Limited Liability Partnership Registration No. OC417866 (England and Wales)
Southwick Estate Enterprises LLP
Annual report and unaudited financial statements
for the year ended 31 March 2023
Pages for filing with the registrar
Southwick Estate Enterprises LLP
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
Southwick Estate Enterprises LLP
Balance sheet
As at 31 March 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
4,268,900
1,794,375
Biological assets
4
381,482
391,163
4,650,382
2,185,538
Current assets
Biological assets
4
420,333
336,327
Stocks
271,576
146,354
Debtors
5
262,177
168,729
Cash at bank and in hand
156,768
50,224
1,110,854
701,634
Creditors: amounts falling due within one year
6
(395,707)
(302,426)
Net current assets
715,147
399,208
Total assets less current liabilities
5,365,529
2,584,746
Creditors: amounts falling due after more than one year
7
(169,215)
(64,582)
Net assets attributable to members
5,196,314
2,520,164
Represented by:
Members' other interests
Members' capital classified as equity
6,257,949
3,232,516
Other reserves classified as equity
(1,061,635)
(712,352)
5,196,314
2,520,164
Total members' interests
Members' other interests
5,196,314
2,520,164

The members of the limited liability partnership have elected not to include a copy of the profit and loss account within the financial statements.

For the financial year ended 31 March 2023 the limited liability partnership was entitled to exemption from audit under section 477 of the Companies Act 2006 (as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) relating to small limited liability partnerships.

The members acknowledge their responsibilities for complying with the requirements of the Act (as applied to limited liability partnerships) with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the provisions applicable to limited liability partnerships subject to the small limited liability partnerships regime.

Southwick Estate Enterprises LLP
Balance sheet (continued)
As at 31 March 2023
Page 2
The financial statements were approved by the members and authorised for issue on 16 November 2023 and are signed on their behalf by:
16 November 2023
Mark Thistlethwayte
Designated member
Limited Liability Partnership Registration No. OC417866
Southwick Estate Enterprises LLP
Notes to the financial statements
For the year ended 31 March 2023
Page 3
1
Accounting policies
Limited liability partnership information

Southwick Estate Enterprises LLP is a limited liability partnership incorporated in England and Wales. The registered office is Southwick Estate Office, The Elms, West Street, Southwick, Fareham, Hampshire, PO17 6EA.

 

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2021, together 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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the limited liability partnership. 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
Going concern

These financial statements are prepared on the going concern basis. The members have a reasonable expectation that the limited liability partnership will continue in operational existence for the foreseeable future. However, they are aware of certain material uncertainties which may cause doubt on the limited liability partnership's ability to continue as a going concern due to the large loss making position. The members have continued to support the limited liability partnership throughout the year to ensure all debts and obligations are met.

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.

Sale of goods are recognised when goods are shipped and title has passed.

1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

Southwick Estate Enterprises LLP
Notes to the financial statements (continued)
For the year ended 31 March 2023
1
Accounting policies (continued)
Page 4
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:

Freehold land and buildings
0 - 20 years straight line
Plant and equipment
10% - 20% straight line
Motor vehicles
20% straight line
Entitlement
20% straight line
Software
33.3% 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

Biological assets

Biological assets held by the company relate to livestock and growing crops.

 

Livestock are measured at fair value less cost to sell. The fair value of the livestock is determined based on market prices of livestock of similar age, breed and genetic merit.

 

Growing crops are measured at cost and no depreciation is charged.

1.7
Impairment of fixed assets

At each reporting period end date, the limited liability partnership reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the limited liability partnership estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Southwick Estate Enterprises LLP
Notes to the financial statements (continued)
For the year ended 31 March 2023
1
Accounting policies (continued)
Page 5
1.8
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.

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
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The limited liability partnership has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the limited liability partnership's statement of financial position when the limited liability partnership becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Southwick Estate Enterprises LLP
Notes to the financial statements (continued)
For the year ended 31 March 2023
1
Accounting policies (continued)
Page 6
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the limited liability partnership after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the limited liability partnership are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the limited liability partnership.

Southwick Estate Enterprises LLP
Notes to the financial statements (continued)
For the year ended 31 March 2023
1
Accounting policies (continued)
Page 7
1.12
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 limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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.

2
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2023
2022
Number
Number
Total
8
6
Southwick Estate Enterprises LLP
Notes to the financial statements (continued)
For the year ended 31 March 2023
Page 8
3
Tangible fixed assets
Land and buildings
Plant and machinery
Entitlement
Software
Total
£
£
£
£
£
Cost
At 1 April 2022
1,025,500
1,040,556
83,256
-
2,149,312
Additions
1,583,818
1,248,856
22,038
3,333
2,858,045
Disposals
-
(158,612)
-
-
(158,612)
At 31 March 2023
2,609,318
2,130,800
105,294
3,333
4,848,745
Depreciation and impairment
At 1 April 2022
19,752
288,026
47,159
-
354,937
Depreciation charged in the year
19,042
226,786
19,234
1,018
266,080
Eliminated in respect of disposals
-
(41,172)
-
-
(41,172)
At 31 March 2023
38,794
473,640
66,393
1,018
579,845
Carrying amount
At 31 March 2023
2,570,524
1,657,160
38,901
2,315
4,268,900
At 31 March 2022
1,005,748
752,530
36,097
-
1,794,375
Southwick Estate Enterprises LLP
Notes to the financial statements (continued)
For the year ended 31 March 2023
Page 9
4
Biological assets
Growing Crops
£
Cost
At 1 April 2022
110,249
Additions - procreation or planting
87,893
Harvest
(110,249)
At 31 March 2023
87,893
Dairy
Beef
Sheep
Total
£
£
£
£
Fair value
At 1 April 2022
391,163
226,078
-
617,241
Additions - purchases
2,200
49,350
29,300
80,850
Transfers in/(out)
41,278
70,444
-
111,722
Decrease due to sales
(54,736)
(44,436)
(20,100)
(119,272)
Decrease due to deaths
-
(1,640)
-
(1,640)
Fair value movement
1,577
20,544
2,900
25,021
At 31 March 2023
381,482
320,340
12,100
713,922
Shown as:
Fixed assets
381,482
Current assets
420,333
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
138,513
105,545
Other debtors
123,664
63,184
262,177
168,729
Southwick Estate Enterprises LLP
Notes to the financial statements (continued)
For the year ended 31 March 2023
Page 10
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
202,877
128,209
Taxation and social security
5,845
3,661
Other creditors
186,985
170,556
395,707
302,426
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
169,215
64,582

 

8
Loans and other debts due to members

In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.

9
Operating lease commitments
Lessee

At the reporting end date the limited liability partnership had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
107,658
9,964
2023-03-312022-04-01false22 November 2023CCH SoftwareCCH Accounts Production 2023.100OC4178662022-04-012023-03-31OC4178662023-03-31OC417866bus:PartnerLLP12022-04-012023-03-31OC4178662021-04-012022-03-31OC417866bus:LimitedLiabilityPartnershipLLP2022-04-012023-03-31OC417866bus:SmallCompaniesRegimeForAccounts2022-04-012023-03-31OC417866bus:FRS1022022-04-012023-03-31OC417866bus:AuditExemptWithAccountantsReport2022-04-012023-03-31OC417866bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:shares