Company Registration No. 00745797 (England and Wales)
W. & A. APPLETON (ARLINGTON) LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
W. & A. APPLETON (ARLINGTON) LIMITED
COMPANY INFORMATION
Directors
Mrs J M Appleton
Mr P A Appleton
Mr C Appleton
Secretary
Mrs J M Appleton
Company number
00745797
Registered office
Primrose Farm
Arlington
Polegate
East Sussex
BN26 6SJ
Accountants
Knill James LLP
One Bell Lane
Lewes
East Sussex
BN7 1JU
Bankers
Clydesdale Bank
30 Lombard Street
London
EC3V 9BB
W. & A. APPLETON (ARLINGTON) LIMITED
CONTENTS
Page
Directors' report
1
Accountants' report
2
Profit and loss account
3
Balance sheet
4 - 5
Statement of changes in equity
6
Notes to the financial statements
7 - 12
W. & A. APPLETON (ARLINGTON) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company is that of farming.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs J M Appleton
Mr P A Appleton
Mr A R Appleton Deceased
(Resigned 21 April 2022)
Mr C Appleton
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr P A Appleton
Director
16 January 2024
W. & A. APPLETON (ARLINGTON) LIMITED
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF W. & A. APPLETON (ARLINGTON) LIMITED FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of W. & A. Appleton (Arlington) Limited for the year ended 31 March 2023 set out on pages 3 to 12 from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales, we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/en/members/regulations-standards-and-guidance/.
This report is made solely to the Board of Directors of W. & A. Appleton (Arlington) Limited, as a body, in accordance with the terms of our engagement letter dated 20 December 2021. Our work has been undertaken solely to prepare for your approval the financial statements of W. & A. Appleton (Arlington) Limited and state those matters that we have agreed to state to the Board of Directors of W. & A. Appleton (Arlington) Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF as detailed at icaew.com. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than W. & A. Appleton (Arlington) Limited and its Board of Directors as a body, for our work or for this report.
It is your duty to ensure that W. & A. Appleton (Arlington) Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of W. & A. Appleton (Arlington) Limited. You consider that W. & A. Appleton (Arlington) Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of W. & A. Appleton (Arlington) Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Knill James LLP
17 January 2024
Chartered Accountants
One Bell Lane
Lewes
East Sussex
BN7 1JU
W. & A. APPLETON (ARLINGTON) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
2023
2022
£
£
Turnover
2,529,112
1,857,747
Cost of sales
(929,512)
(918,428)
Gross profit
1,599,600
939,319
Administrative expenses
(1,037,282)
(812,285)
Other operating income
26,724
22,637
Operating profit
589,042
149,671
Interest receivable and similar income
420
2,255
Interest payable and similar expenses
(61,366)
(43,126)
Amounts written off investments
3
(44)
101,287
Profit before taxation
528,052
210,087
Taxation
4
(72,178)
(86,200)
Profit for the financial year
455,874
123,887
W. & A. APPLETON (ARLINGTON) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 4 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
2,291,936
2,015,599
Dairy herd
269,400
259,800
Investments
6
253,915
240,741
2,815,251
2,516,140
Current assets
Stocks
344,541
292,473
Debtors
142,455
149,997
Cash at bank and in hand
2
2
486,998
442,472
Creditors: amounts falling due within one year
8
(442,960)
(471,094)
Net current assets/(liabilities)
44,038
(28,622)
Total assets less current liabilities
2,859,289
2,487,518
Creditors: amounts falling due after more than one year
9
(1,356,196)
(1,339,634)
Provisions for liabilities
(122,499)
(123,164)
Net assets
1,380,594
1,024,720
Capital and reserves
Called up share capital
11
1,000
1,000
Share premium account
19,422
19,422
Profit and loss reserves
1,360,172
1,004,298
Total equity
1,380,594
1,024,720
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
W. & A. APPLETON (ARLINGTON) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
- 5 -
The financial statements were approved by the board of directors and authorised for issue on 16 January 2024 and are signed on its behalf by:
Mr P A Appleton
Director
Company Registration No. 00745797
W. & A. APPLETON (ARLINGTON) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2021
1,000
19,422
898,007
918,429
