Company registration number 05142289 (England and Wales)
PEDDARS PIGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PEDDARS PIGS LIMITED
COMPANY INFORMATION
Directors
Mr A V Tomson
Mr T A Cullum
Secretary
Mrs A C Baldwin
Company number
05142289
Registered office
Dalton House
60 Winsor Avenue
London
SW19 2RR
Auditor
Waveney Accountants Limited
T/as Newman & Co
Chartered Accountants
4b Church Street
Diss
Norfolk
IP22 4DD
Business address
The Mill
Mill Road
Long Stratton
NORWICH
Norfolk
NR15 2RU
PEDDARS PIGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' responsibilities statement
3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 30
Detailed trading and profit and loss account
PEDDARS PIGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -
The directors present the strategic report for the year ended 31 May 2023.
Review of the business
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
As a breeder of pigs for the food industry, we have continued to improve with further herd acquisitions in the year providing the additional sales volumes.
After two challenging years, the directors have started to see an improvement in the pig industry towards the end of the financial year 2023, with abattoirs operating at full capacity, which has cleared the back log of pigs on farms, cereal prices have stabilised following the invasion of Ukraine and there has been a significant increase in the Standard Pig Price (SPP) to match the rising costs of inputs. The directors remain cautious but overall they are confident about the future prospects of the business.
Key performance indicators
We undertake the comparison of key performance indicators as part of our internal management procedures. Each individual farm is monitored comparing pig movements, sales and profits. The methods used in the farms that excel are then used to enhance the performance of the other farms.
The key performance data in relation to pig breeding, excluding fuel costs, the company's principal activity is as follows:
PEDDARS PIGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
Principal risks and uncertainties
As for many businesses of our size within the pig breeding industry we are faced with many risks.
Feed prices
Prices are subject to fluctuations which are beyond the company's control. The company seeks to minimise the impact of the fluctuations by managing the best use of its resources to ensure that the correct type of feed is reaching animals at the appropriate stage of growth.
Food standards regulation
The company invests in compliance and has strict policies to ensure it adheres diligently to the required standards. Effective communication within the company is essential to ensure that the comprehensive policies are implemented by its site teams.
Competition from abroad
The company manages this risk by managing its efficiency and maintaining strong relationships with its customers.
Pandemic disease for livestock
The company's pig production is spread across a number of sites so that risks of infection are limited in the event of a UK outbreak.
Recruitment and retention of workforce
The company invests in competitive salary and training packages to attract and retain the best staff.
Covid 19
The company cannot completely eliminate the risk that its suppliers, immediate customers and final market will be affected as the pandemic continues. The company is following government recommendations for protecting its staff and other visitors to its sites.
Promoting the success of the company
Section 172 of the Companies Act 2006 states that a director of a company must act in a way it considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:
a. The likely consequences of any decision in the long term;
b. The interests of the company's employees;
c. The need to foster the company's business relationships with suppliers, customers and others;
d. The impact of the company's operations on the community and the environment;
e. The desirability of the company's maintaining a reputation for higher standards of business conduct; and
f. The need to act fairly as between members of the company.
The directors continually assess current performance and the opportunities for business in the future. Long term plans are developed to ensure that the company is moving in the right direction.
The directors understand that the company's long-term growth and success are dependent on successful engagement with stakeholders and value interaction to ensure that stakeholders' views are considered in the decision making process.
Mr A V Tomson
Director
18 January 2024
PEDDARS PIGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
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 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
PEDDARS PIGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 4 -
The directors present their annual report and financial statements for the year ended 31 May 2023.
Principal activities
The principal activity of the company continued to be that of pig rearing for the food industry.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £4,000 (2022 - £4,000). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A V Tomson
Mr T A Cullum
Financial instruments
Liquidity risk
The company's bank position is monitored by the Board to ensure that the company has sufficient resources to meet its daily needs as well as the funds required for capital investment.
Interest rate risk
The Board manages the company's exposure to interest rate risk. The company's borrowings are secured on its property, allowing the company to achieve lower interest rates than unsecured borrowing.
Credit risk
Sales are all made on credit terms, the majority of which are settled within 30 days. The incidence of bad debts is low.
