The director presents the strategic report for Crawfords Group Holdings Ltd for the period ended 31 December 2025.
The principal activity of the company was that of a parent holding company to the group.
The principal activities of the group during the year was that of selling and maintaining agricultural machinery and utility vehicles.
On 31 March 2025, R.W. Crawford Agricultural Machinery Limited acquired all the trade and assets of a fellow group undertaking, Agwood Limited, as part of a group restructure.
Management use a range of performance measures to monitor and manage the business. The more relevant key performance indicators used are listed below:
Overall performance for the business was strong, showing a pre-tax profit of £644,407. The gross profit percentage of the business has increased from 5.2% in the previous 15-month period to 6.6% in the current 9-month period, reflecting improved trading performance and margin management. The operating profit margin is 2.8% this period, which is in line with the prior year margin of 2.7%. Sales revenue has decreased by 47% during this period compared to an increase of 32% in the previous period. However, the prior period covered 15 months whereas the current period covers 9 months following the change in accounting reference date and acquisition of the Agwood trade and assets. On a like-for-like basis, performance in wholegoods and parts improved during the period.
The solvency ratio has remained consistent with the ratio of current assets to current liabilities at 1.27 in comparison to 1.18 last year and this ratio remains healthy. The cash collection within the business remains strong and debtor days have decreased to 26 days (31 March 2025: 35 days). The balance sheet shows that the group's net assets at the period-end have increased from £6,472,974 to £6,841,434.
Management continually monitor the key risks facing the group, together with assessing the controls used for managing these risks. The board of directors formally reviews and documents the principal risks facing the business.
Economic downturn – The group acknowledges the importance of maintaining close relationships with its key customers in order to be able to identify the early signs of any difficulties in the agricultural industry. In times of economic downturn in sales of wholegoods the business looks to cover overriding overheads from aftermarket business and uses absorption as a key metric.
Competitive pressure – The market in which the group operates is considered competitive, and therefore competitor pressure could result in losing sales to key competitors. The group manages the risk by providing quality products, service and maintaining strong relationships with customers.
Loss of key personnel – This would present significant operational difficulties for the company. Management seek to ensure that personnel are appropriately remunerated to ensure that good performance is recognised and actively incorporates succession planning into its long-term strategic plans.
Seasonality – The group acknowledges the seasonal nature of the business in respect that harvest time is the busiest time for the group. Management are fully aware of the impact of this on our cash flow and prepare accordingly.
Interest rates – The group recognises that fluctuations in interest rates can affect both funding costs and customer financing decisions. Management mitigates this risk through diversified funding arrangements and regular monitoring of economic conditions and lending markets.
Supply chain impact of Ukraine Russia War – Whilst the conflict continues to create uncertainty within global supply chains, AGCO has remained agile and the group has experienced limited disruption to date. We have a good stock system controlled by a stock manager and draw on the resources of the dealer network when sourcing Isuzu vehicles. Any issues that we have experienced through delay in component parts are beginning to alleviate and we are planning well ahead for these delays.
Counter party risk – This is considered a minor risk. Our credit control function is closely monitoring customers and keeping a good control on cash in and we also have a very good business partnering approach. AGCO, who offer finance on machinery, carry the risk of customer default as we get paid in full at time of sale.
Cyber Security and Data Protection – The group is increasingly reliant upon technology and digital systems for its operations. Failure of these systems or a cyber security incident could lead to operational disruption and financial loss. Management mitigates this risk through regular system maintenance, employee awareness training, data backups and external IT support.
Other – As a business we are conscious of ongoing liquidity and fair value measurement and continue to review this on a monthly basis in conjunction with our management accounts.
We recognise the importance of non-financial KPIs in providing a comprehensive view of our company's health and performance. These include:
Staff Turnover Rate – Monitoring our staff turnover rate helps us understand employee satisfaction and retention. For instance, a lower turnover rate indicates a stable and satisfied workforce, while a higher rate may prompt us to investigate and address potential issues.
