REGISTERED NUMBER: |
STRATEGIC REPORT, DIRECTORS' REPORT AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
YAREGRAIN PLC |
REGISTERED NUMBER: |
STRATEGIC REPORT, DIRECTORS' REPORT AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
YAREGRAIN PLC |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 4 |
Independent Auditors' Report | 6 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
YAREGRAIN PLC |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Certified Accountants |
Statutory Auditors |
Ingram House |
Meridian Way |
Norwich |
Norfolk |
NR7 0TA |
SOLICITORS: |
Kingfisher House |
1 Gilders Way |
Norwich |
Norfolk |
NR3 1UB |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2023 |
The directors present their strategic report for the year ended 30 June 2023. |
REVIEW OF BUSINESS |
The Yaregrain business has, like many others, had to adapt to various resource and cost pressures in recent years, firstly through the Covid pandemic and then through the effects of war in Ukraine and inflationary pressures. With the legacy of exceptional grain and oilseed prices remaining into summer 2022, Yaregrain had to review insurance cover for crops being processed on site. |
Members on the whole avoided the hike in drying costs with 2022 being another very dry, early harvest which concluded rapidly in the middle of August. Malting Barley and Wheat quality was excellent, delivering the market a vintage specification of dry crop and sending strong returns back to farm. |
Site expansion has continued, with planned extra storage and processing capacity added during the year in readiness for the 2023 harvest. The commercial position also improved with EBITDA £133k vs £119k (2022) and an operating profit of £14k. New business with Simpsons Malt bedded in, with the business absorbing £10k of extra cost in the period adjusting to new intake protocols. |
The Board continue the prudent approach to finance; the site is now worth significantly more than the book value of land and buildings. A thorough review of charges was conducted and communicated ahead of 2023, allowing growers to budget and plan their drying strategies for the coming harvest. |
The team of Glenn, Jack and Darren have again delivered an excellent service to members, customers and hauliers. They are professional, efficient and good humoured which is appreciated across the supply chain. |
FUTURE DEVELOPMENTS |
Yaregrain brings value and assurance to the supply chain for farmers and customers; the board remain confident to continue investing in processing capacity and efficiency for the medium term. |
There are more competing demands on farm land from renewables, stewardship and potentially carbon offsetting as we approach the net zero deadlines. Our climate and land type remain productive for the wheat and malting barley crops we handle and our view is they will remain at the core of our members businesses for the foreseeable future. |
The results for the year, which were impacted by the items detailed above, were as follows: |
2023 | 2022 |
£'000 | £'000 |
TURNOVER | 556 | 527 |
GROSS PROFIT | 196 | 164 |
(LOSS) BEFORE TAXATION | (21 | ) | (31 | ) |
EBITDA | 133 | 119 |
COVID-19 PANDEMIC |
After the challenges faced in the prior year due to the Covid-19 pandemic, measures introduced to mitigate the impact of Covid-19 on the business has kept disruption to a minimum. Despite the continuing global economic uncertainties, there has been an improvement in the performance of the company during the year. Relationships have been maintained with key customers and new opportunities pursued as the company looks to grow its operations organically and consequently the directors consider the business to be in a good position for the new financial year and that the company will continue to operate as a going concern. |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks associated with Yaregrain plc revolve around the nature of the harvests, which directly impacts upon demand for the grain processing services and the type of processing required. For instance, a wet harvest gives rise to additional drying services being required and income will increase. Similarly, the harvest yields directly influence the throughput of grain handled by the company. |
The company manages this risk by carefully monitoring costs and also ensuring that core recurring income is sufficient to cover the company's obligations. The increased capacity of the site, achieved through the recent development, will also enable the company to make significantly higher returns of profit by virtue of the income increasing with volume but with only a proportionately small increase in costs. |
The other principal risks facing the company are: |
Liquidity risk |
The company reviews its working capital on a continual basis and goes through a rigorous and robust periodic forecasting process to further analyse this. |
Credit risk |
The company sells to most of its customers on customary credit terms and is, as a result, exposed to the usual credit risk and cash flow risk associated with this form of trading. It manages this risk through rigorous credit control procedures on a continual basis. Covid-19 may impact the ability of customers to make payments, however the majority of new debts are still being collected in accordance with agreed terms. |
Client dependency |
The company is not over reliant on a few large customers and is not exposed to a significant reduction in turnover and profits if orders do not continue at existing levels. |
Human resource risk |
Failure to maintain a sufficiently skilled workforce and retain key staff can adversely affect any business. |
Interest risk |
The company has some structured debt but the directors feel that interest rate risk is modest. |
Inflation/Economic risk |
As with most companies, the business is exposed to the direct effect of increasing levels of inflation and interest rates. The directors continue to monitor costs, particularly utilities and labour costs and supply for the business and take these factors into consideration when making pricing decisions. |
