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Company registration number: 12465721







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 OCTOBER 2023


BECKETT'S BROOK HOLDING LIMITED






































img483c.png                        

 


BECKETT'S BROOK HOLDING LIMITED
 


 
COMPANY INFORMATION


Directors
N J Beckett 
W H M Beckett 




Registered number
12465721



Registered office
Orchard Farmhouse
Emms Lane

Brooks Green

Horsham

West Sussex

RH13 0TR




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

3000a Parkway

Whiteley

Hampshire

PO15 7FX





 


BECKETT'S BROOK HOLDING LIMITED
 



CONTENTS



Page
Group strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Consolidated statement of income and retained earnings
8
Consolidated statement of financial position
9
Company statement of financial position
10
Consolidated statement of cash flows
11
Consolidated analysis of net debt
12
Notes to the financial statements
13 - 30


 


BECKETT'S BROOK HOLDING LIMITED
 


 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

Introduction
 
The Directors' are please to present the accounts of the Group for the year, incorporating the two subsidiaries, Kinswood Eggs Limited and Kinsbrook Vineyards Limited.

Business review
 
The year under review was predominately dealing with and recovering from the Bird Flu pandemic that hit the farm in October 2022.  
The directors have implemented a strategy for maximising the return on assets held within the companies, which included converting various buildings on the farm for alternative use.  The directors are continuing to review the business and decide on the future activities to be undertaken, but this will include diversified traders to ensure that the business is not wholly reliant upon farming income.
The directors have assessed going concern and the ability of the outstanding liabilities to be met as they fall due and have continued to assess the business as a going concern.

Principal risks and uncertainties
 
The principal risks and uncertainties facing the businesses are those that impact on the stock and the commercial rental income generated by the business.  The Bird flu impact can be seen within these numbers at the year end in relation to Kinswood Eggs, whilst Kinsbrook Vineyard, whilst diversifying to running events, a cafe and farm shop, will always bear the risk of having a harvest impacted.  The rental income is reliant on the success of the tenants who lease the buildings.

Financial key performance indicators
 
The financial key performance indicators of the Group are as follows:
Revenue, whereby revenue assessed for the year was £2,181,428 (2022: £8,956,170).
Net assets, whereby the net assets at the end of the period was £2,800,508 (2022: £2,995,279).


This report was approved by the board and signed on its behalf.



W H M Beckett
Director

Date: 29 July 2024

Page 1

 


BECKETT'S BROOK HOLDING LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £194,771 (2022 - profit £490,637).

Particulars of dividends paid are detailed in the notes to the financial statements.

Directors

The directors who served during the year were:

N J Beckett 
W H M Beckett 

Future developments

The directors will continue to focus on the growth of the business, whilst ensuring they maintain a high quality of produce.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

Post year end the farming operations in Kinswood Eggs have yet to be restarted, the Directors are reviewing the position as to whether to re-stock, or look for alternative uses for the assets of that business.

Page 2

 


BECKETT'S BROOK HOLDING LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023

Auditors

Under section 487(2) of the Companies Act 2006Menzies LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board and signed on its behalf.
 





W H M Beckett
Director

Date: 29 July 2024

Page 3

 


BECKETT'S BROOK HOLDING LIMITED
 

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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BECKETT'S BROOK HOLDING LIMITED

Qualified opinion


We have audited the financial statements of Beckett's Brook Holding Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 October 2023, which comprise the Consolidated statement of income and retained earnings, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policiesThe 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report,
the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 October 2023 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for qualified opinion


Within Kinsbrook Vineyards Limited, a subsidiary Company, we have been unable to satisfy ourselves over the valuation of stocks of wine which are included in the balance sheet at £440,418 (2022 - £365,890). The reason for this was that with the very nature of wine production we obtained limited comfort over the allocation over the costs amongst the stages of the process. 
Consequently we were unable to determine whether any adjustments to this amount was necessary.
We were not appointed as auditor of the company until after 31 October 2021 and thus did not observe the counting of
physical inventories at the end of that year.
We were unable to satisfy ourselves by concerning the inventory quantities held at 31 October 2021, which are included in
the cost of sales opening position as at 31 October 2022 at £1,293,908, by using other audit procedures.
Our audit opinion on the the financial statements for the year ended 31 October 2022 was modified accordingly. Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current period's figures and the corresponding figures.


