REGISTERED NUMBER: 03537677 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2025

FOR

R V W PUGH LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

R V W Pugh

Mrs C A Pugh

SECRETARY:

Mrs C A Pugh

REGISTERED OFFICE:

Mellington

Churchstoke

Montgomery

Powys

SY15 6TQ

REGISTERED NUMBER:

03537677 (England and Wales)

SENIOR STATUTORY AUDITOR:

Francis Nock F.C.C.A.

AUDITORS:

D.R.E. & Co. (Audit) Limited

7 Lower Brook Street

Oswestry

Shropshire

SY11 2HG

The directors present their strategic report for the year ended 28 February 2025.

REVIEW OF BUSINESS

Overall, turnover has increased by 8.68% in 2025 compared to 2024. Despite the increase in turnover the company has experienced a decrease in gross profit, and gross profit percentage this year 8.36% compared to 9.38% in the previous year. The net profit percentage has however increased at 8.14% this year compared to 1.26% in the previous year. The industry average for net profit percentage remains at 1% so this indicates that the company is performing in line with expectations within its sector. Return on capital employed and return on equity remain healthy. The company uses the above as KPIs and despite the decrease in margins, the company is still satisfied that it is performing in line with expectations and has no concerns.

PRINCIPAL RISKS AND UNCERTAINTIES

Competition is a significant risk to the company, as the Agricultural Machinery industry is a highly saturated market. The directors look to mitigate this risk by providing high quality machinery, excellent customer service and ensuring that high levels of stock are held to ensure that custom is not lost to a competitor.

ON BEHALF OF THE BOARD:

Mrs C A Pugh - Secretary

30 October 2025

The directors present their report with the financial statements of the company for the year ended 28 February 2025.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of resale and maintenance of farm machinery and associated products.

DIVIDENDS

An interim dividend of £1 per share was paid on 28 February 2025. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 28 February 2025 will be £ 2,000 .

DIRECTORS

The directors shown below have held office during the whole of the period from 1 March 2024 to the date of this report.

R V W Pugh

Mrs C A Pugh

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 company and of the profit or loss of the company 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;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, D.R.E. & Co. (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mrs C A Pugh - Secretary

30 October 2025

Opinion

We have audited the financial statements of R V W Pugh Ltd (the 'company') for the year ended 28 February 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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 our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 28 February 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 company'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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other

management, and from our commercial knowledge and experience of the client's operating sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, employment,environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of

management; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to

instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to their knowledge of actual, suspected and alleged fraud; and

- reviewing the client's system notes and internal controls.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias;

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims;

- reviewing correspondence with HMRC.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Report of the Auditors.

Use of our report

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 a Report of the Auditors 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.

Francis Nock F.C.C.A. (Senior Statutory Auditor)

for and on behalf of D.R.E. & Co. (Audit) Limited

7 Lower Brook Street

Oswestry

Shropshire

SY11 2HG

30 October 2025

TURNOVER

4

23,704,902

21,811,585

Cost of sales

(21,722,339

)

(19,766,319

)

GROSS PROFIT

1,982,563

2,045,266

Administrative expenses

10,807

(1,574,429

)

1,993,370

470,837

Other operating income

358,167

8,094

OPERATING PROFIT

6

2,351,537

478,931

Interest receivable and similar income

959

9,317

2,352,496

488,248

Amounts written off investments

7

(105,000

)

-

2,247,496

488,248

Interest payable and similar expenses

8

(317,328

)

(213,074

)

PROFIT BEFORE TAXATION

1,930,168

275,174

Tax on profit

9

(468,845

)

(98,773

)

PROFIT FOR THE FINANCIAL YEAR

1,461,323

176,401

PROFIT FOR THE YEAR

1,461,323

176,401

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,461,323

176,401

FIXED ASSETS

Tangible assets

11

7,868,909

5,227,568

Investments

12

93,024

198,024

7,961,933

5,425,592

CURRENT ASSETS

Stocks

13

11,385,878

12,563,806

Debtors

14

6,112,219

5,349,085

Cash at bank

7,439

6,854

17,505,536

17,919,745

CREDITORS

Amounts falling due within one year

15

7,818,486

7,488,302

NET CURRENT ASSETS

9,687,050

10,431,443

TOTAL ASSETS LESS CURRENT LIABILITIES

17,648,983

15,857,035

CREDITORS

Amounts falling due after more than one year

16

(228,487

)

(200,804

)

PROVISIONS FOR LIABILITIES

20

(832,703

)

(527,761

)

NET ASSETS

16,587,793

15,128,470

CAPITAL AND RESERVES

Called up share capital

21

2

2

Retained earnings

22

16,587,791

15,128,468

SHAREHOLDERS' FUNDS

16,587,793

15,128,470

The financial statements were approved by the Board of Directors and authorised for issue on 30 October 2025 and were signed on its behalf by:

R V W Pugh - Director

Mrs C A Pugh - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 March 2023

2

14,956,067

14,956,069

Changes in equity

Dividends

-

(4,000

)

(4,000

)

Total comprehensive income

-

176,401

176,401

Balance at 29 February 2024

2

15,128,468

15,128,470

Changes in equity

Dividends

-

(2,000

)

(2,000

)

Total comprehensive income

-

1,461,323

1,461,323

Balance at 28 February 2025

2

16,587,791

16,587,793

1.	STATUTORY INFORMATION

R V W Pugh Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	STATEMENT OF COMPLIANCE

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" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

These financial statements are for the individual entity only.

