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REGISTERED NUMBER: 00821836 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2023

FOR

P G RIX (FARMS) LIMITED

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


P G RIX (FARMS) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 28 FEBRUARY 2023







DIRECTORS: Mr J G Rix
Mr W H Rix
Mrs M M Rix
Mrs J M Rix
Mr G P Rix
Mr S J Rix





SECRETARY: Mrs M M Rix





REGISTERED OFFICE: Lodge Farm
Boxted Road
Great Horkesley
Colchester
Essex
CO6 4AP





REGISTERED NUMBER: 00821836 (England and Wales)





AUDITORS: MHA
910 The Crescent
Colchester Business Park
Colchester
Essex
CO4 9YQ

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023

The directors present their strategic report for the year ended 28 February 2023.

REVIEW OF BUSINESS
The Directors consider that the business continues to produce robust results in its 59th year. Turnover increased by £1.6m, primarily due to the impact of inflation, which also translated into the slight fall in gross profit margin from 67% to 65%. Net profit before tax was 16.54% of turnover (2022 - 21.95%). Although a decrease of 5.41%, given the challenging market conditions arising from the impact of prices rises, particularly in respect of fertiliser and fuel due to the war in Ukraine, the Directors are satisfied with the overall performance of the Company.

The Company continued its programme of significant investment in equipment, with tangible fixed asset additions of £2,487,551 in the year. Cash funds of £6,042,131 provide a strong and sufficient resource for ongoing trading purposes and to fund anticipated future capital expenditure.

The Balance Sheet of the Company continues to be robust, with retained earnings having increased in the year by 5.56% to £15,003,581.

PRINCIPAL RISKS AND UNCERTAINTIES
The directors consider the company to be well placed to face the risks and uncertainties associated with volatile crop prices, changing customer demands, and possible adverse weather conditions.

ON BEHALF OF THE BOARD:





Mrs M M Rix - Secretary


6 November 2023

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023

The directors present their report with the financial statements of the company for the year ended 28 February 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of farming.

There has been no significant change in the company's activities during the financial year.

DIVIDENDS
Interim dividends per share were paid as follows:
Ordinary A Shares £1 shares £333.33 - 28 February 2023
Ordinary B Shares £1 shares £333.33 - 28 February 2023


The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 28 February 2023 will be £ 1,000,000 .

RESEARCH AND DEVELOPMENT
During the year the company undertook research and development activities around sustainable methods to enhance onion crop quality and yield, and improving soil health to boost potato crop performance

FUTURE DEVELOPMENTS
The long term sustainability of the farm is of primary importance to the directors, and the company intends to continue to operate in a commercially viable manner that balances the needs of all key stakeholders.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report.

Mr J G Rix
Mr W H Rix
Mrs M M Rix
Mrs J M Rix
Mr G P Rix
Mr S J Rix

FINANCIAL INSTRUMENTS
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from operating activities which are conducted almost entirely in sterling.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.


P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 28 FEBRUARY 2023

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
Following a rebranding exercise on 15 May 2023 the trading name of the company's independent auditor changed from MHA MacIntyre Hudson to MHA. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting

ON BEHALF OF THE BOARD:



Mrs M M Rix - Secretary


6 November 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
P G RIX (FARMS) LIMITED

Opinion
We have audited the financial statements of P G Rix (Farms) Limited (the 'company') for the year ended 28 February 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 28 February 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
P G RIX (FARMS) LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on pages three and four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management around actual and potential litigation and claims;
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluation the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
- Reviewing minutes of meetings of those charged with governance; and
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
P G RIX (FARMS) LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.




Cara Miller ACCA (Senior Statutory Auditor)
for and on behalf of MHA
Colchester

22 November 2023


MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership
in England and Wales (registered number OC312313)

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

INCOME STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
Notes £    £   

TURNOVER 13,538,964 11,940,723

Cost of sales 4,740,426 3,942,001
GROSS PROFIT 8,798,538 7,998,722

Administrative expenses 6,660,345 5,545,017
2,138,193 2,453,705

Other operating income 470,093 433,988
OPERATING PROFIT 6 2,608,286 2,887,693

Interest receivable and similar income 29,552 1,511
2,637,838 2,889,204

Interest payable and similar expenses 7 398,070 268,126
PROFIT BEFORE TAXATION 2,239,768 2,621,078

