Company registration number 00696016 (England and Wales)
CHERWELL VALLEY SILOS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
CHERWELL VALLEY SILOS LIMITED
COMPANY INFORMATION
Directors
A P Cherry
G J Nicholls
K J Matthews
Secretary
K J Matthews
Company number
00696016
Registered office
Twyford
Banbury
Oxfordshire
United Kingdom
OX17 3AA
Auditor
Ellacotts Audit Services Limited
Countrywide House
23 West Bar
Banbury
Oxfordshire
England
OX16 9SA
Bankers
National Westminster Bank Plc
1 Town Hall Buildings
Bridge Street
Banbury
Oxfordshire
OX16 5JS
CHERWELL VALLEY SILOS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
CHERWELL VALLEY SILOS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report for the year ended 30 June 2023.

Principal activities, business review and risks

The principal activities of the Company are the processing and sale of cooked oilseed products, and grain trading.

 

The Company had a better trading performance compared to the last financial year and shows an operating profit of £685k compared to an operating profit of £566k in the previous year. In 2021/22 the Company's commercial property was transferred to Cherwell Valley Business Park Limited. The reported profit in 2021/22 includes a contribution from the Commercial Property division of £170k, so year on year the core business profitability has increased by £289k.

The Company is in a strong financial position and retains support from its bankers.

The Board of Directors regularly reviews the Company's exposure to various risks and uncertainties inherent within the business. The principal risks and uncertainties faced by the Company are movement in commodity prices and changes in the bank Base Rate.

 

The Company reduces the commodity price movement risk by hedging on the futures markets. It is also exposed to some interest rate risk on its non-fixed bank facilities, which are regularly reviewed by the Board of Directors. 'Liquidity' risk is managed by maintaining a balance between the continuity and flexibility of funding through the Company's loan and invoice discounting facilities, which ensures that there are sufficient funds for ongoing operations. The Company minimises its exposure to credit risk by ensuring its debtors are well managed.

 

The Company is optimistic for ongoing success in the future, and continues to focus on developing its property assets, growth of its core business and tight control of operational costs.

 

By order of the board

K J Matthews
Secretary
13 February 2024
CHERWELL VALLEY SILOS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A P Cherry
G J Nicholls
K J Matthews
Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid.

Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Auditor

Ellacotts Audit Services Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CHERWELL VALLEY SILOS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

By order of the board
K J Matthews
Secretary
13 February 2024
CHERWELL VALLEY SILOS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHERWELL VALLEY SILOS LIMITED
- 4 -
Opinion

We have audited the financial statements of Cherwell Valley Silos Limited (the 'company') for the year ended 30 June 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

CHERWELL VALLEY SILOS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHERWELL VALLEY SILOS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

As part of an audit in accordance with ISAs (UK),we exercise professional judgment and maintain professional scepticism throughout the audit. We also performed the following procedures:

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

CHERWELL VALLEY SILOS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHERWELL VALLEY SILOS LIMITED
- 6 -

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Charlotte Toemaes BSc FCA
Senior Statutory Auditor
For and on behalf of Ellacotts Audit Services Limited
Chartered Accountants
Statutory Auditor
Countrywide House
23 West Bar
Banbury
Oxfordshire
England
OX16 9SA
28 February 2024
2024-02-28
CHERWELL VALLEY SILOS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
30,189,193
25,472,037
Cost of sales
(28,410,917)
(23,530,471)
Gross profit
1,778,276
1,941,566
Administrative expenses
(1,094,242)
(1,375,639)
Operating profit
4
684,034
565,927
Interest receivable and similar income
7
6,818
242
Interest payable and similar expenses
8
(24,401)
(59,314)
Profit before taxation
666,451
506,855
Tax on profit
9
(44,965)
(138,633)
Profit for the financial year
621,486
368,222
CHERWELL VALLEY SILOS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
2023
2022
£
£
Profit for the year
621,486
368,222
Other comprehensive income
Cash flow hedges (loss)/gain arising in the year
(133,143)
267,430
Total comprehensive income for the year
488,343
635,652
CHERWELL VALLEY SILOS LIMITED
BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
210,255
266,524
Investments
11
200
200
210,455
266,724
Current assets
Stocks
14
652,509
977,289
Debtors
15
6,273,802
5,497,289
Cash at bank and in hand
1,560,552
1,399,697
8,486,863
7,874,275
Creditors: amounts falling due within one year
17
(3,094,937)
(2,900,508)
Net current assets
5,391,926
4,973,767
Total assets less current liabilities
5,602,381
5,240,491
Creditors: amounts falling due after more than one year
18
(247,413)
(367,050)
Provisions for liabilities
Deferred tax liability
21
21,246
28,062
(21,246)
(28,062)
Net assets
5,333,722
4,845,379
Capital and reserves
Called up share capital
23
25,000
25,000
Hedging reserve
139,471
272,614
Profit and loss reserves
5,169,251
4,547,765
Total equity
5,333,722
4,845,379
The financial statements were approved by the board of directors and authorised for issue on 13 February 2024 and are signed on its behalf by:
A P Cherry
Director
Company registration number 00696016 (England and Wales)
CHERWELL VALLEY SILOS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
Share capital
Revaluation reserve
Hedging reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 July 2021
25,000
142,650
5,184
4,036,893
4,209,727
Year ended 30 June 2022:
Profit
-
-
-
368,222
368,222
Other comprehensive income:
Cash flow hedges gains
-
-
267,430
-
267,430
Total comprehensive income
-
-
267,430
368,222
635,652
Transfer on disposal of property
-
(142,650)
-
142,650
-
Balance at 30 June 2022
25,000
-
0
272,614
4,547,765
4,845,379
Year ended 30 June 2023:
Profit
-
-
-
621,486
621,486
Other comprehensive income:
Cash flow hedges gains
-
-
(133,143)
-
(133,143)
Total comprehensive income
-
-
(133,143)
621,486
488,343
Balance at 30 June 2023
25,000
-
0
139,471
5,169,251
5,333,722
CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
1
Accounting policies
Company information

