
Investment property | 13 | 3,268,706 | 3,268,706
|  | 6,335,250 | 5,908,492
Current assets |  |  |
Stocks | 14 | 6,028,950 | 2,985,089
Debtors | 15 | 2,269,834 | 4,455,702
Cash at bank and in hand |  | 982,579 | 262,928
|  | 9,281,363 | 7,703,719
Creditors: Amounts falling due within one year | 17 | (7,179,497) | (5,842,155)
Net current assets |  | 2,101,866 | 1,861,564
Total assets less current liabilities |  | 8,437,116 | 7,770,056
Creditors: Amounts falling due after more than one year | 17 | (1,881,766) | (2,022,251)
Provisions for liabilities | 20 | (629,941) | (542,062)
Net assets |  | 5,925,409 | 5,205,743
Capital and reserves |  |  |
Called up share capital |  | 10 | 10
Profit and loss account |  | 5,925,399 | 5,205,733
Shareholders' funds |  | 5,925,409 | 5,205,743

Approved and authorised by the Board on 7 August 2026 and signed on its behalf by:

......................................... Mr J P W Nichols Director

Company Registration Number: 04991388

Compass Tractors Limited

Statement of Changes in Equity

Year Ended 31 December 2025

| Share capital £ | Profit and loss account £ | Total £
At 1 January 2025 | 10 | 5,205,733 | 5,205,743
Profit for the year | - | 719,666 | 719,666
At 31 December 2025 | 10 | 5,925,399 | 5,925,409

| Share capital £ | Profit and loss account £ | Total £
At 1 January 2024 | 10 | 4,690,216 | 4,690,226
Profit for the year | - | 581,517 | 581,517
Dividends | - | (66,000) | (66,000)
At 31 December 2024 | 10 | 5,205,733 | 5,205,743

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

1 | General information

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

The address of its registered office is:
Market Way
North Petherton
Bridgwater
Somerset
TA6 6DF

These financial statements were authorised for issue by the Board on 7 August 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'. There are no material departures from FRS 102.

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.

Summary of disclosure exemptions

The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its financial statements. Exemptions have been taken in relation to financial instruments, presentation of a cash flow statement and key management personnel compensation.

Going concern

The company made a profit for the year of £719,666 and reported net current assets of £2,101,866 at the balance sheet date.
The company is highly profitable, but the nature of the business and sector is such that the working capital cycle is generally long and a significant working capital investment in stock is required to operate profitability. This can result in periods of limited headroom within the company’s existing facilities, which comprise a mortgage, bank overdraft and a stocking plan. Whilst the company operates within a sector which makes reliable forecasting extremely difficult, both in terms of sales activity and cash conversion, the directors are highly experienced in managing such periods. The company also benefits from long-standing relationships with its bankers, key customers and key suppliers.

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

On the basis of their assessment of the company’s financial position and resources, including the performance of the company since 31 December 2025, and having considered the impact of the wider economy and conditions in the sector the business operates, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors are satisfied that it remains appropriate for the company to adopt the going concern basis of accounting in preparing these financial statements.

Changes to FRS 102 in future periods
The Financial Reporting Council has published changes to FRS 102 which will take effect in next year's financial statements. The main rule changes are to revenue and leases.
There is no requirement to restate figures from previous years, so we do not expect any changes to the figures we report here for the year to December 2025 or any earlier periods.
The main impact on figures for the year to December 2026 is that our main leases, in particular for the building we rent, will be brought onto the balance sheet - increasing both Tangible Fixed Assets and Lease Liabilities from 1 January 2026 onwards. Payments on these leases after 1 January 2026 will be classified as depreciation or interest payable.

Key accounting judgements and sources of estimation uncertainty

In application of the company’s accounting policies the directors are required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The judgements and associated assumptions are based on historical experiences and other factors that are considered to be relevant. Actual results may differ from these estimates.
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 where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.
The key judgement in these financial statements is in respect of the going concern assessment. The directors are satisfied, having considered post year end and forecasted financial performance, having made all necessary enquiries and, in particular, considered the ongoing availability of bank facilities, that the going concern basis of preparation remains appropriate .

Investment property is carried at fair value based on the valuation carried out by the directors. The valuations used observable market prices adjusted as necessary for any difference in the nature, location or condition of the specific asset. The carrying amount is £3,268,706 (2024 - £3,268,706).

