The directors present the strategic report for the year ended 31 December 2025.
The company acts as a holding company for subsidiary undertakings of Kverneland Group in the United Kingdom. Kverneland Devizes Danish Branch ceased to trade at the start of 2017 and the entity has continued with minimal trade in the UK going forward.
Current Business - Group
The 2025 financial year commenced positively, with the order book approximately £750,000 higher than at the same point in 2024. Attendance at the LAMMA exhibition in early January, which traditionally provides an indication of trading conditions for the year ahead, generated a higher level of customer interest and sales enquiries than the previous year, providing an encouraging start to the year.
Despite this positive outlook, the agricultural sector continued to face a number of economic challenges. The Government's proposed changes to inheritance tax created uncertainty for many small and medium-sized farming businesses, resulting in cautious investment decisions across parts of the market.
Market conditions varied considerably across the different farming sectors. Grassland farmers benefited from strong commodity prices, with dairy, beef and sheep producers experiencing favourable returns, supporting confidence and investment within those sectors.
Weather conditions during the early part of 2025 were generally favourable, enabling crops to establish well and leading to an earlier-than-normal start to the harvest in many regions. However, arable farming businesses continued to experience difficult trading conditions. Crop yields were generally lower than in 2024 and showed significant regional variation. Combined with cereal prices remaining below expectations, profitability across the arable sector remained under pressure throughout the period.
Overall, while the Company has benefited from a strong opening order book and encouraging customer demand, trading conditions continue to reflect the mixed performance of the wider agricultural economy, with strength in the livestock sector offset by ongoing challenges within the arable market.
The positive trading momentum continued throughout the year. First-quarter out-of-season sales exceeded the previous year's performance by approximately £3.0 million at their peak, representing a significant improvement on the comparatively weak results achieved in 2024. This was followed by a strong second quarter, with out-of-season sales returning to more typical trading levels and comfortably outperforming those achieved during the same period in the previous year.
The business continued to address the challenge of managing aged inventory, which required targeted discounting and enhanced retail finance packages to support stock clearance and maintain sales momentum. These initiatives contributed to a continued reduction in dealer inventory levels, which fell to their lowest level in four years. The lower stock levels across the dealer network provide a stronger platform for future trading and improved stock management.
Holdings
As a holding company of the subsidiary undertaking of the Kverneland Group in the United Kingdom with minimal transactions, this entity is not susceptible to significant risks and uncertainties and these are all addressed by the subsidiary entities.
Group
The management of the business and execution of the company's strategy are subject to a number of risks. The business makes the majority of its machinery and parts purchases in Euros. Fluctuations in exchange rates may affect costs and margins. Management monitors exposure and may use hedging strategies to mitigate significant currency risk.
As with all business, our performance is largely dependent upon the income and profitability of our customers, any significant deterioration in these factors would impact upon our own performance.
Future outlook
The outlook for the agricultural machinery market remains influenced by a number of external factors. The effects of the challenging weather conditions experienced in 2024, higher interest rates and changes to inheritance tax legislation continue to impact customer confidence and investment decisions. During 2025, increased fertiliser costs added further pressure on farm profitability, while ongoing geopolitical tensions in the Middle East have contributed to concerns over fuel prices and wider economic uncertainty.
Prospects within the agricultural sectors remain mixed. Confidence in the arable sector continues to be subdued, with a meaningful recovery in machinery investment dependent on either improved grain prices or a reduction in input costs to restore farm profitability. In contrast, the livestock sector remains relatively resilient. Strong sheep and beef prices continue to support investment, although milk prices have fallen significantly and may remain under pressure during 2026. Consequently, machinery sales associated with the livestock and feeding sectors are expected to continue to represent a significant proportion of Kverneland Group UK's turnover during the year.
Industry forecasts published by the Agricultural Engineers Association indicate mixed expectations across the various machinery sectors for 2026, although there are signs of improvement in selected product categories. Kverneland Group UK entered 2026 with an order book approximately £1.5 million higher than at the same stage in 2025, providing a solid foundation for the year ahead. Following the successful use of enhanced retail finance packages during 2025, these promotional offers have now been reduced as market conditions have stabilised.
