REGISTERED NUMBER: NI618810 (Northern Ireland) |
CP ANIMAL FEEDS LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
REGISTERED NUMBER: NI618810 (Northern Ireland) |
CP ANIMAL FEEDS LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
CP ANIMAL FEEDS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & Statutory Auditors |
Church House |
24 Dublin Road |
OMAGH |
Co. Tyrone |
BT78 1HE |
BANKERS: | Ulster Bank Limited |
7 Upper English Street |
ARMAGH |
BT61 7BL |
SOLICITORS: |
24-38 Gordon Street |
BELFAST |
BT1 2LG |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
The director presents his strategic report of the company and the group for the year ended 31 October 2022. |
REVIEW OF BUSINESS |
The director considers the results during the year to be satisfactory given the conditions within the agricultural sector at present and in particular the volatility in the cost of raw materials. The results for the year are set out in the statement of comprehensive income, showing an increase in turnover and profitability. The year end financial position is set out on the balance sheet and is considered satisfactory. |
The group has invested in people and product development along with a major investment in facilities during the year and will continue to do so in order to ensure ongoing business growth and improved effectiveness. |
The director views the outlook for the group with confidence. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Financial Risk Management |
The group's operations expose it to a variety of financial risks that include price risk, liquidity risk and interest rate risk. Given the size of the group the financial risk management is controlled by the director and the main risks associated with the financial assets and liabilities are set out below. |
Price Risk |
The group is exposed to commodity price risk due to movements and the volatility of commodity prices. The group seeks to mitigate this risk thorough the policy of entering into forward contracts for a proportion of it's raw materials. |
Credit Risk |
Credit risk arises on third party derived revenues. The group carries out appropriate checks on potential customers before sales are made to any new customers. The majority of sales are made to long standing customers with whom a good relationship has been built. Individual exposures are monitored on an ongoing bases to ensure that the group's exposure to bad debts is not significant. |
Liquidity Risk |
The group's liquidity risk is managed by the group's director through daily assessment of required cash levels and resultant utilisation of available facilities from the group's banks. |
Interest Rate Risk |
The group has external borrowings with its bank and the debt is maintained at variable rates of interest. The group is satisfied with this arrangement and will review this policy as the group's operations may change in the future. The director does not believe that the group has significant exposure arising from interest rate changes. |
ENVIRONMENT |
The group recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts. The director's continual aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible. Opportunities to improve the sustainability of the group's operations are actively pursued by the director. |
HEALTH AND SAFETY |
The group is committed to achieving the highest possible standard in health and safety management and continues to invest in its facilities to ensure a safe environment for employees and customers alike. |
HUMAN RESOURCES |
The group regards people as one of its most important resources. Retention of key staff is critical and the director is pleased with the relatively low turnover of personnel. |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
KEY PERFORMANCE INDICATORS (KPIS) |
Given the nature of the business, the group's director view the principle KPIs of the business to be growth in turnover and gross profit. |
The key performance indicators of the group are set out below: |
2022 | 2021 |
Turnover | £49.2m | £35.8m |
Gross profit | £9.1m | £6.4m |
Profit for the year | £3.7m | £1.6m |
ON BEHALF OF THE BOARD: |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
The director presents his report with the financial statements of the company and the group for the year ended 31 October 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of manufacture of prepared feeds for farm animals. |
DIVIDENDS |
The directors have recommended a dividend of £115,000. (2021 - £110,000) |
DIRECTOR |
POLITICAL DONATIONS AND EXPENDITURE |
