Company registration number 01667255 (England and Wales)
TYNEGRAIN AGRICULTURE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
TYNEGRAIN AGRICULTURE LIMITED
COMPANY INFORMATION
Directors
P.A. Jackson
R.J. Davison
G.J. Bright
C. Stephenson
G.O. Alderslade
A.R. Graham
D.W. Hall
D.J. Gibson
M.W. Hutchinson
Secretary
D.J. Lant
Company number
01667255
Registered office
Tyne Dock
South Shields
Tyne & Wear
NE34 9PL
Auditor
Greaves West & Ayre
17 Walkergate
Berwick-upon-Tweed
Northumberland
TD15 1DJ
TYNEGRAIN AGRICULTURE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
TYNEGRAIN AGRICULTURE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

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

Review of the business

The Group Buying scheme and Agronomy services maintained a high level of farmer participation.

The Company appointed in this transitional year two new Agronomists to allow this essential service to continue for the long term.

By order of the board

D.J. Lant
Secretary
2 October 2023
TYNEGRAIN AGRICULTURE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

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

Principal activities

The principal activity of the company is the provision of crop advice and group buying of goods for its members.

Results and dividends

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

 

The profit for the year, after taxation, amounted to £54,354 (2022: £2,654).

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

P.A. Jackson
R.J. Davison
G.J. Bright
C. Stephenson
G.O. Alderslade
A.R. Graham
R. Allinson
(Resigned 30 September 2022)
D.W. Hall
D.J. Gibson
M.W. Hutchinson
Auditor

The auditors, Greaves West & Ayre, will be proposed for reappointment in accordance with Section 485 of the Companies Act 2006.

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 company’s auditor 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 company’s auditor is aware of that information.

Strategic Report

Please refer to the Strategic Report for details of the fair review of the business.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

By order of the board
D.J. Lant
Secretary
2 October 2023
TYNEGRAIN AGRICULTURE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

TYNEGRAIN AGRICULTURE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TYNEGRAIN AGRICULTURE LIMITED
- 4 -
Opinion

We have audited the financial statements of Tynegrain Agriculture Limited (the 'company') for the year ended 30 June 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 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:

TYNEGRAIN AGRICULTURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TYNEGRAIN AGRICULTURE LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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:

TYNEGRAIN AGRICULTURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TYNEGRAIN AGRICULTURE LIMITED
- 6 -
The extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, including any fraud associated with revenue recognition, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.

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.

TYNEGRAIN AGRICULTURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TYNEGRAIN AGRICULTURE 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.

Craig Little CA
Senior Statutory Auditor
For and on behalf of Greaves West & Ayre
2 October 2023
Chartered Accountants
Statutory Auditor
17 Walkergate
Berwick-upon-Tweed
Northumberland
TD15 1DJ
TYNEGRAIN AGRICULTURE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
3,208,086
2,636,668
Cost of sales
(2,897,127)
(2,409,413)
Gross profit
310,959
227,255
Administrative expenses
(244,997)
(221,733)
Operating profit
4
65,962
5,522
Interest receivable and similar income
7
-
0
174
Profit before taxation
65,962
5,696
Tax on profit
8
(11,608)
(3,042)
Profit for the financial year
54,354
2,654

The profit and loss account has been prepared on the basis that all operations are continuing operations.

TYNEGRAIN AGRICULTURE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
2023
2022
£
£
Profit for the year
54,354
2,654
Other comprehensive income
-
-
Total comprehensive income for the year
54,354
2,654
TYNEGRAIN AGRICULTURE LIMITED
BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
2,918
32,598
Current assets
Debtors
10
1,210,144
1,471,046
Investments
11
1
1
Cash at bank and in hand
282,751
-
0
1,492,896
1,471,047
Creditors: amounts falling due within one year
12
(927,183)
(981,950)
Net current assets
565,713
489,097
Total assets less current liabilities
568,631
521,695
Provisions for liabilities
Deferred tax liability
14
730
8,150
(730)
(8,150)
Net assets
567,901
513,545
Capital and reserves
Called up share capital
16
244
242
Profit and loss reserves
567,657
513,303
Total equity
567,901
513,545

