REGISTERED NUMBER: 00931475 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
W POTTER & SONS (HOLDINGS) LIMITED |
REGISTERED NUMBER: 00931475 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
W POTTER & SONS (HOLDINGS) LIMITED |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 March 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
W POTTER & SONS (HOLDINGS) LIMITED |
COMPANY INFORMATION |
for the year ended 31 March 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
1110 Elliott Court |
Herald Avenue |
Coventry Business Park |
Coventry |
West Midlands |
CV5 6UB |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
GROUP STRATEGIC REPORT |
for the year ended 31 March 2023 |
The directors present their strategic report of the company and the group for the year ended 31 March 2023. |
REVIEW OF BUSINESS |
Whilst group turnover increased by 4.8% during the year from £11.63m in 2022 to £12.191m in 2023, overall trading conditions continue to be challenging from high energy costs, increase in grain prices and reduced customer demand which resulted in the group operating loss of £165K. Overall loss for the year stood at £492K due to rising interest rates on loans. Net assets at the balance sheet date stood at £2.106m (2022: £2.746m). |
The Group is beginning to see a modest up turn in business both in the UK and promising increases in demand in the overseas markets. In addition, the Leigh Road property was sold in March 2024, enabling release of part of the debt structure and providing cashflow support going forward. |
Financial Risk Management |
Price risk, credit risk, liquidity risk and cash flow risk |
The Group is exposed to commodity price risk in particular with regards to steel, plastic, wheat, soya and energy. The Group manages its exposure to commodity price risk by negotiating fixed price contracts where appropriate and by ensuring that sales contracts are structured to be able to pass on any increases in these costs. |
The business' activities expose it to the financial risks of foreign currency exchange rates. The Group manages it's exposure to foreign currency risk with forward contracts, where appropriate. |
The business' principal financial instruments compose bank balances, bank overdrafts, trade debtors, trade creditors and loans to the business. Working capital requirements are reviewed regularly to ensure that trade creditors and overdraft facilities are managed appropriately, to minimise any liquidity risk. |
Trade debtors are managed in respect of credit and cashflow risk. Credit offered to customers is assessed and outstanding amounts are monitored on a regular basis. |
Loans and loan repayments are managed to meet the cash flow requirements of the business, ensuring that there are sufficient funds to meet all payments. |
ON BEHALF OF THE BOARD: |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of rearing poultry for sale to the egg laying industry and provision of farm services. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 March 2023. |
The directors recommend that no final dividend be paid. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
OTHER MATTERS |
Information required under Schedule 7 of the Large and Medium-sized Companies and Group (Accounts and Reports Regulations) 2008 to be disclosed in the directors' report are set out in the strategic report in accordance with S414C(11)Companies Act 2006. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
REPORT OF THE DIRECTORS |
for the year ended 31 March 2023 |
AUDITORS |
The auditors, Luckmans Duckett Parker Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
W POTTER & SONS (HOLDINGS) LIMITED |
Opinion |
We have audited the financial statements of W Potter & Sons (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2023 and of the group's loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
W POTTER & SONS (HOLDINGS) LIMITED |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
W POTTER & SONS (HOLDINGS) LIMITED |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | reference to past history and experience of the Group and knowledge of the Sector, |
- | enquiry of management, including obtaining and reviewing supporting documentation concerning |
