ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

FURROWS HOLDINGS LIMITED - Company Information

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Registered number: 03162759

FURROWS HOLDINGS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FURROWS HOLDINGS LIMITED

COMPANY INFORMATION

Directors	N I Coward
	B J Coward
	R M J Downey
	W E Downey
	V E Coward


Company secretary	N Burgess


Registered number	03162759


Registered office	The Shrewsbury Garage
	Benbow Business Park
	Harlescott Lane
	Shrewsbury
	Shropshire


Independent auditors	WR Partners
	Chartered Accountants & Statutory Auditors
	Belmont House
	Shrewsbury Business Park
	Shrewsbury
	Shropshire
	SY2 6LG

FURROWS HOLDINGS LIMITED

CONTENTS

	Page
Group strategic report	1 - 3
Directors' report	4 - 7
Independent auditors' report	8 - 12
Consolidated income statement	13
Consolidated statement of comprehensive income	14
Consolidated statement of financial position	15 - 16
Company statement of financial position	17 - 18
Consolidated statement of changes in equity	19 - 20
Company statement of changes in equity	21 - 22
Consolidated Statement of cash flows	23 - 24
Consolidated analysis of net debt	25
Notes to the financial statements	26 - 55

FURROWS HOLDINGS LIMITED

GROUP STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

Business review

In the year to 31 December 2022 the Group generated an operating profit before fair value movements and exceptional items of £4,465,577 from turnover of £104,679,022. This turnover was £11,884,679 higher than that achieved in 2021. The increase in gross profit of £2,478,645 was largely offset by an increase in administrative expenses of £1,717,545. This was due in the main to a return to a more normalised cost base post Covid and wage inflation.
Continued diversification within the Group and the motor dealership trade itself, combined with the significant contributions of a great number of people throughout the business, and strong partnerships, enabled a strong performance for the year.
The Group continues its strategy of reinvestment, with profits generated in the year being largely retained in the business. The financial statements report on a continuing period of consolidation with the net assets of the Group increasing to £30,146,088 (2021: £27,514,679). The Group's bank loans (all currently related to property outside the trading business) are due for renewal in August 2023 and which for timing reasons account for the movement from a net current asset position of £588,110 at 31 December 2021 to a net current liability position of £2,875,483 at 31 December 2022. The Group is in the process of consolidating existing loans into a new fixed long term loan with Barclays and expects the process to be completed within the coming weeks at which time the position will revert to net current assets.

Principal risks and uncertainties

The business activities, financial condition and trading results are subject to risk factors and uncertainties that the Directors keep under review. The Directors are of the opinion that principal risks and uncertainties facing the Group relate to general economic and market conditions, which influence cost, pricing and the demand for its products and services as well as supply.
Economic risks and uncertainties brought about by the Coronavirus pandemic and Brexit are also closely monitored by the Directors.
The Directors consider that the Group is well placed to continue in line with its business strategy.

Financial key performance indicators

The Group measures its financial performance and broader position by reference to key performance indicators. The key performance indicators used by the business include those relating to turnover, operating profit and net assets as referenced in the business review above.

Other key performance indicators

The Group uses a range of other KPI's to monitor and measure performance within the business on a regular basis. These cover the whole business and reflect its evolving nature. KPI’s cover diverse areas of the business such as customer service and productivity.

Page 1

FURROWS HOLDINGS LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Directors' statement of compliance with duty to promote the success of the Group

The board of directors consider, both individually and together, that they have acted in a 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 (having regard to the stakeholders and matters set out in s172(1)(a) (f) of the Act) in the decisions taken during the year ended 31 December 2022.
Decision making at the Board
The Directors meet on a regular basis. When making decisions which are in the best interests of the Company and the Group they consider any potential impacts and risks for our customers, employees (both current and former employees, by reference to the Furrows pension Scheme, and as a future significant employer within our communities) and other stakeholders including our partners, suppliers, the communities in which we operate, and serve, and the environment and how they are to be managed.
Stakeholders
Our key stakeholders are our employees, customers, partners, suppliers, finance providers and the communities in which we operate. We take a current and future view in relation to all such stakeholders.
Sustainability
Furrows is a family business in its widest sense, and we consider the “Furrows Family” to be of great significance. We are proud that it has now provided employment, training and financial reward for its employees and owners and benefits for a wide group of stakeholders for over 100 years. When making business decisions we consider the needs of our current and future customers, employees, suppliers and the communities in which we operate to ensure we are conducting all our business relationships with integrity, as well as ongoing responsibilities for previous staff. The continued sustainability of the Company and the wider Group is paramount in our decision making, particularly in response to the challenging economic conditions and the Coronavirus pandemic.
Employees
Our people are fundamental to the delivery of our business plans. We aim to be a responsible employer in our approach to the pay and benefits our people receive. The health, safety and well being of our team is one of our primary considerations in the way we do business. We place considerable value on the involvement of our employees and continue to keep them informed on matters affecting them.
Customers
Engagement with customers who form the community we serve is key to our success. We are proud of our award-winning customer service and ensure that this is maintained through customer satisfaction surveys, social media, focus group meetings and a dedicated customer service team.

Page 2

FURROWS HOLDINGS LIMITED

GROUP STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Partners and Suppliers
The Company operates a franchise business model in its motor trading subsidiary and therefore strong relationships with manufacturers is fundamental to what we do. We maintain regular communication with our key suppliers through regular reporting, conferences and councils.
Finance Providers
The Company seeks to make information available to financial stakeholders, including our relationship bank with whom we are proud to have had a strong relationship for over 100 years, as part of information provided about and by the Company and the Group.
Communities and environment
The Company and the Group aim to use their resources to create positive change for the communities and the environment in which we operate. We are very pleased to have recently been recognised by the British Chamber of Commerce as a 'UK Business Hero 2020' to recognise that we 'have gone the extra mile to support their local community during the Coronavirus outbreak'.
Business Conduct
The Board of Directors always strive to behave responsibly and ensure that the management of the Company and the Group operate the business in a responsible manner and with high standards of business conduct and governance.

