REGISTERED NUMBER: 00451065 (England and Wales) |
A H WORTH AND COMPANY LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
REGISTERED NUMBER: 00451065 (England and Wales) |
A H WORTH AND COMPANY LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 5 |
Report of the Directors | 6 | to | 7 |
Report of the Independent Auditors | 8 | to | 10 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Statement of Financial Position | 13 |
Company Statement of Financial Position | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Statement of Cash Flows | 17 |
Notes to the Consolidated Statement of Cash Flows | 18 |
Notes to the Consolidated Financial Statements | 19 | to | 36 |
A H WORTH AND COMPANY LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MAY 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Enterprise Way |
Pinchbeck |
Spalding |
Lincolnshire |
PE11 3YR |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
The directors present their strategic report of the company and the group for the year ended 31 May 2023. |
REVIEW OF BUSINESS |
The majority of the Group's potato, fresh prepared and vegetable product sales continue to be to leading UK retailers and home delivery avenues and involves a board range of product types and grower sources. Historically, potatoes were the groups largest product area, but the recent strategic investment in our operational capability with the acquisition of A. H. Worth (Fosdyke) Ltd (formerly Emmett UK Ltd) has broadened our capabilities and balanced our product offering. |
A. H. Worth (Fosdyke) Ltd, located on the A17 near Spalding, specialises in the processing and packing of Spinach, Kale, Cavalo Nero and Leeks to major retailers. In order to further accelerate the strategic supply partnership with Emmett Farming Group (EFG), In June 2023 AH Worth & Co entered into discussions to acquire all of the share capital of EFG. This transaction competed in July 2023 and the Board are confident this will not only protect the incoming supply of raw material, but also enhance the financial performance of the Group longer term. |
Harvest 22 saw mixed results. The hot summer and high prices saw a very successful wheat crop, but these extreme temperatures had a detrimental effect on our potato crop. As well as this, an extreme rainfall event in August reduced potato yields but did mean that we could start filling some of our irrigation reservoirs early. On balance a good year on the farm as high input costs did not fully impact us until harvest 23. |
The financial year ending May 23 was undoubtedly a challenging one, with supply interruption, weather, cost inflation and fresh produce competitive margin pressure contributing to a significant operating loss in the year. In particular, potato supply and pricing towards the end of the 22-23 season resulted in significantly adverse gross margin performance in whole-head potato. |
The group has taken significant steps since the end of the financial year to exit unprofitable business, implement cost saving initiatives and continue to invest in our production sites and people capability for the long term. |
The group operates a diverse range of business activities which makes it resilient for the long term, and as such, the Board has full confidence in an improved financial performance for the year ending May 24. |
Significant cost inflation continues to be an ongoing major challenge to both the Company and the wider industry and this impacted the financial year with raw material input prices, labour cost and availability, energy price and transport costs all materially increasing, predominantly due to the uncertainty and supply side shortages created by the Ukraine crisis. |
Whilst there are some signs that this, and wider inflationary pressure are starting to ease slightly, we expect it to continue to have some impact on the next financial year. The Board continues to take proactive steps to mitigate and recover cost through efficiencies and continued investment in people and assets and as such is confident that the outlook for the business is positive. |
The business continues to build upon its resilient response, following on from the global impact of Covid-19, by continuing to reliably support its customer base whilst also ensuring that the environment for its employees is to the benefit of all. The various challenges and opportunities presented has positioned the group well to face into future obstacles in a swift, efficient and open-minded manner. It has also strengthened our view to ensure that capital projects remain a high priority within the group, where we can continue to deliver operational excellence in all areas of our production. |
The Board would like to express particular thanks to all our employees, who have worked with extreme diligence and professionalism throughout a year of constant challenges, whether Covid or inflation. We equally would like to thank our customers and suppliers who continue to support the group through these globally changing times and look forward to a positive and favourable trading future. |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the execution of the group's strategy are subject to a number of risks. Risks are formally reviewed by the board and appropriate processes put in place to monitor and mitigate them. |
The key risks affecting the group are set out below: |
Customers |
To support the mitigation of group risk and to enhance the groups offer of a wider product range to customers, the business continues to monitor and evaluate strategic acquisition opportunities. |
The group values integrity and seeks to conduct its business with professionalism and aspires to provide excellent service in the eyes of our customers. To do so the business works to align itself to all its customers' objectives and be at the forefront of developing supply chain value. The group's strategy continues to be to develop the business across more sectors to ensure optimum crop utilisation and extend its range in growth produce categories. |
