Company Registration number:
Redlynch Agricultural Engineering Limited
for the Year Ended 30 November 2025
Redlynch Agricultural Engineering 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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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Redlynch Agricultural Engineering Limited
Company Information
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Directors |
N J Heal M M Peters R Flynn L J Heal |
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Company secretary |
L J Heal |
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Registered office |
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Auditors |
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Redlynch Agricultural Engineering Limited
Strategic Report for the Year Ended 30 November 2025
The directors present their strategic report for the year ended 30 November 2025.
Principal activity
The principal activity of the company is the wholesale of agricultural machinery, accessories and implements, including tractors.
Redlynch Agricultural Engineering Limited has three sites based in Redlynch, Bruton, Milborne St Andrew, Dorset and Stoford, Wiltshire. All three sell and service new and use agricultural machinery and parts covering Somerset, Dorset, Wiltshire, Hampshire and the New Forest.
Fair review of the business
The directors are pleased with the performance overall of the business as a whole in the 12 months to November 2025. The year saw a small increase (6.06%) in turnover across the board. The industry continues to be fiercely competitive alongside customers being cautious and price sensitive, as a result this has an impact on machinery gross margin but as fewer customers are changing their agricultural machinery there has continued to be increased demand for servicing and associated parts which in turn has increased aftersales revenues in the year.
‘2025’
The directors consider turnover, gross profitability and market share to be key performance indicators and these are monitored throughout the year by the management team. The directors are pleased to report an increase in turnover of 6.06% (2024 17.5% decrease). There was a decrease in gross profitability from 10.33% to 8.07% and a small reduction in our key brand market share to 11.1% (2024 12.7%).
During the year the company focused on continuing to support its main business functions, investing further in staff and premises.
The company continued to monitor cashflow and working capital closely during the year and the company has reduced its overall debtors, leading to an increase in cash. In previous years the company had invested heavily in stock when it was possible, to overcome supply issues but now these are resolved, stock levels remain broadly consistent.
The company’s principal financial instruments are bank accounts, bank loans, trade debtors and trade creditors and these are actively monitored on a daily basis to aid the working capital of the company and manage liquidity risk. The company is in a strong financial position which can be seen on page 13 and it is operating well within its agreed bank facility, so solvency is not considered an issue.
Redlynch Agricultural Engineering Limited
Strategic Report for the Year Ended 30 November 2025
Principal risks and uncertainties
The agricultural machinery sector is closely tied to the cyclical and increasingly volatile dynamics of the global farming economy. Demand for tractors and related equipment continues to be influenced by farm incomes, commodity prices, input cost inflation, and access to financing. Elevated input costs (notably fuel, fertiliser, and labour) and tighter margins in parts of the farming sector have led to more cautious capital expenditure, with many farmers extending equipment replacement cycles or prioritising maintenance over new purchases.
Weather, regulations and government policies (both from within the UK and EU) can make commodity prices fluctuate. The company is reliant upon the continued profitability and confidence in the farming industry as a whole to maintain current levels of financial performance into the future. The directors have significant experience of the agricultural industry and are very aware of the potential volatility. Not only are the directors committed to the success of the company, but also the success of their customers as they recognise the mutual benefit this brings.
The company believes that the risk of only having a few key suppliers for goods is mitigated by the strength within those complimentary brands. Agco, and specifically Fendt, are global brands with an excellent reputation, broad product offerings and quality manufacturing. On the contrary, our strong franchise brands and excellent relationships with those suppliers are seen as a key strength of the company by the directors.
Future developments
The company wishes to continue the updating of premises at the Head Office in Bruton, which was partially completed in 2024, alongside the conclusion of improvements and expansions to the other two depots at Blandford and Stoford.
The directors are committed to investing in staff and facilities to enable the company to build upon the solid results achieved in 2025 and to enable continued growth into the future.
Approved by the Board on
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Redlynch Agricultural Engineering Limited
Directors' Report for the Year Ended 30 November 2025
The directors present their report and the financial statements for the year ended 30 November 2025.
Directors of the company
The directors who held office during the year were as follows:
Information included in the Strategic Report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.
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.
Reappointment of auditors
The auditors Albert Goodman LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Redlynch Agricultural Engineering Limited
Directors' Report for the Year Ended 30 November 2025
Future Developments
The future developments of the business are included within the strategic report.
Financial instruments
Objectives and policies
The company finances its operations through a mixture of capital, retained profit and other borrowings. In managing the financial risks faced by the company, the directors aim to retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due whilst maximising returns on surplus funds.
