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REGISTERED NUMBER: 09567164 (England and Wales)













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: RL Norman
CG Norman
AJ Boley
CJR North





REGISTERED OFFICE: The Leen
Pembridge
Leominster
Herefordshire
HR6 9HN





REGISTERED NUMBER: 09567164 (England and Wales)





ACCOUNTANTS: The Hutchinson Partnership Limited
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.






The Hutchinson Partnership Limited
trading as The Hutchinson Partnership
Chartered Accountants
The Bull Pen
Grove Farm
Portway, Burghill
Hereford
HR4 8NF


1 August 2024

ARC Farming Ltd (Registered number: 09567164)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 4 1,670,300 1,637,077
Investments 5 18,332 12,283
1,688,632 1,649,360

CURRENT ASSETS
Stocks 6 392,732 364,304
Debtors 7 331,880 310,748
Cash at bank 562 41,597
725,174 716,649
CREDITORS
Amounts falling due within one year 8 1,216,038 1,016,428
NET CURRENT LIABILITIES (490,864 ) (299,779 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,197,768

1,349,581

CREDITORS
Amounts falling due after more than one
year

9

1,341,795

1,415,995
NET LIABILITIES (144,027 ) (66,414 )

CAPITAL AND RESERVES
Alloted, issued and fully paid
share capital 1,120 1,120
Share premium 23,888 23,888
Retained earnings (169,035 ) (91,422 )
SHAREHOLDERS' FUNDS (144,027 ) (66,414 )

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2023 in accordance with Section 476 of the Companies Act 2006.

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


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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 24 July 2024 and were signed on its behalf by:





AJ Boley - Director


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
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Leasehold property improvements - 4% on cost
Plant and machinery - 25% on reducing balance, 25% on cost, 15% on reducing balance and 4% on cost
Herd - 20% on cost less residual value

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 12 (2022 - 13 ) .

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 365,945 1,020,815 25,973 769,900 2,182,633
Additions 18,263 51,488 - 294,875 364,626
Disposals - - - (228,401 ) (228,401 )
At 31 December 2023 384,208 1,072,303 25,973 836,374 2,318,858
DEPRECIATION
At 1 January 2023 46,124 237,776 19,812 241,844 545,556
Charge for year 15,368 58,753 1,511 135,595 211,227
Eliminated on disposal - - - (108,225 ) (108,225 )
At 31 December 2023 61,492 296,529 21,323 269,214 648,558
NET BOOK VALUE
At 31 December 2023 322,716 775,774 4,650 567,160 1,670,300
At 31 December 2022 319,821 783,039 6,161 528,056 1,637,077

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 12,283
Additions 6,049
At 31 December 2023 18,332
NET BOOK VALUE
At 31 December 2023 18,332
At 31 December 2022 12,283

6. STOCKS
2023 2022
£    £   
Livestock valuation 310,710 312,305
Raw materials 82,022 51,999
392,732 364,304

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 182,504 81,004
Prepayments and accrued income 83,599 201,996
Other debtors 575 567
VAT 12,937 -
Deferred tax asset 52,265 27,181
331,880 310,748

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 457,824 401,641
Hire purchase contracts (see note 10) 9,285 4,291
Trade creditors 262,419 120,062
Social security and other taxes 8,390 7,432
VAT - 6,258
Other creditors 1,090 905
Related party loans 353,528 313,400
Directors' current accounts 79,016 80,329
Accruals and deferred income 44,486 82,110
1,216,038 1,016,428

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans 109,200 213,340
Bank loans - 2-5 years 229,192 209,766
Bank loans more 5 yr by instal 462,069 466,743
Hire purchase contracts (see note 10) 25,497 10,309
Directors' loan accounts 515,837 515,837
1,341,795 1,415,995

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 9,285 4,291
Between one and five years 25,497 10,309
34,782 14,600

Non-cancellable operating leases
2023 2022
£    £   
Within one year 100,817 100,817
Between one and five years 403,268 403,268
In more than five years 1,361,030 1,461,847
1,865,115 1,965,932

11. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank overdrafts 353,824 303,079
Bank loans 904,461 988,411
Hire purchase contracts 34,782 14,600
1,293,067 1,306,090

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.