Based on current trading conditions and the strength of the opening order book, the Directors expect the Company to achieve a level of turnover and profitability in 2026 broadly comparable with that achieved in 2025. While market conditions remain uncertain, the Company is well positioned to respond to changing customer demand and continue supporting its dealer network and end users.
As a wholly owned subsidiary of Kubota Corporation, the company's performance is best viewed in the context of the Kubota Group which is addressed within the group's annual report, a copy of which is available upon request, refer to note 26 for further details.
Financial and other risks and their management
The company manages all its risks in order to minimise any possible impact on the financial results of the business.
Financial risk consists of market risk, credit risk, liquidity risk and interest rate risk. As a holding company of the subsidiary undertaking of the Kverneland Group in the United Kingdom with minimal transactions, the entity is not susceptible to these risks. These are all addressed by the subsidiary entities.
Financial and other risks, and their management
The company manages all its risks in order to minimise any possible impact on the trading activities and the financial results of the business.
Financial risks consists of market risk, credit risk, liquidity risk and interest rate risk.
Market risk
The company is exposed to foreign exchange risk primarily in respect to the Euro. The company does not perform hedging and currency risk is managed by Kverneland ASA for their entire group. The net exposure against each currency is calculated based on expected future cash inflow and outflow over the next 12 months.
Credit risk
Credit risk in the company is mainly related to accounts receivable. All sales made in the company are external. Credit risk is considered to be low as the risk is largely mitigated due to the receivables being sold to a Finance House with a Floorplanning facility in place.
Liquidity risk
The company has sufficient resources available from Kverneland ASA group's cash pool as and when necessary.
Interest rate risk
The company's objectives when managing capital are to:
safeguard their ability to continue as a going concern, so that they can continue to provide returns for stakeholders; and
maintain an optimal capital structure and to reduce the cost of capital.
In order to maintain or adjust the capital structure, the company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
Going concern
The directors have at the time of approving the financial statements, a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
By order of the board
The directors present their annual report and financial statements for the year ended 31 December 2025.
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The group's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The group's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Trade creditors of the group at the year end were equivalent to 7 day's purchases, based on the average daily amount invoiced by suppliers during the year.
In preparing the group financial statements, International Accounting Standard 1 requires that directors:
properly select and apply accounting policies;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
make an assessment of the group's and parent company's ability to continue as a going concern.
In preparing these financial statements, International Accounting Standard 1 requires that directors:
properly select and apply accounting policies;
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
make an assessment of the group's and parent company's ability to continue as a going concern.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Kverneland Holding (UK) Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2025 which comprise the consolidated income statement, the consolidated statement of comprehensive income, the consolidated and company statement of financial position, the consolidated and company statement of changes in equity, the consolidated statement of cash flows and the consolidated and company notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in the preparation of the group financial statements is applicable law and UK adopted international accounting standards. The financial reporting framework that has been applied in the preparation of the parent company financial statements is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).
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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which 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.
As explained more fully in the directors' responsibilities statement, 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 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 group or parent company or to cease operations, or have no realistic alternative but to do so.
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.
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the nature of the industry and sector, control environment and business performance;
the company's own assessment of the risks that irregularities may occur either as a result of fraud or error;
the results of our enquiries of management of their own identification of and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
(i) The presentation of the Statement of Comprehensive Income, (ii) the accounting policy for revenue recognition (iii) understatement of creditors (iv) Stock valuation and (V) Valuation of defined benefit scheme. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;
enquiring of management and directors concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of board meetings and reviewing correspondence with relevant authorities where matters identified were significant;
in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Owing to 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: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Kverneland Holding (UK) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Walkers Lane, Lea Green, St Helens, WA9 4AF. The company's principal activities and nature of its operations are disclosed in the directors' report.
The group consists of Kverneland Holding (UK) Limited and all of its subsidiaries.
The financial statements are prepared in sterling, which is the functional currency of the group. Monetary amounts in these financial statements are rounded to the nearest £'000.
