Company registration number 04295450 (England and Wales)
BARFOOT FARMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BARFOOT FARMS LIMITED
COMPANY INFORMATION
Directors
Mr P Barfoot
Mr N Lake
Mr J Marks
Mr N Cairns
Company number
04295450
Registered office
Sefter Farm
Pagham Road
Bognor Regis
West Sussex
United Kingdom
PO21 3PX
Auditor
Azets Audit Services
Carnac Place
Cams Hall Estate
Fareham
Hampshire
United Kingdom
PO16 8UY
BARFOOT FARMS 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 - 26
BARFOOT FARMS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

Barfoot Farms had an extremely challenging 2022 with extreme drought conditions and a substantial increase in input costs due to the rises in inflation brought about by the end of COVID and Russia’s invasion of the Ukraine.

2023 proved to be much more benign with more normal climatic conditions and some easing in inflationary pressures (except on labour costs). Turnover has recovered and is up to £19.2M from £16.3M in 2022. Profit was supported by the reduction in intercompany debt with our sister company Barfoots of Botley Ltd, rising from a loss of £803k in 2022 to a profit of £4.3M in 2023.

Weather makes any future predictions of profitability very difficult as it has a very large impact on the outturn of any season, but the company has a wide spread of products and is confident it will continue to deal with the effects of any form of uncertainty that may present itself.

We continue to struggle with the ongoing shortages of labour created by Brexit and the end of freedom of movement.

Principal risks and uncertainties

Our key areas of risk and uncertainty include;

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Interest rate risk

The group finances it operations through retained profit and borrowing. The group’s exposure to interest rate fluctuations on its borrowing is managed through the support of related party lenders.

On behalf of the board

Mr J Marks
Director
11 April 2024
BARFOOT FARMS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of farming and managing the company's land and buildings.

Results and dividends

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

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr P Barfoot
Mr N Lake
Mr J Marks
Mr N Cairns
Future developments

Future developments are set out in the Strategic Report.

Statement of directors' responsibilities

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

 

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

 

 

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.

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.

BARFOOT FARMS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
Mr J Marks
Director
11 April 2024
BARFOOT FARMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BARFOOT FARMS LIMITED
- 4 -
Opinion

We have audited the financial statements of Barfoot Farms Limited (the 'company') for the year ended 31 December 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:

BARFOOT FARMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARFOOT FARMS 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.

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.

BARFOOT FARMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BARFOOT FARMS LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 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.

Zara Hogg FCA, BA (Hons)
Senior Statutory Auditor
For and on behalf of Azets Audit Services
11 April 2024
Chartered Accountants
Statutory Auditor
Carnac Place
Cams Hall Estate
Fareham
Hampshire
United Kingdom
PO16 8UY
BARFOOT FARMS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
19,176,635
16,334,792
Cost of sales
(13,851,133)
(13,712,708)
Gross profit
5,325,502
2,622,084
Administrative expenses
(6,188,508)
(5,746,239)
Other operating income
2,281,231
2,411,187
Exceptional item
4
2,000,000
-
0
Operating profit/(loss)
5
3,418,225
(712,968)
Interest receivable and similar income
9
1,005,884
225
Interest payable and similar expenses
10
(142,123)
(90,751)
Profit/(loss) before taxation
4,281,986
(803,494)
Tax on profit/(loss)
11
(380,257)
134,186
Profit/(loss) for the financial year
3,901,729
(669,308)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BARFOOT FARMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit/(loss) for the year
3,901,729
(669,308)
Other comprehensive income
-
-
Total comprehensive income for the year
3,901,729
(669,308)
BARFOOT FARMS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
13
27,165
32,627
Tangible assets
14
10,080,518
9,892,788
Biological assets
15
1,700,549
1,352,070
Investments
16
1
1
11,808,233
11,277,486
Current assets
Stocks
18
1,519,881
2,117,431
Debtors
20
2,024,611
3,153,700
Cash at bank and in hand
41,031
291,425
3,585,523
5,562,556
Creditors: amounts falling due within one year
21
(2,081,083)
(7,415,296)
Net current assets/(liabilities)
1,504,440
(1,852,740)
Total assets less current liabilities
13,312,673
9,424,746
Creditors: amounts falling due after more than one year
22
-
0
(50,160)
Provisions for liabilities
Deferred tax liability
24
371,771
335,413
(371,771)
(335,413)
Net assets
12,940,902
9,039,173
Capital and reserves
Called up share capital
27
33,154
33,154
Revaluation reserve
28
742,812
742,812
Profit and loss reserves
28
12,164,936
8,263,207
Total equity
12,940,902
9,039,173
The financial statements were approved by the board of directors and authorised for issue on 11 April 2024 and are signed on its behalf by:
Mr J Marks
Director
Company Registration No. 04295450
BARFOOT FARMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
33,154
742,812
8,932,515
9,708,481
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(669,308)
(669,308)
Balance at 31 December 2022
33,154
742,812
8,263,207
9,039,173
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
3,901,729
3,901,729
Balance at 31 December 2023
33,154
742,812
12,164,936
12,940,902
BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Barfoot Farms Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sefter Farm, Pagham Road, Bognor Regis, West Sussex, United Kingdom, PO21 3PX.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.

