Company registration number 00247405 (England and Wales)
LAURENCE J BETTS LIMITED CONSOLIDATION
Annual Report And Financial Statements
For The Year Ended 31 January 2023
Laurence J Betts Limited Consolidation
Company Information
Directors
Mr J P Regan
(Appointed 13 July 2023)
Mrs M F Regan
(Appointed 13 July 2023)
Mrs A Mclean
(Appointed 13 July 2023)
Mr N J Ottewell
Mrs A R Wright
Secretary
Mrs A Mclean
Company number
00247405
Registered office
Barons Place
Mereworth
Kent
England
ME18 5NF
Auditor
Chavereys
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
Laurence J Betts Limited Consolidation
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
Laurence J Betts Limited Consolidation
Strategic Report
For The Year Ended 31 January 2023
- 1 -

The directors present the strategic report for the year ended 31 January 2023.

Review of the business

The 2022/23 financial year shows an operating profit of £1,462,438 (2022 - £833,417) illustrating an improved performance as the economy is recovering from the Covid 19 pandemic.

 

The group achieved a pre-tax profit of £1,348,565 (2022 - £727,781).

 

The principal activities in the year under review did not see any significant changes and the directors are not aware of any likely changes in the group’s principal activities in the forthcoming year.

Principal risks and uncertainties

The group operates in a high risk environment and faces the common challenges found in the competitive fresh produce market.

 

The group manages this commercial risk by having as central to its core, the production of top quality products, innovation and service, whilst maintaining strong and close relationships with its customers.

 

Agronomic risk is mitigated by growing operations being spread over several sites, with machinery and irrigation resources continued to be invested in, making us more resilient to the fluctuations of weather likely to occur.

 

The inability to recruit new seasonal labour from EU countries is an ongoing challenge. However, the SAWS scheme is a valuable source of seasonal labour for the Horticultural sector and the group is in a strong position having established long term relationships with the leading Seasonal Labour Providers and a number of key workers from EU countries are keen to continue working in the company.

 

Covid 19 has presented an unprecedented risk to all businesses globally. The group has implemented a variety of measures throughout the pandemic to reduce risks to its staff, supply chain and customers in order to avoid interruption. This has included isolating seasonal workers on arrival, minimising visitor movements on and off site, providing regular Covid testing for staff, ensuring staff socially distance and further enhancing hygiene and use of personal protective equipment. Additional costs have been incurred as a result and these have been charged to the profit and loss account.

Key performance indicators

Throughout the year the group continually maps performance compared with previous months and years. For the end of year financial report the following key performance indicators are considered:

 

KPI

2023

2022

2021

Turnover (£)

10,968,714

9,131,392

8,821,887

Profit before Tax (£)

1,348,565

727,781

489,199

Balance Sheet (£)

8,912,405

7,917,571

7,386,068

 

Laurence J Betts Limited Consolidation
Strategic Report (Continued)
For The Year Ended 31 January 2023
- 2 -
Other information and explanations

Going Concern

The group’s budgets and projections show that the group should be able to continue operating within the limits of the agreed borrowing facilities.

 

The directors are confident that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing these accounts.

 

Research and Development

The group is committed to continued research and the development of new products and techniques in close association with customers. The directors believe this strategy is essential to enhance the mutually beneficial relationships with customers for the long term success of the group.

 

Results and Dividends

The group profit for the financial year after taxation is £1,127,278 (2022 - £589,779). The directors recommended a final dividend of £146,904 (2022 - £131,500).

 

Future Prospects

The directors intend the profitability of the company to grow, through producing quality produce, continued innovation, mechanisation and working closely with customers.

On behalf of the board

Mr N J Ottewell
Director
24 October 2023
Laurence J Betts Limited Consolidation
Directors' Report
For The Year Ended 31 January 2023
- 3 -

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

Results and dividends

The profit for the year, after taxation, amounted to £1,127,278 (2022 - £589,782).

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr J P Regan
(Appointed 13 July 2023)
Mrs M F Regan
(Appointed 13 July 2023)
Mrs A Mclean
(Appointed 13 July 2023)
Mr N J Ottewell
Mrs A R Wright
Mr P R Betts
(Resigned 13 July 2023)
Mr S J Betts
(Resigned 13 July 2023)
Future developments

The group’s aims for the future are to continue working closely with customers and suppliers, product development and the implementation of labour saving harvesting techniques while giving priority to staff training and welfare.

