STRATEGIC REPORT
The Directors present their strategic report for the year ended 31 March 2025.
Principal activity
The principal activities of the Company include the operation of business parks, real estate investments, farming, construction, haulage, and managing a farm shop with an associated online retail platform. The Company also functions as a holding company.
The principal activities of the Company’s main trading subsidiaries include fishing activities in the South West, management of Exmouth Marina, real estate investments and development, managing two hospitality venues, and the generation and sale of renewable energy.
fair Review of the business
The Group achieved significant growth in turnover despite ongoing global uncertainties, including the war in Ukraine and the cost of living crisis. Operating profit and margin declined compared to the prior year, driven by the strategic decision to focus on the long term success of the fishing business by implementing a large-scale fleet modernisation programme (which meant a number of boats were out of the water undergoing generational refits).
The Group continued to invest across various sectors, notably in fishing assets, the anaerobic digestion (AD) plant, hospitality venues, Exmouth Marina and further development of the business park. The FRS 102 valuation of the property portfolio remained positive, reflecting further investment and consistent strong returns.
The farm shop continued to foster a diverse workforce that includes highly skilled butchers and fishmongers, while actively promoting opportunities for young people to join and learn these valuable trades. Driven by the significant challenges faced by the retail landscape, the farm shop expanded its offering by developing own-branded products and engaging in innovative collaborations with local brands to create unique offerings and events.
The farm operation experienced significant volatility in cattle prices during the year, with prices reaching unprecedented highs; while this benefited beef sales, it also impacted the input cost of the cattle enterprise. Efforts were made to undertake more of the arable operation inhouse, as opposed to using external contractors, in a bid to maximise machinery efficiency.
Waterdance Limited increased the diversity of the fleet with the acquisition of two new multi-purpose scallop / beam trawlers, while disposing of two single-purpose stern trawlers. A significant refit and renewal program continued in the existing fleet, focusing on improvements in safety and fuel efficiency, through engine and propeller upgrades, while there were strategic purchases of new licences and quota.
The AD plant, operated by Willowglen Renewables Limited, is now running at full capacity, enhancing the Group’s control over the availability and productivity of renewable energy. Investments were made in a new feeder system, which has improved plant efficiency and supported long-term sustainability.
Exmouth Marina Limited and Greendale Leisure Limited both saw investments aimed at refurbishing facilities to enhance customer experience.
Key Performance Indicators of the Company and its subsidiaries
The Key Performance Indicators (KPIs) of the Company and its subsidiaries include turnover, gross profit and margin, costs, gross and net assets, cash generation and capital expenditure. These KPIs are reviewed against budget and prior year, with benchmarking against similar businesses where comparative information is available.
The group’s key financial performance indicators during the year were as follows:
Group turnover £'000 - 73,063 (year ended 31/3/2025) | 69,221 (year ended 31/3/2024)
Group profit before tax £'000 - 7,166 (year ended 31/3/2025) | 7,679 (year ended 31/3/2024)
Group fixed assets £'000 - 126,525 (year ended 31/3/2025) | 120,150 (year ended 31/3/2024)
Group net assets £'000 - 78,887 (year ended 31/3/2025 | 73,949 (year ended 31/3/2024)
Cash generated from operations £'000 - 11,786 (year ended 31/3/2025) | 10,747 (year ended 31/3/2024)
Capital expenditure £'000 - 8,192 (year ended 31/3/2025) | 6,585 (year ended 31/3/2024)
Future activities of the Group
The Directors intend to continue operating the Group on a consistent basis to the current year. In addition to the continuation and development of day to day operations, the Directors will continue to monitor opportunities for future growth, including further acquisitions which strengthen the Group’s profit generating asset base.
On 28 May 2025, the Company acquired 100% of the share capital of Westexe Pallet Storage Holdings Limited and its wholly owned subsidiary Westexe Pallet Storage Limited.
On 12 June 2025, Waterdance Trading Limited, a wholly owned subsidiary of Waterdance Limited, was incorporated and has commenced trading in the year to 31 March 2026.
On 23 September 2025, Exmouth Marina Limited completed the acquisition of The Exmouth Docks Company and a parcel of freehold land (including the marina basin).
Principal risks and uncertainties
During the year ended 31 March 2025, the Group was influenced by a range of significant global and UK macroeconomic factors. Global supply chain disruptions persisted, in part due to the ongoing war in Ukraine, causing volatility in material prices and increasing operational costs. Domestically, the UK continued to experience heightened inflation, leading to a higher cost of living which affected consumer spending and demand. High inflation also increased input costs and wage pressures, complicating staff attraction and retention.