Tax on profit 8 449,803 625,158
PROFIT FOR THE FINANCIAL YEAR 1,789,965 1,995,920

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,789,965 1,995,920


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,789,965

1,995,920

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

BALANCE SHEET
28 FEBRUARY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 31,460 56,661
Tangible assets 11 11,037,919 10,585,369
Investments 12 55,353 55,353
11,124,732 10,697,383

CURRENT ASSETS
Stocks 13 3,752,820 3,201,716
Debtors 14 4,133,597 3,521,935
Cash at bank 6,042,131 5,829,500
13,928,548 12,553,151
CREDITORS
Amounts falling due within one year 15 9,241,715 8,454,869
NET CURRENT ASSETS 4,686,833 4,098,282
TOTAL ASSETS LESS CURRENT
LIABILITIES

15,811,565

14,795,665

PROVISIONS FOR LIABILITIES 16 799,984 574,049
NET ASSETS 15,011,581 14,221,616

CAPITAL AND RESERVES
Called up share capital 17 3,000 3,000
Share premium 18 5,000 5,000
Retained earnings 18 15,003,581 14,213,616
SHAREHOLDERS' FUNDS 15,011,581 14,221,616

The financial statements were approved by the Board of Directors and authorised for issue on 6 November 2023 and were signed on its behalf by:




Mr J G Rix - Director



Mr W H Rix - Director


P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Balance at 1 March 2021 3,000 13,217,696 5,000 13,225,696

Changes in equity
Dividends - (1,000,000 ) - (1,000,000 )
Total comprehensive income - 1,995,920 - 1,995,920
Balance at 28 February 2022 3,000 14,213,616 5,000 14,221,616

Changes in equity
Dividends - (1,000,000 ) - (1,000,000 )
Total comprehensive income - 1,789,965 - 1,789,965
Balance at 28 February 2023 3,000 15,003,581 5,000 15,011,581

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 4,205,976 3,069,593
Interest paid (398,070 ) (268,126 )
Tax paid (653,357 ) (298,995 )
Net cash from operating activities 3,154,549 2,502,472

Cash flows from investing activities
Purchase of tangible fixed assets (2,487,551 ) (2,720,532 )
Sale of tangible fixed assets 516,081 1,213,146
Interest received 29,552 1,511
Net cash from investing activities (1,941,918 ) (1,505,875 )

Cash flows from financing activities
Equity dividends paid (1,000,000 ) (1,000,000 )
Net cash from financing activities (1,000,000 ) (1,000,000 )

Increase/(decrease) in cash and cash equivalents 212,631 (3,403 )
Cash and cash equivalents at beginning of
year

2

5,829,500

5,832,903

Cash and cash equivalents at end of year 2 6,042,131 5,829,500

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 2,239,768 2,621,078
Depreciation charges 1,828,119 1,634,010
Profit on disposal of fixed assets (283,998 ) (161,324 )
Finance costs 398,070 268,126
Finance income (29,552 ) (1,511 )
4,152,407 4,360,379
Increase in stocks (551,104 ) (353,220 )
Increase in trade and other debtors (572,382 ) (799,908 )
Increase/(decrease) in trade and other creditors 1,177,055 (137,658 )
Cash generated from operations 4,205,976 3,069,593

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 6,042,131 5,829,500
Year ended 28 February 2022
28.2.22 1.3.21
£    £   
Cash and cash equivalents 5,829,500 5,832,903


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.3.22 Cash flow At 28.2.23
£    £    £   
Net cash
Cash at bank 5,829,500 212,631 6,042,131
5,829,500 212,631 6,042,131
Total 5,829,500 212,631 6,042,131

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023

1. COMPLIANCE WITH ACCOUNTING STANDARDS

The Accounts have been prepared in accordance with applicable accounting standards. There were no material departures from those standards.

2. STATUTORY INFORMATION

P G Rix (Farms) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

3. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.

Critical accounting judgements and key sources of estimation uncertainty
In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgement, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity in making such judgement, estimates and assumptions, the actual results and outcomes may differ.

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

The directors do not believe that there have been judgements made in the process of applying the below accounting policies that have had a significant effect on the amounts recognised in the financial statements. Furthermore, the directors consider that there are no areas of estimation uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from the sale of goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Camgrain storage is being amortised evenly over its estimated useful life of ten years.