The company made charitable donations amounting to £20,300 during the year (2021: £10,000). No donations for political purposes were made during the year. |
RESULTS |
The profit for the year, after taxation, amounts to £3,736,703 (2021- £1,566,015) |
FUTURE DEVELOPMENTS |
The director does not foresee any future developments in the forthcoming year outside of normal trading. |
POST BALANCE SHEET EVENTS |
There have been no significant events affecting the group since the year end. |
DIRECTOR'S RESPONSIBILITIES STATEMENT |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
AUDITORS |
The auditors, McAleer Jackson Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CP ANIMAL FEEDS LIMITED |
Opinion |
We have audited the financial statements of CP Animal Feeds Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 October 2022 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's 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 the 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CP ANIMAL FEEDS LIMITED |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Director's Responsibilities Statement set out on page four, the director is 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 director determines 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 director is responsible for assessing the group's and 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CP ANIMAL FEEDS LIMITED |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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. We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance including the Group's remuneration policies, and performance targets; |
- results of our enquiries of management and other key persons about the Group's own identification and assessment of the risks of irregularities, including those that may occur either as a result of fraud or error, and matters we identified from our review of the Group's policies, procedures and internal controls; and |
- the matters discussed among the audit engagement team regarding potential indicators of fraud and where it might occur in the financial statements. |
We also obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions and tax legislation, health and safety regulations, food standard requirements together with provisions of other laws and regulations that do not have a direct effect on the financial statements, but compliance with which may be fundamental to the Group's ability to operate or to avoid a material penalty. |
From the above procedures, and in common with all audits under ISAs (UK), we identified the disclosure of adjusting items as a key audit matter with respect to potential risk of fraud, particularly in areas where management is required to exercise significant judgement. |
We tailored our response to those identified risks to include enquiring of management and external legal advisors concerning actual and potential litigation and claims, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, and reviewing correspondence with HMRC and other regulatory bodies. |
In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CP ANIMAL FEEDS LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants & Statutory Auditors |
Church House |
24 Dublin Road |
OMAGH |
Co. Tyrone |
BT78 1HE |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 4 | 49,246,892 | 35,755,982 |
Cost of sales | 40,106,785 | 29,403,617 |
GROSS PROFIT | 9,140,107 | 6,352,365 |
Administrative expenses | 4,545,301 | 4,478,362 |
4,594,806 | 1,874,003 |
Other operating income | - | 27,000 |
OPERATING PROFIT | 6 | 4,594,806 | 1,901,003 |
Interest receivable and similar income | 6,453 | 981 |
4,601,259 | 1,901,984 |
Interest payable and similar expenses | 7 | 74,058 | 62,639 |
PROFIT BEFORE TAXATION | 4,527,201 | 1,839,345 |
Tax on profit | 8 | 790,498 | 273,330 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
3,736,703 |
1,566,015 |
Profit attributable to: |
Owners of the parent | 3,736,703 | 1,566,015 |
Total comprehensive income attributable to: |
Owners of the parent | 3,736,703 | 1,566,015 |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
CONSOLIDATED BALANCE SHEET |
31 OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | - | - |
Tangible assets | 12 | 3,052,304 | 3,338,698 |
Investments | 13 | - | - |
3,052,304 | 3,338,698 |
CURRENT ASSETS |
Stocks | 14 | 1,541,157 | 1,574,981 |
Debtors | 15 | 8,707,992 | 6,307,851 |
Cash at bank and in hand | 5,451,152 | 2,843,630 |
15,700,301 | 10,726,462 |
CREDITORS |
Amounts falling due within one year | 16 | 5,223,198 | 3,908,692 |