OUTLOOK AND FUTURE DEVELOPMENTS |
Yaregrain has continued to function within the Covid-19 restrictions, with hauliers and growers respecting site protocols. Glenn and Jack have flexed their working hours to maintain service to growers and customers, and to minimise personal contact. |
ON BEHALF OF THE BOARD: |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 30 JUNE 2023 |
The directors present their report with the financial statements of the company for the year ended 30 June 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of advanced processing of agricultural produce. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2023. |
FUTURE DEVELOPMENTS |
The directors consider the future developments of the company are covered under the Future Developments section of the Strategic Report. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
PAYMENTS TO CREDITORS |
The company does not have a formal policy that it follows with regard to payments to suppliers. It agrees payment terms with its suppliers when it enters into binding purchase contracts for the supply of goods and services. Its suppliers are in that way made aware of these terms. The company seeks to abide by these payment terms when it is satisfied that the supplier has provided the goods or services in accordance with the agreed terms and conditions. |
GOING CONCERN |
The director has a reasonable expectation that the company has adequate resources to continue in operational existence for the duration of the going concern period. |
In considering whether the financial statements can be prepared on a going concern basis, the director has assessed the expected business activity level of the company together with factors likely to affect its performance, financial position and the capacity to raise funds. |
FINANCIAL RISK MANAGEMENT |
The directors consider the Financial Risk Management of the company is covered under the Principal Risks and Uncertainties section of the Strategic Report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic report, Director's 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 prepared 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 the 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. |
The directors 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. |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 30 JUNE 2023 |
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 |
CG LEE Limited, having expressed their willingness to continue in office, will be deemed reappointed for the next financial year in accordance with Section 487(2) of the Companies Act 2006 unless the company receives notice under Section 488(1) of the Act. |
ON BEHALF OF THE BOARD: |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
YAREGRAIN PLC |
Opinion |
We have audited the financial statements of Yaregrain plc (the 'company') for the year ended 30 June 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2023 and of its loss 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. Our evaluation of the directors' assessment of the company's ability to continue to adopt the going concern basis of accounting included 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. |
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and tax legislation, and we considered the extent to which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included: |
- | discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation; |
- | evaluating management's controls designed to prevent and detect irregularities; |
- | identifying and testing of journal entries for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; and |
- | reviewing significant accounting estimates for management bias. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
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. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
YAREGRAIN PLC |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of 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 Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page 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. |
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF |
YAREGRAIN PLC |
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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. |
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to employment laws and tax legislation, and we considered the extent to which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included: |
- | discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation; |
- | evaluating management's controls designed to prevent and detect irregularities; |
- | identifying and testing of journal entries for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; and |
- | reviewing significant accounting estimates for management bias. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
A further description of our responsibilities 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 Auditors' Report. |
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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Certified Accountants |
Statutory Auditors |
Ingram House |
Meridian Way |
Norwich |
Norfolk |
NR7 0TA |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 5 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(62,271 | ) | (84,730 | ) |
Other operating income | 6 |
OPERATING PROFIT/(LOSS) | 9 | ( |
) |
Interest payable and similar expenses | 10 |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 11 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
BALANCE SHEET |
30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Retained earnings | 19 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2023 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 July 2021 | ( |
) |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30 June 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30 June 2023 | ( |
