Company registration number 13418782 (England and Wales)
K J CHERRY HOLDINGS LIMITED
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
K J CHERRY HOLDINGS LIMITED
COMPANY INFORMATION
Directors
A Cherry
P J Cherry
J Whitaker
C Cherry
Secretary
K J Matthews
Company number
13418782
Registered office
Twyford
Banbury
Oxfordshire
United Kingdom
OX17 3AA
Auditor
Ellacotts Audit Services Limited
Countrywide House
23 West Bar
Banbury
Oxfordshire
England
OX16 9SA
K J CHERRY HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 32
K J CHERRY HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

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

Fair review of the business

The principal activity of the Company is that of a holding company. The business review for each of its subsidiaries is shown below.

 

Cherwell Valley Silos Limited

The principal activities of the Company are the processing and sale of cooked oilseed products, and grain trading.

 

The Company had a better trading performance compared to the last financial year and shows an operating profit of £685k compared to an operating profit of £566k in the previous year. In 2021/22 the Company's commercial property was transferred to Cherwell Valley Business Park Limited The reported profit in 2021/22 includes a contribution from the Commercial Property division of £170k, so year on year the core business profitability has increased by £289k.

The Company is in a strong financial position and retains support from its bankers.

The Board of Directors regularly reviews the Company's exposure to various risks and uncertainties inherent within the business. The principal risks and uncertainties faced by the Company are movement in commodity prices and changes in the bank Base Rate.

 

The Company reduces the commodity price movement risk by hedging on the futures markets. It is also exposed to some interest rate risk on its non-fixed bank facilities, which are regularly reviewed by the Board of Directors. 'Liquidity' risk is managed by maintaining a balance between the continuity and flexibility of funding through the Company's loan and invoice discounting facilities, which ensures that there are sufficient funds for ongoing operations. The Company minimises its exposure to credit risk by ensuring its debtors are well managed.

 

The Company is optimistic for ongoing success in the future, and continues to focus on developing its property assets, growth of its core business and tight control of operational costs.

 

K J Cherry & Sons Limited

The principal activity of the Company is land management and farming.

 

The Company ceased to farm its tenanted, arable, land in August 2018. Since then the Company has disposed of its arable farming equipment and has focussed on its remaining grassland farm - mainly in Government environmental schemes. During the period, the Company received planning permission for a 3.2 megawatt solar park, and is in the process of building phase 1 of the project.

 

The results show an improved year-on-year performance, ignoring the profit on disposal of land in 2021/22. The Company showed an operational loss in 2023.

 

The Board of Directors regularly reviews the Company’s exposure to various risks and uncertainties inherent within the business. The principal risks and uncertainties faced by the Company are future subsidy arrangements in the UK and the weather. The significant reduction in arable output from the farm means commodity prices are no longer a significant risk factor.

 

The Board of Directors do not consider the Company to have any significant exposure to interest rate risk or liquidity risk as the Company has no bank debt with financing requirements being provided by its subsidiary company, Cherwell Valley Silos Limited.

 

There are no significant individual customers, and as such the Board of Directors does not consider the Company to have any exposure to credit risk.

K J CHERRY HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

The Board of Directors do not consider the Company to have any significant exposure to interest rate risk or liquidity risk as the Company has no bank debt with all financing requirements being provided by its subsidiary company, Cherwell Valley Silos Limited.

 

The Company mainly trades with its subsidiary company, Cherwell Valley Silos Limited, and as such the Board of Directors does not consider the Company to have any exposure to credit risk.

 

By order of the board

K J Matthews
Secretary
5 March 2024
K J CHERRY HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £48,192. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A Cherry
P J Cherry
J Whitaker
C Cherry
Auditor

The auditor, Ellacotts Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible 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 company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

K J CHERRY HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

By order of the board
K J Matthews
Secretary
5 March 2024
K J CHERRY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF K J CHERRY HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of KJ Cherry Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

K J CHERRY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF K J CHERRY HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the 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 or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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.

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

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

As part of an audit in accordance with ISAs (UK),we exercise professional judgment and maintain professional scepticism throughout the audit. We also performed the following procedures:

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

K J CHERRY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF K J CHERRY HOLDINGS LIMITED
- 7 -

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.

