2025 was a year of both progress and pressure for the horticulture industry. Across the UK, businesses continued to navigate rising employment costs, ongoing regulatory change, constrained consumer confidence and increasingly unpredictable weather patterns. Yet throughout these challenges I continued to be inspired by the resilience, adaptability and ambition of HTA members.

As we reflect on 2025, it is also an opportunity to consider the progress made under Grow 2026, the HTA's three-year strategy launched in 2024. Grow 2026 was designed to build a stronger, more resilient and more influential Association, one that delivers exceptional value for members while ensuring the HTA is well positioned to respond to the opportunities and challenges facing environmental horticulture. Entering the second year of the strategy, 2025 was a year of delivery, with significant progress across membership engagement, policy influence, commercial resilience and organisational capability.

Throughout the year, our focus remained on translating the foundations established in 2024 into sustainable outcomes for members. We continued to strengthen our membership proposition, expand our influence with government and decision-makers, diversify income streams and invest in the people, systems and infrastructure needed to support the Association's future. Importantly, we achieved this whilst maintaining a strong and stable financial position. Our objective remains to operate at break-even level, ensuring resources are reinvested directly into activities that deliver value for members whilst supporting the long-term resilience of the organisation.

One of the most significant developments in 2025 was the growing recognition of environmental horticulture within government and among policymakers. For many years, the HTA has argued that our sector should be viewed not simply as a collection of individual businesses, but as an industry that delivers economic growth, jobs, climate resilience, biodiversity, healthier communities and enhanced wellbeing.

Against a challenging policy backdrop, the HTA continued to strengthen its position as the leading voice for UK environmental horticulture. We maintained representation on key government advisory groups on sanitary and phytosanitary (SPS) matters, while continuing extensive engagement with ministers, officials and parliamentarians across Westminster and the devolved administrations.

Following sustained engagement and advocacy, the government's commitment to working towards a UK-EU SPS agreement that includes plant health marked an important milestone for the sector. The prospect of reduced border friction, lower costs and greater confidence in trade with our closest market represents one of the most positive developments for horticulture in recent years.

Recognition of the HTA's growing influence came through the TAF Award for Sector Representation of the Year, acknowledging the Association's lobbying, public affairs and advocacy work across a range of strategic priorities. This award reflects the collective efforts of members, staff and industry partners to ensure horticulture remains firmly on the policy agenda.

Supporting members remains central to everything we do. Building on the regional approach introduced in 2024, we significantly expanded opportunities for engagement, learning and collaboration throughout 2025.

The HTA delivered more than 40 regional member events, alongside an extensive programme of over 100 APL Cluster Meetings, technical workshops and online town halls. These activities provided practical support, networking opportunities and valuable opportunities for members to engage directly with the HTA team, policymakers and industry peers. It has been particularly encouraging to see so many members sharing expertise, contributing ideas and helping shape the Association's priorities.

2025 was a year of growing engagement. Attendance increased across the Garden Press Event, National Plant Show and Horticulture, The Conference, while participation in regional events and cluster meetings continued to rise. More entries were received for the New Plant Awards and Grower of the Year Awards, and we are now engaging with more horticultural businesses than at any point in the Association's recent history.

Alongside our policy work, we continued to raise the profile of horticulture through an increasingly influential media operation. The HTA is now regularly sought out as the industry's leading voice across national, regional and trade media. During 2025 we secured significant coverage on issues ranging from trade and plant health to water resilience, green infrastructure, skills and the economic contribution of horticulture.

This growing profile resulted in increased appearances across national radio networks, regional television and major news outlets. I was particularly pleased to represent the industry on BBC Breakfast, helping bring the benefits and opportunities of horticulture to a wider audience. We have also invested in media training for members, enabling more businesses to confidently share their own stories and engage with local and regional media.

The National Garden Gift Card reached another important milestone during the year. Record sales approaching £34 million, growth in business-to-business partnerships and expansion into major supermarket gift card mall networks introduced the scheme to a wider audience than ever before. By increasing visibility beyond traditional horticultural channels, we are attracting new consumers into garden centres, supporting member businesses and strengthening an important income stream that helps underpin the Association's wider work.

We also continued to focus on stimulating consumer demand and encouraging more people to engage with gardening. The launch of Your Garden Year, developed collaboratively with retailers and industry partners, provides a shared framework for inspiring gardening activity throughout the seasons and demonstrates what can be achieved when the industry comes together behind a common objective.