) |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 23 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase or finance lease rental payments paid |
( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Bank loan repayments in year | ( |
) | ( |
) |
Movement in loans from related company | 500,837 | (133,593 | ) |
Hire purchase repayments in year | ( |
) |
Share issue |
Net cash from financing activities |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
24 |
9,928 |
Cash and cash equivalents at end of year | 24 | 59,082 | 158,955 |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
1. | STATUTORY INFORMATION |
Yaregrain Plc is a public company incorporated in England under the Companies Act. The company's registered number and registered office address can be found on the Company Information page. |
The company's principal activity is set out in the Director's Report on page 4. |
2. | STATEMENT OF COMPLIANCE |
The financial statements of Yaregrain Plc have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements are prepared on a going concern basis, under the historical cost convention as modified by the recognition of certain financial assets and liabilities measured at fair value. The functional and presentation currency of these financial statements is pound sterling. |
The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company's accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 4. |
Going concern |
The directors make an estimate of the future performance of the company in order to prepare the financial statements under the going concern methodology. When assessing the future performance, the directors consider anticipated profitability and cashflows, taking into account the current and expected market conditions, together with operational working capital requirements and financing opportunities. At the year ended 30 June 2023 the company had net current liabilities of £901,693. The parent company, Dewing Grain Limited, has provided an undertaking to support the company, if required, by the provision of a loan facility. Based on forecast cashflows and finance facilities, the directors have a reasonable expectation that the company has adequate resources to continue to meet the obligations of the company as they fall due. Accordingly, the going concern basis has been adopted when preparing these financial statements. |
The principal accounting policies of the company, applied in the preparation of the financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. |
Turnover |
Turnover is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance under a contract. It is measured at the fair value of the right to consideration, which represents amounts chargeable to the customer, including any expenses and disbursements but excluding value added tax. |
Turnover not billed to customers is included as accrued income within debtors. Invoices raised in advance of work completed are included as deferred income within creditors. |
Tangible assets |
Freehold property | - |
Grain silos | - |
Plant and machinery | - |
Motor vehicles | - |
Computer equipment | - |
Tangible assets are recorded at cost less accumulated depreciation. Depreciation is calculated so as to write off the cost of fixed assets, less their estimated residual values, over the expected useful economic lives of the assets concerned. |
Assets under construction are capitalised and are not depreciated until the accounting period in which they are brought into use. |
The company's freehold land is not depreciated. |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
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 are expected to apply to the reversal of the timing difference. |
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. |
Employee benefits |
Short term benefits, including holiday pay and other similar non-monetary benefits are recognised as an expense in the period in which the service is received. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease. |
Investments |
Investments held as fixed assets are stated at cost less provision for any permanent diminution in value. |
Cash and cash equivalents |
Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts, where applicable, are shown within borrowings in current liabilities. |
Grants |
Grants which are to acquire tangible assets are initially deferred and released to the statement of comprehensive income over the estimated useful lives of the relevant assets. |
Financial instruments |
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
4. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
a) Critical judgements in applying the company's accounting policies |
There are no critical judgements in applying the company's accounting policies. |
b) Key accounting estimates and assumptions |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
Depreciation of tangible assets |
An allowance for depreciation is made against tangible assets and charged to profit or loss over the useful economic lives of the assets. The useful economic life assessment of an asset is based on the time in which benefits of the asset are realised to the company. See note 12 for the net carrying value of the tangible assets, and note 3 for the useful economic lives for each class of assets. |
Impairment of debtors |
The directors make an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, the directors consider factors including the credit worthiness and financial conditions of customers. See note 14 for the net carrying amount of the debtors and associated impairment provision. |
Going concern |
The directors make an estimate of the future performance of the company, and consider its available financing facilities, in order to prepare the financial statements under the going concern methodology. When assessing the future performance, the directors considers financial projections which reflect the current and expected market conditions, operational cash flow requirements and financing opportunities. |