the Group's procedures relating to: |
-identifying and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
-detection and response to risk of fraud and whether they were aware of any actual or suspected instances of fraud. |
- | assessment of the controls and processes that the Group has in place to mitigate risk |
Our assessments included the identification of the following potential areas for fraud: |
- | Management override of control; |
- | Revenue recognition; specifically recognition of sales according to date of shipment and |
consideration of the application of long term contract accounting |
We design audit procedures by tailored and directed testing to aid and support the level of determined level of risk. In response to the assessed risk we plan audit tests and procedures that target specific areas where misstatement may occur. These procedures and the extent to which they are capable of detecting irregularities, including fraud, are detailed below: |
- | We critically assessed the appropriateness and tested the application of the revenue and cost |
recognition policies |
- | We tested the appropriateness of accounting journals and other adjustments made in the |
preparation of the financial statements |
- | We reviewed the Group's accounting policies for non-compliance with relevant standards. |
- | We made enquiries of management and reviewed correspondence with the relevant authorities to |
identify any irregularities or instances of non-compliance with laws and regulations |
In performing an audit in accordance with UK GAAP, we exercise professional judgement and maintain professional scepticism throughout the audit process. |
All engagement team members were made aware of relevant identified laws and regulations and potential fraud risks and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion or override of internal controls. There are inherent limitations in the audit procedures performed. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
W POTTER & SONS (HOLDINGS) LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
1110 Elliott Court |
Herald Avenue |
Coventry Business Park |
Coventry |
West Midlands |
CV5 6UB |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
CONSOLIDATED |
INCOME STATEMENT |
for the year ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 12,191,732 | 11,630,298 |
Cost of sales | 11,065,307 | 10,810,886 |
GROSS PROFIT | 1,126,425 | 819,412 |
Administrative expenses | 1,400,100 | 1,534,271 |
(273,675 | ) | (714,859 | ) |
Other operating income | 108,365 | 139,761 |
OPERATING LOSS | 5 | (165,310 | ) | (575,098 | ) |
Interest receivable and similar income | 605 | - |
(164,705 | ) | (575,098 | ) |
Interest payable and similar expenses | 6 | 328,089 | 253,090 |
LOSS BEFORE TAXATION | (492,794 | ) | (828,188 | ) |
Tax on loss | 7 | 112,893 | 9,894 |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
Loss attributable to: |
Owners of the parent | (605,687 | ) | (838,082 | ) |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
for the year ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
LOSS FOR THE YEAR | (605,687 | ) | (838,082 | ) |
OTHER COMPREHENSIVE INCOME |
Deferred tax FH property revaluation | - | 760,000 |
Income tax relating to other comprehensive income |
(34,231 |
) |
(144,400 |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(34,231 |
) |
615,600 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(639,918 |
) |
(222,482 |
) |
Total comprehensive income attributable to: |
Owners of the parent | (639,918 | ) | (222,482 | ) |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
CONSOLIDATED BALANCE SHEET |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 6,286,191 | 6,447,471 |
Investments | 10 | - | - |
Investment property | 11 | - | - |
6,286,191 | 6,447,471 |
CURRENT ASSETS |
Stocks | 12 | 717,837 | 1,371,644 |
Debtors | 13 | 1,648,279 | 2,143,231 |
Cash at bank and in hand | 171,894 | 209,606 |
2,538,010 | 3,724,481 |
CREDITORS |
Amounts falling due within one year | 14 | 3,915,210 | 3,413,426 |
NET CURRENT (LIABILITIES)/ASSETS | (1,377,200 | ) | 311,055 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
4,908,991 |
6,758,526 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(2,112,431 |
) |
(3,470,379 |
) |