This report was approved by the board and signed on its behalf.

................................................

N I Coward

Director

Date: 21 June 2023

Page 3

FURROWS HOLDINGS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2022

The Directors present their report and the financial statements for the year ended 31 December 2022.

Directors' responsibilities statement

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.

Company law requires the Directors to prepare financial statements for each financial yearr a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

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 judgements and accounting estimates that are reasonable and prudent;

∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

∙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.

Results and dividends

The profit for the year, after taxation, amounted to £3,051,909 (2021 - £7,837,936).

The have been dividends paid in the year of £350,000 (2021: £150,000).

Directors

The Directors who served during the year were:

N I Coward

B J Coward

R M J Downey

W E Downey

V E Coward

Page 4

FURROWS HOLDINGS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Financial instruments

The Group's operations expose it to a variety of financial risks that include credit risk, liquidity risk and interest rate risk. The Group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Group by monitoring levels of debt finance and the related finance costs.
Credit risk - The Group has implemented policies that require appropriate credit checks on potential customers where credit sales are made.
Liquidity risk - The Group actively maintains a mixture of long term and short term debt finance that is designed to ensure that it has sufficient available funds for operations and any planned expansions.
Interest rate cash flow risk - The Group has interest bearing liabilities in the form of bank and financing facilities. Interest cash flows are monitored on a regular basis and interest rates are agreed at fixed rates where possible to ensure the certainty of future interest cash flows.

Disabled employees

Applications for employment by disabled persons are fully considered, bearing in mind the respective aptitude and abilities of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that employment with the Group continues and that training, career development and promotion opportunities of disabled persons should as far as possible be identical to that of other employees.

Qualifying third party indemnity provisions

During the year, and at the date of signing this report, the Group maintained liability insurance and third party indemnification provisions for its Directors, under which the Group has agreed to indemnify the Directors to the extent permitted by law in respect of all liabilities to third parties arising out of, or in connection with, the execution of their powers, duties and responsibilities as Directors of the Company and any of its associated companies.

Page 5

FURROWS HOLDINGS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Greenhouse gas emissions, energy consumption and energy efficiency action

This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 January 2022 to 31 December 2022, pursuant to the Companies (Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government’s Streamlined Energy and Carbon Reporting (SECR) policy.

Our methodology to calculate our greenhouse gas emissions is based on the 'Environmental Reporting Guidelines: Including streamlined energy and carbon reporting guidance (March 2019)’ issued by DEFRA, using DEFRA's 2021 and 2022 conversion factors as appropriate. In some cases, consumption has been extrapolated from available data or direct comparison made to a comparable period.
We report using a financial control approach to define our organisational boundary. We have reported all material emission sources required by the regulations for which we deem ourselves to be responsible and have maintained records of all source data and calculations.
During the reporting period, investments have been made in further LED lighting and PIR sensors as well as destratification fans at Shrewsbury. Additionally, our energy management programme is ongoing at a number of sites, includign onitoring and taregted reporting of energy consumption on a daily basis. Through the service provided by our energy consultants, the energy management programme we run enables us to identify and address any consumption issues and when they arrive, allowing us to eliminate unnecessary energy waste.

Page 6

FURROWS HOLDINGS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

Matters covered in the Group Strategic Report

Disclosure of engagement with employees, suppliers, customers and others are included in the Strategic Report.
Future developments are also disclosed in the Strategic Report.

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:

∙so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

∙the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

The auditors, WR Partners, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

................................................

N I Coward

Director

Date: 21 June 2023

Page 7

FURROWS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FURROWS HOLDINGS LIMITED

Opinion

We have audited the financial statements of Furrows Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2022, which comprise the Group Income statement, the Group Statement of comprehensive income, the Group and Company Statements of financial position, the Group Statement of cash flows, the Group and 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 our opinion the financial statements:

∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2022 and of the Group's 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 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.

Page 8

FURROWS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FURROWS HOLDINGS LIMITED (CONTINUED)

Other information

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.

Opinion 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 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.

Matters on which we are required to report by exception

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.

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

∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

∙the parent Company 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.

Page 9

FURROWS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FURROWS HOLDINGS LIMITED (CONTINUED)

Responsibilities of Directors

As explained more fully in the Directors' responsibilities statement set out on page 4, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Directors are responsible for assessing the Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.

Page 10

FURROWS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FURROWS HOLDINGS LIMITED (CONTINUED)

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 an Auditors' 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 audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and the Group and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the Company and the Group are complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements.
We assessed the susceptibility of the Company and Group's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.

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 Auditors' report.

Page 11

FURROWS HOLDINGS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FURROWS HOLDINGS LIMITED (CONTINUED)

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 an Auditors' 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.

John Fletcher BA (Hons) FCA (Senior statutory auditor)

for and on behalf of

WR Partners

Chartered Accountants

Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG

Date: 21 June 2023

Page 12

FURROWS HOLDINGS LIMITED

CONSOLIDATED INCOME STATEMENT

FOR THE YEAR ENDED 31 DECEMBER 2022

	2022	2021
Note	£	£


Turnover	4	104,679,022	92,794,343
Cost of sales		(90,214,929)	(80,808,895)
Gross profit		14,464,093	11,985,448
Administrative expenses		(9,998,516)	(8,280,971)
Exceptional administrative expenses		-	(357,899)
Other operating income	5	-	342,355
Fair value movements		(55,723)	6,763,885
Operating profit		4,409,854	10,452,818
Income from other fixed asset investments		1,608	-
Amounts written off investments		-	(2)
Interest receivable and similar income	10	1,115	113
Interest payable and similar expenses	11	(539,523)	(453,930)
Other finance costs		(34,000)	(50,000)
Profit before tax		3,839,054	9,948,999
Tax on profit	13	(787,145)	(2,111,063)
Profit for the financial year		3,051,909	7,837,936

Profit for the year attributable to:
Owners of the parent	3,051,909	7,837,936
	3,051,909	7,837,936

The notes on pages 26 to 55 form part of these financial statements.