Research and development
The company has an ongoing commitment to its research programme into pig feed development and negation of antibiotics.
Business relationships
The directors have regular contact with customers and suppliers to share future plans, and gain feedback on the working relationships and what, if anything, can be improved. The management hold regular management meetings with staff to share ideas and promote engagement.
Future developments
The company is continuing to seek opportunities to expand its pig production units and manage costs.
Energy and carbon report
2023
2022
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
3,997,458
4,166,144
PEDDARS PIGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 5 -
2023
2022
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Fuel consumed for owned transport
929.56
1,001.95
929.56
1,001.95
Scope 2 - indirect emissions
- Electricity purchased
47.54
29.72
Total gross emissions
977.10
1,031.67
Intensity ratio
Tonnes CO2e per employee
16.29
17.2
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2023 UK Government’s Conversion Factors for Company Reporting.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee.
Measures taken to improve energy efficiency
The directors are investigating means of improving energy efficiency and cutting carbon emissions, in particular the directors wish to promote eating locally sourced meat thereby decreasing food mileage. Feed troughs have been installed for the pigs to cut down food waste and the company has policies to promote the updating of company vehicles to more fuel efficient and environmentally friendly models, wherever practical. All the company's new machinery is Euro VI compliant.
The company has installed ground source heat pumps for its head office and uses LED lighting.
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
Mr A V Tomson
Director
18 January 2024
PEDDARS PIGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PEDDARS PIGS LIMITED
- 6 -
Opinion
We have audited the financial statements of Peddars Pigs Limited (the 'company') for the year ended 31 May 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:
give a true and fair view of the state of the company's affairs as at 31 May 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.
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 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
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.
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.
However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the company's ability to continue as a going concern.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
PEDDARS PIGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PEDDARS PIGS LIMITED
- 7 -
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 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:
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 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 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 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We have considered the field in which the company operates and identified the areas most likely to have a direct material impact on the financial statements as compliance with UK tax legislation, UK accounting standards and the Companies Act 2006. In addition, we have considered the provisions of other laws and regulations which, whilst not having a direct impact on the financial statements, are fundamental to the company's ability to operate including employment law, health and safety regulation and other legislation specific to the industry in which the company operates (including animal welfare legislation).
Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included:
- Discussions with management, including those charged with governance, regarding any known or suspected instances of non-compliance with laws and regulation and actual and potential litigation and claims.
- Reviewing legal and professional fees to identify any matters where the company engaged lawyers during the year.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Challenging assumptions and judgements made by management in their significant accounting estimates, particularly around year end livestock values.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
PEDDARS PIGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PEDDARS PIGS LIMITED
- 8 -
Due to 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 transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves deliberate concealment, forgery, collusion, omission or misrepresentation.
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.
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.
Leslie Newman FCA (Senior Statutory Auditor)
For and on behalf of Waveney Accountants Limited
27 January 2024
T/as Newman & Co
Chartered Accountants
4b Church Street
Diss
Norfolk
IP22 4DD
PEDDARS PIGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
60,058,415
44,278,942
Cost of sales
(54,830,564)
(40,694,337)
Gross profit
5,227,851
3,584,605
Administrative expenses
(4,218,721)
(3,994,262)
Other operating income
138,831
87,682
Operating profit/(loss)
6
1,147,961
(321,975)
Interest receivable and similar income
8
266
Interest payable and similar expenses
9
(713,312)
(316,779)
Profit/(loss) before taxation
434,649
(638,488)
Tax on profit/(loss)
10
828,667
799,008
Profit for the financial year
1,263,316
160,520
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PEDDARS PIGS LIMITED
BALANCE SHEET
