Company registration number 00391270 (England and Wales)
A.L. TOZER LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
A.L. TOZER LIMITED
COMPANY INFORMATION
Directors
Dr. F M Gawthrop
Dr P R Dawson
Mr S J Winterbottom
Ms D L Barr
Mr L C R Dawson
Mr J R Claxton
Mr T Visser
(Appointed 24 August 2023)
Mr F Tahir
(Appointed 24 August 2023)
Company number
00391270
Registered office
Pyports
Downside Bridge Road
Cobham
Surrey
United Kingdom
KT11 3EH
Auditor
Azets Audit Services
Trinity Court
34 West Street
Sutton
Surrey
United Kingdom
SM1 1SH
A.L. TOZER LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 38
A.L. TOZER 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 results for the year and the financial position of the company are as shown in the annexed financial statements.

 

Turnover has decreased by 0.6% between 2022 and 2023. The Group saw a decrease in sales for a variety of products in the UK and Spanish subsidiaries. Due to the marginal decrease in turnover, product mix and the increase in transport and logistic costs following the global economic climate, the gross margin fell from 35.0% to 33.8%. The loss for the financial year is £398,738. We expect 2024 to be an extremely challenging year as there continues to be a global economic downturn, inflationary pressures and the continued effect of Brexit. We will continue our expansion of our global presence in the Asia and Oceania region, growth in the European market, and sales from some of our niche products.

 

Through the strength of our existing and new varieties, loyalty of the customer base, the strength in the Spanish market, and Tozer's strategy to grow the US market, and the incorporation of a new subsidiary in the Netherlands to drive European sales, Tozer continues to operate in a challenging market. The sales of seed in our top five Tozer varieties were again a major contributor to the turnover and continue to be strategic products in the company's portfolio.

Principal risks and uncertainties

Business risk

The main business risks are agricultural related and the performance in this market, and the competitiveness of the company's niche products. Although some of those risks are outside the company's control, the Directors continuously reviews its processes and operations to mitigate the risk, ensuring it remains as competitive as possible.

 

Foreign currency risk

The company mitigates foreign currency exchange rate risk by holding bank accounts in both Euro and Dollar accounts. The volatility of currency and reactions to financial markets due to the global economic climate, and the warnings from the Bank of England over financial stability has added to the uncertainty.

 

The main trading currency of Tozer Seeds Ltd has seen fluctuations against the Euro and Dollar. The Group is taking steps in minimizing FX risk by partnering with third party specialists in managing foreign exchange risk.

 

Brexit

The business has experienced adverse effects following Brexit and we expect this to continue. The restrictions imposed on the UK’s access to the EU single market has impacted the revenue for the opportunities to grow the UK business and has made it considerably more difficult to export, however, this has been mitigated following the incorporation of our new subsidiary in the Netherlands and we expect to grow our European business through the new subsidiary.

Development and performance

Tozer continue to retain key staff in the research and development of our niche products, and the development of new varieties by investing in people, capital and infrastructure. The company has introduced a training and development programme for all staff, and an incentive scheme to ensure performance levels remain high and consistent across the business which includes staff in our global operations.

 

A.L. TOZER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -
Key performance indicators

In addition to the number of new varieties the company is able to market, the Group have set out the following key performance indicators, with a focus on sales and profit metrics:

 

a.    Turnover growth

b.    Maintaining and increasing gross profit margin

 

Following the decrease in group turnover (0.6%), the group was able to maintain a competitive gross profit margin of 33.8% (35.0% prior year), following an increase in transport and logistic costs.

 

The group continues to drive its strategy of increasing sales overseas, despite the decrease in year-on-year turnover for the Spanish and American subsidiaries in a difficult economic climate.

 

The group has been able to add further home bred vegetable varieties with competitive margins, and exclusive third party products to its portfolio, which has helped underpin future turnover, gross margin and profitability.

Other performance indicators

In addition to the number of new varieties the company is able to market, turnover and gross profit are also key performance indicators for the business. During the current year the company has been able to add further home bred vegetable varieties with competitive margins, and exclusive third party products to its portfolio, which has helped underpin future turnover, gross margin and profitability.

On behalf of the board

Mr S J Winterbottom
Director
29 March 2024
A.L. TOZER LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

The directors have pleasure in presenting their report and financial statements of the group for the year ended 30 June 2023.

Principal activities

The principal activity of the company during the year was that of the development and breeding of vegetable seed varieties.