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 2 October 2023 and are signed on its behalf by:
P.A. Jackson
G.J. Bright
Director
Director
Company registration number 01667255 (England and Wales)
TYNEGRAIN AGRICULTURE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2021
243
510,649
510,892
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
2,654
2,654
Issue of share capital
16
6
-
6
Reduction of shares
16
(7)
-
0
(7)
Balance at 30 June 2022
242
513,303
513,545
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
54,354
54,354
Issue of share capital
16
16
-
16
Reduction of shares
16
(14)
-
0
(14)
Balance at 30 June 2023
244
567,657
567,901
TYNEGRAIN AGRICULTURE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
22
461,238
(150,902)
Income taxes paid
-
0
(2,841)
Net cash inflow/(outflow) from operating activities
461,238
(153,743)
Investing activities
Purchase of tangible fixed assets
-
0
(27,900)
Proceeds from disposal of tangible fixed assets
27,500
-
0
Interest received
-
0
174
Net cash generated from/(used in) investing activities
27,500
(27,726)
Financing activities
Proceeds from issue of shares
16
6
Redemption of shares
(14)
(7)
Net cash generated from/(used in) financing activities
2
(1)
Net increase/(decrease) in cash and cash equivalents
488,740
(181,470)
Cash and cash equivalents at beginning of year
(205,989)
(24,519)
Cash and cash equivalents at end of year
282,751
(205,989)
Relating to:
Cash at bank and in hand
282,751
-
0
Bank overdrafts included in creditors payable within one year
-
0
(205,989)
TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
1
Accounting policies
Company information

Tynegrain Agriculture Limited is a private company limited by shares incorporated in England and Wales. The registered office is Tyne Dock, South Shields, Tyne & Wear, NE34 9PL.

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 pound sterling.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
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.

1.4
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.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computer equipment
33 1/3% Straight Line
Motor vehicles
33 1/3% 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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company 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.

TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 14 -

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.

1.6
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.

1.7
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 15 -
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 company 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.

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 company 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.

TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 when the company has 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.

1.10
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.

 

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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 17 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales of goods and services
3,208,086
2,636,668
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
3,208,086
2,636,668
2023
2022
£
£
Other revenue
Interest income
-
174
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
10,638
11,368
Depreciation of owned tangible fixed assets
17,280
15,730
Profit on disposal of tangible fixed assets
(15,100)
-
5
Employees

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

2023
2022
Number
Number
Average number of employees
2
3
TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
5
Employees
(Continued)
- 18 -

The aggregate remuneration, including recharges from associated companies, comprised:

2023
2022
£
£
Wages and salaries
100,850
129,880
Social security costs
9,283
12,083
Pension costs
8,011
8,911
118,144
150,874
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services including benefits and non executive directors fees
21,627
61,169
Company pension contributions to defined contribution schemes
1,340
5,348
22,967
66,517

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022: 1).

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
-
0
174
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
0
174
TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 19 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
19,028
-
0
Deferred tax
Origination and reversal of timing differences
(7,420)
3,042
Total tax charge
11,608
3,042

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
65,962
5,696
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
16,491
1,082
Tax effect of expenses that are not deductible in determining taxable profit
7,420
2,989
Effect of change in corporation tax rate
(4,883)
-
0
Permanent capital allowances in excess of depreciation
-
0
(5,301)
Deferred tax movement relating to the origination and reversal of
timing differences
(7,420)
3,042
Utilisation of tax losses
-
0
1,230
Taxation charge for the year
11,608
3,042
TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 20 -
9
Tangible fixed assets
Computer equipment
Motor vehicles
Total
£
£
£
Cost
At 1 July 2022
2,294
54,165
56,459
Disposals
(2,294)
(27,900)
(30,194)
At 30 June 2023
-
0
26,265
26,265
Depreciation and impairment
At 1 July 2022
2,294
21,567
23,861
Depreciation charged in the year
-
0
17,280
17,280
Eliminated in respect of disposals
(2,294)
(15,500)
(17,794)
At 30 June 2023
-
0
23,347
23,347
Carrying amount
At 30 June 2023
-
0
2,918
2,918
At 30 June 2022
-
0
32,598
32,598
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,193,924
1,469,026
Other debtors
1,775
19
Prepayments and accrued income
14,445
2,001
1,210,144
1,471,046
11
Current asset investments
2023
2022
£
£
Unlisted investments
1
1

The unlisted investment represents the cost of one share in Tynegrain Limited, an agricultural co-operative.

