Company registration number: 01136375
COMPANY INFORMATION
CONTENTS
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2025
The principal activity of the company is that of a holding company and the principal activities of the group are those of owning and operating vessels (Shipping) and diversified farming enterprises (Farming Group).
The group operates a cattle farm in the United Kingdom and a cattle ranch in the USA. The group has a branch in Wyoming in the United States of America.
The performance of the group's main trade has been reviewed below and excludes a review on trade from other group entities which is deemed insignificant.
The group operates a cattle farm in the United Kingdom and a cattle ranch in the USA. The group has a branch in Wyoming in the United States of America.
The performance of the group's main trade has been reviewed below and excludes a review on trade from other group entities which is deemed insignificant.
Results on vessels trading showed a decrease in gross profit from £17,401,173 in 2024 (as restated) to £15,469,773 in 2025, and a reduction in the gross profit ratio from 43.6% (as restated) to 38.2% in 2025. This was primarily due to an increase of £ 2,566,593 in the depreciation charged on the vessels and additional drydocking costs. The higher depreciation charge on the vessels arose from the prior year revaluation, which reflected the continued strength of the tanker market. Excluding depreciation in both years, the gross profit margin would have remained consistent.
The shipping company generated a profit for the year of £1,695,974 compared to £6,043,460 in 2024. This decline was driven by the factors noted above and an increase in general overheads across the board.
Total capital and reserves increased from £92,874,005 in 2024 to £100,034,370 in 2025. This was mainly due to an upward revaluation of the vessels and higher cash held at bank resulting from profits generated during the year.
The shipping company generated a profit for the year of £1,695,974 compared to £6,043,460 in 2024. This decline was driven by the factors noted above and an increase in general overheads across the board.
Total capital and reserves increased from £92,874,005 in 2024 to £100,034,370 in 2025. This was mainly due to an upward revaluation of the vessels and higher cash held at bank resulting from profits generated during the year.
Turnover generated by the group's farming interests remained steady at £1,309,857 (2024: £1,284,271), which is consistent with the prior year as a result of the continued rise in cattle prices. Trading showed a decrease in gross profit from £676,897 in 2024 to £399,259 in 2025, and a reduction in the gross profit ratio from 52.7% to 30.5%. This was primarily due to the prior year uplift in the fair value of biological assets and a general increase in overheads caused by grazing restrictions and inflationary price increases.
The farming group recorded a loss after taxation for the year of £593,027 (2024: £132,451), largely driven by the swing in the foreign exchange rate of £150,533, the factors noted above, and an increase in general overheads across the board. Total capital and reserves improved from a deficit of £8,809,557 in 2024 to £5,054,109 in 2025, predominantly due to an upward revaluation of land during the year.
The farming group recorded a loss after taxation for the year of £593,027 (2024: £132,451), largely driven by the swing in the foreign exchange rate of £150,533, the factors noted above, and an increase in general overheads across the board. Total capital and reserves improved from a deficit of £8,809,557 in 2024 to £5,054,109 in 2025, predominantly due to an upward revaluation of land during the year.
The board had contracted one new build vessel which is due to be delivered in 2026.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
The principal risks faced by the group are as follows:
Charter rate risk
Charter rate risk is the risk that the group could be adversely affected by falling market charter rates. In order to mitigate this risk, the directors seek to employ the group's vessels on both long and medium term time charters and short term spot charter arrangements.
Credit risk
Credit risk is the risk that a counterparty could default on its contractual obligations resulting in a financial loss to the group. The group is exposed to credit risk to the extent of its trade receivables and cash at bank and seeks to reduce this risk by trading with large, reputable multinational companies and placing deposits with blue chip financial institutions.
Liquidity risk
Liquidity risk is the risk that the group will encounter difficulties meeting financial obligations. The group's directors seek to reduce this risk by maintaining sufficient cash reserves, adopting prudent liquidity risk management policies and following strict cash flow budgets.
Foreign exchange risk
The group is subject to foreign exchange risk as certain transactions, assets and liabilities are denominated in currencies other than sterling. The group's directors seek to monitor and control these risks as part of their on-going financial forecasting and liability management.
War in Ukraine
The Company has assessed its potential exposure to the conflict in Ukraine and the economic sanctions imposed. Due to the location, structure and nature of operations, the Company is not considered to be materially exposed to the ongoing Russia and Ukraine conflict.