Page 13

FURROWS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2022

				2022	2021
				£	£

Profit for the financial year	3,051,909	7,837,936
Other comprehensive income
Unrealised surplus on revaluation of tangible fixed assets	-	2,960,004
Actuarial (loss)/gain on defined benefit schemes	(94,000)	1,663,000
Movement on deferred tax relating to pension gains/(losses)	23,500	(249,950)
Deferred tax on revaluation of freehold properties	-	(900,849)
Other comprehensive income for the year	(70,500)	3,472,205
Total comprehensive income for the year	2,981,409	11,310,141

Profit for the year attributable to:
Owners of the parent Company	3,051,909	7,837,936
	3,051,909	7,837,936

Total comprehensive income attributable to:
Owners of the parent Company	2,981,409	11,310,141
	2,981,409	11,310,141

The notes on pages 26 to 55 form part of these financial statements.

Page 14

FURROWS HOLDINGS LIMITED

REGISTERED NUMBER: 03162759

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022

		2022		2021
Note		£		£

Fixed assets
Tangible assets	17		15,964,883		16,062,455
Investments	18		175,405		179,179
Investment property	19		21,219,771		20,890,152
			37,360,059		37,131,786
Current assets
Stocks	20	16,500,217		16,832,159
Debtors: amounts falling due after more than one year	21	1,020,501		980,609
Debtors: amounts falling due within one year	21	2,877,594		2,440,347
Cash at bank and in hand	22	2,644,972		684,517
		23,043,284		20,937,632
Creditors: amounts falling due within one year	23	(25,918,767)		(20,349,522)
Net current (liabilities)/assets			(2,875,483)		588,110
Total assets less current liabilities			34,484,576		37,719,896
Creditors: amounts falling due after more than one year	24		-		(5,449,460)
Provisions for liabilities
Deferred taxation	26	(2,656,488)		(2,749,757)
			(2,656,488)		(2,749,757)
Net assets excluding pension liability			31,828,088		29,520,679
Pension liability			(1,682,000)		(2,006,000)
Net assets			30,146,088		27,514,679

Page 15

FURROWS HOLDINGS LIMITED

REGISTERED NUMBER: 03162759

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 DECEMBER 2022

		2022		2021
Note		£		£

Capital and reserves
Called up share capital	27	2,000	2,000
Revaluation reserve	28	7,290,720	7,290,720
Investment property reserve	28	6,041,968	6,093,917
Other reserves	28	(40,249)	(36,475)
Profit and loss account	28	16,851,649	14,164,517
Equity attributable to owners of the parent Company		30,146,088	27,514,679
		30,146,088	27,514,679

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

N I Coward

Director

Date: 21 June 2023

The notes on pages 26 to 55 form part of these financial statements.

Page 16

FURROWS HOLDINGS LIMITED

REGISTERED NUMBER: 03162759

COMPANY STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER 2022

		2022		2021
Note		£		£

Fixed assets
Tangible assets	17		15,660,812		15,668,805
Investments	18		4,641,131		4,641,131
Investment Property	19		21,219,771		20,890,152
			41,521,714		41,200,088
Current assets
Stocks	20	93,453		738,450
Debtors: amounts falling due within one year	21	166,580		1,470,461
		260,033		2,208,911
Creditors: amounts falling due within one year	23	(15,800,549)		(12,618,408)
Net current liabilities			(15,540,516)		(10,409,497)
Total assets less current liabilities			25,981,198		30,790,591

Creditors: amounts falling due after more than one year	24		-		(5,449,460)
Provisions for liabilities
Deferred taxation	26	(2,656,488)		(2,749,757)
			(2,656,488)		(2,749,757)
Net assets			23,324,710		22,591,374

Page 17

FURROWS HOLDINGS LIMITED

REGISTERED NUMBER: 03162759

COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)

AS AT 31 DECEMBER 2022

	2022	2021
Note	£	£

Capital and reserves
Called up share capital	27		2,000		2,000
Revaluation reserve	28		7,290,720		7,290,720
Investment property reserve	28		6,041,968		6,093,917
Profit and loss account brought forward		9,204,737		8,360,107
Profit for the year		1,083,336		5,803,539
Other changes in the profit and loss account		(298,051)		(4,958,909)
Profit and loss account carried forward			9,990,022		9,204,737
			23,324,710		22,591,374

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

N I Coward

Director

Date: 21 June 2023

The notes on pages 26 to 55 form part of these financial statements.

Page 18

FURROWS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2022

	Called up share capital	Revaluation reserve	Investment property revaluation reserve	Other reserves	Profit and loss account	Total equity
	£	£	£	£	£	£
At 1 January 2022	2,000	7,290,720	6,093,917	(36,475)	14,164,517	27,514,679
Comprehensive income for the year
Profit for the year	-	-	-	-	3,051,909	3,051,909
Actuarial losses on pension scheme	-	-	-	-	(70,500)	(70,500)
Other comprehensive income for the year	-	-	-	-	(70,500)	(70,500)
Total comprehensive income for the year	-	-	-	-	2,981,409	2,981,409
Contributions by and distributions to owners
Dividends: Equity capital	-	-	-	-	(350,000)	(350,000)
Transfer to/from profit and loss account	-	-	-	(3,774)	55,723	51,949
Transfer between other reserves	-	-	(51,949)	-	-	(51,949)
Total transactions with owners	-	-	(51,949)	(3,774)	(294,277)	(350,000)
At 31 December 2022	2,000	7,290,720	6,041,968	(40,249)	16,851,649	30,146,088

The notes on pages 26 to 55 form part of these financial statements.