Tangible fixed assets are carried at cost, less accumulated depreciation and any subsequent accumulated impairment loss. This requires an estimation in the depreciation rates used and residual values attainable when the assets are sold, as well as an assessment of the ongoing economic contribution of the assets of the company as to whether an indicator of impairment has occurred. The carrying amount is £3,066,544 (2024 - £2,639,786).

Stock is measured at the lower of cost and net realisable value. This requires estimation as to the net realisable value of each stock line, as to whether a provision is required. The carrying amount is £6,028,950 (2024 - £2,985,089).

Trade debtors are constantly being managed and are reviewed throughout the year. A provision for doubtful debt is made where recovery of debt is uncertain, this is on a case by case basis. The carrying amount is £1,539,733 (2024 - £3,441,715).

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

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.
Revenue relating to the sale of goods is recognised in the profit and loss account on despatch or collection. Where customers are invoiced prior to despatch of goods a deferred income balance arises which is included within accruals and deferred income within current liabilities. For goods which are collected this is recognised in the profit and loss account once the customer has been notified that the goods are available to collect.
Revenue relating to the sale of services is recognised in the profit and loss account when the service has been provided.

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 over their estimated useful lives, as follows:

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

Asset class | Depreciation method and rate
Land and buildings | 2%-10% straight line
Plant and machinery | 10%-25% reducing balance
Fixtures and fittings | 25% reducing balance
Motor vehicles | 25% reducing balance
Demo stock | 25% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Stocks

Stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks, Net realisable value is based on selling price less anticipated costs to completion and selling costs, Costs represent the purchase price of goods for resale, net discounts receivable.

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

Retirement benefits to employees are provided by a money purchase scheme which is funded by the company. Payments are made to pension trusts which are financially separate from the company. The payments are charged against profit in the year in which they become payable.

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

Financial instruments

Classification
The company holds the following financial instruments:
• Short term trade and other debtors and creditors;
• Hire purchase and finance leases;
• Bank loans; 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.
Except for bank loans and hire purchase and finance lease obligations, 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.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Assets held under hire purchases and finance lease are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. The asset is subsequently measured as discussed in the tangible fixed asset accounting policy above. Finance lease obligations are subsequently measured at amortised cost using the effective interest method.

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

3 | Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Sale of goods | 21,533,392 | 22,314,387
Rendering of services | 1,553,394 | 1,549,348
Commissions received | 107,285 | 272,494
| 23,194,071 | 24,136,229

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

| 2025 £ | 2024 £
UK | 22,484,380 | 22,224,200
Europe | 689,740 | 1,911,831
Rest of world | 19,951 | 198
| 23,194,071 | 24,136,229

4 | Other operating income

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

| 2025 £ | 2024 £
Rental from investment property | 91,350 | 95,407

5 | Operating profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 321,975 | 322,784
Operating lease expense - property | 156,165 | 157,723
Profit on disposal of property, plant and equipment | (239,310) | (367,750)

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

6 | Staff costs

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

| 2025 £ | 2024 £
Wages and salaries | 1,333,580 | 1,267,887
Social security costs | 162,342 | 138,425
Pension costs, defined contribution scheme | 31,688 | 29,170
| 1,527,610 | 1,435,482

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 | 14 | 15
Administration and support | 1 | 1
Other departments | 14 | 11
| 29 | 27

7 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 178,833 | 180,467
Contributions paid to money purchase schemes | 5,550 | 5,550
| 184,383 | 186,017

During the year the number of directors for whom retirement benefits are accruing under defined contribution schemes are as follows:

| 2025 No. | 2024 No.
Accruing benefits under money purchase pension scheme | 1 | 1

8 | Auditor's remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 21,000 | 20,000

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

9 | Other interest receivable and similar income

| 2025 £ | 2024 £
Other finance income | 2,111 | 2,712

10 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on bank overdrafts and borrowings | 133,313 | 147,600
Interest on obligations under finance leases and hire purchase contracts | 6,771 | 11,697
| 140,084 | 159,297

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

11 | Taxation

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

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 154,604 | 307,229
Deferred taxation |  |
Arising from origination and reversal of timing differences | 87,879 | (112,330)
Tax expense in the income statement | 242,483 | 194,899

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Profit before tax | 962,149 | 776,416
Corporation tax at standard rate | 240,537 | 194,104
Tax increase from effect of capital allowances and depreciation | 183 | 18,302
Effect of expense not deductible in determining taxable profit (tax loss) | 1,763 | 955
Tax decrease from other tax effects | - | (18,462)
Total tax charge | 242,483 | 194,899