Employee Satisfaction – We regularly survey our employees to gauge their satisfaction and engagement. High levels of employee satisfaction often correlate with increased productivity and a positive workplace culture. For example, in a recent employee engagement survey over 90% of people responded positively when asked if they would recommend working at Crawfords to a friend or relative.
Customer Satisfaction – We measure customer satisfaction through feedback and surveys, aiming to maintain high levels of customer loyalty and positive reviews. This helps us identify areas for improvement and enhance our service offerings.
By addressing these non-financial KPIs, we can better manage our human resources, customer relations, and overall group reputation, ultimately supporting our long-term success and sustainability.
The directors of Crawfords Group Holdings Ltd. are fully aware of their duty under Section 172(1) of the Companies Act 2006 to act in a way that they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole. In doing so, the directors must have regard to, among other matters, the likely consequences of any decisions in the long term; the interests of employees; the need to foster business relationships with suppliers, customers and others; the impact of the company’s operations on the community and the environment; the desirability of maintaining a reputation for high standards of business conduct; and the need to act fairly between members of the company. Throughout the financial year, the directors have had regard to these factors in their decision-making. Key examples include:
1. Long-Term Consequences: The company is committed to long-term, sustainable growth and stability. Decisions are made with the future in mind, supported by robust budgeting and forecasting. Strategic investments in cutting-edge agricultural technologies are made to ensure our machinery continues to lead the market in performance, efficiency, and durability.
2. Employees: Our employees are at the heart of our success. We invest in retention, training, and professional development across all levels of the business. A comprehensive apprenticeship scheme is in place for technicians, in partnership with local colleges, to attract and train the next generation of skilled professionals.
We actively promote open communication across all departments through regular team meetings, encouraging staff at every level to participate in shaping the business. Employees are involved in key decisions, including those relating to operational performance, capital investment, and strategic direction.
We also maintain high standards of health and safety through the use of accredited third-party training providers, ensuring all staff are trained in the latest compliance and safety protocols.
3. Business Relationships: We value and nurture long-standing partnerships with our customers and suppliers. Our approach is built on mutual respect, trust, and a shared commitment to innovation and continuous improvement. Our customer relationships are centred on understanding individual needs and delivering tailored solutions that add genuine value. For suppliers, we support growth through close collaboration and knowledge sharing, helping them expand their capabilities and adapt to market needs.
4. Community and Environment: We are actively involved in supporting the local community, including sponsoring agricultural events and partnering with local institutions. Environmental considerations form part of our operational decision-making, with initiatives in place to reduce emissions, recycle waste, and promote eco-efficient practices.
5. Reputation: Maintaining our reputation for ethical conduct and professionalism is a core priority. We uphold high standards in all dealings, supported by internal guidelines and a commitment to transparency with stakeholders.
6. Members’ Interests: We act in the best interests of our shareholders, ensuring long-term value creation through strategic investment, disciplined cost control, and effective risk management. We maintain regular financial reporting and communication to ensure our shareholders are well informed.
The directors are committed to ensuring that the principles of Section 172 are consistently embedded in the company’s strategy, culture, and day-to-day decision-making.
Employees
Our employees, with their expertise and dedication, are essential to the long-term success of our business. Recognising this, human resources planning is a fundamental part of our strategy. We place a dedicated focus on employee retention and development at every level, ensuring our team members feel valued and supported in their roles.
We operate a comprehensive apprenticeship scheme for our technicians, collaborating closely with local colleges to attract and nurture new talent. This program not only provides valuable opportunities for young professionals but also ensures we have a steady pipeline of skilled workers ready to contribute to our success.
Open dialogue is strongly encouraged within our organisation, allowing employees to actively participate in shaping the group. This fosters a culture of change and performance, where everyone feels empowered to contribute ideas and improvements. Regular internal team and department meetings are held to promote the flow of information, enhance communication, and ensure cooperation among all employees. These meetings are crucial for aligning our collective efforts towards common goals.
