G.H. Chennells (Farms) Limited 01244279 false 2022-04-01 2023-03-31 2023-03-31 The principal activity of the company is farming. Digita Accounts Production Advanced 6.30.9574.0 Software true true 01244279 2022-04-01 2023-03-31 01244279 2023-03-31 01244279 core:HirePurchaseContracts core:CurrentFinancialInstruments 2023-03-31 01244279 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2023-03-31 01244279 core:FinancialAssetsCostLessImpairment 2023-03-31 01244279 core:CurrentFinancialInstruments 2023-03-31 01244279 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 01244279 core:Non-currentFinancialInstruments 2023-03-31 01244279 core:Non-currentFinancialInstruments core:AfterOneYear 2023-03-31 01244279 core:PatentsTrademarksLicencesConcessionsSimilar 2023-03-31 01244279 core:MotorVehicles 2023-03-31 01244279 core:OtherPropertyPlantEquipment 2023-03-31 01244279 bus:SmallEntities 2022-04-01 2023-03-31 01244279 bus:AuditExemptWithAccountantsReport 2022-04-01 2023-03-31 01244279 bus:FullAccounts 2022-04-01 2023-03-31 01244279 bus:RegisteredOffice 2022-04-01 2023-03-31 01244279 bus:Chairman 2022-04-01 2023-03-31 01244279 bus:CompanySecretary1 2022-04-01 2023-03-31 01244279 bus:Director1 2022-04-01 2023-03-31 01244279 bus:Director2 2022-04-01 2023-03-31 01244279 bus:Director3 2022-04-01 2023-03-31 01244279 bus:Director9 2022-04-01 2023-03-31 01244279 bus:PrivateLimitedCompanyLtd 2022-04-01 2023-03-31 01244279 bus:Agent1 2022-04-01 2023-03-31 01244279 core:PatentsTrademarksLicencesConcessionsSimilar 2022-04-01 2023-03-31 01244279 core:MotorVehicles 2022-04-01 2023-03-31 01244279 core:OtherPropertyPlantEquipment 2022-04-01 2023-03-31 01244279 core:PlantMachinery 2022-04-01 2023-03-31 01244279 core:OtherRelatedParties 2022-04-01 2023-03-31 01244279 core:ParentEntities 2022-04-01 2023-03-31 01244279 1 2022-04-01 2023-03-31 01244279 countries:AllCountries 2022-04-01 2023-03-31 01244279 2022-03-31 01244279 core:PatentsTrademarksLicencesConcessionsSimilar 2022-03-31 01244279 core:MotorVehicles 2022-03-31 01244279 core:OtherPropertyPlantEquipment 2022-03-31 01244279 2021-04-01 2022-03-31 01244279 2022-03-31 01244279 core:HirePurchaseContracts core:CurrentFinancialInstruments 2022-03-31 01244279 core:HirePurchaseContracts core:Non-currentFinancialInstruments 2022-03-31 01244279 core:CurrentFinancialInstruments 2022-03-31 01244279 core:CurrentFinancialInstruments core:WithinOneYear 2022-03-31 01244279 core:Non-currentFinancialInstruments 2022-03-31 01244279 core:Non-currentFinancialInstruments core:AfterOneYear 2022-03-31 01244279 core:PatentsTrademarksLicencesConcessionsSimilar 2022-03-31 01244279 core:MotorVehicles 2022-03-31 01244279 core:OtherPropertyPlantEquipment 2022-03-31 iso4217:GBP xbrli:pure

Registration number: 01244279

G.H. Chennells (Farms) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2023

 

G.H. Chennells (Farms) Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 12

 

G.H. Chennells (Farms) Limited

Company Information

Chairman

K Leddington-Hill

Directors

M G Chennells

A C Chennells

P E Chennells

B T Wills (non-executive)

Company secretary

C F Overton

Registered office

The Estate Office
Eagle Hall
Swinderby
Lincoln
LN6 9HZ

Solicitors

Shakespeare Martineau
12-14 Saint Mary's Street
Lincoln
LN5 7EQ

Bankers

HSBC Bank plc
221 High Street
Lincoln
LN1 1TS

Accountants

Atkinson Saul Fairholm Limited
Chartered Accountants
21A Newland
Lincoln
LN1 1XP

 

G.H. Chennells (Farms) Limited

(Registration number: 01244279)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

-

694

Tangible assets

5

3,442,146

2,879,772

Other financial assets

6

9,323

-

 

3,451,469

2,880,466

Current assets

 

Stocks

7

3,502,865

3,110,242

Debtors

8

1,461,630

1,581,219

Cash at bank and in hand

 

12,535

787

 

4,977,030

4,692,248

Creditors: Amounts falling due within one year

9

(5,523,949)

(5,352,038)

Net current liabilities

 

(546,919)

(659,790)

Total assets less current liabilities

 

2,904,550

2,220,676

Creditors: Amounts falling due after more than one year

9

(1,430,046)

(1,113,105)

Provisions for liabilities

(448,054)

(340,477)

Net assets

 

1,026,450

767,094

Capital and reserves

 

Called up share capital

8,300

8,300

Share premium reserve

4,800

4,800

Retained earnings

1,013,350

753,994

Shareholders' funds

 

1,026,450

767,094

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

Directors' responsibilities:

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

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

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

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Directors' Report and Profit and Loss Account has been taken.