Page 19

FURROWS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2021

	Called up share capital	Revaluation reserve	Investment property revaluation reserve	Other reserves	Profit and loss account	Total equity
	£	£	£	£	£	£
At 1 January 2021	2,000	6,516,573	-	(47,234)	9,883,199	16,354,538
Comprehensive income for the year
Profit for the year	-	-	-	-	7,837,936	7,837,936
Actuarial gains on pension scheme	-	-	-	-	1,413,050	1,413,050
Surplus on revaluation of freehold property	-	2,960,004	-	-	-	2,960,004
Deferred tax on revaluations	-	(900,849)	-	-	-	(900,849)
Other comprehensive income for the year	-	2,059,155	-	-	1,413,050	3,472,205
Total comprehensive income for the year	-	2,059,155	-	-	9,250,986	11,310,141
Contributions by and distributions to owners
Dividends: Equity capital	-	-	-	-	(150,000)	(150,000)
Transfer to/from profit and loss account	-	-	-	10,759	(4,819,668)	(4,808,909)
Transfer between other reserves	-	(1,285,008)	6,093,917	-	-	4,808,909
Total transactions with owners	-	(1,285,008)	6,093,917	10,759	(4,969,668)	(150,000)
At 31 December 2021	2,000	7,290,720	6,093,917	(36,475)	14,164,517	27,514,679

The notes on pages 26 to 55 form part of these financial statements.

Page 20

FURROWS HOLDINGS LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2022

	Called up share capital	Revaluation reserve	Investment property revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2022	2,000	7,290,720	6,093,917	9,204,737	22,591,374
Comprehensive income for the year
Profit for the year	-	-	-	1,083,336	1,083,336
Other comprehensive income for the year	-	-	-	-	-
Total comprehensive income for the year	-	-	-	1,083,336	1,083,336
Contributions by and distributions to owners
Dividends: Equity capital	-	-	-	(350,000)	(350,000)
Transfer to/from profit and loss account	-	-	-	51,949	51,949
Transfer between other reserves	-	-	(51,949)	-	(51,949)
Total transactions with owners	-	-	(51,949)	(298,051)	(350,000)
At 31 December 2022	2,000	7,290,720	6,041,968	9,990,022	23,324,710

The notes on pages 26 to 55 form part of these financial statements.

Page 21

FURROWS HOLDINGS LIMITED

COMPANY STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2021

	Called up share capital	Revaluation reserve	Investment property revaluation reserve	Profit and loss account	Total equity
	£	£	£	£	£
At 1 January 2021	2,000	6,516,573	-	8,360,107	14,878,680
Comprehensive income for the year
Profit for the year	-	-	-	5,803,539	5,803,539
Surplus on revaluation of freehold property	-	2,960,004	-	-	2,960,004
Deferred tax on revaluations	-	(900,849)	-	-	(900,849)
Total comprehensive income for the year	-	2,059,155	-	5,803,539	7,862,694
Contributions by and distributions to owners
Dividends: Equity capital	-	-	-	(150,000)	(150,000)
Transfer to/from profit and loss account	-	-	-	(4,808,909)	(4,808,909)
Transfer between other reserves	-	(1,285,008)	6,093,917	-	4,808,909
Total transactions with owners	-	(1,285,008)	6,093,917	(4,958,909)	(150,000)
At 31 December 2021	2,000	7,290,720	6,093,917	9,204,737	22,591,374

The notes on pages 26 to 55 form part of these financial statements.

Page 22

FURROWS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2022

			2022	2021
			£	£

Cash flows from operating activities
Profit for the financial year	3,051,909	7,837,936
Adjustments for:
Depreciation of tangible assets	181,774	310,513
Impairments of fixed assets	-	357,899
Profit on disposal of tangible assets	-	(129,671)
Interest paid	539,523	453,930
Interest received	(1,115)	(113)
Taxation charge	787,145	2,111,393
Decrease/(increase) in stocks	331,942	(1,300,596)
(Increase)/decrease in debtors	(656,406)	446,767
Increase/(decrease) in creditors	2,178,590	(2,163,858)
Net fair value losses/(gains) recognised in P&L	55,723	(6,763,885)
Corporation tax (paid)	(621,539)	(23,788)
(Decrease) in net pension assets/liabilities	(418,000)	(286,000)
Net cash generated from operating activities	5,429,546	850,527

Cash flows from investing activities
Purchase of tangible fixed assets	(97,356)	(107,337)
Sale of tangible fixed assets	13,154	24,000
Purchase of investment properties	(381,568)	(991,816)
Sale of investment properties	-	179,189
Interest received	1,115	113
Net cash from investing activities	(464,655)	(895,851)
Cash flows from financing activities
Repayment of loans	(1,787,322)	(1,071,816)
Dividends paid	(350,000)	(150,000)
Interest paid	(539,523)	(453,930)
Net cash used in financing activities	(2,676,845)	(1,675,746)
Net increase/(decrease) in cash and cash equivalents	2,288,046	(1,721,070)
Cash and cash equivalents at beginning of year	(717,169)	1,003,901
Cash and cash equivalents at the end of year	1,570,877	(717,169)

Cash and cash equivalents at the end of year comprise:

Page 23

FURROWS HOLDINGS LIMITED

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2022

		2022	2021
		£	£

Cash at bank and in hand	2,644,972	684,517
Bank overdrafts	(1,074,095)	(1,401,686)
	1,570,877	(717,169)

The notes on pages 26 to 55 form part of these financial statements.

Page 24

FURROWS HOLDINGS LIMITED

CONSOLIDATED ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2022


At 1 January 2022	Cash flows	Other non-cash changes	At 31 December 2022
£	£	£	£

Cash at bank and in hand	684,517	1,960,455	-	2,644,972
Bank overdrafts	(1,401,686)	327,591	-	(1,074,095)
Debt due after 1 year	(5,449,460)	-	5,449,460	-
Debt due within 1 year	(5,504,314)	1,787,322	(5,449,460)	(9,166,452)
	(11,670,943)	4,075,368	-	(7,595,575)

The notes on pages 26 to 55 form part of these financial statements.

