Registration number:
McArthur Agriculture (Holdings) Limited
for the Year Ended 31 December 2025
McArthur Agriculture (Holdings) 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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Consolidated Statement of Income and Retained Earnings |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
McArthur Agriculture (Holdings) Limited
Company Information
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Directors |
S S McArthur W J McArthur |
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Registered office |
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Solicitors |
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Bankers |
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Auditors |
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McArthur Agriculture (Holdings) Limited
Strategic Report for the Year Ended 31 December 2025
The directors present their strategic report for the year ended 31 December 2025.
Principal activity
The principal activity of the company is a holding company. The activities of the group include the design, manufacture and installation of grain handling, storage and processing equipment and related after-sales.
Fair review of the business
The company was incorporated on 26 June 2025. During the period to 31 December 2025, the company became 100% shareholder of the existing trading entity McArthur Agriculture (t/a McArthur BDC) Ltd and its dormant subsidiary B D C Systems Limited via a share-for-share exchange with the ultimate shareholders and persons with significant control unchanged. The previous trade and activity of B D C Systems Limited was transferred to McArthur Agriculture (t/a McArthur BDC) Ltd in December 2024.
This structure provided a platform for the incorporation of a further subsidiary company, a new innovation start-up, BritPulse Feed Ingredients Ltd, which has commenced trading in 2026.
The group has continued to successfully design and supply solutions by focusing on providing quality, innovative and effective solutions that are cost effective and meet the needs as agreed with customers.
The group has seen its business follow the contraction in the agricultural market this year resulting in reduction in turnover to £11.6m (2024 - £13.2m). Our view is this is in line if not a better performance than the average across the agri-food sector, where the Inheritance Tax and SFI funding streams when combined with existing industry challenges intensified the barriers to investment for many.
Despite the group taking measures on efficiency improvements, evolving our customer proposition alongside tight cost control our gross profit margin has eroded at these reduced sales levels to 21.8% (2024 - 28.3%).
The business recognises that the sector will continue to be a challenging market and will drive improved efficiency and operational capability to ensure we remain competitive and offer our customers value-based solutions that deliver for them.
Environmental risks and opportunities
The group recognises that it has a responsibility to take all reasonable measures to ensure designers consider the latest and evolving environmental requirements when designing and delivering solutions for customers. As the agriculture sector is at the forefront of the transition to a net zero future, the group recognises this as an opportunity for growth alongside the chance to play a positive role in re-imaging the agricultural supply chain.
Principal risks and uncertainties
Financial risk management
Risk management is an area where increased resources have been applied during the growth of the Group. The Directors monitor this risk through embedded business planning, project control and progress monitoring and control procedures throughout the organization.
The group undertakes an annual risk assessment that considers operational and financial risks, with additional analysis of the impact and risks resulting from the cyclical nature of the business.
Price risk
In line with industry standards, pricing of parts and equipment are confirmed with suppliers and customers at key points within the sales process with scope and reflect variations in chargeable amounts limiting the exposure to price risk on sales and purchases.
Foreign currency risk
Some imports are traded in foreign currencies, the group where necessary enters forward currency contracts to mitigate this risk.
McArthur Agriculture (Holdings) Limited
Strategic Report for the Year Ended 31 December 2025
Legal risk
The group has undertaken a number of significant projects over recent years and has appropriate insurance cover in place that recognises risks that exist in the normal operation of the business. There are no ongoing claims against the group.
Liquidity risk
The group utilises a combination of bank and lease purchase debt, along with effective working capital management to ensure sufficient funds are in place to support the current and future needs of the business.
Interest risk
The group has interest bearing liabilities and cash balances that apply interest at a variable rate based on the Bank of England base rate plus a margin.
Operational risk
The group regularly assesses the risk that impacts the business and has a strong commitment to Health and Safety proactively working with employees to ensure every process is developed with “safety ingrained”. This area is a top priority for all managers across the organization including the continual implementation of best practice and improvements.
Through a shared commitment to quality across every aspect of the business, the management team proactively improves controls, processes and regularly undertake risk assessments related to health and safety across all areas of the business.
Customer credit exposure
Standard project phased payment policies ensure this risk is limited on the significant credit levels, whilst ongoing support credit is controlled by strong and on-going customer and industry relationships.
Information security risk
Any disruption to the IT capability of the business would significantly impact on the ability to operate and fulfill customer commitments. The group has a dedicated IT support service harnessing Cloud technology to ensure data is securely stored with cyber security measures in place to restrict the impact of any attempted cyber-attacks.
