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Company registration number: 08234219

R & E Kingman & Son Limited

Filleted Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2018

 

R & E Kingman & Son Limited

Contents

Balance Sheet

1 to 2

Notes to the Financial Statements

3 to 13

 

R & E Kingman & Son Limited

(Registration number: 08234219)
Balance Sheet as at 31 March 2018

Note

2018
 £

(As restated)
2017
 £

Fixed assets

 

Intangible assets

5

15,548

18,657

Tangible assets

6

493,746

447,512

Biological assets

7

478,212

442,602

 

987,506

908,771

Current assets

 

Biological assets

7

63,088

82,345

Stocks

8

23,415

10,353

Debtors

9

115,948

73,896

 

202,451

166,594

Creditors: Amounts falling due within one year

10

(568,814)

(563,741)

Net current liabilities

 

(366,363)

(397,147)

Total assets less current liabilities

 

621,143

511,624

Creditors: Amounts falling due after more than one year

10

(265,027)

(281,240)

Provisions for liabilities

 

Deferred tax liabilities

 

(66,867)

(60,675)

Net assets

 

289,249

169,709

Capital and reserves

 

Called up share capital

100

100

Profit and loss reserve

289,149

169,609

Total equity

 

289,249

169,709

Page 1

 

R & E Kingman & Son Limited

(Registration number: 08234219)
Balance Sheet as at 31 March 2018

For the financial year ending 31 March 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.

Approved and authorised by the Board on 22 October 2018 and signed on its behalf by:
 


J R Kingman
Director

   

Page 2

 

R & E Kingman & Son Limited

Notes to the Financial Statements
for the Year Ended 31 March 2018

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Mary Street House
Mary Street
Taunton
Somerset
TA1 3NW

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

Prior period errors

Prior period errors are accounted for retrospectively by restating the comparative amounts for the prior period.

Turnover recognition

Turrnover comprises the fair value of the consideration recieved or recievable for the sale of milk, livestock and the receipt of government grants. Turnover is shown net of VAT and is recognised at the point of dispatch for the sale of milk and livestock and in the period to which the government grant relates.

Government grants

Income from government grants is recognised within turnover when the conditions for receipt have
been complied with and there is reasonable assurance that the grant will be received.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current 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 operates and generates taxable income.

Page 3

 

R & E Kingman & Son Limited

Notes to the Financial Statements
for the Year Ended 31 March 2018

Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation of tangible assets

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

5% straight line

Plant & Machinery

15% reducing balance

Biological non-current assets

Biological assets held for continuing use within the business are classified as fixed assets. Such assets are measured at cost less accumulated depreciation and impairment. Assets within the classification comprise of a dairy production herd.

Page 4

 

R & E Kingman & Son Limited

Notes to the Financial Statements
for the Year Ended 31 March 2018

Depreciation of biological non-current assets

Depreciation is charged so as to write off the cost of assets, less their estimated selling price less costs to sale, over their estimated useful economic life as follows:

Asset class

Depreciation method and rate

Dairy production herd

20% straight line basis

Biological current assets

Biological assets not held for continuing use within the business are classified as current assets. Such assets are measured at cost less accumulated impairment. Assets within this classification comprise of dairy followers and lambs.

Basic Payment Scheme

Basic payment scheme (BPS) entitlements are initially recognised at cost. Cost for originally granted BPS entitlements, is the fair value on transition to FRS102 and has been recognised through a debit to intangible assets and a credit to deferred income. Both purchased and granted entitlements are subsequently measured at cost less accumulated amortisation and impairment losses. For granted BPS, deferred income is released to the profit and loss as other operating income at the same rate at which the intangible asset is amortised.

Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual
value, over their useful life as follows:

Asset class

Amortistion method and rate

Basic Payment Scheme entitlements

8 years straight line

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks comprising deadstock such as feed, fertiliser and fuel are stated at the lower of cost and estimated selling price less costs to complete and sell.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Page 5

 

R & E Kingman & Son Limited

Notes to the Financial Statements
for the Year Ended 31 March 2018

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 5 (2017 - 5).

