Company Registration No. NI017660 (Northern Ireland)
NORTH DOWN GRAIN LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
NORTH DOWN GRAIN LTD
COMPANY INFORMATION
Directors
Mr C Davidson
Mrs R Davidson
Mr P Davidson
Mr G Davidson
Secretary
Mrs R, Davidson
Company number
NI017660
Registered office
16 Tullykevin Road
Ballywalter
Co. Down
BT22 2NB
Auditor
Stanley Woods & Co
Alexander House
49 / 51 Church Street
Newtownards
Co Down
BT23 4AN
NORTH DOWN GRAIN LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
NORTH DOWN GRAIN LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

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

Review of the business

Considering the current state of the Agricultural sector, the results for the year and the financial position at the year end were considered satisfactory by the directors who expect continued growth in the foreseeable future.

 

Principal risks and uncertainties
The principal risk and uncertainties relate to the long-term future of the agriculture industry.
Development and performance
At the year end the company is in a good position to take advantage of the ongoing market conditions and to sustain it's market share.

On behalf of the board

Mr C Davidson
Director
26 July 2024
NORTH DOWN GRAIN LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

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

Principal activities

The principal activity of the company is the processing and manufacturing of fertiliser, animal feedstuffs and similar products.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £82,225. The directors do not recommend payment of a final dividend.

No preference dividends were paid.

Directors

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

Mr C Davidson
Mrs R Davidson
Mr P Davidson
Mr G Davidson
Market value of land and buildings

The company property was revalued by a commercial valuer and these values have been reflected in the attached accounts. The directors are of the opinion that these valuations are still valid in the current market and in their current usage.

Financial instruments
Treasury operations and financial instruments

The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company’s activities.

 

The company’s principal financial instruments include derivative financial instruments, the purpose of which is to manage currency risks and interest rate risks arising from the company’s activities, and bank overdrafts, loans and corporate bonds, the main purpose of which is to raise finance for the company’s operations. In addition, the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations. Derivative transactions which the company enters into principally comprise forward exchange contracts. In accordance with company’s treasury policy, derivative instruments are not entered into for speculative purposes.

Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the businesses.
Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.

NORTH DOWN GRAIN LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -
Foreign currency risk
The company's principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.
Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Research and development

The company has an ongoing policy of Research and Development to continually improve its operations.

Auditor

The auditor, Stanley Woods & Co, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor
(a) so far as the directors are aware, there is no relevant audit information of which the company's auditors are unaware, and

(b) they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr C Davidson
Director
26 July 2024
NORTH DOWN GRAIN LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -

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.

NORTH DOWN GRAIN LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NORTH DOWN GRAIN LTD
- 5 -

We have audited the financial statements of North Down Grain Ltd for the year ended 31 October 2023 set out on pages 8 to 22. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

 

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.

Respective responsibilities of directors and auditor

As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the annual report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit, the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements, and the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

NORTH DOWN GRAIN LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NORTH DOWN GRAIN LTD
- 6 -
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 and the Directors' Report.

 

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

 

Mr William McAdam FCCA (Senior Statutory Auditor)
for and on behalf of Stanley Woods & Co
26 July 2024
Chartered Accountants
Statutory Auditor
Alexander House
49 / 51 Church Street
Newtownards
Co Down
BT23 4AN
NORTH DOWN GRAIN LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
28,431,680
33,795,766
Cost of sales
(25,380,515)
(30,987,159)
Gross profit
3,051,165
2,808,607
Distribution costs
(1,658,428)
(1,578,511)
Administrative expenses
(998,855)
(794,820)
Operating profit
4
393,882
435,276
Interest payable to group undertakings
7
-
-
Interest payable and similar expenses
7
(40,634)
(10,335)
Profit before taxation
353,248
424,941
Tax on profit
8
(116,675)
1,597
Profit for the financial year
236,573
426,538
Retained earnings brought forward
5,259,980
4,940,697
Dividends
9
(82,225)
(107,255)
Distributions to parent charity under gift aid
9
-
0
-
0
Retained earnings carried forward
5,414,328
5,259,980