Commodity price risk
With an agricultural customer base, commodity prices impact the appetite for investment within the marketplace. The impacts that drive these fluctuations are global in nature driven by weather, war, harvests and the ever-increasing demand driven by population growth. Price fluctuations are monitored through engagement with customers and the wider sector.
Government tax matters
The group recognises that its core purpose is to operate an effective business that operates on a commercial rationale. The group does not engage in any aggressive tax planning measures and operates in full compliance with all matters regarding rules, regulations disclosures or payments and ensures that it only uses suitably trained employees and external advisors as appropriate to look after its tax affairs.
McArthur Agriculture (Holdings) Limited
Strategic Report for the Year Ended 31 December 2025
Non-financial and sustainability information
Group employees
The group employed an average of 49 (2024 - 59) employees during the year.
The group has streamlined the operation in response to the market developments and focused on retaining and recruiting expertise to build operational and design capability, which along with a stable support and sales function balances our customer offering and the business control department to ensure the continued smooth operation of the business.
The group recognises the need for clear and two-way communication between all employees. This is especially important during periods of change. Employees are kept informed, consulted and proactively encouraged to express their views in areas which will impact their experience as an employee of the group.
It is the policy of the group to consider all applications for employment by less abled persons. Should existing employees encounter changes in circumstances that affect their health the group looks to implement reasonable adjustments where practicable to ensure they can continue their employment.
The development of individuals and teams is a core priority for the group, and so every member of the team is supported personally and professionally to develop them as people and broaden their opportunities for career development.
Approved and authorised by the
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McArthur Agriculture (Holdings) Limited
Directors' Report for the Year Ended 31 December 2025
The directors present their report and the for the year ended 31 December 2025.
Incorporation
The company was incorporated on
Directors of the group
The directors who held office during the year were as follows:
Dividends
Particulars of dividends for the year are detailed in note 26 to the financial statements.
Information included in the Strategic Report
Information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Report) Regulations 2008 has been included in the Strategic Report.
Financial instruments
Objectives and policies
The group uses basic financial instruments, comprising cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations.
Price risk, credit risk, liquidity risk and cash flow risk
The group's principal financial instruments comprise of bank balances and loan agreements, trade debtors and trade creditors.
The liquidity risk is managed by maintaining a balance between the need for continuity of funding and flexibility through the use of loan facilities. All business cash balances are held in such a way that achieves a competitive rate of interest.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to business customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the consolidated balance sheet are net of allowances for trade debtors.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Future developments
The directors anticipate that demand for agricultural processing equipment in the UK will continue to grow and that the group is well placed to seize opportunities for growth and deliver enhanced profitability in the future.
Disclosure of information to the auditor
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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
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McArthur Agriculture (Holdings) 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 group and the company and of the profit or loss of the group 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 UK 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
McArthur Agriculture (Holdings) Limited
Independent Auditor's Report to the Members of McArthur Agriculture (Holdings) Limited
Opinion
We have audited the financial statements of McArthur Agriculture (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2025, which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated 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 group's and the parent company's affairs as at 31 December 2025 and of the group's loss 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 group 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 group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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. |
McArthur Agriculture (Holdings) Limited
Independent Auditor's Report to the Members of McArthur Agriculture (Holdings) Limited
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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 as 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Discussions with management, including consideration of known or suspected instances of non-compliance held. |
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Challenging assumptions and judgements made within significant accounting estimates and judgements. |
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Identification of laws and regulations relevant to the operations and review of compliance with such laws. |
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Testing of journal entries and other potential areas of management override of the systems. |
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Review and agreement of the identification of employees. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
McArthur Agriculture (Holdings) Limited
Independent Auditor's Report to the Members of McArthur Agriculture (Holdings) Limited
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
Grimsby
North East Lincolnshire
DN31 1LW
McArthur Agriculture (Holdings) Limited
Consolidated Statement of Income and Retained Earnings for the Year Ended 31 December 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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Exceptional expense |
(274,496) |
(300,000) |
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Other operating income |
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Operating (loss)/profit |
( |
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Other interest receivable and similar income |
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Interest payable and similar charges |
( |
( |
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18,458 |
14,003 |
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(Loss)/profit before tax |
( |
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Taxation |
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( |
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(Loss)/profit for the financial year |
( |
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Profit/(loss) attributable to: |
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Owners of the company |
( |
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Retained earnings brought forward |
1,998,514 |
2,103,326 |
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Dividends paid |
( |
( |
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Retained earnings carried forward |
1,585,958 |
1,998,514 |
McArthur Agriculture (Holdings) Limited
(Registration number: 16544633)
Consolidated Balance Sheet as at 31 December 2025
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Note |
2025 |
2024 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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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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McArthur Agriculture (Holdings) Limited
(Registration number: 16544633)
Balance Sheet as at 31 December 2025
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Note |
2025 |
2024 |
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Fixed assets |
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Investments |
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- |
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Current assets |
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Cash at bank and in hand |
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- |
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Creditors: Amounts falling due within one year |
( |
- |
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Net current liabilities |
( |
- |
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Net assets |
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- |
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Capital and reserves |
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Called up share capital |
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- |
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Shareholders' funds |
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- |
The company made a profit after tax for the financial year of £63,397 (2024 - £-).