The last two years have also seen significant investment in strengthening the HTA itself. During 2025 we continued to enhance our finance, customer and operational systems, improving reporting, decision-making and member service. We also expanded our research, insight and business support capabilities, ensuring members have access to the information and resources needed to navigate an increasingly complex operating environment.

None of this would be possible without our people. During the year we continued to invest in professional development and strengthen a culture built around our newly launched values of Member focused, Inclusive and collaborative, Trusted and Innovative (MITI).

We also strengthened our approach to governance during 2025 by introducing a competitive and openly advertised process for Board recruitment. The exceptionally strong calibre and number of applicants was a powerful endorsement of the HTA and its future direction, particularly given that Board positions are voluntary roles. These changes help us to broaden the diversity of experience and perspectives represented around the Board table and reinforce the message that every member has the opportunity to contribute to the leadership of their Association.

As I look ahead, I remain optimistic. The challenges facing horticultural businesses are real and should not be underestimated. Labour costs, regulation, trade complexity and climate resilience will continue to demand attention. Yet the opportunities are equally significant.

Few industries are as well placed to contribute to economic growth, environmental improvement, public health, biodiversity and community wellbeing as environmental horticulture. Recent years have shown that the sector's contribution is increasingly recognised by policymakers, stakeholders and the public alike.

As we enter the final phase of Grow 2026, the HTA is stronger, more influential and more resilient than when the strategy began in 2024. We have strengthened our financial foundations, expanded our voice in government and the media, invested in our people and systems and increased the value we provide to members. I am incredibly proud of what we have achieved together and grateful to everyone who has contributed to that progress. Together, we will continue to champion horticulture, support our members and ensure our industry receives the recognition, investment and policy environment it deserves.

Introduction

The directors present the strategic report for the year ended 31 December 2025.

Environmental Horticulture is the art and science of improving the world around us with plants and trees. This includes the cultivation, planting and designing of flora for environmental and health benefits.

The Horticultural Trades Association (HTA) represents the entire UK sector’s supply chain, (1,332 businesses) including growers, retailers, landscapers, manufacturers and service providers, as well as running the National Garden Gift Card (NGGC) scheme. This means they are well positioned to use the experience, expertise and knowledge within their membership and professional employment in representations to the Government of The United Kingdom of Great Britain and Northern Ireland.

The HTA is run by members for members giving a voice to the industry and representing them to Government and other key stakeholders. It also supports gardening businesses and the wider supply chain with learning courses, trade shows, briefings, research, marketing and operational support.

The HTA’s directors set the company’s strategy and continually review performance against plan and budget.

Whilst a review of 2025 is included in the CEO's report above, the following events that took place in the year had a significant impact on the results for the year.

The Group early adopted the amendments to FRS 102, including most notably the changes to revenue recognition, during the year ended 31 December 2025. Under the previous accounting treatment, income arising from gift card breakage was recognised when cards expired after 30 months. The new treatment instead requires expected breakage to be estimated and recognised in revenue as gift cards are issued, based on historical redemption patterns and management's best estimate of amounts that will ultimately remain unredeemed.

As a result of this change, the Group recognised a one-off catch-up adjustment in 2025 in respect of expected breakage relating to gift cards that remained unexpired at 31 December 2025. This increased reported revenue and profit for the year by £2,083,205 and increased brought forward reserves by £2,927,075. The Board considers this revised approach to provide a more appropriate reflection of the economic substance of the gift card scheme by matching breakage income more closely to the period in which gift cards are sold and customer obligations arise.

During the year, the Association undertook an independent revaluation of Horticulture House, its principal operational property. The revised valuation indicated a decrease in market value from £4.78 million to £3.68 million, reflecting prevailing conditions in the commercial property market at the valuation date. As a result, the carrying value of the property was reduced by £1.126 million in the financial statements.

While this revaluation has no impact on the day-to-day operations or cash generation of the business, it ensures that the Association's balance sheet continues to reflect a current and realistic assessment of the value of its major property asset. The Board does not consider the reduction in valuation to have any impact on the Association's underlying trading performance or strategic objectives.