 

The market value of the investment is not readily ascertainable however the directors are of the opinion that its value is in excess of cost.

TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 21 -
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
13
-
0
205,989
Trade creditors
275,194
631,762
Amounts owed to undertakings in which the company has a participating interest
514,836
90,578
Corporation tax
19,028
-
0
Other taxation and social security
39,883
34,549
Accruals and deferred income
78,242
19,072
927,183
981,950
13
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
-
0
205,989
Payable within one year
-
0
205,989

The bank overdraft is secured as follows:-

Fixed charge over book debts and a floating charge over all other assets dated 1 August 1994.

 

Company unlimited multilateral guarantee dated 21 July 1994 given by Tynegrain Limited and Tynegrain Agriculture Limited.

14
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
ACAs
730
8,150
2023
Movements in the year:
£
Liability at 1 July 2022
8,150
Credit to profit or loss
(7,420)
Liability at 30 June 2023
730
TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
14
Deferred taxation
(Continued)
- 22 -

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature.

 

Following the enactment of the Finance Act 2021 the deferred tax provision at the year end has been calculated using a rate of 25% (2022: 25%).

15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
8,011
8,911

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
2,436 Ordinary of 10p each
244
242

During the year, 158 shares were issued at par and 144 were redeemed. The shares have full voting and dividend rights.

TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
17
Other related party relationships and transactions
2023
2022
£
£
Purchases
Tynegrain Limited
2,400
2,215
Meldon Village Storage and Drying Limited
-
-
Grainco Limited
739,823
587,188
742,223
589,403
2023
2022
£
£
Sales
Tynegrain Limited
390,262
305,157
Grainco Limited
-
-
Meldon Village Storage and Drying Limited
94,064
53,947
Pellet Co Limited
-
-
484,326
359,104
At the year end the following amounts were due by or to the company:-
Creditors
Debtors
2023
2022
2023
2022
£
£
£
£
Tynegrain Limited
500,600
-
-
-
Grainco Limited
14,236
90,578
-
-
Meldon Village Storage and Drying Limited
-
-
-
-
514,836
90,578
-
-
18
Financial commitments, guarantees and contingent liabilities

The company has entered into an unlimited multilateral guarantee with Tynegrain Limited over the debts of both companies.

TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 24 -
19
Related party transactions
Remuneration of key management personnel

The total remuneration of key management personnel, including social security costs, is as follows.

2023
2022
£
£
Aggregate compensation
24,396
72,877
20
Directors' transactions

Dividends totalling £0 (2022: £0) were paid in the year in respect of shares held by the company's directors.

All transactions with the directors were in the normal course of the business and were conducted on an "arms length" basis.

 

During the year, sales totalling £788,559 have been made to directors (2022: £1,081,816). At the year end the directors were cumulatively due to the company the sum of £518,571 (2022: £454,697) and are included within trade debtors.

 

During the year, purchases of £0 (2022: £10,524) were made from directors.

 

There were no amounts due to the directors at the year end (2022: £Nil).

21
Ultimate controlling party

There is no ultimate controlling party. No individual shareholdings are significant enough to give any individual party control over the company.

22
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit for the year after tax
54,354
2,653
Adjustments for:
Taxation charged
11,608
3,042
Investment income
-
0
(174)
Gain on disposal of tangible fixed assets
(15,100)
-
Depreciation and impairment of tangible fixed assets
17,280
15,731
Movements in working capital:
Decrease/(increase) in debtors
260,902
(553,861)
Increase in creditors
132,194
381,707
Cash generated from/(absorbed by) operations
461,238
(150,902)
TYNEGRAIN AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
23
Analysis of changes in net funds/(debt)
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
-
282,751
282,751
Bank overdrafts
(205,989)
205,989
-
0
(205,989)
488,740
282,751
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