Registered number:
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
COMPANY INFORMATION
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OAKLANDS FARM EGGS LIMITED
CONTENTS
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OAKLANDS FARM EGGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
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.
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.
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OAKLANDS FARM EGGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
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.
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.
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OAKLANDS FARM EGGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
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.
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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.
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.
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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.
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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.
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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.
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 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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).
The directors who served during the year were:
Please refer to the Strategic report for details of financial risk management and future developments.
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OAKLANDS FARM EGGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
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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.
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OAKLANDS FARM EGGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
There have been no significant events affecting the Company since the year end.
The auditors, WR Partners, will 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.
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OAKLANDS FARM EGGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OAKLANDS FARM EGGS LIMITED
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 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).
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.
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.
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OAKLANDS FARM EGGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OAKLANDS FARM EGGS LIMITED (CONTINUED)
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.
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.
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.
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OAKLANDS FARM EGGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OAKLANDS FARM EGGS LIMITED (CONTINUED)
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.
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OAKLANDS FARM EGGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF OAKLANDS FARM EGGS LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Belmont House
Shrewsbury Business Park
Shropshire
SY2 6LG
Date:
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OAKLANDS FARM EGGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
REGISTERED NUMBER: 00725104
BALANCE SHEET
AS AT 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
REGISTERED NUMBER: 00725104
BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 40 form part of these financial statements.
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OAKLANDS FARM EGGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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
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:
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.
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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.
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (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:
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.
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.
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
Functional and presentation currency
Transactions and balances
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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.
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
2.Accounting policies (continued)
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).
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
10.Taxation (continued)
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%.
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Profit & loss account
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.
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OAKLANDS FARM EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
The Company is controlled by the directors by virtue of their shareholdings.
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