Charlotte Toemaes BSc FCA (Senior Statutory Auditor)
For and on behalf of Ellacotts Audit Services Limited
Chartered Accountants
Statutory Auditor
Countrywide House
23 West Bar
Banbury
Oxfordshire
England
OX16 9SA
7 March 2024
K J CHERRY HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
30,261,687
25,533,458
Cost of sales
(28,410,917)
(23,530,471)
Gross profit
1,850,770
2,002,987
Administrative expenses
(1,202,991)
(1,477,622)
Exceptional item
4
-
0
290,362
Operating profit
5
647,779
815,727
Interest receivable and similar income
9
6,818
242
Interest payable and similar expenses
10
(24,401)
(59,314)
Profit before taxation
630,196
756,655
Tax on profit
11
(44,965)
(138,633)
Profit for the financial year
585,231
618,022
Profit for the financial year is all attributable to the owners of the parent company.
K J CHERRY HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
2023
2022
£
£
Profit for the year
585,231
618,022
Other comprehensive income
Revaluation of tangible fixed assets
-
0
496,283
Cash flow hedges (loss)/gain arising in the year
(133,143)
267,430
Other comprehensive income for the year
(133,143)
763,713
Total comprehensive income for the year
452,088
1,381,735
Total comprehensive income for the year is all attributable to the owners of the parent company.
K J CHERRY HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,032,588
1,646,092
Current assets
Stocks
16
652,509
977,289
Debtors
17
5,809,432
5,556,923
Investments
18
1
1
Cash at bank and in hand
1,560,552
1,399,697
8,022,494
7,933,910
Creditors: amounts falling due within one year
21
(3,109,677)
(2,912,040)
Net current assets
4,912,817
5,021,870
Total assets less current liabilities
6,945,405
6,667,962
Creditors: amounts falling due after more than one year
22
(247,413)
(367,050)
Provisions for liabilities
Deferred tax liability
27
21,246
28,062
(21,246)
(28,062)
Net assets
6,676,746
6,272,850
Capital and reserves
Called up share capital
26
2,008
2,008
Revaluation reserve
3,149,193
3,149,193
Hedging reserve
139,471
272,614
Other reserves
28,124
28,124
Profit and loss reserves
3,357,950
2,820,911
Total equity
6,676,746
6,272,850
The financial statements were approved by the board of directors and authorised for issue on 5 March 2024 and are signed on its behalf by:
05 March 2024
A Cherry
Director
Company registration number 13418782 (England and Wales)
K J CHERRY HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
25,100
25,100
Current assets
Debtors
17
2,008
2,008
Net current assets
2,008
2,008
Net assets
27,108
27,108
Capital and reserves
Called up share capital
26
2,008
2,008
Other reserves
25,100
25,100
Total equity
27,108
27,108

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £48,192 (2022 - £48,192 profit).

The financial statements were approved by the board of directors and authorised for issue on 5 March 2024 and are signed on its behalf by:
05 March 2024
A Cherry
Director
Company registration number 13418782 (England and Wales)
K J CHERRY HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
Share capital
Revaluation reserve
Hedging reserve
Sinking Fund
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 25 May 2021
25,100
3,030,268
5,184
3,024
2,156,623
5,220,199
Year ended 30 June 2022:
Profit for the year
-
-
-
-
618,022
618,022
Other comprehensive income:
Revaluation of tangible fixed assets
-
496,283
-
-
-
496,283
Cash flow hedges gains
-
-
267,430
-
-
267,430
Total comprehensive income
-
496,283
267,430
-
618,022
1,381,735
Issue of share capital
26
2,008
-
-
-
-
2,008
Dividends
12
-
-
-
-
(96,384)
(96,384)
Transfers
(25,100)
-
-
25,100
-
-
Other movements
-
(377,358)
-
-
142,650
(234,708)
Balance at 30 June 2022
2,008
3,149,193
272,614
28,124
2,820,911
6,272,850
Year ended 30 June 2023:
Profit for the year
-
-
-
-
585,231
585,231
Other comprehensive income:
Cash flow hedges gains
-
-
(133,143)
-
-
(133,143)
Total comprehensive income
-
-
(133,143)
-
585,231
452,088
Dividends
12
-
-
-
-
(48,192)
(48,192)
Balance at 30 June 2023
2,008
3,149,193
139,471
28,124
3,357,950
6,676,746
K J CHERRY HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
Share capital
Sinking Fund
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 25 May 2021
-
0
-
-
0
-
Year ended 30 June 2022
Profit and total comprehensive income for the year
-
-
48,192
48,192
Issue of share capital
26
2,008
-
-
2,008
Dividends
12
-
-
(48,192)
(48,192)
Transfers
-
25,100
-
25,100
Balance at 30 June 2022
2,008
25,100
-
0
27,108
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
48,192
48,192
Dividends
12
-
-
(48,192)
(48,192)
Balance at 30 June 2023
2,008
25,100
-
0
27,108
K J CHERRY HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
945,781
1,054,019
Interest paid
(24,401)
(59,314)
Income taxes paid
(129,789)
(83,836)
Net cash inflow from operating activities
791,591
910,869
Investing activities
Purchase of tangible fixed assets
(458,961)
(87,557)
Proceeds from disposal of tangible fixed assets
1,600
296,529
Interest received
6,818
242
Net cash (used in)/generated from investing activities
(450,543)
209,214
Financing activities
Repayment of bank loans
(100,000)
(81,314)
Payment of finance leases obligations
(25,401)
(34,582)
Dividends paid to equity shareholders
(48,192)
(96,384)
Net cash used in financing activities
(173,593)
(212,280)
Net increase in cash and cash equivalents
167,455
907,803
Cash and cash equivalents at beginning of year
1,215,012
307,209
Cash and cash equivalents at end of year
1,382,467
1,215,012
Relating to:
Cash at bank and in hand
1,560,552
1,399,697
Bank overdrafts included in creditors payable within one year
(178,085)
(184,685)
K J CHERRY HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Investing activities
Dividends received
48,192
-
Net cash generated from/(used in) investing activities
48,192
-
Financing activities
Dividends paid to equity shareholders
(48,192)
-
Net cash used in financing activities
(48,192)
-
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
1
Accounting policies
Company information

