Registration number:
Denhay Farms Limited
for the Year Ended 31 March 2023
Denhay Farms Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Denhay Farms Limited
Company Information
Directors |
The Rt. Hon. H L A Hood Mr J P Loescher Mr S J Streatfeild Mr G H Streatfeild Mrs A C Streatfeild The Hon. J S Hood Mr D K Homan |
Company secretary |
Thrings Company Secretarial Limited |
Registered office |
|
Auditors |
|
Denhay Farms Limited
Strategic Report for the Year Ended 31 March 2023
The directors present their strategic report for the year ended 31 March 2023.
Principal activity
The principal activity of the company is Bacon Curing.
Fair review of the business
The company continued to concentrate on its core activities of bacon curing, slicing and packing at its factory in Honiton. Its focus remains on the production of premium quality dry-cured bacon. Reflecting the structure of the UK food chain, the company sells the bulk of its bacon to national supermarkets, though it also supplies smaller retailers and local businesses.
The company ceased its farming operations and disposed of the majority of farming-related assets in the comparative period. Income and expenditure relating to these discontinued operations is reported on the face of the Profit and Loss Account.
The company's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2023 |
2022 |
Turnover - continuing operations |
£ |
7,035,923 |
7,035,001 |
Gross profit margin - continuing operations |
% |
15 |
10 |
Profit/(loss) before tax - continuing operations |
£ |
589,071 |
288,479 |
Turnover from continuing operations remained consistent with the prior year. A change in promotional programs resulted in less volume being sold compared to the prior year but the company responded to significant cost inflation by increasing its selling prices.
Principal risks and uncertainties
Consumer Demand
A change in consumer behaviour or a deterioration to the UK economy could lead to a fall in demand for bacon products. To mitigate this risk the company works closely with its customers, and is able to adapt its product range to meet different price points or align with certain market trends.
Pig Meat Price and Availability
Although all pork is procured from the UK, changes in the global pig market could impact the price and availibility of UK pork.
Other Input Costs and Availability
The company has a variety of input costs which include plastic and cardboard. Global demand could impact the price and availability of these products.
Approved and authorised by the
......................................... |
Denhay Farms 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 of the company
The directors who held office during the year were as follows:
Dividends
The directors do not recommend the payment of a final dividend for the year ended 31 March 2023.
Financial instruments
Objectives and policies
The company's activities expose it to a number of financial risks as set out below.
Price risk, credit risk, liquidity risk and cash flow risk
The company's principal financial instruments comprise bank balances (including short-term deposits), trade creditors, trade debtors and finance lease agreements. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations.
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances the liquidity risk is managed by maintaining sufficient cash reserves in the business to fund day-to-day working capital requirements, including the repayment of trade creditors. The company also ensure that term deposits are only invested for short periods of time with staggered maturity dates.
In respect of outstanding hire purchase creditors, the company manages the liquidity risk by ensuring there are sufficient funds to meet the monthly repayment and interest charges when they fall due.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Denhay Farms Limited
Directors' Report for the Year Ended 31 March 2023
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Mitchams Accountants Limited as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved and authorised by the
......................................... |
Denhay Farms Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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 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.
Denhay Farms Limited
Independent Auditor's Report to the Members of Denhay Farms Limited
Opinion
We have audited the financial statements of Denhay Farms Limited (the 'company') for the year ended 31 March 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Denhay Farms Limited
Independent Auditor's Report to the Members of Denhay Farms Limited
We have nothing to report in this regard.
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Denhay Farms Limited
Independent Auditor's Report to the Members of Denhay Farms Limited
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud, we have obtained an understanding of the nature of the industry, the control environment and the legal and regulatory frameworks that the company operates in.
We determinded that the most significant applicable legal and regulatory frameworks are those directly relevant to the reporting framework and preparation of the financial statements (FRS102, Companies Act 2006 and UK tax legislation). We considered the extent to which non-compliance might have material effect on the financial statements.
We determinded the principle risks which could lead to material misstatement of the financial statements to be related to posting inappropriate journal entries and accounting estimates.
Audit procedures performed by the engagement team included:
- Enquiries with management to understand managements' approach to ensuring compliance with laws and regulations, and to obtain knowledge of any non-compliance or potential non-compliance with laws and regulations that could affect the financial statements;
- Testing journal entries to identify any unusual transactions, or those outside the normal course of business, which may indicate risks of material misstatement due to fraud;
- Testing of balances and transaction that are subject to estimation uncertainty by review of evidence supporting the assumptions and judgements used, and determining whether those judegments used indicate potential bias;
- Reading minutes of meetings of those charged with governance;
- Review of legal expense accounts to identify spend which may be indicative of breaches of laws and regulations;
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with the provisions of laws and regulations described above.
The engagement team also remained aware of the need for professional scepticism to identify any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above and further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Denhay Farms Limited
Independent Auditor's Report to the Members of Denhay Farms Limited
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
......................................