The group monitors the changes in consumer consumptions trends and consequently seeks to develop core businesses to cater for these. |
Employees |
The group respects and cares for its staff and invests in their employment potential in return for loyalty, openness, commitment and performance. The group operates a variety of progression based structures, invests in personal and professional development, provides significant work related benefits and employs an open and honest process of continuous dialogue to ensure employees' interests are aligned with the group. The group believes in remunerating its staff fairly for doing a good job which includes taking on responsibility, working as a team and supporting the group's continuous improvement. |
Commodity risk |
As a large part of the company's operations are involved with agricultural raw materials, it is exposed to the vagaries of climate and economic cycles and the company operates a variety of tools to reduce exposure to this risk. These include contracting supply price and quantity with suppliers, growing our own crops, having a wide customer spectrum to ensure optimum product utilisation and working with customers to increase real value. The challenges of raw material supply were exacerbated following the Ukraine crisis and this continues to contribute to commodity volatility. |
Inflation |
The inflationary market has had a significant impact on all parts of our supply chain, which continues to be a factor. We are working with all stakeholders to mitigate where possible and share the responsibility to ensure a sustainable supply chain. |
Brexit |
The further impact of Brexit is not considered to add further risk to our business operation than what has already been realised. The most significant risk is relates to a large proportion of our workforce is drawn from EU nationals, of which the majority are fully employed by the company. Others are engaged on a temporary basis through registered employment agencies. We are seeing adverse trends in the availability of labour. Our policy will be to continue to support our workforce by rewarding fairly and providing a modern and desirable working environment. |
Natural resources |
A further key risk is the environment and the consumption of natural resources. The group respects the environment in which it operates and works to conserve natural resources and enhance the natural environment. The group and its subsidiaries are working on a range of initiatives to reduce the carbon footprint associated with its supply chains in active participation with customers and suppliers. These include the production of renewable energy from anaerobic digestion and solar panels and its membership of LEAF (Linking Environment & Farming). Furthermore, it recognises inflationary pressures arising from fossil fuel prices and commodity shortages and works closely with customers and suppliers to mitigate this through supply chain efficiencies. |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
SECTION 172(1) STATEMENT |
Stakeholder Engagement |
As the Board at A H Worth and Company Ltd, we have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the company's success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we as a Board outwork this responsibility. |
Engaging with stakeholders |
Our key stakeholders, and the ways in which we engage with them, are as follows: |
Our employees |
Without the dedication and commitment from our employees, we know that we wouldn't be able to support our customers and suppliers in the way that we continue to do. This was highlighted further throughout a globally challenging 2020. To strengthen this, we want to create an inspiring and motivating environment for our employees with cross-functional teams, clear goals and a culture that celebrates achievement. We believe that together, in the right atmosphere, we can continue to achieve more. |
Our customers and suppliers |
Working with our customers and suppliers in a respectful and enjoyable way is essential for our business to succeed. Therefore, we must stay committed to building relationships that last, by taking the time to understand the needs of our customers, suppliers and partners. |
Our community |
We pride ourselves in actively participating in all of our communities. It is a key value that we ensure that we have a wide range of local initiatives to help our communities thrive, grow and diversify, ranging from Open Farm Sundays where we welcome the public to our farms, to the various local projects that we support. |
Our planet |
We believe that long term outcomes are always better than short term impacts. Therefore, at A H Worth and Company Limited, we believe that sustainability should underpin everything that we do. From the way that we farm our land so that it's preserved for future generations, to the use of renewable energy sources, and in the reduction of waste, we strive to behave in a truly sustainable way. |
The Group has significant renewable energy investment in both anaerobic digestion at the Holbeach site and Solar energy at the Fosdyke site. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The key performance indicators of the business which are monitored through the production of periodic management accounts are as follows: |
2023 | 2022 |
Turnover - £'m | £133m | £113m |
Turnover movement year on year | 18% | 41% |
Gross profit - £'m | £31.3m | £30.6m |
Gross profit - % of sales | 23.5% | 27% |
Operating (Loss)/Profit | (£3.7m) | £1.1m |
OTHER KEY PERFORMANCE INDICATORS |
