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Registration number: 04713346

Arundel Kerr Produce (East Anglia) Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 October 2023

 

Arundel Kerr Produce (East Anglia) Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 8

 

Arundel Kerr Produce (East Anglia) Limited

Company Information

Directors

R D Arundel

B W Kerr

Company secretary

E S Arundel

Registered office

Pegasus House
Pegasus Road
Elsham Wold Ind. Estate
Elsham
North Lincolnshire
DN20 0SQ

 

Arundel Kerr Produce (East Anglia) Limited

(Registration number: 04713346)
Balance Sheet as at 31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

465,575

344,402

Current assets

 

Stocks

5

415,724

549,638

Debtors

6

912,812

634,576

 

1,328,536

1,184,214

Creditors: Amounts falling due within one year

7

(2,034,687)

(1,725,217)

Net current liabilities

 

(706,151)

(541,003)

Total assets less current liabilities

 

(240,576)

(196,601)

Creditors: Amounts falling due after more than one year

7

(139,396)

(99,238)

Provisions for liabilities

-

(1,571)

Net liabilities

 

(379,972)

(297,410)

Capital and reserves

 

Called up share capital

9

199

199

Retained earnings

(380,171)

(297,609)

Shareholders' deficit

 

(379,972)

(297,410)

For the financial year ending 31 October 2023 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the Company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The Directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the Directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 31 July 2024 and signed on its behalf by:
 

.........................................
R D Arundel
Director

 

Arundel Kerr Produce (East Anglia) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

1

General information

The company is a private company limited by share capital incorporated in England and Wales and the company registration number is 04713346.

The address of its registered office is:
Pegasus House
Pegasus Road
Elsham Wold Ind. Estate
Elsham
North Lincolnshire
DN20 0SQ

These financial statements cover the individual entity, Arundel Kerr Produce (East Anglia) Limited.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 including Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
 

Basis of preparation

These financial statements have been prepared using the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound.

Going concern

The company is financed by a significant bank overdraft facility. The overdraft facility provided is governed by an agreement with the bank and the company is aware of their repayment obligations and their limits and considers that it can continue trading whilst meeting these. The directors have made assurances that the company will continue to receive financial support from the bank and that the changes to trade should result in the company generating profits in the next accounting period. On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The Company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Company's activities.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Arundel Kerr Produce (East Anglia) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

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 operates and generates taxable income.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

20% - 25% reducing balance

Plant and machinery

10% - 25% reducing balance and 4% - 33% straight line

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised at the transaction price less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

The basis of valuation is as follows:
Raw materials and consumables are stated at the lower of cost and net realisable value.
Produce on hand is valued at the lower of estimated cost of production and net realisable value.
Tenantright is calculated by a combination of actual costs and standard costs.
The basis of valuation is consistent with previous years.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised at the transaction price.

 

Arundel Kerr Produce (East Anglia) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the Company (including Directors) during the year, was 4 (2022 - 5).

 

Arundel Kerr Produce (East Anglia) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

4

Tangible assets

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 November 2022

676,692

27,640

24,000

728,332

Additions

197,247

6,284

-

203,531

Disposals

(71,500)

-

-

(71,500)

At 31 October 2023

802,439

33,924

24,000

860,363

Depreciation

At 1 November 2022

359,906

19,224

4,800

383,930

Charge for the year

69,350

1,441

4,760

75,551

Eliminated on disposal

(64,693)

-

-

(64,693)

At 31 October 2023

364,563

20,665

9,560

394,788

Carrying amount

At 31 October 2023

437,876

13,259

14,440

465,575

At 31 October 2022

316,786

8,416

19,200

344,402

5

Stock and Farm Valuation

2023
£

2022
£

Raw materials and consumables

12,000

8,283

Produce on hand

296,100

541,355

Tenantright

107,624

-

415,724

549,638

6

Debtors

2023
£

2022
£

Trade debtors

629,659

356,861

Prepayments and accrued income

272,840

276,830

Other debtors

10,313

885

912,812

634,576

 

Arundel Kerr Produce (East Anglia) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

8

796,689

646,362

Trade creditors

 

931,944

797,903

Taxation and social security

 

9,861

4,806

Accruals and deferred income

 

168,092

155,877

Other creditors

 

128,101

120,269

 

2,034,687

1,725,217

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

139,396

99,238

Creditors amounts falling within one year which security has been given includes finance leases of £54,845 (2022 - £41,428) and the bank overdraft of £796,689 (2022 - £646,362).

Creditors amounts falling due after more than one year on which security has been given includes finance leases of £139,396 (2022- £99,238).

The finance leases are secured against the assets to which they relate. The bank overdraft is secured by charges over the company's assets and personal guarantees given by the company's directors.

8

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Finance lease liabilities

139,396

99,238

2023
£

2022
£

Current loans and borrowings

Bank overdrafts

796,689

646,362

Finance lease liabilities

54,845

41,428

Other borrowings

73,256

78,841

924,790

766,631

 

Arundel Kerr Produce (East Anglia) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

9

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

99

99

99

99

B non-voting shares of £1 each

100

100

100

100

 

199

199

199

199

10

Financial commitments, guarantees and contingencies

The company has entered into an unlimited cross guarantee with its bankers in respect of Arundel Kerr Produce Limited, Arundel Kerr Produce (East Anglia) Limited and Healthfresh Properties Limited to secure liabilities of each other. There are no tax implications with regards to this guarantee. The uncertainities which are expected to affect the future outcome are the future liquidity and profitability of the two companies whose debts are secured by Arundel Kerr Produce (East Anglia) Limited. The financial effect due to this guarantee is dependent upon the amount of debt secured by Arundel Kerr Produce (East Anglia) Limited in respect of the two companies.

11

Related party transactions

Transactions with Directors

2023

At 1 November 2022
£

Advances to Director
£

At 31 October 2023
£

Director's interest free loan accounts - no formal repayment terms

-

2,291

2,291