REGISTERED NUMBER: SC292083 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 November 2025

for

Treetop Forestry Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

16

DIRECTORS:

Mr S B Booth

Mr F L Booth

Mr G W Booth

SECRETARY:

Mr S B Booth

REGISTERED OFFICE:

Balmakewan

Balmakewan Woodland

Laurencekirk

Aberdeenshire

AB30 1QX

REGISTERED NUMBER:

SC292083 (Scotland)

AUDITORS:

SBP

Accountants and

Registered Auditors

27 Finlayson Street

Fraserburgh

Aberdeenshire

AB43 9JQ

SOLICITORS:

Brodies LLP

Brodies House

31-33 Union Grove

Aberdeen

AB10 6SD

The directors present their strategic report for the year ended 30 November 2025.

REVIEW OF BUSINESS

The company experienced an decrease in turnover of 5.57% in the year, recording total sales of £12,257,403 (2024 - £12,980,204). The gross profit margin decreased in the year to 15.09% (2024 - 17.80%). The profit before tax for the year is £911,851 (2024 - £1,285,572).

Overall, the company has generated a profit for the period due to investments in business operations despite an increasingly challenging trading environment. The company maintained a strong balance sheet with net assets of over £10 million.

PRINCIPAL RISKS AND UNCERTAINTIES

Liquidity risk

The directors aim to mitigate liquidity risks by monitoring the cash position and ensuring there are sufficient working capital facilities in place. The company continues to have a strong relationship with the bank.

The company continues to adopt a strategy of financing asset and trading purchases of timber felling machines

on short term HP contracts which can result in a negative working capital position. The directors have considered the situation carefully and are comfortable with this strategy on the basis that machines held as working fixed assets can be easily sold should the need arise.

Business risk

The core activity of the business is the harvesting of standing commercial timber on behalf of UK based timber marketing and wood using companies. The principle risks and uncertainties affecting the company are as follows:

Foreign and UK based competition - as with any business there are risks associated with competition. Over the years the business has established a large geographical infrastructure and client portfolio and this, coupled with the knowledge and expertise of the directors, puts the company in a good position to deal with any unexpected changes in the market or environment which may arise in the future.

Health and safety risks - The risk of health and safety instances are mitigated by clear health and safety policies and an emphasis on safe working practices on each site. The company invests significantly in machine operator training, preventative maintenance and safety checks for its equipment.

Environmental risks - the risk of environment damage is mitigated through significant emphasis on environment, and health and safety policies at each site. Risk assessments are carried out at each site to ensure there is minimal impact on the environment. The company also works closely with SEPA and other environmental agencies.

Debtors - Historically there has been no exposure in terms of recoverability of debtors with payment usually being received within 30 days. The company maintains strong relationships with its key customers and disputes are infrequent.

Interest rate risks - The company has significant HP contracts thereby exposing the company to interest rate fluctuations. Interest rates are competitive and agreed in advance of contracts commencing.

Foreign currency risks - The company imports its machinery from Sweden and Canada and is therefore exposed to fluctuations in foreign exchange rates. The company has mitigated the foreign currency risk through forward contracts to fix the exchange rate applicable to significant purchases where it is considered applicable.The company is also at risk of imported timber from the EU and USA impacting the UK market when the pound is strong against the Euro or US Dollar.

DEVELOPMENT AND PERFORMANCE

During the last few years, the Coronavirus pandemic and Brexit adversely impacted operations, as did the cessation by the company of sales of machinery to the European Union. The company has maintained strong relationships with its key customers throughout the year and continues to invest in new machinery in order meet demand and increase harvesting capacity year on year. The second-hand machinery market has remained buoyant throughout the year.

KEY PERFORMANCE INDICATORS

The directors use financial key performance indicators to monitor the company's performance year on year.

The Gross Profit margin (Gross Profit / Turnover) - GP margin has decreased by 2.71% in the year to 15.09% compared to a GP margin of 17.80% in 2024.

The Net Profit margin (Net Profit / Turnover) - NP margin for the year has increased by 0.54% to 6.48% (2024 - 5.94%).

ON BEHALF OF THE BOARD:

Mr S B Booth - Director

28 August 2026

The directors present their report with the financial statements of the company for the year ended 30 November 2025.

DIVIDENDS

An interim dividend of 150 per share was paid on 28 November 2025. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 30 November 2025 will be £ 450,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 December 2024 to the date of this report.

Mr S B Booth

Mr F L Booth

Mr G W Booth

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are 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 each director 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.

AUDITORS

The auditors, SBP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr S B Booth - Director

28 August 2026

Opinion

We have audited the financial statements of Treetop Forestry Limited (the 'company') for the year ended 30 November 2025 which comprise the Income Statement, Other 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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 in the Strategic Report and the Report of the Directors, 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 Directors 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 Directors 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 Directors.

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 four, 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 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.

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. We exercised professional judgement and maintained professional scepticism throughout the audit.

