Company registration number 06740056 (England and Wales)
CORNTHWAITE INVESTMENTS (AG) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
CORNTHWAITE INVESTMENTS (AG) LIMITED
COMPANY INFORMATION
Directors
Mr S A Cornthwaite
Mr F A McKee
Mr B N Shield
(Appointed 31 January 2022)
Mr R Hughes
(Appointed 31 January 2022)
Mrs S Moran
(Appointed 31 January 2022)
Company number
06740056
Registered office
Hall Lane
Bispham Green
Ormskirk
L40 3SB
Auditor
MHA Moore and Smalley
Kendal House
Murley Moss Business Village
Oxenholme Road
Kendal
LA9 7RL
CORNTHWAITE INVESTMENTS (AG) LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 19
CORNTHWAITE INVESTMENTS (AG) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -

The directors present the strategic report for the year ended 31 December 2021.

Fair review of the business

The Company is a member of the Cornthwaite Holdings Group who hold the John Deere franchise for Cheshire, Lancashire, and Dumfries & Galloway. The franchise for Cheshire is predominantly covered by Agricultural Machinery (Nantwich) Limited from its outlet in Nantwich. Fellow subsidiary Cornthwaite Agricultural Limited covers the remaining area from outlets in Bispham Green, Kendal, Carlisle and Dumfries.

Turnover for the Company's subsidiary, Agricultural Machinery (Nantwich) Limited for year ended 31 December 2021 is slightly reduced at £23.7 million from £24.2 million for the previous year.

After a decrease to 4.8% in 2019, gross margin is stable at 5.6% for 2020 and 5.7% for 2021.

Profitability in the Group continues to be significantly impacted by the John Deere performance bonus (“P4P”) earned. In 2021, due to increased uncertainty and risk in forecasting this income based on market share percentage rather than unit sales, the Directors adopted the strategy to focus on operational margin retention and cost control whilst continuing to optimise the potential for market share realisation. The consequent short term reduction in P4P earned accounts entirely for the reduction in pre-tax profit from £670k in 2020 to £258k in 2021.

The key performance indicators of the business are turnover, gross profit and asset turn, all of which are monitored on a regular basis.

Whilst the Covid-19 pandemic continued to present challenges globally during 2021, the effect on the Agricultural sector continued to be less marked than in other sectors. The company ensure that the operations of the business are able to function effectively and have instigated measures to ensure the safety of staff and customers alike in their contact with the business.

CORNTHWAITE INVESTMENTS (AG) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Principal risks and uncertainties

In any entrepreneurial business there are risks and uncertainties that are faced; the assessment of that risk and the measures taken to mitigate it are integral to the strategic direction taken by the Directors.

The principal risks are considered to be:

Economic and market risks

Demand for the group’s products and services is affected by both wider economic cycles and conditions specific to the sectors in which the group operates. Although the group is active in a number of different market segments the majority of turnover is generated from the Agricultural sector.

As well as wider factors such as the outcome of the UK leaving the European Union and the alternative that will be proposed to the current subsidies available to the farming community, the market is also affected by factors such as commodity prices, themselves affected by factors such as global conflict and climate change.

To mitigate these risks, the intention is to operate in as many market sectors as possible whilst in the main sector of agriculture to deal with customers in diverse segments. To this end the expansion of the group’s territory means that a variety of operations and weather patterns are now encompassed in the group’s operational area.

Financial risk

The Group is exposed to risk as it entered a period of rapid expansion in 2017/18 and continues in the process of consolidating that expansion whilst managing the impact of the pandemic. Having robust reporting and communication frameworks with continued development of the Outlet and Group management teams alongside an enhanced Finance and Admin structure are all part of the Directors’ strategy to mitigate this risk.

The Company and Group have enjoyed a strong relationship with the Company’s Bankers, RBS Group, since the formation of the Group in 2007. The Bank has given strong support to all investment decisions since that time and has since the Balance Sheet date renewed the group’s facilities at the existing levels.