The management employ a range of customer and internally derived Key Performance Indicators often on a daily or even hourly basis to assist in the control and monitoring of business progress. These indicators include physical performance, financial, quality assurance, technical and customer service measures. Where possible they are produced from a range of bespoke and externally provided control systems. The A H Worth and Company Limited group prides itself in actively seeking the feedback of its customers to assist in the continuous improvement of service and quality and this feedback along with formal financial and operating performance measures are reported comprehensively to the A H Worth and Company Limited Board on a monthly basis. |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MAY 2023 |
GREENHOUSE GAS EMISSIONS, ENERGY CONSUMPTION AND ENERGY EFFICIENCY |
The directors are pleased to report the following information with regards to its greenhouse gas emissions, energy consumption and energy efficiency for the current period. |
The figures have been calculated using online carbon conversion rates. |
2023 | 2022 | Units |
Energy consumption | 19,163 | 19,170 | MWh |
Scope 1 emissions | 716 | 685 | tC02e |
Scope 2 emissions | 1,989 | 1,984 | tCO2e |
Total gross scope 1 & 2 emissions | 2,705 | 2,669 | tCO2e |
Intensity ratio | 49,168 | 42,338 | Turnover / tCO2e |
ON BEHALF OF THE BOARD: |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 May 2023. |
DIVIDENDS |
A dividend of £81,028 was paid in the year (2022 - £81,028). The directors recommend a dividend of £81,028 (2022 - £81,028). |
FUTURE DEVELOPMENTS |
The balance sheet of the Company remains strong, which will enable appropriate business investments to take place when these become available. |
As a family business it takes a long term view and will continue to seek out opportunities to grow and develop its operations. |
Our aim is to deliver a broader product range, raise quality and reduce costs through investing in the growing base as well as working more closely with our key stakeholders. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The group has structured debt arrangements with a range of funding sources tailored to the specific underlying requirements of the business to which the funding relates. As a result of this policy, the group retains a significant free cash flow to capitalise on short term trading opportunities and to mitigate commodity related volatility. |
The group also exercises several key financial risk management tools. A proportion of the trade debtors are covered by trade indemnity insurance and the group uses fixed and variable rate asset and loan funding aligned with the productive assets it employs and over this, interest rate risk management to control exposure to bank interest rate movements. It reviews profit performance weekly in key operating subsidiaries and monthly across all subsidiaries and associates as well as maintaining the external audit rigours of the annual statutory cycle across all trading subsidiaries and associates. The group also undertakes bottom up budgets and forecasts to challenge costs and monitor and predict cash flow with a weekly treasury management process for net cash held. |
DISABLED EMPLOYEES |
The group will employ disabled persons when they appear to be suitable for a particular vacancy and every effort is made to ensure that they are given full and fair consideration when such vacancies arise. There is a training scheme in operation so that employees who have been injured or disabled in the course of their employment can, where possible, continue in employment with the group. The group operates a progressive system for career development and progression which is available to all employees. |
ENGAGEMENT WITH EMPLOYEES |
The group encourages the involvement of its employees in its management through regular meetings of the site consultative teams which have responsibility for the dissemination of information of particular concern to employees and for receiving their views on important matters of policy. The group also holds a series of formal briefings on group performance including quarterly company reviews to which all employees are invited. |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MAY 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Duncan & Toplis Audit Limited, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
A H WORTH AND COMPANY LIMITED |
Opinion |
We have audited the financial statements of A H Worth and Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 May 2023 and of the group's loss 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 |
A H WORTH AND COMPANY LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 seven, 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 group's and the parent 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 group or the parent 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: |
We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. |
The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. |
Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Food Safety regulations and Employment laws. |
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the external audits conducted in the year, confirmation of renewed relevant memberships and licenses and a detailed walkthrough of Health and Safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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 |
A H WORTH AND COMPANY 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 |
Enterprise Way |
Pinchbeck |
Spalding |
Lincolnshire |
PE11 3YR |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 133,446,194 | 112,751,692 |
Cost of sales | 102,069,320 | 82,129,844 |
GROSS PROFIT | 31,376,874 | 30,621,848 |
Distribution costs | 11,533,271 | 9,679,437 |
Administrative expenses | 23,810,932 | 20,142,615 |
35,344,203 | 29,822,052 |
(3,967,329 | ) | 799,796 |
Other operating income | 229,847 | 317,913 |