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

In line with the applicable accounting standards freehold land is not depreciated. Depreciation on all other assets is calculated so as to write off the cost over their estimated useful lives:

Freehold property - 2% per annum straight line

Short leasehold - 15% on the reducing balances

Plant and machinery - 15-25% on the reducing balances.

Stocks
The farm valuation is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase and costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments
The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price. Such assets are subsequently carried at amortised cost using the effective interest method.

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.The Company's investments in equity instruments are not publicly traded, and therefore such assets are subsequently measured at cost less impairment.

Basic financial liabilities, including trade and other payables and loans from Directors, are initially recognised at transaction price. Debt instruments are subsequently carried at amortised cost, using the effective interest method.

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

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

3. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that were expected to apply to the reversal of the timing difference at that date.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Government grants
Amounts receivable by the company during the accounting period are credited to the profit and loss account.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,650,157 1,524,180
Social security costs 195,280 162,031
Other pension costs 186,755 103,449
2,032,192 1,789,660

The average number of employees during the year was as follows:
2023 2022

Management 6 6
Farm employees 31 28
37 34

5. DIRECTORS' EMOLUMENTS AND KEY MANAGEMENT REMUNERATION

During the year directors' emoluments including benefits in kind amounted to £392,273 (2022: £368,689) and directors' pension contributions to money purchase schemes amounted to £8,000 (2022: £8,000).

There were two directors to whom retirement benefits were accruing from money purchase schemes (2022: 2).

Emoluments of the highest paid director amounted to £99,676 (2022: £94,143).

During the year none of the directors exercised and share options, or received any shares in respect of qualifying services under a long term incentive scheme.

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 956,463 917,763
Depreciation - owned assets 1,802,918 1,608,809
Profit on disposal of fixed assets (283,998 ) (161,324 )
Camgrain storage amortisation 25,201 25,201
Auditors remuneration 11,500 10,000
Auditors remuneration for non audit services - 11,626

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Directors' loan interest 398,070 268,126

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 223,868 390,209

Deferred tax 225,935 234,949
Tax on profit 449,803 625,158

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 2,239,768 2,621,078
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

425,556

498,005

Effects of:
Expenses not deductible for tax purposes 3,434 3,882
Capital allowances in excess of depreciation (183,926 ) (103,437 )
Research and development tax credits (21,196 ) (8,240 )
Movement in deferred tax 225,935 234,948
Total tax charge 449,803 625,158

Factors that may affect future tax charges
An increase in the UK corporation tax rate from 19% to 25% was substantively enacted in June 2021 and took effect from 1 April 2023 for profits over £250,000. For profits under £50,000 the tax rate remains the same at 19% and for profits between these figures they are subject to 25% but reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate.

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

9. DIVIDENDS
2023 2022
£    £   
Ordinary A Shares shares of £1 each
Interim 500,000 500,000
Ordinary B Shares shares of £1 each
Interim 500,000 500,000
1,000,000 1,000,000

10. INTANGIBLE FIXED ASSETS
Camgrain
storage
£   
COST
At 1 March 2022
and 28 February 2023 541,385
AMORTISATION
At 1 March 2022 484,724
Amortisation for year 25,201
At 28 February 2023 509,925
NET BOOK VALUE
At 28 February 2023 31,460
At 28 February 2022 56,661

During the year, historic intangible assets which had been written down to nil relating to contributions to electricity supply, sugarbeet outgoers scheme and single farm payment entitlement were deemed to no longer hold any economic benefit and therefore are no longer reflected on the balance sheet.

11. TANGIBLE FIXED ASSETS
Freehold
land and Short Plant and
property leasehold machinery Totals
£    £    £    £   
COST
At 1 March 2022 4,225,964 8,844,968 17,007,054 30,077,986
Additions 539,439 56,841 1,891,271 2,487,551
Disposals - - (991,678 ) (991,678 )
At 28 February 2023 4,765,403 8,901,809 17,906,647 31,573,859
DEPRECIATION
At 1 March 2022 - 6,804,424 12,688,193 19,492,617
Charge for year 118,130 313,426 1,371,362 1,802,918
Eliminated on disposal - - (759,595 ) (759,595 )
At 28 February 2023 118,130 7,117,850 13,299,960 20,535,940
NET BOOK VALUE
At 28 February 2023 4,647,273 1,783,959 4,606,687 11,037,919
At 28 February 2022 4,225,964 2,040,544 4,318,861 10,585,369

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

11. TANGIBLE FIXED ASSETS - continued

Included in the cost of land and property is freehold land of £3,530,226 (2022 - £3,530,226) which is not depreciated.