Membership numbers – The HTA is a membership organisation with a significant revenue stream from membership subscriptions. Growing this revenue stream by increasing the member base is an important part of the company’s strategy, as is monitoring consolidation and contraction within the sector. Membership numbers are therefore a vital metric for the association and a key performance target. As at the end of 2025 the HTA had 1,332 members (2024 – 1,359).

Surplus/deficit – The HTA is a not-for-profit organisation. All funds generated from operating and investing activities are used for the benefit of members. The focus is therefore to match income generated in the year with expenditure incurred and to run at break-even. Any surplus or deficit is therefore regularly reviewed. In 2025 the result for the year was a surplus of £2,084,962 (2024 (restated) - surplus of £1,623,240).

Gift card scheme sales - The National Garden Gift Card Scheme plays a crucial role in the operations of the HTA.  It locks in significant spend to the horticultural sector, for the benefit of members and it also provides vital income for the HTA to be able to carry out its activities. In 2025 the value of gift cards sold under the National Garden Gift Card scheme was £33,890,572 (2024 - £32,492,180).

Members satisfaction – one of the core values of the HTA is an unwavering focus on members and their interests. If the HTA is to remain relevant, then member engagement is a vital part of that. This is closely monitored with weekly satisfaction surveys amongst samples of the membership base. Satisfaction is scored on a scale from 1-10. The full year member satisfaction score for 2025 was 8.4 (2024 – 8.0).

Other key performance indicators are qualitative in nature and are expressed internally by the senior leadership team and the Board.

The principal risks facing the association as identified by the senior leadership team and the Board of Directors are:

Dependency on limited income sources – The HTA is heavily reliant on income generated from the gifting scheme and membership subscriptions. Gifting income in particular is highly sensitive to weather patterns and key occasions during the year, while membership subscriptions are influenced by consolidation in the environmental horticulture sector and leavers from that sector. To mitigate these risks, the Board and senior leadership team regularly review options for diversification as appropriate, consider new gifting strategies to identify new income streams and investigate new membership categories.

Disaster recovery and planning including cybersecurity – the threat from cybersecurity breach is ever present and increasing in relevance each year. As part of a wider disaster scenario, there is an increasing risk that the HTA may face destruction of property or records, loss of key data or system failures. If the HTA is unable to respond to these potential events in a timely manner, this could lead to an inability to function as an Association, a loss of key member data, reputational damage and potentially financial loss. While significant work has been done on IT specific risks, the association continues to develop a full disaster recovery plan to mitigate these risks

Effective engagement with members and reduced relevance – As a membership organisation, remaining engaged with and relevant to members is essential. With a diverse member base and a wide range of issues that the HTA must engage on there is a risk that members may feel the services offered are not relevant to their needs, that the lobbying capability is no longer effective, that there is a disconnect on the value proposition or that there are insufficient touchpoints with the HTA. This could lead to loss of membership or lack of engagement with the NGGV scheme both of which would affect income and potentially damage the HTAs ability to operate as an effective trade association. The HTA works hard to implement processes that incorporate member feedback on the Association’s strategy and activities, to engage members through a range of groups and committees and to communicate clearly the HTA constitution to key stakeholders.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2025.

The principal activity of the association continued to be that of the principal trade association representing ornamental growers, garden retailers, landscapers and suppliers.

The results for the year are set out on page 13.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The association has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

In accordance with the association's articles, a resolution proposing that Johnston Carmichael LLP be reappointed as auditor of the association will be put at a General Meeting.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the annual report, directors' report and the financial statements in accordance with applicable law and regulations.

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

In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

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

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the association will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the association 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 association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of The Horticultural Trades Association (the 'company') for the year ended 31 December 2025, which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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).

In our opinion the financial statements:

• Give a true and fair view of the state of the association's affairs as at 31 December 2025 and of its profit for the year then ended;

• Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• Have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the association 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 association'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 and Financial Statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the Annual Report and Financial Statements. 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 association and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

• Adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• The financial statements are not in agreement with the accounting records and returns; or

• Certain disclosures of directors' remuneration specified by law are not made; or

• We have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, set out on page 8, 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 association'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 association 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

We obtained an understanding of the legal and regulatory frameworks that are applicable to the association and the sector in which it operates, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

• Companies Act 2006;

• UK Corporation Tax legislation; and

• UK Generally Accepted Accounting Practice.

