REGISTERED NUMBER: |
ARC Farming Ltd |
Unaudited Financial Statements |
for the Year Ended 31 December 2023 |
REGISTERED NUMBER: |
ARC Farming Ltd |
Unaudited Financial Statements |
for the Year Ended 31 December 2023 |
ARC Farming Ltd (Registered number: 09567164) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Chartered Accountants' Report | 2 |
Balance Sheet | 3 |
Notes to the Financial Statements | 5 |
ARC Farming Ltd |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
ACCOUNTANTS: |
trading as The Hutchinson Partnership |
Chartered Accountants |
The Bull Pen |
Grove Farm |
Portway, Burghill |
Hereford |
HR4 8NF |
Chartered Accountants' Report to the Board of Directors |
on the Unaudited Financial Statements of |
ARC Farming Ltd |
The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Statement of Income and Retained Earnings and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies. |
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of ARC Farming Ltd for the year ended 31 December 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us. |
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance. |
This report is made solely to the Board of Directors of ARC Farming Ltd, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of ARC Farming Ltd and state those matters that we have agreed to state to the Board of Directors of ARC Farming Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than ARC Farming Ltd and its Board of Directors, as a body, for our work or for this report. |
It is your duty to ensure that ARC Farming Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of ARC Farming Ltd. You consider that ARC Farming Ltd is exempt from the statutory audit requirement for the year. |
We have not been instructed to carry out an audit or a review of the financial statements of ARC Farming Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. |
trading as The Hutchinson Partnership |
Chartered Accountants |
The Bull Pen |
Grove Farm |
Portway, Burghill |
Hereford |
HR4 8NF |
ARC Farming Ltd (Registered number: 09567164) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investments | 5 |
CURRENT ASSETS |
Stocks | 6 |
Debtors | 7 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 8 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
9 |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Alloted, issued and fully paid |
share capital |
Share premium |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
ARC Farming Ltd (Registered number: 09567164) |
Balance Sheet - continued |
31 December 2023 |
In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
ARC Farming Ltd (Registered number: 09567164) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
ARC Farming Ltd is a private company, limited by shares, incorporated and registered in England and Wales. The company's registered number and registered office can be found on the Company Information page. The company's record keeping is carried out at the registered office but its trading enterprises are carried out at two separate sites - Tan House Farm, Ruddle, Newnham on Severn, Gloucestershire, GL14 1DX and Mowley, Titley, Kington, Herefordshire, HR5 3RT. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The directors are aware that the company has negative shareholders funds. The directors are confident that the company will trade profitably in future and will be able to trade within its agreed finance facilities for the next 12 months. They have also confirmed that they will not withdraw their loan accounts to the detriment of other creditors within this period. The directors therefore consider it appropriate to prepare the accounts on a going concern basis. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Leasehold property improvements | - |
Plant and machinery | - |
Herd | - |
The company has the following biological assets included within tangible fixed assets which are valued as disclosed:- |
Herd - valued at their depreciated cost. |
Stocks |
Stocks and work in progress are valued at the lower of cost and estimated selling price less costs to complete and sell. Provision is made for obsolete and slow moving stock where appropriate. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport and handling costs in bringing stocks to their present location and condition. |
The company has the following biological assets included within stocks which are valued as disclosed:- |
Livestock - valued at their estimated cost with reference to current market values. |
ARC Farming Ltd (Registered number: 09567164) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets purchased under hire purchase contracts capitalised in the balance sheet and are depreciated over their estimated useful lives. |
The interest element of these obligations is charged to the profit or loss account over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES |
The average number of employees during the year was |
ARC Farming Ltd (Registered number: 09567164) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | TANGIBLE FIXED ASSETS |
Leasehold |
property | Plant and | Motor |
improvements | machinery | vehicles | Herd | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The company's tangible fixed assets are subject to a fixed and floating charge. One of the herds, with a net book value of £352,780 (2022: £320,552), is leased out on an operating lease. |
Included within plant and machinery are assets subject to hire purchase contracts with a net book value of £15,245 (2022: £17,935). |
5. | FIXED ASSET INVESTMENTS |
Other |
investments |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
6. | STOCKS |
2023 | 2022 |
£ | £ |
Livestock valuation | 310,710 | 312,305 |
Raw materials |
ARC Farming Ltd (Registered number: 09567164) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Prepayments and accrued income | 83,599 | 201,996 |
Other debtors |
VAT |
Deferred tax asset |
The company's current assets are subject to a fixed and floating charge. |
8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts |
Hire purchase contracts (see note 10) |
Trade creditors |
Social security and other taxes |
VAT | - | 6,258 |
Other creditors |
Related party loans | 353,528 | 313,400 |
Directors' current accounts | 79,016 | 80,329 |
Accruals and deferred income |
9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans |
Bank loans - 2-5 years |
Bank loans more 5 yr by instal |
Hire purchase contracts (see note 10) |
Directors' loan accounts | 515,837 | 515,837 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 462,069 | 466,743 |
ARC Farming Ltd (Registered number: 09567164) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
10. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
11. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdrafts |
Bank loans |
Hire purchase contracts | 34,782 | 14,600 |
The bank loan and overdraft with HSBC Bank plc are secured by a fixed and floating charge over all assets of the company. |
Hire purchase liabilities are secured against the specific assets for which finance was raised. |
ARC Farming Ltd (Registered number: 09567164) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
12. | RELATED PARTY DISCLOSURES |
During the year the company made purchases of £Nil (2022: £26,600) from a company in which two of the directors of ARC Farming Limited are also directors. |
Included in creditors due after one year are loans from directors of £515,837 (2022: £515,837), which are interest free and repayable in not less than one year. Included in creditors due in less than one year are loans from directors of £79,016 (2022: £80,329). These loans are interest free and repayable on demand. |
The tenancy for the Ruddle dairy is held in the name of all four of the directors. |
Included in creditors due within one year is a loan of £218,400 (2022: £218,400) from a company in which two of the directors of ARC Farming Limited are also directors. Interest of £5,475 (2022: £5,475) at 2.5% (2022: 2.5%) has been charged on this loan. |
Also included within creditors due within one year is another loan of £40,128 (2022: £NIL) from another company in which two of the directors of ARC Farming Limited are also directors. Interest of £128 (2022: £NIL) at 3% (2022: NIL) has been charged on this loan. |
There are also loans from other related parties of £95,000 (2022: £95,000). Interest of £2,625 (2022: £2,625) at 2.5% and 3.0% (2022: 2.5% and 3.0%) has been charged on these loans. |