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Registered number: 00725104










OAKLANDS FARM EGGS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

 
OAKLANDS FARM EGGS LIMITED
 
 
COMPANY INFORMATION


Directors
J A Griffiths 
E Griffiths 
G J Griffiths 
J Griffiths 




Company secretary
E Griffiths



Registered number
00725104



Registered office
Ellerdine Grange
Ellerdine

Telford

Shropshire

TF6 6QR




Independent auditors
WR Partners
Chartered Accountants & Statutory Auditors

Belmont House

Shrewsbury Business Park

Shrewsbury

Shropshire

SY2 6LG





 
OAKLANDS FARM EGGS LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 6
Directors' report
 
7 - 10
Independent auditors' report
 
11 - 14
Statement of comprehensive income
 
15
Balance sheet
 
16 - 17
Statement of changes in equity
 
18
Statement of cash flows
 
19 - 20
Notes to the financial statements
 
21 - 40


 
OAKLANDS FARM EGGS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Principal Activities
 
The principal activities of Oaklands Farm Eggs Limited ('the Company') during the year were the rearing of pullets, the rearing of free range multi-tier point of lay pullets, the production of colony egg, the purchase of contracted free range and organic eggs, the production of cage free barn eggs and the grading, packing and marketing of eggs in shell and liquid forms. 

Business review
 
It is important to note there is no legal requirement for the move to cage free barn production. However, the Company believe to maintain a competitive advantage the business should offer a choice of all four legal production systems to be able to supply across all customer requirements.
We are confident that whilst we are well invested in the latest technology and automation, we will be well placed to face ongoing market challenges due to the impact of the war in Ukraine, Avian Influenza, inflation, and a declining flock base as we produce eggs ourselves. Phase two of the conversion project is coming to fruition and will take the Company to one million cage free birds which will place the Company well ahead of any retailer expectation. Historically, the Company has led in colony conversion and the directors are confident the Company will be well placed and in a good position to do this again with cage free. Whilst the directors recognise the turnaround in profit, they are focussed on delivering long term sustainable returns for the next ten to fifteen years. 
The Company continues to build on its environmental credentials in terms of energy production through the use of solar power and biomass boilers, rainwater recycling, and other green energies. Its sister company has invested in a 5MW manure burner which will deliver a return during the 2023/24 financial year.
Post year end trading performance is strong and the business has strategically moved its supply across a number of sectors (discounters, retailers, wholesalers and foodservice).  This change in direction has seen an improvement in egg prices which is providing sustainability going forward.  We continue to work with our customers on a cost of production model and their support has been excellent.

Page 1

 
OAKLANDS FARM EGGS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Principal risks and uncertainties
 
The risks facing the Company are constantly monitored. The directors are of the opinion that the principal risks facing the Company relate to factors such as:
Ongoing market pressure on supply & demand and sustainable cost of production
The outbreak of war in Ukraine caused a sharp increase in the price of feed which has seen wheat and soya reach unprecedented levels, although we have seen them reduce post year end. Ukraine is one of the largest producers of grain and this has had a worldwide impact. Ukraine is also a big producer of eggs for the export market, and this has tightened egg availability throughout Europe.
Due to a lack of support over several years in UK egg production the market will be short of eggs as producers have been reluctant to invest on the back of poor returns for several years.
The directors monitor this risk and mitigate this through withdrawing from markets which are in the opinion of the directors not considered to be sustainable.
Global avian influenza
The continuance of migratory birds increases the risk to the Company of the avian influenza. This is mitigated through the Company producing cage free barns “in house” which reduces this risk greatly. The majority of free range egg producers are also geographically spaced out which also helps in reducing this risk.
Feed, fuel and packaging price volatility
The ongoing prices for feed, fuel and packaging are difficult to forecast and therefore can have an impact on the profit of the Company. The Company is exploring options for covering feed internally where possible. All packaging is sourced from the EU as a result of no capability in the UK currently for this to be provided and this is giving us challenges with price and surety of supply.
 

