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Registration number: 03873206

Arundel Kerr Produce Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 30 June 2023

 

Arundel Kerr Produce Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 9

Consolidated Profit and Loss Account

10

Consolidated Balance Sheet

11

Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Statement of Cash Flows

16

Notes to the Financial Statements

17 to 38

 

Arundel Kerr Produce Limited

Company Information

Directors

B W Kerr

B R Mordue

J M Warburton

R D Arundel

Company secretary

E S Arundel

Registered office

Pegasus House
Pegasus Road
Elsham Wold Ind. Estate
Elsham
North Lincolnshire
DN20 0SQ

Auditors

Forrester Boyd
Waynflete House
139 Eastgate
Louth
Lincolnshire
LN11 9QQ

 

Arundel Kerr Produce Limited

Strategic Report for the Year Ended 30 June 2023

The Directors present their strategic report for the year ended 30 June 2023.

Principal activity

The principal activity of the Group is that of marketing agricultural produce

Fair review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

The directors consider the financial position at the year end to be very positive, as all businesses in the current climate, the directors are constantly reviewing the impact of inflationary increases in operating costs, in particular raw material input costs, fuel and utilities.

The fresh food market at the consumer end has seen historic price rises as detailed in the media. The directors believe it is key that this is pushed through the supply chain to ensure a solid reliable supply for the future and are working closely with customers and suppliers to help ensure this happens.

The gross profit for 2023 has reduced this year with a profit of £1,119,304 compared to £1,316,762, we have however experienced a slight increase in the gross profit margin percentage of 8.2% compared to 8.0% in 2022. This is due in part to an increase in supply contracts, reducing the risk of volatile market prices impacting the gross profit margin.

Administrative expenses have increased in the year, this has resulted in a decrease in operating profits to £145,941 compared to £476,070 in the previous year. Finance costs have doubled, this is mainly due to the increase in the Bank of England base rate for the year to June 2023, along with finance costs of re-investment during the year. An increase of 15% on general administrative expenses, partly due to costs of a business rebrand and marketing spend during the year.

The group continues with its strategy to secure several major contracts to help ensure that the company remains profitable and protecting it against the risk of a volatile market.

The group continues to strive towards its aims of being a fully integrated supply partner in the potato industry, with a strong presence in all sectors of the market. During the year not only have the directors invested in plant and equipment, but also in a process of re-branding, creating clear visions, missions and goals for the future. Following the year end the group acquired 84% share capital in Wolds Produce Holdings Limited, a 100% shareholder of Wolds Produce Limited. The board of directors consider this an exciting opportunity to expand the current team and offerings within the market, strengthening Arundel Kerr Produce Limited and supporting the group in achieving its goals.

The directors undergo a continuous review of overheads to assess any savings available and to ensure that these are controlled and correctly apportioned across other companies which use the central services of the group.

During the year the business has remained committed to investing in its tangible assets and regularly assesses the need to invest internally to ensure they can continue to provide the high level of service and professional image that stands out with its customers. This has been balanced with the need to ensure the business has adequate working capital.

The group has continued to pay off its long-term borrowings in both hire purchase and bank loan debts due. With borrowings due over one year decreasing from £550,361 to £485,785 and secured borrowings within one year decreasing from £297,315 to £240,164.

The bank overdraft at the year end was of a similar level to the previous year, indicating that the group has managed its working capital during the year, whilst continuing to invest in equipment and future development.

 

Arundel Kerr Produce Limited

Strategic Report for the Year Ended 30 June 2023

Key financial performance indicators

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole; these being, but not limited to product sales and transport and storage income, gross margin and return on capital employed. The directors review the company's KPI's quarterly in comparison to previous periods and budgeted KPI's. As well as sales and profit margins the directors also monitor working capital and EBITDA which at the year end was £431,759 (2022 - £648,586).

Gross profit has reduced slightly this year being £1,119,304 compared to £1,316,762 and the gross margin have increased from 8.2% to 8.0%.

The group's balance sheet has increased significantly in the year with net assets of £1,854,701 at 30 June 2023 compared to net assets of £1,213,119 at 30 June 2022 and the directors expect this to continue to increase.

During the current economic climate the group is keeping a very close control on its trading cycle ensuring debtors are kept to a minimum and creditor terms are utilised fully.

 

Arundel Kerr Produce Limited

Strategic Report for the Year Ended 30 June 2023

Principal risks and uncertainties

The directors continually assess the market conditions and price volatilities to allow them to make informed decisions when planning for the future of the company.

The business environment in which the company operates continues to be a challenging one and we consider our principle risks and uncertainties to be: market competitiveness, environmental change and interest rates.

The agricultural produce market is extremely competitive with enormous customer power in the shape of the large supermarkets and the weakening position of the UK market due to availability of cheap foreign imports.

Environmental change dictates how efficient crop yields are and inevitably the availability of products.