Auditor

The auditors, Chavereys, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Statement of directors' responsibilities

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Laurence J Betts Limited Consolidation
Directors' Report (Continued)
For The Year Ended 31 January 2023
- 4 -
On behalf of the board
Mr N J Ottewell
Mrs A R Wright
Director
Director
24 October 2023
Laurence J Betts Limited Consolidation
Independent Auditor's Report
To The Members Of Laurence J Betts Limited Consolidation
- 5 -
Opinion

We have audited the financial statements of Laurence J Betts Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

Laurence J Betts Limited Consolidation
Independent Auditor's Report (Continued)
To The Members Of Laurence J Betts Limited Consolidation
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedure included the following:

 

• We obtained an understanding of the legal and regulatory frameworks applicable to the Group and the parent Company and the sector in which they operate. We determined that the following laws and regulations were most significant:

 

- Companies Act 2006

- UK corporate tax laws

- Health and safety

- Food safety and hygiene legislation

 

• We obtained an understanding of how the Group and the parent Company are complying with those legal and

regulatory frameworks by making inquiries to the management of the Group. We corroborated our inquires though our review of board meeting minutes, accident records and third party safety reports.

 

• We assessed the susceptibility of the Group’s and the parent Company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the Group engagement team included:

 

- Identifying and assess the design effectiveness of controls management has in place to prevent and detect fraud;

- Understanding how those charged with governance considered and addressed the potential override of controls or other inappropriate influence over the financial reporting process;

- Challenging assumptions and judgment made by management in its significant accounting estimates;

- Identifying and testing journal entries, in particular any journal entries posted as unusual amounts, with unusual account combinations, with unusual descriptions or by irregular individuals; and

- Assessing the extent of compliance with the relevant laws and regulations.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Laurence J Betts Limited Consolidation
Independent Auditor's Report (Continued)
To The Members Of Laurence J Betts Limited Consolidation
- 7 -

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.

Iain D Morris FCA (Senior Statutory Auditor)
For and on behalf of Chavereys
26 October 2023
Chartered Accountants
Statutory Auditor
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
Laurence J Betts Limited Consolidation
Group Profit And Loss Account
For The Year Ended 31 January 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
10,968,714
9,131,392
Cost of sales
(6,708,124)
(5,900,684)
Gross profit
4,260,590
3,230,708
Administrative expenses
(3,082,290)
(2,711,135)
Other operating income
284,138
313,844
Operating profit
4
1,462,438
833,417
Interest receivable and similar income
7,388
98
Interest payable and similar expenses
(121,261)
(105,734)
Profit before taxation
1,348,565
727,781
Tax on profit
8
(221,287)
(137,999)
Profit for the financial year
1,127,278
589,782
Profit for the financial year is all attributable to the owners of the parent company.
Laurence J Betts Limited Consolidation
Group Statement Of Comprehensive Income
For The Year Ended 31 January 2023
- 9 -
2023
2022
£
£
Profit for the year
1,127,278
589,782
Other comprehensive income
Revaluation of intangible assets
-
0
67,436
Adjustments to the fair value of financial assets
14,460
5,784
Other comprehensive income for the year
14,460
73,220
Total comprehensive income for the year
1,141,738
663,002
Total comprehensive income for the year is all attributable to the owners of the parent company.
Laurence J Betts Limited Consolidation
Group Balance Sheet
As At 31 January 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
101,222
86,762
Tangible assets
11
8,200,910
8,563,081
Investment property
12
1,339,000
1,339,000
9,641,132
9,988,843
Current assets
Stocks
15
552,813
596,611
Debtors
16
682,691
540,259
Cash at bank and in hand
3,316,310
2,348,046
4,551,814
3,484,916
Creditors: amounts falling due within one year
17
(1,329,499)
(1,244,201)
Net current assets
3,222,315
2,240,715
Total assets less current liabilities
12,863,447
12,229,558
Creditors: amounts falling due after more than one year
18
(3,166,699)
(3,501,644)
Provisions for liabilities
Deferred tax liability
21
784,343
810,343
(784,343)
(810,343)
Net assets
8,912,405
7,917,571
Capital and reserves
Called up share capital
23
1,180
1,180
Revaluation reserve
819,463
805,003
Profit and loss reserves
8,091,762
7,111,388
Total equity
8,912,405
7,917,571
The financial statements were approved by the board of directors and authorised for issue on 24 October 2023 and are signed on its behalf by:
2023-10-24
Mr N J Ottewell
Mrs A R Wright
Director
Director
Company registration number 00247405 (England and Wales)
Laurence J Betts Limited Consolidation
Company Balance Sheet
As At 31 January 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
10
101,222
86,762
Tangible assets
11
6,498,097
6,860,268
Investment property
12
1,339,000
1,339,000
Investments
13
1,907,020
1,907,020
9,845,339
10,193,050
Current assets
Stocks
15
552,813
596,611
Debtors
16
682,691
540,259
Cash at bank and in hand
3,316,308
2,332,479
4,551,812
3,469,349
Creditors: amounts falling due within one year
17
(1,567,576)
(1,466,713)
Net current assets
2,984,236
2,002,636
Total assets less current liabilities
12,829,575
12,195,686
Creditors: amounts falling due after more than one year
18
(3,166,699)
(3,501,644)
Provisions for liabilities
Deferred tax liability
21
522,000
548,000
(522,000)
(548,000)
Net assets
9,140,876
8,146,042
Capital and reserves
Called up share capital
23
1,180
1,180
Revaluation reserve
819,463
805,003
Profit and loss reserves
8,320,233
7,339,859
Total equity
9,140,876
8,146,042