Approved and authorised by the
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McArthur Agriculture (Holdings) Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2025
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Note |
2025 |
2024 |
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Cash flows from operating activities |
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(Loss)/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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Loss/(profit) on disposal of tangible assets |
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( |
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Finance income |
( |
( |
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Finance costs |
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Income tax expense |
( |
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( |
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||
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Working capital adjustments |
|||
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(Increase)/decrease in stocks |
( |
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Decrease in trade debtors |
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Increase/(decrease) in trade creditors |
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( |
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Cash generated from operations |
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Income taxes (paid)/received |
( |
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Net cash flow from operating activities |
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Cash flows from investing activities |
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Interest received |
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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 bank borrowing draw downs |
( |
( |
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Repayment of other borrowing |
- |
( |
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Payments to finance lease creditors |
( |
( |
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Dividends paid |
( |
( |
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Net cash flows from financing activities |
( |
( |
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Net increase/(decrease) in cash and cash equivalents |
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( |
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Cash and cash equivalents at 1 January |
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Cash and cash equivalents at 31 December |
1,538,739 |
1,436,223 |
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McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 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:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the 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.
The financial statements have been prepared in sterling and are rounded to the nearest pound.
Summary of disclosure exemptions
The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the reduced disclosures in relation to preparing a cash flow statement, financial instruments and company key management personnel remuneration as described in section 1.12 of FRS 102.
The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2025.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the statement of income and retained earnings from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the company.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Going concern
The financial statements have been prepared on a going concern basis.
At the year-end, the company balance sheet shows net current liabilities arising due to the amounts owed to group undertakings. The directors have received confirmation of continued financial support of the group creditors such that they consider that it is appropriate to prepare the financial statements on the going concern basis.
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Key sources of estimation uncertainty
The directors make estimates and assumptions about the future. These estimates and assumptions impact recognised assets and liabilities, as well as revenue and expenses and other disclosures. Estimates are based on historical experience and on various assumptions considered reasonable under prevailing conditions. The actual outcome may diverge from these estimates if other assumptions are made, or other conditions arise. The estimates and assumptions that may have a significant effect on the amounts of assets and liabilities within each financial year include:
Useful economic lives of tangible fixed assets:
Tangible fixed assets are recognised at cost less accumulated depreciation and any impairment. Depreciation writes down the value of an asset to its assessed residual value over the estimated useful lives of assets. The carrying amount of fixed assets is tested as soon as changed conditions show that a need for impairment has arisen..
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Project revenue recognition
In the case of long term projects, where the outcome of individual projects can be estimated reliably and it is probable that the project will be profitable, revenue and costs are recognised by reference to the stage of completion of the project activity at the reporting date. The stage of completion is assessed by reference to the proportion of work done relative to the total value of work under the project. Provision is made for all known or expected losses on individual projects in the year in which such losses are first foreseen.
Government grants
Government grants which become receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the entity with no future related costs, are recognised as income in the period in which they become receivable.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income 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 group operates and generates taxable income.
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land 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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Furniture, fittings and equipment |
10%, 20% and 33% straight line |
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Motor vehicles |
10% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Merger accounting
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Goodwill |
10% straight line |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Dividends on equity securities are recognised in income when receivable.
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.
Trade debtors
Trade debtors are amounts due from customers for 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 group 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. Cost is determined using the first-in, first-out (FIFO) method.