Approved and authorised by the Board on 15 February 2024 and signed on its behalf by:
 

.........................................
R D Arundel
Director

 

Arundel Kerr Produce Limited

Directors' Report for the Year Ended 30 June 2023

The Directors present their report and the for the year ended 30 June 2023.

Directors of the Group

The Directors who held office during the year were as follows:

B W Kerr

B R Mordue

J M Warburton

R D Arundel

Financial instruments

Objectives and policies

The overall objective of the directors is to ensure that the business is profitable and stable and will continue to be successful for the benefit of the shareholders and employees.

Price risk, credit risk, liquidity risk and cash flow risk

The directors acknowledge responsibility for the company’s system of internal financial control and believe the established systems including the computerisation of the company’s financial accounts are appropriate to the business. No material losses or contingencies have arisen during the twelve months trading period that would require disclosure by the directors.

The business' principle financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors, loans to the business and finance agreements. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

The business funds some fixed asset acquisitions by finance agreements. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.

Disclosure of information to the auditor

Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 15 February 2024 and signed on its behalf by:
 

.........................................
R D Arundel
Director

 

Arundel Kerr Produce Limited

Statement of Directors' Responsibilities

The Directors acknowledge their responsibilities for preparing the Annual 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 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 Group and the Company and of the profit or loss of the Group for that period. In preparing these financial statements, the Directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 Group's and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and 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 Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Arundel Kerr Produce Limited

Independent Auditor's Report to the Members of Arundel Kerr Produce Limited

Opinion

We have audited the financial statements of Arundel Kerr Produce Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, 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 Group's and the parent Company's affairs as at 30 June 2023 and of the Group's 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Director's 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 Group and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

 

Arundel Kerr Produce Limited

Independent Auditor's Report to the Members of Arundel Kerr Produce Limited

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent Company 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 6], 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 is 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 Group and parent company's'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 Group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 auditor’s 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:

- testing management override controls including journal testing and review accounting estimates for reasonableness
- enquiries of management of actual and potential litigation claims
- enquiries of management including fraud and associated risks
- discussions with management, including consideration of known or suspected instances of non-compliance
- testing focussing on the area of the financial statements most suspectible to material error including completeness of income to ensure correct matching of revenue and costs.

Because of 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 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 is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 auditor’s 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.

 

Arundel Kerr Produce Limited

Independent Auditor's Report to the Members of Arundel Kerr Produce Limited

......................................
Adam Millson ACA (Senior Statutory Auditor)
For and on behalf of Forrester Boyd , Statutory Auditor

Waynflete House
139 Eastgate
Louth
Lincolnshire
LN11 9QQ

27 February 2024

 

Arundel Kerr Produce Limited

Consolidated Profit and Loss Account for the Year Ended 30 June 2023

Note

2023
£

2022
£

Turnover

3

13,620,251

16,389,827

Cost of sales

 

(12,500,947)

(15,073,065)

Gross profit

 

1,119,304

1,316,762

Administrative expenses

 

(1,016,162)

(883,491)

Other operating income

4

42,799

42,799

Operating profit

5

145,941

476,070

Other interest receivable and similar income

100,000

-

Amounts written off investments

 

750,000

-

Interest payable and similar expenses

7

(113,673)

(60,311)

   

736,327

(60,311)

Share of loss of equity accounted investees

 

-

(4,410)

Profit before tax

 

882,268

411,349

Tax on profit

11

(84,688)

(64,795)

Profit for the financial year

 

797,580

346,554

Profit/(loss) attributable to:

 

Owners of the Company

 

797,580

346,554

 

Arundel Kerr Produce Limited

(Registration number: 03873206)
Consolidated Balance Sheet as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

13

2,429,482

2,641,163

Investments

14

-

100,000

 

2,429,482

2,741,163

Current assets

 

Stocks

15

6,175

160,551

Debtors

16

4,010,124

3,674,203

Cash at bank and in hand

 

715,449

199,216

 

4,731,748

4,033,970

Creditors: Amounts falling due within one year

18

(4,448,933)

(4,681,729)

Net current assets/(liabilities)

 

282,815

(647,759)

Total assets less current liabilities

 

2,712,297

2,093,404

Creditors: Amounts falling due after more than one year

18

(528,587)

(635,962)

Provisions for liabilities

19

(329,009)

(244,323)

Net assets

 

1,854,701

1,213,119

Capital and reserves

 

Called up share capital

21

400

400

Revaluation reserve

488,207

494,141

Profit and loss account

1,366,094

718,578

Equity attributable to owners of the company

 

1,854,701

1,213,119

Total equity

 

1,854,701

1,213,119

Approved and authorised by the Board on 15 February 2024 and signed on its behalf by:
 

.........................................
R D Arundel
Director

 

Arundel Kerr Produce Limited

(Registration number: 03873206)
Balance Sheet as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