KJ Cherry Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Twyford, Banbury, Oxfordshire, United Kingdom, OX17 3AA. .

 

The group consists of KJ Cherry Holdings Limited and all of its subsidiaries.

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.

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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

 

On 18 March 2022, a group reconstruction took place in which KJ Cherry Holdings Limited became the parent Company of K J Cherry & Sons Limited. This has been accounted for using the merger accounting method.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company KJ Cherry Holdings Limited together with all entities controlled by the parent company (its subsidiaries.)

 

All financial statements are made up to 30 June 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

 

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit for the year was £nil.

K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 17 -
1.4
Going concern

The group meets its day to day working capital requirements through an overdraft and invoice discounting facility provided by NatWest/RBS, who have been the group's bankers for many years and with whom the group have a solid and close working relationship.

 

The group's forecasts show that it can operate within the level of its current bank facilities. The Directors therefore believe that the group has sufficient resources to continue its various operations and, as a result, the Directors continue to adopt the 'going concern' basis of accounting in preparing the annual financial statements.

1.5
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
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.

Tangible fixed assets other than freehold land are stated at cost or valuation less depreciation. Land is stated at cost or valuation.

 

Individual freehold property is revalued on a regular basis with the surplus or deficit on book value being transferred to the revaluation reserve, except that a deficit which is in excess of any previously recognised surplus over depreciated cost relating to the same property, or the reversal of such a deficit, is charged (or credited) to the profit and loss account.

 

Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings freehold
2-10% straight line on buildings and nil on land
Plant and equipment
10% to 20% straight line
Fixtures and fittings
10% to 20% straight line
Motor vehicles
15% to 20% straight line

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 recognised in the profit and loss account.

K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -
1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
1.10
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.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 21 -
1.13
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

 

Hedge accounting

The company has entered into futures contracts to manage its exposure to commodity price changes in relation to forward contract commodities. These derivatives are measured at each reporting date. To the extent the hedge is effective, movements in fair value are recognised in Other Comprehensive Income and presented in a separate cash flow hedge reserve. Any ineffective portions of those movements are recognised in the Profit and Loss Account for the period.

 

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 22 -
1.16
Retirement benefits

The group operates a defined contribution pension scheme for employees. The assets of the schemes are held separately from those of the group. The annual contributions payable are charged to the profit and loss account.

1.17
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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Useful lives of property, plant and equipment

Depreciation is provided so as to write down the assets to their residual values over their estimated useful lives as set out in the company's accounting policy. The selection of these estimated lives requires the exercise of management judgement. Useful lives are regularly reviewed and should management's assessment of useful lives change then depreciated charges in the financial statements would be amended and carrying amounts of property, plant and equipment would also change accordingly.