Page 25

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

1.	General information

Furrows Holdings Limited is a limited liability company which is incorporated in England. The registered office is disclosed on the Company Information page.
The principal activities of the Group are the sales of motor vehicles and associated activities, property development and rental and the provision of finance.

2.Accounting policies

2.1

Basis of preparation of financial statements

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 judgement 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 Income statement in these financial statements.

The following principal accounting policies have been applied:

2.2

Basis of consolidation

The consolidated financial statements present the results of Group and its own subsidiaries ("the Group") as they formed 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 Balance sheet, 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 profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.

2.3

Going concern

In assessing the appropriateness of the going concern basis in preparing the accounts the Directors have considered the current financial position of the Group along with detailed forecasts for the 12 months from the date of signing these accounts.
In reviewing the forecasts the Directors have considered, as always, the finance facilities which are with our 100 plus years bankers, Barclays. The Group's bank loans (all currently related to property outside the trading business) are due for renewal in August 2023 and which for timing reasons accounts for the movement from a net current asset position of £588,110 at 31 December 2021 to a net current liability position of £2,875,483 at 31 December 2022. The Group is in the process of consolidating existing loans into a new fixed long term loan with Barclays and expects the process to be completed within the coming weeks at which time the position will revert to net current assets.
The Directors consider that the Group is well positioned for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial statements.

Page 26

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Group has transferred the significant risks and rewards of ownership to the buyer;

∙the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

∙the amount of revenue can be measured reliably;

∙it is probable that the Group will receive the consideration due under the contract;

∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and

∙the costs incurred and the costs to complete the contract can be measured reliably.

2.5

Tangible fixed assets

Tangible fixed assets under the cost model 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.

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Page 27

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.5

Tangible fixed assets (continued)

Depreciation is provided on the following basis:

Freehold property (including property under construction)	-	Not depreciated
Plant, machinery and office equipment	-	10 -25%
Fixtures & Fittings	-	20%
Hire Vehicles	-	20 - 42%

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.
The Directors are of the opinion that the residual values of the properties are such that no depreciation is required.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated profit and loss account.

2.6

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

2.7

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Page 28

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.8

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Unlisted investments held as fixed assets are shown at cost less provision for impairment.
Listed investments held as fixed assets are shown at market value. Permanent diminuations in value are taken to the profit and loss account. Temporary changes in market value are taken to a revaluation reserve.

2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Work in progress and finished goods include labour and attributable overheads.

2.11

Consignment stocks

Consignment vehicles that are regarded effectively as being under the control of the company due to the transfer of the risks and responsibilities, are included within new vehicles stocks on the balance sheet, although legal title has not passed to the company. The corresponding liability is included within trade creditors and is secured directly on these vehicles.

2.12

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 29

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.14

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated income statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.16

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 30

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.17

Pensions

Defined contribution pension plan

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.

Defined benefit pension plan

The Group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Statement of financial position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

Page 31

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2.19

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.20

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.21

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

Page 32

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

2.22

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and

∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

2.23

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

3.	Judgements in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. In the opinion of the Directors there are no 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.

Page 33

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

Motor dealership and related activities	101,880,112	91,631,677
Property development and rental	2,798,910	1,162,666
	104,679,022	92,794,343

All turnover arose within the United Kingdom.

5.	Other operating income
		2022	2021
		£	£

Government grants receivable	-	342,355
	-	342,355

Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements	34,950	32,700
Fees payable to the Company's auditors and their associates in respect of:
Preparation of financial statements and corporation tax returns	10,400	9,800

Page 34

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

7.	Employees
	Staff costs, including Directors' remuneration, were as follows:

Group	Group	Company	Company
2022	2021	2022	2021
£	£	£	£


Wages and salaries	8,272,917	7,094,220	12,740	391,874
Social security costs	370,828	709,922	42,027	56,541
Staff pension current service costs (DB)	181,000	164,000	-	-
Cost of defined contribution scheme	153,263	129,780	4,731	4,124
	8,978,008	8,097,922	59,498	452,539

The average monthly number of employees, including the Directors, during the year was as follows:

	Group	Group	Company	Company
	2022	2021	2022	2021
	No.	No.	No.	No.

Sales	111	141	13	14
Technicians and workshop	115	102	-	-
Administration	70	53	-	-

	296	296	13	14

8.	Directors' remuneration
		2022	2021
		£	£

Directors' emoluments	453,075	423,812
Group contributions to defined contribution pension schemes	2,860	2,857
	455,935	426,669

	During the year retirement benefits were accruing to 4 Directors (2021 - 3) in respect of defined contribution pension schemes.
	The highest paid Director received remuneration of £200,000 (2021 - £133,100).
	The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £NIL (2021 - £NIL).

Page 35

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

9.	Income from investments
		2022	2021
		£	£

Income from current asset investments	1,608	-
	1,608	-

10.	Interest receivable
		2022	2021
		£	£

	Other interest receivable	1,115	113
		1,115	113

11.	Interest payable and similar expenses
		2022	2021
		£	£

Bank interest payable	359,684	300,745
Other interest payable	36,158	2,087
Vehicle stocking interest	143,681	151,098
	539,523	453,930

12.	Other finance costs
		2022	2021
		£	£

Interest income on pension scheme assets	300,000	191,000
Interest on pension scheme obligation	(334,000)	(241,000)
	(34,000)	(50,000)

Page 36

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

Corporation tax
Current tax on profits for the year	677,647	621,539
Adjustments in respect of previous periods	-	727
	677,647	622,266

Total current tax	677,647	622,266

Deferred tax
Origination and reversal of timing differences	76,032	1,406,214
Changes to tax rates	33,466	82,583
Total deferred tax	109,498	1,488,797


	Taxation on profit on ordinary activities	787,145	2,111,063

Page 37

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

13.Taxation (continued)

Profit on ordinary activities before tax

3,839,054

9,948,999

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)	729,420	1,890,310
Effects of:
Fixed asset differences	8,520	299,003
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	9,870	-
Adjustments to tax charge in respect of prior periods	-	727
Short term timing difference leading to an increase (decrease) in taxation	5,869	-
Pension scheme movements	-	(54,340)
Book profit on chargeable assets	-	(24,637)
Change in tax rates	33,466	-
Total tax charge for the year	787,145	2,111,063

Factors that may affect future tax charges

The pension payments made during the year have reduced the pension deficit provision, whilst interest on the scheme's assets and liabilities have been charged to the Statement of Comprehensive Income. For corporation tax purposes it is only the pension payments made that are deductible for tax purposes.
From 1 April 2023, the main rate of Corporation Tax increased from 19% to 25% for companies in the United Kingdom with profits exceeding £250,000. As a result, deferred tax balances at 31 December 2022 have been calculated at 25%.