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,127,278 (2022 - £562,267 profit).

The financial statements were approved by the board of directors and authorised for issue on 24 October 2023 and are signed on its behalf by:
2023-10-24
Mr N J Ottewell
Mrs A R Wright
Director
Director
Company registration number 00247405 (England and Wales)
Laurence J Betts Limited Consolidation
Group Statement Of Changes In Equity
For The Year Ended 31 January 2023
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2021
1,180
731,783
6,653,106
7,386,069
Year ended 31 January 2022:
Profit for the year
-
-
589,782
589,782
Other comprehensive income:
Revaluation of intangible assets
-
67,436
-
67,436
Adjustments to fair value of financial assets
-
5,784
-
5,784
Total comprehensive income
-
73,220
589,782
663,002
Dividends
9
-
-
(131,500)
(131,500)
Balance at 31 January 2022
1,180
805,003
7,111,388
7,917,571
Year ended 31 January 2023:
Profit for the year
-
-
1,127,278
1,127,278
Other comprehensive income:
Adjustments to fair value of financial assets
-
14,460
-
14,460
Total comprehensive income
-
14,460
1,127,278
1,141,738
Dividends
9
-
-
(146,904)
(146,904)
Balance at 31 January 2023
1,180
819,463
8,091,762
8,912,405
Laurence J Betts Limited Consolidation
Company Statement Of Changes In Equity
For The Year Ended 31 January 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2021
1,180
731,783
6,909,092
7,642,055
Year ended 31 January 2022:
Profit for the year
-
-
562,267
562,267
Other comprehensive income:
Revaluation of intangible assets
-
67,436
-
67,436
Adjustments to fair value of financial assets
-
5,784
-
5,784
Total comprehensive income
-
73,220
562,267
635,487
Dividends
9
-
-
(131,500)
(131,500)
Balance at 31 January 2022
1,180
805,003
7,339,859
8,146,042
Year ended 31 January 2023:
Profit for the year
-
-
1,127,278
1,127,278
Other comprehensive income:
Adjustments to fair value of financial assets
-
14,460
-
14,460
Total comprehensive income
-
14,460
1,127,278
1,141,738
Dividends
9
-
-
(146,904)
(146,904)
Balance at 31 January 2023
1,180
819,463
8,320,233
9,140,876
Laurence J Betts Limited Consolidation
Group Statement Of Cash Flows
For The Year Ended 31 January 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
1,815,991
1,233,679
Interest paid
(121,261)
(105,734)
Income taxes (paid)/refunded
(161,628)
3,560
Net cash inflow from operating activities
1,533,102
1,131,505
Investing activities
Purchase of tangible fixed assets
(188,420)
(205,236)
Proceeds from disposal of tangible fixed assets
163,251
111,882
Repayment of loans
(5,484)
31
Interest received
7,388
98
Net cash used in investing activities
(23,265)
(93,225)
Financing activities
Repayment of bank loans
(253,674)
(233,781)
Payment of finance leases obligations
(140,995)
(177,548)
Dividends paid to equity shareholders
(146,904)
(131,500)
Net cash used in financing activities
(541,573)
(542,829)
Net increase in cash and cash equivalents
968,264
495,451
Cash and cash equivalents at beginning of year
2,348,046
1,852,595
Cash and cash equivalents at end of year
3,316,310
2,348,046
Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements
For The Year Ended 31 January 2023
- 15 -
1
Accounting policies
Company information