Inventory

Inventory levels and valuations are constantly reviewed and should there be an indication of impairment or obsolescence the inventory is written down to its assessed net realisable value.

K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Commodities division
17,072,424
15,967,583
Property division
-
413,398
Wholesale of agricultural products
27,402,174
22,704,691
Interdivisional sales
(14,285,405)
(13,613,635)
Farming
72,494
61,421
30,261,687
25,533,458

In opinion of the directors, less than 1% of the turnover is attributable to markets outside the UK.

4
Exceptional item
2023
2022
£
£
Expenditure
Profit on disposal (exceptional)
-
(290,362)
5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
55,790
188,999
Depreciation of tangible fixed assets held under finance leases
16,675
18,332
(Profit)/loss on disposal of tangible fixed assets
(1,600)
1,389
Operating lease charges
8,337
8,337
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company's subsidiaries
16,120
11,700
K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 24 -
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
9
9
-
-
13
16
-
-
Total
22
25
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
934,817
791,090
-
0
-
0
Social security costs
86,463
56,968
-
-
Pension costs
33,997
30,276
-
0
-
0
1,055,277
878,334
-
0
-
0
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
123,482
99,798
Company pension contributions to defined contribution schemes
12,103
12,103
135,585
111,901

As total directors' remuneration is less than £200,000 year, no additional disclosure is provided.

9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
6,818
242
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
6,818
242
K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
10
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
22,737
56,445
Other finance costs:
Interest on finance leases and hire purchase contracts
1,664
2,869
Total finance costs
24,401
59,314
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
51,781
129,789
Adjustments in respect of prior periods
-
0
(1,480)
Total current tax
51,781
128,309
Deferred tax
Origination and reversal of timing differences
(6,816)
10,324
Total tax charge
44,965
138,633

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
630,196
756,655
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
119,737
143,764
Tax effect of expenses that are not deductible in determining taxable profit
1,998
16,237
Tax effect of income not taxable in determining taxable profit
6,889
(9,156)
Gains not taxable
-
0
7,596
Unutilised tax losses carried forward
-
0
222
Adjustments in respect of prior years
-
0
(1,480)
Effect of change in corporation tax rate
11,447
-
Group relief
(88,290)
-
0
Permanent capital allowances in excess of depreciation
-
0
(38,038)
Deferred tax adjustments in respect of prior years
(6,816)
10,324
Dividend income
-
9,164
Taxation charge
44,965
138,633
K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
48,192
48,192
13
Tangible fixed assets
Group
Land and buildings freehold
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 July 2022
1,641,482
1,950,768
218,699
423,242
4,234,191
Additions
455,111
-
0
-
0
3,850
458,961
Disposals
-
0
-
0
-
0
(26,080)
(26,080)
At 30 June 2023
2,096,593
1,950,768
218,699
401,012
4,667,072
Depreciation and impairment
At 1 July 2022
163,044
1,917,450
212,248
295,357
2,588,099
Depreciation charged in the year
37,550
5,792
3,719
25,404
72,465
Eliminated in respect of disposals
-
0
-
0
-
0
(26,080)
(26,080)
At 30 June 2023
200,594
1,923,242
215,967
294,681
2,634,484
Carrying amount
At 30 June 2023
1,895,999
27,526
2,732
106,331
2,032,588
At 1 July 2022
1,478,438
33,318
6,451
127,885
1,646,092
The company had no tangible fixed assets at 30 June 2023 or 30 June 2022.

Freehold land and buildings were valued by John Martin and Associates, Chartered Surveyors as at 30 June 2013, on the basis of open market value for existing use.

 

Included within Freehold Property is £1,053,331 (2022: £1,053,331) of land that is not depreciated.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
92,547
115,144
-
0
-
0

If revalued assets were stated on an historical cost basis rather than fair value, the total amounts included would have been as follows:

K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
13
Tangible fixed assets
(Continued)
- 27 -
2023
2022
£
£
Group
Cost
745,140
217,778
Accumulated depreciation
(84,337)
(78,198)
Carrying value
660,803
139,580
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
25,100
25,100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022
25,100
Carrying amount
At 30 June 2023
25,100
At 1 July 2022
25,100
15
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
K J Cherry & Sons Limited
England
Ordinary
100.00
Cherwell Valley Silos Limited
England
Ordinary
100.00
K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 28 -
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
318,212
529,054
-
-
Finished goods and goods for resale
334,297
448,235
-
0
-
0
652,509
977,289
-
-
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,961,401
1,404,027
-
0
-
0
Unpaid share capital
2,008
2,008
2,008
2,008
Derivative financial instruments
139,471
272,614
-
-
Other debtors
3,237,986
3,484,946
-
0
-
0
Prepayments and accrued income
468,566
393,328
-
0
-
0
5,809,432
5,556,923
2,008
2,008
18
Current asset investments
Group
Company
2023
2022
2023
2022
£
£
£
£
Unlisted investments
1
1
-
-
19
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
139,472
272,615
-
-
K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
20
Derivative financial instruments

The group enters into forward contracts to buy or sell commodities. The group hedges against commodity price exposure by trading in commodity futures.

 

The forward contracts and related hedging instruments are due to complete between July 2023 and June 2024.

 

Where commodity futures are traded in Euros the group also purchases Euros to hedge against the movement in exchange rates.

 

The amount (£133,143) (2022: £267,430) has been recognised in other comprehensive income for the year as the movement in the current year.

 

The net position at the year end was an asset of £139,471 (2022: £272,614)

21
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
278,085
284,685
-
0
-
0
Obligations under finance leases
24
20,038
25,802
-
0
-
0
Trade creditors
1,969,900
1,839,258
-
0
-
0
Corporation tax payable
51,781
129,789
-
0
-
0
Other taxation and social security
36,467
22,320
-
-
Other creditors
24,947
35,451
-
0
-
0
Accruals and deferred income
728,459
574,735
-
0
-
0
3,109,677
2,912,040
-
0
-
0

The loans are secured by a mortgage debenture over certain assets of the company.

 

Hire purchase obligations are secured against the relevant tangible fixed assets.

 

The invoice discounting creditor is secured by way of a fixed and floating charge over the debtors of Cherwell Valley Silos Limited. The invoice discounting creditor is guaranteed by K J Cherry and Sons Ltd, the parent company.

22
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
23
241,667
341,667
-
0
-
0
Obligations under finance leases
24
5,746
25,383
-
0
-
0
247,413
367,050
-
-
K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 30 -
23
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
341,667
441,667
-
0
-
0
Bank overdrafts
178,085
184,685
-
0
-
0
519,752
626,352
-
-
Payable within one year
278,085
284,685
-
0
-
0
Payable after one year
241,667
341,667
-
0
-
0

The bank loans are secured by a mortgage debenture over certain assets of the group.

24
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
20,038
25,802
-
0
-
0
In two to five years
5,746
25,383
-
0
-
0
25,784
51,185
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
33,997
30,276

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of £0.01 each
200,800
200,800
2,008
2,008
K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 31 -
27
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
21,246
28,062
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 July 2022
28,062
-
Credit to profit or loss
(6,816)
-
Liability at 30 June 2023
21,246
-

 

28
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
10,958
13,770
-
-
Between two and five years
-
10,958
-
-
10,958
24,728
-
-
29
Controlling party
In the opinion of the directors, there is no ultimate controlling party.
30
Related party transactions
The group has taken advantage of the exemption available under FRS 102 from disclosing transactions with its subsidiary undertakings.
As at 30 June 2023 the group was owed £3,154,333 (2022: £3,463,560) by Cherwell Valley Business Park Limited, a subsidiary company. The loan is interest free and repayable on demand.
K J CHERRY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 32 -
31
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
48,192
48,192
Adjustments for:
Investment income
(48,192)
(48,192)
Cash absorbed by operations
-
-
32
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
585,231
618,022
Adjustments for:
Taxation charged
44,965
138,633
Finance costs
24,401
59,314
Investment income
(6,818)
(242)
(Gain)/loss on disposal of tangible fixed assets
(1,600)
1,389
Depreciation and impairment of tangible fixed assets
72,465
207,331
Movements in working capital:
Decrease/(increase) in stocks
324,780
(361,366)
(Increase)/decrease in debtors
(385,652)
214,531
Increase in creditors
288,009
176,407
Cash generated from operations
945,781
1,054,019
33
Analysis of changes in net funds - group
30 June 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
1,399,697
160,855
1,560,552
Bank overdrafts
(184,685)
6,600
(178,085)
1,215,012
167,455
1,382,467
Borrowings excluding overdrafts
(441,667)
100,000
(341,667)
Obligations under finance leases
(51,185)
25,401
(25,784)
722,160
292,856
1,015,016
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