Price risk, credit risk, liquidity risk and cash flow risk
The company's principal financial instruments comprise of bank balances, bank overdrafts, trade creditors, trade debtors and hire purchase and these are used to manage the company's working capital requirements. Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances, the directors aim to retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due. Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Approved by the Board on
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Redlynch Agricultural Engineering 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.
Redlynch Agricultural Engineering Limited
Independent Auditor's Report to the Members of Redlynch Agricultural Engineering Limited
Opinion
We have audited the financial statements of Redlynch Agricultural Engineering Limited (the 'company') for the year ended 30 November 2025, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 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 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.
Redlynch Agricultural Engineering Limited
Independent Auditor's Report to the Members of Redlynch Agricultural Engineering Limited
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.
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. |
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.
Matters on which we are required to report by exception
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.
Redlynch Agricultural Engineering Limited
Independent Auditor's Report to the Members of Redlynch Agricultural Engineering Limited
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:
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
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the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
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we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the agricultural machinery wholesale sector; |
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we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment, and health and safety legislation; |
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we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
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identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
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making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
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considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we:
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performed analytical procedures to identify any unusual or unexpected relationships; |
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tested journal entries to identify unusual transactions; |
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assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
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investigated the rationale behind significant or unusual transactions. |
Redlynch Agricultural Engineering Limited
Independent Auditor's Report to the Members of Redlynch Agricultural Engineering Limited
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
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agreeing financial statement disclosures to underlying supporting documentation; |
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reading the minutes of meetings of those charged with governance; |
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enquiring of management as to actual and potential litigation and claims. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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 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.
For and on behalf of
Goodwood House
Blackbrook Park Avenue
Somerset
TA1 2PX
Redlynch Agricultural Engineering Limited
Profit and Loss Account
for the Year Ended 30 November 2025
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Note |
2025 |
2024 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
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Interest payable and similar charges |
( |
( |
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Profit before tax |
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Taxation |
( |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
Redlynch Agricultural Engineering Limited
Statement of Comprehensive Income
for the Year Ended 30 November 2025
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2025 |
2024 |
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Profit for the year |
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Total comprehensive income for the year |
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Redlynch Agricultural Engineering Limited
(Registration number: 03316370)
Balance Sheet as at 30 November 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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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 |
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Share premium reserve |
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Retained earnings |
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Shareholders' funds |
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Approved and authorised by the
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Redlynch Agricultural Engineering Limited
Statement of Changes in Equity
for the Year Ended 30 November 2025
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Share capital |
Share premium |
Retained earnings |
Total |
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At 1 December 2024 |
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Profit for the year |
- |
- |
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Dividends |
- |
- |
( |
( |
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Share based payment transactions |
- |
- |
2,853 |
2,853 |
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At 30 November 2025 |
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Share capital |
Share premium |
Retained earnings |
Total |
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At 1 December 2023 |
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Profit for the year |
- |
- |
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Dividends |
- |
- |
( |
( |
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New share capital subscribed |
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- |
- |
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Share based payment transactions |
- |
- |
2,853 |
2,853 |
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At 30 November 2024 |
90,000 |
8,505 |
12,538,186 |
12,636,691 |
Redlynch Agricultural Engineering Limited
Statement of Cash Flows
for the Year Ended 30 November 2025
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Note |
2025 |
2024 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Profit on disposal of tangible assets |
( |
( |
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Finance costs |
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Share based payment transactions |
2,853 |
2,853 |
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Income tax expense |
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Working capital adjustments |
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Decrease in stocks |
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Decrease/(increase) in trade and other debtors |
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( |
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(Decrease)/increase in trade and other creditors |
( |
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Cash generated from operations |
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Income taxes paid |
( |
( |
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Net cash flow from operating activities |
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Cash flows from investing activities |
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Acquisitions of tangible assets |
( |
( |
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Proceeds from sale of tangible assets |
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
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Interest paid |
( |
- |
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Proceeds from issue of ordinary shares, net of issue costs |
- |
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Payments to finance lease creditors |
( |
( |
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Interest on preference shares |
(42,000) |
(42,000) |
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Dividends paid |
( |
( |
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Net cash flows from financing activities |
( |
( |
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Net increase in cash and cash equivalents |
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Cash and cash equivalents at 1 December 2024 |
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Cash and cash equivalents at 30 November 2025 |
5,235,176 |
2,428,420 |
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Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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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 United Kingdom and Republic of Ireland and the Companies Act 2006'.
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.
These financial statements are presented in Sterling (£).
Turnover recognition
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business , and is shown net of VAT and other sales related taxes . The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods) , the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Recognised within turnover are commissions received. These commissions are accrued according to the number of units consigned and invoiced during the year and also depend on whether the relevant Dealer Plan has been achieved.