OPERATING (LOSS)/PROFIT | 4 | (3,737,482 | ) | 1,117,709 |
Loss on sale of investments | 5 | 153,994 | - |
(3,891,476 | ) | 1,117,709 |
Income from other participating interests | 346,000 | 487,000 |
Interest receivable and similar income | 136,006 | 113,411 |
482,006 | 600,411 |
(3,409,470 | ) | 1,718,120 |
Interest payable and similar expenses | 6 | 246,880 | 213,759 |
(LOSS)/PROFIT BEFORE TAXATION | (3,656,350 | ) | 1,504,361 |
Tax on (loss)/profit | 7 | (141,732 | ) | 502,064 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
(Loss)/profit attributable to: |
Owners of the parent | (3,514,618 | ) | 1,002,297 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | (3,514,618 | ) | 1,002,297 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | (3,514,618 | ) | 1,002,297 |
Total comprehensive income attributable to: |
Owners of the parent | (3,514,618 | ) | 1,002,297 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 6,120,645 | 6,693,156 |
Tangible assets | 11 | 26,160,454 | 26,270,625 |
Investments | 12 | 4,998,342 | 4,934,153 |
Investment property | 13 | 5,227,000 | 5,227,000 |
42,506,441 | 43,124,934 |
CURRENT ASSETS |
Stocks | 14 | 5,868,278 | 5,923,226 |
Debtors | 15 | 18,835,447 | 18,241,080 |
Cash at bank and in hand | 823,384 | 5,426,915 |
25,527,109 | 29,591,221 |
CREDITORS |
Amounts falling due within one year | 16 | 21,366,090 | 21,046,377 |
NET CURRENT ASSETS | 4,161,019 | 8,544,844 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 46,667,460 | 51,669,778 |
CREDITORS |
Amounts falling due after more than one year | 17 | (4,631,425 | ) | (5,817,545 | ) |
PROVISIONS FOR LIABILITIES | 22 | (1,495,668 | ) | (1,716,220 | ) |
NET ASSETS | 40,540,367 | 44,136,013 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 55,779 | 55,779 |
Revaluation reserve | 24 | 4,994,000 | 4,994,000 |
Capital redemption reserve | 24 | 34,461 | 34,461 |
Retained earnings | 24 | 35,456,127 | 39,051,773 |
SHAREHOLDERS' FUNDS | 40,540,367 | 44,136,013 |
The financial statements were approved by the Board of Directors and authorised for issue on 24 November 2023 and were signed on its behalf by: |
D R Worth - Director |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 17 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 22 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Revaluation reserve |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,577,490 | 1,827,250 |
The financial statements were approved by the Board of Directors and authorised for issue on |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2023 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 June 2021 | 55,779 | 38,130,504 | 4,994,000 | 34,461 | 43,214,744 |
Changes in equity |
Dividends | - | (81,028 | ) | - | - | (81,028 | ) |
Total comprehensive income | - | 1,002,297 | - | - | 1,002,297 |
Balance at 31 May 2022 | 55,779 | 39,051,773 | 4,994,000 | 34,461 | 44,136,013 |
Changes in equity |
Dividends | - | (81,028 | ) | - | - | (81,028 | ) |
Total comprehensive income | - | (3,514,618 | ) | - | - | (3,514,618 | ) |
Balance at 31 May 2023 | 55,779 | 35,456,127 | 4,994,000 | 34,461 | 40,540,367 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MAY 2023 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 June 2021 |
Changes in equity |
Profit for the year | - | 1,827,250 | - | - | 1,827,250 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 31 May 2022 |
Changes in equity |
Profit for the year | - | 2,577,490 | - | - | 2,577,490 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | - | ( |
) |
Balance at 31 May 2023 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 MAY 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (581,762 | ) | (414,906 | ) |
Interest paid | (246,120 | ) | (210,708 | ) |
Interest element of hire purchase payments paid | (760 | ) | (3,051 | ) |
Tax paid | (49,939 | ) | 86,679 |
Net cash from operating activities | (878,581 | ) | (541,986 | ) |
Cash flows from investing activities |
Acquisition of subsidiaries | - | (13,101,820 | ) |
Purchase of tangible fixed assets | (2,906,812 | ) | (2,063,544 | ) |
Purchase of fixed asset investments | - | 17,388 |
Sale of tangible fixed assets | 3,200 | 49,125 |
Sale of fixed asset investments | 33,000 | (20,001 | ) |
Interest received | 136,006 | 113,411 |
Dividends received | - | 487,000 |
Net cash from investing activities | (2,734,606 | ) | (14,518,441 | ) |
Cash flows from financing activities |
New loans in year | - | 1,985,049 |
Loan repayments in year | - | (144,398 | ) |
Capital repayments in year | (909,316 | ) | (743,000 | ) |
Equity dividends paid | (81,028 | ) | (81,028 | ) |
Net cash from financing activities | (990,344 | ) | 1,016,623 |
Decrease in cash and cash equivalents | (4,603,531 | ) | (14,043,804 | ) |
Cash and cash equivalents at beginning of year | 2 | 5,426,915 | 19,470,719 |
Cash and cash equivalents at end of year | 2 | 823,384 | 5,426,915 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit before taxation | (3,656,350 | ) | 1,504,361 |
Depreciation charges | 3,559,530 | 3,068,550 |
Loss/(profit) on disposal of fixed assets | 150,794 | (35,661 | ) |
Finance costs | 246,880 | 213,759 |
Finance income | (482,006 | ) | (600,411 | ) |
(181,152 | ) | 4,150,598 |
Decrease/(increase) in stocks | 54,948 | (1,800,392 | ) |
Increase in trade and other debtors | (1,030,024 | ) | (5,716,365 | ) |
Increase in trade and other creditors | 574,466 | 2,951,253 |
Cash generated from operations | (581,762 | ) | (414,906 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 823,384 | 5,426,915 |
Year ended 31 May 2022 |
31.5.22 | 1.6.21 |
£ | £ |
Cash and cash equivalents | 5,426,915 | 19,470,719 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.6.22 | Cash flow | At 31.5.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,426,915 | (4,603,531 | ) | 823,384 |
5,426,915 | (4,603,531 | ) | 823,384 |
Debt |