For and on behalf of
1 Cornhill
Somerset
TA19 0AD
Denhay Farms Limited
Profit and Loss Account for the Year Ended 31 March 2023
Note |
Continuing operations |
Discontinued operations |
Total |
Continuing operations |
Discontinued operations |
Total |
|
Turnover |
|
|
|
|
|
|
|
Cost of sales |
( |
( |
( |
( |
( |
( |
|
Gross profit |
|
|
|
|
|
|
|
Administrative expenses |
( |
- |
( |
( |
( |
( |
|
Other operating income |
|
- |
|
- |
|
|
|
Operating profit |
|
|
|
|
|
|
|
Gain on disposal of fixed asset investments |
- |
|
|
- |
- |
- |
|
Other interest receivable and similar income |
|
- |
|
|
- |
|
|
Interest payable and similar charges |
( |
- |
( |
( |
( |
( |
|
3,118 |
113,430 |
116,548 |
(20,227) |
(3,357) |
(23,584) |
||
Profit before tax |
|
|
|
|
|
|
|
Tax on profit |
( |
- |
( |
( |
- |
( |
|
Profit for the financial year |
|
|
|
|
|
|
The company has no recognised gains or losses for the year other than the results above.
Denhay Farms Limited
Statement of Comprehensive Income for the Year Ended 31 March 2023
2023 |
2022 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
Denhay Farms Limited
(Registration number: 00504226)
Balance Sheet as at 31 March 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Other financial assets |
- |
56 |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
- |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
250,280 |
250,280 |
|
Share premium reserve |
2,798 |
2,798 |
|
Capital redemption reserve |
32,500 |
32,500 |
|
Retained earnings |
2,852,794 |
2,240,188 |
|
Shareholders' funds |
3,138,372 |
2,525,766 |
Approved and authorised by the
......................................... |
......................................... |
Denhay Farms Limited
Statement of Changes in Equity for the Year Ended 31 March 2023
Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 April 2022 |
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
Total comprehensive income |
- |
- |
- |
|
|
At 31 March 2023 |
|
|
|
|
|
Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
|
At 1 April 2021 |
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
Total comprehensive income |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
( |
( |
At 31 March 2022 |
|
|
|
|
|
Denhay Farms Limited
Statement of Cash Flows for the Year Ended 31 March 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
- |
|
Profit from disposals of investments |
( |
- |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease in stocks |
|
|
|
(Increase)/decrease in trade debtors |
( |
|
|
Decrease in trade creditors |
( |
( |
|
Decrease in deferred income, including government grants |
- |
( |
|
Cash generated from operations |
|
|
|
Income taxes received |
|
- |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
- |
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Proceeds from sale of investments |
|
|
|
Dividend income |
|
|
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
(43,333) |
(278,248) |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
- |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 April |
|
|
|
Cash and cash equivalents at 31 March |
2,172,093 |
1,759,240 |
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
Devonshire Road
Heath Park
Honiton
Devon
EX14 1SD
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The company's functional and presentational currency is Sterling (£). All amounts have been rounded to the nearest £.
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Judgements
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Critical accounting judgements and Key sources of estimation uncertainty
In preparing these financial statements, the directors have made the following judgements and estimates:
Depreciation rates
Tangible fixed assets are depreciated over their useful lives taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining useful life of the asset and projected disposal values. The carrying amount of fixed assets can be seen in the note headed Tangible assets below.
Deferred tax assets
The inclusion of deferred tax assets, either to recognise as a debtor or to set off against a deferred tax liability requires the use of estimates as to the likely recoverable value of tax losses. The ultimate realisation of deferred tax assets is also dependent upon the generation of future taxable profits against which those tax losses can be utilised. The carrying amount of deferred tax assets can be seen in the note headed Taxation below.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when goods are received by the customer, as determined by the terms agreed in the contract.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in other operating income over the period in which the related costs are recognised, and timing differences are presented as other creditors or deferred income within the balance sheet.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Tenant improvements post 2003 |
Over 15 years on a straight line basis |
Plant and machinery |
25% on a reducing balance basis |
Computer equipment |
Over 3 years on a straight line basis |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
Share capital
Ordinary and preference shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
The Company contributes to two defined contribution pension schemes. The assets of the schemes are held separately from those of the Company within independently administered insurance funds. Contributions in respect of these schemes are charged to the Profit and Loss Account in the year in which they are payable to the schemes.
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Discontinued operations
Denhay Farms Limited withdrew from dairy farming activities during the comparative accounting period. In these financial statements, the results from dairy farming are shown as discontinued operations in both the current and comparative columns.
