Company registration number 01348974 (England and Wales)
ROSS FARM MACHINERY LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 NOVEMBER 2023
PAGES FOR FILING WITH REGISTRAR
ROSS FARM MACHINERY LIMITED
CONTENTS
Page
Strategic report
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
ROSS FARM MACHINERY LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 1 -
30 November 2023
31 May 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
379,728
Current assets
Stocks
-
9,235,283
Debtors
4
256,994
4,789,526
Cash at bank and in hand
8,518,883
3,652,814
8,775,877
17,677,623
Creditors: amounts falling due within one year
5
(525,576)
(10,503,390)
Net current assets
8,250,301
7,174,233
Total assets less current liabilities
8,250,301
7,553,961
Creditors: amounts falling due after more than one year
6
(875,696)
Provisions for liabilities
(80,551)
Net assets
8,250,301
6,597,714
Capital and reserves
Called up share capital
30,000
30,000
Capital redemption reserve
330,000
330,000
Profit and loss reserves
7,890,301
6,237,714
Total equity
8,250,301
6,597,714
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial period ended 30 November 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
ROSS FARM MACHINERY LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 NOVEMBER 2023
30 November 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 19 February 2024 and are signed on its behalf by:
RA Brett
Director
Company Registration No. 01348974
ROSS FARM MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 3 -
1
Accounting policies
Company information
Ross Farm Machinery Limited is a private company limited by shares incorporated in England and Wales. The registered office is Units 8/9, Alton Road Trading Estate, Ross on Wye, Herefordshire, HR9 5NB. The company registration number is 01348974.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
On 1 February 2023 the assets (and effectively the trade) of Ross Farm Machinery Limited were sold via an
asset purchase agreement.
During the period the new owners continued to trade from the depots of Ross Farm Machinery until 30 November 2023 when trade ceased and the company is now being wound up. As a result the financial statements have been prepared on a breakup basis.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
a) Wholegood sales - Sales are recognised when the risks and rewards of ownership have been transferred to the
buyer. For domestic sales this is considered to be when an item has been delivered to a customer. Export sales
are recognised once the goods are available for delivery and payment has been received
.
b) Parts sales - Over the counter sales are recognised on the day of the transaction. Parts used in the servicing
department are recognised per the criteria below.
c) Servicing income - The company services and repairs machinery. Revenue is recognised in the accounting
period in which the services are rendered when the outcome of the type of service work undertaken can be
estimated reliably. Uncompleted work at the year end is valued based upon hours spent at a recovery rate
including attributable overheads and average profit rate.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
ROSS FARM MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
20% on cost and over the period of the lease
Plant and equipment
20% on cost
Fixtures and fittings
33% on cost and 20% on cost
Computers
33% on cost
Motor vehicles
25% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and
slow-moving items.
Work in progress is valued on the basis of direct costs plus attributable overheads and average profit rate based
on normal levels of activity. Provision is made for any foreseeable losses where appropriate.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
Basic financial assets
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
Basic financial liabilities
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest method. Loans and borrowings that are receivable within one year are not discounted. If an arrangement constitutes a finance transaction it is measured at present value of future payments discounted at a market rate of interest for a similar loan.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
ROSS FARM MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Total
69
65
ROSS FARM MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 6 -
3
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 June 2022
123,034
453,517
120,752
145,166
930,704
1,773,173
Additions
17,206
3,122
11,424
90,240
121,992
Disposals
(123,034)
(470,723)
(123,874)
(156,590)
(1,020,944)
(1,895,165)
At 30 November 2023
Depreciation and impairment
At 1 June 2022
79,591
369,127
94,586
129,943
720,198
1,393,445
Depreciation charged in the period
13,190
19,024
11,677
7,488
101,642
153,021
Eliminated in respect of disposals
(92,781)
(388,151)
(106,263)
(137,431)
(821,840)
(1,546,466)
At 30 November 2023
Carrying amount
At 30 November 2023
At 31 May 2022
43,443
84,390
26,166
15,223
210,506
379,728
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,484,245
Other debtors
256,994
1,305,281
256,994
4,789,526
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
9,745
Trade creditors
3,030,924
Corporation tax
507,576
273,290
Other taxation and social security
489,735
Other creditors
18,000
6,699,696
525,576
10,503,390
ROSS FARM MACHINERY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 NOVEMBER 2023
- 7 -
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
30,765
Other creditors
844,931
875,696
7
Related party transactions
All transactions that took place were on normal commercial terms and on an arms length basis and therefore no further disclosure is required by FRS102 Section 1A