We are committed to maintaining consistently high standards of safety and compliance training. To achieve this, we utilise third-party experts who provide specialised training programs, ensuring our employees are well-versed in the latest safety protocols and industry regulations. This commitment to safety not only protects our workforce but also enhances our overall operational efficiency.
Our staff play an active role in decisions surrounding strategy, operational performance, capital investments, and financial structure. Their input is highly valued and factored into all significant decisions made by the senior leadership team. This inclusive approach ensures that our strategies are well-rounded and considerate of diverse perspectives within the group.
Customers and Suppliers
We pride ourselves on fostering strong, collaborative relationships with both our customers and suppliers, formed over forty years of successful trading. These partnerships are built on trust, mutual respect, and a shared commitment to continuous growth and improvement.
Our approach to customer relationships is centred around understanding and addressing their unique needs. We recognise that each customer has distinct requirements, and we are dedicated to providing tailored solutions through our team of industry experts and specialists. By leveraging our deep knowledge of local conditions and the specific applications of our products, we create real added value for our customers. This customer-centric approach ensures that we not only meet but exceed their expectations.
We support our suppliers in developing and growing their businesses by maintaining close working relationships. Through continuous innovation and development, we help them expand their capabilities and enhance their offerings. Our commitment to these partnerships is unwavering, and we constantly strive to provide the right solutions to meet their evolving needs.
Our business operates on a "Farmer First" approach, ensuring that the unique needs and challenges faced by farmers are at the forefront of our efforts. Our experts share their knowledge and insights, helping our partners make informed decisions that drive success. This approach not only strengthens our relationships with customers and suppliers but also reinforces our reputation as a trusted and reliable partner in the industry.
As part of our commitment to continuous improvement, we regularly review our business model to identify and leverage further potential. This proactive approach allows us to adapt to changing market conditions and seize new opportunities, ensuring the long-term success of our business and the prosperity of our partners.
On behalf of the board
The director presents his annual report and financial statements for the period ended 31 December 2025.
The results for the period are set out on page 13.
Ordinary dividends were paid amounting to £81,297. The director does not recommend payment of a further dividend.
The director who held office during the period and up to the date of signature of the financial statements was as follows:
In accordance with the company's articles, a resolution proposing that Rickard Luckin be reappointed as auditor of the group will be put at a General Meeting.
This statement of carbon emissions complies with the Streamlined Energy and Carbon Reporting (SECR) requirements, covering energy consumption and associated greenhouse gas emissions relating to gas and electricity, energy intensity, and information relating to energy efficiency actions. Energy usage has been calculated based on gas and electricity meter readings, extrapolated where readings were not available. Fuel usage has been calculated based on fuel purchased using supplier invoices.
The group has used the 2025 UK Government conversion factors. Energy consumption derives from the following fuel types:
The Directors aim to reduce the group's energy intensity on an ongoing basis by assessing the impact of climate-related risks and actively seeking opportunities to reduce the group's carbon footprint. The Directors recognise that climate change is one of the most serious environmental challenges currently faced by the global community and understand that, as an organisation, we must play a role in reducing greenhouse gas emissions.
Risks related to climate change are managed through energy-efficiency initiatives. The Directors are committed to managing energy use responsibly and will implement energy efficiency practices throughout the organisation, wherever feasible and cost-effective. These initiatives include:
Informing Employees on Environmental Issues: Raising awareness and educating our staff about environmental impacts and sustainable practices.
Improving Building Energy Efficiency: Enhancing the energy efficiency of our buildings, including the use of a ground heat source system for heating at one of our premises.
Reducing Journeys: Minimising travel to reduce toxic emissions.
Selecting Fuel-Efficient and Low CO2 Vehicles: Choosing vehicles with better fuel efficiency and lower carbon dioxide emissions.
