K. Hughes & Co. Limited

The directors present their report and audited financial statements of the company for the year ended 31 December 2024. Principal activities The principal activity of the company during the year was that of growing, processing and marketing of mushrooms, general haulage, vegan food manufacture and rental income from investment properties. The company operates throughout the United Kingdom. Review of business and future developments Performance The directors consider the results for the current year and position of the company at year end to be satisfactory. The directors are committed to long term creation of shareholder value by increasing the company's market share through organic growth. The directors have plans in place to ensure the company is strongly placed to retain its market position. The company's result for the year is an operating loss of £7,742,995 (2023: £2,474,054 profit) and a loss on ordinary activities before taxation of £8,759,847 (2023: £1,606,887 profit). At the year end net assets of the company were £9,263,173 (2023: £18,098,907). Principal risks and uncertainties The company's performance is sensitive to any changes in interest rates, inflation, foreign exchange, stability of suppliers, competition from other suppliers, employee retention and consumer spending habits. With these risks and uncertainties in mind, the directors are aware that any plans for future development of the business may be subject to unforeseen future events outside of their control. The directors, however, focus on managing and mitigating these risks as part of the overall business strategy via strong customer service, not being overly reliant on one supplier and investment in people and facilities. Key performance indicators The key performance indicators that management monitored on a monthly basis during the period were: - Sales growth compared to prior year - Gross profit margins Environment The company recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible. Health and safety The company is committed to achieving the highest practical standards in health and safety management and strives to make all sites and offices safe environments for employees and customers alike. Human resources Management of the company recognises that its most important resource is its people; their knowledge and experience is crucial to meeting customer requirements. Retention of key staff is critical and the company has invested increasingly in employment training and development and has introduced appropriate incentive and career progression arrangements.