Finance leases | (2,762,855 | ) | 909,316 | (1,853,539 | ) |
Debts falling due within 1 year | (271,388 | ) | - | (271,388 | ) |
Debts falling due after 1 year | (3,898,063 | ) | 283,103 | (3,614,960 | ) |
(6,932,306 | ) | 1,192,419 | (5,739,887 | ) |
Total | (1,505,391 | ) | (3,411,112 | ) | (4,916,503 | ) |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MAY 2023 |
1. | STATUTORY INFORMATION |
A H Worth and Company Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on amounts recognised in the financial statements: |
Revaluation of investment properties |
The Group carries its investment property at fair value, with changes in fair value being recognised in profit or loss. These properties are revalued by the directors by reference to local market data. The determined fair value is most sensitive to the application of the most relevant data and the adjustments applied to reflect specific location circumstances. Periodically, an independent valuations specialist is engaged to determine fair values by reference to comparable market data. |
Impairment of non-financial assets |
Where there are indicators of impairment of individual assets, the Group performs impairment tests based on fair value less costs to sell or a value in use calculation. The fair value less costs to sell calculation is based on available data from binding sales transactions in an arms' length transaction on similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the budget for the relevant period and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the asset's performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash flows and the growth rate used. |
Goodwill and intangible assets |
The Group establishes a reliable estimate of the useful life of goodwill and intangible assets arising on business combinations. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed and any contractual provisions that can limit useful life. |
Taxation |
Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. |
Valuation of farming crops |
Crop stock is valued on the basis of actual costs incurred for materials, applying cultivation rates determined by management based on their knowledge and experience, with reference to accepted industry methods. |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the Group has transferred the significant risks and rewards of ownership to the buyer; |
- the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the Group will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the consolidated statement of comprehensive income over its useful economic life. |
Other intangible assets |
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. |
Tangible fixed assets |
Tangible fixed assets under the cost model, other than investment properties, are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using either the straight line method or on a reducing balance basis. |
Depreciation is provided on the following basis: |
Long-term leasehold property - 3 - 50 years |
Short-term leasehold property - 3 - 50 years |
Plant and machinery - 3 - 20 years or 15% - 20% reducing balance |
Motor vehicles - 3 - 5 years or 25% reducing balance |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the consolidated statement of comprehensive income. |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Investments in subsidiaries |
An entity is treated as a joint venture where the Group is a party to a contractual agreement with one or more parties from outside the Group to undertake an economic activity that is subject to joint control. |
An entity is treated as an associated undertaking where the Group exercises significant influence in that it has the power to participate in the operating and financial policy decisions. |
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The consolidated statement of comprehensive income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the consolidated balance sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. |
Any premium on acquisition is dealt with in accordance with the goodwill policy. |
Investment property |
Investment property is carried at fair value determined annually by the directors in accordance with FRS 102. Changes in fair value are recognised in the consolidated statement of comprehensive income. No depreciation is provided. In 2022 the directors obtained a professional valuation from a local independent valuer. |
Stocks |
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
Stocks and growing crops are valued in accordance with guidance notes on agricultural stock calculations for tax purposes and are stated at the lower of cost and net realisable value. Cost includes material, direct labour and production overheads appropriate to the relevant stage of production. Net realisable value is based on estimated selling price less all further costs to completion and all relevant marketing, selling and distribution costs. |
Current and deferred taxation |
The tax expense for the year comprises current and deferred tax. Tax is recognised in the consolidated statement of comprehensive income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income. |
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that: |
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; |
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and |
- Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. |
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives, which range from 3 to 6 years. |
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. |
Foreign currencies |
Functional and presentation currency |
The Company's functional and presentational currency is GBP. |
Transactions and balances |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non- monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the consolidated statement of comprehensive income except when deferred in other comprehensive income as qualifying cash flow hedges. |