The group has taken advantage of the following disclosure exemptions under FRS 101:
the requirements of IFRS 7 Financial Instruments: Disclosures;
the requirement in paragraph 38 of IAS 1 ‘Presentation of Financial Statements’ to present comparative information in respect of: (i) paragraph 79(a) (iv) of IAS 1, (ii) paragraph 73(e) of IAS 16 Property Plant and Equipment;
the requirements of paragraphs 10(d), 10(f), 16, 38A to 38D, 39 to 40 ,111 and 134-136 of IAS 1 Presentation of Financial Statements;
the requirements of IAS 7 Statement of Cash Flows;
the requirements of paragraph 17 of IAS 24 Related Party Disclosures; and
the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.
The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
The consolidated group financial statements consist of the financial statements of the parent company Kverneland Holding (UK) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
The nature, timing of satisfaction of performance obligations and significant payment terms of the group's major sources of revenue are as follows:
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 recognised in the profit and loss account.
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the parent company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
At each Balance Sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as loans and receivables. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
The group recognises financial debt when the group becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Financial liabilities are derecognised when, and only when, the group’s obligations are discharged, cancelled, or they expire.
Equity instruments issued by the parent company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer payable at the discretion of the company.
The tax expense represents the sum of the tax currently payable and deferred tax.
At inception, the group assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the group recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within tangible fixed assets, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other tangible fixed assets. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the group's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the group is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the group's estimate of the amount expected to be payable under a residual value guarantee; or the group's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The group has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
Interest income
Interest income is recognised in the statement of comprehensive income using the effective interest method.
Borrowing costs
All borrowing costs are recognised in the statement of comprehensive income in the year in which they are incurred.
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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
The company has tax losses carried forward, and recognition of a deferred tax asset is assessed on the basis of possible future utilisation of these tax losses. The assessment is made by calculation of estimated future earnings.
The company performs continuous assessment of obsolescence and any change in obsolescence is charged to the Statement of Comprehensive Income.
Trade debtors are recognised initially at fair value. Any provision for bad debt is deducted by assessment at later stages. A provision for impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the trade receivable is impaired. The provision amounts to the residual between the face value and the estimated recoverable amount.
Warranty claims are provided for based on expected levels of claims in relation to machines sold prior to the Balance Sheet date, taking into account any extended warranty terms that may be offered on individual products and previous claim history.
Pension valuations are based on a number of estimates and assumptions on a number of forward looking factors. Management utilise the advice of experts in order to make judgements with regards to these assumptions.
The average monthly number of persons (including directors) employed by the group during the year was:
Their aggregate remuneration comprised:
The charge for the year can be reconciled to the loss per the income statement as follows:
In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:
Details of the company's subsidiaries at 31 December 2025 are as follows:
Details of the company's principal operating subsidiaries are included in note 10.
Stocks, which wholly comprises of agricultural machinery and parts, amounts to £4,826,407 (2024: £6,940,503) after a provision on stock during the year of £174,608 (2024: £371,761); these write downs have been charged to the cost of sales account.
As at 31 December 2025, amounts owed by group undertakings are interest bearing at EURIBOR + 36 base points and are repayable on demand.
As at 31 December 2025, provisions for trade receivables were £532 (2024: £4,496). The carrying amount of the company's trade and other receivables are denominated in GBP Sterling.
Trade debtors disclosed above are classified as loans and receivables and are therefore measured at amortised cost.
As at 31 December 2025, amounts owed by other group undertakings are repayable on demand.
No significant receivable balances are impaired at the reporting end date.
The provision represents warranties that may be claimed in relation to sales made on or before 31 December 2024. This provision is expected to give rise to cash outflows over the next 1-2 years.
The following are the major deferred tax liabilities and assets recognised by the group and movements thereon during the current and prior reporting period.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Deferred tax assets and liabilities are offset in the financial statements only where the company has a legally enforceable right to do so.
Assumed life expectations on retirement at age 65:
The amounts included in the statement of financial position arising from the group's obligations in respect of defined benefit plans are as follows:
Scheme obligations would have been affected by changes in assumptions as follows:
The redeemable shares rank in respect of voting and for dividends equally in all respects with the ordinary shares. The redeemable shares are redeemable by the small Company upon the small Company giving reasonable notice to the shareholders. At such time, the shareholders are bound to deliver the shares for cancellation and the small Company will pay the shareholders the amount paid up on the shares.