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Registration number: 03077576

Birchwood Farms Limited

Unaudited Financial Statements

31 March 2023

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Birchwood Farms Limited

Contents

Accountants' Report

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

4

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Birchwood Farms Limited
for the Year Ended 31 March 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Birchwood Farms Limited for the year ended 31 March 2023 as set out on pages 2 to 13 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Birchwood Farms Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Birchwood Farms Limited and state those matters that we have agreed to state to the Board of Directors of Birchwood Farms Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Birchwood Farms Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Birchwood Farms Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Birchwood Farms Limited. You consider that Birchwood Farms Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Birchwood Farms Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.



Dodd & Co Limited
Chartered Accountants
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

31 May 2023

 

Birchwood Farms Limited

(Registration number: 03077576)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

1,724,479

1,714,472

Investment property

6

450,000

296,406

Investments

7

100

100

Other financial assets

8

100

100

 

2,174,679

2,011,078

Current assets

 

Stocks

733,488

1,085,625

Debtors

9

202,858

315,989

Cash at bank and in hand

 

-

450

 

936,346

1,402,064

Creditors: Amounts falling due within one year

10

(1,169,020)

(1,635,510)

Net current liabilities

 

(232,674)

(233,446)

Total assets less current liabilities

 

1,942,005

1,777,632

Creditors: Amounts falling due after more than one year

10

(420,236)

(264,873)

Provisions for liabilities

(204,983)

(133,517)

Net assets

 

1,316,786

1,379,242

Capital and reserves

 

Allotted, called up and fully paid share capital

151,650

151,650

Non-distributable reserve

 

140,168

-

Profit and loss account

1,024,968

1,227,592

Total equity

 

1,316,786

1,379,242

 

Birchwood Farms Limited

(Registration number: 03077576)
Balance Sheet as at 31 March 2023 (continued)

For the financial year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 31 May 2023 and signed on its behalf by:
 

.........................................

M C J Sanderson

Director

 

Birchwood Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Woodside
America Wood
Wreay
CARLISLE
CA4 0RS

2

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK 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 has net current liabilities at 31 March 2023 and meets its day to day working capital requirements through its bank overdraft facility which, in common with all such facilities, is repayable on demand. In addition the directors have provided financial support by way of short term loans. On the basis of this support, the directors consider it appropriate to prepare the financial statements on the going concern basis.

However, should the company not have the support of its bankers, and therefore be unable to continue trading, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for any further liabilities which might arise, and to reclassify fixed assets and long term liabilities as current assets and current liabilities.

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 the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.


Other grants
Other grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets on a basis consistent with the depreciation policy.

 

Birchwood Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023 (continued)


Government grants
Grants relating to revenue are recognised in the profit and loss account on a systematic basis over the periods in which the related costs are recognised for which the grant is intended to compensate.

Grants for the purpose of giving immediate financial support with no future related costs to be incurred are recognised in the profit and loss account when the grant proceeds become receivable.

Tax

The tax expense for the period comprises 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.

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

Freehold land and buildings

not provided and 5% straight line basis

Plant and equipment

10% reducing balance basis and 25% reducing balance basis

Furniture, fittings and office equipment

10% reducing balance basis and 25% reducing balance basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by the directors. The directors use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

 

Birchwood Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023 (continued)

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Other intangible assets

straight line to the end of its life on 31 December 2020

Investments

Fixed asset investments are stated at historical cost less provision for any diminution in value.

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 the sale of goods 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.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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 where due after more than one year.

 

Birchwood Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023 (continued)

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

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary 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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Birchwood Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023 (continued)

Financial instruments

Classification
Equity shares and debt securities
 Recognition and measurement
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

 Impairment
For instruments measured at cost less impairment the impairment is the difference between the assets' carrying amount and the best estimate the entity would receive for the asset if it were sold at the reporting date.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 11 (2022 - 12).