Working with Environmentally Conscious Suppliers: Collaborating with suppliers who actively minimise their environmental impact.
Encouraging Energy Conservation, Recycling, and Reuse: Promoting practices that conserve energy, recycle materials, and encourage reuse.
Embracing LED Lighting: Continuously replacing conventional lighting with LED lighting to significantly reduce the carbon footprint of our buildings.
Utilising solar panels: Installation of solar panels at the Writtle depot to generate our own electricity and reduce carbon emissions.
By implementing these measures, the Directors are committed to reducing the group's environmental impact and contributing to the global effort to combat climate change.
The directors have chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of results for the period, principal risks and uncertainties, corporate and social responsibility and engagement with customers and suppliers.
We have audited the financial statements of Crawfords Group Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 December 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 director with respect to going concern are described in the relevant sections of this report.
Other information
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 director's report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the parent company’s regulatory and legal correspondence.
We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the group and parent company.
The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the parent company and the group are subject to laws and regulations that directly affect the financial statements, including: the company’s constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly the parent company and the group are subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; trade legislation; data protection legislation; anti-bribery and anti-corruption legislation.
International Auditing Standards (UK) limit the required procedures to identify non-compliance with these laws and regulations, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.
In relation to fraud, we performed the following specific procedures in addition to those already noted:
Challenging assumptions made by management in its significant accounting estimates in particular: stock obsolescence;
Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, and journal entries crediting revenue accounts;
Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud;
Ensuring that testing undertaken on both the performance statements, and the Statement of Financial Position includes a number of items selected on a random basis; and
Discussions with management.
These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with International Auditing Standards (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.
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.
As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £112,402 (2025 - £101,837 profit).
Crawfords Group Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 16 Fox Burrows Lane, Writtle, Chelmsford, Essex, United Kingdom, CM1 3SS.
The group consists of Crawfords Group Holdings Ltd and all of its subsidiaries.
The company and the group has changed its year end and the current period results represent the 9 month period ending 31 December 2025. The results are therefore not directly comparable with the prior 15 month period.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
As permitted by S408 Companies Act 2006, the company has not presented its own statement of cash flows and profit and loss accounts and related notes.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where this company prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of an exemption from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures.
The consolidated group financial statements consist of the financial statements of the parent company Crawfords Group Holdings Ltd 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.
The consolidated statement of comprehensive income and balance sheet include the financial statements of the company and its subsidiary undertakings made up to 31 March 2025 under the merger accounting method.
In the prior year, the parent company acquired 100% of the share capital of R.W. Crawford Agricultural Machinery Ltd as part of a group reconstruction. This combination has been accounted for as a merger.
Under merger accounting, the consolidated financial statements merge the financial statements of those undertakings of Crawfords Group Holdings Ltd as if they had always been owned. Accordingly, in those years where mergers take place, the whole of the results, assets, liabilities and shareholders' funds of the merged companies are consolidated, regardless of the actual merger date, and corresponding figures for previous years are shown as though the group had always existed. Intra-group sales and profits are eliminated fully on consolidation.
These financial statements have been prepared under the going concern basis.
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.
When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of services is recognised over the life of the service contract. Turnover is shown as the total amount of work having been done in that period. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Warranty income is recognised at the fair value of any work carried out on warranty contracts, if the final outcome can be assessed with reasonable certainty. Turnover is recognised when the work has been completed and consideration is due from the manufacturer.
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.
Investment properties wholly let within the group are treated as land and buildings and are held at cost less depreciation.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
FRS 102 (September 2024)
Following the FRC’s periodic review, the FRC have issued a revised FRS 102 (September 2024) effective for periods commencing on or after 1 January 2026. The first period the group will adopt the revised standard is the period ending 31 December 2026. The revised standard is expected to have a material impact on the group’s financial statements. The directors are still in the process of identifying the full impact of these changes. Set out below are the expected changes:
• Operating leases committed to as at 1 January 2026 as disclosed in the notes to the financial statements will be brought onto the balance sheet as a right of use asset to be included within fixed assets and a corresponding lease liability to be included within creditors as at 1 January 2026. There will be no restatement of the results and financial position of the group for the periods ended 31 March 2025 or 31 December 2025 as a result of this change.