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 4

 


BECKETT'S BROOK HOLDING LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BECKETT'S BROOK HOLDING LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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


Arising solely from the limitation of the scope of our work relating to inventory, referred to above:
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
- we were unable to determine whether adequate accounting records have been kept.
We have nothing to report in respct of the following matters in relation to which the Companies Act 2006 requires us to
report to you if, in our opinion;
- returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made.

 
Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 


BECKETT'S BROOK HOLDING LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BECKETT'S BROOK HOLDING LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation, and general regulations such as health and safety. There are no industry specific laws and regulations which would be deemed to have a significant impact on the financial statements. We assessed the extent of compliance with the appropriate laws and regulations as part of our procedures on the related financial statement items. 
 
We understood how the Company is complying with the legal and regulatory frameworks by, making inquiries to
management and those responsible for legal and compliance procedures.
 
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any issues in this area.
 
We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
 
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
°Challenging assumptions and judgments made by management in its significant accounting estimates; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
 
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
 
°Posting of unusual journals and complex transactions.
°Misappropriation of funds through fraudulent purchase ledger.
°Manipulation of amounts subject to significant judgment or estimate.

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.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 6

 


BECKETT'S BROOK HOLDING LIMITED


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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BECKETT'S BROOK HOLDING LIMITED (CONTINUED)

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 2006Our 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 Auditors' 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.





Andrew Galliers (FCA) (Senior statutory auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
3000a Parkway
Whiteley
Hampshire
PO15 7FX

29 July 2024
Page 7

 


BECKETT'S BROOK HOLDING LIMITED
 


 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
2,181,428
8,956,170

Cost of sales
  
(1,313,328)
(7,903,159)

Gross profit
  
868,100
1,053,011

Distribution costs
  
(101,888)
(222,001)

Administrative expenses
  
(1,004,900)
(476,078)

Other operating income
 5 
83,832
161,196

Operating (loss)/profit
 6 
(154,856)
516,128

Interest receivable and similar income
 9 
8,589
13,828

Interest payable and similar expenses
 10 
(95,079)
(92,560)

(Loss)/profit before tax
  
(241,346)
437,396

Tax on (loss)/profit
 11 
46,575
53,241

(Loss)/profit after tax
  
(194,771)
490,637

  

  

Retained earnings at the beginning of the year
  
2,995,179
2,504,542

  
2,995,179
2,504,542

(Loss)/profit for the year attributable to the owners of the parent
  
(194,771)
490,637

Retained earnings at the end of the year
  
2,800,408
2,995,179

The notes on pages 13 to 30 form part of these financial statements.

Page 8

 


BECKETT'S BROOK HOLDING LIMITED
REGISTERED NUMBER:12465721



CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
4,306,641
4,323,557

  
4,306,641
4,323,557

Current assets
  

Stocks
 16 
440,418
365,890

Debtors: amounts falling due within one year
 17 
236,918
696,747

Cash at bank and in hand
  
408,215
1,210,234

  
1,085,551
2,272,871

Creditors: amounts falling due within one year
 18 
(841,536)
(1,480,749)

Net current assets
  
 
 
244,015
 
 
792,122

Total assets less current liabilities
  
4,550,656
5,115,679

Creditors: amounts falling due after more than one year
  
(1,722,601)
(2,041,492)

Provisions for liabilities
  

Deferred tax
 22 
(27,547)
(78,908)

  
 
 
(27,547)
 
 
(78,908)

Net assets
  
2,800,508
2,995,279


Capital and reserves
  

Called up share capital 
 23 
100
100

Profit and loss account
 24 
2,800,408
2,995,179

  
2,800,508
2,995,279


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




W H M Beckett
Director

Date: 29 July 2024

The notes on pages 13 to 30 form part of these financial statements.