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

In identifying and assessing the risk of material misstatement due to non-compliance with laws and regulations we have:

- Ensured that the engagement team had the appropriate competence, capabilities and skills to identify or recognise

non-compliance with laws and regulations;

- Identified the laws and regulations applicable to the entity through discussions with directors and management and

through our own knowledge of the sector;

- Focussed on the specific laws and regulations we consider may have a direct effect on the financial statements,

including FRS102, the Companies Act 2006 and tax compliance regulations;

- Reviewed the financial statement disclosures and tested to supporting documentation to assess compliance with

applicable laws and regulations;

- Made enquiries of management and inspected legal correspondence;

- Ensured the engagement team remained alert to instances of non-compliance throughout the audit; and

- Focussed on the specific laws and regulations we consider may have an indirect effect on the financial statements

that are central to the entity's ability to trade including those relating to employees, and health and safety.

In identifying and assessing the risk of material misstatement due to irregularities, including fraud and how it may occur, and the potential for management bias and the override of controls we have:

- Obtained an understanding of the entity's operations, including the nature of its revenue sources, to understand the

classes of transactions, account balances, expected financial disclosures and business risks that may result in risk of material misstatement;

- Vouched balances and reconciling items in key control account reconciliations to supporting documentation;

- Carried out detailed testing, on a sample basis, to verify the completeness, validity, existence, occurrence and accuracy of income including cut-off testing and ensuring income recognition is in line with stated accounting policies;

- Made enquiries of management as to where they consider there was a susceptibility to fraud, and their knowledge of any actual, suspected or alleged fraud;

- Tested journal entries to identify any unusual transactions;

- Performed analytical procedures to identify any significant or unusual transactions;

-Investigated the business rationale behind any significant or unusual transactions; and

- Evaluated the appropriateness of accounting policies and the reasonableness of accounting estimates.

We did not identify any matters relating to non-compliance with laws and regulations, or relating to 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.

Peter Manson CA CTA (Senior Statutory Auditor)

for and on behalf of SBP

Accountants and

Registered Auditors

27 Finlayson Street

Fraserburgh

Aberdeenshire

AB43 9JQ

28 August 2026

Statutory Auditors

TURNOVER

3

12,257,403

12,980,204

Cost of sales

10,408,091

10,669,604

GROSS PROFIT

1,849,312

2,310,600

Administrative expenses

754,669

792,311

1,094,643

1,518,289

Other operating income

20,466

20,367

OPERATING PROFIT

5

1,115,109

1,538,656

Interest payable and similar expenses

6

203,258

253,084

PROFIT BEFORE TAXATION

911,851

1,285,572

Tax on profit

7

117,627

514,385

PROFIT FOR THE FINANCIAL YEAR

794,224

771,187

PROFIT FOR THE YEAR

794,224

771,187

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

794,224

771,187

FIXED ASSETS

Tangible assets

9

10,143,581

11,619,084

Investment property

10

1,884,738

2,054,738

12,028,319

13,673,822

CURRENT ASSETS

Stocks

11

910,925

796,665

Debtors

12

1,693,333

1,189,553

Cash at bank

60,266

193

2,664,524

1,986,411

CREDITORS

Amounts falling due within one year

13

2,144,720

3,171,984

NET CURRENT ASSETS/(LIABILITIES)

519,804

(1,185,573

)

TOTAL ASSETS LESS CURRENT LIABILITIES

12,548,123

12,488,249

CREDITORS

Amounts falling due after more than one year

14

(427,778

)

(837,054

)

PROVISIONS FOR LIABILITIES

17

(1,980,349

)

(1,855,423

)

NET ASSETS

10,139,996

9,795,772

CAPITAL AND RESERVES

Called up share capital

18

3,000

3,000

Retained earnings

19

10,136,996

9,792,772

SHAREHOLDERS' FUNDS

10,139,996

9,795,772

The financial statements were approved by the Board of Directors and authorised for issue on 28 August 2026 and were signed on its behalf by:

Mr S B Booth - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 December 2023

3,000

9,921,585

9,924,585

Changes in equity

Dividends

-

(900,000

)

(900,000

)

Total comprehensive income

-

771,187

771,187

Balance at 30 November 2024

3,000

9,792,772

9,795,772

Changes in equity

Dividends

-

(450,000

)

(450,000

)

Total comprehensive income

-

794,224

794,224

Balance at 30 November 2025

3,000

10,136,996

10,139,996

Cash flows from operating activities

Cash generated from operations

1

795,273

3,302,382

Tax refunded/(paid)

5,426

(5,371

)

Net cash from operating activities

800,699

3,297,011

Cash flows from investing activities

Purchase of tangible fixed assets

(4,388,802

)

(6,418,583

)

Sale of tangible fixed assets

5,256,845

5,563,200

Sale of investment property

170,000

-

HP interest paid

(130,252

)

(159,133

)

Net cash from investing activities

907,791

(1,014,516

)

Cash flows from financing activities

Loan repayments in year

(200,000

)

(1,300,000

)

Repayment of/new finance leases

(511,564

)

(609,657

)