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

• Management override of controls

• Revenue recognition

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

• Reviewing minutes of meetings of those charged with governance for reference to: breaches of laws and regulation or for any indication of any potential litigation and claims; and events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud;

• Reviewing the level of and reasoning behind the company’s procurement of legal and professional services;

• Performing audit procedures over revenue recognition, testing sales from source documentation to the accounting system and ensuring year-end sales cut-off has been appropriately applied;

• Performing audit procedures over management’s estimate of breakage, including testing the underlying issuance and redemption data, testing management’s analysis of historical redemption trends and ensuring that the calculations of amounts to be released are accurate;

• Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by management in their calculation of accounting estimates for potential management bias;

• Completion of appropriate checklists and use of our experience to assess the Company’s compliance with the Companies Act 2006; and

• Agreement of the financial statement disclosures to supporting documentation.

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

Use of our report

This report is made solely to the association’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the association and the association’s members as a body, for our audit work, for this report, or for the opinions we have formed.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

The Horticultural Trades Association (the 'association') is limited by guarantee incorporated and domiciled in England & Wales under the Companies Act. The address of the registered office is given on the company information page and the nature of the association's operations, and its principal activities are set out in the Directors' report.

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, modified to include the revaluation of freehold properties and certain financial instruments at fair value. The material accounting policies adopted are set out below.

The directors have assessed the HTA's current and future solvency by means of a prudent forecasting exercise with detailed assumptions regarding future income generation, expenditure, and cash flows. true

Income and expenditure are closely monitored in order to protect cash reserves whilst prioritising activities that maximise member value and engagement. The directors are satisfied that the Association is well placed to manage its risks and has sufficient cash resources to fund ongoing operations for at least twelve months from the date of approval of these financial statements. The society has net current assets of £3,326,569 (2024 - £281,477), however, this figure includes the financial obligation of the Association management's estimate of the total expected redemption values of gift vouchers and cards. These financial instruments are not discounted as they are deemed to be payable on demand, however, it is unlikely that all amounts would be redeemed within one year.

In conclusion, the directors have formed a judgment, at the time of approving the financial statements, that there is a reasonable expectation that the Association has adequate resources to meet its obligations as they fall due whilst maintaining member services at their current level. For this reason, the directors continue to adopt the going concern basis in preparing the financial statements.

Revenue is measured at the fair value of the consideration received or receivable in the normal course of business, net of value added tax and trade discounts.

Membership and e-learning subscriptions income is recognised over the period of which the related services and member benefits are provided.

Commission income earned on gift card arrangements is recognised as gift cards are redeemed by customers, based on the contractual commission entitlement arising from redemption activity. The performance obligations relate to the maintenance of the gift card scheme.

Income relating to expected unredeemed gift cards and vouchers (breakage) is recognised in line with historical redemption patterns and only to the extent that it is highly probable that a significant reversal of revenue will not occur. Breakage revenue is recognised systematically as customers exercise their rights under the gift card and voucher programmes. Contract liabilities relate to membership fees received in advance.

Intangible assets purchased are stated at historical cost less amortisation.

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Other intangible assets represent the association's 50% interest in organising and staging The Garden Press Event in the UK, which commenced in 2017.

The directors considered that the future income generated from these events would benefit the association over a period of 5 years and accordingly the cost was amortised over this period.

Freehold properties are stated at their fair value. Tangible fixed assets other than freehold properties are stated at historical cost less depreciation.

Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Land is not depreciated.

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

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

At each reporting period end date, the association reviews the carrying amounts of its tangible and intangible 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 association 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.

Stocks consist of books, leaflets, deactivated gift cards and gift vouchers. These are stated at the lower of cost and net realisable value after making provisions for obsolete or slow-moving items.

At each reporting date, stock is assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to sell. The impairment loss is recognised immediately in the profit or loss for the period.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

The association 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 association's balance sheet when the association becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

The fair value of financial assets are determined by reference to quoted market prices. Fair value movements in respect of current asset investments are recognised in the profit or loss for the period.

Basic financial assets, other than current asset invetsments which are held at fair value are initially measured at transaction price (including transaction costs) and subsequently held at cost, less any impairment.

Basic financial liabilities are initially measured at transaction price (after deducting transaction costs) and subsequently held at amortised cost.

Basic financial liabilities, including creditors, 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.