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the consolidated statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in the consolidated statement of comprehensive income within 'other operating income'. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the consolidated profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
Pensions |
Defined contribution pension plan |
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations. |
The contributions are recognised as an expense in the consolidated statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Group in independently administered funds. |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
2. | ACCOUNTING POLICIES - continued |
Provisions for liabilities |
Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation. |
Provisions are charged as an expense to the consolidated statement of comprehensive income in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. |
When payments are eventually made, they are charged to the provision carried in the balance sheet. |
Financial instruments |
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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. |
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 income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 17,744,254 | 17,698,312 |
Social security costs | 1,581,087 | 1,622,443 |
Other pension costs | 501,110 | 517,102 |
19,826,451 | 19,837,857 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration | 118 | 114 |
Production and sales staff | 438 | 491 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration | 481,109 | 570,648 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 203,780 | 222,965 |
4. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 332,480 | 302,126 |
Other operating leases | 1,087,639 | 919,668 |
Depreciation - owned assets | 3,016,983 | 2,892,141 |
Profit on disposal of fixed assets | (3,200 | ) | (35,661 | ) |
Goodwill amortisation | 572,511 | 472,511 |
Auditors' remuneration | 24,155 | 37,726 |
Auditors' remuneration for non audit work | - | 14,965 |
Foreign exchange differences | 20,301 | 259,426 |
5. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Exceptional items | (211,927 | ) | - |
Loss on sale of investments | (153,994 | ) | - |
(365,921 | ) | - |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts | 191,936 | 150,479 |
Bank loan interest | 6,281 | - |
Other interest | 47,903 | 57,213 |
Interest payable | - | 3,016 |
Finance leases and hire purchase contracts | 760 | 3,051 |
246,880 | 213,759 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 125,477 | 212,739 |
Adjustment in respect of previous periods | (46,657 | ) | (626 | ) |
Total current tax | 78,820 | 212,113 |
Deferred tax | (220,552 | ) | 289,951 |
Tax on (loss)/profit | (141,732 | ) | 502,064 |
UK corporation tax has been charged at 25 % . |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
(Loss)/profit before tax | (3,656,350 | ) | 1,504,361 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
(914,088 |
) |
285,829 |
Effects of: |
Adjustments to tax charge in respect of previous periods | 46,657 | - |
Other differences leading to an increase (decrease) in the tax charge | 505,147 | 192,209 |
Change in deferred tax rate | - | 24,026 |
Adjustment to deferred tax | 220,552 | - |
Total tax (credit)/charge | (141,732 | ) | 502,064 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary 'A' shares shares of £1.00 each |
Interim | 81,028 | 81,028 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Software |
Negative | development |
Goodwill | goodwill | costs | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2022 |
and 31 May 2023 | 9,136,598 | (234,633 | ) | 112,000 | 9,013,965 |
AMORTISATION |
At 1 June 2022 | 2,521,442 | (234,633 | ) | 34,000 | 2,320,809 |
Amortisation for year | 572,511 | - | - | 572,511 |
At 31 May 2023 | 3,093,953 | (234,633 | ) | 34,000 | 2,893,320 |
NET BOOK VALUE |
At 31 May 2023 | 6,042,645 | - | 78,000 | 6,120,645 |
At 31 May 2022 | 6,615,156 | - | 78,000 | 6,693,156 |
11. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Freehold | Long | Plant and |
land | buildings | leasehold | machinery |
£ | £ | £ | £ |
COST |
At 1 June 2022 | 2,607,000 | 11,013,842 | 114,105 | 37,620,070 |
Additions | 29,850 | 480,709 | - | 1,981,231 |
Disposals | - | - | - | (207,942 | ) |
At 31 May 2023 | 2,636,850 | 11,494,551 | 114,105 | 39,393,359 |
DEPRECIATION |
At 1 June 2022 | - | 3,718,787 | 114,105 | 21,899,525 |
Charge for year | 36,451 | 47,034 | - | 2,664,583 |
Eliminated on disposal | - | - | - | (207,942 | ) |
At 31 May 2023 | 36,451 | 3,765,821 | 114,105 | 24,356,166 |
NET BOOK VALUE |
At 31 May 2023 | 2,600,399 | 7,728,730 | - | 15,037,193 |
At 31 May 2022 | 2,607,000 | 7,295,055 | - | 15,720,545 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2022 | 489,723 | 305,112 | 1,492,809 | 53,642,661 |
Additions | 134,987 | 13,800 | 266,235 | 2,906,812 |
Disposals | - | (6,512 | ) | - | (214,454 | ) |
At 31 May 2023 | 624,710 | 312,400 | 1,759,044 | 56,335,019 |
DEPRECIATION |
At 1 June 2022 | 307,337 | 191,876 | 1,140,406 | 27,372,036 |
Charge for year | 55,869 | 48,363 | 164,683 | 3,016,983 |
Eliminated on disposal | - | (6,512 | ) | - | (214,454 | ) |
At 31 May 2023 | 363,206 | 233,727 | 1,305,089 | 30,174,565 |
NET BOOK VALUE |
At 31 May 2023 | 261,504 | 78,673 | 453,955 | 26,160,454 |
At 31 May 2022 | 182,386 | 113,236 | 352,403 | 26,270,625 |
Company |
Freehold | Plant and |
land | machinery | Totals |
£ | £ | £ |
COST |
At 1 June 2022 |
Additions |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
12. | FIXED ASSET INVESTMENTS |
Group |
Interest |
Investment | in other |
in joint | participating | Other |
ventures | interests | investments | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2022 | 6,742,826 | 186,994 | 63,333 | 6,993,153 |