Financial key performance indicators
 
The Company measures its financial performance and position by reference to key performance indicators. Some of the key performance indicators used by the business are set out below:
    2023
    £ 
Turnover   87,891,516  Turnover increased by 43.6% when compared with the previous          year which came as no surprise to the directors. This was driven          by a change in the customers supplied as we changed our                                              strategic focus, increased our invoice prices on all egg types and          converted sales from colony to barn. 
Operating Profit  4,435,796  Operating profit increased this year in line with expectations as we         re-aligned our supply with demand. The market also became very         tight in the second half of the year increasing pricing to sustainable        levels.           


Page 2

 
OAKLANDS FARM EGGS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Non Financial key performance indicators
 
Quality and service 
The directors remain committed to the highest level of compliance with all legislation and especially Lion Quality to ensure food safety, independent approved and unannounced audits by BRC, Organic and the RSPCA. All areas of public liability as well as all aspects of the supply chain are covered by appropriate insurances. The directors continue to invest in transport to ensure all products are delivered with minimum environmental impact.
Land and buildings
Our land based farming business continues to be carried at cost in the accounts. Land values continue to hold at very high levels and it is the directors' opinion that the market value of these assets is some 3 to 5 times higher than the carrying value at cost.
Future developments
The directors are committed to, and will continue to lead on, cage free rear and laying activities as well as continuing to lead in robotics and automation. As well as this, the Company has invested in new processing equipment as part of its response to Brexit and to give the market greater capacity and competition for British ingredients as demanded by the consumers. 
The Company will benefit by having access to a 5MW facility to burn manure and this will save ammonia and produce valuable phosphate and potash and generate green energy to future proof the Company.
We continue to take a long term view to farming, the environment and food production in what the directors consider an aggressive short term market.
The Company has set a robust 5 year strategic plan that is designed to de risk this business through strong collaborative relationships with key customers, whilst aligning supply & demand to ensure we don’t carry excessive amounts of surplus egg. In doing this we have seen an improvement in egg prices which is providing a sustainable platform for the business. 
The directors will continue to support the Company to reach their ambitious plans to be the leading environmental and welfare based production egg business.
Financial Risk Management
The Company's operations expose it to a variety of financial risks that include credit risk, liquidity risk and interest rate cash flow risk. The Company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the Company by monitoring levels of debt finance and the related finance costs.
Credit Risk
The Company monitors debtors regularly through review of aged debtor balances and ensuring that cash is collected within agreed terms.
Liquidity Risk
The Company actively maintains a mixture of medium term and short term debt finance that is designed to ensure that it has sufficient available funds for operations and any planned expansions. The Company has new banking facilities in place and is fully funded and supported by the bank in pursuing its strategic objectives.
 
Page 3

 
OAKLANDS FARM EGGS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Interest rate cash flow risk
The Company has interest bearing liabilities in the form of bank and financing facilities. Interest cash flows are monitored on a regular basis and interest rates are agreed at fixed rates where possible to ensure the certainty of future cash flows.

Directors' statement of compliance with duty to promote the success of the Company
 
Section 172(1) Statement and Statements on engagement with employees, suppliers, customers and others
This Section acts as the Company’s Section 172(1) statement. In accordance with the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008 (as amended by the Companies (Miscellaneous Reporting) Regulations 2018), this section also constitutes the Company’s statements on engagement with, and having due regard to the interest of our employees, suppliers, customers and other key stakeholders.
The directors consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole in the decisions taken during the year ended 31 March 2023.
Decision-making at the Board
All matters which are reserved for decision by the directors are presented at Board meetings. Directors are briefed on any potential impacts and risks for our customers, employees and other stakeholders including our suppliers, the community and environment and how they are to be managed. The directors take these factors into account before making a final decision which together they believe is in the best interests of the Company.
Stakeholders
Our key stakeholders are our employees, who are the heart of our purposes and work in service of our customers. We are focused on responding to the needs of, and building long-term relationships with, our customers. Other key stakeholders are the producers and suppliers from whom we purchase goods and services, and the communities in which we operate.
By ensuring that a quality, informed supply base delivers, this enables our dedicated staff to deliver to our customers, who are key to the Company.
Long-term sustainability
We aim to make sufficient profits to sustain the Company’s commercial vitality. This is balanced against the needs of our customers, employees and other stakeholders and the community to ensure we are conducting all our business relationships with integrity. The long-term sustainability of the Company is at the forefront of decision-making. 
It is essential to the Company that our supply base has a sustainably supported cost base, coupled with being the most efficient environmentally friendly packer and distributor. It is at the heart of our policy making in these challenging markets of retail and food service to ensure the long-term sustainability of the Company.
 
