REGISTERED NUMBER: 02434505 (England and Wales)

Audited Financial Statements

for the Year Ended 31 December 2025

for

Paul Rackham Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

S A Rackham

P A Rackham Jnr

S R Stuteley

Mrs J Williams

SECRETARY:

S R Stuteley

REGISTERED OFFICE:

Manor Farm

122 The Street

Bridgham

Norwich

Norfolk

NR16 2RX

REGISTERED NUMBER:

02434505 (England and Wales)

INDEPENDENT AUDITORS:

Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

BANKERS:

Lloyds Bank Plc

33 Old Broad St

London

EC2N 3AH

FIXED ASSETS

Tangible assets

5

53,842,206

44,670,610

Investments

6

5,303,429

5,303,429

Investment property

7

9,435,000

6,727,551

68,580,635

56,701,590

CURRENT ASSETS

Stocks

42,032

410,879

Debtors

8

3,044,638

2,703,337

Investments

9

1,461

53,790

Cash at bank

5,675,704

1,821,036

8,763,835

4,989,042

CREDITORS

Amounts falling due within one year

10

20,749,917

20,769,467

NET CURRENT LIABILITIES

(11,986,082

)

(15,780,425

)

TOTAL ASSETS LESS CURRENT LIABILITIES

56,594,553

40,921,165

PROVISIONS FOR LIABILITIES

13

4,572,074

2,174,646

NET ASSETS

52,022,479

38,746,519

CAPITAL AND RESERVES

Called up share capital

14

113,776

113,776

Share premium

2,338,021

2,338,021

Fair value reserve

15

22,792,280

10,898,078

Retained earnings

26,778,402

25,396,644

SHAREHOLDERS' FUNDS

52,022,479

38,746,519

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 8 July 2026 and were signed on its behalf by:

S R Stuteley - Director

1.	STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from those standards. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.

Going concern

The company is in a net current liabilities position, due to the classification of a loan due to a subsidiary. This loan has no fixed repayment terms, and as such, is repayable upon demand. However, the directors have indicated that no demands for repayment will be made until such time that the company has sufficient funds to meet the liability.

Overall, the company has a strong net assets position, with good trading results. The directors are therefore of the opinion that the going concern basis remains appropriate.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

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

Revenue is recognised as follows:

i)

Rental and similar income is accrued on a time basis in the period to which it relates by reference to underlying contracts.

ii)

Income from the sale of land and buildings is recognised at the date of unconditional exchange of contract.

iii)

Livestock and produce revenue is recognised at the point legal title to stock passes to the customer, normally at collection or delivery.

iv)

Interest income is accrued on a time basis by reference to the underlying capital sum and applicable interest rate.

v)

Dividend income from investments is recognised at the date of receipt.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life.

Freehold property

-

not provided

Plant and machinery

-

5 years straight line

Fixtures and fittings

-

5 years straight line

Motor vehicles

-

4 years straight line

The measurement basis for freehold land and buildings is at fair value, on a revaluation basis.

Plant, machinery and all other tangible fixed assets are held at historic cost, less accumulated depreciation.The directors estimate residual values on an asset by asset basis and apply depreciation accordingly.

Freehold land and buildings is held at current fair value. During the year a full review has been made of non-investment freehold property and the directors considered the values for all properties and have considered the valuation for each individual asset and that the revaluation method is the most appropriate recognition method going forward. Therefore these are recognised at current fair value and the directors have valued these land and buildings for this purpose.

The directors consider freehold land and buildings on a group basis for impairment, and should the recoverable amount be below valuation or cost an impairment review is carried out and recognised as required.The position is reviewed annually.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Investment property

Investment property held to earn rental income and/or capital appreciation is included in the balance sheet at fair value where such value can be measured reliably without undue cost or effort on an ongoing basis. Fair value adjustments are taken to the profit and loss account.The property is not depreciated which is a treatment contrary to the Companies Act 2006 however in the opinion of the Directors the policy adopted by the Company provides a true and fair view.

The majority of such properties are on the main farming estate and are thus difficult to independently value. In accordance with Section 16 of FRS 102 such properties are accounted for under the principles applying to property plant and equipment as described above.

Stocks

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Taxation

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

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

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

Pension costs and other post-retirement benefits

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

Derivative financial instruments

The company uses derivative financial instruments to reduce exposure to interest rate movements. The company does not hold or issue derivative financial instruments for speculative reasons.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in the profit and loss immediately unless the derivative is designated and effective as the hedging instrument, in which event the timing of the recognition in the profit or loss depends on the nature of the hedge relationship.

The best evidence of fair value is quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

Current asset investments

Investments comprise current asset investments which are originally recognised at cost. Where the fair value can be reliably determined, the investments are subsequently stated at fair value at each balance sheet date with change to values being recognised in the profit and loss account. Those current investments where fair values cannot be reliably determined are stated at cost.

Fair value reserve

It is the company's policy to transfer to the fair value reserve all non-distributable fair value movements recognised in the profit and loss account together with deferred taxation thereon.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2024 - 12 ) .