PROVISIONS FOR LIABILITIES | 19 | (690,571 | ) | (542,240 | ) |
NET ASSETS | 2,105,989 | 2,745,907 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 132 | 132 |
Revaluation reserve | 21 | 1,359,881 | 1,394,112 |
Retained earnings | 21 | 745,976 | 1,351,663 |
SHAREHOLDERS' FUNDS | 2,105,989 | 2,745,907 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 March 2024 and were signed on its behalf by: |
J M Potter - Director |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
COMPANY BALANCE SHEET |
31 March 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
Investment property | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Revaluation reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (652,462 | ) | (50,891 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 March 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 | 132 | 2,189,745 | 778,512 | 2,968,389 |
Changes in equity |
Total comprehensive income | - | (838,082 | ) | 615,600 | (222,482 | ) |
Balance at 31 March 2022 | 132 | 1,351,663 | 1,394,112 | 2,745,907 |
Changes in equity |
Total comprehensive income | - | (605,687 | ) | (34,231 | ) | (639,918 | ) |
Balance at 31 March 2023 | 132 | 745,976 | 1,359,881 | 2,105,989 |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
for the year ended 31 March 2023 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Reserve transfer | - | (615,600 | ) | 615,600 | - |
Balance at 31 March 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Reserve transfer | - | 34,231 | (34,231 | ) | - |
Balance at 31 March 2023 |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 March 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 11,480 | (96,131 | ) |
Interest paid | (324,920 | ) | (210,530 | ) |
Interest element of hire purchase payments paid |
(3,169 |
) |
(6,607 |
) |
Tax paid | (6,661 | ) | - |
Net cash from operating activities | (323,270 | ) | (313,268 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (34,673 | ) | (83,898 | ) |
Sale of tangible fixed assets | 125,179 | 68,994 |
Interest received | 605 | - |
Net cash from investing activities | 91,111 | (14,904 | ) |
Cash flows from financing activities |
New loan | - | 1,357,564 |
Loan repayments in year | - | (825,000 | ) |
Bank loan repaid | (3,115 | ) | (32,141 | ) |
Capital repayments in year | (16,724 | ) | (30,262 | ) |
Amount introduced by directors | 225,000 | - |
Amount withdrawn by directors | (10,714 | ) | (16,292 | ) |
Net cash from financing activities | 194,447 | 453,869 |
(Decrease)/increase in cash and cash equivalents | (37,712 | ) | 125,697 |
Cash and cash equivalents at beginning of year |
2 |
209,606 |
83,909 |
Cash and cash equivalents at end of year |
2 |
171,894 |
209,606 |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
for the year ended 31 March 2023 |
1. | RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Loss before taxation | (492,794 | ) | (828,188 | ) |
Depreciation charges | 137,107 | 220,473 |
Profit on disposal of fixed assets | (66,334 | ) | (10,986 | ) |
Finance charges | 13,390 | - |
Finance costs | 328,089 | 253,090 |
Finance income | (605 | ) | - |
(81,147 | ) | (365,611 | ) |
Decrease/(increase) in stocks | 653,807 | (798,116 | ) |
Decrease/(increase) in trade and other debtors | 479,313 | (135,290 | ) |
(Decrease)/increase in trade and other creditors | (1,040,493 | ) | 1,202,886 |
Cash generated from operations | 11,480 | (96,131 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 171,894 | 209,606 |
Year ended 31 March 2022 |
31.3.22 | 1.4.21 |
£ | £ |
Cash and cash equivalents | 209,606 | 83,909 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.4.22 | Cash flow | changes | At 31.3.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 209,606 | (37,712 | ) | 171,894 |
209,606 | (37,712 | ) | 171,894 |
Debt |
Finance leases | (16,724 | ) | 16,724 | - | - |
Debts falling due |
within 1 year | (3,933 | ) | - | (1,357,564 | ) | (1,361,497 | ) |
Debts falling due |
after 1 year | (3,459,720 | ) | 3,115 | 1,344,174 | (2,112,431 | ) |
(3,480,377 | ) | 19,839 | (13,390 | ) | (3,473,928 | ) |
Total | (3,270,771 | ) | (17,873 | ) | (13,390 | ) | (3,302,034 | ) |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
for the year ended 31 March 2023 |