The tax expense for the period comprises current 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 company’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 carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the association has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The Association assesses at the inception of a contract whether it is, or contains, a lease. Where material, a right-of-use asset and corresponding lease liability are recognised and accounted for over the lease term. No right-of-use assets or lease liabilities have been recognised during the year as any potential lease arrangements are not considered material to the financial statements.

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.

The association has early adopted the FRS 102 Periodic Review amendments ("Periodic Review 2024") from 1 January 2025 as follows:

Revenue

The association has applied the Periodic Review 2024 amendments to Section 23 Revenue for the first time using the retrospective approach and has therefore restated the comparative financial information. The impact of transition was reflected as an adjustment to prior year revenue, prior year contract assets, and opening profit and loss reserves.

The company’s revised accounting policies for revenue are set out in note 1.3, including the following main changes on application of Periodic Review 2024:

Revenue in relation to gift card and voucher breakage income was previously recognised on the later of when the voucher was redeemed or the financial obligation expired. In line with the new standard the revenue will be recognised in proportion to historical redemption patterns and only to the extent that is it highly probably that reversals are unlikely.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

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 freehold property included in tangible fixed assets (as per note 13) is carried at fair value at the balance sheet date. The property was revalued by CBRE Limited as at 20 March 2026, and it is the view of the directors that this valuation was appropriate and representative of the fair value of the property as at 31 December 2025.

The recognition of breakage revenue requires management to exercise judgement in estimating the proportion of gift cards and vouchers that are not expected to be redeemed. These estimates are derived from historical redemption trends and are reassessed periodically. Revenue is recognised in respect of expected breakage only to the extent that it is highly probable that a significant reversal will not occur. Differences between estimated and actual redemption patterns may impact the amount and timing of revenue recognised in future reporting periods.

The average monthly number of persons (including directors) employed by the association during the year was:

Their aggregate remuneration comprised:

The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount (credited)/charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

The association has £1.3m (2024 - £5.9m) of unused gross tax losses that have not been recognised.

The above other intangibles cost of £95,000 represents the association's 50% interest in organising and staging The Garden Press Event in the UK, which commenced in 2017.

The directors considered that the income generated from the Garden Press Event would benefit the association over a period of 5 years and 10 years. The above costs have been amortised over those periods.

The above patent relates to the purchase of a trademark in connection with The Association of Professional Landscapers.

The freehold property, Horticulture House, Chilton, is included at its fair value, as revalued by CBRE Limited as at 20 March 2026. It is the view of the directors that this valuation was appropriate and representative of the fair value of the property as at 31 December 2025.

In line with FRS 102 requirements, a depreciation charge in respect of freehold property was processed in the year, however a notional revaluation has been included as per the above in order to keep the carrying amount of the property unchanged in the current year.

If the freehold property was measured using the cost model, the carrying amounts would be as follows:

These contract liabilities are derived from the group's unredeemed gift voucher balances.

At the year end, the association had £24,779,003 (2024: £24,329,460) related to the transaction price allocated to unsatisfied performance obligations. Management expects that approximately 77% will be recognised as revenue within one year, 8% will be recognised between one and two years, with the remaining being recognised between two and three years.

Trade debtors are stated net of bad debt provisions of £64,841 (2024: £72,056).

Accrued income is revenue recognised in advance of billing and not conditional on future performance obligations.

Current asset investments comprise shares and bonds in listed companies which are traded on a regular basis, together with deposit accounts. The profit recognised on these investments in the income statement for the period was £836,391 (2024: £574,672) representing profits and losses on disposals and both realised and unrealised fair value re-measurements.

The financial instruments in circulation include both National Garden Gift Vouchers and Garden Gift Cards. These financial instruments are not discounted as they are deemed to be payable on demand.

The following are the major deferred tax liabilities and assets recognised by the association and movements thereon:

Other deferred income contains membership fee income to be released over the duration of the membership period.

The association operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the association in an independently administered fund. Contributions totalling £51,383 (2024 - £4,278) were payable to the fund at the year end and are included in creditors.

The revaluation reserve represents gains made on the revaluation of fixed assets.

The profit and loss reserve represents cumulative profits or losses.

The association is a private association limited by guarantee and consequently does not have share capital. Each of the members is liable to contribute an amount not exceeding £1.05 towards the assets of the association in the event of liquidation. There is no ultimate controlling party of The Horticultural Trades Association.