Results and dividends

The results for the year are set out on page 9.

The net loss for the year amounted to £398,738.

 

Based on the results for the year, the directors have agreed not to pay a dividend this financial year.

Directors

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

Dr. F M Gawthrop
Dr P R Dawson
Mr S J Winterbottom
Ms D L Barr
Mr L C R Dawson
Mr J R Claxton
Mr T Visser
(Appointed 24 August 2023)
Mr F Tahir
(Appointed 24 August 2023)
Market value of land and buildings

The company owns various land and properties, which (except where classified as investment property) are included at cost in the balance sheet. Their current market value is considered to be considerably in excess of this.

Financial instruments
Risk assessment

An assessment of the principal risks faced by the group and the steps taken to mitigate them have been included in the strategic report.

Research and development

The company undertakes significant research into the development and breeding of vegetable seed varieties, in order to remain competitive.

Future developments

The directors intend the company to remain in a strong financial and trading position, building on the solid foundations and historic reputation established, whilst being innovative and responding to changes in the market. It will increase the proportion of internally developed varieties being sold and raise profitability.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.

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.

A.L. TOZER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 4 -
On behalf of the board
Mr S J Winterbottom
Director
29 March 2024
A.L. TOZER LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 5 -

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.

A.L. TOZER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF A.L. TOZER LIMITED
- 6 -
Opinion

We have audited the financial statements of A.L. Tozer Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise 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:

A.L. TOZER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A.L. TOZER LIMITED
- 7 -
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.

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.

A.L. TOZER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A.L. TOZER LIMITED
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Sam Thomas (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
29 March 2024
Chartered Accountants
Statutory Auditor
Trinity Court
34 West Street
Sutton
Surrey
United Kingdom
SM1 1SH
A.L. TOZER LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
14,433,338
14,521,672
Cost of sales
(9,553,536)
(9,444,131)
Gross profit
4,879,802
5,077,541
Distribution costs
(1,153,580)
(1,337,251)
Administrative expenses
(4,649,299)
(4,496,658)
Other operating income
188,270
213,511
Operating loss
4
(734,807)
(542,857)
Interest receivable and similar income
9
299
195
Interest payable and similar expenses
8
(55,455)
(78,206)
Loss before taxation
(789,963)
(620,868)
Tax on loss
10
391,225
319,293
Loss for the financial year
(398,738)
(301,575)
Other comprehensive income
Revaluation of tangible fixed assets
201,146
60,000
Currency translation loss taken to retained earnings
(386)
(20,381)
Tax relating to other comprehensive income
(50,286)
(79,870)
Total comprehensive income for the year
(248,264)
(341,826)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.

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

A.L. TOZER LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2023
30 June 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
496,069
553,932
Tangible assets
13
1,597,033
1,578,230
Investment property
14
1,595,000
1,240,000
Investments
15
8,480
8,480
3,696,582
3,380,642
Current assets
Stocks
17
4,774,822
4,367,146
Debtors
18
3,715,296
2,437,309
Cash at bank and in hand
1,085,685
2,299,611
9,575,803
9,104,066
Creditors: amounts falling due within one year
19
(2,783,003)
(1,802,272)
Net current assets
6,792,800
7,301,794
Total assets less current liabilities
10,489,382
10,682,436
Creditors: amounts falling due after more than one year
20
(376,488)
(337,000)
Provisions for liabilities
Provisions
24
7,401
7,401
Deferred tax liability
23
468,651
452,929
(476,052)
(460,330)
Net assets
9,636,842
9,885,106
Capital and reserves
Called up share capital
28
210,000
210,000
Revaluation reserve
27
1,006,728
855,868
Other reserves
29
27,500
27,500
Distributable profit and loss reserves
8,392,614
8,791,738
Total equity
9,636,842
9,885,106
The financial statements were approved by the board of directors and authorised for issue on 29 March 2024 and are signed on its behalf by:
29 March 2024
Mr S J Winterbottom
Director
Company registration number 00391270 (England and Wales)
A.L. TOZER LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,222,555
1,183,449
Investment property
14
1,595,000
1,240,000
Investments
15
102
102
2,817,657
2,423,551
Current assets
Debtors falling due after more than one year
18
2,045,907
2,273,577
Debtors falling due within one year
18
83,216
71,857
2,129,123
2,345,434
Creditors: amounts falling due within one year
19
(830,622)
(526,318)
Net current assets
1,298,501
1,819,116
Total assets less current liabilities
4,116,158
4,242,667
Creditors: amounts falling due after more than one year
20
(3,000)
(337,000)
Provisions for liabilities
Deferred tax liability
23
319,684
289,942
(319,684)
(289,942)
Net assets
3,793,474
3,615,725
Capital and reserves
Called up share capital
28
210,000
210,000
Revaluation reserve
27
1,006,728
855,868
Other reserves
29
27,500
27,500
Distributable profit and loss reserves
2,549,246
2,522,357
Total equity
3,793,474
3,615,725