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
12
3,293
5,713
Tangible assets
13
15,130,785
15,360,153
Investment property
14
100,000
100,000
Investments
16
99,100
99,100
15,333,178
15,564,966
Current assets
Stocks
17
18,407,233
16,957,654
Debtors
18
6,351,258
6,345,366
Cash at bank and in hand
2,134
3,406
24,760,625
23,306,426
Creditors: amounts falling due within one year
19
(16,052,635)
(15,445,229)
Net current assets
8,707,990
7,861,197
Total assets less current liabilities
24,041,168
23,426,163
Creditors: amounts falling due after more than one year
20
(8,453,154)
(9,097,465)
Net assets
15,588,014
14,328,698
Capital and reserves
Called up share capital
25
100
100
Profit and loss reserves
26
15,587,914
14,328,598
Total equity
15,588,014
14,328,698
The financial statements were approved by the board of directors and authorised for issue on 18 January 2024 and are signed on its behalf by:
Mr A V Tomson
Mr T A Cullum
Director
Director
Company registration number 05142289 (England and Wales)
PEDDARS PIGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 June 2021
100
14,172,078
14,172,178
Year ended 31 May 2022:
Profit and total comprehensive income
-
160,520
160,520
Dividends
11
-
(4,000)
(4,000)
Balance at 31 May 2022
100
14,328,598
14,328,698
Year ended 31 May 2023:
Profit and total comprehensive income
-
1,263,316
1,263,316
Dividends
11
-
(4,000)
(4,000)
Balance at 31 May 2023
100
15,587,914
15,588,014
PEDDARS PIGS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
31
(2,440,007)
(550,800)
Interest paid
(680,011)
(331,605)
Income taxes refunded
738,019
598,710
Net cash outflow from operating activities
(2,381,999)
(283,695)
Investing activities
Purchase of tangible fixed assets
(125,949)
(45,695)
Proceeds on disposal of tangible fixed assets
88,676
213,533
Purchase of subsidiaries
(100)
Other investments and loans made
(94,128)
(291,760)
Proceeds from other investments and loans
1,004,000
438,405
Dividends received
266
Net cash generated from investing activities
872,599
314,649
Financing activities
Proceeds of new bank loans
10,031,138
Repayment of bank loans
(726,217)
(10,187,316)
Payment of finance leases obligations
(236,705)
(443,057)
Dividends paid
(4,000)
(4,000)
Net cash used in financing activities
(966,922)
(603,235)
Net decrease in cash and cash equivalents
(2,476,322)
(572,281)
Cash and cash equivalents at beginning of year
(2,226,446)
(1,654,165)
Cash and cash equivalents at end of year
(4,702,768)
(2,226,446)
Relating to:
Cash at bank and in hand
2,134
3,406
Bank overdrafts included in creditors payable within one year
(4,704,902)
(2,229,852)
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 13 -
1
Accounting policies
Company information
Peddars Pigs Limited is a private company limited by shares incorporated in England and Wales. The registered office is Dalton House, 60 Winsor Avenue, London, SW19 2RR.
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 investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company is exempt from the requirement to prepare consolidated financial statements under section 402 of the Act on the basis that it has no subsidiaries which are required to be included in group accounts.
1.2
Going concern
These financial statements are prepared on the going concern basis. true
The directors have considered the company's position at the time of signing the financial statements and have taken account of the most recent management information, including forecasts for the remainder of the current financial year and access to borrowings.
The directors have concluded that they have a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future, being at least twelve months from the date of approval of these financial statements.
1.3
Turnover
Turnover predominantly represents the sales of pigs at market rates, exclusive of VAT. Sales are recognised when the pigs are delivered.
Other sales include income from agricultural farming activities that are included when the company has rights to the income, valued at market rate and exclusive of VAT. Income from the Rural Payments Agency is included at amounts due for the period.
All other income is recognised when received or when the company is due economic benefits, whichever is the earlier.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred.
1.5
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.
Capitalised entitlements are amortised over the expected 9 year life of the asset.
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 14 -
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
1.6
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 land and buildings
2% on cost or not deemed appropriate to depreciate
Freehold improvements
2% on cost
Plant and machinery
33% on cost, 20% on cost and 15% on cost
Tractors
25% on reducing balance
Computers
25% on reducing balance
Motor vehicles
25% on 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.
Assets held under finance leases are depreciated over the period of the lease.
1.7
Investment properties
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.
1.8
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at costs less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Listed investments are held at fair value at the reporting period end date. Changes in fair value are recognised in the statement of comprehensive income.
Other fixed asset investments are held at cost less a provision for any impairments.
1.9
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). 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.