Cherwell Valley Silos Limited is a private company limited by shares incorporated in England and Wales. The registered office is Twyford, Banbury, Oxfordshire, United Kingdom, OX17 3AA.

1.1
Accounting convention

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain fixed assets. The principal accounting policies adopted are set out below.

 

This is in accordance with applicable accounting standards as defined in Companies Act 2006.

 

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

 

The Company's business activities, together with the factors likely to affect its future developments and performance and the principal risks and uncertainties faced by it, are set out in the Strategic report on page 1 of the financial statements.

 

Consolidation

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of K J Cherry group. These consolidated financial statements are available from its registered office, Twyford, Banbury, OX17 3AA.

1.2
Going concern

The Company meets its day to day working capital requirements through an overdraft and invoice discounting facility provided by NatWest / RBS, who have been the Company's bankers for many years and with whom the Company has a solid and close working relationship.

 

The Directors therefore believe that the Company has sufficient resources to continue its various operations and, as a result, the Directors continue to adopt the 'going concern' basis of accounting in preparing the annual financial statements.

1.3
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Individual freehold property is revalued on a regular basis with the surplus or deficit on book value being transferred to the revaluation reserve, except that a deficit which is in excess of any previously recognised surplus over depreciated cost relating to the same property, or the reversal of such a deficit, is charged (or credited) to the profit and loss account.

 

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings freehold
- 4% - 10% straight line on buildings and nil on land
Plant and machinery
- 10% to 20% straight line
Fixtures, fittings & equipment
- 10% to 20% straight line
Motor vehicles
- 15% to 20% straight line

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.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). 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.

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.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 13 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities
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 receipts 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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.

CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

Hedge accounting

The company has entered into futures contracts to manage its exposure to commodity price changes in relation to forward contract commodities. These derivatives are measured at each reporting date. To the extent the hedge is effective, movements in fair value are recognised in Other Comprehensive Income and presented in a separate cash flow hedge reserve. Any ineffective portions of those movements are recognised in the Profit and Loss Account for the period.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.12
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 16 -
1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

The company operates defined contribution pension schemes for employees. The assets of the schemes are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit and loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit and loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements
Inventory

Inventory levels and values are constantly reviewed and should there be an indication of impairment or obsolescence, the inventory is written down to its assessed net realisable value.

CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 17 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover
Commodities Division
17,072,424
15,967,584
Property Division
-
413,398
Wholesale of Agricultural products
27,402,174
22,704,691
Interdivisional Sales
(14,285,405)
(13,613,636)
30,189,193
25,472,037

In the opinion of the directors, less than 1% of the turnover is attributable to markets outside the UK.

 

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,220
11,000
Depreciation of owned tangible fixed assets
43,445
135,556
Depreciation of tangible fixed assets held under finance leases
16,675
10,177
(Profit)/loss on disposal of tangible fixed assets
(1,600)
1,389
Operating lease charges
9,791
13,770
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Number of production staff
9
8
Number of admin staff (including directors)
13
14
Total
22
22

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
934,817
791,090
Social security costs
86,463
56,968
Pension costs
33,997
30,276
1,055,277
878,334
CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
5
Employees
(Continued)
- 18 -

The key management personnel of the company comprise the directors as listed on page 2. The total amount of employee benefits received by key management personnel for their services to the company was £257,128 (2022: £227,282).

6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
237,049
207,293
Company pension contributions to defined contribution schemes
20,079
19,989
257,128
227,282
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
123,482
91,650
Company pension contributions to defined contribution schemes
12,103
12,103
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
6,818
242
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
22,737
56,445
Other finance costs:
Interest on finance leases and hire purchase contracts
1,664
2,869
24,401
59,314
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
51,781
129,789
Adjustments in respect of prior periods
-
0
(1,480)
Total current tax
51,781
128,309
CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
9
Taxation
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
(6,816)
10,324
Total tax charge
44,965
138,633

The main rate of corporation tax increased from 19% to 25% with effect from 1 April 2023.