Turnover |
The analysis of the company's revenue for the year is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2023 |
2022 |
|
Government grants |
|
|
Sub lease rental income |
- |
|
|
|
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Operating lease expense - property |
|
|
(Profit)/loss on disposal of property, plant and equipment |
( |
|
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income on bank deposits |
|
- |
Dividend income |
|
|
Other finance income |
|
- |
|
|
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
- |
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Production |
|
|
Administration and support |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
- |
|
140,775 |
140,763 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
All other non-audit services |
|
|
Taxation |
Tax charged/(credited) in the income statement
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
|
- |
UK corporation tax adjustment to prior periods |
- |
( |
1,365 |
(29,985) |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of tax losses |
( |
( |
Deferred tax expense (credit) from unrecognised tax loss or credit |
|
|
Increase (decrease) in UK and foreign current tax from adjustment for prior periods |
- |
( |
Tax increase (decrease) from effect of capital allowances and depreciation |
( |
|
Tax increase (decrease) from effect of dividends from UK companies |
( |
- |
Total tax charge |
|
|
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Deferred tax
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Tax losses carried forward |
- |
|
Accelerated tax depreciation |
- |
( |
- |
( |
2022 |
Asset |
Liability |
Tax losses carried forward |
|
- |
Accelerated tax depreciation |
( |
- |
|
- |
Tangible assets |
Tenant improvements |
Computer equipment |
Plant and machinery |
Total |
|
Cost or valuation |
||||
At 1 April 2022 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
- |
( |
( |
( |
At 31 March 2023 |
|
|
|
|
Depreciation |
||||
At 1 April 2022 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
- |
( |
( |
( |
At 31 March 2023 |
|
|
|
|
Carrying amount |
||||
At 31 March 2023 |
|
|
|
|
At 31 March 2022 |
|
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Plant and machinery |
75,059 |
100,078 |
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Other financial assets (current and non-current) |
Financial assets at cost less impairment |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 April 2022 |
56 |
56 |
Disposals |
(56) |
(56) |
At 31 March 2023 |
- |
- |
Impairment |
||
At 1 April 2022 |
- |
- |
At 31 March 2023 |
- |
- |
Carrying amount |
||
At 31 March 2023 |
- |
- |
At 31 March 2022 |
|
56 |
Stocks |
2023 |
2022 |
|
Raw materials and consumables |
|
|
Work in progress |
|
|
Finished goods and goods for resale |
|
|
|
|
Debtors |
Current |
Note |
2023 |
2022 |
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Deferred tax assets |
- |
|
|
Income tax asset |
- |
|
|
|
|
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Cash and cash equivalents |
2023 |
2022 |
|
Cash on hand |
|
|
Cash at bank |
|
|
Short-term deposits |
|
- |
|
|
Creditors |
Note |
2023 |
2022 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Other payables |
- |
|
|
Accrued expenses |
|
|
|
Corporation tax liability |
1,365 |
- |
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 April 2022 |
- |
- |
Increase (decrease) in existing provisions |
|
|
At 31 March 2023 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
237,780 |
|
237,780 |
|
|
12,500 |
|
12,500 |
|
|
|
|
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Preference shares have the following rights, preferences and restrictions: |
Loans and borrowings |
2023 |
2022 |
|
Non-current loans and borrowings |
||
Bank borrowings |
- |
|
HP and finance lease liabilities |
|
|
|
|
2023 |
2022 |
|
Current loans and borrowings |
||
Bank borrowings |
- |
|
HP and finance lease liabilities |
|
|
|
|
HP and finance lease liabilities are secured on the assets to which they relate.
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Obligations under leases and hire purchase contracts |
Finance leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Dividends |
Interim dividends paid
2023 |
2022 |
|||
Interim dividend of £Nil (2022 - £ |
- |
|
||
Commitments |
Capital commitments
The total amount contracted for but not provided in the financial statements was £Nil (2022 - £
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Related party transactions |
Transactions with directors |
2023 |
At 1 April 2022 |
Repayments by director |
At 31 March 2023 |
Mr S J Streatfeild |
|||
Director's current account |
|
( |
- |
2022 |
At 1 April 2021 |
Advances to director |
Repayments by director |
At 31 March 2022 |
Mr S J Streatfeild |
||||
Director's current account |
- |
|
( |
|
Other transactions with directors |
During the year the following rents were paid to directors in respect of land used by the company: Mr G H Streatfeild, £Nil (2022 - £12,563) and Mr S J Streatfeild £Nil (2022 - £4,269).
During the year the following interest charges were paid to directors in respect of unsecured loans advanced to the company: Mr G H Streatfeild £Nil (2022 - £6,987), The Rt. Hon. H L A Hood £Nil (2022 - £1,075) and The Hon. J S Hood £Nil (2022 - £1,075).
Summary of transactions with other related parties
During the year the following rents were paid to other related parties in respect of land used by the company: Penntrust Limited as trustees of the Hood 1958 Settlement £nil (2022 - £22,400).
During the year the following interest charges were paid to other related parties in respect of unsecured loans advanced to the company: Penntrust Limited as trustees of the Hood 1958 Settlement £nil (2022 - £2,151).
Denhay Farms Limited
Notes to the Financial Statements for the Year Ended 31 March 2023
Analysis of changes in net debt |
At 1 April 2022 |
Financing cash flows |
At 31 March 2023 |
|
Cash and cash equivalents |
|||
Cash |
1,759,240 |
(1,317,147) |
442,093 |
Cash equivalents |
- |
1,730,000 |
1,730,000 |
1,759,240 |
412,853 |
2,172,093 |
|
Borrowings |
|||
Short term borrowings |
(43,333) |
43,333 |
- |
Lease liabilities |
(103,204) |
26,754 |
(76,450) |
(146,537) |
70,087 |
(76,450) |
|
|
|
|
|
|