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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Barfoot Energy Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Sefter Farm, Pagham Road, Bognor Regis, West Sussex, United Kingdom, PO21 3PX.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

At the time of approving the financial statement, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The business and the wider Group to which it belongs continues to maintain strong reserves and has a robust asset base and as a result we remain confident the company has the ability to continue as a going concern for a period of 12 months from the date of approving these 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.

The company recognises revenue from the following major sources:

• Sale of electricity to intercompany

• Sale of electricity to the residence and grid

• Renewable Obligation Certificates (ROCs)

• Gate fees

The nature, timing of satisfaction of performance obligations and significant payment terms of the company's major sources of revenue are as follows:

Turnover comprises the fair value of the consideration received or receivable for the sale of electricity to Barfoots of Botley Limited and Barfoot Farms Limited.

The company recognises revenue when:

The amount of revenue can be reliably measured;

it is probable that future economic benefits will flow to the entity;

and specific criteria have been met for each of the Company's activities

Turnover comprises the fair value of the consideration received or receivable for the sale of electricity to the grid and residences on site, being the Granary and two cottages.

The company recognises revenue when:

The amount of revenue can be reliably measured;

it is probable that future economic benefits will flow to the entity;

and specific criteria have been met for each of the Company's activities

Turnover comprises the fair value of the consideration received or receivable for The Renewables Obligation scheme which is designed to encourage generation of electricity from eligible renewable sources in the UK.

The company recognises revenue when:

The amount of revenue can be reliably measured;

it is probable that future economic benefits will flow to the entity;

and specific criteria have been met for each of the Company's activities

A small portion of turnover comprises the fair value of the consideration received from Gate fees charged for the handling of third party food waste.

The company recognises revenue when:

The amount of revenue can be reliably measured;

it is probable that future economic benefits will flow to the entity;

and specific criteria have been met for each of the Company's activities

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Freehold land and assets in the course of construction are 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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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 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 company 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.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision for the engine service major overhaul is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the nature of the low risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

The amount recognised as a provision for the ROCS overclaim is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the nature of the low risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to reduce the sales is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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 leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

These decisions depend on the cash flow requirements of the company and whether the borrowings of the company can be repaid.

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.

Tangible fixed assets are depreciated over their useful lives, taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into consideration. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Accrued income is calculated based on electricity units produced and the standard rate applied to unit sales.

Silage stock is valued on cost. In assessing whether stock value is impairment, judgement is excercised over whether there is any degradation of the physical condition of stock.

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

The net carrying value of tangible fixed assets of plant and machinery is £9,983 (2024 - £33,943) in respect of assets held under finance leases or hire purchase contracts.

Other creditors include £11,335 (2024 - £22,670) relating to a finance lease, which is secured against the assets to which they relate.

Other creditors include £nil (2024 - £11,335) relating to a finance lease, which is secured against the assets to which they relate.

The provision for the major engine service is management's best estimate of the future costs of the mandatory engine service, The provision is expected to reverse after 8 financial years when the engines have been running for the requisite number of hours. However, this is subject to change if the hours running each year varies.

During 2023, management became aware of an overclaim in respect of ROCs claimed. The provision is management's best estimate of the amount overclaimed, based on the information available to them. This amount is expected to be settled post year end.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company'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.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

The company rents a barn to a fellow group company under an informal arrangement with no written contract. The rental arrangement operates on a rolling basis and is considered to have a non‑cancellable period of one year.

Lease income recognised during the year in respect of this arrangement was £18,000 (2024: £18,000).

Amounts contracted for but not provided in the financial statements:

The company has taken advantage of the FRS 102 exemption to not disclose related party transactions with wholly owned group entities.

The company's immediate parent is Barfoot Farms Limited, incorporated in England and Wales.

The ultimate parent is Posbrook Holdings Limited, incorporated in England and Wales.

The most senior parent entity producing publicly available financial statements is Posbrook Holdings Limited. These financial statements are available upon request from the company at Sefter Farm, Pagham Road, Bognor Regis, West Sussex, PO21 3PX.

Posbrook Holdings Limited is wholly owned by the Barfoot Family Trust. The trustees of the Barfoot Family Trust are Peter Barfoot and Barfoot Management Limited, who together are considered to be the ultimate controlling parties of the company.