Page 4

 
OAKLANDS FARM EGGS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Employees
Our team members are fundamental to the delivery of our plan.  We aim to be a responsible employer in our approach to the pay and benefits our team members receive. The health, safety and well-being of our team members is one of our primary considerations in the way we do business. 
We continue to invest in robotics and technology to improve our staff workload and increasing output per employee. The Company has a focus on ensuring improved working conditions and training, through regular staff and management exchange of information via team briefs, which is fundamental to the Company’s goals and objectives.
New farm initiatives introduced by the Company mean every member of staff will get independently verified and industry recognised training with continuous improvements plans. Staff handbooks and news letters are issued and updated on the Company website which are key communication tools between the Company and our employees.
We are an open, equal opportunities employer where race, creed, colour and gender are all irrelevant. The Company prides itself on employing people as individuals based on their skills, abilities and outputs.
Customers and suppliers
Engagement with suppliers and customers is key to our success. We work closely with our supply chain and take the appropriate action, when necessary, to prevent involvement in modern slavery, corruption, bribery and breaches of competition law.
Supplier engagement is essential to understand the requirements and standards needed to meet our customer expectations. Every customer complaint is investigated, reported and trend analysed for continual improvement in the Company.
The directors ensure compliance with all legislation and specific customer specification to ensure all needs are met.
Financial stakeholders
The Company seeks to make its financial information available to its financial stakeholders, including our relationship bank, as part of information provided about and by the Company. Regular detailed and appropriate information is shared monthly with relevant parties to ensure timely and affective decisions can be made.
Community and environment
As the Board of directors, our intention is to behave responsibly and ensure that the management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours. The intention is to nurture our reputation, through the delivery of our objectives that reflects our responsible behaviour.
As farmers first and foremost, the environment and welfare of our livestock are the basis of our business. With efficient use of finite resources, air, water and feed are at the heart of the Company’s policy for a truly sustainable future.
 
Page 5

 
OAKLANDS FARM EGGS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Business conduct
Our core family values are the basis of the Company’s business relationships to conduct them with integrity and courtesy to scrupulously honour every business agreement.


This report was approved by the board and signed on its behalf.



E Griffiths
Director

Date: 18 October 2023

Page 6

 
OAKLANDS FARM EGGS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Results and dividends

The profit for the year, after taxation, amounted to £2,576,286 (2022 - loss £7,833,240).

Dividends for the year amounted to £120,000 (2022 - £120,000).

Directors

The directors who served during the year were:

J A Griffiths 
E Griffiths 
G J Griffiths 
J Griffiths 

Matters covered in the Strategic report

Please refer to the Strategic report for details of financial risk management and future developments.

Page 7

 
OAKLANDS FARM EGGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


Greenhouse gas emissions, energy consumption and energy efficiency action

The below data represents our United Kingdom carbon footprint across Scope 1 and 2 emissions. It also includes an appropriate intensity metric, our total electricity, gas and transport fuel energy use, and a summary of the energy efficiency actions taken in the relevant financial year.
UK Greenhouse gas emissions and energy use data for the period 1 April 2022 to 31 March 2023
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Page 8

 
OAKLANDS FARM EGGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Energy Efficiency Actions
Due to business restructuring the efficiency of conversion has declined. Over the past year the laying houses have changed their system of production from colony to barn (cage free). 
Due to this conversation less, eggs have been produced but the new system has higher energy usage therefore resulting in energy inefficiency. The barn systems are less efficient than the colony, using more power and energy per unit of egg output. 
The site is still being converted and so we will need to set a new base year to measure ourselves against due to having a new system of production which is so different to our previous one. It must be noted that this investment in perceived higher animal welfare has resulted in far more energy being needed to produce a unit of output (eggs).
Our sister company based on the main production site will be generating green energy via manure burning and this electricity will benefit us over the next 18 years.
We continue to endeavour to educate our customers and the public on the advantages of plastic recycled egg packs to replace high energy usage fibre egg packs. To help efficiencies we work with our customers to consolidate loads and the use of back haul options to all help efficiencies.
 

Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2022 UK Government's Conversion Factors for Company Reporting. We have used data collected specifically for the purpose of SECR reporting.

Page 9

 
OAKLANDS FARM EGGS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsWR Partnerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





E Griffiths
Director

Date: 18 October 2023

Page 10

 
OAKLANDS FARM EGGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OAKLANDS FARM EGGS LIMITED
 

Opinion


We have audited the financial statements of Oaklands Farm Eggs Limited (the 'Company') for the year ended 31 March 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 31 March 2023 and of its 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 11

 
OAKLANDS FARM EGGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OAKLANDS FARM EGGS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Opinion 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 Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 7, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 12

 
OAKLANDS FARM EGGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OAKLANDS FARM EGGS LIMITED (CONTINUED)


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 an Auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, Health and Safety Regulations, Food Hygiene and Quality Standards and the EU General Data Protection Regulation (GDPR). 
We understood how the Company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures. We also reviewed board minutes to identify any recorded instances of irregularity or non compliance that might have a material impact on the financial statements. 
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was susceptibility to fraud. Based on our understanding our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.


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.


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 Auditors' report.


Page 13

 
OAKLANDS FARM EGGS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OAKLANDS FARM EGGS LIMITED (CONTINUED)


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 2006Our 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 Auditors' 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.





John Fletcher BA (Hons) FCA (Senior statutory auditor)
  
for and on behalf of
WR Partners
 
Chartered Accountants
Statutory Auditors
  
Belmont House
Shrewsbury Business Park
Shrewsbury
Shropshire
SY2 6LG

 
Date: 
20 October 2023
Page 14

 
OAKLANDS FARM EGGS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
87,891,516
61,218,625

Cost of sales
  
(72,557,752)
(57,191,841)

Gross profit
  
15,333,764
4,026,784

Distribution costs
  
(3,571,807)
(3,098,772)

Administrative expenses
  
(7,326,161)
(6,395,701)

Operating profit/(loss)
 5 
4,435,796
(5,467,689)

Interest payable and similar expenses
 9 
(1,663,181)
(758,396)

Profit/(loss) before tax
  
2,772,615
(6,226,085)

Tax on profit/(loss)
 10 
(196,329)
(1,607,155)

Profit/(loss) for the financial year
  
2,576,286
(7,833,240)

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 21 to 40 form part of these financial statements.

Page 15

 
OAKLANDS FARM EGGS LIMITED
REGISTERED NUMBER: 00725104

BALANCE SHEET
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
1
1

Tangible assets
 13 
35,349,958
30,015,982

Investments
 14 
42,005
42,005

  
35,391,964
30,057,988

Current assets
  

Stocks
 15 
7,304,552
5,536,097

Debtors: amounts falling due within one year
 16 
11,699,881
9,699,681

Cash at bank and in hand
 17 
1,015,453
46,239

  
20,019,886
15,282,017

Creditors: amounts falling due within one year
 18 
(17,838,049)
(14,364,207)

Net current assets
  
 
 
2,181,837
 
 
917,810

Total assets less current liabilities
  
37,573,801
30,975,798

Creditors: amounts falling due after more than one year
 19 
(20,341,366)
(17,901,508)

Provisions for liabilities
  

Deferred tax
 22 
(5,866,830)
(4,164,971)

  
 
 
(5,866,830)
 
 
(4,164,971)

Net assets
  
11,365,605
8,909,319

Page 16

 
OAKLANDS FARM EGGS LIMITED
REGISTERED NUMBER: 00725104
    
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Capital and reserves
  

Called up share capital 
 23 
20,150
20,150

Profit and loss account
 24 
11,345,455
8,889,169

  
11,365,605
8,909,319


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




E Griffiths
Director

Date: 18 October 2023

The notes on pages 21 to 40 form part of these financial statements.