13

2,390,680

2,623,224

Investments

14

44,845

44,845

 

2,435,525

2,668,069

Current assets

 

Stocks

15

6,175

6,140

Debtors

16

3,524,143

3,033,399

Cash at bank and in hand

 

54,067

124,259

 

3,584,385

3,163,798

Creditors: Amounts falling due within one year

18

(3,948,809)

(3,963,091)

Net current liabilities

 

(364,424)

(799,293)

Total assets less current liabilities

 

2,071,101

1,868,776

Creditors: Amounts falling due after more than one year

18

(515,962)

(628,965)

Provisions for liabilities

19

(319,308)

(241,102)

Net assets

 

1,235,831

998,709

Capital and reserves

 

Called up share capital

21

400

400

Revaluation reserve

488,207

494,141

Retained earnings

747,224

504,168

Shareholders' funds

 

1,235,831

998,709

The company made a profit after tax for the financial year of £393,120 (2022 - profit of £450,057).

Approved and authorised by the Board on 15 February 2024 and signed on its behalf by:
 

.........................................
R D Arundel
Director

 

Arundel Kerr Produce Limited

Consolidated Statement of Changes in Equity for the Year Ended 30 June 2023
Equity attributable to the parent company

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

Total equity
£

At 1 July 2022

400

494,141

718,578

1,213,119

1,213,119

Profit for the year

-

-

797,580

797,580

797,580

Other comprehensive income

-

2

-

2

2

Total comprehensive income

-

2

797,580

797,582

797,582

Dividends

-

-

(156,000)

(156,000)

(156,000)

Transfers

-

(5,936)

5,936

-

-

At 30 June 2023

400

488,207

1,366,094

1,854,701

1,854,701

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

Total equity
£

At 1 July 2021

400

345,971

497,088

843,459

843,459

Profit for the year

-

-

346,554

346,554

346,554

Other comprehensive income

-

152,106

-

152,106

152,106

Total comprehensive income

-

152,106

346,554

498,660

498,660

Dividends

-

-

(129,000)

(129,000)

(129,000)

Transfers

-

(3,936)

3,936

-

-

At 30 June 2022

400

494,141

718,578

1,213,119

1,213,119

 

Arundel Kerr Produce Limited

Statement of Changes in Equity for the Year Ended 30 June 2023

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 July 2022

400

494,141

504,168

998,709

Profit for the year

-

-

393,120

393,120

Other comprehensive income

-

2

-

2

Total comprehensive income

-

2

393,120

393,122

Dividends

-

-

(156,000)

(156,000)

Transfers

-

(5,936)

5,936

-

At 30 June 2023

400

488,207

747,224

1,235,831

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 July 2021

400

345,971

179,175

525,546

Profit for the year

-

-

450,057

450,057

Other comprehensive income

-

152,106

-

152,106

Total comprehensive income

-

152,106

450,057

602,163

Dividends

-

-

(129,000)

(129,000)

Transfers

-

(3,936)

3,936

-

At 30 June 2022

400

494,141

504,168

998,709

 

Arundel Kerr Produce Limited

Consolidated Statement of Cash Flows for the Year Ended 30 June 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

797,580

346,554

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

293,417

241,160

Profit on disposal of tangible assets

(7,599)

(70,657)

Profit from disposals of investments

(750,000)

-

Finance income

(100,000)

-

Finance costs

7

113,673

62,324

Share of profit/loss of equity accounted investees

 

-

4,410

Income tax expense

11

84,688

64,795

 

431,759

648,586

Working capital adjustments

 

Decrease/(increase) in stocks

15

154,376

(68,893)

(Increase)/decrease in trade debtors

16

(324,074)

1,171,502

Decrease in trade creditors

18

(187,863)

(1,188,295)

Decrease in deferred income, including government grants

 

(42,799)

(42,799)

Cash generated from operations

 

31,399

520,101

Income taxes (paid)/received

11

(65,036)

6,848

Net cash flow from operating activities

 

(33,637)

526,949

Cash flows from investing activities

 

Acquisitions of tangible assets

(53,897)

(141,118)

Proceeds from sale of tangible assets

 

281,724

499,252

Dividend income

100,000

-

Proceeds from disposal of investments in joint ventures and associates

 

850,000

-

Net cash flows from investing activities

 

1,177,827

358,134

Cash flows from financing activities

 

Interest paid

7

(113,673)

(62,324)

Proceeds from bank borrowing draw downs

 

-

125,000

Repayment of bank borrowing

 

(44,813)

(55,045)

Repayment of other borrowing

 

-

(20,000)

Payments to finance lease creditors

 

(378,878)

(287,603)

Dividends paid

(156,000)

(129,000)

Net cash flows from financing activities

 

(693,364)

(428,972)

Net increase in cash and cash equivalents

 

450,826

456,111

Cash and cash equivalents at 1 July

 

(1,516,881)

(1,972,992)