In order to minimise credit risk, the Group monitors and checks the credit ratings of customers and has in place an Aged Debt Committee, consisting of two Credit Controllers, two Directors and all Outlet Managers. Monthly meetings are held to review outstanding accounts and agree follow up actions to ensure a continued healthy ageing profile of Debtors.

During 2021 a revised cash management strategy was adopted whereby asset finance stocking loans provided by Lombard (via RBS relationship) and John Deere Financial have been more greatly utilised. This has resulted in a lower utilisation of the overdraft facilities and an improved ability to retail used machinery domestically. This in turn is resulting in strengthened margins and growth in aftersales opportunities. Additionally, the percentage of Group turnover derived from exports has fallen from 15% to 8% in the year because of this strategy. The minimal exposure to currency risk as virtually all sales are denominated in Sterling is therefore further reduced. The Group does not carry out any hedging activities.

Competitor risk

The Company and Group operate in a competitive marketplace and continue to invest in activities designed to lead in customer service and promote premium products and new technologies. The Directors monitor competitor financial performance, individual sales and market share in all of our leading franchises and employ marketing intelligence to monitor attraction and retention of our customer base.

Covid-19

Whilst the Covid-19 pandemic continued to present challenges globally during 2021, the effect on the Agricultural sector continued to be less marked than in other sectors. The company ensure that the operations of the business are able to function effectively and have instigated measures to ensure the safety of staff and customers alike in their contact with the business.

CORNTHWAITE INVESTMENTS (AG) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -

On behalf of the board

Mr S A Cornthwaite
Director
18 August 2022
CORNTHWAITE INVESTMENTS (AG) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2021.

Principal activities

The principal activity of the company during the period under review was that of a holding company. The principal activity of its trading subsidiary, Agricultural Machinery (Nantwich) Limited, is the supply of new and used agricultural machinery, together with the ancillary services of repair, maintenance and supply of spare parts.

Results and dividends

The results for the year are set out on page 10.

The directors do not recommend the payment of any dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S A Cornthwaite
Mr J E Ashe
(Resigned 7 May 2021)
Mr F A McKee
Mr B N Shield
(Appointed 31 January 2022)
Mr R Hughes
(Appointed 31 January 2022)
Mrs S Moran
(Appointed 31 January 2022)
Qualifying third party indemnity provisions

The Articles of Association of the Company permit the directors and officers of the company to be indemnified in respect of liabilities incurred as a result of their office. These include qualifying third party indemnity provisions (as defined where relevant by the Companies Act 1985 and the Companies Act 2006). These indemnities were adopted during February 2010 and remain in force.

Financial instruments
Financial risk management objectives and policies

The operations of the company’s subsidiary expose it to a variety of financial risks that include the effects of changes in debt market prices, credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs. The company does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.

 

Given the size of the company, the directors have not delegated the responsibility of monitoring the financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company’s finance department.

 

The directors will revisit the appropriateness of the policy should the company’s operation change size or nature.

Future developments

The directors intend to explore any future opportunities to expand the company’s customer base or its activities.

 

The company will receive income from its subsidiary in the form of dividends and the two trading companies in the Cornthwaite Holdings Group, namely Agricultural Machinery (Nantwich) Limited and Cornthwaite Agricultural Limited, will provide the necessary finance for the company to meet it’s obligations.

CORNTHWAITE INVESTMENTS (AG) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
Auditor

In accordance with the company's articles, a resolution proposing that MHA Moore and Smalley be reappointed as auditor of the company will be put at a General Meeting.

Energy and carbon report

As the company is the subsidiary in a large group, its emissions, energy consumption and energy efficiency activities are included within the report included in the accounts of the parent entity of the group, Cornthwaite Holdings Limited.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Taxation Status

The company was a close company within the provision of the Corporation Tax Act 2010 and this position has not changed since the end of the financial year.

On behalf of the board
Mr S A Cornthwaite
Director
18 August 2022
CORNTHWAITE INVESTMENTS (AG) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -

The directors are responsible for preparing the Directors' Report and the accounts in accordance with applicable law and regulations.