Page 6

 

R & E Kingman & Son Limited

Notes to the Financial Statements
for the Year Ended 31 March 2018

4

Prior period errors

On transition to FRS 102 Section 1a, the company omitted to recognise the change in classification and measurement of non-current and current biological assets and BPS entitlements as at 1 April 2015. The error has been corrected retrospectively and the effect on the line items of the financial statements are as follows:
 

Relating to the current period disclosed in these financical statements

Relating to the prior period disclosed in these financical statements

Relating to periods before the prior period disclosed in these financical statements

£

£

£

Intangible assets

15,548

18,657

21,766

Non-current biological assets

493,746

442,602

389,435

Fixed assets - Herd basis

493,746

449,644

389,435

Current biological assets

63,088

82,345

65,261

Stocks

63,088

82,345

65,261

Creditors: Amounts falling due with one year

15,548

18,657

21,766

Profit and loss reserve

-

7,043

-


Intangible assets

On transition to FRS 102 Section 1A, BPS entitlements of £24,875 were not recognised at the transition date in the 31 March 2017 financial statements. These entitlements have now been recognised in the comparative period at a fair value of £21,766 on 1 April 2016. After annual amortisation charges, the restated net book value as at 31 March 2017 and 2018 is £18,657 and £15,548 respectively. Current liabilities have also been restated to recognise a the corresponding entry to the above is a credit to deferred income, which is recognised within current liabilities, resulting in a nil impact on the net balance sheet position.

Non-current biological assets

On transition to FRS 102 Section 1A, non-current biological assets of £357,975 were incorrectly classified as stock. These biological
assets are now held at a value of £389,435, having been measured at cost less accumulated depreciation, on 1 April 2016. After reported movements in the year, the restated net book value as at 31 March 2017 and 2018 is £442,602 and £493,746 respectively.

The profit and loss reserve has also been restated to recognise the re-measurement of non-current biological assets in the prior year as well as the current year by £7,043.

Page 7

 

R & E Kingman & Son Limited

Notes to the Financial Statements
for the Year Ended 31 March 2018

Current biological assets

On transition to FRS 102 Section 1A, current biological assets of £75,325 were incorrectly classified as stock at the transition date. These biological assets have now been presented in the comparative period at cost of £65,261 on 1 April 2016.

5

Intangible assets

Basic payment scheme entitlements
 £

Total
£

Cost or valuation

At 1 April 2017

24,875

24,875

At 31 March 2018

24,875

24,875

Amortisation

At 1 April 2017

6,218

6,218

Amortisation charge

3,109

3,109

At 31 March 2018

9,327

9,327

Carrying amount

At 31 March 2018

15,548

15,548

At 31 March 2017

18,657

18,657

Basic Payment Scheme Entitlements

The amortisation charge for the year is recognised within depreciation in the profit and loss. Deferred income has been released to the profit and loss and is recognised as other operating income. The net effect in the profit and loss for the year is £Nil.

Page 8

 

R & E Kingman & Son Limited

Notes to the Financial Statements
for the Year Ended 31 March 2018

6

Tangible assets

Land and buildings
£

Plant and machinery
 £

Total
£

Cost or valuation

At 1 April 2017

144,139

434,463

578,602

Additions

2,070

135,890

137,960

Disposals

-

(41,750)

(41,750)

At 31 March 2018

146,209

528,603

674,812

Depreciation

At 1 April 2017

-

131,090

131,090

Charge for the year

7,311

62,622

69,933

Eliminated on disposal

-

(19,957)

(19,957)

At 31 March 2018

7,311

173,755

181,066

Carrying amount

At 31 March 2018

138,898

354,848

493,746

At 31 March 2017

144,139

303,373

447,512

Included within the net book value of land and buildings above is £138,898 (2017 - £144,139) in respect of short leasehold land and buildings.
 