Laurence J Betts Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Laurence J Betts Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Laurence J Betts Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 January 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

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

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

BPS entitlements
No more than 10 years straight line
1.5
Tangible fixed assets

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

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

Land and buildings
Not depreciated
Assets under construction
Not depreciated
Equipment and implements
15% reducing balance
Buildings, drainage and fittings
0% - 15% reducing balance
Tractors and motor vehicles
25% reducing balance
Cold stores
4% straight line

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

1.6
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
1
Accounting policies
(Continued)
- 17 -
1.7
Fixed asset investments

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

 

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

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

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

 

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

 

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

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

1.8
Stocks

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

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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

1.9
Financial instruments
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
1
Accounting policies
(Continued)
- 18 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

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

 

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

 

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

1.12
Retirement benefits

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

1.13
Leases

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

 

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

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

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.14
Government grants

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

 

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

Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
1
Accounting policies
(Continued)
- 19 -
1.15

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.

1.16

Biological assets

Biological assets are living plants controlled by the company from which it expects to derive future economic benefit. These are measured at the lower of cost or estimated selling price, less costs to sell.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Stocks and biological assets

Note 1.8 details the accounting policies for stocks and biological assets. The judgments involved relate to the appropriate proportion of relevant expenses to include when calculating the cost of production of crops.

3
Turnover and other revenue
2023
2022
£
£
Other revenue
Interest income
7,388
98
Commissions received
29,862
41,810
Grants received
113,579
134,383
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(113,579)
(134,383)
Depreciation of owned tangible fixed assets
495,663
585,112
Profit on disposal of tangible fixed assets
(108,323)
(51,458)
Operating lease charges
191,818
213,820
Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
- 20 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,000
9,000
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
7
4
4
4
Administration
2
2
2
2
Seasonal workers
68
65
68
65
Farm staff
20
16
20
16
Total
97
87
94
87

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
941,787
839,945
941,787
839,945
Social security costs
109,898
97,327
109,898
97,327
Pension costs
84,418
72,143
84,418
72,143
1,136,103
1,009,415
1,136,103
1,009,415
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
228,524
209,190
Company pension contributions to defined contribution schemes
49,932
48,900
278,456
258,090
Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
7
Directors' remuneration
(Continued)
- 21 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
69,957
62,132
Company pension contributions to defined contribution schemes
37,861
37,861
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
290,576
183,999
Adjustments in respect of prior periods
(43,289)
-
Total current tax
247,287
183,999
Deferred tax
Origination and reversal of timing differences
(26,000)
(46,000)
Total tax charge
221,287
137,999

