ARC Farming Ltd - Accounts to registrar (filleted)

REGISTERED NUMBER: 09567164 (England and Wales)

ARC Farming Ltd

Unaudited Financial Statements

for the Year Ended 31 December 2025

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DIRECTORS:

RL Norman

CG Norman

AJ Boley

CJR North

REGISTERED OFFICE:

The Leen

Pembridge

Leominster

Herefordshire

HR6 9HN

REGISTERED NUMBER:

09567164 (England and Wales)

ACCOUNTANTS:

The Hutchinson Partnership Limited

trading as The Hutchinson Partnership

Chartered Accountants

The Bull Pen

Grove Farm

Portway, Burghill

Hereford

HR4 8NF

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Statement of Income and Retained Earnings and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of ARC Farming Ltd for the year ended 31 December 2025 which comprise the Statement of Income and Retained Earnings, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the Board of Directors of ARC Farming Ltd, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of ARC Farming Ltd and state those matters that we have agreed to state to the Board of Directors of ARC Farming Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than ARC Farming Ltd and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that ARC Farming Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of ARC Farming Ltd. You consider that ARC Farming Ltd is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of ARC Farming Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

The Hutchinson Partnership Limited

trading as The Hutchinson Partnership

Chartered Accountants

The Bull Pen

Grove Farm

Portway, Burghill

Hereford

HR4 8NF

25 September 2026

FIXED ASSETS

Tangible assets

4

1,343,019

1,647,792

Investments

5

777,450

25,064

2,120,469

1,672,856

CURRENT ASSETS

Stocks

6

159,757

449,717

Debtors

7

377,086

304,908

Cash at bank

1,558

20,125

538,401

774,750

CREDITORS

Amounts falling due within one year

8

1,292,912

1,324,099

NET CURRENT LIABILITIES

(754,511

)

(549,349

)

TOTAL ASSETS LESS CURRENT
LIABILITIES

1,365,958

1,123,507

CREDITORS

Amounts falling due after more than one
year

9

(1,111,976

)

(1,196,780

)

PROVISIONS FOR LIABILITIES

12

(61,252

)

-

NET ASSETS/(LIABILITIES)

192,730

(73,273

)

CAPITAL AND RESERVES

Alloted, issued and fully paid

share capital

1,120

Share premium

23,888

Retained earnings

167,722

(98,281

)

SHAREHOLDERS' FUNDS

192,730

(73,273

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

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

The financial statements were approved by the Board of Directors and authorised for issue on 24 September 2026 and were signed on its behalf by:

AJ Boley - Director

1.	STATUTORY INFORMATION

ARC Farming Ltd is a private company, limited by shares, incorporated and registered in England and Wales. The company's registered number and registered office can be found on the Company Information page. The company's record keeping is carried out at the registered office but its trading enterprises are carried out at two separate sites - Tan House Farm, Ruddle, Newnham on Severn, Gloucestershire, GL14 1DX and Mowley, Titley, Kington, Herefordshire, HR5 3RT.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Going concern

The directors are aware that the company has net current liabilities. The directors are confident that the company will trade profitably in future and will be able to trade within its agreed finance facilities for the next 12 months. They have also confirmed that they will not withdraw their loan accounts to the detriment of other creditors within this period. The directors therefore consider it appropriate to prepare the accounts on a going concern basis.

Turnover

Turnover represents milk sales, livestock sales and dairy contracting services, stated net of discounts, rebates, value added tax and other sales taxes.

The company recognises revenue when the significant risks and rewards of ownership have passed to the buyer, when the amount of revenue can be measured reliably, when it is probable that the economic benefits associated with the transaction will flow to the entity and when the costs incurred or to be incurred in respect of the transaction can be measured reliably. Revenue from services is recognised in the accounting periods in which the services are rendered.

The following criteria must therefore be met before revenue is recognised:

Milk sales are recognised when the milk is collected from the farm.

Livestock sales are recognised when the animals are sold at market or delivered to the abattoir.

Dairy contracting services are recognised in the period in which the services are provided.

Tangible fixed assets

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

Leasehold property improvements

-

4% on cost

Plant and machinery

-

25% on reducing balance, 15% on reducing balance and 4% on cost

Motor vehicles

-

25% on reducing balance and 15% on reducing balance

Ruddle herd

-

20% on cost less residual value

The company has the following biological assets included within tangible fixed assets which are valued as disclosed:-

Herd - valued at their depreciated cost.

Stocks

Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell. Provision is made for obsolete and slow moving stock where appropriate.

Cost is calculated using the first-in, first-out method and includes all purchase, transport and handling costs in bringing stocks to their present location and condition.

The company has the following biological assets included within stocks which are valued as disclosed:-

Livestock - valued at their estimated cost with reference to current market values.

Fixed asset investments

Investments are carried at fair value.

Listed investments and investments which can be measured reliably are therefore valued at market value at the balance sheet date, with changes in value charged to the profit and loss.

Investments whose fair value cannot be reliably measured are carried at cost less impairment.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Assets purchased under hire purchase contracts capitalised in the balance sheet and are depreciated over their estimated useful lives.

The interest element of these obligations is charged to the profit or loss account over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

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

3.