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 £26,889 (2022 - £37,600 loss).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

A.L. TOZER LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2023
30 June 2023
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 29 March 2024 and are signed on its behalf by:
29 March 2024
Mr S J Winterbottom
Director
Company registration number 00391270 (England and Wales)
A.L. TOZER LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
210,000
875,738
27,500
9,187,194
10,300,432
Year ended 30 June 2022:
Loss for the year
-
-
-
(301,575)
(301,575)
Other comprehensive income:
Revaluation of tangible fixed assets
-
60,000
-
-
60,000
Currency translation differences
-
-
-
(20,381)
(20,381)
Tax relating to other comprehensive income
-
(79,870)
-
-
0
(79,870)
Total comprehensive income
-
(19,870)
-
(321,956)
(341,826)
Dividends
11
-
-
-
(73,500)
(73,500)
Balance at 30 June 2022
210,000
855,868
27,500
8,791,738
9,885,106
Year ended 30 June 2023:
Loss for the year
-
-
-
(398,738)
(398,738)
Other comprehensive income:
Revaluation of tangible fixed assets
-
201,146
-
-
201,146
Currency translation differences
-
-
-
(386)
(386)
Tax relating to other comprehensive income
-
(50,286)
-
-
0
(50,286)
Total comprehensive income
-
150,860
-
(399,124)
(248,264)
Balance at 30 June 2023
210,000
1,006,728
27,500
8,392,614
9,636,842
A.L. TOZER LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2021
210,000
875,738
27,500
2,633,457
3,746,695
Year ended 30 June 2022:
Loss for the year
-
-
-
(37,600)
(37,600)
Other comprehensive income:
Revaluation of tangible fixed assets
-
60,000
-
-
60,000
Tax relating to other comprehensive income
-
(79,870)
-
-
0
(79,870)
Total comprehensive income
-
(19,870)
-
(37,600)
(57,470)
Dividends
11
-
-
-
(73,500)
(73,500)
Balance at 30 June 2022
210,000
855,868
27,500
2,522,357
3,615,725
Year ended 30 June 2023:
Profit for the year
-
-
-
26,889
26,889
Other comprehensive income:
Revaluation of tangible fixed assets
-
201,146
-
-
201,146
Tax relating to other comprehensive income
-
(50,286)
-
-
0
(50,286)
Total comprehensive income
-
150,860
-
26,889
177,749
Balance at 30 June 2023
210,000
1,006,728
27,500
2,549,246
3,793,474
A.L. TOZER LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
34
(1,027,314)
(52,217)
Interest paid
(55,455)
(78,206)
Income taxes paid
(121,553)
(16,756)
Net cash outflow from operating activities
(1,204,322)
(147,179)
Investing activities
Purchase of intangible assets
(32,551)
(43,531)
Purchase of tangible fixed assets
(214,917)
(135,928)
Proceeds from disposal of tangible fixed assets
18,749
-
Proceeds from disposal of investments
-
(22)
Interest received
299
195
Net cash used in investing activities
(228,420)
(179,286)
Financing activities
Repayment of bank loans
(183,018)
(254,565)
Payment of finance leases obligations
(19,835)
50,458
Dividends paid to equity shareholders
-
0
(73,500)
Net cash used in financing activities
(202,853)
(277,607)
Net decrease in cash and cash equivalents
(1,635,595)
(604,072)
Cash and cash equivalents at beginning of year
2,225,650
2,850,427
Effect of foreign exchange rates
-
0
(20,705)
Cash and cash equivalents at end of year
590,055
2,225,650
Relating to:
Cash at bank and in hand
1,085,685
2,299,611
Bank overdrafts included in creditors payable within one year
(495,630)
(73,961)
A.L. TOZER LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
35
345,975
(321,058)
Interest paid
(63,825)
(78,154)
Net cash inflow/(outflow) from operating activities
282,150
(399,212)
Investing activities
Purchase of tangible fixed assets
(142,390)
(101,933)
Proceeds from disposal of tangible fixed assets
18,749
-
0
Interest received
104,947
102,424
Net cash (used in)/generated from investing activities
(18,694)
491
Financing activities
Repayment of bank loans
(556,506)
(254,565)
Payment of finance leases obligations
(19,835)
50,458
Dividends paid to equity shareholders
-
(73,500)
Net cash used in financing activities
(576,341)
(277,607)
Net decrease in cash and cash equivalents
(312,885)
(676,328)
Cash and cash equivalents at beginning of year
(73,961)
602,367
Cash and cash equivalents at end of year
(386,846)
(73,961)
Relating to:
Bank overdrafts included in creditors payable within one year
(386,846)
(73,961)
A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 17 -
1
Accounting policies
Company information