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

2023
2022
£
£
Profit before taxation
1,348,565
727,781
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
256,227
138,278
Tax effect of expenses that are not deductible in determining taxable profit
9,578
832
Tax effect of income not taxable in determining taxable profit
-
(6,394)
Gains not taxable
-
6,139
Permanent capital allowances in excess of depreciation
16,405
60,478
Amortisation on assets not qualifying for tax allowances
(5,471)
(5,834)
Research and development tax credit
-
(9,500)
Under/(over) provided in prior years
(43,289)
-
Deferred tax adjustments in respect of prior years
(26,000)
(46,000)
Capital gains
13,837
-
Taxation charge
221,287
137,999
Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
- 22 -
9
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
146,904
131,500
10
Intangible fixed assets
Group
BPS entitlements
£
Cost
At 1 February 2022
86,762
Revaluation
14,460
At 31 January 2023
101,222
Amortisation and impairment
At 1 February 2022 and 31 January 2023
-
Carrying amount
At 31 January 2023
101,222
At 31 January 2022
86,762
Company
BPS entitlements
£
Cost
At 1 February 2022
86,762
Revaluation
14,460
At 31 January 2023
101,222
Amortisation and impairment
At 1 February 2022 and 31 January 2023
-
Carrying amount
At 31 January 2023
101,222
At 31 January 2022
86,762
Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
- 23 -
11
Tangible fixed assets
Group
Land and buildings
Assets under construction
Equipment and implements
Buildings, drainage and fittings
Tractors and motor vehicles
Cold stores
Total
£
£
£
£
£
£
£
Cost
At 1 February 2022
4,450,685
-
3,996,423
1,704,234
2,632,369
2,392,484
15,176,195
Additions
-
18,410
127,036
-
42,974
-
188,420
Disposals
(7,174)
-
(56,758)
-
(135,325)
-
(199,257)
At 31 January 2023
4,443,511
18,410
4,066,701
1,704,234
2,540,018
2,392,484
15,165,358
Depreciation and impairment
At 1 February 2022
-
-
2,567,389
1,376,128
1,998,605
670,992
6,613,114
Depreciation charged in the year
-
-
219,022
21,289
159,653
95,699
495,663
Eliminated in respect of disposals
-
-
(45,818)
-
(98,511)
-
(144,329)
At 31 January 2023
-
-
2,740,593
1,397,417
2,059,747
766,691
6,964,448
Carrying amount
At 31 January 2023
4,443,511
18,410
1,326,108
306,817
480,271
1,625,793
8,200,910
At 31 January 2022
4,450,685
-
1,429,034
328,106
633,764
1,721,492
8,563,081
Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
11
Tangible fixed assets
(Continued)
- 24 -
Company
Land and buildings
Assets under construction
Equipment and implements
Buildings, drainage and fittings
Tractors and motor vehicles
Cold stores
Total
£
£
£
£
£
£
£
Cost
At 1 February 2022
2,747,872
-
3,996,423
1,704,234
2,632,369
2,392,484
13,473,382
Additions
-
18,410
127,036
-
42,974
-
188,420
Disposals
(7,174)
-
(56,758)
-
(135,325)
-
(199,257)
At 31 January 2023
2,740,698
18,410
4,066,701
1,704,234
2,540,018
2,392,484
13,462,545
Depreciation and impairment
At 1 February 2022
-
-
2,567,389
1,376,128
1,998,605
670,992
6,613,114
Depreciation charged in the year
-
-
219,022
21,289
159,653
95,699
495,663
Eliminated in respect of disposals
-
-
(45,818)
-
(98,511)
-
(144,329)
At 31 January 2023
-
-
2,740,593
1,397,417
2,059,747
766,691
6,964,448
Carrying amount
At 31 January 2023
2,740,698
18,410
1,326,108
306,817
480,271
1,625,793
6,498,097
At 31 January 2022
2,747,872
-
1,429,034
328,106
633,764
1,721,492
6,860,268
Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
11
Tangible fixed assets
(Continued)
- 25 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Tractors and motor vehicles
228,985
340,652
228,985
340,652
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 February 2022 and 31 January 2023
1,339,000
1,339,000

 

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Cost
593,113
593,113
593,113
593,113
Accumulated depreciation
196,725
175,862
196,725
175,862
Carrying amount
789,838
768,975
789,838
768,975

The 2023 valuations were made by the directors, on an open market value for existing use basis.

13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
-
1,907,020
1,907,020
Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
13
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2022 and 31 January 2023
1,907,020
Carrying amount
At 31 January 2023
1,907,020
At 31 January 2022
1,907,020
14
Subsidiaries

Details of the company's subsidiaries at 31 January 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Upper Medway Farms Limited
United Kingdom
Ordinary
100.00
15
Stocks
2023
2022
£
£
Growing crop
50,101
50,736
Crop in store
88,676
90,526
Consumables
414,036
455,349
552,813
596,611
Biological assets included within stock are as follows:
Biological assets - growing crop
2023
2022
£
£
As at 1 February
50,736
36,310
Net movement on cultivations
(635)
14,426
As at 31 January
50,101
50,736
Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
- 27 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
431,644
444,147
431,644
444,147
Corporation tax recoverable
496
496
496
496
Other debtors
80,879
37,390
80,879
37,390
Prepayments and accrued income
162,172
50,726
162,172
50,726
675,191
532,759
675,191
532,759
Amounts falling due after more than one year:
Other debtors
7,500
7,500
7,500
7,500
Total debtors
682,691
540,259
682,691
540,259
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
215,481
223,815
215,481
223,815
Obligations under finance leases
20
47,993
126,552
47,993
126,552
Trade creditors
448,394
438,736
448,394
438,736
Amounts owed to group undertakings
-
-
238,077
228,651
Corporation tax payable
290,577
204,918
290,577
198,779
Other creditors
65,019
93,721
65,019
93,721
Accruals and deferred income
262,035
156,459
262,035
156,459
1,329,499
1,244,201
1,567,576
1,466,713
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
2,827,165
3,072,505
2,827,165
3,072,505
Obligations under finance leases
20
-
62,436
-
62,436
Government grants
339,534
366,703
339,534
366,703
3,166,699
3,501,644
3,166,699
3,501,644
Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
- 28 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
3,042,646
3,296,320
3,042,646
3,296,320
Payable within one year
215,481
223,815
215,481
223,815
Payable after one year
2,827,165
3,072,505
2,827,165
3,072,505

Bank loans are secured on a variety of land and buildings, as detailed by loan charges and deeds filed with Companies House.