Due to currency fluctuations and the impact this has on the results of the Group, Management consider cash and cash equivalents to be the key performance indicator of the Group. The Group carefully manages its cash flows by following strict cash flow budgets and detailed long-term cash forecasting.
The Group has increased its cash and cash equivalents balance from £10,123,788 to £16,153,613 in the year, with the increase mainly as a result of the sale of a vessel and sale and leaseback arrangements that were entered into offset by the instalments paid on vessels under construction.
The Group has increased its cash and cash equivalents balance from £10,123,788 to £16,153,613 in the year, with the increase mainly as a result of the sale of a vessel and sale and leaseback arrangements that were entered into offset by the instalments paid on vessels under construction.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
The following disclosures describe how the Directors have had regards to the matters set out in the section 172 (1) (a) to (f) and forms the Directors statement required under section 414CZA of the Companies Act 2006. This reporting requirement is made in accordance with the corporate governance requirements identified the in Companies (Miscellaneous Reporting) Regulation 2018, which apply to company reporting on financial years starting on or after 1 January 2019.
The matters set out in section 172(1) (a) to (f) are that a Director must act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
(a) the likely consequences of any decision in the long term;
(b) the interests of the Group's employees;
(c) the need to foster the Group's business relationships with suppliers, customers and others;
(d) the impact of the Group's operations on the community and the environment;
(e) the desirability of the Group maintaining a reputation for high standards of business conduct; and
(f) the need to act fairly between members of the Group.
The matters set out in section 172(1) (a) to (f) are that a Director must act in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
(a) the likely consequences of any decision in the long term;
(b) the interests of the Group's employees;
(c) the need to foster the Group's business relationships with suppliers, customers and others;
(d) the impact of the Group's operations on the community and the environment;
(e) the desirability of the Group maintaining a reputation for high standards of business conduct; and
(f) the need to act fairly between members of the Group.
The Group continuously interacts with a variety of stakeholders important to its success, such as the customers, suppliers, personnel and government bodies.
The Group strives to strike the right balance between engagement and communication. Furthermore the Group works within the limitations of what can be disclosed to the various stakeholders with regards to maintaining confidentiality of market and/or commercially sensitive information.
The Key Stakeholder groups and how the Company has interacted with them is as follows:
Customers - New charterers who wish to conduct business with the Company are screened for evidence of anti-bribery and anti-corruption offences in accordance with the Bribery Act 2010 in the UK. They are also screened for inclusion on the US, EU and UK Sanction Lists. The Company does not trade with any entity known to be in breach of any anti-bribery or anti-corruption regulations, nor does it trade with any businesses that are on the US, EU or the UK Sanction Lists.
The Group ensures that sales of its livestock are conducted through recognised auction houses wherever possible.
The Group is dedicated to delivering focused and comprehensive coverage to its clients, providing solutions and ensuring rapid response to their needs as a service provider.
Suppliers - We have developed long standing relationships with key suppliers, ensuring that all suppliers meet the high standards of service and operation set by the Group.
Personnel - The Group considers its employees its most important asset and strives to ensure that its offices, farms and vessels are safe, rewarding and enjoyable workplaces. The Group will continue to invest in capital as it human believes maintaining low staff turnover across the entire workforce is a key driver of efficiency and rates of productivity.
Governmental bodies - The Group is impacted by local governmental organisations in the UK, and to a extent limited by worldwide trading of its fleet. Enquiries are dealt with both on an ad hoc basis and through regular reporting.
The Group strives to strike the right balance between engagement and communication. Furthermore the Group works within the limitations of what can be disclosed to the various stakeholders with regards to maintaining confidentiality of market and/or commercially sensitive information.
The Key Stakeholder groups and how the Company has interacted with them is as follows:
Customers - New charterers who wish to conduct business with the Company are screened for evidence of anti-bribery and anti-corruption offences in accordance with the Bribery Act 2010 in the UK. They are also screened for inclusion on the US, EU and UK Sanction Lists. The Company does not trade with any entity known to be in breach of any anti-bribery or anti-corruption regulations, nor does it trade with any businesses that are on the US, EU or the UK Sanction Lists.
The Group ensures that sales of its livestock are conducted through recognised auction houses wherever possible.
The Group is dedicated to delivering focused and comprehensive coverage to its clients, providing solutions and ensuring rapid response to their needs as a service provider.