A.L. Tozer Limited (“the company”) is a limited company domiciled and incorporated in England and Wales. The registered office is Pyports, Downside Bridge Road, Cobham, Surrey, KT11 3EH.

 

The group consists of A.L. Tozer 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. 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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company A.L. Tozer Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

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.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 18 -
1.5
Turnover

Turnover represents amounts receivable for goods dispatched during the year, net of VAT and trade discounts.

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
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
10% straight-line
1.8
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 are stated at cost or valuation less depreciation. 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
between 20 and 50 years, straight-line basis
Plant and machinery
10%, straight-line basis
Fixtures, fittings & equipment
10% and 33%, straight-line basis
Motor vehicles
25%, reducing-balance basis

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.

1.9
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Gains or losses arising from changes in the fair value of investment property are included in profit and loss for the period in which they arise.

A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 19 -
1.10
Fixed asset investments

In the parent company financial statements, investments in subsidiaries 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.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

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.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowances for obsolete and slow-moving items. 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.

Cost is calculated using the average cost method.

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.

1.13
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.

A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 20 -
1.14
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.

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.

A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 21 -
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.

Derecognition of financial liabilities

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

1.15
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.

1.16
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.

A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 22 -
1.17
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.18
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.

1.19
Retirement benefits

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

1.20
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.

1.21
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.22
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 23 -
1.23

Research and development

Research expenditure is written off to the profit and loss account in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.

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.

Operating lease commitments

During the year, the group has entered into lease agreements as a lessee to obtain use of motor vehicles and property, plant and equipment. The classification of such leases as operating or finance lease requires the company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet.

Stock valuation

Inventories are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include age at which stock lines lose commercial value, forecast sales of aged stock, reliability of latest germination test results, and the current competitive and economic environment.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Revaluation of investment properties

The group carries its investment properties at fair value, with changes in fair value being recognised in profit or loss. The Directors have determined fair value as at 30 June 2022, by reference to market evidence of transaction prices for similar properties. There is a degree of uncertainty in how comparable properties sold during the year are to the company's properties, however use of an independent valuation specialist is considered undue cost.

Insurance excess provision

Provision is made for the group's estimated liability to customer claims. This provision requires management’s best estimate of the costs that will be incurred based on past experience, and legislative and contractual requirements.

3
Turnover and other revenue

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

A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
3
Turnover and other revenue
(Continued)
- 24 -
2023
2022
£
£
Turnover analysed by geographical market
Africa
105,480
72,884
America
2,616,917
2,107,802
Asia
32,586
91,091
Europe
6,696,570
5,544,420
Oceania
165,664
142,883
United Kingdom
4,816,121
6,562,592
14,433,338
14,521,672
2023
2022
£
£
Other revenue
Interest income
299
195
Grants received
53,364
16,727
Rental income arising from investment properties
74,151
41,713
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange gains
(12,223)
(48,955)
Research and development costs
98,606
76,599
Government grants
(53,364)
(16,727)
Depreciation of owned tangible fixed assets
109,252
165,380
Profit on disposal of tangible fixed assets
(16,532)
-
Amortisation of intangible assets
90,414
85,347
Operating lease charges
158,377
78,939
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
45,100
44,000
A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 25 -
6
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
Production staff
38
26
1
7
Administrative staff
6
15
4
10
Breeding
41
34
39
29
Sales staff
19
10
9
-
Total
104
85
53
46