The financial statements are presented in Sterling (£), rounded to the nearest £1.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirements of paragraphs 29.28(b) and 29.29;

•

the requirement of paragraph 33.7.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Land & buildings

-

2% on cost and not provided

Improvements to property

-

25% on cost and 2% on cost

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

50% on reducing balance and 33% on cost

Motor vehicles

-

25% on reducing balance

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

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

Pension costs

The company makes payments to the directors personal pension scheme.

Basic financial instruments

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs, and then subsequently measured at amortised cost. Financial assets classified as receivable within one year are not amortised. Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some risks and rewards of ownership are retained but control of the assets has transferred to another party that is able to sell the asset in its entirety to an unrelated party.

Basic financial liabilities, including creditors and loans, 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. 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. Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

A financial asset held as an equity instrument is recognised initially at the transaction price (including transaction costs).

At the end of each reporting period, unlisted equity investments are recorded at fair value, where appropriate, or at cost less impairment if their fair value cannot be reliably measured. Objective evidence of the impairment of financial assets is assessed at each period end and any impairment loss recognised in the profit or loss immediately. Impairment loss is calculated as the difference between the carrying amount of the instrument and the best estimate of the cash flows expected to be derived from the asset (including sales proceeds if sold) at the balance sheet date.

Investment income is recognised in the financial statements when the company becomes entitled to its share of profits from the financial instrument.

Significant judgements and estimates

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

The company provides against the stock it holds based on the age profile of the units held utilising management's past experience and anticipated future market trends. See note 12 for the net carrying amount of stock.

4.

TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by geographical market is given below:

28.2.25

29.2.24

£

£

United Kingdom

23,490,077

21,298,588

European Community

214,825

497,313

Rest of the World

-

15,684

23,704,902

21,811,585

5.	EMPLOYEES AND DIRECTORS

28.2.25

29.2.24

£

£

Wages and salaries

2,177,767

1,970,205

Social security costs

183,812

163,485

Other pension costs

43,906

39,000

2,405,485

2,172,690

The average number of employees during the year was as follows:

28.2.25

29.2.24

Sales

11

12

Admin

8

8

Other

54

53

73

73

28.2.25

29.2.24

£

£

Directors' remuneration

59,833

58,000

Directors' pension contributions to money purchase schemes

1,421

1,366

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

28.2.25

29.2.24

£

£

Depreciation - owned assets

369,057

365,714

Depreciation - assets on hire purchase contracts

106,240

87,347

Profit on disposal of fixed assets

(179,795

)

(142,003

)

Auditors' remuneration

19,430

24,725

Other operating costs

71,902

89,790

7.

AMOUNTS WRITTEN OFF INVESTMENTS

28.2.25

29.2.24

£

£

Amounts w/o invs

105,000

-

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

28.2.25

29.2.24

£

£

Bank & HP interest

223,261

185,123

Bank loan interest

25,783

27,951

Interest on tax

68,284

-

317,328

213,074

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

28.2.25

29.2.24

£

£

Current tax:

UK corporation tax

-

177,213

Under/over provision of tax

163,903

(42,498

)

Total current tax

163,903

134,715

Deferred tax

304,942

(35,942

)

Tax on profit

468,845

98,773

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

28.2.25

29.2.24

£

£

Profit before tax

1,930,168

275,174

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2024 - 25%)

366,732

68,794

Effects of:

Expenses not deductible for tax purposes

13,899

864

Income not taxable for tax purposes

(182

)

-

Capital allowances in excess of depreciation

(154,232

)

-

Depreciation in excess of capital allowances

-

95,470

Adjustments to tax charge in respect of previous periods

163,903

(42,498

)

Net chargeable gains

-

14,948

Deferred tax

304,942

(35,942

)

CT rate movement

-

(3,678

)

Pension accrual movement

91

815

Trade losses c/fwd

34,880

-

Amount written off investments

19,950

-

Gain on revaluation of tangible assets

(281,138

)

-

Total tax charge

468,845

98,773

10.

DIVIDENDS

28.2.25

29.2.24

£

£

Ordinary shares of £1 each

Interim

2,000

4,000

11.	TANGIBLE FIXED ASSETS

Improvements

Land &

to

Plant and

buildings

property

machinery

£

£

£

COST OR VALUATION

At 1 March 2024

3,841,963

239,040

2,145,006

Additions

449,453

-

1,701,137

Disposals

-

-

(751,946

)

Revaluations

1,017,085

-

-

At 28 February 2025

5,308,501

239,040

3,094,197

DEPRECIATION

At 1 March 2024

523,437

163,171

901,699

Charge for year

105,146

18,119

184,807

Eliminated on disposal

-

-

(167,808

)

Revaluation adjustments

(462,588

)

-

-

At 28 February 2025

165,995

181,290

918,698

NET BOOK VALUE

At 28 February 2025

5,142,506

57,750

2,175,499

At 29 February 2024

3,318,526

75,869

1,243,307