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
666,451
506,855
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
126,626
96,302
Tax effect of expenses that are not deductible in determining taxable profit
1,998
16,237
Adjustments in respect of prior years
-
0
(1,480)
Effect of change in corporation tax rate
11,447
-
0
Group relief
(88,290)
-
0
Depreciation in excess of capital allowances
-
0
17,250
Deferred tax adjustments
(6,816)
10,324
Tax expense for the year
44,965
138,633
CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 20 -
10
Tangible fixed assets
Land and buildings freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 July 2022
259,072
1,880,475
218,699
370,807
2,729,053
Additions
-
0
-
0
-
0
3,850
3,850
Disposals
-
0
-
0
-
0
(26,080)
(26,080)
At 30 June 2023
259,072
1,880,475
218,699
348,577
2,706,823
Depreciation and impairment
At 1 July 2022
156,642
1,850,757
212,246
242,884
2,462,529
Depreciation charged in the year
25,896
5,100
3,719
25,404
60,119
Eliminated in respect of disposals
-
0
-
0
-
0
(26,080)
(26,080)
At 30 June 2023
182,538
1,855,857
215,965
242,208
2,496,568
Carrying amount
At 30 June 2023
76,534
24,618
2,734
106,369
210,255
At 30 June 2022
102,430
29,718
6,453
127,923
266,524

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Plant and machinery
92,547
115,144
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
200
200
12
Subsidiaries

These financial statements are separate company financial statements for Cherwell Valley Silos Limited.

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking and country of
Nature of business
Class of
% Held
incorporation or residency
shareholding
Direct
Indirect
Cherwell Valley International Limited
England
Dormant
Ordinary
100.00
Plustotal Limited
England
Dormant
Ordinary
100.00
CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 21 -
13
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
139,471
272,614
14
Stocks
2023
2022
£
£
Raw materials and consumables
318,212
529,054
Finished goods and goods for resale
334,297
448,235
652,509
977,289
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,961,401
1,404,027
Amounts owed by group undertakings
481,110
10,709
Derivative financial instruments
139,471
272,614
Other debtors
3,223,254
3,472,132
Prepayments and accrued income
468,566
337,807
6,273,802
5,497,289

The trade debtors are subject to an invoice discounting agreement.

16
Derivative financial instruments

The company enters into forward contracts to buy or sell commodities. The company hedges against commodity price exposure by trading in commodity futures.

 

The forward contracts and related hedging instruments are due to complete between July 2023 and June 2024.

 

Where commodity futures are traded in Euros the company also purchases Euros to hedge against the movement in exchange rates.

 

The amount (£133,143) (2022: £267,430) has been recognised in other comprehensive income for the year as the movement in the current year.

 

The net position at the year end was an asset of £139,471 (2022: £272,614).

CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 22 -
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
19
278,085
284,685
Obligations under finance leases
20
20,038
25,802
Trade creditors
1,969,900
1,839,258
Corporation tax
51,781
129,789
Other taxation and social security
36,467
22,320
Other creditors
25,047
35,551
Accruals and deferred income
713,619
563,103
3,094,937
2,900,508

The bank overdraft and loans are secured by a mortgage debenture over certain assets of the company.

 

Hire purchase obligations are secured against the relevant tangible fixed assets.

 

The invoice discounting creditor is secured by way of a fixed and floating charge over the debtors of Cherwell Valley Silos Limited. The invoice discounting creditor is guaranteed by K J Cherry and Sons Ltd, the parent company.

18
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
19
241,667
341,667
Obligations under finance leases
20
5,746
25,383
247,413
367,050
19
Loans and overdrafts
2023
2022
£
£
Bank loans
341,667
441,667
Bank overdrafts
178,085
184,685
519,752
626,352
Payable within one year
278,085
284,685
Payable after one year
241,667
341,667

The bank loans are secured by a mortgage debenture over certain assets of the company.

CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 23 -
20
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
20,038
25,802
In two to five years
5,746
25,383
25,784
51,185

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

21
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated Capital Allowances
21,246
28,062
2023
Movements in the year:
£
Liability at 1 July 2022
28,062
Credit to profit or loss
(6,816)
Liability at 30 June 2023
21,246
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
33,997
30,276
23
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
25,000 Ordinary Shares of £1 each
25,000
25,000
CHERWELL VALLEY SILOS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 24 -
24
Operating lease commitments
Lessee

The operating leases represent leases to third parties. The leases are negotiated over terms of 1-4 years and rentals are fixed for 1-4 years. There are no options in place for either party to extend the lease terms.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
10,958
13,770
Between two and five years
-
0
10,958
10,958
24,728
25
Related party transactions
Transactions with related parties

As at 30 June 2023 Cherwell Valley Silos Limited was owed £3,154,333 (2022: £3,463,560) by Cherwell Valley Business Park Limited.

The company has taken advantage of the exemption available under FRS 102 from disclosing transactions with the KJ Cherry & Sons Holdings Limited group of companies on the basis that all subsidiaries are wholly owned.

26
Controlling party

The company's immediate parent undertaking is K J Cherry and Sons Limited (incorporated in England & Wales).

 

The company's ultimate parent undertaking is K J Cherry Holdings Limited, a limited company, whose registered office is Twyford, Banbury, Oxfordshire, OX17 3AA.

 

Copies of the consolidated financial statements may be obtained from their head office in Twyford, Banbury.

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