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 15 -
1.10
Stocks
Stocks are valued at cost, which is determined as follows:
Valuation of pigs
The cost of finished pigs is estimated using the market value at the reporting date less 9% (2022 - 0%). Other pigs are stratified according to size, age, gender and weight and then valued accordingly by their proportion of the value of finished pigs.
Feed and other pig related supplies are valued at actual cost on a first in first out basis.
Crop valuation
Crops are valued as the accumulation of costs incurred in the year in relation to the next harvest, with provision for permanent falls in the market price of the grown commodities, should this fall below cost.
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.
1.11
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.
1.12
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.
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.
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 16 -
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 company 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 company after deducting all of its liabilities.
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.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.13
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.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 17 -
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.
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 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.
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 18 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
Valuation of debtors
The directors have reviewed the loans made to related parties and considered whether the balances at the year end are recoverable. In doing so, the directors have taken into account the ability of the debtors to pay, future plans and other available information.
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.
Valuation of pigs
The company rears livestock, which will be at various stages of growth, and it is not necessarily easy to accurately ascertain the cost of each individual pig held at the reporting date. Instead the directors have estimated the cost of the pigs using the method set out in the accounting policy. The valuation method requires the directors to estimate the margin that will be made on the pigs. This varies from period to period depending on the market value of pigs, feed prices and other costs of raising pigs.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Pig sales
59,022,774
43,438,489
Arable Farming
927,006
720,873
Other sales
108,635
119,580
60,058,415
44,278,942
2023
2022
£
£
Other revenue
Dividends received
-
266
Rental income arising from investment properties
10,036
7,983
Sundry income
9,300
2,199
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 19 -
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,300
15,000
For other services
Taxation compliance services
1,500
1,500
All other non-audit services
18,000
29,250
19,500
30,750
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Administrative
9
9
Pest control
-
1
Pig management
39
36
Fieldsmen
4
4
Drivers
6
7
Directors
2
2
Vet
2
1
Total
62
60
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,010,238
1,879,518
Social security costs
205,960
180,513
Pension costs
37,072
33,643
2,253,270
2,093,674
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 20 -
6
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Research and development costs
4,636,587
3,797,845
Depreciation of owned tangible fixed assets
469,383
531,348
Depreciation of tangible fixed assets held under finance leases
169,919
188,740
Profit on disposal of tangible fixed assets
(77,911)
(107,585)
Amortisation of intangible assets
2,420
3,808
Cost of stocks recognised as an expense
52,990,828
38,995,155
Operating lease charges
69,600
69,600
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
33,215
32,744
Company pension contributions to defined contribution schemes
1,402
1,402
34,617
34,146
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).
8
Interest receivable and similar income
2023
2022
£
£
Other income from investments
Dividends received
266
2023
2022
Investment income includes the following:
£
£
Dividends from financial assets measured at fair value through profit or loss
266
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
142,330
89,119
Other interest on financial liabilities
529,822
219,871
672,152
308,990
Other finance costs:
Interest on finance leases and hire purchase contracts
5,820
7,789
Other interest
35,340
713,312
316,779
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 21 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(701,346)
(735,971)
Deferred tax
Origination and reversal of timing differences
(127,321)
(63,037)
Total tax credit
(828,667)
(799,008)
The standard corporation tax rate changed on 1 April 2023 from 19% to 25%. The effective rate for the year is 20%.
The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit/(loss) before taxation
434,649
(638,488)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 20.00% (2022: 19.00%)
86,930
(121,313)
Tax effect of expenses that are not deductible in determining taxable profit
3,657
1,407
Tax effect of income not taxable in determining taxable profit
(51)
Adjustments in respect of prior years
(2,048)
Depreciation on assets not qualifying for tax allowances
575
(1,622)
Other permanent differences
30
(2,506)
Research and development tax credits
(827,229)
(660,557)
Enhanced deduction on plant and machinery
(14,366)
Change in tax rate on opening deferred tax
(13,566)
Deferred tax recognised at higher rate
(77,016)
Taxation credit for the year
(828,667)
(799,008)
The current tax for the year of £701,346 relates to a loss generated by Research and Development tax relief, which has been surrendered for a payable credit.