Page 38

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

14.	Dividends
		2022	2021
		£	£

	Dividends paid on ordinary shares	350,000	150,000
		350,000	150,000

15.	Exceptional items
		2022	2021
		£	£

	Impairment of property under construction	-	357,899
		-	357,899

16.	Fair value movements
		2022	2021
		£	£


Revaluation of listed investments	(3,774)	10,759
Revaluation of investment properties	(51,949)	6,753,126
	(55,723)	6,763,885

Page 39

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

17.	Tangible fixed assets
	Group

	Freehold property	Property under construction	Plant, machinery and office equipment	Motor Vehicles	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2022	15,133,527	874,794	3,143,624	256,712	19,408,657
Additions	-	5,978	91,378	-	97,356
Disposals	-	(13,154)	-	-	(13,154)
At 31 December 2022	15,133,527	867,618	3,235,002	256,712	19,492,859
Depreciation
At 1 January 2022	-	357,899	2,731,591	256,712	3,346,202
Charge for the year on owned assets	-	-	181,774	-	181,774
At 31 December 2022	-	357,899	2,913,365	256,712	3,527,976
Net book value
At 31 December 2022	15,133,527	509,719	321,637	-	15,964,883
At 31 December 2021	15,133,527	516,895	412,033	-	16,062,455

The land and buildings were revalued on 31 December 2021 by Berrys, on an open market basis. Berrys are members of the Royal Institute of Chartered Surveyors. The Directors do not consider that it has materially changed in value since that date.

Page 40

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

17.Tangible fixed assets (continued)

	Company

	Freehold property	Fixtures & Fittings	Assets Under Construction	Total
	£	£	£	£
Cost or valuation
At 1 January 2022	15,133,527	35,352	874,794	16,043,673
Additions	-	5,676	5,978	11,654
Disposals	-	-	(13,154)	(13,154)
At 31 December 2022	15,133,527	41,028	867,618	16,042,173
Depreciation
At 1 January 2022	-	16,969	357,899	374,868
Charge for the year on owned assets	-	6,493	-	6,493
At 31 December 2022	-	23,462	357,899	381,361
Net book value
At 31 December 2022	15,133,527	17,566	509,719	15,660,812
At 31 December 2021	15,133,527	18,383	516,895	15,668,805

Page 41

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

18.	Fixed asset investments
	Group

	Listed Investments	Unlisted Investments	Total
	£	£	£
Cost or valuation
At 1 January 2022	46,583	132,596	179,179
Revaluations	(3,774)	-	(3,774)
At 31 December 2022	42,809	132,596	175,405

	Company

	Investments in Subsidiary Companies	Unlisted Investments	Total
	£	£	£
Cost or valuation
At 1 January 2022	4,518,535	122,596	4,641,131
At 31 December 2022	4,518,535	122,596	4,641,131

Subsidiary undertakings
The following were subsidiary undertakings of the Company:
Name	Principal activity	Class of shares	Holding

Furrows Limited	Motor dealers	Ordinary	100%
Security Investments (Industrial) Limited	Finance house	Ordinary	100%
Furrows Properties Limited	Property development	Ordinary	100%

Furrows Properties Limited is exempt from the requirements of the Act relating to the audit of individual accounts by virtue of S479A of the Companies Act 2006. As part of the requirements of fulfilling the exemption requirements Furrows Holdings Limited has provided the Company with a S479C guarantee.

Page 42

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

19.	Investment property
	Group

		Freehold investment property
		£
	Valuation
	At 1 January 2022	20,890,152
	Additions at cost	381,568
	Surplus on revaluation	(51,949)
	At 31 December 2022	21,219,771

The 2022 valuations were made by the Directors, on an open market value for existing use basis.

	Company

		Freehold investment property
		£
	Valuation
	At 1 January 2022	20,890,152
	Additions at cost	381,568
	Surplus on revaluation	(51,949)
	At 31 December 2022	21,219,771

The 2022 valuations were made by the Directors, on an open market value for existing use basis.

Page 43

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

20.	Stocks
		Group	Group	Company	Company
		2022	2021	2022	2021
		£	£	£	£

New and used vehicle stocks	13,752,332	13,871,205	-	-
Demo Vehicles	1,776,477	1,392,144	-	-
Development stock and work in progress	1,600	638,473	1,600	638,473
Parts, accessories and forecourt stock	969,808	930,337	91,853	99,977
	16,500,217	16,832,159	93,453	738,450

	The difference between purchase price or production cost of stocks and their replacement cost is not material.
	Included within new vehicle stock is £7,111,890 (2021 - £7,275,954) in relation to consignment stock. A corresponding liability is included within trade creditors in relation to these vehicles

21.	Debtors
		Group	Group	Company	Company
		2022	2021	2022	2021
		£	£	£	£

Due after more than one year
Trade debtors	1,020,501	980,609	-	-
	1,020,501	980,609	-	-

Group	Group	Company	Company
2022	2021	2022	2021
£	£	£	£

Due within one year
Trade debtors	1,712,726	1,274,317	112,600	60,396
Amounts owed by group undertakings	-	-	5,023	1,255,834
Other debtors	469,850	322,441	7,662	6,852
Prepayments and accrued income	274,518	243,822	41,295	49,112
Deferred taxation	420,500	599,767	-	98,267
	2,877,594	2,440,347	166,580	1,470,461