Suppliers - We have developed long standing relationships with key suppliers, ensuring that all suppliers meet the high standards of service and operation set by the Group.
Personnel - The Group considers its employees its most important asset and strives to ensure that its offices, farms and vessels are safe, rewarding and enjoyable workplaces. The Group will continue to invest in capital as it human believes maintaining low staff turnover across the entire workforce is a key driver of efficiency and rates of productivity.
Governmental bodies - The Group is impacted by local governmental organisations in the UK, and to a extent limited by worldwide trading of its fleet. Enquiries are dealt with both on an ad hoc basis and through regular reporting.
The Group defines principal decisions as both those that have long-term strategic impact and are material to the Company, but also those that are significant to its key stakeholder groups. In making the following principal decisions, the Board considered the outcome from its stakeholder engagement, the need to maintain a reputation for high standards of business conduct and the need to act fairly between the members of the Company.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2025
The directors present their report and the financial statements for the year ended 30 June 2025.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £1,759,567 (2024 - profit £6,658,710).
During the year the company paid a dividend on ordinary shares of £1,250,000 (2024: £1,292,000).
The directors who served during the year were:
The Group has a branch operation in Wyoming in the United States of America.
In accordance with the requirements of the Companies (Directors’ Report) and Limited Liabilities (Energy and Carbon Report) Regulations 2018 the Directors would like to disclose the following information for the year ended 30 June 2025.
The Group's UK energy consumption was estimated to be 17,902kg of CO2 (2024: 16,675kg of CO2) and 76,788 kWh (2024: 71,524 kWh) during the year. This equates to 149.0 kWk (2024: 138.8 kWk) per square metre of floor space occupied by the group in the UK. This figure comprises kWh of electricity units used, gas consumed and LPG consumed.
The Group's UK energy consumption was estimated to be 17,902kg of CO2 (2024: 16,675kg of CO2) and 76,788 kWh (2024: 71,524 kWh) during the year. This equates to 149.0 kWk (2024: 138.8 kWk) per square metre of floor space occupied by the group in the UK. This figure comprises kWh of electricity units used, gas consumed and LPG consumed.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
The Group has zero tolerance approach to Slavery and Human Trafficking and is committed to preventing acts of Slavery from occurring within its business, its supply chain or any agents employed by the business, and impose the same high standards on its contractors, suppliers and other business partners.
The Group confirms it would terminate its relationships with individuals or organisations working on its behalf it they are found to be in breach of this policy.
The Group confirms it would terminate its relationships with individuals or organisations working on its behalf it they are found to be in breach of this policy.
The Group has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the group's Strategic Report the Group's Strategic Report Information required by schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Report) Regulations 2008. This includes information that would have been included in the business review, future developments and details of the principal risks and uncertainties.
On 20 October 2025, a subsidiary of the Group entered into a credit facility agreement with First Northern Bank of Wyoming for an amount of $3,000,000. The facility is intended to support the Group’s operations. The Company, Giles W Pritchard-Gordon & Co Limited, has provided a guarantee for this credit facility. This event occurred after the reporting date and does not affect the amounts recognised in the financial statements as at year-end.
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GILES W. PRITCHARD-GORDON & CO. LIMITED
We have audited the financial statements of Giles W. Pritchard-Gordon & Co. Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of 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 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 Group's or the 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 directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual Report. 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GILES W. PRITCHARD-GORDON & CO. LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GILES W. PRITCHARD-GORDON & CO. LIMITED (CONTINUED)
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 Group financial statements.
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:
∙The parent company and group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant including UK Companies Act, Corporate and VAT legislation, Employments taxes, Health Safety and the Bribery Act 2010, as well as those related to the shipping and farming activities. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the parent company and group is complying with those legal and regulatory frameworks by, making inquiries to management and those responsible for legal and compliance procedures.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.The assessment did not identify any issues in this area.
∙We assessed the susceptibility of the Group's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
°Posting of unusual journals and complex transactions;
°Risk of fictitious employees;
°Risk of manipulation of the fair value of the Group's assets.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GILES W. PRITCHARD-GORDON & CO. LIMITED (CONTINUED)
This report is made solely to the 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 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 Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
Magna House
18-32 London Road
TW18 4BP
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2025
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 42 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 42 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2025
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2025
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CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2025
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CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Giles W. Pritchard-Gordon & Co. Limited is a private company, limited by shares, domiciled in England and Wales with registration number 01136375. The registered office is disclosed on the company information page.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Functional and presentation currency
Transactions and balances
On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Voyage charter income is recognised using the percentage of completion method with voyages calculated on a discharge-to-discharge basis. Full provision is made for any losses on voyages in progress at the reporting date. Time charter income is recognised on a time apportioned basis.