5.	TANGIBLE FIXED ASSETS

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

COST OR VALUATION

At 1 January 2025

44,260,921

2,541,967

46,802,888

Additions

988,446

546,761

1,535,207

Disposals

(922,181

)

(230,534

)

(1,152,715

)

Revaluations

8,966,155

-

8,966,155

At 31 December 2025

53,293,341

2,858,194

56,151,535

DEPRECIATION

At 1 January 2025

-

2,132,278

2,132,278

Charge for year

-

232,982

232,982

Eliminated on disposal

-

(55,931

)

(55,931

)

At 31 December 2025

-

2,309,329

2,309,329

NET BOOK VALUE

At 31 December 2025

53,293,341

548,865

53,842,206

At 31 December 2024

44,260,921

409,689

44,670,610

Cost or valuation at 31 December 2025 is represented by:

Plant and

Land and

machinery

buildings

etc

Totals

£

£

£

Valuation in 2019

11,975,030

-

11,975,030

Valuation in 2025

8,966,155

-

8,966,155

Cost

32,352,156

2,858,194

35,210,350

53,293,341

2,858,194

56,151,535

If freehold land and buildings had not been revalued they would have been included at the following historical cost:

2025

2024

£

£

Cost

32,285,891

32,285,891

Aggregate depreciation

2,077,534

2,077,534

Value of land in freehold land and buildings

30,275,557

30,275,557

The directors, having relevant experience and knowledge of the property market and the industry in which the company operates, have assessed the value of the freehold land and buildings. The valuation is based on fair value on an open market basis as at 31 December 2025 and was performed by the directors. This assessment has resulted in a revaluation increase of £8,966,155 for the year ended 31 December 2025.

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2025

and 31 December 2025

5,303,429

NET BOOK VALUE

At 31 December 2025

5,303,429

At 31 December 2024

5,303,429

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Property Recycling Group Ltd

Registered office: England & Wales

Nature of business: Property trading

%

Class of shares:

holding

Ordinary

96.87

2025

2024

£

£

Aggregate capital and reserves

26,336,213

25,971,242

Profit for the year

366,971

755,747

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2025

6,727,551

Additions

2,968

Revaluations

2,704,481

At 31 December 2025

9,435,000

NET BOOK VALUE

At 31 December 2025

9,435,000

At 31 December 2024

6,727,551

Fair value at 31 December 2025 is represented by:

£

Valuation in 2016

535,453

Valuation in 2017

144,537

Valuation in 2019

106,713

Valuation in 2025

2,704,481

Cost

5,943,816

9,435,000

8.

DEBTORS

2025

2024

£

£

Trade debtors

732,375

461,090

Amounts owed by group undertakings

110,484

153,354

Amounts owed by associates

78,799

78,799

Other debtors

2,122,980

2,010,094

3,044,638

2,703,337

9.	CURRENT ASSET INVESTMENTS

2025

2024

£

£

Listed investments

1,461

484

Single farm payment entitlements

-

53,306

1,461

53,790

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Other loans (see note 11)

18,645,356

19,095,356

Trade creditors

375,230

115,058

Amounts owed to group undertakings

1,483

1,483

Corporation tax

274,699

223,009

Social security and other taxes

10,960

10,988

VAT

12,754

159,248

Other creditors

140,790

144,414

Accruals and deferred income

1,288,645

1,019,911

20,749,917

20,769,467

The other loan above is from Property Recycling Group Limited. This loan is repayable on demand and, as such, has been classified as due within one year. However, the directors have indicated that no demands for repayment will be made in the foreseeable future.

11.

LOANS

An analysis of the maturity of loans is given below:

2025

2024

£

£

Amounts falling due within one year or on demand:

Loan from group undertakings

18,645,356

19,095,356

The other loan above is from Property Recycling Group Limited. This loan is repayable on demand and, as such, has been classified as due within one year. However, the directors have indicated that no demands for repayment will be made in the foreseeable future.

12.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2025

2024

£

£

Within one year

1,788

565

Between one and five years

5,643

283

7,431

848

13.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

Accelerated capital allowances

281,900

142,000

Other timing differences

506,465

42,815

Deferred tax on revaluations

3,783,709

1,989,831

4,572,074

2,174,646

Deferred

tax

£

Balance at 1 January 2025

2,174,646

Provided during year

139,901

Recognised on revaluation

2,257,527

Balance at 31 December 2025

4,572,074

14.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

113,776

Ordinary

£1

113,776

113,776

15.

RESERVES

Share premium account

This reserve records the amount above the nominal value received for shares sold, less transaction costs.

Fair value reserve - Non-distributable

This reserve is used to record movements in the fair value of investment property and other traded investments, which as unrealised is not distributable.

16.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

James Knights ACA BSc (Senior Statutory Auditor)

for and on behalf of Knights Lowe Limited

17.	PENSION COMMITMENTS

The company operates a defined contribution scheme for its employees. The scheme and its assets are held by independent managers.

The pension charge represents contributions due from the company and amount to £7,540 (2024: £7,634). There were unpaid pension contributions at the year end showing in other creditors of £1,258 (2024: £1,351).

18.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2025 and 31 December 2024:

2025

2024

£

£

P A Rackham

Balance outstanding at start of year

1,074,760

911,610

Amounts advanced

201,469

163,150

Amounts repaid

(10,000

)

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

1,266,229

1,074,760

P A Rackham Jnr

Balance outstanding at start of year

2,523

60,691

Amounts advanced

180,783

140,586

Amounts repaid

(150,184

)

(198,754

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

33,122

2,523

Directors advances accrue interest at HMRC approved rates.

19.	HOLDING COMPANY AND ULTIMATE CONTROLLING PARTY