Page 44

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

22.	Cash and cash equivalents
		Group	Group	Company	Company
		2022	2021	2022	2021
		£	£	£	£

Cash at bank and in hand	2,644,972	684,517	-	-
Less: bank overdrafts	(1,074,095)	(1,401,686)	(1,057,777)	(1,385,060)
	1,570,877	(717,169)	(1,057,777)	(1,385,060)

23.	Creditors: Amounts falling due within one year
		Group	Group	Company	Company
		2022	2021	2022	2021
		£	£	£	£

Vehicle stocking loans	2,606,703	3,737,310	-	-
Bank overdrafts	1,074,095	1,401,686	1,057,777	1,385,060
Bank loans	6,559,749	1,767,004	5,309,749	517,004
Trade creditors	10,925,086	9,140,171	57,024	109,263
Amounts owed to group undertakings	-	-	8,258,829	9,574,779
Corporation tax	579,155	523,047	166,974	85,138
Other taxation and social security	1,461,902	904,214	52,610	21,714
Other creditors	917,520	787,980	772,796	739,976
Accruals and deferred income	1,794,557	2,088,110	124,790	185,474
	25,918,767	20,349,522	15,800,549	12,618,408

Secured loans
The bank loans and overdrafts are secured by fixed and floating charges on certain freehold properties and other named assets belonging to the Group.
Other balances of £8,933,417 (2021 - £7,979,811) included within trade creditors and stocking loans of £2,606,703 (2021 - £3,737,310) are secured over certain stocks of the Company.

Page 45

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

24.	Creditors: Amounts falling due after more than one year
		Group	Group	Company	Company
		2022	2021	2022	2021
		£	£	£	£

Bank loans	-	5,449,460	-	5,449,460
	-	5,449,460	-	5,449,460

Secured loans
The bank loans are secured by fixed and floating charges on certain freehold properties and other named assets belonging to the Group.

25.	Loans

		Group	Group	Company	Company
		2022	2021	2022	2021
		£	£	£	£

Amounts falling due within one year
Bank loans	6,559,749	1,767,004	5,309,749	517,004
Vehicle stocking loans	2,606,703	3,737,310	-	-
	9,166,452	5,504,314	5,309,749	517,004
Amounts falling due 1-2 years
Bank loans	-	5,449,460	-	5,449,460
	-	5,449,460	-	5,449,460
Amounts falling due 2-5 years

	9,166,452	10,953,774	5,309,749	5,966,464

Page 46

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

25.Loans (continued)

Included within bank loans is a loan from Barclays of £2,435,000 being repaid in quarterly instalments. Interest is charged on the balance at 2.5% above the base rate per annum.
Also included within bank loans is a loan from Barclays of £1,175,000 being repaid in quarterly instalments. Interest is charged on the balance at 2.5% above the base rate per annum.
All bank loans are expected to be repaid in full in August 2023 and then subsequently renewed. Bank loans are secured by fixed and floating charges on certain freehold properties and other named assets belonging to the Group.
Vehicle stocking loans are repayable on demand and are secured by the assets to which they relate.

26.	Deferred taxation
	Group

		2022
		£

	At beginning of year	(2,149,990)
	Charged to profit or loss	(109,498)
	Charged to other comprehensive income	23,500
	At end of year	(2,235,988)

Page 47

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

26.Deferred taxation (continued)

Company

		2022
		£

	At beginning of year	(2,651,490)
	Charged to profit or loss	(4,998)
	At end of year	(2,656,488)

The deferred tax balance is made up as follows:
	Group	Group	Company	Company
	2022	2021	2022	2021
	£	£	£	£

Accelerated capital allowances	(274,695)	(269,697)	(274,695)	(269,697)
On revalued properties	(2,381,793)	(2,381,793)	(2,381,793)	(2,381,793)
Pension deficit	420,500	501,500	-	-
	(2,235,988)	(2,149,990)	(2,656,488)	(2,651,490)

Comprising:
Asset - due within one year	420,500	599,767	-	98,267
Liability	(2,656,488)	(2,749,757)	(2,656,488)	(2,749,757)
	(2,235,988)	(2,149,990)	(2,656,488)	(2,651,490)

Page 48

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

27.	Share capital
		2022	2021
		£	£

Allotted, called up and fully paid

1,000 (2021 - 1,000) Ordinary shares of £1.00 each	1,000	1,000
100 (2021 - 100) Ordinary A shares of £1.00 each	100	100
100 (2021 - 100) Ordinary B shares of £1.00 each	100	100
100 (2021 - 100) Ordinary C shares of £1.00 each	100	100
100 (2021 - 100) Ordinary D shares of £1.00 each	100	100
150 (2021 - 150) Ordinary E shares of £1.00 each	150	150
150 (2021 - 150) Ordinary F shares of £1.00 each	150	150
150 (2021 - 150) Ordinary G shares of £1.00 each	150	150
150 (2021 - 150) Ordinary H shares of £1.00 each	150	150

	2,000	2,000

Page 49

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

28.

Reserves

Revaluation reserve

The revaluation reserve represents unrealised gains and losses arising on the revaluation of the parent Company's investment property.

Investment property revaluation reserve

The investment property revaluation reserve represents non-distributable amounts relating to investment property revaluations net of deferred tax movements.

Other reserves

Other reserves represent unrealised gains and losses arising on the revaluation of the Group's investment in listed shares to fair value and a capital redemption reserve.

Profit & loss account

The profit and loss account represents the accumulated profits of the Group since incorporation less distributions made to shareholders.