Page 17

 
OAKLANDS FARM EGGS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 April 2021
20,150
16,842,409
16,862,559


Comprehensive income for the year

Loss for the year
-
(7,833,240)
(7,833,240)
Total comprehensive income for the year
-
(7,833,240)
(7,833,240)


Contributions by and distributions to owners

Dividends: Equity capital
-
(120,000)
(120,000)


At 1 April 2022
20,150
8,889,169
8,909,319


Comprehensive income for the year

Profit for the year
-
2,576,286
2,576,286
Total comprehensive income for the year
-
2,576,286
2,576,286


Contributions by and distributions to owners

Dividends: Equity capital
-
(120,000)
(120,000)


Total transactions with owners
-
(120,000)
(120,000)


At 31 March 2023
20,150
11,345,455
11,365,605


The notes on pages 21 to 40 form part of these financial statements.

Page 18

 
OAKLANDS FARM EGGS LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
2,576,286
(7,833,240)

Adjustments for:

Depreciation of tangible assets
3,117,830
3,343,702

Loss on disposal of tangible assets
193,786
1,498

Interest paid
1,663,181
758,396

Taxation charge
196,329
1,607,155

(Increase)/decrease in stocks
(1,768,455)
1,335,927

(Increase) in debtors
(1,603,636)
(1,459,007)

Increase/(decrease) in creditors
849,965
(2,154,707)

Corporation tax received
1,108,966
-

Net cash generated from operating activities

6,334,252
(4,400,276)


Cash flows from investing activities

Purchase of tangible fixed assets
(8,649,592)
(4,527,535)

Sale of tangible fixed assets
4,000
162,865

HP interest paid
(240,260)
(194,337)

Net cash from investing activities

(8,885,852)
(4,559,007)
Page 19

 
OAKLANDS FARM EGGS LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of loans
(269,999)
(1,848,467)

Other new loans
7,746,632
12,645,338

Repayment of/new finance leases
(1,369,505)
(881,920)

Dividends paid
(120,000)
(120,000)

Interest paid
(1,422,921)
(564,059)

Net cash used in financing activities
4,564,207
9,230,892

Net increase in cash and cash equivalents
2,012,607
271,609

Cash and cash equivalents at beginning of year
(2,351,492)
(2,623,101)

Cash and cash equivalents at the end of year
(338,885)
(2,351,492)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,015,453
46,239

Bank overdrafts
(1,354,338)
(2,397,731)

(338,885)
(2,351,492)


The notes on pages 21 to 40 form part of these financial statements.

Page 20

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Oaklands Farm Eggs Limited is a private company, limited by shares, incorporated in England and Wales and domiciled in the United Kingdom. The registered office is disclosed on the Company Information page. The principal activity of the business is the sale of eggs and other poultry products.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors implemented 5-year strategic plan in January 2022 that has been designed to de-risk the business whilst strategically aligning to its core customer base. This process involved looking at the current economic environment including the circumstances known at the time and which the Company operates. This plan has been built with the flexibility to evolve should circumstances arise that are outside of the companies / market control, and this was stress tested early with the Ukraine War.  
The Company implemented a mechanism to recover inflation mainly driven by the sharp increase in feed costs which provides more certainty. Post year end we have improved our price position by circa 12.5% which provides us with a sustainable platform to drive the business forward. 
The Company continues to utilise banking facilities for the financing of its working capital and future projects, together with loans from related parties, to ensure that there are sufficient resources available for the Company to meet its liabilities as they fall due. The Company has a structured finance package including Term Loans, Asset Finance and a Confidential Invoice Finance facility and has recently reviewed its facilities to ensure they are sufficient for its current and future requirements. 
The Company has a significant asset base which is not fully represented by the historical cost values included in the accounts. The Company also has the full ongoing support of its directors and shareholders. 
As a result of these considerations, at the time of approving the financial statements, the directors consider that the Company has sufficient resources to continue in operational existence for the foreseeable future and accordingly have prepared the accounts on the going concern basis.

Page 21

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the profit and loss account over its useful economic life of 5 years.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 22

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.5
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
Various from 1.67% to 10%
Plant & Machinery
-
Various from 1.07% to 33.33%
Motor Vehicles
-
14.28%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if 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 profit or loss.