Cash and cash equivalents at 30 June

 

(1,066,055)

(1,516,881)

 

Arundel Kerr Produce Limited

Statement of Cash Flows for the Year Ended 30 June 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

393,120

450,057

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

288,911

239,754

Profit on disposal of tangible assets

(5,044)

(70,657)

Finance income

(400,000)

(150,000)

Finance costs

112,178

62,259

Income tax expense

11

78,208

61,315

 

467,373

592,728

Working capital adjustments

 

(Increase)/decrease in stocks

15

(35)

29,573

(Increase)/decrease in trade debtors

16

(478,897)

569,217

Increase/(decrease) in trade creditors

18

26,259

(479,569)

Decrease in deferred income, including government grants

 

(42,799)

(42,799)

Cash generated from operations

 

(28,099)

669,150

Income taxes (paid)/received

11

(52,536)

6,848

Net cash flow from operating activities

 

(80,635)

675,998

Cash flows from investing activities

 

Acquisitions of tangible assets

(53,897)

(138,318)

Proceeds from sale of tangible assets

 

264,074

499,252

Dividend income

400,000

150,000

Net cash flows from investing activities

 

610,177

510,934

Cash flows from financing activities

 

Interest paid

(112,178)

(62,259)

Proceeds from bank borrowing draw downs

 

-

125,000

Repayment of bank borrowing

 

(44,813)

(55,045)

Repayment of other borrowing

 

-

(20,000)

Payments to finance lease creditors

 

(352,150)

(282,879)

Dividends paid

(156,000)

(129,000)

Net cash flows from financing activities

 

(665,141)

(424,183)

Net (decrease)/increase in cash and cash equivalents

 

(135,599)

762,749

Cash and cash equivalents at 1 July

 

(1,591,838)

(2,354,587)

Cash and cash equivalents at 30 June

 

(1,727,437)

(1,591,838)

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital incorporated in England and Wales and the company registration number is 03873206.

These financial statements cover the group entity, Arundel Kerr Produce Limited.

The address of its registered office is:
Pegasus House
Pegasus Road
Elsham Wold Ind. Estate
Elsham
North Lincolnshire
DN20 0SQ

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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

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.

The financial statements have been prepared in sterling which is the functional currency of the company and are rounded to the nearest pound.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the Company and its subsidiary undertaking drawn up to 30 June 2023.

No Profit and Loss Account is presented for the Company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £393,120 (2022 - profit of £450,057).

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

A subsidiary is an entity controlled by the Company. Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the Group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the Company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

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 Group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the Group.

The Group 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 Group's activities.

Government grants

Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

Foreign currency transactions and balances

Profit and loss account transactions in foreign currencies are translated into sterling at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the closing rates at the balance sheet and the exchange differences are included in the profit and loss account.

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 group operates and generates taxable income.

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Tangible assets

Tangible assets are stated in the statement of financial position 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.

Freehold land and buildings is measured at fair value at each reporting date with changes in fair value recognised in the revaluation reserve. The fair value is based on the estimated open market value with vacant possession.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land - freehold

No depreciation is charged

Buildings - freehold

2% straight line

Plant and machinery

15%-25% reducing balance or 4 - 15 years straight line

Fixtures, fittings and equipment

4 - 5 years straight line

Motor vehicles

15% straight line

Office equipment

25% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the Group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Website

33% straight line

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.

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

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 at the transaction price less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group 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 valued at last purchase price.

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.

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 group 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 at the transaction price.

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 Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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.

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Dividends

Dividend distribution to the Group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the Group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods

11,459,942

13,889,979

Rendering of services

2,160,309

2,499,848

13,620,251

16,389,827

The analysis of the Group's Turnover for the year by market is as follows:

2023
£

2022
£

UK

13,569,632

15,817,287

Rest of world

50,619

572,540

13,620,251

16,389,827

4

Other operating income

The analysis of the Group's other operating income for the year is as follows:

2023
£

2022
£

Government grants

42,799

42,799

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

293,417

241,160

Operating lease expense - plant and machinery

180,333

176,268

Profit on disposal of property, plant and equipment

(7,599)

(70,657)

6

Government grants

Grant received for the purchase of fixed assets.

The amount of grants recognised in the financial statements was £42,799 (2022 - £42,799).