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

NORTH DOWN GRAIN LTD
BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,231,180
2,643,874
Current assets
Stocks
12
3,872,494
6,616,175
Debtors falling due after more than one year
13
-
0
-
0
Debtors - deferred tax
16
-
0
-
0
Debtors
13
2,988,604
3,205,105
Cash at bank and in hand
500,394
26,685
7,361,492
9,847,965
Creditors: amounts falling due within one year
14
(3,830,270)
(7,000,460)
Net current assets
3,531,222
2,847,505
Total assets less current liabilities
5,762,402
5,491,379
Provisions for liabilities
Deferred tax liability
16
347,874
231,199
Defined benefit pension liability
17
-
0
-
0
(347,874)
(231,199)
Net assets
5,414,528
5,260,180
Capital and reserves
Called up share capital
18
200
200
Profit and loss reserves
5,414,328
5,259,980
Total equity
5,414,528
5,260,180

The notes on pages 11 to 22 form part of these financial statements.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 26 July 2024 and are signed on its behalf by:
Mr C Davidson
Director
Company registration number NI017660 (Northern Ireland)
NORTH DOWN GRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
1
Accounting policies
Company information

North Down Grain Ltd is a private company limited by shares incorporated in Northern Ireland. The registered office is 16 Tullykevin Road, Ballywalter, Co. Down, BT22 2NB.

1./*1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1./*1
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.

1./*1
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.

Revenue from a contract to provide services is recognised by reference to the stage of completion of the contract. The stage of completion of the contract is determined by reference to the hours worked as a proportion of total hours to be worked at the reporting date.

1./*1
Tangible fixed assets

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

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

Land and buildings Freehold
Buildings only - 5% on a straight-line basis
Plant and machinery
20% per annum
Motor vehicles
25% per annum
No depreciation is provided in respect of freehold land.
NORTH DOWN GRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 10 -

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./*1
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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.

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./*1
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.

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./*1
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.

NORTH DOWN GRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 11 -
1./*1
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.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

NORTH DOWN GRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1./*1
Equity instruments

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

1./*1
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.

1./*1
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.

NORTH DOWN GRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 13 -
Deferred tax

The accounting policy in respect of deferred tax reflects the requirements of FRS19 - Deferred tax. Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

1./*1
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./*1
Retirement benefits
The company operates a defined contribution pension scheme. The pension costs charged in the financial statements represent the contributions payable by the company during the year in accordance with SSAP 24.
1./*1
Leases

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.

1./*1
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
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.

NORTH DOWN GRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 14 -
3
Turnover

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

2023
2022
£
£
Turnover analysed by class of business
Fertilisers etc
23,236,635
29,404,105
Labour and haulage contracts etc
3,706,109
2,877,180
Grain and animal feedstuffs
1,275,145
1,380,666
Other Income
213,791
133,815
28,431,680
33,795,766
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
5,500
5,500
Depreciation of owned tangible fixed assets
395,167
249,988
Depreciation of tangible fixed assets held under finance leases
5,280
6,600
Profit on disposal of tangible fixed assets
(43,355)
(20,000)
Operating lease charges
805,000
812,200
5
Employees

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

2023
2022
Number
Number
Administration, including directors
9
7
Production
33
29
Sales & distribution
10
12
Total
52
48

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,510,892
1,342,535
Social security costs
142,052
129,414
Pension costs
53,289
51,479
1,706,233
1,523,428
NORTH DOWN GRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 15 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
33,480
33,480
Company pension contributions to defined contribution schemes
10,000
10,000
43,480
43,480

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).

