REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
FOR |
OLIVER AGRICULTURE LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2023 |
FOR |
OLIVER AGRICULTURE LIMITED |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 30 SEPTEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
OLIVER AGRICULTURE LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 SEPTEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
260 - 270 Butterfield |
Great Marlings |
Luton |
Bedfordshire |
LU2 8DL |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
STRATEGIC REPORT |
for the Year Ended 30 SEPTEMBER 2023 |
The directors present their strategic report for the year ended 30 September 2023. |
PRINCIPAL ACTIVITY AND REVIEW OF THE BUSINESS |
The principal activities of the company in the year under review were sales, service and parts for agricultural machinery and occasional short-term hire of machines, primarily direct into the agricultural market. |
Key performance indicators |
Management use a range of performance measures to monitor and manage the business. The key financial performance indicators are set out below: |
- | sales turnover; |
- | gross margin; |
- | assets employed; |
- | balance sheet strength; and |
- | shareholder asset cover. |
Development and financial performance during the year |
The company trades in a significant geographical area covering the counties of Bedfordshire, Hertfordshire, Buckinghamshire, Oxfordshire, Berkshire, Hampshire, Surrey, West Sussex, and the Isle of Wight. |
The main suppliers tend to be market leading brands, well known in the agricultural market and their specialist market sectors, who are recognised for their high level of service support within this sector which is synonymous with our own philosophy as a family business built on good service which can trace its roots back to 1823. |
The major suppliers include many global brands such as CLAAS, Horsch, Leeb, Abbey, Bunning, Dalbo, KRM, Maschio, Opico, Richard Western, Samson, and Spearhead. |
There was a general improvement in demand from our customer base as agriculture continues to adapt to the new regenerative farming practices and drive towards zero carbon. The expanded area has created a more diverse mix of farming customers allowing us to increase sales of grassland and forage equipment and an increased aftersales opportunity. The factors above have given us the result of a net profit before taxation for the year of £1,411,977 which is an increase of 34% from the prior year when we posted a pre-tax profit of £1,077,353. This increase is due in part to the receipt of carryover late delivery combines. The marketplace for agricultural machinery continues to be very competitive, but we have been able to replicate our historical success across the expanded trading area, forging new customer relationships. |
PRINCIPAL RISKS AND UNCERTAINTIES |
There are always risks associated with running a business. These must be assessed by the management within the business and mitigated where we have an element of control. The company has continued to grow during this period. With good strategy, management, and cost control we have continued to grow the balance sheet whilst retaining a healthy level of shareholder funds in the business. |
The directors identify the key business risks and uncertainties to be mainly external and these include bad weather, customer confidence in their own future profitability with increased cost of funding for our customers due to the continued Global issues and extra capital employed. |
Competition will always be a factor with other retailers under pressure from their own suppliers to grow market share. |
Global supply issues because of the Ukrainian conflict and continued COVID problems in China can be considered a potential problem which has included some delays in deliveries both of sold and unsold products, however by working closely with our key suppliers this risk has been minimised. We have consciously held more stock of parts and machines to mitigate this risk and ensure that our customers operations have not been adversely affected. As a result of the necessity to hold higher levels of stock for both machines and spare parts there is a general danger of overstocking in the wider industry, both at dealer and wholesale level. |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
STRATEGIC REPORT |
for the Year Ended 30 SEPTEMBER 2023 |
FINANCIAL POSITION AT REPORTING DATE |
The Balance sheet remains very strong with closing shareholder funds of almost £5.2Mn and have maintained a consistent Profit & Loss account of just over £1.4Mn earnings before tax on 30th September 2023. |
PRINCIPAL RISKS AND UNCERTAINTIES - continued |
Competitor pressure and level of demand |
- | the market in which the company operates is relatively competitive and therefore such pressure could result in the loss of sales to competitors. The directors manage this risk by providing quality products from leading market brands and maintaining strong relationships with its customers many of whom have utilised the company's products and services over family generations. The balance of supply and demand has shifted since the prior year and could result in heavier discounts becoming more prevalent. |
Reliance on key suppliers |
- | the company's activities could expose it to over reliance on certain suppliers. The directors manage this risk by ensuring the sale of market leading brands which include a range of suppliers who provide complimentary products to one another. The directors are constantly seeking to find potential additional suppliers to add products to our portfolio. |
Loss of key personel |
- | this would pose potential operational difficulties for the company. The directors manage this risk by seeking to ensure that key personnel are managed to ensure good performance is recognised and fully rewarded, along with ensuring good succession planning supported by appropriate training. This offers career progression for staff which assists to retain employees with potential to become management of the future. |
Bad weather affecting customer confidence |
