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REGISTRAR OF COMPANIES

Registration number: 13460812

Holmes Mill Dairy Limited

Unaudited Financial Statements

30 June 2023

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Holmes Mill Dairy Limited

Contents

Accountants' Report

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

4

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Holmes Mill Dairy Limited
for the Year Ended 30 June 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Holmes Mill Dairy Limited for the year ended 30 June 2023 as set out on pages 2 to 11 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Holmes Mill Dairy Limited, as a body, in accordance with the terms of our engagement letter dated 10 October 2023. Our work has been undertaken solely to prepare for your approval the accounts of Holmes Mill Dairy Limited and state those matters that we have agreed to state to the Board of Directors of Holmes Mill Dairy Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Holmes Mill Dairy Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Holmes Mill Dairy Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Holmes Mill Dairy Limited. You consider that Holmes Mill Dairy Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Holmes Mill Dairy Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.



Dodd & Co Limited
Chartered Accountants
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

27 February 2024

 

Holmes Mill Dairy Limited

(Registration number: 13460812)
Balance Sheet as at 30 June 2023

Note

30 June 2023
£

30 June 2022
£

Fixed assets

 

Intangible assets

4

562

1,687

Tangible assets

5

1,185,831

1,070,650

Other financial assets

6

213,064

194,102

 

1,399,457

1,266,439

Current assets

 

Stocks

1,485,910

1,667,995

Debtors

7

215,142

224,761

Cash at bank and in hand

 

-

148,412

 

1,701,052

2,041,168

Creditors: Amounts falling due within one year

8

(2,651,510)

(3,095,573)

Net current liabilities

 

(950,458)

(1,054,405)

Total assets less current liabilities

 

448,999

212,034

Creditors: Amounts falling due after more than one year

8

(65,212)

(59,223)

Provisions for liabilities

(272,906)

(65,153)

Net assets

 

110,881

87,658

Capital and reserves

 

Allotted, called up and fully paid share capital

100

100

Profit and loss account

110,781

87,558

Total equity

 

110,881

87,658

 

Holmes Mill Dairy Limited

(Registration number: 13460812)
Balance Sheet as at 30 June 2023 (continued)

For the financial year ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 27 February 2024 and signed on its behalf by:
 

.........................................

I Hodgson

Director

 

Holmes Mill Dairy Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The principal place of business is:
Holme Eden House
Burgh By Sands
CARLISLE
CA5 6EH

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The company has net current liabilities at 30 June 2023 and meets its day to day working capital requirements through financial support from its directors by way of short term loans. On the basis of this support, the directors consider it appropriate to prepare the financial statements on the going concern basis.

However, should the company not have the support of its directors, and therefore be unable to continue trading, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for any further liabilities which might arise, and to reclassify fixed assets and long term liabilities as current assets and current liabilities.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Government grants

Government grants such as the basic payment scheme are included in the profit and loss account when all the necessary conditions for receipt have been met.

Basic payment scheme amortisation

 

Holmes Mill Dairy Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

The amount paid in connection with the purchase of the basic payment scheme entitlement is being amortised over the useful economic life of that entitlement. In addition, an annual impairment review is being performed.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

Not depreciated and 5% straight line

Plant and equipment

15% reducing balance and 3 years straight line

Motor vehicles

20% reducing balance

Land and buildings relate to tenants improvements on land leased by the company from the shareholders. As the long term intention is for the farming operation to continue, it is deemed a true and fair view to depreciate the assets at 5% straight line over their useful economic life, and not the duration of the lease.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Holmes Mill Dairy Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

Trade debtors

Trade debtors are amounts due from customers for the sale of goods or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Trading stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. The cost of livestock represents the purchase cost plus any additional costs of rearing the animal. Net realisable value is based on selling price less anticipated selling costs. Crop stock is valued at fair value less any anticipated costs to sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method where due after more than one year.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Holmes Mill Dairy Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Equity shares and debt securities
 Recognition and measurement
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

 Impairment
For instruments measured at cost less impairment the impairment is the difference between the assets' carrying amount and the best estimate the entity would receive for the asset if it were sold at the reporting date.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 15 (2022 - 10).

 

Holmes Mill Dairy Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

4

Intangible assets

Basic payment scheme
 £

Total
£

Cost or valuation

At 1 July 2022

2,250

2,250

At 30 June 2023

2,250

2,250

Amortisation

At 1 July 2022

563

563

Amortisation charge

1,125

1,125

At 30 June 2023

1,688

1,688

Carrying amount

At 30 June 2023

562

562

At 30 June 2022

1,687

1,687

5

Tangible assets

Land and buildings
£

Plant and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2022

-

1,143,588

29,943

1,173,531

Additions

49,223

256,756

-

305,979

Disposals

-

(17,034)

-

(17,034)

At 30 June 2023

49,223

1,383,310

29,943

1,462,476

Depreciation

At 1 July 2022

-

102,382

499

102,881

Charge for the year

-

169,578

5,889

175,467

Eliminated on disposal

-

(1,703)

-

(1,703)

At 30 June 2023

-

270,257

6,388

276,645

Carrying amount

At 30 June 2023

49,223

1,113,053

23,555

1,185,831

At 30 June 2022

-

1,041,206

29,444

1,070,650

 

Holmes Mill Dairy Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

6

Other financial assets (current and non-current)

30 June 2023
£

30 June 2022
£

Non-current financial assets

Financial assets at cost less impairment

213,064

194,102

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 July 2022

194,102

194,102

Additions

18,962

18,962

At 30 June 2023

213,064

213,064

Carrying amount

At 30 June 2023

213,064

213,064

At 30 June 2022

194,102

194,102

7

Debtors

30 June 2023
£

30 June 2022
£

Trade debtors

79,097

111,053

Other debtors

136,045

113,708

215,142

224,761

 

Holmes Mill Dairy Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

8

Creditors

Note

30 June 2023
£

30 June 2022
£

Due within one year

 

Loans and borrowings

9

2,225,382

2,826,424

Trade creditors

 

376,474

249,905

Taxation and social security

 

5,549

2,378

Corporation tax liability

 

30,103

10,204

Other creditors

 

14,002

6,662

 

2,651,510

3,095,573

Due after one year

 

Loans and borrowings

9

52,391

44,140

Other creditors

 

12,821

15,083

 

65,212

59,223

9

Loans and borrowings

30 June 2023
£

30 June 2022
£

Current loans and borrowings

Bank overdrafts

18,204

-

Finance lease liabilities

44,683

38,578

Other borrowings

2,162,495

2,787,846

2,225,382

2,826,424

Current loans and borrowings includes the following liabilities, on which security has been given by the company:

30 June 2023
£

30 June 2022
£

Bank overdrafts

18,204

-

Finance lease liabilities

44,683

38,578

62,887

38,578

Bank overdrafts are secured by a fixed and floating charge over company assets.

Finance lease liabilities are secured on the assets to which they relate.

 

Holmes Mill Dairy Limited

Notes to the Unaudited Financial Statements for the Year Ended 30 June 2023 (continued)

30 June 2023
£

30 June 2022
£

Non-current loans and borrowings

Finance lease liabilities

52,391

44,140

Non-current loans and borrowings includes the following liabilities, on which security has been given by the company:

30 June 2023
£

30 June 2022
£

Finance lease liabilities

52,391

44,140

Finance lease liabilities are secured on the assets to which they relate.