1. | STATUTORY INFORMATION |
W Potter & Sons (Holdings) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared on the going concern basis. The Group's ability to continue trading is dependent upon management of cashflow. Following the sale of a freehold property in the parent company, the parent company is now looking to support group cash flow over the next 12 months to stabilise the overall business and to support growth in certain markets. The directors believe that there is sufficient cash flow to support the business over the next 12 month and that the company is therefore a going concern for the foreseeable future. The Directors consider it appropriate to prepare the financial statements on the going concern basis. |
Basis of consolidation |
The financial statements have been produced in accordance with the acquisition method set out in Section 9 paragraph 13 onwards of FRS102. |
The financial statements consolidate the results of the company and all it's subsidiaries for the year ended 31st March 2023 and shows the results of the group for the year to 31st March 2023. |
Judgements and key sources of estimation uncertainty |
No significant judgements have been made in the process of applying the accounting policies. |
There are no key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable. The policies adopted for the recognition of turnover are as follows: |
Farm Services and Rearing |
Turnover represents the sale of poultry housing systems and the sale of rearing poultry to the egg laying industry. |
Sales are accounted for as long term contracts under the provisions of Section 23 FRS102. Contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to the proportion of total costs incurred at the balance sheet date. |
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that is probable will be recoverable. |
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
The group follows a revaluation policy in line with Section 17.15 FRS102. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items, on a first in, first out basis. |
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress. Contracts are reviewed at each year end and accounted for in accordance with the provisions of Section 23 FRS102. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase agreements |
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account. |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Operating lease commitments |
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease in accordance with section 20.15 FRS102. |
Debtors and creditors receivable/payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
3. | TURNOVER |
The turnover and loss before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 6,116,337 | 5,088,925 |
Europe | 114,428 | - |
United States of America | 5,203,675 | 6,303,293 |
Asia | 291,198 | 166,704 |
Australia | 49,632 | 14,262 |
Canada | 416,462 | 57,114 |
12,191,732 | 11,630,298 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,230,242 | 1,363,751 |
Social security costs | 115,985 | 118,047 |
Other pension costs | 27,208 | 42,195 |
1,373,435 | 1,523,993 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 2 | 2 |
Administration and Finance | 6 | 5 |
Rearing and Farm Services | 28 | 31 |
The average number of employees by undertakings that were proportionately consolidated during the year was 36 (2022 - 38 ) . |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration | 188,424 | 181,200 |
5. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 123,044 | 199,621 |
Depreciation - assets on hire purchase contracts | 14,064 | 20,852 |
Profit on disposal of fixed assets | (66,334 | ) | (10,986 | ) |
Auditors' remuneration | 25,552 | 24,500 |
Foreign exchange differences | (19,614 | ) | 26,447 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | 4,684 | 3,102 |
Bank loan interest | 2,103 | - |
Loan | 317,914 | 243,381 |
Late payment interest | 219 | - |
Hire purchase charges | 3,169 | 6,607 |
328,089 | 253,090 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 4 | 1,211 |
Prior year adjustment | (1,211 | ) | - |
Total current tax | (1,207 | ) | 1,211 |
Deferred tax | 114,100 | 8,683 |
Tax on loss | 112,893 | 9,894 |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Loss before tax | (492,794 | ) | (828,188 | ) |