NET CURRENT ASSETS | 10,477,103 | 6,817,770 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
13,529,407 |
10,156,468 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(720,959 |
) |
(939,701 |
) |
PROVISIONS FOR LIABILITIES | 22 | (336,349 | ) | (366,371 | ) |
NET ASSETS | 12,472,099 | 8,850,396 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 100 | 100 |
Retained earnings | 24 | 12,471,999 | 8,850,296 |
SHAREHOLDERS' FUNDS | 12,472,099 | 8,850,396 |
The financial statements were approved by the director and authorised for issue on 2 May 2023 and were signed by: |
C W Purdy - Director |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
COMPANY BALANCE SHEET |
31 OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 4,746,162 | 1,250,013 |
The financial statements were approved by the director and authorised for issue on |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2020 | 100 | 7,394,281 | 7,394,381 |
Changes in equity |
Dividends | - | (110,000 | ) | (110,000 | ) |
Total comprehensive income | - | 1,566,015 | 1,566,015 |
Balance at 31 October 2021 | 100 | 8,850,296 | 8,850,396 |
Changes in equity |
Dividends | - | (115,000 | ) | (115,000 | ) |
Total comprehensive income | - | 3,736,703 | 3,736,703 |
Balance at 31 October 2022 | 100 | 12,471,999 | 12,472,099 |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2020 |
Changes in equity |
Total comprehensive income | - |
Dividends | - | ( |
) | ( |
) |
Balance at 31 October 2021 |
Changes in equity |
Total comprehensive income | - |
Dividends | - | ( |
) | ( |
) |
Balance at 31 October 2022 |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 3,233,739 | 1,289,202 |
Interest paid | (11,610 | ) | (11,494 | ) |
Interest element of hire purchase payments paid |
(2,771 |
) |
(3,475 |
) |
Finance costs paid | (59,677 | ) | (47,670 | ) |
Tax paid | (337,612 | ) | (30,827 | ) |
Net cash from operating activities | 2,822,069 | 1,195,736 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (678,283 | ) | (695,585 | ) |
Sale of tangible fixed assets | 65,448 | 21,500 |
Interest received | 6,453 | 981 |
Net cash from investing activities | (606,382 | ) | (673,104 | ) |
Cash flows from financing activities |
Loan repayments in year | (178,580 | ) | (178,580 | ) |
HP loans/(repayments) in year | (74,766 | ) | 34,310 |
Amount introduced by directors | 15,841 | 29,797 |
Equity dividends paid | (115,000 | ) | (110,000 | ) |
Net cash from financing activities | (352,505 | ) | (224,473 | ) |
Increase in cash and cash equivalents | 1,863,182 | 298,159 |
Cash and cash equivalents at beginning of year |
2 |
2,074,205 |
1,776,046 |
Cash and cash equivalents at end of year | 2 | 3,937,387 | 2,074,205 |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation | 4,527,201 | 1,839,345 |
Depreciation charges | 905,224 | 843,194 |
Profit on disposal of fixed assets | (5,997 | ) | (21,500 | ) |
Loss on revaluation of fixed assets | - | 305,784 |
Finance costs | 74,058 | 62,639 |
Finance income | (6,453 | ) | (981 | ) |
5,494,033 | 3,028,481 |
Decrease/(increase) in stocks | 33,824 | (805,173 | ) |
Increase in trade and other debtors | (2,400,141 | ) | (904,095 | ) |
Increase/(decrease) in trade and other creditors | 106,023 | (30,011 | ) |
Cash generated from operations | 3,233,739 | 1,289,202 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 October 2022 |
31.10.22 | 1.11.21 |
£ | £ |
Cash and cash equivalents | 5,451,152 | 2,843,630 |
Bank overdrafts | (1,513,765 | ) | (769,425 | ) |
3,937,387 | 2,074,205 |
Year ended 31 October 2021 |
31.10.21 | 1.11.20 |
£ | £ |
Cash and cash equivalents | 2,843,630 | 2,358,222 |
Bank overdrafts | (769,425 | ) | (582,176 | ) |
2,074,205 | 1,776,046 |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.11.21 | Cash flow | At 31.10.22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,843,630 | 2,607,522 | 5,451,152 |
Bank overdrafts | (769,425 | ) | (744,340 | ) | (1,513,765 | ) |
2,074,205 | 1,863,182 | 3,937,387 |
Debt |
Finance leases | (191,177 | ) | 74,766 | (116,411 | ) |
Debts falling due within 1 year | (178,850 | ) | - | (178,850 | ) |
Debts falling due after 1 year | (847,925 | ) | 178,580 | (669,345 | ) |
(1,217,952 | ) | 253,346 | (964,606 | ) |
Total | 856,253 | 2,116,528 | 2,972,781 |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
1. | STATUTORY INFORMATION |
CP Animal Feeds Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3). |
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. |
The financial statements are shown in sterling which in the financial currency of the group. |
