Company registration number 06323376 (England and Wales)
CORNTHWAITE HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
CORNTHWAITE HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr S A Cornthwaite
Mr B N Shield
(Appointed 31 January 2022)
Mr R Hughes
(Appointed 31 January 2022)
Mrs S Moran
(Appointed 31 January 2022)
Mrs H C Cornthwaite
(Appointed 31 January 2022)
Company number
06323376
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 HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 8
Directors' responsibilities statement
9
Independent auditor's report
10 - 12
Profit and loss account
13
Group statement of comprehensive income
14
Group balance sheet
15
Company balance sheet
16
Group statement of changes in equity
17
Company statement of changes in equity
18
Group statement of cash flows
19
Notes to the financial statements
20 - 37
CORNTHWAITE HOLDINGS 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

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

Turnover for the Group for year ended 31 December 2021 is slightly increased at £83.3 million from £82.7 million for the previous year.

Gross margin continues to strengthen to 6.4% in 2021, up from 5.5% in 2020.

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 is offset by improved margins to deliver a pre-tax profit of £1.2m in 2021, down from £2.3m in 2020.

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 HOLDINGS 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 Group has 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 Group operates 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 Group 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 HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -
Section 172(1) statement

The board of Cornthwaite Holdings Limited have a legal responsibility under Section 172 of the Companies Act 2006 to act in a way that we believe is most likely to promote the group’s success for the benefit of its members as a whole and to have regard to the long term effects of our decisions on the group and its stakeholders. This statement addresses the ways in which the board meets its responsibilities.

Promoting the company’s success for its members

Cornthwaite Agricultural started traded in 2007 as a single outlet dealer for John Deere, the market leader in the manufacture of agricultural machinery worldwide-principally Tractors and large Harvesting Equipment.

Since that time the business has expanded its area of responsibility from South and West Lancashire to an area that now encompasses parts of North Shropshire/North Wales/Staffordshire and all of Cheshire/Lancashire/Cumbria, parts of North Yorkshire/County Durham and Dumfries and Galloway, together with the Isle of Man.

The group holds additional prestigious brands in its portfolio of equipment and the Directors continue to explore possibilities for future growth with the aim of building a strong, sustainable and profitable business which will benefit the members.

Engagement with key stakeholder groups

Our people

A skilled, motivated team committed to delivering exceptional customer service is fundamental to the continued success of the business.

We have a number of mechanisms where we engage with and encourage feedback from our employees. We continually monitor training needs and are committed to increasing levels of investment in staff development.

Strong business ethics underpin our relationship with customers, suppliers and staff and we strive to provide an inspiring environment for people to work.

Our customers

The group is committed to provide the highest level of service – to treat customers fairly – and to foster long term relationships.

We continuously monitor Customer satisfaction through surveys and ongoing customer contact.

Our suppliers

The business of the group comprises the operation of a number of franchises and has therefore developed and continues to develop strong relationships with manufacturers and finance partners.

The group is regulated under the FCA as it acts as an introducer of business to finance companies.

Community and Environment

The group engages with the local community in each of the areas in which it operates, recognising the importance of making a positive impact, acting in an environmentally friendly manner as much as is possible and being socially responsible.

CORNTHWAITE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -

On behalf of the board

Mr S A Cornthwaite
Director
18 August 2022
CORNTHWAITE HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -

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 subsidiaries, Cornthwaite Agricultural Limited and 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.

 

The company also has a subsidiary undertaking, Cornthwaite Investments (AG) Limited, which was incorporated on 3 November 2008, which owns the entire share capital of Agricultural Machinery (Nantwich) Limited.

Results and dividends

The results for the year are set out on page 13.

 

Interim dividends of £1,150 per Ordinary Share were paid during the period. Full details are included in note 10 to the financial statements.