Rental income from operating leases is credited to profit or loss on a straight-line basis over the lease term.
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Where a sale and leaseback transaction results in a finance lease, no gain is immediately recognised for any excess of sales proceeds over the carrying amount of the asset. Instead, the proceeds are presented as a liability and subsequently measured at amortised cost using the effective interest method.
When a sale and leaseback transaction results in an operating lease, and it is clear that the transition is established at fair value any profit or loss is recognised immediately. If the sale price is below fair value, any
profit or loss is recognised immediately unless the loss is compensated for by the future lease payments at below market price. In that case any such loss is amortised in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value is amortised over the period for which the asset is expected to be used.
When a sale and leaseback transaction results in an operating lease, and it is clear that the transition is established at fair value any profit or loss is recognised immediately. If the sale price is below fair value, any
profit or loss is recognised immediately unless the loss is compensated for by the future lease payments at below market price. In that case any such loss is amortised in proportion to the lease payments over the period for which the asset is expected to be used. If the sale price is above fair value, the excess over fair value is amortised over the period for which the asset is expected to be used.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Depreciation is provided so as to write off the valuation of the owned fleet over the estimated useful life of each vessel, being twenty-five years from the date of completion of the build. The depreciation of the vessels held under finance leases, which are stated at valuation, have been depreciated over twenty five years in the same way as the owned vessels.
Amounts capitalised in respect of vessels held on operating lease, are capitalised and amortised over the period to the end of the lease term.
Freehold land and buildings are stated at fair value less any subsequent accumulated depreciation.
All other assets are held under the cost model, and are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Fixed assets other than the fleet, are depreciated at the following annual rates :-
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Bloodstock is stated at the lower of cost and net realisable value.
Inventories in respect of bunkers are valued at the lower of cost and net realisable value. Cost is calculated on a first in, first out basis. No recognition is made for inventories of lubricants, deck, engine and cabin stores and provisions remaining on board the vessels at the reporting date.
The surplus arising on the revaluation of freehold land, buildings and the fleet is taken to other comprehensive income. Any revaluation surplus in relation to an asset disposed of in the year is released to retained earnings. Differences between the depreciation calculated based on the historical cost and the revalued amount is also released to retained earnings. Differences between the depreciation calculated based on the historical cost and the revalued amount is also released to retained earnings.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
2.Accounting policies (continued)
Assets held under finance lease agreements are capitalised in the statement of financial position and depreciated over the shorter of their estimated useful economic life and the lease. Where the lease includes an option to purchase the vessel, the vessel is depreciated over the vessel's estimated useful life. The capital element of finance lease repayments outstanding is included in payables. Interest is calculated to produce a constant periodic rate of charge on the outstanding balance.
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The company uses an interest rate swap to hedge its exposure to movements in interest rates.
Derivative financial instruments are initially recognised at fair value at the date a derivative contract is entered into and remeasured to their fair value at each reporting date. Changes in the fair value of derivative financial instruments are recognised as an income or expense in the Statement of Comprehensive Income as they arise.
The fair value of interest rate swap contracts are determined by calculating the present value of the estimated future cash flows based on observable yield curves.
Derivative financial instruments are initially recognised at fair value at the date a derivative contract is entered into and remeasured to their fair value at each reporting date. Changes in the fair value of derivative financial instruments are recognised as an income or expense in the Statement of Comprehensive Income as they arise.
The fair value of interest rate swap contracts are determined by calculating the present value of the estimated future cash flows based on observable yield curves.
Preference shares carry non-discretionary dividend obligations and are classified as liabilities. The dividends on these preference shares are taken to the income statement as finance expense.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
Significant accounting judgments
Valuation of freehold land and buildings
Freehold land and buildings is stated at valuation, which is reviewed by the directors at each reporting date. In order to assess valuation, management uses valuations from independent valuers in its assessment. See details of the last valuation details in note 13.
The Directors use their judgment in selecting a suitable valuation technique for derivative financial instruments. All derivative financial instruments are valued at market rate provided by the counterparty.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £860,176 (2024 - loss £2,111,257 ).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2025
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