11
Dividends
2023
2022
£
£
Interim paid
4,000
4,000
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 22 -
12
Intangible fixed assets
Entitlements
£
Cost
At 1 June 2022 and 31 May 2023
88,398
Amortisation and impairment
At 1 June 2022
82,685
Amortisation charged for the year
2,420
At 31 May 2023
85,105
Carrying amount
At 31 May 2023
3,293
At 31 May 2022
5,713
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 23 -
13
Tangible fixed assets
Freehold land and buildings
Freehold improvements
Plant and machinery
Tractors
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 June 2022
13,173,861
3,490
4,261,425
3,201,055
51,018
90,358
20,781,207
Additions
287,771
189,125
2,803
8,500
488,199
Disposals
(54,267)
(12,500)
(181,593)
(248,360)
At 31 May 2023
13,119,594
3,490
4,536,696
3,208,587
53,821
98,858
21,021,046
Depreciation and impairment
At 1 June 2022
15,737
3,153,707
2,160,539
36,042
55,029
5,421,054
Depreciation charged in the year
1,967
351,886
270,708
3,961
10,780
639,302
Eliminated in respect of disposals
(6,643)
(163,452)
(170,095)
At 31 May 2023
17,704
3,498,950
2,267,795
40,003
65,809
5,890,261
Carrying amount
At 31 May 2023
13,101,890
3,490
1,037,746
940,792
13,818
33,049
15,130,785
At 31 May 2022
13,158,124
3,490
1,107,718
1,040,516
14,976
35,329
15,360,153
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
13
Tangible fixed assets
(Continued)
- 24 -
The net carrying value of land and buildings includes the following freehold land which is not depreciated:
2023
2022
£
£
Freehold
12,946,518
12,974,711
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and machinery
204,167
58,493
Tractors
252,288
522,351
456,455
580,844
Freehold land and buildings with a carrying amount of £12,834,756 (2022 - £12,834,756) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
14
Investment property
2023
£
Fair value
At 1 June 2022 and 31 May 2023
100,000
Investment property comprises residential flats. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 25 February 2019 by Mr A Tomson, director. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
The carrying value of land and buildings comprises:
2023
2022
£
£
Long leasehold
100,000
100,000
15
Subsidiaries
Details of the company's subsidiaries at 31 May 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Peddars Milling Limited
4b Church Street, Diss IP22 4DD
Ordinary
100.00
The subsidiary is dormant and considered immaterial for the purposes of consolidation.
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 25 -
16
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
15
100
100
Investments other than loans
99,000
99,000
99,100
99,100
Movements in fixed asset investments
Shares in group undertakings
Other investments other than loans
Total
£
£
£
Cost or valuation
At 1 June 2022 & 31 May 2023
100
99,000
99,100
Carrying amount
At 31 May 2023
100
99,000
99,100
At 31 May 2022
100
99,000
99,100
17
Stocks
2023
2022
£
£
Pigs and related stocks
17,748,400
16,593,506
Arable valuation
658,833
364,148
18,407,233
16,957,654
18
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,987,274
2,242,132
Corporation tax recoverable
700,161
736,834
Other debtors
3,197,959
3,029,476
Prepayments and accrued income
80,785
79,166
5,966,179
6,087,608
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
18
Debtors
(Continued)
- 26 -
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 23)
385,079
257,758
Total debtors
6,351,258
6,345,366
19
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
21
5,463,346
3,039,944
Obligations under finance leases
22
160,424
132,637
Trade creditors
8,931,117
11,816,017
Amounts owed to group undertakings
100
100
Taxation and social security
47,253
47,253
Other creditors
1,087,487
103,740
Accruals and deferred income
362,908
305,538
16,052,635
15,445,229
20
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
21
8,391,563
9,066,132
Obligations under finance leases
22
61,591
31,333
8,453,154
9,097,465
Amounts included above which fall due after five years are as follows:
Payable by instalments
3,467,178
3,571,809
21
Loans and overdrafts
2023
2022
£
£
Bank loans
9,150,007
9,876,224
Bank overdrafts
4,704,902
2,229,852
13,854,909
12,106,076
Payable within one year
5,463,346
3,039,944
Payable after one year
8,391,563
9,066,132
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
21
Loans and overdrafts
(Continued)
- 27 -
HSBC UK Bank Plc holds security by way of a debenture incorporating a fixed and floating charge over the company undertaking and assets, including uncalled capital.