Disposals | - | (186,994 | ) | - | (186,994 | ) |
Share of profit after tax | 251,183 | - | - | 251,183 |
At 31 May 2023 | 6,994,009 | - | 63,333 | 7,057,342 |
PROVISIONS |
At 1 June 2022 |
and 31 May 2023 | 2,039,000 | - | 20,000 | 2,059,000 |
NET BOOK VALUE |
At 31 May 2023 | 4,955,009 | - | 43,333 | 4,998,342 |
At 31 May 2022 | 4,703,826 | 186,994 | 43,333 | 4,934,153 |
Company |
Investment |
in joint | Other |
ventures | investments | Totals |
£ | £ | £ |
COST |
At 1 June 2022 |
and 31 May 2023 | 9,638,140 |
PROVISIONS |
At 1 June 2022 |
and 31 May 2023 | - | 20,000 | 20,000 |
NET BOOK VALUE |
At 31 May 2023 | 9,618,140 |
At 31 May 2022 | 9,618,140 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Percentage of ordinary shares held |
Arable farming |
Worth Farms Limited | 100 |
Sourcing, packing and selling of produce |
Manor Fresh Limited | 50 |
AH Worth Limited | 100 |
Anglia Growing Partnership Limited | 50 |
A. H. Worth (Fosdyke) Limited | 100 |
Property ownership |
AHW (Property) Co Limited | 100 |
Holding companies |
Sansbury Bailey Holdings Limited | 100 |
AHW (Operating) Co Limited | 100 |
BQV Produce Limited | 100 |
Dormant |
A H Worth (Farms) Limited | 100 |
A H Worth (Fleet) Limited | 100 |
Tubergen Limited | 100 |
Greyfriars (UK) Limited | 100 |
Europa Produce Limited | 100 |
QV Foods Limited | 100 |
Pseedco Limited | 100 |
Fresh Approach Produce Limited | 100 |
Fresh Appeal Limited | 100 |
All of the companies above are incorporated in England and Wales. The registered office for all companies above is Fleet Estate Office, Manor Farm, Holbeach Hurn, Holbeach, Spalding, Lincolnshire, England, PE12 8LR. |
The financial statements in respect of the following companies for the period ended 31 May 2023 have not been audited as exemption has been claimed under section 479a of the Companies Act 2006. |
AHW (Operating) Co Limited |
AHW (Property) Co Limited |
BQV Produce Limited |
Sansbury Bailey Holdings Limited |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
13. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 June 2022 |
and 31 May 2023 | 5,227,000 |
NET BOOK VALUE |
At 31 May 2023 | 5,227,000 |
At 31 May 2022 | 5,227,000 |
Fair value at 31 May 2023 is represented by: |
£ |
Valuation in 2021 | 300,000 |
Cost | 4,927,000 |
5,227,000 |
A valuation carried out by R Longstaff in 2022 confirmed no material difference to the figure used by the directors in 2021. |
Company |
Total |
£ |
FAIR VALUE |
At 1 June 2022 |
and 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
A valuation carried out by R Longstaff in 2022 confirmed no material difference to the figure used by the directors in 2021. |
Fair value at 31 May 2023 is represented by: |
£ |
Valuation in 2021 | 300,000 |
Cost | 2,327,000 |
2,627,000 |
14. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 5,868,278 | 5,923,226 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
15. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 13,407,740 | 13,133,891 |
Amounts owed by group undertakings | - | - |
Amounts owed by participating interests | 10,476 | 144,296 | 62,344 | 152,047 |
Other debtors | 3,154,107 | 3,353,092 |
Tax | 6,704 | 66,061 |
Prepayments and accrued income | 1,432,572 | 477,412 |
18,011,599 | 17,174,752 |
Amounts falling due after more than one year: |
Amounts owed by group undertakings | - | - |
Amounts owed by participating interests | 823,848 | 1,066,328 | - | - |
823,848 | 1,066,328 |
Aggregate amounts | 18,835,447 | 18,241,080 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 139,388 | 139,388 |
Other loans (see note 18) | 132,000 | 132,000 |
Hire purchase contracts (see note 19) | 837,074 | 843,373 |
Trade creditors | 15,517,207 | 13,101,179 |
Amounts owed to group undertakings | - | - |
Taxation | 116,312 | 221,788 |
Other taxes and social security | 461,317 | 394,559 |
Other creditors | 1,560,143 | 2,309,591 |
Accruals and deferred income | 2,602,649 | 3,904,499 |
21,366,090 | 21,046,377 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 18) | 1,894,466 | 2,045,014 |
Other loans (see note 18) | 1,720,494 | 1,853,049 |
Hire purchase contracts (see note 19) | 1,016,465 | 1,919,482 |
4,631,425 | 5,817,545 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 139,388 | 139,388 |
Other loans | 132,000 | 132,000 |
271,388 | 271,388 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years | 1,894,466 | 2,045,014 |
Amounts falling due in more than five years: |
Repayable by instalments |
Other loans more than 5 years | 1,720,494 | 1,853,049 | - | - |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 837,074 | 843,373 |
Between one and five years | 1,016,465 | 1,919,482 |
1,853,539 | 2,762,855 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 273,352 | 214,473 |
Between one and five years | 1,016,518 | 1,117,090 |
1,289,870 | 1,331,563 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Company |
2023 | 2022 |
£ | £ |
Bank loans |
Details of security provided: |
The security charged under this borrowing is land at Holbeach Hurn and Fleet Bank together with Park Lodge and 1 & 2 Lowgate Road, and Hovenden Park Golf Club comprising of 545.565 acres. Title No's LL295305, LL296435, LL296436, LL296437 and LL296438. |
Composite company limited multilateral guarantee dated 19 September 2012 given by AH Worth and Company Limited, AHW (Operating) Co Limited and AHW (Property) Co Ltd. |
21. | FINANCIAL INSTRUMENTS |
Group | Group | Company | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Financial assets |
Financial assets | 20,012,404 | 23,667,995 | 24,078,509 | 22,295,430 |
Financial liabilities |
Financial liabilities | 26,351,088 | 26,863,922 | 4,617,281 | 5,401,580 |
Financial assets measured at amortised cost comprise trade debtors, amounts owed by the group, amounts owed by related party, other debtors and cash and cash equivalents. |