 

The director does not recommend the payment of a final 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 B N Shield
(Appointed 31 January 2022)
Mr R Hughes
(Appointed 31 January 2022)
Mrs S Moran
(Appointed 31 January 2022)
Mrs H C Cornthwaite
(Appointed 31 January 2022)
Directors' insurance

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
Credit risk

The group has implemented policies that require appropriate credit checks on potential customers before sales are made.

CORNTHWAITE HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
Financial instruments

Financial risk management objectives and policies.

 

The operations of the company's subsidiaries exposes the group 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 group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs. The group does not use derivative financial instruments to manage interest rate costs and as such, no hedge accounting is applied.

 

Given the size of the group, the director has not delegated the responsibility of monitoring the financial risk management to a sub-committee of the board. The policies set by the director are implemented by the group's finance department.

 

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

Future developments

The director intends to explore any future opportunities to expand the group's customer base or its activities.

Auditor

MHA Moore and Smalley are deemed to be re-appointed under section 487 (2) of the Companies Act 2006.

Energy and carbon report

Greenhouse gas emissions, energy consumption and energy efficiency action

The company is committed to managing its environmental impact and is fully aware that by considering the environment in our decision making we can have a beneficial impact on the company’s performance. Our key environmental impacts arise from:

Energy consumption at our outlets

Transportation of goods

Use of our vehicle fleet

For the purpose of this report we disclose our Scope 1 and 2 emissions in accordance with the Environmental Reporting Guidelines as issued by the Department of Environment, Food & Rural Affairs (DEFRA) and the Department for Business, Energy & Industrial Strategy (BEIS):

2021
2020
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
124,075
222,729
- Electricity purchased
233,418
225,829
- Fuel consumed for transport
2,248,988
2,038,047
2,606,481
2,486,605
CORNTHWAITE HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
2021
2020
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
25.35
43.75
- Fuel consumed for owned transport
532.70
503.28
558.05
547.03
Scope 2 - indirect emissions
- Electricity purchased
49.56
52.65
Total gross emissions
607.61
599.68
Intensity ratio
Tonnes CO2e per £1m of revenue
7.293
7.250
Quantification and reporting methodology

Greenhouse gas emissions are calculated in alignment with records used for the production of the financial statements using emission factors produced by the BEIS’s ‘Greenhouse gas reporting: conversion factors 2021’ to calculate Scope 1 & 2 emissions. All emissions required under the Companies Act 2006 are included where stated and include Scope 1 (direct emissions from owned road vehicles) and Scope 2 (indirect emissions from purchased electricity).

Intensity measurement

Total carbon emissions per £1m of revenue in the year to 31 December 2021 were 7.293 tCO2. As comparatives are not a statutory requirement in the first year of reporting we have opted to disclose accordingly. This is based on group turnover of £83m.

Measures taken to improve energy efficiency

As a group we endeavour to monitor, review and improve our environmental performance.

We take our Carbon footprint seriously and seek to use the latest technology available to use to minimise our operational emissions.

We have considered climate risk to our company; primarily how it will inhibit our ability to trade and what measures we can take to mitigate those risks. We also consider the risk to our customers so we can advise them how to also act responsibly.

We are fully engaged in promoting the industry leading, intelligent and fuel-efficient products and technology solutions from our Franchise partner John Deere.

We look to reduce and limit non-essential travel between outlets. Group or team meetings are held online wherever possible and practical.

All company vehicles have trackers installed to assist in our monitoring of mileage and driving standards. We are transitioning our fleet to include hybrid powered vehicles and are installing charging points at all our outlets.

We have an employee led Eco Team who work together on initiatives to improve our waste recycling and operational efficiency in use of consumables.

 

CORNTHWAITE HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
Statement of disclosure to auditor

The director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditors are unaware. Additionally, the director individually has taken all the necessary steps he ought to have taken as a director in order to make himself aware of all relevant audit information and to establish that the company’s auditors are aware of that information.