 
2.6

Valuation of investments

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.7

Stocks

The Company has several different types of stocks that it holds and therefore the valuation policies differ for each.
Pullet rearing birds are valued based on the purchase price of a chick and costs of rearing them to laying hen stage (between 15 and 21 weeks) to include labour, feed, vaccinations and other attributable overheads. A value is assigned to the birds based on their age in weeks.
Laying hen stocks are birds that are starting to lay eggs. Initially their cost is determined by the pullet rearing policy, as noted above. Once the hens become layers, an incremental decrease in value is given for each week of life to reach the net realisable value of £NIL when the hens are 70 weeks old.
Egg stocks are stated at selling price less a 25% reduction to arrive at the cost price. The 25% relates to the costs incurred by the Company to get the product ready for sale therefore including labour and attributable overheads.
Feed, fuel and packaging stocks are stated at the lower of cost and net realisable value. Cost is based on the cost of purchase.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the profit and loss account.

Page 23

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.9

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.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.10

Financial instruments

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Page 24

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.12

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.13

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.14

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged 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.

Page 25

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.16

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.17

Pensions

Defined contribution pension plan

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

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

 
2.18

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance sheet.

Page 26

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.20

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, be definition, seldom equal the related actual results. In the opinion of the directors the estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are disclosed below: 
Stock valuation of birds
Pullet rearing birds are valued based on the purchase price of a chick and costs of rearing them to laying hen stage (between 15 and 21 weeks) to include labour, feed, vaccinations and other attributable overheads. A value is assigned to the birds based on their age in weeks. The carrying value of pullet rearing birds in these financial statements is £551,320 (2022: £799,273).
Laying hen stocks are birds that are starting to lay eggs. Initially their cost is determined by the pullet rearing policy, as noted above. Once the hens become layers, an incremental decrease in value is given for each week of life to reach the net realisable value of £nil when the hens are 70 weeks old.The carrying value of pullet rearing birds in these financial statements is £5,411,257 (2022: £3,538,062).

Page 27

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Egg and other poultry products sales
87,891,516
61,218,625

87,891,516
61,218,625


All turnover arose in the United Kingdom.


5.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2023
2022
£
£

Exchange differences
11,995
7,084

Other operating lease rentals
594,009
622,019

(Profit)/loss on sale of tangible assets
193,786
1,498


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
18,600
15,350

Fees payable to the Company's auditors and their associates in respect of:

Management accounts services
31,850
28,100

All non-audit services not included above
2,900
2,600
Page 28

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
4,657,157
4,117,315

Social security costs
473,263
400,641

Cost of defined contribution scheme
89,650
83,958

5,220,070
4,601,914


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







166
169


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
40,741
60,673

Company contributions to defined contribution pension schemes
1,013
1,268

41,754
61,941


During the year retirement benefits were accruing to 1 director (2022 - 1) in respect of defined contribution pension schemes.

The directors constitute the key management personnel of the Company.

Page 29

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

9.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
662,674
207,410

Other loan interest payable
635,123
261,824

Finance leases and hire purchase contracts
240,260
194,337

Other interest payable
125,124
94,825

1,663,181
758,396


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
(793,410)
-

Adjustments in respect of previous periods
(712,120)
-


(1,505,530)
-


Total current tax
(1,505,530)
-

Deferred tax


Origination and reversal of timing differences
1,701,859
799,424

Changes to tax rates
-
807,731

Total deferred tax
1,701,859
1,607,155


Taxation on profit on ordinary activities
196,329
1,607,155
Page 30

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
2,772,615
(6,226,085)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
526,797
(1,182,956)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
33,311

Differences in tax rates
(90,718)
(30,682)

Deferred tax movements following changes to tax rates
-
807,731

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(1,505,530)
-

Book profit on chargeable assets
36,819
285

Changes in provisions leading to an increase (decrease) in the tax charge
2,213
2,211

Unrelieved tax losses carried forward
1,226,748
1,977,255

Total tax charge for the year
196,329
1,607,155


Factors that may affect future tax charges

The Company has Corporation Tax losses of £16,837,079 (2022: £13,008,960) available to offset against future trading profits.
From 1 April 2023 the main rate of Corporation Tax increased from 19% to 25% for companies in the United Kingdom with profits exceeding £250,000. As a result, deferred tax balances at 31 March 2023 have been calculated at 25%.

Page 31

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

11.


Dividends

2023
2022
£
£


Dividends paid - ordinary A shares
20,000
20,000


Dividends paid - ordinary B shares
90,000
90,000


Dividends paid - ordinary C shares
10,000
10,000

120,000
120,000


12.