- | the weather can affect the ability of the company to sell agricultural machinery. The directors manage this risk by ensuring that seasonal stock levels are managed appropriately and by having an increased focus on growing the aftersales aspect of the business. The increased incidence of extreme weather events due to climate change can have an impact on our customers' risk of crop failure and subsequent reduction in funds to invest in machinery replacement. |
After effects of COVID-19 |
- | There remains a product supply risk should an outbreak cause any supplier manufacturing facility to temporarily pause production. However, we have mitigated this risk by increasing our stock levels and placing orders with our suppliers earlier to ensure supply is not interrupted and to ensure we can continue to meet our customer's needs. This needs careful management to avoid over stocking and the added burden of increased stocking charges due to the increase in interest rates. |
Post BREXIT effects |
- | fluctuation in currency and interest rates, and possible increase in costs from inflation and from both tariffs and increased administration burden including phytosanitary compliance. With the phase out of EU direct farm support and the transition to the UK Government ELMS (Environmental Land Management Scheme), there is the potential for a reduction in combinable acreage which could affect sales volume in the longer term. Although investment in the innovative products that we supply can help our customers towards reducing their carbon impact and ELMS compliance. |
Global unrest | - | disruption of supply chains due to conflict in Ukraine and the effect of increased energy costs on our operating costs and to the products we sell. |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
STRATEGIC REPORT |
for the Year Ended 30 SEPTEMBER 2023 |
FUTURE OUTLOOK |
The outlook continues to be buoyant with a strong start to the 2024 business year. Despite the recent wet weather, our customers have remained confident with better levels of autumn drilled crops than the national average resulting in a successful early out of season order campaign. |
We have taken delivery of all the prior year carry over orders as supplier despatches continued to improve. Our Budget is forecasting at least a similar outcome to the 2022-2023 trading year. We must be cognisant to the market volatility and maintain strong stock & credit control, whilst being mindful of the rise in interest and stocking charges and their impact on gross margins. |
ON BEHALF OF THE BOARD: |
11 April 2024 |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 SEPTEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 30 September 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 September 2023 will be £350,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
Treasury operations and financial instruments |
The company operates within the group's centralised treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company's activities. |
The company's principal financial instruments include bank overdrafts, stocking finance agreements, hire purchase agreements and borrowing from the parent company, the main purpose of which are to provide working capital for the company's operations. In addition, the company has various other financial assets and liabilities such as trade receivable and trade payables arising directly from its operations. |
Liquidity Risk |
The group manages its cash and borrowing requirements centrally to maximise interest income and minimise interest expense, whilst ensuring that the company has sufficient liquid resources to meet the operating needs of its business. |
Credit Risk |
All customers who wish to trade on credit terms are subject to credit verification procedures. Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
REPORT OF THE DIRECTORS |
for the Year Ended 30 SEPTEMBER 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OLIVER AGRICULTURE LIMITED |
Opinion |
We have audited the financial statements of Oliver Agriculture Limited (the 'company') for the year ended 30 September 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 September 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OLIVER AGRICULTURE LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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 company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- enquiry of management and those charged with governance around actual and potential litigation and claims; |
- enquiry of entity staff and the board of directors to identify any instances of non-compliance with laws and regulations; |
- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business; and |
- auditing the risk of management override of controls, including through testing journal entries and other means. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OLIVER AGRICULTURE LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
260 - 270 Butterfield |
Great Marlings |
Luton |
Bedfordshire |
LU2 8DL |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the Year Ended 30 SEPTEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
2,172,668 | 1,936,722 |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
1,432,489 | 1,072,947 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
BALANCE SHEET |
30 SEPTEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 30 SEPTEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 October 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 September 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2023 |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 30 SEPTEMBER 2023 |
1. | STATUTORY INFORMATION |
Oliver Agriculture Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c). |
In taking advantage of these exemptions as a subsidiary undertaking the company has provided details of its parent undertaking in Note 21. |
Significant judgements and estimates |
The preparation of financial statements requires management to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from the estimated outcomes. |