EMPLOYEES

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

4.	TANGIBLE FIXED ASSETS

Leasehold

property

Plant and

Motor

Ruddle

improvements

machinery

vehicles

herd

Totals

£

COST

At 1 January 2025

384,208

1,107,003

25,973

888,109

2,405,293

Additions

-

138,262

4,000

107,880

250,142

Disposals

-

(36,500

)

(5,000

)

(84,000

)

(125,500

)

Reclassification/transfer

-

(506,860

)

(506,860

)

At 31 December 2025

384,208

1,208,765

24,973

405,129

2,023,075

DEPRECIATION

At 1 January 2025

76,860

355,729

22,381

302,531

757,501

Charge for year

15,368

72,789

1,809

63,226

153,192

Eliminated on disposal

-

(20,305

)

(5,000

)

(51,960

)

(77,265

)

Reclassification/transfer

-

(153,372

)

(153,372

)

At 31 December 2025

92,228

408,213

19,190

160,425

680,056

NET BOOK VALUE

At 31 December 2025

291,980

800,552

5,783

244,704

1,343,019

At 31 December 2024

307,348

751,274

3,592

585,578

1,647,792

The company's tangible fixed assets are subject to a fixed and floating charge.

Included within plant and machinery are assets subject to hire purchase contracts with a net book value of £108,441 (2024: £37,428).

5.	FIXED ASSET INVESTMENTS

Titley

Unlisted

livestock

investments

Totals

£

COST OR VALUATION

At 1 January 2025

-

25,064

Additions

-

4,786

Revaluations

142,112

-

142,112

Reclassification/transfer

605,488

-

605,488

At 31 December 2025

747,600

29,850

777,450

NET BOOK VALUE

At 31 December 2025

747,600

29,850

777,450

At 31 December 2024

-

25,064

Cost or valuation at 31 December 2025 is represented by:

Titley

Unlisted

livestock

investments

Totals

£

Valuation in 2025

142,112

-

142,112

Cost

605,488

29,850

635,338

747,600

29,850

777,450

Included within fixed asset investments is the Titley herd of dairy cows and followers. These animals are held as investments as the company receives an annual hire charge for them.

6.

STOCKS

2025

2024

£

Livestock valuation

106,900

375,300

Raw materials

52,857

74,417

159,757

449,717

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

Trade debtors

197,288

118,838

Prepayments and accrued income

179,223

132,526

Other debtors

575

VAT

-

24,922

Deferred tax asset

-

28,047

377,086

304,908

The company's current assets are subject to a fixed and floating charge.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

Bank loans and overdrafts

584,496

539,751

Hire purchase contracts (see note 10)

29,033

12,320

Trade creditors

106,465

261,037

Social security and other taxes

9,210

8,613

VAT

3,683

-

Other creditors

2,308

533

Related party loans

355,457

354,431

Directors' current accounts

79,459

78,960

Accruals and deferred income

122,801

68,454

1,292,912

1,324,099

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

2025

2024

£

Bank loans

70,000

126,074

Bank loans - 2-5 years

215,796

219,000

Bank loans - more than 5 years

252,024

316,840

Hire purchase contracts (see note 10)

55,595

19,029

Directors' loan accounts

515,837

Accruals and deferred income

2,724

-

1,111,976

1,196,780

Amounts falling due in more than five years:

Repayable by instalments

Bank loans - more than 5 years

252,024

316,840

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2025

2024

£

Net obligations repayable:

Within one year

29,033

12,320

Between one and five years

55,595

19,029

84,628

31,349

Non-cancellable

operating leases

2025

2024

£

Within one year

100,817

Between one and five years

403,268

In more than five years

1,159,396

1,260,213

1,663,481

1,764,298

11.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

Bank overdrafts

464,589

417,751

Bank loans

657,727

783,914

Hire purchase contracts

84,628

31,349

1,206,944

1,233,014

The bank loan and overdraft with HSBC Bank plc are secured by a fixed and floating charge over all assets of the company.

Hire purchase liabilities are secured against the specific assets for which finance was raised.

12.	PROVISIONS FOR LIABILITIES

2025

£

Deferred tax

Advanced capital allowances

193,956

Trading losses

(132,704

)

61,252

Deferred

tax

£

Balance at 1 January 2025

(28,047

)

Advanced capital allowances

11,258

Trading losses

78,041

Balance at 31 December 2025

61,252

13.	RELATED PARTY DISCLOSURES

During the year the company made purchases of £NIL (2024: £12,000) from a company in which two of the directors of ARC Farming Ltd are also directors.

Included in creditors due after one year are loans from directors of £515,837 (2024: £515,837), which are interest free and repayable in not less than one year. Included in creditors due in less than one year are loans from directors of £79,459 (2024: £78,960). These loans are interest free and repayable on demand.

The tenancy for the Ruddle dairy is held in the name of all four of the directors.

Included in creditors due within one year is a loan of £218,400 (2024: £218,400) from a company in which two of the directors of ARC Farming Ltd are also directors. Interest of £5,475 (2024: £5,475) at 2.5% (2024: 2.5%) has been charged on this loan.

Also included within creditors due within one year is another loan of £42,057 (2024: £41,031) from another company in which two of the directors of ARC Farming Ltd are also directors. Interest of £1,026 (2024: £903) at 2.5% (2024: 2.25%) has been charged on this loan.

There are also loans from other related parties of £95,000 (2024: £95,000). Interest of £2,375 (2024: £2,375) at 2.5% (2024: 2.5%) has been charged on these loans.