Specifically, HSBC UK Bank Plc holds a legal charge over freehold property as set out in note 13.
An interest-only bank loan of £1.9m has interest charged at a rate of 2.35% above the Bank of England base rate. The principal is repayable in a lump sum in February 2025.
Bank loans totalling £6.6m are repayable in instalments and have interest charged at the Bank of England base rate plus 2.35%.
During the year, the company has breached its financial covenants in respect of bank loans of £8.5m. All payments of capital and interest, up to the date of the approval of the financial statements, have been met on time and in full.
22
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
160,424
132,637
In two to five years
61,591
31,333
222,015
163,970
Finance lease payments represent rentals payable by the company 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 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. Leases are secured on the assets concerned.
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
(414,121)
(349,634)
Tax losses
799,200
607,392
385,079
257,758
2023
Movements in the year:
£
Asset at 1 June 2022
(257,758)
Credit to profit or loss
(127,321)
Asset at 31 May 2023
(385,079)
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
23
Deferred taxation
(Continued)
- 28 -
The deferred tax provision includes a deferred tax asset in respect of trading losses which is expected to reverse within 12 months against future expected profits of the same period.
At 31 May 2023 the company had trading losses of £3.2m (2022 - £3.2m) available to offset future profits for taxation purposes.
24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
37,072
33,643
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
25
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
26
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
14,328,598
14,172,078
Profit for the year
1,263,316
160,520
Dividends declared and paid in the year
(4,000)
(4,000)
At the end of the year
15,587,914
14,328,598
27
Financial commitments, guarantees and contingent liabilities
HSBC Bank plc hold a guarantee and a debenture over the company's assets in respect of a bank loan provided to Peddars Holdings Limited, a company controlled by the directors. At 31 May 2023 the balance on the loan was £3,897,270 (2022: £1,955,004).
28
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
69,600
79,000
Between two and five years
92,800
162,400
162,400
241,400
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 29 -
29
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
79,219
72,777
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Key management personnel
932,059
721,132
1,243,289
1,024,724
Other related parties
128,702
77,500
2,054,646
1,984,419
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Key management personnel
1,516,806
236,608
Other related parties
442,917
278,616
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Key management personnel
151,775
94,634
Other related parties
3,066,752
2,940,833
Amounts due from key management personnel and other related parties are non-secured, interest free and have no fixed repayment terms.
30
Directors' transactions
Dividends totalling £4,000 (2022 - £4,000) were paid in the year in respect of shares held by the company's directors.
PEDDARS PIGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 30 -
31
Cash absorbed by operations
2023
2022
£
£
Profit for the year after tax
1,263,316
160,520
Adjustments for:
Taxation credited
(828,667)
(799,008)
Finance costs
713,312
316,779
Investment income
(266)
Gain on disposal of tangible fixed assets
(77,911)
(107,585)
Amortisation and impairment of intangible assets
2,420
3,808
Depreciation and impairment of tangible fixed assets
639,302
720,088
Movements in working capital:
Increase in stocks
(1,449,579)
(7,623,800)
Decrease/(increase) in debtors
158,630
(387,950)
(Decrease)/increase in creditors
(2,860,830)
7,166,614
Cash absorbed by operations
(2,440,007)
(550,800)
32
Analysis of changes in net debt
1 June 2022
Cash flows
New finance leases
Other non-cash changes
31 May 2023
£
£
£
£
£
Cash at bank and in hand
3,406
(1,272)
-
-
2,134
Bank overdrafts
(2,229,852)
(2,475,050)
-
-
(4,704,902)
(2,226,446)
(2,476,322)
-
-
(4,702,768)
Borrowings excluding overdrafts
(9,876,224)
726,217
-
-
(9,150,007)
Obligations under finance leases
(163,970)
236,705
(362,250)
67,500
(222,015)
(12,266,640)
(1,513,400)
(362,250)
67,500
(14,074,790)
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