In the course of preparing the financial statements, management has made a judgement in respect of determining the net realisable value of stock held by the company at the balance sheet date. Factors that have been considered when calculating the value include (but are not restricted to) the selling environment, stock condition and amount of time stock items are held by the company. |
Due to the nature of the industry items of stock held by the company at the balance sheet date may be held for a significant amount of time and so increase the level of judgement required by management to value that stock. |
Turnover |
Turnover is measured at the fair value of consideration received (or receivable), net of discounts and value |
added taxes. |
Turnover from the sale of agricultural and groundcare machinery is recognised in full at the time of delivery to the customer, when it is considered significant rights and obligations of ownership have been transferred. |
In respect of contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced at the year end, which is determined by reference to the stage of completion. |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Long leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
All fixed assets are initially recognised at cost. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
The company has chosen to adopt Section 11 and 12 of FRS 102 in respect of financial instruments. |
Basic financial assets and liabilities, including trade and other debtors, bank balances, trade and other creditors are recognised at amortised cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised as the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences arising from the movement in foreign currency exchange rate between the date of the transaction and payment are taken into account in the operating result. |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
3. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Europe |
Rest of world | 91,493 | 568,524 |
5. | EMPLOYEES AND DIRECTORS |
There were no staff costs for the year ended 30 September 2023 nor for the year ended 30 September 2022. |
The average number of employees during the year was NIL (2022 - NIL). |
2023 | 2022 |
£ | £ |
Directors' remuneration |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Hire purchase |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Effect of change in tax rate | (53,226 | ) | 63,125 |
Total tax charge | 315,681 | 231,781 |
From 1 April 2023 the effective rate of corporation tax was increased to 25%. |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Final |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Long | Plant and | and | Motor |
leasehold | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 October 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 September 2023 |
DEPRECIATION |
At 1 October 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 September 2023 |
NET BOOK VALUE |
At 30 September 2023 |
At 30 September 2022 |
The net book value of tangible fixed assets includes £ 644,825 (2022 - £ 663,138 ) in respect of assets held under hire purchase contracts. |
11. | STOCKS |
2023 | 2022 |
£ | £ |
Parts stock |
Wholegoods stock | 9,782,352 | 7,793,335 |
An impairment loss of £17,639 was recognised in cost of sales against stock during the year (2022 - £346,997). |
The net book value of stock includes £3,871,437 in respect of assets held under stocking plan contracts (2022 - £4,046,443). |
12. | DEBTORS LESS THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts recoverable on contract |
Prepayments and accrued income |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 16) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdrafts |
Hire purchase contracts | 499,068 | 568,977 |
Trade creditors | 4,402,492 | 5,022,687 |
The hire purchase contracts are secured over the assets to which they relate. The trade creditors are secured on stock. The bank overdraft is secured against land held by the ultimate parent company, ATO Holdings Limited. |
18. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 253,943 | 263,022 |
Deferred |
tax |
£ |
Balance at 1 October 2022 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 30 September 2023 |
The deferred tax liability expected to reverse next year is £74,000 relating to the reversal of existing timing differences on capital allowances. |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 400,000 | 400,000 |
Ordinary shares have full voting rights and full entitlement to participate in dividends and capital distributions. |
20. | CONTINGENT LIABILITIES |
The company has entered into a Memorandum Accounts Statement System (MASS) agreement with Barclays Bank Plc for bank facility purposes with the ultimate parent undertaking ATO Holdings Limited and Oliver Landpower Limited, such that each participant is jointly and severally liable as a principal debtor for all indebtedness owing to the bank on the MASS account. |
21. | RELATED PARTY DISCLOSURES |
Oliver AG 2010 Limited is the parent company. ATO Holdings Limited is the ultimate parent company of the group in whose consolidated financial statements the financial statements of this company are consolidated. The address of the registered office of ATO Holdings Limited is Wandon End Works, Wandon End, Luton, Beds, LU2 8NY. Group accounts can be obtained from this address. |
OLIVER AGRICULTURE LIMITED (REGISTERED NUMBER: 06612313) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 SEPTEMBER 2023 |
RELATED PARTY DISCLOSURES - continued |
2023 | 2022 |
£ | £ |
Management charge |
Rent | 60,000 | 60,000 |
Amount due to related party |
2023 | 2022 |
£ | £ |
Sales |
Purchases |
Labour costs | 3,924,582 | 3,608,860 |
Amount due from related party |
Amount due to related party |
The related party involved with the sales and purchases transactions have not recognised any profit or loss on the transaction. |
The balances between related parties are due on demand and not secured. |
During the year, a total of key management personnel compensation of £ |
The directors are considered to be key management and are paid by other group undertakings which is recharged to the company. |