REGISTERED NUMBER: 02226704 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2025

FOR

PARKHAM FARMS LTD

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTOR:

P A Willes

SECRETARY:

P A Willes

REGISTERED OFFICE:

St. John's House

Castle Street

Taunton

Somerset

TA1 4AY

REGISTERED NUMBER:

02226704 (England and Wales)

AUDITORS:

MITCHELLS

Chartered Accountants and Statutory Auditors

St. John's House

Castle Street

TAUNTON

Somerset

TA1 4AY

BANKERS:

Lloyds Bank plc

5, High Street

BIDEFORD

Devon

The director presents his strategic report for the year ended 30 November 2025.

REVIEW OF BUSINESS

The company has continued to achieve good results in a competitive market place. During the period under review production was increased by 14% whilst sales volume increased by 20%. Since the year-end cheese prices have fallen back again so it is not anticipated that this level of turnover will be maintained.

Year ended

30 November 2025

30 November 2024

Turnover (£)

72,071,423

55,351,010

Profit before tax (£)

2,647,737

1,511,560

At the end of the year, the net assets totalled £23,188,120 (2024 £20,965,819)

Given the straightforward nature of the business, the company's directors are of the opinion that any further analysis using key performance indicators [KPI's] is not necessary for an understanding of the development, performance or position of the business.

PRINCIPAL RISKS AND UNCERTAINTIES

The company has a good track record for quality produce. The trading performance of the company could, however, be affected if there were to be any significant problems with the quality of cheese stocks either due to production or storage issues. This is no different a position to any other manufacturer in this industry and neither of these factors have increased in likelihood. There are no other risks of sufficient importance to mention in this report. The company's directors are confident that the business will continue to adapt to changing business circumstances.

SECTION 172(1) STATEMENT

The company has a number of stakeholders, including employees; farmers; suppliers; customers; the local community; and its shareholders. The directors recognize the fundamental importance of each of these groups to the company and maintain ongoing dialogues with each on matters relevant to them.

During the period, the company's directors acted in a way that they considered, in good faith, would most likely promote the success of the company for the benefit of its members as a whole and, in doing so, have had regards to the matters set out in section 172(1)(a)-(f) of the Companies Act 2006 when making decisions. In addition, the company's directors also had regard to other factors and matters that they considered relevant to decisions made. When required, the company's directors held board meetings to make key decisions relating to the company, where such matters and factors were considered, as relevant.

ON BEHALF OF THE BOARD:

P A Willes - Secretary

26 August 2026

The director presents his report with the financial statements of the company for the year ended 30 November 2025.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of manufacturing and selling cheese and marketing surplus milk.

DIVIDENDS

No dividends will be distributed for the year ended 30 November 2025.

DIRECTORS

P A Willes has held office during the whole of the period from 1 December 2024 to the date of this report.

Other changes in directors holding office are as follows:

J O Willes - appointed 7 November 2025

Mrs S J Berry , Mrs E L Beer and J O Willes ceased to be directors after 30 November 2025 but prior to the date of this report.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The directors engage with the members of their milk field who produce the milk which is the primary cost to the company, including holding producer meetings when necessary.

The directors engage directly with their customers at all levels.

STREAMLINED ENERGY AND CARBON REPORTING

It is not practical for the company to provide information in relation to:

1

The annual quantity of emissions in tonnes of carbon dioxide resulting from activities for which the company is responsible involving -

(a) the combustion of gas; or

(b) the consumption of fuel for the purposes of transport.

2

The annual quantity of emissions in tonnes of carbon dioxide resulting from the purchase of electricity by the company for its own use

3

The figure in kWh, which is the aggregate of -

(a) the annual quantity of energy consumed for which the company is responsible involving -

(i) the combustion of gas; or

(ii) the consumption of fuel for the purposes of transport.

(b) the annual quantity of energy consumed resulting from the purchase of electricity by the company for its own use

However, the company has installed solar panels to reduce its reliance on purchased electricity and the electricity it does purchase for its own use comes from 100% renewable sources.