Page 9

 

R & E Kingman & Son Limited

Notes to the Financial Statements
for the Year Ended 31 March 2018

7

Biological assets

Dairy herd
 £

Total non- current assets
£

Tillages
 £

Lambs
 £

Dairy followers
 £

Total current assets
£

Cost or valuation

At 1 April 2017

694,079

694,079

2,800

1,220

78,325

82,345

Purchases/transfers in

39,262

39,262

-

75

-

75

Sales/transfers out

-

-

-

-

(21,553)

(21,553)

New crop costs

-

-

5,021

-

-

5,021

Old crop harvested

-

-

(2,800)

-

-

(2,800)

At 31 March 2018

733,341

733,341

5,021

1,295

56,772

63,088

Depreciation

At 1 April 2017

251,477

251,477

-

-

-

-

Charge for the year

3,652

3,652

-

-

-

-

At 31 March 2018

255,129

255,129

-

-

-

-

Carrying amount

At 31 March 2018

478,212

478,212

5,021

1,295

56,772

63,088

At 31 March 2017

442,602

442,602

2,800

1,220

78,325

82,345

Page 10

 

R & E Kingman & Son Limited

Notes to the Financial Statements
for the Year Ended 31 March 2018

8

Stocks

2018
£

2017
£

Other stocks

23,415

10,353

9

Debtors

2018
 £

2017
 £

Trade debtors

99,317

68,834

Other debtors

16,631

5,062

Total current trade and other debtors

115,948

73,896

10

Creditors

Creditors: amounts falling due within one year

Note

2018
£

2017
£

Due within one year

 

Loans and borrowings

11

123,370

168,514

Trade creditors

 

94,196

48,947

Taxation and social security

 

1,738

1,555

Corporation tax

 

9,456

1,782

Other creditors

 

340,054

342,943

 

568,814

563,741

Due after one year

 

Loans and borrowings

11

265,027

281,240

Creditors: amounts falling due after more than one year

Note

2018
£

2017
£

Due after one year

 

Loans and borrowings

11

265,027

281,240

2018
£

2017
£

Due after more than five years

After more than five years by instalments

199,476

250,000

-

-

Page 11

 

R & E Kingman & Son Limited

Notes to the Financial Statements
for the Year Ended 31 March 2018

11

Loans and borrowings

2018
£

2017
£

Current loans and borrowings

Bank borrowings

9,600

-

Bank overdrafts

89,118

148,846

Obligations under finance leases and hire purchase contracts

24,652

19,668

123,370

168,514

2018
£

2017
£

Non-current loans and borrowings

Bank borrowings

237,876

250,000

Obligations under finance leases and hire purchase contracts

27,151

31,240

265,027

281,240

Bank borrowings and hire purchase contracts

Bank borrowings are secured against short leasehold land and buildings held by the company.
Obligations under hire purchase contracts are secured by fixed charges over assets to which they
relate, presented within 'plant and machinery'.

Loans and borrowings due in greater than five years

Included in the loans and borrowings are the following amounts due after more than five years:

2018
£

2017
£

After more than five years by instalments

199,476

250,000

Page 12

 

R & E Kingman & Son Limited

Notes to the Financial Statements
for the Year Ended 31 March 2018

12

Related party transactions

Other transactions with directors

J Kingman (Director and shareholder)

J Kingman maintain an interest free current account with the company which is unsecured and repayable on demand. At the balance sheet date the amount due to J Kingman was £151,763 (2017: £143,239)

R Kingman (Director and shareholder)

R Kingman maintain an interest free current account with the company which is unsecured and repayable on demand. At the balance sheet date the amount due to R Kingman was £59,468 (2017: £61,447)

E Kingman (Director and shareholder)

E Kingman maintain an interest free current account with the company which is unsecured and repayable on demand. At the balance sheet date the amount due to E Kingman was £104,589 (2017: £106,569)

Page 13