HOLLIES FARM DAIRY SERVICES LIMITED
Company registration number 11872539 (England and Wales)
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
PAGES FOR FILING WITH REGISTRAR
HOLLIES FARM DAIRY SERVICES LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
HOLLIES FARM DAIRY SERVICES LIMITED
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
345,318
300,517
Biological assets
4
400,157
457,025
745,475
757,542
Current assets
Stocks
61,275
56,270
Debtors
5
42,104
42,599
Cash at bank and in hand
70,882
87,406
174,261
186,275
Creditors: amounts falling due within one year
6
(208,580)
(362,355)
Net current liabilities
(34,319)
(176,080)
Total assets less current liabilities
711,156
581,462
Creditors: amounts falling due after more than one year
7
(82,978)
(252,617)
Provisions for liabilities
(72,701)
(42,907)
Net assets
555,477
285,938
Capital and reserves
Called up share capital
10
10
Profit and loss reserves
555,467
285,928
Total equity
555,477
285,938
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 July 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
HOLLIES FARM DAIRY SERVICES LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 8 April 2024
Mr R O Griffiths
Director
Company registration number 11872539 (England and Wales)
HOLLIES FARM DAIRY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2023
- 3 -
1
Accounting policies
Company information
Hollies Farm Dairy Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ivy House Farm, Malpas, Cheshire, SY14 7JN.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
10% straight line
Plant and equipment
12.5% reducing balance
Fixtures and fittings
12.5% reducing balance
Tractors
12.5% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Biological assets
Biological assets are recognised only when three recognition criteria have been fulfilled:
the entity has control over the asset as a result of past events;
it is probable that future economic benefits associated with the asset will flow to the entity; and
the fair value or cost of the asset can be measured reliably.
The company measures biological assets at cost less accumulated depreciation and accumulated impairment losses.
In respect of agricultural produce harvested from a biological asset, this is measured at the point of harvest at either;
lower of cost and estimated selling price less costs to complete and sell; or
fair value less costs to sell with any gain or loss arising on initial recognition of agricultural produce at fair value less costs to sell being included in profit or loss.
HOLLIES FARM DAIRY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 4 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Dairy
Not depreciated
Beef
Not depreciated
The directors consider that the cost value of livestock is not materially different to its residual value and therefore is not depreciated.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
HOLLIES FARM DAIRY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
1
Accounting policies
(Continued)
- 5 -
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
1.14
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
4
4
HOLLIES FARM DAIRY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 6 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Tractors
Total
£
£
£
£
Cost
At 1 August 2022
77,243
160,447
121,796
359,486
Additions
49,118
60,000
109,118
Disposals
(37,000)
(37,000)
At 31 July 2023
77,243
172,565
181,796
431,604
Depreciation and impairment
At 1 August 2022
15,154
28,960
14,855
58,969
Depreciation charged in the year
7,577
15,586
17,117
40,280
Eliminated in respect of disposals
(12,963)
(12,963)
At 31 July 2023
22,731
31,583
31,972
86,286
Carrying amount
At 31 July 2023
54,512
140,982
149,824
345,318
At 31 July 2022
62,089
131,487
106,941
300,517
4
Biological assets
Dairy
Beef
Total
£
£
£
Cost
At 1 August 2022
383,835
73,190
457,025
Additions - home reared
23,130
23,130
Additions - purchases
18,906
16,640
35,546
Reclassification
63,350
(63,350)
Disposals
(174,665)
(9,800)
(184,465)
Revaluation
(46,531)
115,452
68,921
At 31 July 2023
244,895
155,262
400,157
Depreciation and impairment
At 1 August 2022 and 31 July 2023
Carrying amount
At 31 July 2023
244,895
155,262
400,157
At 31 July 2022
383,835
73,190
457,025
HOLLIES FARM DAIRY SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2023
- 7 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,267
19,706
Other debtors
39,837
22,893
42,104
42,599
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,400
62,445
Trade creditors
61,425
112,578
Taxation and social security
48,477
27,356
Other creditors
88,278
159,976
208,580
362,355
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
18,581
179,740
Other creditors
64,397
72,877
82,978
252,617
Bank borrowings are secured with fixed and floating charges.
8
Parent company
The parent company of Hollies Farm Dairy Services Limited is Robat Griffiths Cyf. The registered office of this company is also Ivy House Farm, Malpas, Cheshire, SY14 7JN. Consolidated accounts are not required to be prepared as the parent and the group as a whole qualify as small company under section 383 of the Companies Act 2006.