Registration number: 00447327 (England & Wales)

Cotteswold Dairy Limited

Contents

Cotteswold Dairy Limited

Company Information

Cotteswold Dairy Limited

Strategic Report for the Period from 29 December 2024 to 27 December 2025

The directors present their strategic report for the period from 29 December 2024 to 27 December 2025.

Principal activity

The principal activity of the company is the processing and distribution of fresh liquid milk and cream to Wholesale, Retail, Doorstep and Foodservice customers.

Fair review of the business and future developments

The current period has seen revenue grow by 10.8% to £102,295,677 for the period (28 December 2024 - £92,340,033). The increase in revenue was partly driven by a 6.2% increase in volumes, together with increased milk and cream prices across the market during the period. The gross margin has decreased in the period to 28% (28 December 2024 - 30%).

As a business we remain quick to react and respond to changes in demand as sectors and consumer demands evolve redirecting resources and expanding our offerings to meet consumer needs as required.

Following the directors continued detailed review of the operations of the company, the company continues to achieve an improved balance to its milk supply and demand, further reducing production wastage and controlling overhead costs as far as possible, maintaining its position to focus on its core profitable and sustainable markets.

The directors are pleased to report a profit before tax of £1,675,146 for the period (28 December 2024 - £2,648,309).

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

Future developments

The directors continue to review and reposition the business during 2026/27 to ensure operating efficiencies are enhanced and profits sustained as far as possible.

The longer-term strategy is for sustainable growth. The directors will seek opportunities for both organic and acquisition growth that will strengthen the company’s operations and financial position for the future.

The company continues to source the majority of its raw milk direct from local dairy farmers who have been long standing suppliers. The relationships with these producers continue to be very important to the company. Milk prices have seen some significant fluctuations due to ongoing global and local pressures, which management closely monitor.

The directors would like to thank our senior management team and all our staff for their hard work and commitment during the period.

Section 172 (1) statement
The directors of the company must act in accordance with the duties detailed in s172 of the Companies Act 2006 which is summarised as follows:

A director of the company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the members as a whole, and in doing so have regard (amongst other matters) to the following matters:
 

a) The likely consequences of any decision in the long term;

The directors, both individually and together, have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its stakeholders, employees, suppliers, customers and the wider community, in particular by reference to the approval of the business plan. The business plan was designed to have a medium term beneficial impact on the company and contribute to the success in delivering improved quality and services, operating within tight budgetary controls and in line with the company’s longer term strategy for growth, both organically and through acquisition.

Cotteswold Dairy Limited

Strategic Report for the Period from 29 December 2024 to 27 December 2025

b) The interest of the company’s employees;

We value our employees and continue to seek to recruit, retain and develop our talent. Ensuring we recognise the positive contribution of a diverse workforce, and hold ourselves to account for delivering it, is paramount. We have invested in substantial training for staff together with conducting an employee survey to obtain and act on the views of our staff. Our key employment policies have been reviewed to ensure they remain fit for purpose and continue to enhance processes to ensure we recruit and retain the highest quality people with the right fit for our organisation.

c) The need to foster the company’s business relationships with suppliers, customers and others;

We aim to act responsibly and fairly in how we engage with our suppliers, customers, and all business partners, all of which are integral to the success of our business. We source and supply locally, and work closely with Farmers to help drive change in our organisation through innovation, promoting new ideas and ways of working, to help ensure that they reflect the same values and behaviours that we expect from our own people.

We are focused on our customers and actively seek and act on their feedback, ensuring we meet their needs and improve our products and services.

d) The impact of the company’s operations on the community and the environment;

We seek to build strong relationships with key stakeholders in the areas we operate, such as local authorities, environmental and community groups. We support and work closely with many local and national charities and schools.

e) The desirability of the company maintaining a reputation for high standards of business conduct; and

Our plan takes into account the impact of the company’s operations on the community and environment and our wider social responsibilities. Our installed DAF Plant (dissolved air filtration plant), a water process plant, reduces waste and maximises water usage in our operation. The board has a low risk appetite for reputational risk and the reputation impact of decisions made by the directors is always considered.

f) The need to act fairly as between members of the company

We believe it is vital that we are trusted by our stakeholders and therefore we seek to maintain high standards in all that we do as a business. As a board of directors, our intention is to behave responsibly toward all our stakeholders and treat them fairly and equally, so they too may benefit from the success of our business.

The board comprises six directors in total, four of whom are shareholders, with two holding 98% of the shares. Shareholders meet at least once a year where feedback is given and key decisions discussed, thus ensuring shareholders are represented on the board of Workman Properties Limited. In this way we ensure shareholders and their views are fairly represented in key decisions.

Principal risks and uncertainties

The execution of the company’s strategy is subject to a number of risks. The process of identifying and managing risk is overseen by the directors and management.

The key business risks and uncertainties affecting the company are summarised as; milk input cost volatility, milk supply continuity and regulatory and legal compliance. These risks are mitigated by continuous review of milk prices and driving efficiency in internal processes, diversifying the supply of milk where possible and ensuring laws and regulations are monitored by suitably qualified staff.

Approved by the Board on 21 August 2026 and signed on its behalf by:

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G W Workman
Director

Cotteswold Dairy Limited

Directors' Report for the Period from 29 December 2024 to 27 December 2025

The directors present their report and the financial statements for the period from 29 December 2024 to 27 December 2025.

Directors of the company

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

R H Workman

G W Workman

G M Workman

J M Young

L E Woodward

W King (resigned 16 July 2026)

Matters covered in the Strategic Report
Information on the engagement with suppliers, employees, customers and others is included in the Strategic Report in the Section 172 (1) statement. The company's business environment and risks, together with details of monitoring undertaken by the directors and future developments are dealt with elsewhere in the Strategic Report.