DISCLOSURE IN THE STRATEGIC REPORT

The Strategic Report on page 2 sets out a fair review of the business and a description of the principal risks and uncertainties facing the company.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

P A Willes - Secretary

26 August 2026

Opinion

We have audited the financial statements of Parkham Farms Ltd (the 'company') for the year ended 30 November 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30 November 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 Auditors' 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 financial statements are authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters 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 the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the 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 or the Report of the Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management and those charged with governance around actual and potential litigation and claims.

- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations.

- Reviewing minutes of meetings of those charged with governance.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with

applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments

for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of

business.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities. It is the primary responsibility of management and those charged with governance to ensure that the entity's operations are conducted in accordance with the provisions of the laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

David Mitchell FCA (Senior Statutory Auditor)

for and on behalf of MITCHELLS

Chartered Accountants and Statutory Auditors

St. John's House

Castle Street

TAUNTON

Somerset

TA1 4AY

27 August 2026

TURNOVER

3

72,071,423

55,351,010

Cost of sales

65,049,500

49,745,741

GROSS PROFIT

7,021,923

5,605,269

Distribution costs

487,584

400,891

Administrative expenses

4,781,470

4,534,376

5,269,054

4,935,267

1,752,869

670,002

Other operating income

4

571,747

573,006

OPERATING PROFIT

7

2,324,616

1,243,008

Interest receivable and similar income

8

362,202

315,201

2,686,818

1,558,209

Interest payable and similar expenses

9

39,081

46,649

PROFIT BEFORE TAXATION

2,647,737

1,511,560

Tax on profit

10

425,436

244,401

PROFIT FOR THE FINANCIAL YEAR

2,222,301

1,267,159

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

2,222,301

1,267,159

FIXED ASSETS

Tangible assets

11

1,754,464

2,180,129

CURRENT ASSETS

Stocks

12

14,084,831

14,362,325

Debtors

13

21,495,347

9,440,260

Cash at bank and in hand

462,850

2,500,669

36,043,028

26,303,254

CREDITORS

Amounts falling due within one year

14

14,252,144

7,060,002

NET CURRENT ASSETS

21,790,884

19,243,252

TOTAL ASSETS LESS CURRENT LIABILITIES

23,545,348

21,423,381

PROVISIONS FOR LIABILITIES

17

357,228

457,562

NET ASSETS

23,188,120

20,965,819

CAPITAL AND RESERVES

Called up share capital

18

100,001

100,001

Share premium

19

4

4

Fair value reserve

19

22,610

22,610

Retained earnings

19

23,065,505

20,843,204

SHAREHOLDERS' FUNDS

23,188,120

20,965,819

The financial statements were approved by the director and authorised for issue on 26 August 2026 and were signed by:

P A Willes - Director

Called up

Fair

share

Retained

Share

value

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 December 2023

100,001

19,576,045

4

22,610

19,698,660

Changes in equity

Total comprehensive income

-

1,267,159

-

-

1,267,159

Balance at 30 November 2024

100,001

20,843,204

4

22,610

20,965,819

Changes in equity

Total comprehensive income

-

2,222,301

-

-

2,222,301

Balance at 30 November 2025

100,001

23,065,505

4

22,610

23,188,120

Cash flows from operating activities

Cash generated from operations

1

7,672,753

2,769,427

Interest paid

(56,300

)

(49,333

)

Tax paid

(181,857

)

97,533

Net cash from operating activities

7,434,596

2,817,627

Cash flows from investing activities

Purchase of tangible fixed assets

(127,776

)

(221,621

)

Loans made in year

(16,131,997

)

(4,442,448

)

Loan repayments in year

6,642,448

-

Interest received

226,654

354,018

Net cash from investing activities

(9,390,671

)

(4,310,051

)

Cash flows from financing activities

New loans in year

1,500,000

-

Loan repayments in year

(1,548,305

)

(1,705,923

)

Net cash from financing activities

(48,305

)

(1,705,923

)

Decrease in cash and cash equivalents

(2,004,380

)

(3,198,347

)