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

74,257

44,711

Interest on obligations under finance leases and hire purchase contracts

33,171

13,541

Interest expense on other finance liabilities

6,245

4,072

Foreign exchange losses

-

(2,013)

113,673

60,311

8

Staff costs

The aggregate payroll costs (including Directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

779,360

722,985

Social security costs

79,362

71,262

Pension costs, defined contribution scheme

26,079

24,484

884,801

818,731

The average number of persons employed by the Group during the year, analysed by category was as follows:

2023
No.

2022
No.

Production

7

7

Administration and support

15

16

22

23

9

Directors' remuneration

The Directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

136,233

131,996

Contributions paid to money purchase schemes

4,840

4,600

141,073

136,596

During the year the number of Directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

1

1

10

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

3,000

2,500

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023


 

11

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

-

(10,325)

Deferred taxation

Arising from origination and reversal of timing differences

13,491

75,059

Arising from changes in tax rates and laws

71,197

61

Total deferred taxation

84,688

75,120

Tax expense in the income statement

84,688

64,795

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 20.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

882,268

411,349

Corporation tax at standard rate

180,865

78,156

Effect of revenues exempt from taxation

(183,024)

(8,132)

Effect of expense not deductible in determining taxable profit (tax loss)

10,321

6,469

Deferred tax expense relating to changes in tax rates or laws

71,197

61

Increase in UK and foreign current tax from unrecognised tax loss or credit

13,491

75,059

Tax decrease from effect of capital allowances and depreciation

(14,651)

(88,994)

Tax increase from other short-term timing differences

6,489

1,338

Other tax effects for reconciliation between accounting profit and tax expense (income)

-

838

Total tax charge

84,688

64,795

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Deferred tax

Group

Deferred tax assets and liabilities

2023

Liability
£

Difference between accumulated depreciation and capital allowances

311,996

Pension creditor

(1,850)

Revaluation of property

18,863

329,009

2022

Liability
£

Difference between accumulated depreciation and capital allowances

223,575

Pension creditor

(1,338)

Revaluation of property

18,865

241,102

Company

Deferred tax assets and liabilities

2023

Liability
£

Difference between accumulated depreciation and capital allowances

302,295

Pension creditor

(1,850)

Revaluation of property

18,863

319,308

2022

Liability
£

Difference between accumulated depreciation and capital allowances

223,575

Pension creditor

(1,338)

Revaluation of property

18,865

241,102

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

12

Intangible assets

Group

Website
 £

Total
£

Cost or valuation

At 1 July 2022

1,500

1,500

At 30 June 2023

1,500

1,500

Amortisation

At 1 July 2022

1,500

1,500

At 30 June 2023

1,500

1,500

Carrying amount

At 30 June 2023

-

-

13

Tangible assets

Group

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2022

1,250,000

170,454

2,869,736

4,405

669,041

4,963,636

Additions

2,285

18,028

169,834

-

165,714

355,861

Disposals

-

-

(124,500)

-

(316,039)

(440,539)

At 30 June 2023

1,252,285

188,482

2,915,070

4,405

518,716

4,878,958

Depreciation

At 1 July 2022

-

132,417

1,978,659

1,561

209,836

2,322,473

Charge for the year

23,836

18,011

179,765

522

71,283

293,417

Eliminated on disposal

-

-

(61,642)

-

(104,772)

(166,414)

At 30 June 2023

23,836

150,428

2,096,782

2,083

176,347

2,449,476

Carrying amount

At 30 June 2023

1,228,449

38,054

818,288

2,322

342,369

2,429,482

At 30 June 2022

1,250,000

38,037

891,077

2,844

459,205

2,641,163

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Revaluation

The fair value of the group's land and buildings was revalued on 30 June 2022 by an independent valuer, Savills (UK) Limited. The basis of this valuation was an open market basis. Has this class of asset been measured on a historical cost basis, the carrying amount would have been £721,384 (2022 - £736,999). The depreciation on this historical cost is £234,094 (2022 - £216,194). The historical cost at 30th June 2023 was £953,193 (2022 - £953,193).
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Plant and machinery

409,815

337,528

Motor vehicles

295,229

381,063

 

705,044

718,591

Restriction on title and pledged as security

Land and buildings with a carrying amount of £1,228,449 (2022 - £1,250,000) has been pledged as security for bank loans and the bank overdraft.

Motor vehicles with a carrying amount of £342,369 (2022 - £459,205) has been pledged as security for hire purchase agreements, bank loans and the bank overdraft.

Plant and machinery with a carrying amount of £820,610 (2022 - £893,877) has been pledged as security for hire purchase agreements, bank loans and the bank overdraft.

Fixture and fittings with a carrying amount of £38,054 (2022 - £38,037) has been pledged as security for bank loans and the bank overdraft.