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,506,288
3,335,265
1,214,370
1,140,781
Social security costs
394,048
358,752
117,388
105,710
Pension costs
166,578
137,280
67,477
52,096
4,066,914
3,831,297
1,399,235
1,298,587
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
451,551
429,224
Company pension contributions to defined contribution schemes
29,650
17,959
481,201
447,183

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
140,469
139,443
Company pension contributions to defined contribution schemes
8,684
8,439
A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 26 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
63,825
63,511
Interest on invoice finance arrangements
-
0
14,380
Dividends on redeemable preference shares not classified as equity
-
0
315
63,825
78,206
Other finance costs:
Interest on finance leases and hire purchase contracts
85
-
Other interest
(8,455)
-
Total finance costs
55,455
78,206
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
299
195
10
Taxation
2023
2022
£
£
Current tax
Other tax reliefs
(469,856)
(355,002)
Foreign current tax on profits for the current period
113,195
16,756
Total current tax
(356,661)
(338,246)
Deferred tax
Origination and reversal of timing differences
(34,564)
18,953
Total tax credit
(391,225)
(319,293)
A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
10
Taxation
(Continued)
- 27 -

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

2023
2022
£
£
Loss before taxation
(789,963)
(620,868)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(150,093)
(117,965)
Tax effect of expenses that are not deductible in determining taxable profit
48,192
20,812
Tax effect of income not taxable in determining taxable profit
-
0
(4,095)
Tax effect of utilisation of tax losses not previously recognised
(58,588)
(22,217)
Unutilised tax losses carried forward
160,489
57,116
Effect of change in corporation tax rate
-
39,396
Depreciation on assets not qualifying for tax allowances
-
0
10,873
Research and development tax credit
(484,295)
(355,002)
Effect of overseas tax rates
-
0
4,021
Under/(over) provided in prior years
14,439
8,857
Foreign exchange differences
-
0
2,058
Foreign tax charges
113,195
-
0
130% Superdeduction
-
0
(5,849)
Losses sacrificed
-
0
42,702
Movements in deferred tax
(34,564)
-
Taxation credit
(391,225)
(319,293)

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
50,286
79,870
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
-
73,500
A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 28 -
12
Intangible fixed assets
Group
Software
£
Cost
At 1 July 2022
881,359
Additions
32,551
At 30 June 2023
913,910
Amortisation and impairment
At 1 July 2022
327,427
Amortisation charged for the year
90,414
At 30 June 2023
417,841
Carrying amount
At 30 June 2023
496,069
At 30 June 2022
553,932
The company had no intangible fixed assets at 30 June 2023 or 30 June 2022.

Bespoke software currently under development by the group has a carrying amount of £496,069 and is being amortised over its estimated useful life of 10 years.

A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 29 -
13
Tangible fixed assets
Group
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2022
1,982,020
1,775,405
223,024
66,813
4,047,262
Additions
-
0
191,697
23,220
-
0
214,917
Disposals
-
0
(58,149)
-
0
(10,322)
(68,471)
Transfer to investment property
(153,854)
-
0
-
0
-
0
(153,854)
Exchange adjustments
-
0
717
180
-
0
897
At 30 June 2023
1,828,166
1,909,670
246,424
56,491
4,040,751
Depreciation and impairment
At 1 July 2022
805,044
1,455,822
147,768
60,398
2,469,032
Depreciation charged in the year
(21,511)
97,321
31,692
1,750
109,252
Eliminated in respect of disposals
-
0
(55,932)
-
0
(10,322)
(66,254)
Transfer to investment property
(69,595)
-
0
-
0
-
0
(69,595)
Exchange adjustments
-
0
1,103
180
-
0
1,283
At 30 June 2023
713,938
1,498,314
179,640
51,826
2,443,718
Carrying amount
At 30 June 2023
1,114,228
411,356
66,784
4,665
1,597,033
At 30 June 2022
1,176,976
319,583
75,256
6,415
1,578,230
A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
13
Tangible fixed assets
(Continued)
- 30 -
Company
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2022
1,728,442
865,108
132,786
31,368
2,757,704
Additions
-
0
119,170
23,220
-
0
142,390
Disposals
-
0
(58,149)
-
0
(10,322)
(68,471)
Transfer to investment property
(153,854)
-
0
-
0
-
0
(153,854)
At 30 June 2023
1,574,588
926,129
156,006
21,046
2,677,769
Depreciation and impairment
At 1 July 2022
727,224
742,730
79,348
24,953
1,574,255
Depreciation charged in the year
(46,448)
39,869
21,637
1,750
16,808
Eliminated in respect of disposals
-
0
(55,932)
-
0
(10,322)
(66,254)
Transfer to investment property
(69,595)
-
0
-
0
-
0
(69,595)
At 30 June 2023
611,181
726,667
100,985
16,381
1,455,214
Carrying amount
At 30 June 2023
963,407
199,462
55,021
4,665
1,222,555
At 30 June 2022
1,001,218
122,378
53,438
6,415
1,183,449
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 July 2022
1,240,000
1,240,000
Transfers from owner-occupied property
153,854
153,854
Net gains or losses through fair value adjustments
201,146
201,146
At 30 June 2023
1,595,000
1,595,000