 

The bank loans due after more than 5 years are repayable between 7 and 17 years from the date of the balance sheet. They are a mix of fixed and variable interest rates up to 5.35%.

 

The bank loans have subsequently been satisfied in July 2023 by the purchaser, see note 25.

 

20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
47,993
126,552
47,993
126,552
In two to five years
-
62,436
-
62,436
47,993
188,988
47,993
188,988

 

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
411,000
437,000
Revaluations
373,343
373,343
784,343
810,343
Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
21
Deferred taxation
(Continued)
- 29 -
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
411,000
437,000
Revaluations
111,000
111,000
522,000
548,000
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 February 2022
810,343
548,000
Credit to profit or loss
(26,000)
(26,000)
Liability at 31 January 2023
784,343
522,000

 

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
84,418
72,143

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
Ordinary B shares of £1 each
180
180
180
180
1,180
1,180
1,180
1,180
Laurence J Betts Limited Consolidation
Notes To The Group Financial Statements (Continued)
For The Year Ended 31 January 2023
- 30 -
24
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
90,414
162,063
90,414
162,063
Between two and five years
-
39,603
-
39,603
90,414
201,666
90,414
201,666
25
Events after the reporting date

In July 2023 the company's shares were acquired by Skylark Farming Limited. As part of the acquisition, investment property was transferred to Dabbs Pond Limited and the bank debt was satisfied by the purchaser.

 

There have been no changes in the operating activities of the company.

26
Directors' transactions

Dividends totalling £76,904 (2022 - £61,500) were paid in the year in respect of shares held by the company's directors.

27
Controlling party

The ultimate controlling party of Laurence J Betts Limited is Skylark Farming Limited (previously the Betts family see note 25).

 

2023-01-312022-02-01falseCCH SoftwareCCH Accounts Production 2023.100No description of principal activityMr J P ReganMrs M F ReganMr N J OttewellMrs A R WrightMr P R BettsMr S J BettsMr S J BettsMrs A Mclean002474052022-02-012023-01-3100247405bus:Director12022-02-012023-01-3100247405bus:Director22022-02-012023-01-3100247405bus:CompanySecretaryDirector12022-02-012023-01-3100247405bus:Director32022-02-012023-01-3100247405bus:Director42022-02-012023-01-3100247405bus:Director52022-02-012023-01-3100247405bus:Director62022-02-012023-01-3100247405bus:Director72022-02-012023-01-3100247405bus:CompanySecretary12022-02-012023-01-3100247405bus:Consolidated2022-02-012023-01-3100247405bus:Consolidated2023-01-3100247405bus:Consolidated2021-02-012022-01-31002474052023-01-3100247405bus:Consolidated2022-01-31002474052022-01-3100247405core:CurrentFinancialInstrumentsbus:Consolidated2023-01-3100247405core:CurrentFinancialInstrumentsbus:Consolidated2022-01-3100247405core:Non-currentFinancialInstrumentsbus:Consolidated2023-01-3100247405core:Non-currentFinancialInstrumentsbus:Consolidated2022-01-3100247405core:CurrentFinancialInstruments2023-01-3100247405core:CurrentFinancialInstruments2022-01-3100247405core:Non-currentFinancialInstruments2023-01-3100247405core:Non-currentFinancialInstruments2022-01-3100247405core:ShareCapitalbus:Consolidated2023-01-3100247405core:ShareCapitalbus:Consolidated2022-01-3100247405core:RevaluationReservebus:Consolidated2023-01-3100247405core:RevaluationReservebus:Consolidated2022-01-3100247405core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-01-3100247405core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-01-3100247405core:ShareCapital2023-01-3100247405core:ShareCapital2022-01-3100247405core:RevaluationReserve2023-01-3100247405core:RevaluationReserve2022-01-3100247405core:RetainedEarningsAccumulatedLosses2023-01-3100247405core:RetainedEarningsAccumulatedLosses2022-01-31002474052021-02-012022-01-3100247405bus:PrivateLimitedCompanyLtd2022-02-012023-01-3100247405bus:FRS1022022-02-012023-01-3100247405bus:Audited2022-02-012023-01-3100247405bus:ConsolidatedGroupCompanyAccounts2022-02-012023-01-3100247405bus:FullAccounts2022-02-012023-01-31xbrli:purexbrli:sharesiso4217:GBP