Taxation status

The company was a close company within the provisions 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 HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements 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 financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CORNTHWAITE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CORNTHWAITE HOLDINGS LIMITED
- 10 -
Opinion

We have audited the financial statements of Cornthwaite Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group and parent 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 group's and parent 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 HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CORNTHWAITE HOLDINGS LIMITED
- 11 -

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 group and the parent company and their 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 parent 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 parent 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 HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CORNTHWAITE HOLDINGS LIMITED
- 12 -

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 is available on the Financial Reporting Council’s website at: https://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 HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 13 -
2021
2020
Notes
£
£
Turnover
3
83,319,131
82,717,824
Cost of sales
(77,974,069)
(78,154,154)
Gross profit
5,345,062
4,563,670
Distribution costs
(2,562,651)
(2,770,502)
Administrative expenses
(3,497,474)
(3,247,628)
Other operating income
2,079,039
3,954,031
Operating profit
4
1,363,976
2,499,571
Interest receivable and similar income
8
641
-
0
Interest payable and similar expenses
9
(212,227)
(195,966)
Profit before taxation
1,152,390
2,303,605
Tax on profit
10
(448,021)
(483,211)
Profit for the financial year
704,369
1,820,394
Profit for the financial year is attributable to:
- Owners of the parent company
657,894
1,687,776
- Non-controlling interests
46,475
132,618
704,369
1,820,394

The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.

CORNTHWAITE HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 14 -
2021
2020
£
£
Profit for the year
704,369
1,820,394
Other comprehensive income
-
-
Total comprehensive income for the year
704,369
1,820,394
Total comprehensive income for the year is attributable to:
- Owners of the parent company
657,894
1,687,776
- Non-controlling interests
46,475
132,618
704,369
1,820,394
CORNTHWAITE HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 15 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
13
8,333,442
8,543,964
Investments
14
11,260
11,260
8,344,702
8,555,224
Current assets
Stocks
15
30,450,698
21,992,656
Debtors
17
6,371,720
3,941,671
Cash at bank and in hand
2,974,659
1,403,293
39,797,077
27,337,620
Creditors: amounts falling due within one year
18
(34,898,634)
(23,314,202)
Net current assets
4,898,443
4,023,418
Total assets less current liabilities
13,243,145
12,578,642
Creditors: amounts falling due after more than one year
19
(1,124,975)
(1,357,411)
Provisions for liabilities
Deferred tax liability
22
840,779
548,209
(840,779)
(548,209)
Net assets
11,277,391
10,673,022
Capital and reserves
Called up share capital
24
100
100
Share premium account
1,736,283
1,736,283
Profit and loss reserves
8,971,352
8,413,458
Equity attributable to owners of the parent company
10,707,735
10,149,841
Non-controlling interests
569,656
523,181
11,277,391
10,673,022
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:
18 August 2022
Mr S A Cornthwaite
Director
CORNTHWAITE HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 16 -
2021
2020
Notes
£
£
£
£
Fixed assets
Investments
14
1,736,457
1,736,457
Current assets
Debtors
17
1
1
Creditors: amounts falling due within one year
18
(75)
(75)
Net current liabilities
(74)
(74)
Net assets
1,736,383
1,736,383
Capital and reserves
Called up share capital
24
100
100
Share premium account
1,736,283
1,736,283
Total equity
1,736,383
1,736,383
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:
18 August 2022
Mr S A Cornthwaite
Director
Company Registration No. 06323376
CORNTHWAITE HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2020
100
1,736,283
6,840,682
8,577,065
390,563
8,967,628
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
1,687,776
1,687,776
132,618
1,820,394
Dividends
11
-
-
(115,000)
(115,000)
-
(115,000)
Balance at 31 December 2020
100
1,736,283
8,413,458
10,149,841
523,181
10,673,022
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
657,894
657,894
46,475
704,369
Dividends
11
-
-
(100,000)
(100,000)
-
(100,000)
Balance at 31 December 2021
100
1,736,283
8,971,352
10,707,735
569,656
11,277,391
CORNTHWAITE HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2020
100
1,736,283
-
1,736,383
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
115,000
115,000
Dividends
11
-
-
(115,000)
(115,000)
Balance at 31 December 2020
100
1,736,283
-
1,736,383
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
100,000
100,000
Dividends
11
-
-
(100,000)
(100,000)
Balance at 31 December 2021
100
1,736,283
-
1,736,383
CORNTHWAITE HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
2,396,711
2,929,094
Interest paid
(212,227)
(195,966)
Income taxes paid
(464,149)
(72,591)
Net cash inflow from operating activities
1,720,335
2,660,537
Investing activities
Purchase of tangible fixed assets
(609,944)
(654,806)
Proceeds on disposal of tangible fixed assets
3,206,710
3,117,605
Interest received
641
-
0
Net cash generated from investing activities
2,597,407
2,462,799
Financing activities
Proceeds from borrowings
7,544,219
7,376,724
Repayment of borrowings
(6,225,110)
(6,849,660)
Repayment of bank loans
(196,799)
(187,794)
Payment of finance leases obligations
(3,768,686)
(3,509,514)
Dividends paid to equity shareholders
(100,000)
(115,000)
Net cash used in financing activities
(2,746,376)
(3,285,244)
Net increase in cash and cash equivalents
1,571,366
1,838,092
Cash and cash equivalents at beginning of year
1,403,293
(434,799)
Cash and cash equivalents at end of year
2,974,659
1,403,293
CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
1
Accounting policies
Company information