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 company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Barfoot Farms Limited is a wholly owned subsidiary of Posbrook Holdings Limited and the results of Barfoot Farms Limited are included in the consolidated financial statements of Posbrook Holdings Limited which are available from Sefter Farm, Pagham Road, Bognor Regis, West Sussex, England, PO21 3PX.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The business and the wider Group to which it belongs continue to maintain strong reserves and have a robust asset base and as a result we remain confident the company has the ability to continue as a going concern for a period of 12 months from the date of approving these financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
33% straight line basis
Entitlements
over 1 to 10 years (dependent on entitlement)
1.5
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% straight line basis
Leasehold land and buildings
10% straight line basis
Plant and equipment
10% - 25% straight line basis
Fixtures and fittings
15% - 33% straight line basis
Motor vehicles
20% - 33% straight line basis

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.

1.6
Biological assets

Biological assets are recognised in accordance with FRS 102, categorised as short or long term depending upon the product lifecycle.

 

Biological assets which will produce more than one crop over a number of years are classified as long term biological assets. These assets are mainly in respect of Asparagus . These biological assets are valued at cost less impairment and depreciation. Depreciation is provided over an expected life of 8 years.

 

All other biological assets, which will produce a single crop, are classified as short term biological assets. These biological assets are valued at cost less impairment.

BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.7
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.

1.8
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

1.9
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.

1.10
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.

BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

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

 

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or 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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Determine whether leases entered into are operating or finance leases

These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Determine whether there are any indicators of impairments of the company's assets

Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

Determine whether borrowings are classed as current or non-current borrowings

These decisions depend on the cash flow requirements of the company and whether the borrowings in the company can be repaid.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets

Tangible fixed assets, other than land and buildings, are depreciated over their useful lives, taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into consideration. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

 

Land is not depreciated in accordance with FRS 102. Buildings, excluding separately identified components, are not depreciated, however are reviewed annually for impairment. It is the company's practice to maintain these assets in a continual state of sound repair and make improvements thereto from time to time. The life of the asset is considered to be so long and residual value so high that depreciation is insignificant and any permanent diminution in value would be recognised in profit or loss for the year.

Stock

Stock is reviewed annually for impairment and a stock provision is provided for accordingly on a line by line basis. Condition of stock is reviewed to determine if it is no longer suitable for its intended use.

Biological assets

Biological assets are reviewed annually to determine whether they constitute a fixed or current asset, this assessment considers the likely period to generating revenue for the entity. The cost model used for valuing the biological assets involves a reasonable estimate by the directors into the usage and allocation of resources in getting the biological asset into it's year end condition.

BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
19,176,635
16,334,792
2023
2022
£
£
Other revenue
Interest income
5,884
225
Dividends received
1,000,000
-
Grants received
229,048
317,313
Rent receivable
1,026,241
1,033,011
Rent receivable from group
286,996
286,996
Farm - Labour supplied
168,139
173,068
Farm - Tractor rental income
40,308
40,233
Management charge
500,000
500,000
Sundry income
30,499
60,566
4
Exceptional item

Barfoots of Botley Limited released Barfoot Farms Limited from its obligation to repay £2m of the existing loan between the 2 companies, by way of a formal Deed of Release dated 20 December 2023.