The group financial statements consolidate the financial statements of CP Animal Feeds Limited and all its subsidiary undertakings drawn up to 31 October each year. |
Basis of consolidation |
The consolidated financial statements present the results of the Company and its own subsidiaries ('the Group') as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognized at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date in which control is obtained. They are deconsolidated from the date control ceases. |
In accordance with the transitional exemption available in FRS 102, the group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS102, being 01 November 2015. |
Valuation of investments |
Investment in subsidiaries are measured at cost less accumulated impairment. |
Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognized in the Consolidated Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment. |
Investments in listed company shared are remeasured to market value at each Balance Sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period. |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value asset tax and other sales taxes. |
Sale of goods |
Revenue from the sale of good is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods. |
Goodwill |
Goodwill is recognised at cost initially, being amortised evenly over its estimated useful life of no more than 10 years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. |
Tangible fixed assets |
Freehold property | - |
Plant & machinery | - |
Fixtures & fittings | - |
Motor vehicles | - |
The assets' residual values, useful life and depreciation methods are reviewed, and adjusted prospectively if appropriate, or it there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Income Statement. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is defined as the expenditure which has been incurred in the normal course of business in bridging the product to its present location and condition. Net realisable value is the actual or estimated selling price less all further costs to completion and all costs to be incurred in marketing, selling and distributing |
Interest income |
Interest income is recognised in the Consolidated Income Statement using the effective interest method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Finance costs |
Finance costs are charged to the Consolidated Income Statement over the term of the debt using the effective interest method so that the amount changed is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. |
Dividends |
Equity dividends are recognised when they become legally payable. Interm equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the Balance Sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the Consolidated Income Statement over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to the Consolidated Income Statement on a straight line basis over the period of the lease. |
Holiday pay accrual |
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date. |
Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transactional price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each Balance Sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit and loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease |
Cash and cash equivalents |
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
3. | CRITICAL ACCOUNTING JUDGEMENTS & AREAS OF ESTIMATION UNCERTAINTY |
When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. The following are significant management judgements in applying the accounting policies of the group that have the most significant effect on the financial statements. |
Allowance for impairment of trade debtors |
The group estimated the allowance for doubtful trade debtors based on assessment of specific accounts where the group has objective evidence comprising default in payment terms or significant financial difficulty that certain customers are unable to meet their financial obligations. In these cases, judgment used was based on the best available facts and circumstances included but not limited to, the length of the relationship. |
Useful lives of depreciable assets |