Deferred tax

Deferred tax assets and liabilities

2025 | Liability £
Fixed asset timing differences | 629,941

2024 | Liability £
Fixed asset timing differences | 542,062

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

12 | Tangible assets

| Land and buildings £ | Fixtures and fittings £ | Motor vehicles £ | Plant and machinery £ | Total £
Cost or valuation
At 1 January 2025 | 573,240 | 399,308 | 404,733 | 2,556,042 | 3,933,323
Additions | - | 1,918 | 115,012 | 1,917,987 | 2,034,917
Disposals | - | (730) | (153,253) | (1,634,197) | (1,788,180)
At 31 December 2025 | 573,240 | 400,496 | 366,492 | 2,839,832 | 4,180,060
Depreciation
At 1 January 2025 | 150,677 | 317,020 | 192,683 | 633,157 | 1,293,537
Charge for the year | 21,251 | 20,656 | 64,279 | 215,789 | 321,975
Eliminated on disposal | - | - | (64,933) | (437,063) | (501,996)
At 31 December 2025 | 171,928 | 337,676 | 192,029 | 411,883 | 1,113,516
Carrying amount
At 31 December 2025 | 401,312 | 62,820 | 174,463 | 2,427,949 | 3,066,544
At 31 December 2024 | 422,563 | 82,288 | 212,050 | 1,922,885 | 2,639,786

Included within the net book value of land and buildings above is £378,819 (2024 - £387,838) in respect of freehold land and buildings and £22,493 (2024 - £34,725) in respect of long leasehold land and buildings.

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

| 2025 £ | 2024 £
Plant and machinery | 218,000 | 203,437

13 | Investment properties

| 2025 £
At 1 January | 3,268,706
At 31 December | 3,268,706

The directors consider that the investment property has not materially changed in value during the period. There was no subsequent valuation in the period by an independent valuer.

14 | Stocks

| 2025 £ | 2024 £
Finished goods and goods for resale | 6,028,950 | 2,985,089

15 | Debtors

| 2025 £ | 2024 £
Trade debtors | 1,539,733 | 3,441,715
Other debtors | 225,535 | 295,683
Prepayments and accrued income | 504,566 | 718,304
| 2,269,834 | 4,455,702

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

16 | Cash and cash equivalents

| 2025 £ | 2024 £
Cash on hand | 2,052 | 1,412
Cash at bank | 980,527 | 261,516
| 982,579 | 262,928

17 | Creditors

| Note | 2025 £ | 2024 £
Due within one year |  |  |
Loans and borrowings | 18 | 307,306 | 657,260
Trade creditors |  | 1,547,387 | 2,238,965
Amounts due to group undertakings | 24 | 380 | 380
Social security and other taxes |  | 87,786 | 43,626
Outstanding defined contribution pension costs |  | 725 | 134
Other creditors |  | 24,814 | 45,572
Accruals and deferred income |  | 5,056,495 | 2,548,989
Corporation tax | 11 | 154,604 | 307,229
|  | 7,179,497 | 5,842,155
Due after one year |  |  |
Loans and borrowings | 18 | 1,881,766 | 2,022,251

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

18 | Loans and borrowings

Current loans and borrowings

| 2025 £ | 2024 £
Bank borrowings | 133,106 | 99,903
Hire purchase contracts and finance lease liabilities | 174,200 | 557,357
| 307,306 | 657,260

Non-current loans and borrowings

| 2025 £ | 2024 £
Bank borrowings | 1,881,766 | 2,022,251

Bank borrowings

The bank borrowings are denominated in sterling with a nominal interest rate of 2% above the Bank of England base rate, and the final instalment is due on 23 August 2027. The carrying amount at year end is £2,014,872 (2024 - £2,122,154). The bank loan and overdraft are secured by way of a personal limited guarantee by the directors for £600,000 as well as a charge over the freehold property belonging to the company and a debenture on the assets of the company and a cross guarantee with the parent of the group.

Finance lease liabilities

Finance lease liabilities is denominated in sterling with a nominal interest rate of 3.76%, and the final instalment is due on 29 January 2026. The carrying amount at year end is £174,200 (2024 - £557,357).

Finance lease liabilities are secured on the assets to which they relate.

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

19 | 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 | 132,535 | 136,399
Later than one year and not later than five years | 482,754 | 482,230
Later than five years | 330,000 | 450,000
| 945,289 | 1,068,629

The amount of non-cancellable operating lease payments recognised as an expense during the year was £145,697 (2024 - £161,200).