Cornthwaite Holdings Limited (“the Company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Hall Lane, Bispham Green, Nr Ormskirk, Lancashire, L40 3SB.

 

The Group consists of Cornthwaite Holdings Limited and all of its subsidiaries.

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.

1.2
Basis of consolidation

The consolidated accounts incorporate the accounts of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over ten years from the year of acquisition. The results of companies acquired or disposed of are included in the group profit and loss account after or up to the date that control passes respectively. As a consolidated group profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group accounts by virtue of section 408 of the Companies Act 2006.

1.3
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.

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.

1.4
Turnover

Turnover represents amounts receivable for goods and services net of VAT and trade discounts, to the extent that the company has a right to consideration arising from the performance of its contractual arrangements.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 21 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Freehold buildings
50 years
Leasehold improvements
10 years/remainder of lease
Plant and machinery
3-10 years
Motor vehicles
5 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 22 -

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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

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

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount.

CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 23 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
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.

1.11
Financial instruments

The group 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.

1.12
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 group’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 HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 24 -
1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.17
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.

1.18

Other operating income

John Deere P4P (Pay for Performance) is recognised as and when it is received from John Deere.

CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 25 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock provision

Provision has been made against the value of stock where necessary on a line by line and age basis bearing in mind the asset class and the current market conditions for that particular class of asset.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2021
2020
£
£
Turnover analysed by class of business
Sale of goods and services
83,319,131
82,717,824
2021
2020
£
£
Turnover analysed by geographical market
UK
76,801,652
70,543,590
Rest of World
6,517,479
12,174,234
83,319,131
82,717,824
2021
2020
£
£
Other revenue
Interest income
641
-
Grants received
-
0
25,000
CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 26 -
4
Operating profit
2021
2020
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(1,382)
995
Government grants
-
0
(25,000)
Depreciation of owned tangible fixed assets
821,967
704,207
Depreciation of tangible fixed assets held under finance leases
298,860
355,502
Profit on disposal of tangible fixed assets
(15,346)
(7,485)
Amortisation of intangible assets
885
2,077
Operating lease charges
408,602
361,178
5
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,350
1,850
Audit of the financial statements of the company's subsidiaries
16,395
13,025
18,745
14,875
6
Employees

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

Group
Company
2021
2020
2021
2020
Number
Number
Number
Number
Directors
4
4
-
-
Management/administration
22
21
-
-
Sales/after sales
96
97
-
-
Total
122
122
-
0
-
0
CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
6
Employees
(Continued)
- 27 -

