Company registration number 00595628 (England and Wales)
MANNERS FARMS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
MANNERS FARMS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
MANNERS FARMS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
1,509
2,011
Tangible assets
4
5,201,194
5,131,454
Investment property
5
317,361
317,361
5,520,064
5,450,826
Current assets
Stocks
932,462
1,198,829
Debtors
6
651,593
559,069
1,584,055
1,757,898
Creditors: amounts falling due within one year
7
(680,934)
(695,086)
Net current assets
903,121
1,062,812
Total assets less current liabilities
6,423,185
6,513,638
Creditors: amounts falling due after more than one year
8
(954,963)
(1,143,145)
Provisions for liabilities
(316,644)
(295,413)
Net assets
5,151,578
5,075,080
Capital and reserves
Called up share capital
20,500
20,500
Capital redemption reserve
13,500
13,500
Profit and loss reserves
5,117,578
5,041,080
Total equity
5,151,578
5,075,080
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their 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.
MANNERS FARMS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 4 April 2024 and are signed on its behalf by:
Mr M Manners
Director
Company Registration No. 00595628
MANNERS FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Manners Farms Limited is a private company limited by shares incorporated in England and Wales. The registered office is Thornton Hall, High Coniscliffe, Darlington, Co Durham, DL2 2NB.
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, modified to include the revaluation of investment properties at fair value.
The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover comprises the invoice value of goods supplied by the company, net of Value added tax.
The turnover of the company is primarily derived from the sale of grain and potatoes. Turnover is recognised on the delivery of goods to the customer.
Other operating income includes income from government grant receivables, hire charges, rents receivable and energy income.
1.3
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.
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:
Entitlements
9 years straight line
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold buildings
10% - 20% on reducing balance
Plant and machinery
10% - 25% reducing balance or 5% straight line
Freehold land is not depreciated.
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.
MANNERS FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
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.
1.6
Impairment of fixed assets
At each reporting period end date, the company 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).
1.7
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.
1.8
Financial instruments
Financial instruments are recognised in the company's statement of financial position 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.
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.
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
MANNERS FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.11
Employee benefits
The cost of employee benefits are recognised as a liability and an expense.
1.12
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 statement of financial position 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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.
1.13
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
5
5
MANNERS FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
3
Intangible fixed assets
Entitlements
£
Cost
At 1 January 2023 and 31 December 2023
4,521
Amortisation and impairment
At 1 January 2023
2,510
Amortisation charged for the year
502
At 31 December 2023
3,012
Carrying amount
At 31 December 2023
1,509
At 31 December 2022
2,011
4
Tangible fixed assets
Freehold buildings
Plant and machinery
Total
£
£
£
Cost
At 1 January 2023
4,742,972
2,091,936
6,834,908
Additions
243,287
243,287
Disposals
(13,409)
(12,500)
(25,909)
At 31 December 2023
4,729,563
2,322,723
7,052,286
Depreciation and impairment
At 1 January 2023
563,117
1,140,337
1,703,454
Depreciation charged in the year
19,983
136,059
156,042
Eliminated in respect of disposals
(8,404)
(8,404)
At 31 December 2023
583,100
1,267,992
1,851,092
Carrying amount
At 31 December 2023
4,146,463
1,054,731
5,201,194
At 31 December 2022
4,179,855
951,599
5,131,454
5
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
317,361
The investment property is valued at open market value. The valuation was determined by the directors by reference to market evidence of transaction prices for similar properties.
The directorss are of the opinion there has not been a movement in the valuation as above.
MANNERS FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
500,181
533,111
Other debtors
151,412
25,958
651,593
559,069
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
452,271
421,876
Trade creditors
45,299
3,614
Corporation tax
26,882
121,826
Other taxation and social security
7,228
9,478
Other creditors
149,254
138,292
680,934
695,086
Included within other creditors are amounts due on hire purchase contracts and finance leases totalling £60,000 (2022 - £78,000) which are secured on the assets they relate to.
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
954,963
1,083,145
Other creditors
60,000
954,963
1,143,145
The bank loan and overdraft are secured on a fixed and floating charge on the assets of the company.
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
410,963
507,145
MANNERS FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
9
Operating lease commitments
Lessee
Included in lease commitments below is a rental payable of £40,000 per annum which is due, in the opinion of the directors, for another 43 years. The amounts due in one year being £40,000 (2022 - £40,000), two to five years £160,000 (2022 - £160,000) and over five years £1,520,000 (2022 - £1,560,000).
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
91,167
91,167
Between two and five years
160,000
160,000
In over five years
1,520,000
1,560,000
1,771,167
1,811,167
10
Directors' transactions
Interest free loans have been granted by the company to its directors where the loan balances were less than £10,000, where directors loans were greater than £10,000 the HMRC approved rate of interest has been applied as follows:
All of the directors each has a loan from the company during the year. Advances to the directors amounted to £465,670 and repayments amounted to £440,540. The amount owing at the balance sheet date was £96,468 (2022 - £19,643).
Dividends totalling £0 (2022 - £0) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Director 1
-
8,095
42,912
(75,118)
(24,111)
Director 2
-
9,092
36,924
(75,735)
(29,719)
Director 3
-
2,456
19,878
(19,904)
2,430
Director 4
-
(2,135)
365,956
(269,783)
94,038
17,508
465,670
(440,540)
42,638
The loans were unsecured, interest charged only when above £10,000 at the HMRC approved rate and repayable on demand.