The annual depreciation charge depends primarily on the estimated lives of each type of asset, in certain circumstances, estimates of fair values and residual values. The directors annually review these asset lives and adjust them as necessary to reflect current thinking on remaining lives in light of technological change, prospective economic utilisation and physical condition for the period. It is not practical to quantify the impact of changes in asset lives on an overall basis, as asset lives are individually determined, and there are a significant number of asset lives in use. The impact of any change would vary significantly depending on individual changes in assets and the classes of asset impacted. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2022 | 2021 |
£ | £ |
Sale of goods | 49,246,892 | 35,755,982 |
49,246,892 | 35,755,982 |
An analysis of turnover by geographical market is given below: |
2022 | 2021 |
£ | £ |
United Kingdom | 49,246,892 | 35,755,982 |
49,246,892 | 35,755,982 |
5. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 1,602,683 | 1,262,751 |
Social security costs | 160,588 | 129,761 |
Other pension costs | 107,266 | 137,821 |
1,870,537 | 1,530,333 |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2022 | 2021 |
Management | 2 | 2 |
Sales & Administration | 16 | 14 |
Production & Distribution | 25 | 25 |
Cleaning | 2 | - |
2022 | 2021 |
£ | £ |
Director's remuneration | 30,000 | 30,000 |
Director's pension | 38,900 | 37,900 |
68,900 | 67,900 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2022 | 2021 |
£ | £ |
Depreciation - owned assets | 873,894 | 756,913 |
Depreciation - assets on hire purchase contracts | 31,332 | 86,280 |
Profit on disposal of fixed assets | (5,997 | ) | (21,500 | ) |
Auditors' remuneration | 13,200 | 12,600 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Loan interest | 11,610 | 11,494 |
Hire purchase interest | 2,771 | 3,475 |
Factoring charges & interest | 59,677 | 47,670 |
74,058 | 62,639 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 820,520 | 273,918 |
Deferred tax | (30,022 | ) | (588 | ) |
Tax on profit | 790,498 | 273,330 |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before tax | 4,527,201 | 1,839,345 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
860,168 |
349,476 |
Effects of: |
Expenses not deductible for tax purposes | 295 | - |
Capital allowances in excess of depreciation | - | (14,282 | ) |
Depreciation in excess of capital allowances | 540 | - |
Adjustments to tax charge in respect of previous periods | (45,197 | ) | - |
Deferred tax | - | (588 | ) |
Enhanced tax relief on qualifying expenditure | (25,308 | ) | (61,276 | ) |
Total tax charge | 790,498 | 273,330 |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
The profit after tax of the parent Company for the year was £4,746,162 (2021 - £1,250,013). |
10. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Interim | 115,000 | 110,000 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 November 2021 |
and 31 October 2022 | 127,500 |
AMORTISATION |
At 1 November 2021 |
and 31 October 2022 | 127,500 |
NET BOOK VALUE |
At 31 October 2022 | - |
At 31 October 2021 | - |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
12. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Plant & | Fixtures | Motor |
property | machinery | & fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 November 2021 | 731,571 | 6,117,388 | 95,859 | 536,239 | 7,481,057 |
Additions | 19,779 | 533,368 | 4,381 | 120,755 | 678,283 |
Disposals | - | (50,750 | ) | - | (57,830 | ) | (108,580 | ) |
At 31 October 2022 | 751,350 | 6,600,006 | 100,240 | 599,164 | 8,050,760 |
DEPRECIATION |
At 1 November 2021 | 274,195 | 3,437,594 | 69,952 | 360,618 | 4,142,359 |
Charge for year | 37,592 | 802,044 | 13,399 | 52,191 | 905,226 |
Eliminated on disposal | - | (22,838 | ) | - | (26,291 | ) | (49,129 | ) |
At 31 October 2022 | 311,787 | 4,216,800 | 83,351 | 386,518 | 4,998,456 |
NET BOOK VALUE |
At 31 October 2022 | 439,563 | 2,383,206 | 16,889 | 212,646 | 3,052,304 |
At 31 October 2021 | 457,376 | 2,679,794 | 25,907 | 175,621 | 3,338,698 |
Cost or valuation at 31 October 2022 is represented by: |
Freehold | Plant & | Fixtures | Motor |
property | machinery | & fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2021 | (487,971 | ) | - | - | - | (487,971 | ) |
Cost | 1,239,321 | 6,600,006 | 100,240 | 599,164 | 8,538,731 |
751,350 | 6,600,006 | 100,240 | 599,164 | 8,050,760 |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant & | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 November 2021 | 603,202 | 135,000 | 738,202 |
Disposals | (50,750 | ) | - | (50,750 | ) |
Transfer to ownership | (343,575 | ) | (135,000 | ) | (478,575 | ) |
At 31 October 2022 | 208,877 | - | 208,877 |
DEPRECIATION |
At 1 November 2021 | 224,400 | 115,660 | 340,060 |
Charge for year | 31,332 | - | 31,332 |