Their aggregate remuneration comprised:

Group
Company
2021
2020
2021
2020
£
£
£
£
Wages and salaries
4,281,068
4,355,716
-
0
-
0
Social security costs
459,373
480,265
-
0
-
0
Pension costs
101,658
103,895
-
0
-
0
4,842,099
4,939,876
-
0
-
0
7
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
118,391
116,975
8
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
641
-
0

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
641
-
9
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
78,868
107,574
Other finance costs:
Interest on finance leases and hire purchase contracts
5,758
15,491
Other interest
127,601
72,901
Total finance costs
212,227
195,966
CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 28 -
10
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
158,486
347,832
Adjustments in respect of prior periods
(3,033)
(8,587)
Total current tax
155,453
339,245
Deferred tax
Origination and reversal of timing differences
292,568
143,966
Total tax charge
448,021
483,211

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2021
2020
£
£
Profit before taxation
1,152,390
2,303,605
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
218,954
437,685
Tax effect of expenses that are not deductible in determining taxable profit
1,099
545
Adjustments in respect of prior years
(3,033)
(8,587)
Permanent capital allowances in excess of depreciation
14,549
36,738
Depreciation on assets not qualifying for tax allowances
14,498
16,435
Amortisation on assets not qualifying for tax allowances
168
395
Effective change in rate of deferred tax provision
201,786
-
0
Taxation charge
448,021
483,211

 

11
Dividends
2021
2020
Recognised as distributions to equity holders:
£
£
Interim paid
100,000
115,000
Dividends paid after the balance sheet date totalled £209,335 (2020: £75,000).
CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 29 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2021
652,918
Additions
885
At 31 December 2021
653,803
Amortisation and impairment
At 1 January 2021
652,918
Amortisation charged for the year
885
At 31 December 2021
653,803
Carrying amount
At 31 December 2021
-
0
At 31 December 2020
-
0
The company had no intangible fixed assets at 31 December 2021 or 31 December 2020.
13
Tangible fixed assets
Group
Freehold buildings
Leasehold improvements
Plant and machinery
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2021
2,677,776
1,700,727
5,033,339
1,876,151
11,287,993
Additions
-
0
6,500
4,095,169
-
0
4,101,669
Disposals
-
0
-
0
(3,658,000)
(102,390)
(3,760,390)
At 31 December 2021
2,677,776
1,707,227
5,470,508
1,773,761
11,629,272
Depreciation and impairment
At 1 January 2021
230,231
356,891
938,588
1,218,319
2,744,029
Depreciation charged in the year
40,945
173,235
613,677
292,970
1,120,827
Eliminated in respect of disposals
-
0
-
0
(472,500)
(96,526)
(569,026)
At 31 December 2021
271,176
530,126
1,079,765
1,414,763
3,295,830
Carrying amount
At 31 December 2021
2,406,600
1,177,101
4,390,743
358,998
8,333,442
At 31 December 2020
2,447,545
1,343,836
4,094,751
657,832
8,543,964
The company had no tangible fixed assets at 31 December 2021 or 31 December 2020.
CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
13
Tangible fixed assets
(Continued)
- 30 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts. The depreciation charge in respect of such assets amounted to £298,860 (2020- £355,502) for the year.

Group
Company
2021
2020
2021
2020
£
£
£
£
Plant and machinery
4,201,825
3,728,405
-
0
-
0
Motor vehicles
94,592
434,628
-
0
-
0
4,296,417
4,163,033
-
-

The gross amount of land and buildings on which depreciation is being provided is £2,052,215 (2020- £2,052,215). Freehold land and buildings includes £625,561 (2020- £625,561) non-depreciable land.

