The Directors present their strategic report for the year ended 31 March 2026.

Principal Activity

The principal activities of the Company include the operation of business parks, property investment, farming, construction, haulage, and the operation of a farm shop and online retail platform. In addition, the Company acts as the holding company for the Group.

The principal activities of the Group’s key trading subsidiaries include fishing operations in the South West of England, marina management, property investment and development, storage services, hospitality, and the generation and sale of renewable energy.

Fair Review of the Business

The Group delivered significant growth in turnover during the year, increasing from £73.1m to £83.6m despite a challenging and uncertain global economic environment. Operating profit and margin both improved compared with the prior year, driven by the exceptional performance of the fishing fleet, which benefited from the unprecedented octopus bloom and strong market prices across key species.

The Group continued to invest across its diverse portfolio of businesses, with significant investment in fishing assets, the anaerobic digestion (AD) plant, hospitality venues, Exmouth Marina and the continued development of the business park. The valuation of the property portfolio under FRS 102 also increased during the year, reflecting ongoing investment in the estate and the strong and consistent returns generated by the portfolio.

The farm shop continued to cultivate a diverse workforce, including highly skilled butchers and fishmongers, while providing opportunities for young people to learn and develop specialist skills. Against a challenging retail backdrop, the business continued to adapt and innovate by expanding its range of own-brand products and collaborating with local producers to develop distinctive offerings and events, strengthening both customer engagement and the farm shop’s local identity.

The farming operation continued to experience significant volatility in cattle prices during the year, with prices reaching unprecedented levels. While this had a positive impact on revenue from beef sales, it also resulted in higher input costs across the cattle enterprise. In parallel, the business remained focused on improving operational efficiency by undertaking a greater proportion of arable activities in-house, thereby reducing reliance on external contractors, lowering costs, and increasing the utilisation and productivity of its machinery assets.

Waterdance Limited continued to modernise the fishing fleet with the launch of a new-build whelker, the acquisition of an additional crabber, and the disposal of two beam trawlers and a day boat. The diverse composition of the fishing fleet, together with the fleet modernisation programme implemented in the previous financial year, enabled the business to capitalise on the largest surge in octopus numbers recorded in UK waters for 75 years. In addition, Waterdance Trading Limited, a wholly owned subsidiary of Waterdance Limited, was incorporated during the year and commenced trading. The business focuses primarily on the procurement and sale of shellfish and octopus, further enhancing the Group’s presence within the seafood supply chain.

The AD plant, operated by Willowglen Renewables Limited, continued to operate at full capacity throughout the year, strengthening the Group’s control over the availability and generation of renewable energy. Exmouth Marina Limited and Greendale Leisure Limited both benefited from further investment in their facilities, with refurbishment projects undertaken to enhance the customer experience and support future growth.

In May 2025, the Group expanded into the storage services sector through the acquisition of 100% of the issued share capital of Westexe Pallet Storage Holdings Limited and its wholly owned subsidiary, Westexe Pallet Storage Limited. The business specialises in providing secure and efficient short- and long-term pallet storage solutions to a diverse customer base, further broadening the Group’s range of services and revenue streams. 

Key Performance Indicators

The Company’s key performance indicators (KPIs) include turnover, gross profit and margin, gross and net assets, cash generation, and capital expenditure, including investment in new fixed assets and assets under construction. Performance against these KPIs is monitored regularly and reviewed against budget and prior year results, with benchmarking undertaken against comparable businesses where suitable data is available.

The Group’s key financial performance indicators during the year were as follows:

Future Activities of the Group

The Directors intend to continue operating the Group on a broadly consistent basis, with a focus on sustainable growth and the continued strengthening of the asset base. In addition to the ongoing day-to-day operations of the business, the Directors will continue to evaluate opportunities for future expansion, including acquisitions that enhance the Group’s profit-generating asset base.

On 1 April 2026, the Company acquired 100% of the issued share capital of Opus Group (UK) Limited and its wholly owned subsidiaries, Opus Plastics Limited and Extrusion Lines Limited.

