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Filleted

Registration number: 08763452

Milkwell Ltd

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2023

 

Milkwell Ltd

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Financial Statements

4 to 12

 

Milkwell Ltd

Company Information

Director

Mr S S Carey

Registered office

Llys Deri
Parc Pensarn
Carmarthen
SA31 2NF

 

Milkwell Ltd

(Registration number: 08763452)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

5

1,006

-

Tangible assets

6

1,101,769

1,099,256

Investments

7

100

150

 

1,102,875

1,099,406

Current assets

 

Stocks

8

585,675

512,284

Debtors

9

107,624

81,447

Cash at bank and in hand

 

4,545

3,281

 

697,844

597,012

Creditors: Amounts falling due within one year

10

(468,935)

(333,411)

Net current assets

 

228,909

263,601

Total assets less current liabilities

 

1,331,784

1,363,007

Creditors: Amounts falling due after more than one year

10

(1,192,259)

(943,303)

Net assets

 

139,525

419,704

Capital and reserves

 

Called up share capital

20

20

Profit and loss account

139,505

419,684

Total equity

 

139,525

419,704

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

Director's 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 director acknowledges his 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 and the option not to file the Profit and Loss Account has been taken.

 

Milkwell Ltd

(Registration number: 08763452)
Balance Sheet as at 31 December 2023

Approved and authorised by the director on 20 June 2024
 

.........................................
Mr S S Carey
Director

   
     
 

Milkwell Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in Wales.

The address of its registered office is:
Llys Deri
Parc Pensarn
Carmarthen
SA31 2NF

The principal place of business is:
Newlyn
Ffordd y Dre Newydd
Machynlleth
Powys
SY20 8EY

These financial statements were authorised for issue by the director on 20 June 2024.

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 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared 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 current 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.

 

Milkwell Ltd

Notes to the Financial Statements for the Year Ended 31 December 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.

Tangible assets

Tangible assets are stated in the balance sheet 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

Fixture and Fittings

10% reducing balance

Plant and machinery

10% reducing balance

Office equipment

33.33% reducing balance

Leased cows

25% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Entitlements

No Amortisation

 

Milkwell Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

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

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, 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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

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 initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Milkwell Ltd

Notes to the Financial Statements for the Year Ended 31 December 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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 1 (2022 - 1).

4

Loss/profit before tax

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

42,011

39,885

 

Milkwell Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

5

Intangible assets

Entitlements
 £

Total
£

Cost or valuation

Additions acquired separately

1,006

1,006

At 31 December 2023

1,006

1,006

Amortisation

Carrying amount

At 31 December 2023

1,006

1,006

 

Milkwell Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

6

Tangible assets

Land and buildings
£

Properties under construction
 £

Leased cows
£

Plant and machinery
£

Office equipment
£

Herd
£

Total
£

Cost or valuation

At 1 January 2023

69,202

59,563

97,500

381,398

447

637,050

1,245,160

Additions

10,289

-

-

12,618

-

24,200

47,107

Disposals

(2,583)

-

-

-

-

-

(2,583)

At 31 December 2023

76,908

59,563

97,500

394,016

447

661,250

1,289,684

Depreciation

At 1 January 2023

7,787

-

97,500

40,451

166

-

145,904

Charge for the year

6,912

-

-

35,005

94

-

42,011

At 31 December 2023

14,699

-

97,500

75,456

260

-

187,915

Carrying amount

At 31 December 2023

62,209

59,563

-

318,560

187

661,250

1,101,769

At 31 December 2022

61,415

59,563

-

340,947

281

637,050

1,099,256

Included within the net book value of land and buildings above is £62,209 (2022 - £61,415) in respect of freehold land and buildings.
 

 

Milkwell Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

7

Investments

2023
£

2022
£

Investments in subsidiaries

100

150

Subsidiaries

£

Cost or valuation

At 1 January 2023

150

Disposals

(50)

At 31 December 2023

100

Provision

Carrying amount

At 31 December 2023

100

At 31 December 2022

150

8

Stocks

2023
£

2022
£

Raw materials and consumables

518,950

413,325

Work in progress

66,725

98,959

585,675

512,284

9

Debtors

2023
£

2022
£

Trade debtors

94,645

81,447

Other debtors

12,979

-

107,624

81,447

 

Milkwell Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

10

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Bank loans and overdrafts

12

141,870

65,696

Trade creditors

 

84,202

11,606

Taxation and social security

 

-

3,330

Other related parties

 

241,168

251,239

Other creditors

 

1,695

1,540

 

468,935

333,411

Due after one year

 

Loans and borrowings

12

1,192,259

943,303

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

12

1,192,259

943,303

11

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

10

10

10

10

A Ordinary shares of £1 each

10

10

10

10

 

20

20

20

20

12

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

1,167,611

910,835

HP and finance lease liabilities

24,648

32,468

1,192,259

943,303

 

Milkwell Ltd

Notes to the Financial Statements for the Year Ended 31 December 2023

2023
£

2022
£

Current loans and borrowings

Bank borrowings

7,392

7,392

Bank overdrafts

134,478

58,304

141,870

65,696

13

Related party transactions

Transactions with directors

2023

At 1 January 2023
£

Advances to director
£

At 31 December 2023
£

Mr S S Carey

Interest free loan with no fixed repayment terms

(253,231)

11,715

(241,516)

       
     

 

2022

At 1 January 2022
£

Other payments made to company by director
£

At 31 December 2022
£

Mr S S Carey

Interest free loan with no fixed repayment terms

(249,736)

(3,495)

(253,231)

       
     

 

Summary of transactions with subsidiaries

Rhiwlas Dairy Ltd
 50% share holding - Milkwell Ltd no longer owns 50% of the share holding in Rhiwlas Dairy Ltd.
 

Summary of transactions with other related parties

Rhiwlas Dairy Ltd
 Director in common - During the year, Milkwell Ltd charged Rhiwlas Dairy Ltd an amount £0.00 (2022 - £84,859.80) for goods and services. At the balance sheet date the amount due from Rhiwlas Dairy Ltd was £0.00 (2022 - £66,859.80)