14
Fixed asset investments
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
1,736,457
1,736,457
Unlisted investments
11,260
11,260
-
0
-
0
11,260
11,260
1,736,457
1,736,457
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 January 2021 and 31 December 2021
11,260
Carrying amount
At 31 December 2021
11,260
At 31 December 2020
11,260
CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
14
Fixed asset investments
(Continued)
- 31 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2021 and 31 December 2021
1,736,457
Carrying amount
At 31 December 2021
1,736,457
At 31 December 2020
1,736,457
15
Stocks
Group
Company
2021
2020
2021
2020
£
£
£
£
Raw materials and consumables
1,925,765
1,839,370
-
0
-
0
Work in progress
51,314
52,056
-
-
Finished goods and goods for resale
28,473,619
20,101,230
-
0
-
0
30,450,698
21,992,656
-
0
-
0

Included within this figure is an impairment loss of £2,209,390 (2020: £2,177,982) which was recognised against stock during the year due to slow-moving and obsolete stock.

16
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
Indirect
Agricultural Machinery (Nantwich) Limited
England
Ordinary
0
75.00
Cornthwaite Agricultural Limited
England
Ordinary
0
100.00
Cornthwaite Investments (AG) Limited
England
Ordinary
0
75.00

The company's indirect holding in Agricultural Machinery (Nantwich) Limited arises as a result of its 75% holding in Cornthwaite Investments (AG) Limited which owns 100% of the share capital of that company.

 

The principal activity of Cornthwaite Agricultural Limited and 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. Cornthwaite Investments (AG) Limited is that of a holding company.

CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 32 -
17
Debtors
Group
Company
2021
2020
2021
2020
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,619,214
3,377,301
-
0
-
0
Corporation tax recoverable
42,521
-
0
-
0
-
0
Other debtors
1,513,960
402,314
1
1
Prepayments and accrued income
196,025
162,056
-
0
-
0
6,371,720
3,941,671
1
1
18
Creditors: amounts falling due within one year
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Bank loans
20
203,532
195,779
-
0
-
0
Obligations under finance leases
21
2,638,078
2,887,155
-
0
-
0
Other borrowings
20
4,050,252
2,731,143
-
0
-
0
Trade creditors
26,227,419
12,884,870
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
75
75
Corporation tax payable
76,006
342,183
-
0
-
0
Other taxation and social security
192,795
1,567,626
-
-
Other creditors
26,632
46,647
-
0
-
0
Accruals and deferred income
1,483,920
2,658,799
-
0
-
0
34,898,634
23,314,202
75
75

The bank facility is secured by a fixed and floating charge over all the assets of Cornthwaite Agricultural Limited, together with a 1st legal charge over that company's freehold property, and a fixed and floating charge over all of the assets of Agricultural Machinery (Nantwich) Limited.

 

In addition within loans and overdrafts are stocking loans of £4,050,252 (2020: £2,731,143) from John Deere Bank S.A. on used equipment traded in against new machines. These loans are secured on the equipment traded in.

 

The obligations under hire purchase contracts are secured on the assets subject to those contracts.

 

The aggregate amount of secured creditors is £8,016,837 (2020: £7,171,488).

CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 33 -
19
Creditors: amounts falling due after more than one year
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Bank loans and overdrafts
20
1,118,383
1,322,935
-
0
-
0
Obligations under finance leases
21
6,592
34,476
-
0
-
0
1,124,975
1,357,411
-
-

 

20
Loans and overdrafts
Group
Company
2021
2020
2021
2020
£
£
£
£
Bank loans
1,321,915
1,518,714
-
0
-
0
Other loans
4,050,252
2,731,143
-
0
-
0
5,372,167
4,249,857
-
-
Payable within one year
4,253,784
2,926,922
-
0
-
0
Payable after one year
1,118,383
1,322,935
-
0
-
0

The group has three (2020 - three) bank loans repayable by monthly instalments which carry interest rates of 3.15%, 3.5% and 3.9% above base rate.