4

Intangible assets

Other intangible assets
 £

Total
£

Cost or valuation

At 1 April 2022

1,190

1,190

At 31 March 2023

1,190

1,190

Amortisation

At 1 April 2022

1,190

1,190

At 31 March 2023

1,190

1,190

Carrying amount

At 31 March 2023

-

-

 

Birchwood Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023 (continued)

5

Tangible assets

Land and buildings
£

Plant and equipment
 £

Furniture, fittings and office equipment
 £

Total
£

Cost or valuation

At 1 April 2022

2,242,147

1,519,369

4,919

3,766,435

Additions

51,006

80,778

-

131,784

Disposals

-

(63,000)

-

(63,000)

At 31 March 2023

2,293,153

1,537,147

4,919

3,835,219

Depreciation

At 1 April 2022

980,229

1,068,162

3,572

2,051,963

Charge for the year

46,564

67,343

336

114,243

Eliminated on disposal

-

(55,466)

-

(55,466)

At 31 March 2023

1,026,793

1,080,039

3,908

2,110,740

Carrying amount

At 31 March 2023

1,266,360

457,108

1,011

1,724,479

At 31 March 2022

1,261,918

451,207

1,347

1,714,472

6

Investment properties

£

At 1 April 2022

296,406

Fair value adjustments

153,594

At 31 March 2023

450,000

The directors have valued the property on an estimated open market value basis.

There has been no valuation of investment property by an independent valuer.

 

Birchwood Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023 (continued)

7

Investments

2023
£

2022
£

Investments in subsidiaries

100

100

Subsidiaries

£

Cost or valuation

At 1 April 2022

100

At 31 March 2023

100

Provision

Carrying amount

At 31 March 2023

100

At 31 March 2022

100

8

Other financial assets (current and non-current)

2023
£

2022
£

Non-current financial assets

Financial assets at cost less impairment

100

100

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 April 2022

100

100

At 31 March 2023

100

100

Impairment

Carrying amount

At 31 March 2023

100

100

 

Birchwood Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023 (continued)

9

Debtors

2023
£

2022
£

Trade debtors

179,110

132,928

Amounts owed by group undertakings and undertakings in which the company has a participating interest

-

106,138

Other debtors

23,748

76,923

202,858

315,989

10

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

12

719,969

926,965

Trade creditors

 

274,957

588,897

Amounts owed to group undertakings and undertakings in which the company has a participating interest

 

23,177

-

Taxation and social security

 

-

3,780

Other creditors

 

150,917

115,868

 

1,169,020

1,635,510

Due after one year

 

Loans and borrowings

12

411,291

255,041

Other creditors

 

8,945

9,832

 

420,236

264,873

2023
£

2022
£

After more than five years by instalments

183,309

18,584

183,309

18,584

 

Birchwood Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023 (continued)

11

Reserves

A reconciliation of the opening and closing non-distributable reserve for the current year is as follows:

Non-distributable reserve
£

Brought forward

-

Transfer

153,594

Other movement

-

Deferred tax

(13,426)

Carried forward

140,168

12

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

44,059

64,654

Bank overdrafts

596,363

796,826

Finance lease liabilities

23,375

11,000

Other borrowings

56,172

54,485

719,969

926,965

Current loans and borrowings includes the following liabilities, on which security has been given by the company:

2023
£

2022
£

Bank borrowings

44,059

64,654

Bank overdrafts

596,363

796,826

Finance lease liabilities

23,375

11,000

663,797

872,480

Bank borrowings are secured by fixed and floating charges over the company's assets.

Bank overdrafts are secured by fixed and floating charges over the company's assets.

Finance lease liabilities are secured on the assets to which they relate.

 

Birchwood Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023 (continued)

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

380,354

244,041

Finance lease liabilities

30,937

11,000

411,291

255,041

Non-current loans and borrowings includes the following liabilities, on which security has been given by the company:

2023
£

2022
£

Bank borrowings

380,354

244,041

Finance lease liabilities

30,937

11,000

411,291

255,041

Bank borrowings are secured by fixed and floating charges over the company's assets.

Finance lease liabilities are secured on the assets to which they relate.

13

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £668,888 (2022 - £760,691). An unlimited company guarantee exists between Birchwood Farms Limited and its subsidiary, Birchwood Renewables Limited, to secure each other's bank liabilities. The amounts shown above are the net bank borrowings of Birchwood Renewables Limited at 31 March. The security given by Birchwood Farms Limited is a fixed and floating charge over all its assets.