29.	Contingent liabilities

The Company is a member of a group guarantee arrangement with Furrows Limited, Deemster Investment Trust Limited, Furrows Properties Limited and Security Investments (Industrial) Limited.
The Company is part of a Cross Guarantee arrangement with Furrows Limited, TPS (Shrewsbury) Limited, Motorhouse (Shrewsbury) Limited, Security Investments (Industrial) Limited and Deemster Investment Trust Limited. The guarantee unconditionally and irrevocably ensures that due and punctual payments to the Trustee are made in relation to the repayment of the Group's pension deficit recovery plan. The deficit of the pension scheme, as reported in Furrows Limited on an FRS 102 basis is £1,682,000 (2021 - £2,006,000).

Page 50

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

30.	Pension commitments

The Group operates a Defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £153,263 (2021 - £129,780).

The Group operates a Defined benefit pension scheme.

The Scheme provides benefits based on final salary and length of service on retirement, leaving service or death.
The Scheme is subject to the Statutory Funding Objective under the Pensions Act 2004. A valuation of the Scheme is carried out at least once every three years to determine whether the Statutory Funding Objective is met. As part of the process the Company must agree with the Trustees of the Scheme the contributions to be paid to meet the Statutory Funding Objective.
The most recent comprehensive actuarial valuation of the Scheme was carried out as at 5 April 2022 and the next valuation of the Scheme is due as at 5 April 2025. In the event that the next valuation reveals a larger deficit than expected the Group may be required to increase contributions above existing levels. Conversely, if the position is better than expected, it’s possible that contributions may be reduced.
The Group expects to pay contributions of £500,000 in the year to 31 December 2023.
The Scheme is managed by a board of Trustees appointed in part by the Group and part from elections by members of the Scheme. The Trustees have responsibility for obtaining valuations of the fund, administering benefit payments and investing the Scheme's assets. The Trustees delegate some of these functions to their professional advisers where appropriate.
The Scheme exposes the Group to a number of risks:
- Investment risk. The Scheme holds investments in asset classes, such as equities, which have volatile market values and while these assets are expected to provide real returns over the long-term the short term volatility can cause additional funding to be required if deficit emerges.
- Interest rate risk. The Scheme's liabilities are assessed using market yields on high quality corporate bonds to discount the liabilities. As the Scheme holds assets such as equities the value of the assets and liabilities may not move in the same way.
- Inflation risk. A significant proportion of the benefits under the Scheme are linked to inflation. Although the Scheme's assets are expected to provide a good hedge against inflation over the long term, movements over the short-term could lead to deficits emerging.
- Mortality risk. In the event that members live longer than assumed a deficit will emerge in the Scheme.
The effect of the judgment regarding equalisation of guaranteed minimum pensions for past transfers has been accounted for as a past service cost during the period.
There were no other plan amendments, curtailments or settlements during the period.

Page 51

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

30.Pension commitments (continued)

Reconciliation of present value of plan liabilities:
	2022	2021
	£	£

Reconciliation of present value of plan liabilities
At the beginning of the year	17,890,000	18,816,000
Interest cost	334,000	241,000
Actuarial gains/losses	(5,695,000)	(556,000)
Benefits paid	(608,000)	(611,000)
At the end of the year	11,921,000	17,890,000

Reconciliation of present value of plan assets:
	2022	2021
	£	£

At the beginning of the year	15,884,000	14,861,000
Current service cost	(181,000)	(164,000)
Interest income	300,000	191,000
Actuarial gains/losses	(5,789,000)	1,107,000
Contributions	633,000	500,000
Benefits paid	(608,000)	(611,000)
At the end of the year	10,239,000	15,884,000

Page 52

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

30.Pension commitments (continued)

Composition of plan assets:
	2022	2021
	£	£

UK Equities	30,000	-
Overseas Equities	21,000	6,137,000
Fixed Interest	2,519,000	2,806,000
Property	494,000	290,000
LDI Strategy/Hedge	(1,615,000)	2,124,000
Cash	688,000	1,394,000
Other	951,000	3,133,000
Multi Asset	5,153,000	-
Index-Linked gilts	1,998,000	-
Total plan assets	10,239,000	15,884,000

					2022	2021
					£	£

Fair value of plan assets	10,239,000	15,884,000
Present value of plan liabilities	(11,921,000)	(17,890,000)
Net pension scheme liability	(1,682,000)	(2,006,000)

The amounts recognised in profit or loss are as follows:
	2022	2021
	£	£

Current service cost	(181,000)	(164,000)
Interest on obligation	(334,000)	(241,000)
Interest income on plan assets	300,000	191,000
Total	(215,000)	(214,000)

Page 53

FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

30.Pension commitments (continued)

A comprehensive actuarial valuation of the company pension scheme, using the projected unit credit method, was carried out at 5 April 2019 by Barnett Waddingham LLP, independent consulting actuaries, Adjustments to the valuation at that date have been made based on the following assumptions:
	2022	2021
	%	%

	Discount rate		1.9
	Inflation assumption (RPI)		3.3
	Inflation assumption (CPI)		2.7
	Provision increases:
	Service from 6 April 1997 to 5 April 2006 (RPI max 5%)		3.2
	Service on or after 6 April 2006 (CPI max 2.5%)		2.2
	GMP benefits accrued after 5 April 1988 (CPI max 3%)		2.2
	Life expectancy at age 65 of male aged 45 (years)		22.3
	Life expectancy at age 65 of male aged 65 (years)		20.9
	Life expectancy at age 65 of female aged 45 (years)		24.7
	Life expectancy at age 65 of female aged 65 (years)		23.2
	Post retirement morality assumption		115% of S3PA tables with CMI 2018 projections and a long term rate of improvement of 1.25% p.a.
	Commutation		75% of members take the maximum cash

Surplus

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FURROWS HOLDINGS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

31.	Related party transactions
	Included in other creditors is £373,192 (2021 - £613,828) owed to Directors of group companies and their close family members. Interest was charged at a rate of 5.0% (2021 - 5.0%) per annum. Included within other debtors is an amount owed to Directors of group companies and their close family members of £NIL (2021 - £5,329).

32.	Controlling party

There is no individual ultimate controlling party of the Company.

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