On 16 April 2026, as part of a rebranding initiative, the Company renamed its storage services business from Westexe Pallet Storage Limited to Greendale Storage Limited.

On 21 May 2026, the Company incorporated Greendale SPV1 Limited, a wholly owned subsidiary. This entity acquired the approximately 89-acre Occombe Farm site from Torbay Council on 14 July 2026 and was subsequently renamed Greendale Occombe Farm Limited on 5 August 2026.

Principal Risks and Uncertainties

During the year ended 31 March 2026, the Group operated against a backdrop of significant global and UK macroeconomic uncertainty. Ongoing geopolitical tensions continued to disrupt global supply chains, contributing to volatility in material costs and increased operating expenses. Within the UK, elevated inflationary pressures resulted in a higher cost of living, influencing consumer spending patterns and demand across certain sectors. Inflation also led to increased input costs and wage pressures, creating additional challenges in attracting and retaining employees.

Interest rates remained at relatively elevated levels throughout the year, increasing the cost of servicing borrowings. In addition, fluctuations in foreign exchange rates, particularly movements in sterling against major currencies, affected the cost of repairs and refits undertaken overseas for the Group’s fishing fleet.

Despite these challenges, the Group’s diversified portfolio, disciplined strategic planning and proactive management approach enabled it to respond effectively to changing market conditions, maintaining operational resilience and financial stability throughout the year.

Performance across each business segment is closely monitored to identify emerging trends and address any industry-specific challenges at an early stage. The Group also actively manages its principal risks, including credit availability, liquidity, fuel costs, foreign exchange exposure and seasonal fluctuations, through regular reviews of borrowing levels, cash flow forecasts and operational performance.

Section 172 Statement

The Directors of F W S Carter & Sons Limited consider, both individually and collectively, that they have acted in the way they believe would be most likely to promote the success of the Group for the benefit of its members as a whole during the year ended 31 March 2026, having regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006 and the interests of the Group’s key stakeholders.

The Group’s core activities remained unchanged during the year. The Group’s strategy continues to centre on investment in its core operations with the objective of delivering long-term shareholder value. As a family-owned business with multiple generations actively engaged in its management, investment decisions are made with a long-term perspective and a focus on sustainable growth in equity value.

The Directors set the Group’s strategic priorities and approve an annual operating and capital expenditure budget each March, ensuring that investment decisions remain aligned with the Group’s long-term objectives and growth strategy.

Stakeholder Engagement

Our key stakeholders include our employees, customers, suppliers, shareholders and finance providers. We seek to build and maintain strong relationships with these groups through regular engagement, including meetings and discussions, and by providing appropriate updates on the Group’s financial performance, strategic priorities and future plans.

Employee Engagement

Throughout the year, we have actively engaged with our employees through a range of initiatives designed to support development, well-being and inclusion:

• Charitable Giving Committee: Comprised of employees from across the business, this committee is responsible for directing the Company’s charitable giving activities. By empowering employees to participate in the decision-making process, the initiative helps ensure that charitable contributions reflect the interests and values of our workforce. Each year, the Company typically supports one land-based and one sea-based charity, while also providing funding for charitable events involving individual employees.
• Social Committee: Dedicated to organising social and team-building events, the committee plays an important role in strengthening employee engagement, enhancing morale and encouraging greater collaboration across departments. These activities help foster a strong sense of community throughout the organisation.
• Project Ownership and Decision-Making: As a family-owned business, we encourage employees at all levels to take ownership of key projects and decisions that contribute to the achievement of our strategic objectives. This approach supports personal development and helps create a motivated and engaged workforce.
• Employee Recognition: We demonstrate our appreciation for employees’ hard work and commitment through a variety of benefits and opportunities, including complimentary tickets to county shows, rugby matches and football fixtures.
• Employee Well-being: To support the well-being of our workforce, we provide access to an employee assistance programme (EAP) offering a comprehensive range of virtual resources designed to support employees’ medical, mental, legal and financial well-being.

Through these initiatives, we seek to ensure that our employees feel valued, engaged and empowered, recognising that their contribution is fundamental to the Group’s long-term success.