 

 

5
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange gains
(104)
(1,464)
Research and development costs
(503)
-
Government grants
(229,048)
(317,313)
Depreciation of owned tangible fixed assets
957,802
872,326
Depreciation of tangible fixed assets held under finance leases
154,029
139,686
Profit on disposal of tangible fixed assets
(9,578)
(54,982)
Amortisation of intangible assets
5,462
3,900
Operating lease charges
3,591,635
3,521,983
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
36,225
27,370

The remuneration receieved by the auditor for other services are disclosed in the consolidated financial statements of the company's parent, Posbrook Holdings Limited.

BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
7
Employees

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

2023
2022
Number
Number
Production
113
135
Administration and support
15
14
Directors
2
2
Total
130
151

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,281,340
5,810,008
Social security costs
684,341
703,996
Pension costs
49,512
49,604
6,015,193
6,563,608
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
600,095
582,931
Company pension contributions to defined contribution schemes
3,988
3,820
604,083
586,751
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
429,163
413,961
BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
9
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
5,884
225
Income from fixed asset investments
Income from shares in group undertakings
1,000,000
-
0
Total income
1,005,884
225
10
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
142,123
90,751
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
343,899
-
0
Adjustments in respect of prior periods
-
0
61,749
Group tax relief
-
0
(240,287)
Total current tax
343,899
(178,538)
Deferred tax
Origination and reversal of timing differences
36,358
44,352
Total tax charge/(credit)
380,257
(134,186)
BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
(Continued)
- 19 -

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

2023
2022
£
£
Profit/(loss) before taxation
4,281,986
(803,494)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,007,123
(152,664)
Tax effect of expenses that are not deductible in determining taxable profit
6,839
5,008
Tax effect of income not taxable in determining taxable profit
(707,000)
(1,052)
Permanent capital allowances in excess of depreciation
33,995
(10,235)
Under/(over) provided in prior years
39,485
61,749
Deferred tax adjustments in respect of prior years
-
0
(62,680)
Gross deferred tax rate movement
(185)
25,688
Taxation charge/(credit) for the year
380,257
(134,186)
13
Intangible fixed assets
Software
Entitlements
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
7,030
38,466
45,496
Amortisation and impairment
At 1 January 2023
586
12,283
12,869
Amortisation charged for the year
2,148
3,314
5,462
At 31 December 2023
2,734
15,597
18,331
Carrying amount
At 31 December 2023
4,296
22,869
27,165
At 31 December 2022
6,444
26,183
32,627
BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
14
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
7,892,709
612,225
7,864,972
346,425
740,827
17,457,158
Additions
21,004
-
0
1,398,666
-
0
94,563
1,514,233
Disposals
-
0
-
0
(453,057)
-
0
-
0
(453,057)
At 31 December 2023
7,913,713
612,225
8,810,581
346,425
835,390
18,518,334
Depreciation and impairment
At 1 January 2023
1,091,145
495,291
5,448,621
153,906
375,407
7,564,370
Depreciation charged in the year
102,640
24,939
784,577
63,170
136,505
1,111,831
Eliminated in respect of disposals
-
0
-
0
(238,385)
-
0
-
0
(238,385)
At 31 December 2023
1,193,785
520,230
5,994,813
217,076
511,912
8,437,816
Carrying amount
At 31 December 2023
6,719,928
91,995
2,815,768
129,349
323,478
10,080,518
At 31 December 2022
6,801,564
116,934
2,416,351
192,519
365,420
9,892,788

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 equipment
280,544
406,674
Motor vehicles
35,741
63,640
316,285
470,314
BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
15
Biological assets
£
Cost
At 1 January 2023
2,084,517
Correction
352,532
Additions - purchases
594,041
Disposals
(253,669)
At 31 December 2023
2,777,421
Depreciation and impairment
At 1 January 2023
732,447
Correction
352,532
Depreciation charged for the year
245,562
Disposals
(253,669)
At 31 December 2023
1,076,872
Carrying amount
At 31 December 2023
1,700,549
At 31 December 2022
1,352,070

The correction to Cost and Accumulated depreciation arises from assets incorrectly shown as disposed in the previous year. There is no impact on opening reserves in this respect.