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Company

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2022

1,250,000

170,454

2,869,736

652,653

4,942,843

Additions

2,285

18,028

169,834

125,250

315,397

Disposals

-

-

(124,500)

(299,651)

(424,151)

At 30 June 2023

1,252,285

188,482

2,915,070

478,252

4,834,089

Depreciation

At 1 July 2022

-

132,417

1,978,659

208,543

2,319,619

Charge for the year

23,836

18,011

179,765

67,299

288,911

Eliminated on disposal

-

-

(61,642)

(103,479)

(165,121)

At 30 June 2023

23,836

150,428

2,096,782

172,363

2,443,409

Carrying amount

At 30 June 2023

1,228,449

38,054

818,288

305,889

2,390,680

At 30 June 2022

1,250,000

38,037

891,077

444,110

2,623,224

Revaluation

The fair value of the company's land and buildings was revalued on 30 June 2022 by an independent valuer. The basis of this valuation was an open market basis. Has this class of asset been measured on a historical cost basis, the carrying amount would have been £721,384 (2022 - £736,999). The depreciation on this historical cost is £234,094 (2022 - £216,194). The historical cost at 30th June 2023 was £955,478 (2022 - £953,193).
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Plant and machinery

409,815

337,528

Motor vehicles

258,749

365,969

 

668,564

703,497

Restriction on title and pledged as security

Land and buildings with a carrying amount of £1,228,449 (2022 - £1,250,000) has been pledged as security for bank loans and the bank overdraft.

Motor vehicles with a carrying amount of £305,889 (2022 - £444,110) has been pledged as security for hire purchase agreements, bank loans and the bank overdraft.

Plant and machinery with a carrying amount of £818,288 (2022 - £891,077) has been pledged as security for hire purchase agreements, bank loans and the bank overdraft.

Fixture and fittings with a carrying amount of £38,054 (2022 - £38,037) has been pledged as security for bank loans and the bank overdraft.

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

14

Investments

Group

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Pride of Anglia Growers Limited

Pegasus House, Pegasus Road, Elsham Wold Ind. Estate, Elsham, North Lincolnshire, DN20 0SQ

Ordinary

100%

100%

 

     

Associates

The Food Heroes Marketing Limited

24 High Street, Heckington, Sleaford, Lincolnshire, NG34 9QZ

Ordinary

26.3%

26.3%

 

United Kingdom

     

Subsidiary undertakings

Pride of Anglia Growers Limited

The principal activity of Pride of Anglia Growers Limited is marketing of agriculture produce.

Associate undertakings

The Food Heroes Marketing Limited

The principal activity of The Food Heroes Marketing Limited is supply and marketing of fresh produce .
 

 

Company

2023
£

2022
£

Investments in subsidiaries

44,845

44,845

Subsidiaries

£

Cost or valuation

At 1 July 2022

44,845

Carrying amount

At 30 June 2023

44,845

At 30 June 2022

44,845

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

15

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Tenantright

-

1,084

-

1,084

Finished goods and goods for resale

6,175

5,056

6,175

5,056

Other inventories

-

154,411

-

-

6,175

160,551

6,175

6,140

16

Debtors

   

Group

Company

Current

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

2,832,503

2,868,058

2,406,942

2,176,681

Amounts owed by related parties

27

-

-

391,749

141,255

Other debtors

 

1,108,592

720,615

656,423

654,712

Prepayments and accrued income

 

56,268

84,616

56,268

59,837

Income tax asset

11

12,761

914

12,761

914

   

4,010,124

3,674,203

3,524,143

3,033,399

17

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash on hand

40

196

40

196

Cash at bank

715,409

199,020

54,027

124,063

715,449

199,216

54,067

124,259

Bank overdrafts

(1,781,504)

(1,716,097)

(1,781,504)

(1,716,097)

Cash and cash equivalents in statement of cash flows

(1,066,055)

(1,516,881)

(1,727,437)

(1,591,838)

Non-cash transactions excluded from the consolidated cash flow statement

2023
£

2022
£

Cost of new Tangible assets acquired under finance leases

301,964

722,914

Non-cash transactions excluded from the cash flow statement

2023
£

2022
£

Cost of new Tangible assets acquired under finance leases

261,500

706,526

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

18

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

22

1,826,317

1,760,834

1,826,317

1,760,834

Trade creditors

 

2,146,535

2,284,951

1,710,337

1,604,456

Social security and other taxes

 

22,155

22,805

22,155

22,805

Outstanding defined contribution pension costs

 

13,789

7,040

13,789

7,040

Other payables

 

322,358

427,804

261,263

423,138

Accruals and deferred income

 

117,779

125,106

114,948

104,129

Income tax liability

11

-

53,189

-

40,689

 

4,448,933

4,681,729

3,948,809

3,963,091

Due after one year

 

Loans and borrowings

22

485,785

550,361

473,160

543,364

Deferred income

 

42,802

85,601

42,802

85,601

 

528,587

635,962

515,962

628,965

19

Deferred tax and other provisions

Group

Deferred tax liability
£

Total
£

At 1 July 2022

244,323

244,323

Increase (decrease) in existing provisions

84,686

84,686

At 30 June 2023

329,009

329,009

Company

Deferred tax
£

Total
£

At 1 July 2022

241,102

241,102

Increase (decrease) in existing provisions

78,206

78,206

At 30 June 2023

319,308

319,308

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

20

Pension and other schemes

Defined contribution pension scheme

The Group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Group to the scheme and amounted to £26,079 (2022 - £24,484).