Interest rates remained relatively high, in part to help curb inflation, which elevated the cost of servicing borrowings, while currency fluctuations, particularly the volatility of the pound against major currencies, impacted the cost of the fishing fleet’s repairs and refits undertaken overseas.
Despite these challenges, the Group's diversified portfolio, strategic planning, and proactive management enabled it to adapt effectively, maintaining operational resilience and financial stability throughout the year.
Each area of the business is closely monitored to identify any emerging performance issues within specific industries, enabling a prompt and effective response. In addition, primary group-wide risks related to credit availability, liquidity, fuel costs, exchange rate exposure and seasonal fluctuations are managed through regular reviews of borrowing levels and cash flow assessments.
Section 172 statement
The Board of Directors of F W S Carter & Sons Limited, who are also board members of each of the subsidiary undertakings of the Group, consider both individually and together that they have acted in the way they consider would be most likely to promote the success of the companies for the benefit of their members as a whole (having regard to the stakeholders and matters set out in s172 (1) (a-f) of the Act) during the year ended 31 March 2025.
The Group’s core activities remained unchanged during the year. The Group’s strategy continues to be to invest in its core activities to build shareholder value. The Group is a family owned business with multiple generations active in the business. As such, investment decisions are orientated to long term equity appreciation. The Group board sets and approves an annual operating and investment budget each March.
S172 STATEMENT
Silage Clamps Investment
Impact on long-term success of business: Minimises pollution risk, improves quality of feed stored, and increases the efficiency of both the farm and AD plant (by having all feed stored in one place).
Stakeholder considerations: Discussed implications of the upgraded silage clamps with shareholders and operational management.
AD Plant Feeder System Investment
Impact on long-term success of business: Enables manure from the cattle enterprise to be used in the digestion process, reducing grown crop cost and usage. This improves plant efficiency, supporting long-term sustainability.
Stakeholder considerations: Discussed implications of the new feeder system with shareholders and operational management.
Phased Renewal of the Waterdance Fleet
Impact on long-term success of business: Modernising the fleet enhances safety, environmental standards and operational efficiency, supporting long-term viability.
Stakeholder considerations: Consulted with shareholders, skippers and crew to ensure new vessels meet business needs and comply with latest standards. Monitored cash flow for financing needs, engaging with the bank as required.
Acquisition of Strategic Quota Packages and Fishing Licences
Impact on long-term success of business: Significant investment in strategic quota packages and licences ensures the ability to fish key species, supporting long-term sustainability and profitability.
Stakeholder considerations: Consulted with shareholders and skippers to verify strategic importance. Evaluated historical quota uptake and market value to ensure cost-effectiveness.
Waterdance Transition to Skilled Worker Visas
Impact on long-term success of business: Attracts and retains talent, contributing to sustainable growth. Collaboration with South Devon College to attract apprentices supports industry future.
Stakeholder considerations: Consulted with skippers and crew to ensure appropriate workers are brought in.
Implementation of New Accounting Systems
Impact on long-term success of business: New systems enhance governance, transparency and efficiency, supporting the group's growth and real-time information needs.
Stakeholder considerations: Consulted with finance and operational teams to ensure the best fit and to understand reporting and processing requirements.
Engagement WITH EmployeeS
Over the course of the year, we have actively engaged with our staff through the following initiatives:
Director Development Programme: We have identified future leaders within the organisation and have devised a leadership programme to engage, develop and promote internal talent. Currently, this programme is in its early stages and will be piloted with selected members of the senior management team over the coming year.
Charitable Giving Committee: Comprised of individuals from across the business, this committee controls decision-making for our charitable donations. Employees feel their views and interests are represented, promoting community and social responsibility. Each year, the Company usually supports one land-based and one sea-based charity, with additional funds allocated for charitable events involving individual employees.
Social Committee: Dedicated to organising team events to strengthen team morale and break down departmental barriers. These events foster connections among employees from different areas, building a stronger sense of community within our organisation.
Project Ownership and Decision-Making: As a family owned business, we provide employees at all levels the opportunity to take ownership of important projects and decisions integral to our business goals. This initiative helps individuals grow, develop and feel enthusiastic and engaged about their contributions.
Tangible Tokens of Appreciation: We express our gratitude by offering complimentary tickets to county shows, rugby and football events, demonstrating our appreciation for our employees' hard work.
Staff Well-being: To support employee well-being, we offer access to an employee well-being platform called WeCare. This service provides a comprehensive range of virtual resources designed to enhance the medical, mental, legal and financial well-being of our employees.
By implementing these initiatives, we ensure our employees are actively engaged, valued and integral to our long-term success.
Engagement with suppliers, customers and other relationships
Our key stakeholders are our employees, customers, suppliers, shareholders and finance providers. We have worked to build these relationships by meeting regularly and presenting our financial results and plans as appropriate.