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current tax. Tax is recognised in the profit and loss account, 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 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.
Tangible assets
Tangible assets are stated at cost, less accumulated depreciation and 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 and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Land and buildings Freehold |
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Long leasehold land and buildings |
10% straight line |
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Plant and machinery |
20-25% reducing balance |
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Office equipment |
15-33% straight line |
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Motor vehicles |
25% reducing balance |
Investment property
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.
Reserves
Called up share capital represents the nominal value of shares that have been issued.
Share premium account includes any premiums received on the issue of share capital. Transaction costs associated with the issuing of shares are deducted from the share premium.
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
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.
Defined contribution pension obligation
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Share based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using an independent company valuation. The independent valuation company considered two approaches in determining the fair value of the shares which are typical methods for valuing private companies. The first method looked at post tax earnings and a market-based price-earnings ratio to estimate the value of the entirety and the second method scrutinised the company's underlying assets.
The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
Financial instruments
Classification
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Recognition and measurement
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Impairment of financial assets
Financial assets, other than those held at fair value through the profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Judgements and keys sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The 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 the revision and future periods where the revision affects both current and future periods.
Keys sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Estimated Useful Lives
In determining the estimated useful life the company considers the expected usage (capacity or physical output) of the asset, expected physical wear and tear of the asset and expected technical advancements in the industry that could lead to obsolescence of the asset. Each year the company reviews the above to establish if there is any change in expected useful life of tangible assets.
Net Realisable Value of Stock
Wholegoods
In determining the net realisable value of wholegood stock items the company considers age, length of ownership, current market trends and advancements, currency fluctuations and general industry performance. Each year the company reviews the above to establish if there is any change in the expected net realisable value of stock items. At 30 November 2025, the net realisable value of wholegood stock was £4,888,244 (2024 - £6,421,366).
Parts
In determining the net realisable value of part stock items the company considers age in conjunction with technological advancements. Due to the specification of wholegoods being updated bi-annually, the associated parts are very quickly obsolete. At 30 November 2025, the net realisable value of part stock was £977,248 (2024 - £883,603 ).
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
Estimated Claims and Commission Receivable
In determining the value of commissions receivable the company has regard to sales, both in volume and in value, market share and business development. The value of commissions receivable is matched to the period in which the deal is completed. At 30 November 2025, the estimated commissions receivable were £210,078 (2024 - £300,461).
Valuation of investment property
Investment property is included in the financial statements at fair value, based on the market value for the properties at the balance sheet date. An independent valuer was not used during the year, however the directors have sufficient knowledge and experience to apply judgement in determining a valuation. At 30 November 2025 the value of the investment properties was £375,501 (2024 - £375,501).
|
Turnover |
The analysis of the company's turnover for the year by class of business is as follows:
|
2025 |
2024 |
|
|
Sales from principal activities |
|
|
|
Commissions |
|
|
|
|
|
The analysis of the company's turnover for the year by market is as follows:
|
2025 |
2024 |
|
|
UK |
|
|
|
Rest of world |
|
|
|
|
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2025 |
2024 |
|
|
Miscellaneous other operating income |
|
|
|
Management charges receivable |
191,016 |
176,241 |
|
|
|
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
|
Operating profit |
Arrived at after charging/(crediting):
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Foreign exchange (gains)/losses |
( |
|
|
Operating lease expense - plant and machinery |
|
|
|
Profit on disposal of property, plant and equipment |
( |
( |
|
Share based payment transactions (gross) |
(2,853) |
(2,853) |
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
- |
|
Interest on preference shares |
|
|
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2025 |
2024 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
Share-based payment expenses |
|
|
|
Other employee expense |
|
|
|
|
|
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
Sales |
|
|
|
Distribution |
|
|
|
Other departments |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
195,682 |
258,823 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2025 |
2024 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditors' remuneration |
|
2025 |
2024 |
|
|
Audit of the financial statements |
|
|
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as 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/(decrease) from effect of capital allowances and depreciation |
|
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Further item of tax decrease |
( |
( |
|
Total tax charge |
|
|
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
|
Tangible assets |
|
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Plant and machinery |
Total |
|
|
Cost or valuation |
|||||
|
At 1 December 2024 |
|
|
|
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
- |
( |
( |
( |
( |
|
At 30 November 2025 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 December 2024 |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
( |
|
At 30 November 2025 |
|
|
|
|
|
|
Carrying amount |
|||||
|
At 30 November 2025 |
|
|
|
|
|
|
At 30 November 2024 |
|
|
|
|
|
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
|
Investment properties |
|
2025 |
|
|
At 1 December 2024 and 30 November 2025 |
|
The fair value of the investment properties have been arrived at on the basis of valuations carried out on 9 June 2015 and 5 September 2016 by Symonds & Sampson LLP, Chartered Surveyors, who are not connected with the company. The valuations were made on an open market value basis by reference to market evidence of transaction prices for similar properties. The directors consider that at 30 November 2025 the fair value of the investment properties remains the same.