Intangible assets




Goodwill

£



Cost


At 1 April 2022
109,330



At 31 March 2023

109,330



Amortisation


At 1 April 2022
109,329



At 31 March 2023

109,329



Net book value



At 31 March 2023
1



At 31 March 2022
1



Page 32

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Tangible fixed assets





Freehold property
Plant & Machinery
Motor Vehicles
Total

£
£
£
£



Cost or valuation


At 1 April 2022
7,594,466
57,971,750
803,414
66,369,630


Additions
55,498
8,586,694
7,400
8,649,592


Disposals
-
(741,217)
(20,000)
(761,217)



At 31 March 2023

7,649,964
65,817,227
790,814
74,258,005



Depreciation


At 1 April 2022
2,457,641
33,252,801
643,206
36,353,648


Charge for the year on owned assets
142,630
2,136,347
63,736
2,342,713


Charge for the year on financed assets
-
773,401
1,716
775,117


Disposals
-
(546,057)
(17,374)
(563,431)



At 31 March 2023

2,600,271
35,616,492
691,284
38,908,047



Net book value



At 31 March 2023
5,049,693
30,200,735
99,530
35,349,958



At 31 March 2022
5,136,825
24,718,949
160,208
30,015,982

Included in the freehold property above is land with a cost of £3,730,139 (2022: £3,730,139) which is not depreciated.

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
7,605,370
8,187,947

Motor vehicles
7,281
81,223

7,612,651
8,269,170

Page 33

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

14.


Fixed asset investments





Unlisted Investments

£



Cost or valuation


At 1 April 2022
42,005



At 31 March 2023
42,005





15.


Stocks

2023
2022
£
£

Raw materials and consumables
375,501
358,182

Work in progress (goods to be sold)
723,936
644,839

Finished goods and goods for resale
6,205,115
4,533,076

7,304,552
5,536,097



16.


Debtors

2023
2022
£
£


Trade debtors
8,895,079
7,663,111

Other debtors
574,578
528,037

Prepayments and accrued income
724,694
399,567

Tax recoverable
1,505,530
1,108,966

11,699,881
9,699,681


Page 34

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,015,453
46,239

Less: bank overdrafts
(1,354,338)
(2,397,731)

(338,885)
(2,351,492)



18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
1,354,338
2,397,731

Bank loans
4,341,875
-

Other loans
2,701,081
2,921,081

Trade creditors
6,709,054
6,157,763

Other taxation and social security
132,833
88,660

Obligations under finance lease and hire purchase contracts
1,284,686
1,739,291

Other creditors
139,375
114,184

Accruals and deferred income
1,174,807
945,497

17,838,049
14,364,207


The bank overdraft and invoice financing facility are secured via a number of fixed and floating charges over the various assets of the company. HSBC Bank plc, HSBC Invoice Finance and HSBC Asset Finance hold charges dated 27 February 2012, 17 January 2012 and 13 January 2012 over all land and assets of the company.
Obligations under hire purchase contracts are secured on the assets to which they relate.

Page 35

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

19.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
7,558,125
11,900,000

Other loans
11,280,186
3,583,553

Net obligations under finance leases and hire purchase contracts
1,268,055
2,182,955

Other creditors
235,000
235,000

20,341,366
17,901,508


The bank overdraft and invoice financing facility are secured via a number of fixed and floating charges over the various assets of the company. HSBC Bank plc, HSBC Invoice Finance and HSBC Asset Finance hold charges dated 27 February 2012, 17 January 2012 and 13 January 2012 over all land and assets of the Company.
Obligations under hire purchase contracts are secured on the assets to which they relate.

Page 36

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

20.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
4,341,875
-

Other loans
2,701,081
2,921,081


7,042,956
2,921,081

Amounts falling due 1-2 years

Bank loans
1,042,500
3,560,000

Other loans
1,911,281
50,000


2,953,781
3,610,000

Amounts falling due 2-5 years

Bank loans
3,127,500
3,127,500

Other loans
5,621,343
1,785,526


8,748,843
4,913,026

Amounts falling due after more than 5 years

Bank loans
3,388,125
5,212,500

Other loans
3,747,562
1,748,027

7,135,687
6,960,527

25,881,267
18,404,634


Bank loans are secured on various land and buildings owned by the Company. Loans are repayable in accordance with the ageing schedule above and interest is payable at between 3.75% and 4.5% above the Bank of England Base Rate. 
Other loans are secured on various land and buildings owned by the Company. Loans are repayable in accordance with the ageing schedule above and interest is payable at rates of between 3.5% over EURIBOR and 4.9%. 
Other loans include a loan with a related party as disclosed in note 28.