 

Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the accounts unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing those accounts, the directors are required to:

 

- select suitable accounting policies and then apply them consistently;

 

- make judgements and estimates that are reasonable and prudent;

 

- prepare the accounts on the going concern basis unless it is appropriate to presume that the company 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 enable them to ensure that the accounts comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

In so far as the directors are aware:

 

- there is no relevant audit information of which the company's auditor is unaware; and

 

- the directors have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is well aware of that information.

CORNTHWAITE INVESTMENTS (AG) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CORNTHWAITE INVESTMENTS (AG) LIMITED
- 7 -
Opinion

We have audited the financial statements of Cornthwaite Investments (Ag) Limited (the 'company') for the year ended 31 December 2021 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

CORNTHWAITE INVESTMENTS (AG) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CORNTHWAITE INVESTMENTS (AG) LIMITED
- 8 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 auditor's 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 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below:

CORNTHWAITE INVESTMENTS (AG) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CORNTHWAITE INVESTMENTS (AG) LIMITED
- 9 -

Because of the industry in which the company operates, we identified the following areas as those most likely to have a material impact on the financial statements: health and safety, compliance with quality management systems accreditations, employment law, and compliance with the Companies Act.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognised the non-compliance.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 auditor's 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.

Jenny McCabe (Senior Statutory Auditor)
For and on behalf of MHA Moore and Smalley
Chartered Accountants
Statutory Auditor
Kendal House
Murley Moss Business Village
Oxenholme Road
Kendal
LA9 7RL
19 August 2022
CORNTHWAITE INVESTMENTS (AG) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
2021
2020
£
£
Profit before taxation
-
0
-
0
Tax on profit
-
0
-
0
Profit for the financial year
-
0
-
0

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CORNTHWAITE INVESTMENTS (AG) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
2021
2020
£
£
Loss for the year
-
0
-
0
Other comprehensive income
-
-
Total comprehensive income for the year
-
0
-
0
CORNTHWAITE INVESTMENTS (AG) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 12 -
2021
2020
Notes
£
£
£
£
Fixed assets
Investments
4
2,818,082
2,817,197
Current assets
Cash at bank and in hand
132
139
Creditors: amounts falling due within one year
6
(1,221,508)
(1,220,630)
Net current liabilities
(1,221,376)
(1,220,491)
Net assets
1,596,706
1,596,706
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
1,596,606
1,596,606
Total equity
1,596,706
1,596,706
The financial statements were approved by the board of directors and authorised for issue on 18 August 2022 and are signed on its behalf by:
Mr S A Cornthwaite
Director
Company Registration No. 06740056
CORNTHWAITE INVESTMENTS (AG) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2020
100
1,596,606
1,596,706
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
0
-
0
Balance at 31 December 2020
100
1,596,606
1,596,706
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
0
-
0
Balance at 31 December 2021
100
1,596,606
1,596,706
CORNTHWAITE INVESTMENTS (AG) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 14 -
1
Accounting policies
Company information

Cornthwaite Investments (Ag) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hall Lane, Bispham Green, Ormskirk, L40 3SB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

1.2
Going concern

The Directors have considered the Group's trading projections for a period of at least 12 months from the date of signing the accounts. Results for 2022 year to date show that the group is on track to achieve our objectives of strengthening margins through the continued development of the aftersales business and robust cash management. The agricultural industry remains positive with strong buying confidence and continued market leadership by our major franchise John Deere.true

The group has enjoyed successful trading for many years and has developed a strong balance sheet with healthy reserves. We continue to enjoy good relationships with our key suppliers and optimise the support they provide to assist in the smooth running of the group.

After considering all the above the Directors have a reasonable expectation that the Group has adequate resources to continue to be operational for the foreseeable future and are satisfied that it is appropriate to prepare the accounts on a going concern basis.

CORNTHWAITE INVESTMENTS (AG) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 15 -
1.3
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.4
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

CORNTHWAITE INVESTMENTS (AG) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.6
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

CORNTHWAITE INVESTMENTS (AG) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 17 -
1.7
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2021
2020
Number
Number
2
3

 

4
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
5
2,818,082
2,817,197

The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.