Contributions totalling £13,789 (2022 - £7,040) were payable to the scheme at the end of the year and are included in creditors.

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A Shares of £1 each

100

100

100

100

Ordinary B Shares of £1 each

200

200

200

200

Ordinary C Shares of £1 each

100

100

100

100

 

400

400

400

400

Rights, preferences and restrictions

Ordinary A have the following rights, preferences and restrictions:
Normal voting and participation rights

Ordinary B have the following rights, preferences and restrictions:
No voting rights

Ordinary C have the following rights, preferences and restrictions:
No voting rights

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

22

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

73,422

118,311

73,422

118,311

Finance lease liabilities

412,363

432,050

399,738

425,053

485,785

550,361

473,160

543,364

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Bank borrowings

44,813

44,737

44,813

44,737

Bank overdrafts

1,781,504

1,716,097

1,781,504

1,716,097

Finance lease liabilities

195,351

252,578

182,577

247,912

2,021,668

2,013,412

2,008,894

2,008,746

Creditor amounts falling due within one year on which security has been given includes bank loans of £44,813 (2022 - £44,737), bank overdraft of £1,781,504 (2022 - £1,716,097) and hire purchase of £195,351 (2022 - £252,578).

Creditor amounts falling due after one year on which security has been given includes bank loans of £73,422 (2022 - £118,311) and hire purchase of £412,363 (2022 - £432,050).

The hire purchase balances are secured on the assets to which they relate.

The bank loans and bank overdraft are secured by a charge over the properties owned by the company, guarantees from Arundel Kerr Produce (East Anglia) Limited and Healthfresh Properties Limited.

There is a fixed and floating charge on all of the assets by the bank.

Group

Bank borrowings

The bank loan is denominated in sterling with a nominal interest rate of 2.27%, and the final instalment is due on 31 December 2024. The carrying amount at year end is £33,694 (2022 - £55,530).

The bank loan is denominated in sterling with a nominal interest rate of 2.31%, and the final instalment is due on 27 September 2026. The carrying amount at year end is £84,541 (2022 - £107,518).

Other borrowings

The finance lease liabilities are made up of 15 agreements and are denominated in sterling with a variable nominal interest rate and the final instalments are between February 2024 and December 2028. The carrying amount at year end is £607,714 (2022 - £684,628).

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Company

Bank borrowings

The bank loan is denominated in sterling with a nominal interest rate of 2.27%, and the final instalment is due on 31 December 2024. The carrying amount at year end is £33,694 (2022 - £55,530).

The bank loan is denominated in sterling with a nominal interest rate of 2.31%, and the final instalment is due on 27 September 2026. The carrying amount at year end is £84,541 (2022 - £107,518).

Other borrowings

The finance lease liabilities are made up of 13 agreements and are denominated in sterling with a variable nominal interest rate and the final instalments are between February 2024 and December 2028. The carrying amount at year end is £582,315 (2022 - £672,965).

23

Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

195,351

252,578

Later than one year and not later than five years

412,363

432,050

607,714

684,628

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

52,310

180,333

Later than one year and not later than five years

8,325

55,339

60,635

235,672

The amount of non-cancellable operating lease payments recognised as an expense during the year was £180,333 (2022 - £176,268).

Company

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

182,577

247,912

Later than one year and not later than five years

399,738

425,053

582,315

672,965

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

52,310

180,333

Later than one year and not later than five years

8,325

55,339

60,635

235,672

The amount of non-cancellable operating lease payments recognised as an expense during the year was £180,333 (2022 - £176,268).

24

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £780.00 (2022 - £645.00) per each Ordinary B share

 

156,000

 

129,000

         

25

Contingent liabilities

Group

The group has entered into an unlimited cross guarantee with its bankers in respect of Arundel Kerr Produce Limited, Arundel Kerr Produce (East Anglia) Limited and Healthfresh Properties Limited to secure liabilities of each other. There are no tax implications with regards to this guarantee. The uncertainties which are expected to affect the future outcome are the future liquidity and profitability of the two companies whose debts are secured by Arundel Kerr Produce Limited. The financial effect due to this guarantee is dependent upon the amount of debt secured by Arundel Kerr Produce Limited in respect of the two companies.

Company

The company has entered into an unlimited cross guarantee with its bankers in respect of Arundel Kerr Produce Limited, Arundel Kerr Produce (East Anglia) Limited and Healthfresh Properties Limited to secure liabilities of each other. There are no tax implications with regards to this guarantee. The uncertainties which are expected to affect the future outcome are the future liquidity and profitability of the two companies whose debts are secured by Arundel Kerr Produce Limited. The financial effect due to this guarantee is dependent upon the amount of debt secured by Arundel Kerr Produce Limited in respect of the two companies.