16
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
17
1
1
17
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Barfoot Energy Limited
England and Wales
Production of electricity from anaerobic digestion
Ordinary shares
100.00
BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
18
Stocks
2023
2022
Notes
£
£
Raw materials and consumables
980,275
1,622,504
Biological asset
19
539,606
494,927
1,519,881
2,117,431
19
Biological assets (current)
2023
2022
£
£
Opening carrying amount
494,927
394,970
Purchases / inputs
10,731,409
11,055,714
Sales / COS transfers
(10,686,730)
(10,955,757)
Closing carrying amount
539,606
494,927
20
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
685,571
264,637
Corporation tax recoverable
255,204
214,829
Amounts owed by group undertakings
500,150
547,457
Other debtors
260,653
1,524,862
Prepayments and accrued income
323,033
601,915
2,024,611
3,153,700
21
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
23
113,535
216,620
Trade creditors
304,566
486,149
Amounts owed to group undertakings
213,489
5,975,000
Corporation tax
-
0
61,749
Other taxation and social security
67,754
62,713
Deferred income
25
10,000
-
0
Other creditors
675,890
48,339
Accruals and deferred income
695,849
564,726
2,081,083
7,415,296
BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
22
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
23
-
0
50,160
23
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
113,535
216,620
In two to five years
-
0
50,160
113,535
266,780

Finance lease payments represent rentals payable by the company for certain items of plant and machinery and motor vehicles, specifically harvesters and pick up trucks. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
371,771
335,413
2023
Movements in the year:
£
Liability at 1 January 2023
335,413
Charge to profit or loss
36,358
Liability at 31 December 2023
371,771
25
Deferred income
2023
2022
£
£
Arising from Government Grant
10,000
-
BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
26
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
49,512
49,604

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Contributions totalling £10,412 (2022 - £10,456) were payable to the scheme at the end of the year and are included in creditors.

27
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
33,154
33,154
33,154
33,154
28
Reserves
Share premium

The share premium reserve represents the difference between the par value of the shares issued and the subscription or issue price.

Revaluation reserve

The revaluation reserve represents the excess of fair value to historic cost of land that was subsequently transferred to freehold land as permitted under Triennial Review 2017.

Profit and loss reserves

The profit and loss account represents all accumulated net gains and losses.

29
Operating lease commitments
Lessee

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
2,362,192
2,055,720
Between two and five years
1,166,118
1,614,260
In over five years
346,779
334,512
3,875,089
4,004,492
Lessor

The company holds land which is rented to group and third parties. These non-cancellable leases have remaining terms of not later than one year. All leases include a provision for five-yearly upward rent reviews according to prevailing market conditions.

BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
29
Operating lease commitments
(Continued)
- 25 -

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2023
2022
£
£
Within one year
244,406
243,964
30
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
-
1,757,538
31
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Subsidiaries
1,448,530
512,143
20,910
16,741
Other related parties
20,936,898
16,172,319
569,218
663,301
2023
2022
Amounts due to related parties
£
£
Subsidiaries
1,048
13,390
Other related parties
844,814
5,993,843

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Subsidiaries
150
1,260
Other related parties
469,247
537,042
Other information
BARFOOT FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
31
Related party transactions
(Continued)
- 26 -

Summary of transactions with other related parties

Other related parties are companies under common control.

Sales and purchases between other related parties are made at normal market prices. Outstanding balances with these entities are unsecured, interest free and cash settlement is expected within the normal credit terms, with the exception of loans.

The company has not provided or benefited from any guarantees for any other related party receivables or payables.

 

Summary of transactions with subsidiaries

Subsidiaries are companies under the entities control.

Sales and purchases between subsidiaries are made at normal market prices. Outstanding balances with these entities are unsecured, interest free and cash settlement is expected within the normal credit terms, with the exception of loans.

The company has not provided or benefited from any guarantees for any subsidiaries receivables or payables.

32
Directors' transactions

As at the year end, Directors' Loan Accounts due to the Directors totalled £665,695 (2022 - £35,925). These loans are not subject to any interest and have no fixed repayment terms.

33
Ultimate controlling party

The company's immediate parent is Posbrook Holdings Limited, a company incorporated in England and Wales.

 

The financial statements for the parent company are available upon request from the company at Sefter Farm, Pagham Road, Bognor Regis, West Sussex, PO21 3PX.

The ultimate controlling party is Peter Barfoot, who is the sole shareholder of Posbrook Holdings Limited, the immediate parent company.

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