Page 9

 


BECKETT'S BROOK HOLDING LIMITED
REGISTERED NUMBER:12465721



COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 14 
100
100

Investment Property
 15 
6,749,573
6,354,306

  
6,749,673
6,354,406

  

Creditors: amounts falling due within one year
 18 
(3,749,573)
(3,354,306)

Net current liabilities
  
 
 
(3,749,573)
 
 
(3,354,306)

Total assets less current liabilities
  
3,000,100
3,000,100

  

  

Net assets excluding pension asset
  
3,000,100
3,000,100

Net assets
  
3,000,100
3,000,100


Capital and reserves
  

Called up share capital 
 23 
100
100

Profit and loss account brought forward
  
3,000,000
3,000,000

Profit and loss account carried forward
  
3,000,000
3,000,000

  
3,000,100
3,000,100


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


W H M Beckett
Director

Date: 29 July 2024

The notes on pages 13 to 30 form part of these financial statements.

Page 10

 


BECKETT'S BROOK HOLDING LIMITED
 



CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(194,771)
490,637

Adjustments for:

Depreciation of tangible assets
142,904
143,344

Loss on disposal of tangible assets
280,606
-

Interest paid
95,079
92,560

Interest received
(8,589)
(13,828)

Taxation charge
(46,575)
(53,241)

(Increase)/decrease in stocks
(74,528)
928,018

Decrease/(increase) in debtors
459,829
(73,427)

(Decrease)/increase in creditors
(578,047)
33,173

Corporation tax (paid)
(40,380)
(7,670)

Net cash generated from operating activities

35,528
1,539,566


Cash flows from investing activities

Purchase of tangible fixed assets
(536,095)
(1,072,751)

Sale of tangible fixed assets
129,501
-

Interest received
8,589
13,828

HP interest paid
(1,123)
(1,123)

Net cash from investing activities

(399,128)
(1,060,046)

Cash flows from financing activities

Repayment of loans
(326,694)
(404,918)

Repayment of/new finance leases
(17,769)
(22,586)

Interest paid
(93,956)
(91,437)

Net cash used in financing activities
(438,419)
(518,941)

Net (decrease) in cash and cash equivalents
(802,019)
(39,421)

Cash and cash equivalents at beginning of year
1,210,234
1,249,655

Cash and cash equivalents at the end of year
408,215
1,210,234


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
408,215
1,210,234

408,215
1,210,234


The notes on pages 13 to 30 form part of these financial statements.

Page 11

 


BECKETT'S BROOK HOLDING LIMITED
 



CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 OCTOBER 2023




At 1 November 2022
Cash flows
At 31 October 2023
£

£

£

Cash at bank and in hand

1,210,234

(802,019)

408,215

Debt due after 1 year

(2,023,780)

402,370

(1,621,410)

Debt due within 1 year

(430,568)

(74,341)

(504,909)

Finance leases

(35,481)

17,769

(17,712)


(1,279,595)
(456,221)
(1,735,816)

The notes on pages 13 to 30 form part of these financial statements.

Page 12

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

1.


General information

Beckett's Brook Holding Limited is a private company limited by shares, registered in England. the address of its registered office is disclosed on the company information page. The trading address is also disclosed on the company information page. 
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The acquisition of both Kinswood Eggs Limited and Kinsbrook Vineyards Limited in the year to 31 October 2021 was completed under merger accounting. Where ownership of the Group has not changed with the introduction of a new parent company, merger accounting requires a consolidation to be completed as if that new parent has always existed. As such, these consolidated statements present the results as if the parent company had always existed, even though it was only incorporated on 17 February 2020, and gained control of the group at that date.

 
2.3

Going concern

The directors have a reasonable expectation that the Group has adequate resources to continue operational existence for the foreseeable future. For this reason the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 13

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 14

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.9

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

Defined benefit pension plan

The Group operates a defined benefit plan for certain employees. A defined benefit plan defines the pension benefit that the employee will receive on retirement, usually dependent upon several factors including but not limited to age, length of service and remuneration. A defined benefit plan is a pension plan that is not a defined contribution plan.

The liability recognised in the Statement of financial position in respect of the defined benefit plan is the present value of the defined benefit obligation at the end of the reporting date less the fair value of plan assets at the reporting date (if any) out of which the obligations are to be settled.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company engages independent actuaries to calculate the obligation. The present value is determined by discounting the estimated future payments using market yields on high quality corporate bonds that are denominated in sterling and that have terms approximating to the estimated period of the future payments ('discount rate').

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance with the Group's policy for similarly held assets. This includes the use of appropriate valuation techniques.