Amount introduced by directors

2,030

-

Interest paid

(73,006

)

(93,951

)

Equity dividends paid

(450,000

)

(900,000

)

Net cash from financing activities

(1,232,540

)

(2,903,608

)

Increase/(decrease) in cash and cash equivalents

475,950

(621,113

)

Cash and cash equivalents at beginning of year

2

(415,684

)

205,429

Cash and cash equivalents at end of year

2

60,266

(415,684

)

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

30.11.25

30.11.24

£

£

Profit before taxation

911,851

1,285,572

Depreciation charges

1,481,341

1,465,603

Profit on disposal of fixed assets

(873,881

)

(623,472

)

Finance costs

203,258

253,084

1,722,569

2,380,787

(Increase)/decrease in stocks

(114,260

)

47,008

(Increase)/decrease in trade and other debtors

(506,245

)

961,984

Decrease in trade and other creditors

(306,791

)

(87,397

)

Cash generated from operations

795,273

3,302,382

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

60,266

193

Bank overdrafts

-

(415,877

)

60,266

(415,684

)

Year ended 30 November 2024

30.11.24

1.12.23

£

£

Cash and cash equivalents

193

205,429

Bank overdrafts

(415,877

)

-

(415,684

)

205,429

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.12.24

Cash flow

At 30.11.25

£

£

£

Net cash

Cash at bank

193

60,073

60,266

Bank overdrafts

(415,877

)

415,877

-

(415,684

)

475,950

60,266

Debt

Finance leases

(1,710,759

)

511,564

(1,199,195

)

Debts falling due within 1 year

(200,000

)

200,000

-

(1,910,759

)

711,564

(1,199,195

)

Total

(2,326,443

)

1,187,514

(1,138,929

)

1.	STATUTORY INFORMATION

Treetop Forestry Limited is a private company, limited by shares , registered in Scotland. 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.

The company's functional and presentational currency is GBP and monetary amounts in these financial statements are rounded to the nearest £.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the

company has adequate resources to continue in operational existence for at least twelve months from the

date of signing the financial statements. Thus the directors have continued to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements

.

Depreciation policy

Property. plant and machinery is depreciated over its estimated useful economic life. The directors have considered the estimated useful life of each major asset type as detailed in the fixed asset accounting policy note.The directors also review the residual values of each category of asset on an annual basis. When determining an appropriate estimated useful life and residual value of the plant and machinery the directors consider the anticipated wear on the machines, the expected number of machine hours, and the servicing and preventative maintenance.

Valuation of standing timber

Inventories of standing timber are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, the cost of harvesting the standing timber. Where standing timber has been

partially harvested at the year end, the directors are required to use their expertise to judge how much of a site remains as standing timber stocks at the year end.

Turnover

Revenue is recognised to the extent that the company has transferred to the buyer the significant risks and rewards of ownership, it is probable that economic benefit will flow to the company and the revenue can be reliably measured. It represents amounts receivable from the sale of timber, plant held for resale and forestry harvesting services provided in the normal course of business, net of discounts and VAT. All income is recognised in the accounting period to which it relates.

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2% on cost

Plant and machinery

-

33% on cost, 25% on cost, 20% on cost and 12.5% on cost

Tangible fixed assets are included at cost less depreciation and impairment. The residual value is reassessed at the end of each accounting period.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Investment property

Investment property is shown at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The Company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 "Other Financial Instruments Issues" of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic 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 the deduction of all its liabilities. Financial liabilities classified as payable within one year are not amortised.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year or less. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the 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 as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are

discharged or cancelled.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

3.

TURNOVER

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

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

30.11.25

30.11.24

£

£

Harvesting income

10,535,403

12,040,704

Sale of equipment

1,722,000

939,500

12,257,403

12,980,204

An analysis of turnover by geographical market is given below:

30.11.25

30.11.24

£

£

United Kingdom

12,257,403

12,980,204

12,257,403

12,980,204

4.	EMPLOYEES AND DIRECTORS

30.11.25

30.11.24

£

£

Wages and salaries

2,640,490

2,973,043

Social security costs

348,652

336,174

Other pension costs

52,006

71,888

3,041,148

3,381,105

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

30.11.25

30.11.24

Directors

3

3

Other staff

40

43

43

46

30.11.25

30.11.24

£

£

Directors' remuneration

198,000

198,000

Directors' pension contributions to money purchase schemes

3,302

3,963

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

Money purchase schemes

3

3

5.	OPERATING PROFIT

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

30.11.25

30.11.24

£

£

Depreciation - owned assets

881,492

1,065,858

Depreciation - assets on hire purchase contracts

599,849

399,745

Profit on disposal of fixed assets

(873,881

)

(623,472

)

Auditors' remuneration

25,900

23,875

Foreign exchange differences

(7,419

)

841

Other operating lease rentals

-

750

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.11.25

30.11.24

£

£

Overdraft interest payable

72,488

18,065

Bank loan interest

518

75,886

Hire purchase

130,252

159,133

203,258

253,084