Year Ended
Registration number:
Compass Tractors Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Compass Tractors Limited
Company Information
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Directors |
Mr J P W Nichols Mr R A J Parris |
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Registered office |
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Auditors |
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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 |
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Profit before tax |
£ |
962,149 |
776,416 |
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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
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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:
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
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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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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:
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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 |
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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.
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Second Floor
Blackbrook Gate 1
Blackbrook Business Park
Somerset
TA1 2PX
Compass Tractors Limited
Profit and Loss Account
Year Ended 31 December 2025
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Note |
2025 |
2024 |
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Turnover |
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|
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Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
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Other operating income |
|
|
|
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Operating profit |
1,100,122 |
933,001 |
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Other interest receivable and similar income |
|
|
|
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Interest payable and similar expenses |
( |
( |
|
|
(137,973) |
(156,585) |
||
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Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
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Profit for the financial year |
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Compass Tractors Limited
Balance Sheet
31 December 2025
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Note |
2025 |
2024 |
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Fixed assets |
|||
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Tangible assets |
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Investment property |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
|
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
|
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Net assets |
|
|
|
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Capital and reserves |
|||
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Called up share capital |
10 |
10 |
|
|
Profit and loss account |
5,925,399 |
5,205,733 |
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Shareholders' funds |
5,925,409 |
5,205,743 |
Approved and authorised by the
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Company Registration Number: 04991388
Compass Tractors Limited
Statement of Changes in Equity
Year Ended 31 December 2025
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Share capital |
Profit and loss account |
Total |
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At 1 January 2025 |
|
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Profit for the year |
- |
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At 31 December 2025 |
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Share capital |
Profit and loss account |
Total |
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At 1 January 2024 |
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|
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Profit for the year |
- |
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Dividends |
- |
( |
( |
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At 31 December 2024 |
10 |
5,205,733 |
5,205,743 |
Compass Tractors Limited
Notes to the Financial Statements
Year Ended 31 December 2025
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General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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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 |
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Plant and machinery |
10%-25% reducing balance |
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Fixtures and fittings |
25% reducing balance |
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Motor vehicles |
25% reducing balance |
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Demo stock |
25% straight line |
Investment property
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
• 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
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
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Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
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2025 |
2024 |
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Sale of goods |
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Rendering of services |
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Commissions received |
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The analysis of the company's Turnover for the year by market is as follows:
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2025 |
2024 |
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UK |
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Europe |
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Rest of world |
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Other operating income |
The analysis of the company's other operating income for the year is as follows:
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2025 |
2024 |
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Rental from investment property |
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Operating profit |
Arrived at after charging/(crediting)
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2025 |
2024 |
|
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Depreciation expense |
|
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Operating lease expense - property |
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Profit on disposal of property, plant and equipment |
( |
( |
Compass Tractors Limited
Notes to the Financial Statements
Year Ended 31 December 2025
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Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
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2025 |
2024 |
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Wages and salaries |
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Social security costs |
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Pension costs, defined contribution scheme |
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The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
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2025 |
2024 |
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Production |
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Administration and support |
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Other departments |
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|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
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 |
2024 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
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
|
Other interest receivable and similar income |
|
2025 |
2024 |
|
|
Other finance income |
|
|
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
|
|
Compass Tractors Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
|
Tax expense in the income statement |
|
|
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
The differences are reconciled below:
|
2025 |
2024 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Tax increase from effect of capital allowances and depreciation |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax decrease from other tax effects |
- |
( |
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2025 |
Liability |
|
Fixed asset timing differences |
|
|
2024 |
Liability |
|
Fixed asset timing differences |
|
Compass Tractors Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Tangible assets |
|
Land and buildings |
Fixtures and fittings |
Motor vehicles |
Plant and machinery |
Total |
|
|
Cost or valuation |
|||||
|
At 1 January 2025 |
|
|
|
|
|
|
Additions |
- |
|
|
|
|
|
Disposals |
- |
( |
( |
( |
( |
|
At 31 December 2025 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 January 2025 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
( |
|
At 31 December 2025 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 31 December 2025 |
|
|
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
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 |
|
Investment properties |
|
2025 |
|
|
At 1 January |
|
|
At 31 December |
|
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.
|
Stocks |
|
2025 |
2024 |
|
|
Finished goods and goods for resale |
|
|
|
Debtors |
|
2025 |
2024 |
|
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments and accrued income |
|
|
|
|
|
Compass Tractors Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
|
Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to group undertakings |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
Other creditors |
|
|
|
|
Accruals and deferred income |
|
|
|
|
Corporation tax |
154,604 |
307,229 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
Compass Tractors Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
Loans and borrowings |
Current loans and borrowings
|
2025 |
2024 |
|
|
Bank borrowings |
|
|
|
Hire purchase contracts and finance lease liabilities |
|
|
|
|
|
|
Non-current loans and borrowings
|
2025 |
2024 |
|
|
Bank borrowings |
|
|
Bank borrowings
|
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
|
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 |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Deferred tax provision |
|
Deferred tax |
|
|
At 1 January 2025 |
|
|
Increase/ (Decrease) in existing provisions |
|
|
At 31 December 2025 |
|
|
|
|
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
5 |
|
5 |
|
|
|
5 |
|
5 |
|
|
|
|
|
|
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: |
|
Ordinary B Shares have the following rights, preferences and restrictions: |
|
Dividends |
Interim dividends paid
|
2025 |
2024 |
|||
|
Interim dividend of £Nil (2024 - £ |
- |
|
||
|
Interim dividend of £Nil per each |
- |
- |
||
|
- |
|
|
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 £
Contributions totalling £
Compass Tractors Limited
Notes to the Financial Statements
Year Ended 31 December 2025
|
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 |
|
( |
|
|
|
Director 2 |
||||
|
Director's loan account - 2.5% interest |
|
- |
- |
|
|
2024 |
At 1 January 2024 |
Advances to director |
Repayments by director |
At 31 December 2024 |
|
Director 1 |
||||
|
Director's loan account - 2.5% interest |
( |
( |
|
|
|
Director 2 |
||||
|
Director's loan account - 2.5% interest |
|
- |
- |
|
Compass Tractors Limited
Notes to the Financial Statements
Year Ended 31 December 2025
Summary of transactions with other related parties
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
|
Parent and ultimate parent undertaking |
The company's immediate parent is