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to other comprehensive income. These amounts together with the return on plan assets, less amounts included in net interest, are disclosed as 'Remeasurement of net defined benefit liability'.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the cost of an asset, comprises:

a) the increase in net pension benefit liability arising from employee service during the period; and

b) the cost of plan introductions, benefit changes, curtailments and settlements.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is recognised in profit or loss as a 'finance expense'.

Page 15

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis and straight line basis..

Depreciation is provided on the following basis:

Plant and machinery
-
15%
Motor vehicles
-
25%
Office equipment
-
33%
Computer equipment
-
20%
Other fixed assets
-
6%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 16

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.12

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 17

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

2.Accounting policies (continued)

 
2.16

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Statement of financial position when the Group 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be resonable under the circumstances. 
Investment property valuation:
The directors have assessed the valuation of the investment property held within these financial statements ensuring the valuation appears reasonable and within the market rates.

Page 18

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Eggs
1,293,000
8,627,794

Vineyard
841,240
328,376

Haulage
47,188
-

2,181,428
8,956,170


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
2,181,428
8,956,170

2,181,428
8,956,170



5.


Other operating income

2023
2022
£
£

Other operating income
54,956
122,063

Fees receivable
28,876
39,133

83,832
161,196



6.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
£
£

Redundancy costs
5,319
67,337

Depreciation
29,604
16,235

Other operating lease rentals
1,000
1,000

Grant Income
(54,956)
(122,063)

Page 19

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
22,000
25,000


8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
802,633
1,353,907
-
-

Social security costs
55,327
93,811
-
-

Cost of defined benefit scheme
529
-
-
-

Cost of defined contribution scheme
14,005
27,168
-
-

872,494
1,474,886
-
-


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Employees
31
58

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL)

9.


Interest receivable

2023
2022
£
£


Other interest receivable
8,589
13,828

8,589
13,828

Page 20

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
25
18

Mortgage interest payable
93,931
91,419

Finance leases and hire purchase contracts
1,123
1,123

95,079
92,560


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
4,804
-

Adjustments in respect of previous periods
(18)
(54,780)


Total current tax
4,786
(54,780)

Deferred tax


Origination and reversal of timing differences
(51,361)
1,539

Total deferred tax
(51,361)
1,539


Taxation on loss on ordinary activities
(46,575)
(53,241)
Page 21

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 22.52% (2022 - 19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(241,346)
437,396


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 22.52% (2022 - 19%)
(54,351)
83,105

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
10,376
(245)

Adjustments to tax charge in respect of prior periods
15,547
(95,178)

Short-term timing difference leading to an increase (decrease) in taxation
-
(2,928)

Changes in tax rates
(5,514)
-

Permanent differences
2,574
(15,574)

Utilisation of trade losses brought forwards
-
(22,421)

Unrecorded deferred tax
(15,207)
-

Total tax charge for the year
(46,575)
(53,241)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Parent company profit for the year

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements. The profit after tax of the parent Company for the year was £Nil (2022 - £NIL).

Page 22


BECKETT'S BROOK HOLDING LIMITED
  
 
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2023



13.


Tangible fixed assets


Group







Freehold property
Plant and machinery
Motor vehicles
Office equipment
Computer equipment
Other fixed assets

£
£
£
£
£
£



Cost or valuation


At 1 November 2022
3,518,198
3,694,037
456,207
5,352
7,410
62,183


Additions
395,267
119,816
19,000
-
-
2,012


Disposals
-
(3,123,327)
(16,000)
(4,355)
-
-



At 31 October 2023

3,913,465
690,526
459,207
997
7,410
64,195



Depreciation


At 1 November 2022
-
3,061,386
349,257
5,351
124
3,712


Charge for the year on owned assets
-
104,970
32,624
-
1,482
3,828


Disposals
-
(2,721,221)
(8,000)
(4,354)
-
-



At 31 October 2023

-
445,135
373,881
997
1,606
7,540



Net book value



At 31 October 2023
3,913,465
245,391
85,326
-
5,804
56,655



At 31 October 2022
3,518,198
632,651
106,950
1
7,286
58,471
Page 23

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

           13.Tangible fixed assets (continued)


Total

£



Cost or valuation


At 1 November 2022
7,743,387


Additions
536,095


Disposals
(3,143,682)



At 31 October 2023

5,135,800



Depreciation


At 1 November 2022
3,419,830


Charge for the year on owned assets
142,904


Disposals
(2,733,575)