• The revised FRS 102 introduces a 5 step model to revenue recognition. The impact of adopting this 5 step approach is not anticipated to impact revenue recognition and no restatement is expected.
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
The directors have made provisions against certain finished goods where they estimate that its recoverable value is less than its cost based on the age of this stock.
The average monthly number of persons (including directors) employed by the group and company during the period was:
Their aggregate remuneration comprised:
As total directors' remuneration was less than £200,000 in the current period, no disclosure is provided for the current period.
The number of directors for whom retirement benefits are accruing under defined contribution scheme amount to 2 (31 March 2025: 1).
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
Included within tangible fixed assets are assets held under finance leases or hire purchase contracts, as follows:
Fixed assets are included within the floating charge over all such assets that have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity. There is also a fixed charge over the land.
Details of the company's subsidiaries at 31 December 2025 are as follows:
Agwood Ltd ceased trading on 31 March 2025 and remains dormant after the period end.
The company has given a guarantee to its subsidiary Agwood Limited, thus exempting this subsidiary from the requirement to have an audit by virtue of S479c of Companies Act 2006.
The title of goods in stock is pledged as security for liabilities. The directors have made a provision for old stock. During the year there was a credit to cost of sales in respect of this provision totalling £24,420 (31 March 2025: £289,607 charge).
The stocking loan facility, totalling £9,263,037 (31 March 2025: £14,916,979), represents amounts advanced to finance the purchase of stock for resale. The finance is secured on the underlying asset.
Finance lease obligations are secured on the assets to which they relate.
The bank loans and overdrafts are secured by fixed charges over the freehold property and floating charges over the assets of the group.
Included within creditors falling due after more than one year are amounts of £1,769,926 (31 March 2025: £1,549,806) repayable after five years by instalments. The bank loans are secured by a fixed charge on the freehold land and buildings and carry an interest rate of 1.85% over base rate.
Finance lease payments represent rentals payable by the group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
The following are the major deferred tax liabilities and assets recognised by the group and company:
The deferred tax liability set out above is not expected to reverse within 12 months.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The holders of Ordinary shares are entitled to receive dividends as declared, are entitled to one vote per share at meetings of the Company, and are entitled to capital distributions.
The holders of 'B' and 'C' shares are entitled to receive dividends as declared, but shall not be entitled to receive notice, attend or vote at any general meeting of the Company. The 'B' and 'C' shares do not entitle the holders thereof to participate in any capital distribution other than to reclaim the capital paid up on such shares.
After the period end the company has purchased and subsequently cancelled one £1 B share and one £1 C Share. They had a nominal value totalling £1 each and no consideration was paid.
After the period end the remaining 50,000 Ordinary shares were redesignated to 35,000 Ordinary shares, 5,000 Ordinary B shares and 10,000 Ordinary C shares.
The holders of the new Ordinary B shares are entitled to receive dividends as declared, are entitled to one vote per share at meetings of the Company, and are entitled to capital distributions.
The holders of the new Ordinary C shares are entitled to receive dividends as declared, are entitled to capital distributions, but do not carry the right to attend or vote at any general meeting of the Company.
Company
As at the balance sheet date the company's profit and loss reserves are wholly distributable.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Dividends totalling £81,297 (31 March 2025 - £101,430) were paid in the period in respect of shares held by the group's directors.
Included within debtors is a loan due from a director of £1,519 (31 March 2025: £1,857). During the period, the group made net loans to the director of £nil (31 March 2025: £1,857). The interest rate applied to the loan is nil.
The remuneration of key management personnel is as follows.
Company
As at the period end, the company owed £