Dividend
During the period the company paid a dividend of £750,000 (28 December 2024 - £750,000) to its parent, Workman Properties Limited.

Financial instruments

Objectives and policies

The company’s financial instruments, other than derivatives, comprise cash and liquid resources, and various other items such as trade debtors, trade creditors, etc that arise directly from its operations. The main purpose of these financial instruments is to finance the operations of the company. The company is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through credit control procedures and staged payments.

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

Price risk is the risk that changes in market prices will result in a financial loss to the company. Price risk is managed through regular monitoring of market prices and supplier costs, together with periodic reviews of customer pricing.

Credit risk is the risk that a customer, financial institution or other counterparty to a financial instrument will fail to meet its contractual obligations, resulting in a financial loss to the company. Credit risk is managed by carrying out credit checks on new customers and closely monitoring the payment performance of customers. Procedures are in place to limit the supply of goods to customers who are not paying in accordance with the company's terms of business.

Liquidity risk is the risk that the company will encounter difficulty in meeting its financial obligations as they fall due. Liquidity risk is managed by the monitoring of the company's cash position on a daily basis. The company has facilities in place which cater for its needs.

Cash flow risk is the risk that the company's cash inflows and outflows will vary to such an extent that it is unable to fund its day-to-day operations and commitments as they fall due. Cash flow risk is managed by forecasting. The nature of the company’s business is such that cash flows are predictable, and the directors are able to use this to ensure that facilities are available.

Cotteswold Dairy Limited

Directors' Report for the Period from 29 December 2024 to 27 December 2025

Data is provided as tonnes of carbon dioxide equivalent (C02e). The boundary used was that of operational control. Therefore, mandatory emissions from the dairy manufacturing site and all depots were included.

Scope 3 emissions are emissions occurring from sources not owned or controlled by the company. Management have voluntarily disclosed Scope 3 emissions relating to employee travel, as this information is available to the company. Other Scope 3 emissions have not been disclosed since these are not compulsory and management do not hold this information.

The company’s chosen intensity measure is per million of litres of milk production. The use of milk production as a metric to measure efficiency is well established in the dairy sector.

The report data has been collated internally using data submitted for Climate Change Agreement for electricity, gas and milk production volumes. The electricity and gas kWh data has been calculated using prices per kwh of energy and price per litre of fuel taken fuel management software and fuel card monitoring data. Business travel data was gained from internal expense claims. The CO2e has been calculated using the National Energy Foundation Carbon Calculator.

We do not consider refrigerant losses on our air conditioning units to be material and as such these are not reported in our emissions data.

Through the financial period the business continued its commitment to net zero by focusing on scope 1, 2 and 3 emissions. Scope 3 emissions represent the most significant element of the business carbon exposure and supplying farms have received carbon audits and workshops to drive efficiency through carbon reduction. The dairy has invested in a new cold store and welfares facilities which became operational in 2025. The building is constructed to Building Research Establishment Environmental Assessment Method (BREEAM) standards with innovative design to manage energy use, while maintaining suitable chilled storage and product safety. Solar panels, air curtains and docking solutions supported the building energy strategy.

The dairy has increased its Recycled High-Density Polyethylene (rHDPE) content in poly bottle packaging and transitioned to clear caps for its main product line to aid recyclability. Energy Savings Opportunity Scheme (ESOS) action plan was submitted to the Environment Agency (EA) which has become the framework in which our internal energy efficiency plan is structured, measured and reported. The dairy remains focused on managing its food waste, publicised annually through Waste and Resources Action Programme (WRAP), and the fleet logistics concentrated on route optimisation and driver performance through coaching and mentoring by increased internal safe and fuel-efficient driving (SAFED) driver instructors.

Employment of disabled persons

Going concern

Forecasts have been prepared that reflect the current economic circumstances and the committed cash outflows for ongoing capital projects. The company also has access to cash reserves of £1.9 million. Based on the forecasts prepared, funds available and existing facilities in place, sufficient resources are available for the company to conduct business for at least 12 months post signing of the financial statements. As such, the directors believe that it is appropriate for the financial statements to be prepared on the going concern basis.

Cotteswold Dairy Limited

Directors' Report for the Period from 29 December 2024 to 27 December 2025

Disclosure of information to the auditors

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 21 August 2026 and signed on its behalf by:

.....................................
G W Workman
Director

Cotteswold Dairy Limited

Statement of Directors' Responsibilities

Cotteswold Dairy Limited

Independent Auditor's Report to the Members of Cotteswold Dairy Limited

Opinion

We have audited the financial statements of Cotteswold Dairy Limited (the 'company') for the period from 29 December 2024 to 27 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:

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 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 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.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

Cotteswold Dairy Limited

Independent Auditor's Report to the Members of Cotteswold Dairy Limited

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 7, 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’s 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.

Extent to which the audit was capable of detecting irregularities, including fraud

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:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

Cotteswold Dairy Limited

Independent Auditor's Report to the Members of Cotteswold Dairy Limited

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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 concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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 this 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.

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Rebecca Copping (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Staverton Court
Staverton
Cheltenham
GL51 0UX

21 August 2026

Cotteswold Dairy Limited

Profit and Loss Account for the Period from 29 December 2024 to 27 December 2025

The above results were derived from continuing operations.

The company has no other comprehensive income for the period.

Cotteswold Dairy Limited

(Registration number: 00447327 (England & Wales))
Balance Sheet as at 27 December 2025

Approved and authorised by the Board on 21 August 2026 and signed on its behalf by:
 

..................................
G W Workman

Director

Cotteswold Dairy Limited

Statement of Changes in Equity for the Period from 29 December 2024 to 27 December 2025