The fair value of the investment property has been arrived at on the basis of a valuation carried out at 30 June 2023 by the Directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 31 -
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
102
102
Unlisted investments
8,480
8,480
-
0
-
0
8,480
8,480
102
102
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 July 2022 and 30 June 2023
8,480
Carrying amount
At 30 June 2023
8,480
At 30 June 2022
8,480
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2022 and 30 June 2023
102
Carrying amount
At 30 June 2023
102
At 30 June 2022
102
16
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
Indirect
Tozer Seeds Limited
UK
Ordinary
100.00
-
Tozer Seeds America LLC
USA
Member
100.00
-
Plant Solutions Limited
UK
Member
100.00
-
Tozer Iberica SL
Spain
Ordinary
-
100.00
Tozer Seeds Netherlands B.V.
Netherlands
Ordinary
-
100.00

Indirectly held subsidiaries are held by Tozer Seeds Limited. All of the group's subsidiaries are consolidated in the group financial statements of the parent company A.L. Tozer Limited.

A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 32 -
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
92,386
-
-
-
Finished goods and goods for resale
4,682,436
4,367,146
-
0
-
0
4,774,822
4,367,146
-
-
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,300,978
1,473,563
9,935
2,372
Corporation tax recoverable
833,216
355,002
-
0
-
0
Amounts owed by group undertakings
-
-
945
788
Other debtors
323,715
472,293
49,844
39,629
Prepayments and accrued income
257,387
136,451
22,492
29,068
3,715,296
2,437,309
83,216
71,857
Amounts falling due after more than one year:
Amounts owed by group undertakings
-
-
2,045,907
2,273,577
Total debtors
3,715,296
2,437,309
2,129,123
2,345,434

 

19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
520,388
351,858
411,604
351,858
Obligations under finance leases
22
30,623
19,825
30,623
19,825
Trade creditors
1,724,259
1,126,907
98,519
80,600
Amounts owed to group undertakings
-
0
1
209,935
-
0
Other taxation and social security
113,106
87,153
33,906
33,261
Deferred income
25
27,467
7,396
-
0
-
0
Other creditors
197,953
81,925
9,550
11,181
Accruals and deferred income
169,207
127,207
36,485
29,593
2,783,003
1,802,272
830,622
526,318
A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 33 -
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
373,488
303,367
-
0
303,367
Obligations under finance leases
22
-
0
30,633
-
0
30,633
Other borrowings
21
3,000
3,000
3,000
3,000
376,488
337,000
3,000
337,000
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
398,246
581,264
24,758
581,264
Bank overdrafts
495,630
73,961
386,846
73,961
Preference shares
3,000
3,000
3,000
3,000
896,876
658,225
414,604
658,225
Payable within one year
520,388
351,858
411,604
351,858
Payable after one year
376,488
306,367
3,000
306,367

The bank loans and overdrafts are secured by fixed and charges over the assets of the company.

22
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
21,313
22,739
21,313
22,739
In two to five years
9,320
32,213
9,320
32,213
30,633
54,952
30,633
54,952
Less: future finance charges
(1,581)
(4,494)
(1,581)
(4,494)
29,052
50,458
29,052
50,458
Difference remains - please check
1,571
-
1,571
-

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. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 34 -
23
Deferred taxation