Eliminated on disposal | (22,838 | ) | - | (22,838 | ) |
Transfer to ownership | (167,958 | ) | (115,660 | ) | (283,618 | ) |
At 31 October 2022 | 64,936 | - | 64,936 |
NET BOOK VALUE |
At 31 October 2022 | 143,941 | - | 143,941 |
At 31 October 2021 | 378,802 | 19,340 | 398,142 |
13. | FIXED ASSET INVESTMENTS |
Company |
Other |
investments |
£ |
COST |
At 1 November 2021 |
and 31 October 2022 |
NET BOOK VALUE |
At 31 October 2022 |
At 31 October 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Mason's Animal Feeds Limited |
Registered office: |
Nature of business: Manufacture of prepared feeds for farm animals |
% |
Class of shares: | holding |
Ordinary | 100.00 |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
14. | STOCKS |
Group |
2022 | 2021 |
£ | £ |
Raw materials and goods for |
resale | 1,541,157 | 1,574,981 |
1,541,157 | 1,574,981 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 7,902,767 | 5,561,341 |
Amounts owed by group undertakings | - | - |
Other debtors | 344,907 | 314,161 |
VAT | 372,741 | 357,116 |
Prepayments and accrued income | 87,577 | 75,233 |
8,707,992 | 6,307,851 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 1,692,615 | 948,275 |
Hire purchase contracts (see note 19) | 64,797 | 99,401 |
Trade creditors | 2,419,029 | 2,336,391 |
Corporation tax | 865,717 | 382,809 |
Social security and other taxes | 57,548 | 24,931 |
VAT | - | - | 512,754 | 69,160 |
Directors' current accounts | 45,638 | 29,797 | 45,638 | 29,797 |
Accruals | 77,854 | 87,088 |
5,223,198 | 3,908,692 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2022 | 2021 |
£ | £ |
Bank loans (see note 18) | 669,345 | 847,925 |
Hire purchase contracts (see note 19) | 51,614 | 91,776 |
720,959 | 939,701 |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2022 | 2021 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 1,513,765 | 769,425 |
Bank loans | 178,850 | 178,850 |
1,692,615 | 948,275 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 178,850 | 178,850 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 490,495 | 669,075 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2022 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year | 64,797 | 99,401 |
Between one and five years | 51,614 | 91,776 |
116,411 | 191,177 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2022 | 2021 |
£ | £ |
Bank overdrafts | 1,513,765 | 769,425 |
Bank loans | 848,195 | 1,026,775 |
2,361,960 | 1,796,200 |
Bank Loans and overdrafts are secured by legal charges over the group's premises and book debts, together with a charge over keyman insurance policy and a guarantee from the group's director, and a cross company guarantee. |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
21. | FINANCIAL INSTRUMENTS |
Financial assets that are debt instruments measured at amortised cost comprise trade debtors, other debtors & cash and cash equivalents. |
Financial liabilities measured at amortised cost comprise trade creditors, accruals, bank overdrafts & bank loans. |
22. | PROVISIONS FOR LIABILITIES |
Group |
2022 | 2021 |
£ | £ |
Deferred tax | 336,349 | 366,371 |
Group |
Deferred |
tax |
£ |
Balance at 1 November 2021 | 366,371 |
Movement during year | (30,022 | ) |
Balance at 31 October 2022 | 336,349 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
24. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 November 2021 | 8,850,296 |
Profit for the year | 3,736,703 |
Dividends | (115,000 | ) |
At 31 October 2022 | 12,471,999 |
25. | RELATED PARTY DISCLOSURES |
The group has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
CP ANIMAL FEEDS LIMITED (REGISTERED NUMBER: NI618810) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
25. | RELATED PARTY DISCLOSURES - continued |
FRS102 Section 33.6 required the group to disclose remuneration of all key personnel. Total remuneration to key personnel during the year totalled £68,900 (2021: £67,900). |
26. | CONTINGENT LIABILITIES |
The director confirms that neither the group nor the company has no contingent liabilities at the year end. (2021: £NIL) |
27. | CAPITAL COMMITMENTS |
At 31 October 2022 the group had capital commitments of £NIL (2021: £NIL) in respect of ongoing office improvements. |
28. | PENSION COMMITMENTS |
The group operates a defined contribution pension scheme for all employees. The assets of the schemes are held separately from those of the group. The total cost for the group for the year was £107,266 (2021: £103,821). |
29. | CONTROLLING PARTY |
CP Animal Feeds Limited is under the ultimate control of Mr C Purdy & Mrs G Purdy. |