There has been no valuation of investment property by an independent valuer.
|
Stocks |
|
2025 |
2024 |
|
|
Work in progress |
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
|
Debtors |
|
Current |
2025 |
2024 |
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
|
Cash and cash equivalents |
|
2025 |
2024 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
|
Creditors |
|
Note |
2025 |
2024 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other creditors |
|
|
|
|
Accrued expenses |
|
|
|
|
Corporation tax |
|
|
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 December 2024 |
|
|
|
At 30 November 2025 |
|
|
|
|
||
Deferred tax
Deferred tax assets and liabilities:
|
2025 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Other short term timing differences |
|
- |
|
Revaluation of investment property |
- |
|
|
|
|
|
2024 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
Other short term timing differences |
|
- |
|
Revaluation of investment property |
- |
|
|
|
|
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
|
Loans and borrowings |
Current loans and borrowings
|
2025 |
2024 |
|
|
Hire purchase contracts |
|
|
Non-current loans and borrowings
|
2025 |
2024 |
|
|
Hire purchase contracts |
- |
|
|
Redeemable preference shares |
|
|
|
|
|
|
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
80,000 |
|
80,000 |
|
|
|
10,000 |
|
10,000 |
|
|
|
|
|
|
Rights, preferences and restrictions
|
Ordinary shares have the following rights, preferences and restrictions: |
|
Ordinary A shares have the following rights, preferences and restrictions: |
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 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 |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Share-based payments |
Scheme details and movements
The movements in the number of share options during the year were as follows:
|
2025 |
2024 |
|
|
Outstanding, start of period |
|
|
|
Forfeited during the period |
- |
( |
|
Exercised during the period |
- |
( |
|
Outstanding, end of period |
|
|
|
|
||
|
Dividends |
|
2025 |
2024 |
|||
|
Interim dividend paid during the year |
282,110 |
267,993 |
||
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
|
Analysis of changes in net debt |
|
At 1 December 2024 |
Financing cash flows |
At 30 November 2025 |
|
|
Cash and cash equivalents |
|||
|
Cash |
2,428,420 |
2,806,756 |
5,235,176 |
|
Preference shares |
(600,000) |
- |
(600,000) |
|
1,828,420 |
2,806,756 |
4,635,176 |
|
|
|
|
|
|
|
|
|||
|
Pension and other schemes |
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 £
|
Related party transactions |
Key management compensation
|
2025 |
2024 |
|
|
Salaries and other short term employee benefits |
|
|
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
|
Transactions with directors |
|
2025 |
At 1 December 2024 |
Advances to director |
Repayments by director |
At 30 November 2025 |
|
N J Heal |
||||
|
Loan repayable on demand which attracts interest at 2.5% |
- |
|
( |
|
|
L J Heal |
||||
|
Loan repayable on demand which attracts interest at 2.5% |
|
|
( |
|
|
R Flynn |
||||
|
Loan repayable on demand which attracts interest at 2.5% |
|
|
- |
|
|
2024 |
At 1 December 2023 |
Advances to director |
Repayments by director |
At 30 November 2024 |
|
N J Heal |
||||
|
Loan repayable on demand which attracts interest at 2.5% |
|
- |
( |
- |
|
L J Heal |
||||
|
Loan repayable on demand which attracts interest at 2.5% |
- |
|
- |
|
|
R Flynn |
||||
|
Loan repayable on demand which attracts interest at 2.5% |
- |
|
- |
|
|
Other transactions with directors |
During the year, the Company engaged in a land swap with land owned by Nick Heal's family. The plots are adjacent to each other, and the value is deemed to be equal. As such, no consideration was transferred from either party for the land.
Redlynch Agricultural Engineering Limited
Notes to the Financial Statements
for the Year Ended 30 November 2025
Income and receivables from related parties
|
2025 |
Other related parties |
|
Sale of goods |
|
|
Amounts receivable from related party |
|
|
|
|
|
2024 |
Other related parties |
|
Sale of goods |
|
|
Amounts receivable from related party |
|
|
|
|
Expenditure with and payables to related parties
|
2025 |
Other related parties |
|
Purchase of goods |
|
|
Amounts payable to related party |
|
|
|
|
|
2024 |
Other related parties |
|
Purchase of goods |
|
|
Amounts payable to related party |
|
|
|
|
|
Control |
The ultimate controlling party is