20 | Deferred tax provision

| Deferred tax £
At 1 January 2025 | 542,062
Increase/ (Decrease) in existing provisions | 87,879
At 31 December 2025 | 629,941

21 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary A Shares of £1 each | 5 | 5 | 5 | 5
Ordinary B Shares of £1 each | 5 | 5 | 5 | 5
| 10 | 10 | 10 | 10

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

Rights, preferences and restrictions

Ordinary A Shares have the following rights, preferences and restrictions: Equal and ordinary voting rights with no preferences or restrictions.
Ordinary B Shares have the following rights, preferences and restrictions: Equal and ordinary voting rights with no preferences or restrictions.

22 | Dividends

Interim dividends paid

|  | 2025 £ |  | 2024 £
Interim dividend of £Nil (2024 - £13,200.00) per each Ordinary A Shares |  | - |  | 66,000
Interim dividend of £Nil per each Ordinary B Shares |  | - |  | -
|  | - |  | 66,000

23 | Pension scheme

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 £31,688 (2024 - £29,170).
Contributions totalling £725 (2024 - £134) were payable to the scheme at the end of the year and are included in creditors.

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

24 | Related party transactions

Transactions with directors

2025 | At 1 January 2025 £ | Advances to director £ | Repayments by director £ | At 31 December 2025 £
Director 1
Director's loan account - 2.5% interest | 2,932 | (116,317) | 114,570 | 1,185
Director 2
Director's loan account - 2.5% interest | 3,779 | - | - | 3,779

2024 | At 1 January 2024 £ | Advances to director £ | Repayments by director £ | At 31 December 2024 £
Director 1
Director's loan account - 2.5% interest | (138,345) | (21,987) | 163,264 | 2,932
Director 2
Director's loan account - 2.5% interest | 3,779 | - | - | 3,779

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

Summary of transactions with other related parties

Transactions with other related parties connected by virtue of common directorship or ownership:
A company with all of its directors in common with the Company:
An amount of £nil (2024 - £1,760) was due to this related party as at year end.
A company with all directors and shareholders in common with the Company:
An amount of £308,412 (2024 - £993,976 owed from) was owed to this related party as at year end. During the year, sales were made to the related party of £426,726 (2024 - £403,821) and purchases made of £1,424,771 (2024 - £121,440).
A company with 50% of its directors and shareholders in common with the Company:
An amount of £1,478 (2024 - £8,031) was owed to this related party as at year end. During the year, sales were made to the related party of £117,994 (2024 - £231,194) and purchases made of £8,862 (2024 - £113,725).
A partnership related to one of the director-shareholders of the Company:
An amount of £nil is owed from (2024 - £3,688) this related party. During the year, sales were made to the related party of £22,995 (2024 - £5,214) and purchases made of £21,897 (2024 - £2,045).
A company with a director and shareholder in common with the Company:
An amount of £1,725 is owed from (2024 - £313,734 owed to) this related party. During the year, sales were made to the related party of £231,477 (2024 - £2,337,386) and purchases made of £221,188 (2024 - £1,628,676).
A company with a director and shareholder in common with the Company:
During the year, purchases were made from this related party of £Nil (2024 - £14,000). The balance at the year end was £nil (2024 - £nil) being owed to this related party.
A partnership, where a partner is a director of the Company:
Am amount of £nil (2024 - £2,400) is owed by this related party. During the year, sales were made to this related party of £2,000 (2024 - £nil).
A partnership, where a partner is a director of the Company:
An amount of £29,396 (2024 - £33,092) is owed by this partnership. During the year, sales were made to this partnership of £37,971 (2024 - £91,061) and purchases of £1,310 (2024 - £47,018).
Director's pension fund
The Company was charged rent of £120,000 (2024 - £101,075) during the year. The company made payments to the pension fund of £120,000 (2024 - £121,290). At the balance sheet date, the amount due to the pension fund was £nil (2024 - £nil).

Compass Tractors Limited

Notes to the Financial Statements

Year Ended 31 December 2025

25 | Parent and ultimate parent undertaking

The parent of the smallest and largest group in which these financial statements are consolidated is Compass Agri (Holdings) Limited.
The company's immediate parent is Compass Agri (Holdings) Limited, incorporated in England & Wales. These financial statements are available upon request from Blackbrook Gate 1, Blackbrook Business Park, Taunton, TA1 2PX