Loss multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
(93,631 |
) |
(157,356 |
) |
Effects of: |
Expenses not deductible for tax purposes | 3,459 | 8,895 |
Depreciation in excess of capital allowances | 20,599 | 23,682 |
Loss utilisation | (1,211 | ) | - |
Difference in US tax rates | (2,793 | ) | 471 |
Deferred taxation | 114,100 | 8,683 |
credit |
Tax losses carried forward | 72,370 | 125,519 |
Total tax charge | 112,893 | 9,894 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Deferred tax FH property revaluation | - | (34,231 | ) | (34,231 | ) |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Freehold property revaluation | 760,000 | (144,400 | ) | 615,600 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 April 2022 | 5,885,603 | 1,161,779 | 363,311 | 405,566 | 7,816,259 |
Additions | - | 33,723 | - | 950 | 34,673 |
Disposals | - | (89,021 | ) | - | (68,871 | ) | (157,892 | ) |
At 31 March 2023 | 5,885,603 | 1,106,481 | 363,311 | 337,645 | 7,693,040 |
DEPRECIATION |
At 1 April 2022 | 8,700 | 781,250 | 250,224 | 328,614 | 1,368,788 |
Charge for year | - | 70,540 | 24,990 | 41,578 | 137,108 |
Eliminated on disposal | - | (45,624 | ) | - | (53,423 | ) | (99,047 | ) |
At 31 March 2023 | 8,700 | 806,166 | 275,214 | 316,769 | 1,406,849 |
NET BOOK VALUE |
At 31 March 2023 | 5,876,903 | 300,315 | 88,097 | 20,876 | 6,286,191 |
At 31 March 2022 | 5,876,903 | 380,529 | 113,087 | 76,952 | 6,447,471 |
Cost or valuation at 31 March 2023 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2019 | 347,709 | - | - | - | 347,709 |
Valuation in 2021 | 194,870 | - | - | - | 194,870 |
Valuation in 2022 | 760,000 | - | - | - | 760,000 |
Cost | 4,583,024 | 1,106,481 | 363,311 | 337,645 | 6,390,461 |
5,885,603 | 1,106,481 | 363,311 | 337,645 | 7,693,040 |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 4,583,024 | 4,583,024 |
Freehold land and buildings were valued on an open market basis basis on 23 June 2020 by Fisher German and one site on 10/3/2022 . |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 April 2022 | 70,027 | 33,373 | 103,400 |
Disposals | - | (33,373 | ) | (33,373 | ) |
At 31 March 2023 | 70,027 | - | 70,027 |
DEPRECIATION |
At 1 April 2022 | 47,268 | 13,325 | 60,593 |
Charge for year | 10,504 | 3,560 | 14,064 |
Eliminated on disposal | - | (16,885 | ) | (16,885 | ) |
At 31 March 2023 | 57,772 | - | 57,772 |
NET BOOK VALUE |
At 31 March 2023 | 12,255 | - | 12,255 |
At 31 March 2022 | 22,759 | 20,048 | 42,807 |
Company |
Fixtures |
Plant and | and |
machinery | fittings | Totals |
£ | £ | £ |
COST |
At 1 April 2022 |
and 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Pro Logis Park, Oxford Rd, Ryton on Dunsmore CV8 3EJ |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Pro Logis Park, Oxford Rd, Ryton on Dunsmore CV8 3EJ |
Nature of business: |
% |
Class of shares: | holding |
Potters Poultry Inc |
Registered office: USA |
Nature of business: provision of farm services |
% |
Class of shares: | holding |
Ordinary | 100.00 |
11. | INVESTMENT PROPERTY |
Company |
Total |
£ |
FAIR VALUE |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
12. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 551,264 | 780,665 |
Work-in-progress | 166,573 | 590,979 |
717,837 | 1,371,644 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 927,265 | 1,103,158 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contract | 538,558 | 634,001 |
Other debtors | - | 1,464 |
Loan provision | - | - | (469,288 | ) | - |
Directors' current accounts | - | 15,640 | - | - |
VAT | 51,875 | - |
Prepayments and accrued income | 130,581 | 388,968 |
1,648,279 | 2,143,231 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 3,933 | 3,933 |
Other loans (see note 16) | 1,357,564 | - |
Hire purchase contracts (see note 17) | - | 6,065 |
Trade creditors | 1,580,127 | 1,549,813 |
Amounts owed to group undertakings | - | - |
Tax | - | 7,868 |
Social security and other taxes | 49,734 | 41,054 |
Other creditors | 74,251 | 124,787 | - | - |
Payments received on account | 611,408 | 1,239,494 | - | - |
Directors' current accounts | 198,646 | - | 198,646 | - |
Accrued expenses | 39,547 | 440,412 |