Deferred tax assets and liabilities are offset where the group or 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
Group
£
£
Accelerated capital allowances
213,754
208,196
Tax losses
(80,679)
(40,557)
Investment property
335,576
285,290
468,651
452,929
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
64,787
45,209
Tax losses
(80,679)
(40,557)
Investment property
335,576
285,290
319,684
289,942
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 July 2022
452,929
289,942
Credit to profit or loss
(34,564)
(20,544)
Charge to other comprehensive income
50,286
50,286
Liability at 30 June 2023
468,651
319,684
24
Provisions for liabilities
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Insurance excess provision
7,401
7,401
-
-
Deferred tax liabilities
23
468,651
452,929
319,684
289,942
476,052
460,330
319,684
289,942
A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
24
Provisions for liabilities
(Continued)
- 35 -
Movements on provisions apart from deferred tax liabilities:
Insurance excess provision
Group
£
At 1 July 2022 and 30 June 2023
7,401

The insurance excess provision represents management's best estimate of the company's liability to customer claims, based on past experience.

The legal fees provision represents management's best estimate of the company's liability to fees due to legal representatives in respect of the share disposal, based on the information available to them.

25
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
27,467
7,396
-
-
26
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
166,578
137,280

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.

27
Revaluation reserve

This reserve is used to record increases in the fair value of investment properties and decreases to the extent that such decrease relates to an increase on the same asset. The reserve also records any movements in deferred tax which relate to such fair value remeasurements.

 

Movements on the fair value of investment property passing through profit or loss are not taxable. On disposal, investment properties will be subject to capital gains.

28
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
210,000 Ordinary shares of £1 each
210,000
210,000
A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
28
Share capital
(Continued)
- 36 -
Preference share capital
Issued and fully paid
3,000 Preference shares of £1 each
3,000
3,000
Preference shares classified as liabilities
3,000
3,000

The company has one class of ordinary shares which carry equal voting rights, and no right to fixed income.

29
Other reserves

 

These are reserves provided for by the Articles of Association.

30
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
3,402
12,431
-
-
Between two and five years
31,765
47,778
-
-
35,167
60,209
-
-
31
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
679,758
588,504
32
Directors' transactions

Dividends totalling £0 (2022 - £36,939) were paid in the year in respect of shares held by the company's directors.

33
Controlling party

Dr P R Dawson is the ultimate controlling party by virtue of his directorship and shareholding.

A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 37 -
34
Cash absorbed by group operations
2023
2022
£
£
Loss for the year after tax
(398,738)
(301,575)
Adjustments for:
Taxation credited
(391,225)
(319,293)
Finance costs
55,455
78,206
Investment income
(299)
(195)
Gain on disposal of tangible fixed assets
(16,532)
-
Amortisation and impairment of intangible assets
90,414
85,347
Depreciation and impairment of tangible fixed assets
109,252
165,380
Decrease in provisions
-
(12,599)
Movements in working capital:
(Increase)/decrease in stocks
(407,676)
122,794
(Increase)/decrease in debtors
(799,773)
637,394
Increase/(decrease) in creditors
781,332
(515,072)
Increase in deferred income
20,071
7,396
Cash absorbed by operations
(957,719)
(52,217)
Difference
(69,595)
-
Per cash flow statement page
(1,027,314)
(52,217)
A.L. TOZER LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 38 -
35
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Profit/(loss) for the year after tax
26,889
(37,600)
Adjustments for:
Taxation credited
(20,544)
(6,474)
Finance costs
63,825
78,154
Investment income
(104,947)
(102,424)
Gain on disposal of tangible fixed assets
(16,532)
-
Depreciation and impairment of tangible fixed assets
16,808
72,049
Movements in working capital:
Decrease in stocks
-
8,493
Decrease/(increase) in debtors
216,311
(205,331)
Increase/(decrease) in creditors
233,760
(127,925)
Cash generated from/(absorbed by) operations
415,570
(321,058)
Difference
(69,595)
-
Per cash flow statement page
345,975
(321,058)
36
Analysis of changes in net funds - group
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
2,299,611
(1,213,926)
1,085,685
Bank overdrafts
(73,961)
(421,669)
(495,630)
2,225,650
(1,635,595)
590,055
Borrowings excluding overdrafts
(584,264)
183,018
(401,246)
Obligations under finance leases
(50,458)
19,835
(30,623)
1,590,928
(1,432,742)
158,186
37
Analysis of changes in net debt - company
1 July 2022
Cash flows
30 June 2023
£
£
£
Bank overdrafts
(73,961)
(312,885)
(386,846)
Borrowings excluding overdrafts
(584,264)
556,506
(27,758)
Obligations under finance leases
(50,458)
19,835
(30,623)
(708,683)
263,456
(445,227)
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