5. | TURNOVER |
The whole of turnover is attributable to the company's principal activity. All turnover arose within the United Kingdom. |
6. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Grant income |
7. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Direct labour (excluding directors) |
8. | DIRECTORS' EMOLUMENTS |
2023 | 2022 |
£ | £ |
Directors' remuneration |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
9. | OPERATING PROFIT/(LOSS) |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 195,742 | 203,706 |
Auditors' remuneration |
- audit of the financial statements | 6,935 | 6,506 |
10. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Bank loan interest |
Hire purchase |
11. | TAXATION |
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 30 June 2023 nor for the year ended 30 June 2022. |
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 |
£ | £ |
Loss before tax | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of (2022 - |
( |
) |
( |
) |
Effects of: |
Unutilised trading losses carried forward | 3,991 | 5,821 |
Total tax charge | - | - |
Factors that may affect current and future tax charges |
In the Spring Budget 2021, it was announced that from 1 April 2023 the main rate of UK corporation tax would increase from 19% to 25%. This rate was substantively enacted on 24 May 2021. Deferred taxes at the balance sheet date have been measured using the applicable enacted tax rates and reflected in these financial statements. |
As at 30 June 2023, the amount of unused tax losses is £3,929,714. |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
12. | TANGIBLE ASSETS |
Freehold | Grain | Plant and |
property | silos | machinery |
£ | £ | £ |
COST |
At 1 July 2022 |
Additions |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
Additions |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Non-depreciable assets |
Included within the cost of freehold property is freehold land of £201,868 (2022 - £201,868) which is not depreciated. |
Security |
Freehold property has been pledged as security against the bank loans of the company. |
13. | INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other taxation and social security |
Prepayments and accrued income |
No provisions for impairment are included against trade debtors in the current year or prior year. |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Trade creditors |
Other taxation and social security |
Amounts due to group undertakings |
Accruals and deferred income |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 17) |
Accruals and deferred income |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more than 5 yrs | 40,374 | 90,265 |
Included in loans is a loan of £238,137 from Barclays Bank PLC which is repayable in 33 instalments. Interest is charged on this loan at 2.75% above the Bank's Base Rate. |
Included in loans is a loan of £299,608 from Barclays Bank PLC which is repayable in 84 instalments. Interest is charged on this loan at 2.70% above the Bank's Base Rate. |
Bank loans are secured by a charge over the company's freehold property and by a debenture over the company's assets. |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
100 | Ordinary 'A' | £5,000 | 500,000 | 500,000 |
300 | Ordinary 'B' | £6,000 | 1,800,000 | 1,800,000 |
2,300,000 | 2,300,000 |
Every Ordinary 'A' share carries eight votes each and every Ordinary 'B' share carries one vote each. |
Each class of share entitles the shareholder to a dividend at the discretion of the directors. |
19. | RESERVES |
Retained earnings represents accumulated retained profits and losses. |
Share premium account includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium. |
20. | ULTIMATE PARENT COMPANY |
Dewing Grain Limited is regarded by the directors as being the company's ultimate parent company. |
21. | RELATED PARTY DISCLOSURES |
During the year the company traded with Dewing Grain Limited, which owns 54.27% of the voting rights in Yaregrain Plc. The company was recharged £47,832 (2022 - £43,870) by Dewing Grain Limited. Sales for the year to Dewing Grain Limited was £338,829 (2022 - £169,251). |
As at 30 June 2023, amounts due to Dewing Grain Limited were £704 (2022 - Nil) and amounts due from Dewing Grain Limited were £Nil (2022 - £7,087). Accrued income at the year ended 30 June 2023 due from Dewing Grain Limited was £Nil (2022 - £95,268). |
As at 30 June 2023, a loan due to Dewing Grain Limited was £534,151 (2022 - £33,314) which is repayable on demand. No interest was charged on this loan. |
22. | PARENT AND ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |
The ultimate parent undertaking is Dewing Grain Limited. |
Dewing Grain Limited is the company of the smallest and largest group of undertakings for which group financial statements are drawn up for the year ended 30 June 2023. Copies of the consolidated financial statements of Dewing Grain Limited are publicly available from Companies House, Crown Way, Cardiff CF14 3UZ. |
23. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Loss before taxation | ( |
) | ( |
) |
Depreciation charges |
Government grant income | ( |
) | ( |
) |
Finance costs | 34,733 | 21,906 |
133,470 | 118,976 |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
YAREGRAIN PLC (REGISTERED NUMBER: 07139742) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
24. | 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 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 59,082 | 158,955 |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 158,955 | 9,928 |
25. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.7.22 | Cash flow | At 30.6.23 |
£ | £ | £ |
Net cash |
Cash at bank | 158,955 | (99,873 | ) | 59,082 |
158,955 | ( |
) | 59,082 |
Debt |
Debts falling due within 1 year | (116,211 | ) | (4,856 | ) | (121,067 | ) |
Debts falling due after 1 year | (528,320 | ) | 111,642 | (416,678 | ) |
(644,531 | ) | 106,786 | (537,745 | ) |
Total | (485,576 | ) | 6,913 | (478,663 | ) |