At 31 October 2023

829,159



Net book value



At 31 October 2023
4,306,641



At 31 October 2022
4,323,557




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
3,913,465
3,518,198

3,913,465
3,518,198


Page 24

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

14.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 November 2022
100



At 31 October 2023
100





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Kinswood Eggs Limited
Victoria House, Victoria Road, Farnborough, Hampshire, GU14 7PG
Ordinary
100%
Kinsbrook Vineyards Limited
Orchard Farmhouse Emms Lane, Brooks Green, Horsham, United Kingdom, RH13 0TR
Ordinary
100%

The principal place of business for Kinswood Eggs Limited is Orchard Farmhouse, Emms Lane, Brooks Green, Horsham, West Sussex, RH13 0TR.
The principal place of business for Kinsbrook Vineyard is Kinsbrook Vineyard, W Chiltington Road, Thakeham, Pulborough, RH20 2RZ.

Page 25

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

15.


Investment property

Group





Company





Freehold investment property

£



Valuation


At 1 November 2022
6,354,306


Additions at cost
395,267



At 31 October 2023
6,749,573



At 31 October 2023

16.


Stocks

Group
Group
2023
2022
£
£

Finished goods and goods for resale
440,418
365,890

440,418
365,890


The difference between purchase price or production cost of stocks and their replacement cost is not material.


17.


Debtors

Group
Group
2023
2022
£
£


Trade debtors
112,117
521,327

Other debtors
97,411
130,419

Prepayments and accrued income
27,390
45,001

236,918
696,747


Page 26

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

18.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
395,426
420,941
-
-

Trade creditors
213,217
848,923
-
-

Amounts owed to group undertakings
-
-
3,749,573
3,354,306

Corporation tax
4,804
40,398
-
-

Other taxation and social security
51,159
27,873
-
-

Obligations under finance lease and hire purchase contracts
17,712
17,769
-
-

Other creditors
70,128
67,785
-
-

Accruals and deferred income
89,090
57,060
-
-

841,536
1,480,749
3,749,573
3,354,306


The bank loans are secured by a fixed and floating charge over the assets of the Group.
The obligations under finance lease and hire purchase contracts are secured against the asset in which they relate.


19.


Creditors: Amounts falling due after more than one year

Group
Group
2023
2022
£
£

Bank loans
1,722,601
2,023,780

Net obligations under finance leases and hire purchase contracts
-
17,712

1,722,601
2,041,492


The bank loans are secured by a fixed and floating charge over the assets of the Group.
The obligations under finance lease and hire purchase contracts are secured against the asset in which they relate.

Page 27

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

20.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
395,426
420,941
-
-


395,426
420,941
-
-

Amounts falling due 1-2 years

Bank loans
1,149,103
1,358,308
-
-


1,149,103
1,358,308
-
-


Amounts falling due after more than 5 years

Bank loans
573,498
665,472
-
-

573,498
665,472
-
-

2,118,027
2,444,721
-
-


Bank loans with amounts falling due after more than 5 years are fixed loans on the freehold property with maturity
dates ranging from April 2030 to October 2036. The effective interest rates range from 2.62% to 3.72%. 


21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
17,712
17,769

Between 1-5 years
-
17,712

17,712
35,481

Page 28

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

22.


Deferred taxation


Group



2023


£






At beginning of year
78,908


Charged to profit or loss
(51,361)



At end of year
27,547

Group
Group
2023
2022
£
£

Accelerated capital allowances
27,547
78,908

27,547
78,908


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100

Each ordinary share has equal dividend and voting rights.



24.


Reserves

Profit and loss account

This reserve records retained earnings and accumulated profits. 


25.


Pension commitments

The Group operates a defined contributions pension scheme. The assests of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £14,032 (2022: £27,168). Contirubtions totalling £3,007 (2022: £2,598) were payable to the fund at the reporting date and are included in the creditors. 


26.


Related party transactions

Included within other creditors is £5,285 (2022: 7,029) due to Mr WHM Beckett, a director. The loan is interest free and repayable on demand. 

Page 29

 


BECKETT'S BROOK HOLDING LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023

27.


Controlling party

The directors consider the ultimate controlling party to be WHM Beckett.

Page 30