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

26

Analysis of changes in net debt

Group

At 1 July 2022
£

Financing cash flows
£

New finance leases
£

At 30 June 2023
£

Cash and cash equivalents

Cash

199,216

516,233

-

715,449

Overdrafts

(1,716,097)

(65,407)

-

(1,781,504)

(1,516,881)

450,826

-

(1,066,055)

Borrowings

Long term borrowings

(118,311)

44,889

-

(73,422)

Short term borrowings

(44,737)

(76)

-

(44,813)

Lease liabilities

(684,628)

378,878

(301,964)

(607,714)

(847,676)

423,691

(301,964)

(725,949)

 

(2,364,557)

874,517

(301,964)

(1,792,004)

Company

At 1 July 2022
£

Financing cash flows
£

New finance leases
£

At 30 June 2023
£

Cash and cash equivalents

Cash

124,259

(70,232)

-

54,027

Overdrafts

(1,716,097)

(65,407)

-

(1,781,504)

(1,591,838)

(135,639)

-

(1,727,477)

Borrowings

Long term borrowings

(118,311)

44,889

-

(73,422)

Short term borrowings

(44,737)

(76)

-

(44,813)

Lease liabilities

(672,965)

352,150

(261,500)

(582,315)

(836,013)

396,963

(261,500)

(700,550)

 

(2,427,851)

261,324

(261,500)

(2,428,027)

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

27

Related party transactions

Group

Key management compensation

2023
£

2022
£

Salaries and other short term employee benefits

136,233

131,996

Post-employment benefits

4,840

4,600

141,073

136,596

Transactions with Directors

At 1 July 2022

Advances to directors

Repayments to directors

At 30 June 2023

2023

£

£

£

£

Director's interest free loan account - no formal repayments

2,812

32,962

(727)

35,047

At 1 July 2021

Advances to directors

Repayments to directors

At 30 June 2022

2022

£

£

£

£

Director's interest free loan account - no formal repayments

4,224

1,115

(2,527)

2,812

Dividends paid to Directors

   

2023
£

 

2022
£

       

Dividends

 

159,000

 

129,000

         

Income and receivables from related parties

2023

Associates
£

Other related parties
£

Sale of goods

2,103,441

2,074,295

Receipt of services

-

61,342

Sale of property or other assets

850,000

-

2,953,441

2,135,637

Amounts receivable from related party

-

1,766,403

2022

Associates
£

Other related parties
£

Sale of goods

4,860,947

1,651,891

Receipt of services

-

70,806

4,860,947

1,722,697

Amounts receivable from related party

386,831

1,454,185

Amounts receivable from related parties have no formal repayment terms, are unsecured and no interest is payable.

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Expenditure with and payables to related parties

2023

Associates
£

Other related parties
£

Purchase of goods

52,966

4,939,352

Amounts payable to related party

-

1,103,675

2022

Associates
£

Other related parties
£

Purchase of goods

259,491

3,824,406

Amounts payable to related party

35,236

511,868

Amounts payable to related parties have no formal repayment terms and no interest is payable.

Company

Key management compensation

2023
£

2022
£

Salaries and other short term employee benefits

136,233

131,996

Post-employment benefits

4,840

4,600

141,073

136,596

Transactions with Directors

At 1 July 2022

Advances to directors

Repayments to directors

At 30 June 2023

2023

£

£

£

£

Director's interest free loan account - no formal repayments

2,812

18,074

(727)

20,159

At 1 July 2021

Advances to directors

Repayments to directors

At 30 June 2022

2022

£

£

£

£

Director's interest free loan account - no formal repayments

4,224

1,115

(2,527)

2,812

Dividends paid to Directors

   

2023
£

 

2022
£

       

Dividends

 

159,000

 

129,000

         

Income and receivables from related parties

2023

Subsidiary
£

Other related parties
£

Sale of goods

107,666

1,680,297

Receipt of services

-

61,342

107,666

1,741,639

Amounts receivable from related party

391,749

1,749,473

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

2022

Subsidiary
£

Other related parties
£

Sale of goods

511,452

1,598,315

Receipt of services

-

70,860

511,452

1,669,175

Amounts receivable from related party

141,255

1,428,757

Amounts receivable from related parties have no formal repayment terms, are unsecured and no interest is payable.

Expenditure with and payables to related parties

2023

Subsidiary
£

Other related parties
£

Purchase of goods

215,436

3,977,228

Amounts payable to related party

-

923,602

2022

Subsidiary
£

Other related parties
£

Purchase of goods

726,752

3,336,879

Amounts payable to related party

28,429

462,911

Amounts payable to related parties have no formal repayment terms and no interest is payable.

28

Parent and ultimate parent undertaking

The ultimate controlling party is the directors and close family members who own 87.5% of the the called up share capital.

29

Non adjusting events after the financial period

On 3 November 2023 the group acquired 84% of the issued share capital of Wolds Produce Holdings Limited. Wolds Produce Holdings Limited owns the whole of the issued share capital of Wolds Produce Limited.