Page 37

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
1,284,686
1,739,291

Between 1-2 years
742,550
1,089,283

Between 2-5 years
525,505
1,093,672

2,552,741
3,922,246


22.


Deferred taxation




2023


£






At beginning of year
(4,164,971)


Charged to profit or loss
(1,701,859)



At end of year
(5,866,830)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(5,866,830)
(4,164,971)

(5,866,830)
(4,164,971)


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



20,000 (2022 - 20,000) Ordinary A shares shares of £1.00 each
20,000
20,000
100 (2022 - 100) Ordinary B shares shares of £1.00 each
100
100
50 (2022 - 50) Ordinary C shares shares of £1.00 each
50
50

20,150

20,150


Page 38

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

24.


Reserves

Profit & loss account

The profit and loss account represents the accumulated profits of the Company since incorporation less distributions made to shareholders.

25.


Analysis of net debt




At 1 April 2022
Cash flows
At 31 March 2023
£

£

£

Cash at bank and in hand

46,239

969,214

1,015,453

Bank overdrafts

(2,397,731)

1,043,393

(1,354,338)

Debt due after 1 year

(15,483,553)

(3,354,758)

(18,838,311)

Debt due within 1 year

(3,035,265)

(4,147,062)

(7,182,327)

Finance leases

(3,922,246)

1,369,505

(2,552,741)


(24,792,556)
(4,119,708)
(28,912,264)


26.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £89,650 (2022: £83,958). Contributions totalling £23,285 (2022: £11,637) were payable to the fund at the balance sheet date and are included in creditors.


27.


Commitments under operating leases

At 31 March 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
491,236
528,176

Later than 1 year and not later than 5 years
540,189
962,425

1,031,425
1,490,601

Page 39

 
OAKLANDS FARM EGGS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

28.


Related party transactions

Sales made to J A & O Griffiths & Sons, a partnership in which Mr J A Griffiths is a partner, amounted to £119,732 (2022: £122,905). The debtor owed to Oaklands Farm Eggs Limited amounted to £33,947 (2022: £16,290).
Purchases made from J A & O Griffiths & Sons amounted to £3,373,736 (2022: £1,168,475). The creditor owed by Oaklands Farm Eggs Limited amounted to £384,574 (2022: £356,411).
Included within Other Loans is a loan from J A & O Griffiths for £2,651,081 (2022: £2,871,081). Interest is charged on this loan at 6.95% per annum.
Included within Other Creditors due after more than one year is a loan from JA Griffiths Discretional Trust for £235,000 (2022: £235,000). Interest is charged on this loan at 2.5% per annum. 
During the year Oaklands Farm Eggs Limited had expenditure of £14,039 (2022: £11,060) with the JA Griffiths Discretional Trust (a trust where one of the directors of the Company is a trustee). The creditor owed by Oaklands Farm Eggs Limited amounted to £nil (2022: £2,089).
Sales made to Griffiths Family Foods Limited, a company in which Mr E Griffiths and Mr G J Griffiths are shareholders and directors, amounted to £3,455,232 (2022: £999,868). Purchases amounted to £10,133 (2022: £nil). The debtor owed to Oaklands Farm Eggs Limited amounted to £2,003,612 (2022: £1,198,966).
During the year the Company operated loan accounts on behalf of the directors. At the year end £116,086 (2022: £102,547) was due from the Company to the directors and is shown within other creditors due within one year. 
Sales made to Griffiths Green Enterprise Limited, a company in which Mr E Griffiths, Mr G J Griffiths and Mr J Griffiths are shareholders and directors, amounted to £205,058 (2022: £85,179). The debtor owed to Oaklands Farm Eggs Limited amounted to £212,289 (2022: £26,214).


29.


Controlling party

The Company is controlled by the directors by virtue of their shareholdings.

 
Page 40