12. FIXED ASSET INVESTMENTS

2023 2022
£    £   
Other investments not loans 20,020 20,020
Other loans 35,333 35,333
55,353 55,353

Additional information is as follows:
Unlisted
investments
£   
COST
At 1 March 2022
and 28 February 2023 20,020
NET BOOK VALUE
At 28 February 2023 20,020
At 28 February 2022 20,020
Special
loan
£   
At 1 March 2022
and 28 February 2023 35,333

Both of the above relate to an investment in a Registered Society under the Co-operative and Community Benefit Societies Act 2014.

13. STOCKS
2023 2022
£    £   
Stock (farm valuation) 3,752,820 3,201,716

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade and other debtors 3,943,614 3,362,096
Corporation tax 39,280 -
Prepayments 150,703 159,839
4,133,597 3,521,935

Included within trade and other debtors are balances related to accrued income of £2,646,684 (2022:£1,141,566).

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 1,333,031 759,585
Corporation tax - 390,209
Social security and other taxes 118,870 131,419
Other creditors: directors' current accounts 7,618,508 7,052,349
Accruals and deferred income 171,306 121,307
9,241,715 8,454,869

The company's overdraft facility is secured by a corporate mortgage dated 15th November 1996 over commercial freehold farm and land at Wissington Grove, Nayland, in favour of Lloyds Bank plc.

Note 20 gives details of personal guarantees from two directors.

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 799,984 574,049

Deferred
tax
£   
Balance at 1 March 2022 574,049
Provided during year 225,935
Balance at 28 February 2023 799,984

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,500 Ordinary A Shares £1 1,500 1,500
1,500 Ordinary B Shares £1 1,500 1,500
3,000 3,000

The holders of the majority of the issued "A" Ordinary shares can appoint up to three directors and the holders of the majority of the issued "B" Ordinary Shares can appoint another three directors. In all other respects shares rank pari passu.

18. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 March 2022 14,213,616 5,000 14,218,616
Profit for the year 1,789,965 1,789,965
Dividends (1,000,000 ) (1,000,000 )
At 28 February 2023 15,003,581 5,000 15,008,581

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 28 FEBRUARY 2023

19. CAPITAL COMMITMENTS

At the balance sheet date the company had total capital commitments of £46,270, and had already paid deposits in respect of those assets of £16,645 to leave a balance of £29,625.

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

a) J G Rix and W H Rix, directors of the company, rent land to the company under normal farm business tenancy terms. Rents are credited to the directors current accounts as they fall due.

b) J G Rix and W H Rix, directors of the company, have entered into a guarantee with Lloyds Bank plc to support the banking facilities available to the limited company. The facility is limited to £750,000 and the guarantee is supported by a charge over land rented to the limited company.

c) Loan interest is paid on the directors current accounts, calculated under normal commercial terms, based on the current account balances after adjusting for material movements during the year.

d) G P Rix, J G Rix and Mrs J M Rix, directors of the company, rent land and buildings from the company under normal farm business tenancy terms. Rents are debited to the directors current accounts as they become payable.

21. RELATED PARTY DISCLOSURES

The company entered into transactions during the year with a Group under common control. The net value of transactions that took place were as follows :

- Sold produce £5,913,283 (2022: £6,730,763)
- Rented land and charges for services £1,113,000 (2022: £806,013)
- Services purchased of £2,859 (2022: £2,725)
These transactions took place on a normal commercial basis at open market value, and the balance outstanding at year end was £1,652,639 (2022: £2,180,712).

The company also rented land and charged for services at open market value to a partnership under the control of two of the directors. Total charges during the year were £52,184 (2022: £51,410), of which £48,566 (2022: £51,410) was outstanding at the balance sheet date.

The company rented land at open market value from a pension scheme in which the directors of the company are beneficiaries. Total charges during the year were £108,494 (2022: £108,494), of which £54,247 (2022: £54,247) was outstanding at the balance sheet date.

22. ULTIMATE CONTROLLING PARTY

The company is under the ultimate control of J G Rix, W H Rix, G P Rix and S J Rix.