CORNTHWAITE INVESTMENTS (AG) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
4
Fixed asset investments
(Continued)
- 18 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2021
2,817,197
Additions
885
At 31 December 2021
2,818,082
Carrying amount
At 31 December 2021
2,818,082
At 31 December 2020
2,817,197
5
Subsidiaries

Details of the company's subsidiaries at 31 December 2021 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Agricultural Machinery (Nantwich) Limited
England
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit
£
£
Agricultural Machinery (Nantwich) Limited
3,499,988
186,784
6
Creditors: amounts falling due within one year
2021
2020
£
£
Amounts owed to group undertakings
1,220,057
1,216,852
Accruals and deferred income
1,451
3,778
1,221,508
1,220,630
CORNTHWAITE INVESTMENTS (AG) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
7
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
''A' ordinary shares of £1 each
75
75
75
75
''B' ordinary shares of £1 each
20
20
20
20
''C' ordinary shares of £1 each
5
5
5
5
100
100
100
100

A dividend may be declared on one or more classes of ordinary shares without being declared on the other(s). Subject to the foregoing, the shares in each class of ordinary shares shall be deemed to rank pari passu in all respects as if they constituted one class of share.

8
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

2021
2020
Amounts due to related parties
£
£
Entities over which the entity has control, joint control or significant influence
350,005
346,800
Other related parties
870,052
870,052
9
Ultimate controlling party

The ultimate parent company is Cornthwaite Holdings Limited, a company registered in England and Wales.

 

The ultimate controlling party is Mr S A Cornthwaite, the director and sole shareholder of that company.

 

Copies of the consolidated financial statements of Cornthwaite Holdings Limited, which is both the smallest and largest group for which consolidated financial statements are prepared, may be obtained from Cornthwaite Holdings Limited, Hall Lane, Bispham Green, Ormskirk, Lancashire, L40 3SB.

2021-12-312021-01-01falseCCH SoftwareCCH Accounts Production 2022.200Mr S A CornthwaiteMr J E AsheMr F A McKeeMr B N ShieldMr R HughesMrs S Moran067400562021-01-012021-12-3106740056bus:Director12021-01-012021-12-3106740056bus:Director32021-01-012021-12-3106740056bus:Director42021-01-012021-12-3106740056bus:Director52021-01-012021-12-3106740056bus:Director62021-01-012021-12-3106740056bus:Director22021-01-012021-12-3106740056bus:RegisteredOffice2021-01-012021-12-31067400562021-12-31067400562020-01-012020-12-3106740056core:RetainedEarningsAccumulatedLosses2020-01-012020-12-3106740056core:RetainedEarningsAccumulatedLosses2021-01-012021-12-31067400562020-12-3106740056core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3106740056core:CurrentFinancialInstrumentscore:WithinOneYear2020-12-3106740056core:CurrentFinancialInstruments2021-12-3106740056core:CurrentFinancialInstruments2020-12-3106740056core:ShareCapital2021-12-3106740056core:ShareCapital2020-12-3106740056core:RetainedEarningsAccumulatedLosses2021-12-3106740056core:RetainedEarningsAccumulatedLosses2020-12-3106740056core:ShareCapital2019-12-3106740056core:RetainedEarningsAccumulatedLosses2019-12-31067400562019-12-3106740056core:ShareCapitalOrdinaryShares2021-12-3106740056core:ShareCapitalOrdinaryShares2020-12-3106740056core:Non-currentFinancialInstruments2021-12-3106740056core:Non-currentFinancialInstruments2020-12-3106740056core:Subsidiary12021-01-012021-12-3106740056core:Subsidiary112021-01-012021-12-3106740056core:Subsidiary12021-12-3106740056bus:PrivateLimitedCompanyLtd2021-01-012021-12-3106740056bus:FRS1022021-01-012021-12-3106740056bus:Audited2021-01-012021-12-3106740056bus:FullAccounts2021-01-012021-12-31xbrli:purexbrli:sharesiso4217:GBP