7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
40,634
10,075
Other finance costs:
Other interest
-
0
260
40,634
10,335
8
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
-
0
(29,449)
Deferred tax
Origination and reversal of timing differences
33,185
27,852
Changes in tax rates
83,490
-
0
Total deferred tax
116,675
27,852
Total tax charge/(credit)
116,675
(1,597)
NORTH DOWN GRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
8
Taxation
(Continued)
- 16 -

The actual charge/(credit) 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
353,248
424,941
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
88,312
80,739
Tax effect of utilisation of tax losses not previously recognised
(161,633)
-
0
Unutilised tax losses carried forward
-
0
152,376
Effect of change in corporation tax rate
83,490
-
0
Permanent capital allowances in excess of depreciation
58,321
(191,477)
Depreciation on assets not qualifying for tax allowances
15,000
11,400
Deferred tax adjustments in respect of prior years
33,185
(54,635)
Taxation charge/(credit) for the year
116,675
(1,597)
9
Dividends
2023
2022
£
£
Interim paid
82,225
107,255
NORTH DOWN GRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 17 -
10
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 November 2022
2,115,000
3,675,013
179,544
5,969,557
Additions
-
0
131,500
63,898
195,398
Disposals
-
0
(294,800)
-
0
(294,800)
At 31 October 2023
2,115,000
3,511,713
243,442
5,870,155
Depreciation and impairment
At 1 November 2022
1,260,000
2,020,028
45,655
3,325,683
Depreciation charged in the year
60,000
302,460
37,987
400,447
Eliminated in respect of disposals
-
0
(87,155)
-
0
(87,155)
At 31 October 2023
1,320,000
2,235,333
83,642
3,638,975
Carrying amount
At 31 October 2023
795,000
1,276,380
159,800
2,231,180
At 31 October 2022
855,000
1,654,985
133,889
2,643,874

The carrying value of land and buildings comprises:

2023
2022
£
£
Freehold
795,000
855,000

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
21,120
26,400

The freehold and leasehold land and buildings were valued on an open market basis by the Robert Wilson Estate Agency, a firm of independent Chartered Surveyors.

Property
2023
2022
£
£
Cost
1,409,187
1,409,187
Accumulated depreciation
(793,169)
(792,369)
Carrying value
616,018
616,818
NORTH DOWN GRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
12
Stocks
2023
2022
£
£
Raw materials and consumables
3,872,494
6,616,175
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,500,510
2,416,935
Corporation tax recoverable
51
51
Other debtors
1,409,553
775,350
Prepayments and accrued income
78,490
12,769
2,988,604
3,205,105
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Debenture loans
15
-
0
-
0
Bank loans and overdrafts
15
936,490
593,173
Bills of exchange
15
-
0
-
0
Other borrowings
15
-
0
-
0
Trade creditors
546,623
5,133,347
Taxation and social security
23,473
36,576
Other creditors
2,323,684
1,237,364
3,830,270
7,000,460
15
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
936,490
593,173
Payable within one year
936,490
593,173

The bank loans and overdrafts are secured by fixed charges over the company property and floating charges over the company assets.

The company loans are repayable within five years.

 

NORTH DOWN GRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 19 -
16
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
359,045
319,320
Tax losses
(80,916)
(152,376)
Revaluations
69,745
64,255
347,874
231,199
2023
Movements in the year:
£
Liability at 1 November 2022
231,199
Charge to profit or loss
33,185
Effect of change in tax rate - profit or loss
83,490
Liability at 31 October 2023
347,874

The deferred tax liability set out above is expected to reverse within 3 years and relates to accelerated capital allowances that are expected to mature within the same period.

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
53,289
51,479

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.

18
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary Shares of £1 each
100
100
NORTH DOWN GRAIN LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
18
Share capital
(Continued)
- 20 -
Preference share capital
Issued and fully paid
100 Redeemable Preference Shares of £1 each
100
100
Preference shares classified as equity
100
100
Total equity share capital
200
200
19
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company in respect of a commercial storage yard and the fertiliser manufacturing franchise and facility.

20
Directors' transactions

Dividends totalling £82,225 (2022 - £107,255) were paid in the year in respect of shares held by the company's directors.

21
Ultimate controlling party

The ultimate controlling parties are the directors.

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