Financial liabilities measured at amortised costs comprise bank loans and overdrafts, trade creditors, amounts owed to group, amounts owed to related party, obligations under finance lease and hire purchase, other creditors and accruals. |
22. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 1,495,668 | 1,716,220 | 26,215 | 26,215 |
Group |
Deferred |
tax |
£ |
Balance at 1 June 2022 | 1,716,220 |
Credit to Income Statement during year | (220,552 | ) |
Balance at 31 May 2023 | 1,495,668 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
22. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 June 2022 |
Balance at 31 May 2023 |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary 'A' shares | £1.00 | 10,000 | 10,000 |
Ordinary 'B' Shares | £1.00 | 45,779 | 45,779 |
55,779 | 55,779 |
24. | RESERVES |
Group |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 June 2022 | 39,051,773 | 4,994,000 | 34,461 | 44,080,234 |
Deficit for the year | (3,514,618 | ) | - | - | (3,514,618 | ) |
Dividends | (81,028 | ) | - | - | (81,028 | ) |
At 31 May 2023 | 35,456,127 | 4,994,000 | 34,461 | 40,484,588 |
Company |
Revaluation |
reserve |
£ |
At 1 June 2022 |
and 31 May 2023 |
25. | CAPITAL COMMITMENTS |
2023 | 2022 |
£ | £ |
Contracted but not provided for in the |
financial statements | 134,221 | 134,221 |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
26. | RELATED PARTY DISCLOSURES |
During the year the group sold goods and services to Manor Fresh Limited, a joint venture of the parent company amounting to £4,130,340 (2022 - £2,231,989) and purchased goods amounting to £965,288 (2022 - £1,001,415). All their sales and purchases were on a normal commercial basis. At the year end Manor Fresh Limited owed the group £36,441 (2022 - £194,960) and the group owed Manor Fresh Limited £88,309 (2022 - £149,827). |
During the year the company sold goods and services to Manor Fresh Limited, a joint venture of the parent company, amounting to £3,674,435 (2022 - £1,818,010). All these sales and purchases were on a normal commercial basis. At the year end the company was owed £110,056 (2022 - £152,047) by Manor Fresh Limited. |
During the year the group sold goods and services to Anglia Growing Partnership Limited, a joint venture of AH Worth Limited, amounting to £nil (2022 - £nil) and purchased goods amounting to £27,862 (2022 - £83,450). At the year end Anglia Growing Partnership Limited owed the group £823,848 (2022 - £1,048,848). The group has seen an improvement in trade of its joint venture during the last financial year, and expects them to repay the amount in full. However, the directors have taken the prudent approach for the financial year of continuing to maintain a provision in relation to this amount. |
D R Worth is a director of Holbeach Marsh Co-operative Limited. During the year the group made sales to Holbeach Marsh Co-operative Limited of £348,662 (2022 - £330,392). At the year end Holbeach Marsh Co-operative Limited owed £nil (2022 - £476) to the group. During the year the company made sales to Holbeach Marsh Co-operative Limited of £1,920 (2022 - £nil). At the year end the company was owed £1,920 (2022 - £nil) from Holbeach Marsh Co-operative Limited. |
D R Worth is a director of Holbeach Biogas Limited. During the year the group made sales to Holbeach Biogas Limited of £677,562 (2022 - £529,079). At the year end the group was owed £12,088 (2022 - £7,424) from Holbeach Biogas Limited. During the year the company made sales to Holbeach Biogas Limited of £53,633 (2022 - £80,450). At the year end there were no balances outstanding to/from Holbeach Biogas Limited. |
H C Baker, a director of Worth Farms Limited, is also a director and shareholder of HUB Rural Limited. |
During the year the group made purchases of £20,446 (2022 - £3,780) from HUB Rural Limited for consultancy work. There are no balances owing to HUB Rural Limited at the year end. During the year the company made purchases of £nil (2022 - £3,300) from HUB Rural Limited for consultancy work. At the year end the company owed £nil (2022 - £nil) to HUB Rural Limited. |
SLW Property Services Limited is owned and controlled by the wife of D R Worth (a director of the company). During the year the group made purchases of £166,168 (2022 - £176,288) for property administration and accounting services from SLW Property Services Limited. At the year end the group owed £nil (2022 - £23,810) to SLW Property Services Limited. During the year the company made purchases of £151,481 (2022 - £160,475) for property administration and accounting services from SLW Property Services Limited. At the year end the company owed £nil (2022 - £22,508) to SLW Property Services Limited. |
27. | POST BALANCE SHEET EVENTS |
On 18th July 2023, the group completed the purchase of Emmett Farming Group, which was financed by working capital. |
28. | ULTIMATE CONTROLLING PARTY |
The Company is controlled by the Worth family by virtue of the different shareholdings in place. |
29. | RESERVES |
Called up share capital represents the nominal value of shares that have been issued. |
The revaluation reserve represents amounts transferred following revaluation of the company's tangible fixed assets. |
The capital redemption reserve represents amounts transferred following the redemption of the company's own shares. |
The profit and loss account includes all current and prior period retained profits and losses, and any surpluses arising from valuation of investment property. |
A H WORTH AND COMPANY LIMITED (REGISTERED NUMBER: 00451065) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MAY 2023 |
30. | PENSION COMMITMENTS |
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £501,111 (2022 - £517,102). Contributions totalling £110,168 (2022 - £77,803) were payable to the fund at the balance sheet date. |