 

G.H. Chennells (Farms) Limited

(Registration number: 01244279)
Balance Sheet as at 31 March 2023

Approved and authorised by the Board on 22 November 2023 and signed on its behalf by:
 

.........................................
A C Chennells
Director

 

G.H. Chennells (Farms) Limited

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

1

General information

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

The address of its registered office is:
The Estate Office
Eagle Hall
Swinderby
Lincoln
LN6 9HZ

These financial statements were authorised for issue by the Board on 22 November 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
 

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

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

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

G.H. Chennells (Farms) Limited

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

10% - 25% reducing balance

Motor vehicles

25% reducing balance

Intangible assets

Separately acquired Single Farm Payment entitlements are amortised over 5 years on a straight line basis.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

G.H. Chennells (Farms) Limited

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

Trade creditors

Trade creditors 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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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

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

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

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Financial instruments


Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability are charged as interest expense in the profit and loss account.
 

 

G.H. Chennells (Farms) Limited

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

3

Staff numbers

The average number of persons employed by the company (including directors with contracts of employment) during the year was 27 (2022 - 20).

 

G.H. Chennells (Farms) Limited

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

4

Intangible assets

SFP Entitlements
 £

Total
£

Cost or valuation

At 1 April 2022

3,474

3,474

At 31 March 2023

3,474

3,474

Amortisation

At 1 April 2022

2,780

2,780

Amortisation charge

694

694

At 31 March 2023

3,474

3,474

Carrying amount

At 31 March 2023

-

-

At 31 March 2022

694

694

5

Tangible assets

Motor vehicles
 £

Other property, plant and equipment
 £

Total
£

Cost or valuation

At 1 April 2022

240,599

8,794,971

9,035,570

Additions

-

1,312,356

1,312,356

Disposals

-

(386,767)

(386,767)

At 31 March 2023

240,599

9,720,560

9,961,159

Depreciation

At 1 April 2022

108,548

6,047,250

6,155,798

Charge for the year

11,500

648,410

659,910

Eliminated on disposal

-

(296,695)

(296,695)

At 31 March 2023

120,048

6,398,965

6,519,013

Carrying amount

At 31 March 2023

120,551

3,321,595

3,442,146

At 31 March 2022

132,051

2,747,721

2,879,772

 

G.H. Chennells (Farms) Limited

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

6

Other financial assets (current and non-current)

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

Additions

9,323

9,323

At 31 March 2023

9,323

9,323

Carrying amount

At 31 March 2023

9,323

9,323

7

Stocks

2023
£

2022
£

Stocks and growing crop value

3,502,865

3,110,242

8

Debtors

Note

2023
£

2022
£

Trade debtors

 

963,387

1,507,506

Amounts owed by related parties

11

71,080

-

Prepayments

 

42,250

56,972

Other debtors

 

384,913

16,741

 

498,243

73,713

   

1,461,630

1,581,219

 

G.H. Chennells (Farms) Limited

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

9

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

10

2,924,676

2,869,258

Trade creditors

 

1,375,765

1,303,206

Taxation and social security

 

17,700

11,238

Other creditors

 

1,205,808

1,168,336

 

5,523,949

5,352,038


Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £2,924,676 (2022 - £2,869,258).

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

10

1,430,046

1,113,105

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £1,430,046 (2022 - £1,113,105).

10

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

588,468

324,548

Hire purchase contracts

841,578

788,557

1,430,046

1,113,105

 

G.H. Chennells (Farms) Limited

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

2023
£

2022
£

Current loans and borrowings

Bank borrowings

211,861

233,000

Bank overdrafts

2,431,892

2,290,160

Hire purchase contracts

280,923

346,098

2,924,676

2,869,258

11

Related party transactions

 

G.H. Chennells (Farms) Limited

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

Other transactions with directors

A loan exists between A C Chennells and the company. At the year end the amount owed to A C Chennells was £208,990 (2022 - £208,990). Interest of £8,039 was paid to A C Chennells during the year (2022 - £3,089).

Summary of transactions with parent

The company benefits from the use of land and buildings owned by its parent company, Eagle Hall Estates Limited, for a nominal rent due under a Farm Business Tenancy.

A loan accont exists between the company and its parent. Ath the year end the amount due from G.H. Chennells (Farms) Limited was £71,080 (2022 - £nil).


 

Summary of transactions with other related parties

MC2 London Ltd
 During the year under review sales invoices of £20,355 were issued to MC2 London Ltd, a company of which M G Chennells, one of the directors of this company is also a director. Purchase invoices of £69,761 were received from MC2 London Ltd during the year.

12

Parent and ultimate parent undertaking

The company's immediate parent is Eagle Hall Estates Limited, incorporated in England and Wales, whose registered office address is The Estate Office, Eagle Hall,, Swinderby, Lincoln, LN6 9HZ.