The cost of spare parts 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.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group 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 statement of income and retained earnings 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 group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
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.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due.
|
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
|
2025 |
2024 |
|
|
Rendering of services |
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2025 |
2024 |
|
|
Government grants |
|
|
|
Miscellaneous other operating income |
|
|
|
|
|
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Operating (loss)/profit |
Arrived at after charging/(crediting)
|
2025 |
2024 |
|
|
Depreciation expense |
|
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
|
Amortisation expense |
|
|
|
Impairment and provisioning of stocks |
|
( |
|
Foreign exchange losses/(gains) |
|
( |
|
Operating lease expense - property |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Exceptional administrative expenses |
274,496 |
300,000 |
Exceptional administration expenses relate to the costs incurred to settle a claim made in relation to a completed project.
|
Other interest receivable and similar income |
|
2025 |
2024 |
|
|
Interest income on bank deposits |
|
|
|
Other finance income |
|
|
|
|
|
|
Interest payable and similar expenses |
|
2025 |
2024 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
- |
|
|
|
|
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
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 |
|
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2025 |
2024 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2025 |
2024 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
91,290 |
108,783 |
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 these financial statements |
2,500 |
- |
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2025 |
2024 |
|
|
Current taxation |
||
|
UK corporation tax |
( |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
( |
|
Tax (receipt)/expense in the income statement |
( |
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2025 |
2024 |
|
|
(Loss)/profit before tax |
( |
|
|
Corporation tax at standard rate |
( |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Tax impact of marginal relief |
( |
( |
|
Total tax (credit)/charge |
( |
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2025 |
Asset |
Liability |
|
Difference between accumulated depreciation and capital allowances |
- |
|
|
2024 |
Asset |
Liability |
|
Difference between accumulated depreciation and capital allowances |
- |
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Intangible assets |
Group
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2025 |
|
|
|
At 31 December 2025 |
|
|
|
Amortisation |
||
|
At 1 January 2025 |
|
|
|
Amortisation charge |
|
|
|
At 31 December 2025 |
|
|
|
Carrying amount |
||
|
At 31 December 2025 |
|
|
|
At 31 December 2024 |
|
|
|
Tangible assets |
Group
|
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||
|
At 1 January 2025 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
( |
( |
( |
|
Transfers to stock and work in progress |
( |
- |
( |
|
At 31 December 2025 |
|
|
|
|
Depreciation |
|||
|
At 1 January 2025 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
|
Transfers to stock and work in progress |
( |
- |
( |
|
At 31 December 2025 |
|
|
|
|
Carrying amount |
|||
|
At 31 December 2025 |
|
|
|
|
At 31 December 2024 |
|
|
|
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2025 |
2024 |
|
|
Motor vehicles |
177,971 |
154,304 |
|
Investments |
Company
|
2025 |
2024 |
|
|
Investments in subsidiaries |
|
- |
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
Additions |
|
|
Carrying amount |
|
|
At 31 December 2025 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2025 |
2024 |
|||
|
Subsidiary undertakings |
||||
|
|
Bellwin Drive, Flixborough Industrial Estate, Flixborough, Scunthorpe, DN15 8SN |
|
|
|
|
|
Grafton Road, Burbage, Marlborough, Wiltshire, SN8 3BA |
|
|
|
|
|
Bellwin Drive, Flixborough Industrial Estate, Flixborough, Scunthorpe, DN15 8SN |
|
|
|
|
Business combinations |
Group reconstruction
The names of the combining entities in the group reconstruction are McArthur Agriculture Holdings Limited and McArthur Agriculture (t/a McArthur BDC) Ltd. The combination was accounted for as a merger. The date of the combination was 2 September 2025. The adjustment made to the consolidation reserves was £- in respect of the consideration for the acquisition.
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Stocks |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Work in progress |
|
|
- |
- |
|
Spare parts |
|
|
- |
- |
|
|
|
- |
- |
|
Spare parts are stated after provisions for impairment of £nil (2024 - £17,249).
|
Debtors |
|
Group |
Company |
||||
|
Current |
Note |
2025 |
2024 |
2025 |
2024 |
|
Trade debtors |
|
|
- |
- |
|
|
Other debtors |
|
|
- |
- |
|
|
Prepayments |
|
|
- |
- |
|
|
Accrued income |
|
|
- |
- |
|
|
Income tax asset |
|
- |
- |
- |
|
|
|
|
- |
- |
||
Trade debtors are stated after provisions for impairment of £24,202 (2024 - £71,278).