Cash and cash equivalents at beginning of year

2

2,467,230

5,665,577

Cash and cash equivalents at end of year

2

462,850

2,467,230

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.11.25

30.11.24

£

£

Profit before taxation

2,647,737

1,511,560

Depreciation charges

722,994

925,885

Finance costs

39,081

46,649

Finance income

(362,202

)

(315,201

)

3,047,610

2,168,893

Decrease in stocks

277,494

1,144,901

Increase in trade and other debtors

(2,429,990

)

(1,707,289

)

Increase in trade and other creditors

6,777,639

1,162,922

Cash generated from operations

7,672,753

2,769,427

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 November 2025

30.11.25

1.12.24

£

£

Cash and cash equivalents

462,850

2,500,669

Bank overdrafts

-

(33,439

)

462,850

2,467,230

Year ended 30 November 2024

30.11.24

1.12.23

£

£

Cash and cash equivalents

2,500,669

5,720,054

Bank overdrafts

(33,439

)

(54,477

)

2,467,230

5,665,577

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.12.24

Cash flow

At 30.11.25

£

£

£

Net cash

Cash at bank and in hand

2,500,669

(2,037,819

)

462,850

Bank overdrafts

(33,439

)

33,439

-

2,467,230

(2,004,380

)

462,850

Debt

Debts falling due within 1 year

(48,305

)

48,305

-

(48,305

)

48,305

-

Total

2,418,925

(1,956,075

)

462,850

1.	STATUTORY INFORMATION

Parkham Farms Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Tangible fixed assets are initially recorded at cost.

Depreciation is calculated in order to write down the cost of fixed assets over their expected useful lives.

The rates applied to the fixed assets are as follows:

Property Improvements

5% Straight Line

Plant and Machinery owned and acquired on hire purchase

33% Reducing Balance

Leased Equipment

10% Straight Line

No depreciation is charged on the freehold property.

Stocks

Stocks on hand are stated at the lower of cost and net realisable value.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Government grants

The government grants historically related to expenditure on fixed assets but for the current year relate to Covid business rates relief and cost of living support payments. The company's policy is to treat capital grants as deferred income and they are then credited to the profit and loss account over the expected useful life of the asset. The basis of calculating the amounts to be credited to the profit and loss account is consistent with the depreciation policy applied to the asset. Revenue grants are treated as income and are credited to the profit and loss account as they are received.

3.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

30.11.25

30.11.24

£

£

Sale of goods

72,071,423

55,351,010

72,071,423

55,351,010

4.	OTHER OPERATING INCOME

30.11.25

30.11.24

£

£

Rents Received

475,320

474,385

Contracting and Work Done

95,906

95,512

Wayleaves

521

496

Exchange gains

-

2,613

571,747

573,006

5.	EMPLOYEES AND DIRECTORS

30.11.25

30.11.24

£

£

Wages and salaries

940,153

897,740

Social security costs

337,780

284,696

Other pension costs

110,913

122,349

1,388,846

1,304,785

The average number of employees during the year was as follows:

30.11.25

30.11.24

Directors

3

3

Production, storage and handling

31

27

Milk collection lorry drivers

5

6

Administration

3

3

42

39

6.	DIRECTORS' EMOLUMENTS

30.11.25

30.11.24

£

£

Directors' remuneration

17,138

28,874

Directors' pension contributions to money purchase schemes

86,018

102,434

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

7.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.11.25

30.11.24

£

£

Hire of plant and machinery on

operating leases

1,240

1,240

Depreciation - owned assets

722,994

925,885

Auditors' remuneration

26,415

26,215

Foreign exchange differences

5,609

(2,613

)

Hire of plant and machinery

67,915

47,029

Accountancy and tax services provided by Auditors Firm

20,289

20,612

8.

INTEREST RECEIVABLE AND SIMILAR INCOME

30.11.25

30.11.24

£

£

Interest received gross

362,202

315,201

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.11.25

30.11.24

£

£

Bank interest

16,688

7,037

Loan Interest

22,393

39,612

39,081

46,649