 

21
Finance lease obligations
Group
Company
2021
2020
2021
2020
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
2,639,512
2,893,582
-
0
-
0
In two to five years
6,119
34,438
-
0
-
0
2,645,631
2,928,020
-
-
Less: future finance charges
(961)
(6,389)
-
0
-
0
2,644,670
2,921,631
-
0
-
0
CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
21
Finance lease obligations
(Continued)
- 34 -

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 1 year. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

22
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2021
2020
Group
£
£
ACAs
840,779
548,209
The company has no deferred tax assets or liabilities.
Group
Company
2021
2021
Movements in the year:
£
£
Liability at 1 January 2021
548,209
-
Charge to profit or loss
292,570
-
Liability at 31 December 2021
840,779
-
23
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
101,658
103,895

The group operates a number of defined contribution pension schemes. The pension cost charges represent contributions payable by the group to the funds.

The number of directors to whom retirement benefits are accruing under defined contribution schemes in respect of qualifying services - 1 (2020- 1)

CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 35 -
24
Share capital
Group and company
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
25
Financial commitments, guarantees and contingent liabilities

The company has given an unlimited guarantee in respect of the bank borrowings of its subsidiary companies, Cornthwaite Agricultural Limited and Agricultural Machinery (Nantwich) Limited.

 

The guarantee is supported by a debenture on all companies and by legal charges over land and buildings owned by Cornthwaite Agricultural Limited.

 

At the year end the potential liability amounted to £1,321,915 (2020 - £1,518,714).

 

The company, together with Agricultural Machinery (Nantwich) Limited and Cornthwaite Agricultural Limited, has given a limited guarantee of £1,275,000 in respect of bank borrowings of Cornthwaite Properties Limited, a company with certain common shareholders. This guarantee is supported by a debenture on Cornthwaite Properties Limited and by legal charges over land and buildings owned by Cornthwaite Properties Limited.

 

At the year end the potential liability amounted to £899,336 (2020- £960,559).

26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2021
2020
2021
2020
£
£
£
£
Within one year
181,250
150,604
-
-
Between two and five years
558,750
492,500
-
-
In over five years
108,333
208,333
-
-
848,333
851,437
-
-
CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 36 -
27
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2021
2020
£
£
Aggregate compensation
348,337
387,800
Transactions with related parties

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

Rent
Dividends
2021
2020
2021
2020
£
£
£
£
Group
Key management personnel
-
-
100,000
115,000
Other related parties
135,000
135,000
-
-

 

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2021
2020
£
£
Group
Key management personnel
1,757
17,534
Other related parties
22,500
22,500

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2021
2020
Balance
Balance
£
£
Group
Other related parties
399,000
399,000

 

28
Controlling party

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

CORNTHWAITE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 37 -
29
Cash generated from group operations
2021
2020
£
£
Profit for the year after tax
704,369
1,820,394
Adjustments for:
Taxation charged
448,021
483,211
Finance costs
212,227
195,966
Investment income
(641)
-
0
Gain on disposal of tangible fixed assets
(15,346)
(7,485)
Amortisation and impairment of intangible assets
885
2,077
Depreciation and impairment of tangible fixed assets
1,120,827
1,059,709
Movements in working capital:
(Increase)/decrease in stocks
(8,458,042)
4,542,844
(Increase)/decrease in debtors
(2,387,528)
363,393
Increase/(decrease) in creditors
10,771,939
(5,531,015)
Cash generated from operations
2,396,711
2,929,094
30
Analysis of changes in net debt - group
1 January 2021
Cash flows
New finance leases
31 December 2021
£
£
£
£
Cash at bank and in hand
1,403,293
1,571,366
-
2,974,659
Borrowings excluding overdrafts
(4,249,857)
(1,122,310)
-
(5,372,167)
Obligations under finance leases
(2,921,631)
3,768,686
(3,491,725)
(2,644,670)
(5,768,195)
4,217,742
(3,491,725)
(5,042,178)
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