3,915,210 | 3,413,426 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 16) | 9,668 | 12,783 |
Other loans (see note 16) | 2,102,763 | 3,446,937 |
Hire purchase contracts (see note 17) | - | 10,659 |
2,112,431 | 3,470,379 |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank loans | 3,933 | 3,933 |
Other loans | 1,357,564 | - |
1,361,497 | 3,933 |
Amounts falling due between one and | two years: |
Bank loans - 1-2 years | 3,933 | 3,933 |
Other loans - 1-2 years | - | 1,357,564 | - |
3,933 | 1,361,497 |
Amounts falling due between two and | five years: |
Bank loans - 2-5 years | 5,735 | 8,850 |
Other loans - 2-5 years | 2,102,763 | - |
2,108,498 | 8,850 |
Amounts falling due in more than five | years: |
Repayable by instalments |
Other loans more 5yrs instal | - | 2,089,373 | - | 2,089,373 |
The loan totalling £2,102,763 is subject to an interest charge of 7.85% plus base and is repayable in one instalment at the end of the loan term on 28/8/2027. |
The loan totalling £1,357,564 is subject to an interest charge of 0.65% per month and is repayable in full on 11/9/2023.After the end of the accounting period, the repayment term has been extended to the earlier of within 5 business days of written demand by the Agent, and 10th May 2024. The interest rate during the revised term is base+5%. This loan has been repaid in full in March 2024. |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | - | 6,065 |
Between one and five years | - | 10,659 |
- | 16,724 |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
17. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 13,192 | 36,369 |
Between one and five years | 245,126 | 15,611 |
258,318 | 51,980 |
Company |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans | 13,601 | 16,716 |
Other loan | 3,460,328 | 3,446,937 | 3,460,328 | 3,446,937 |
3,473,929 | 3,463,653 |
Hire purchase and finance leases are secured upon the assets to which the finance relates. |
The other loan is secured by a first ranking legal charge is held over land and property known as Toby's Hill Farm, Woodsetts Farm, Bodway Poultry Farm, Arley Lane, Green End Farm and Unit 2 Leigh Road, Rugby. A fixed charge and floating charge are held, covering Leigh Road or any undertaking of the Company. |
Unlimited personal guarantees have been given by the Company Directors. |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 690,571 | 542,240 | 690,571 | 542,240 |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
19. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2022 | 542,240 |
Provided during year | 148,331 |
Balance at 31 March 2023 | 690,571 |
Company |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Provided during year |
Balance at 31 March 2023 |
Included in the deferred tax provision above is £142,632 relating to the revaluation of freehold properties and £547,939 relating to accelerated capital allowances. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 0.01p | 100 | 100 |
Ordinary A Shares | 0.01p | 32 | 32 |
132 | 132 |
All shares have equal voting rights. Each share in each class is entitled pari passu to dividend payments or any other distribution declared in that class. |
21. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2022 | 1,351,663 | 1,394,112 | 2,745,775 |
Deficit for the year | (605,687 | ) | (605,687 | ) |
Revaluation of fixed assets | - | (34,231 | ) | (34,231 | ) |
At 31 March 2023 | 745,976 | 1,359,881 | 2,105,857 |
W POTTER & SONS (HOLDINGS) LIMITED (REGISTERED NUMBER: 00931475) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
for the year ended 31 March 2023 |
21. | RESERVES - continued |
Company |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2022 | 2,646,567 |
Deficit for the year | ( |
) | ( |
) |
Reserve transfer | 34,231 | (34,231 | ) | - |
At 31 March 2023 | 1,994,105 |
Amounts taken to the revaluation reserve are subject to a deferred tax charge, as required under FRS102. |
22. | RELATED PARTY DISCLOSURES |
Key management personnel of the entity or its parent (in the aggregate) |
2023 | 2022 |
£ | £ |
Amount due from related party | - | 15,640 |
Amount due to related party | 198,646 | - |
23. | POST BALANCE SHEET EVENTS |
The property at Leigh Road has been sold since the balance sheet date for a consideration of £2,700,000. |