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
123,887
123,887
Dividends
-
-
(17,596)
(17,596)
Balance at 31 March 2022
1,000
19,422
1,004,298
1,024,720
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
455,874
455,874
Dividends
-
-
(100,000)
(100,000)
Balance at 31 March 2023
1,000
19,422
1,360,172
1,380,594
W. & A. APPLETON (ARLINGTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
1
Accounting policies
Company information
W. & A. Appleton (Arlington) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Primrose Farm, Arlington, Polegate, East Sussex, BN26 6SJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings freehold
2% straight line
Plant and machinery
10% reducing balance and 33% reducing balance
Motor vehicles & tractors
20% and 25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Fixed asset investments
Fixed asset investments are stated at cost less provision for diminution in value.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
W. & A. APPLETON (ARLINGTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 8 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.7
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
W. & A. APPLETON (ARLINGTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 9 -
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Dairy herd
The animals forming the herd have been valued at the greater of purchase cost or breeding cost together with the cost of rearing to maturity. Replacements are at the herd value of the animal replaced except where the animals are bought in when they are valued at actual purchase cost.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
6
5
3
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses)
Gain on financial assets held at fair value through profit or loss
127
35,924
W. & A. APPLETON (ARLINGTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
72,106
40,880
Adjustments in respect of prior periods
737
Total current tax
72,843
40,880
Deferred tax
Origination and reversal of timing differences
(665)
45,320
Total tax charge
72,178
86,200
5
Tangible fixed assets
Land and buildings freehold
Assets under construction
Plant and machinery
Motor vehicles & tractors
Total
£
£
£
£
£
Cost
At 1 April 2022
1,789,406
564,395
384,961
2,738,762
Additions
20,763
38,045
221,975
280,783
Disposals
(39,308)
(113,515)
(152,823)
Transfers
282,070
(102,801)
179,269
At 31 March 2023
1,810,169
282,070
460,331
493,421
3,045,991
Depreciation and impairment
At 1 April 2022
262,548
223,771
236,844
723,163
Depreciation charged in the year
27,729
27,089
81,245
136,063
Eliminated in respect of disposals
(33,337)
(71,834)
(105,171)
At 31 March 2023
290,277
217,523
246,255
754,055
Carrying amount
At 31 March 2023
1,519,892
282,070
242,808
247,166
2,291,936
At 31 March 2022
1,526,858
340,624
148,117
2,015,599
6
Fixed asset investments
2023
2022
£
£
Investments
253,915
240,741
W. & A. APPLETON (ARLINGTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Fixed asset investments
(Continued)
- 11 -
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 April 2022
240,741
Additions
13,174
At 31 March 2023
253,915
Carrying amount
At 31 March 2023
253,915
At 31 March 2022
240,741
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
96,007
92,102
Other debtors
46,448
57,895
142,455
149,997
8
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
72,478
186,416
Obligations under finance leases
60,271
23,833
Trade creditors
145,881
212,680
Corporation tax
72,106
40,887
Other taxation and social security
507
86
Other creditors
29,738
312
Accruals and deferred income
61,979
6,880
442,960
471,094
The bank borrowings are secured by the company. Net obligations under hire purchase contracts are secured on the assets acquired. A fixed and floating legal charge is held over the Land at Beatons Wood by Clydesdale Bank plc.
W. & A. APPLETON (ARLINGTON) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
1,297,998
1,326,106
Obligations under finance leases
58,198
13,528
1,356,196
1,339,634
10
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
2,400
2,400
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.
11
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares class A of £1 each
959
959
959
959
Ordinary shares class B of £1 each
41
41
41
41
1,000
1,000
1,000
1,000
12
Capital commitments
Amounts contracted for but not provided in the financial statements:
2023
2022
£
£
Acquisition of tangible fixed assets
467,500
467,500
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