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Cash on hand |
|
|
- |
- |
|
Cash at bank |
|
|
|
- |
|
|
|
|
- |
|
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Creditors |
|
Group |
Company |
||||
|
Note |
2025 |
2024 |
2025 |
2024 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Trade creditors |
|
|
- |
- |
|
|
Amounts due to related parties |
- |
- |
|
- |
|
|
Social security and other taxes |
|
|
- |
- |
|
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
|
Other payables |
|
|
- |
- |
|
|
Accruals |
|
|
- |
- |
|
|
Income tax liability |
- |
67,283 |
- |
- |
|
|
Gross amount due to customers for contract work |
|
|
- |
- |
|
|
|
|
|
- |
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
- |
- |
|
|
Provisions for liabilities |
Group
|
Deferred tax |
Total |
|
|
At 1 January 2025 |
|
|
|
Decrease in existing provisions |
( |
( |
|
At 31 December 2025 |
|
|
|
|
||
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2025 |
2024 |
|||
|
No. |
£ |
No. |
£ |
|
|
Ordinary A of £1 (2024 - £0) each |
20 |
20 |
- |
- |
|
Ordinary B of £1 (2024 - £0) each |
20 |
20 |
- |
- |
|
Ordinary C of £1 (2024 - £0) each |
30 |
30 |
- |
- |
|
Ordinary D of £1 (2024 - £0) each |
30 |
30 |
- |
- |
|
|
|
- |
- |
|
New shares allotted
During the period, McArthur Agriculture (Holdings) Limited issued 20 Ordinary A shares, 20 Ordinary B shares, 30 Ordinary C shares and 30 Ordinary D shares at par.
Rights, preferences and restrictions
|
Ordinary shares have the following rights, preferences and restrictions: |
|
Reserves |
Group
Share capital
Share capital comprises of the value of issued share capital at par.
Retained earnings
The retained earnings consists of profits made by the company attributable to the shareholders.
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Loans and borrowings |
Non-current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank borrowings |
|
|
- |
- |
|
Hire purchase contracts |
|
|
- |
- |
|
|
|
- |
- |
|
Current loans and borrowings
|
Group |
Company |
|||
|
2025 |
2024 |
2025 |
2024 |
|
|
Bank borrowings |
|
|
- |
- |
|
Hire purchase contracts |
|
|
- |
- |
|
|
|
- |
- |
|
Group
Bank borrowings
Bank borrowings are denominated in sterling with a nominal interest rate of 5% over the Bank of England base rate with the final instalment due on 1 June 2027. The carrying amount at year end is £150,000 (2024- £250,000).
Bank borrowings are secured by fixed and floating charges over group assets and cross guarantees and debentures between group undertakings.
Hire purchase contracts
Hire purchase contracts are secured against the assets to which they relate.
|
Obligations under leases and hire purchase contracts |
Group
Finance 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 |
|
|
|
|
|
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 |
|
|
|
|
|
McArthur Agriculture (Holdings) Limited
Notes to the Financial Statements for the Year Ended 31 December 2025
|
Dividends |
Total dividends paid during the year amounted to £154,192 (2024- £136,192).
|
Analysis of changes in net debt |
Group
|
At 1 January 2025 |
Cash flows |
New hire purchase contracts |
Other non-cash changes |
At 31 December 2025 |
|
|
Cash and cash equivalents |
|||||
|
Cash |
1,436,223 |
102,516 |
- |
- |
1,538,739 |
|
Borrowings |
|||||
|
Long term borrowings |
(150,000) |
- |
- |
100,000 |
(50,000) |
|
Short term borrowings |
(100,000) |
100,000 |
- |
(100,000) |
(100,000) |
|
Hire purchase contracts |
(88,164) |
50,011 |
(38,000) |
- |
(76,153) |
|
(338,164) |
150,011 |
(38,000) |
- |
(226,153) |
|
|
|
|||||
|
|
|
( |
- |
|
|
|
Related party transactions |
Group
Key management compensation
|
2025 |
2024 |
|
|
Salaries and other short term employee benefits |
|
|
|
Other transactions with directors |
The directors have provided limited guarantees in respect of the bank borrowings.
Company
The company has taken advantage of the exemption in relation to section 33 of FRS 102 'Related Party Disclosures' from disclosing transactions with other members of the group in which any subsidiary which is party to the transaction is wholly owned by the group.
|
Parent and ultimate parent undertaking |
The ultimate controlling party is
|
Non adjusting events after the financial period |
|
|