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Registered number: 02301391










DOVES FARM FOODS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

 
DOVES FARM FOODS LIMITED
 

COMPANY INFORMATION


Directors
M J Marriage 
C E Marriage 
J J Marriage 
R N L Marriage 




Company secretary
C E Marriage



Registered number
02301391



Registered office
Salisbury Road

Hungerford

Berkshire

RG17 0RF




Independent auditor
James Cowper Kreston Audit
Senior Statutory Auditor

2 Communications Road

Greenham Business Park

Greenham

Newbury

Berkshire

RG19 6AB





 
DOVES FARM FOODS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditor's Report
 
5 - 7
Consolidated Statement of Comprehensive Income
 
8
Consolidated Balance Sheet
 
9
Company Balance Sheet
 
10
Consolidated Statement of Changes in Equity
 
11
Company Statement of Changes in Equity
 
12
Consolidated Statement of Cash Flows
 
13
Consolidated Analysis of Net Debt
 
14
Notes to the Financial Statements
 
15 - 33


 
DOVES FARM FOODS LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

Introduction
 
Doves Farm Foods remains an independent, family run, food manufacturing company focusing on the processing of speciality grain and cereal products with a high level of product integrity, that are sold both as ingredients to food manufacturers and as consumer foods. Doves Farm Foods holds accreditation from British Retail Consortium, Sedex, Soil Association Organic, Coeliac, and Kosher and Halal societies.
Financial security is based upon product profitability to generate surplus cash profits for financing new buildings and production machinery, structural alterations and possible company acquisitions. We have managed to avoid needing any type of loans in the UK, however there is a bank loan facility in Italy which was obtained to assist with financing the capital expenditure locally.

Business review
 
A large range of organic and speciality, flours continue to be sold under DOVES FARM brand which was established in 1978. These are complimented by some baking requisites and biscuits. We have considerable capacity to produce and pack home baking flours.
The company’s gluten free products are sold under the FREEE brand name. This enables consumers to easily identify products that are suitable for those who wish to eat gluten free foods, as opposed to other products made by the company which do contain gluten. FREEE home baking flours, cookies, breakfast cereals and oat bars are produced and packed in the companies dedicated purpose-built facility using specialist milling, blending and baking equipment.  
The company’s websites are regularly updated and on-line sales, have remained strong.
The company sells products mainly in the UK, with 9% of its sales going for the export trade. The Brexit regulations have proved quite challenging and this has affected our overseas sales but the new arrangements are now settling down and overseas buyers are returning.
The sourcing and supply chain of all our raw materials and packaging continues to be fundamental to the business activity and profitability. Since the invasion of Ukraine raw material pricing and transport costs had increased dramatically, these ingredient increases along with higher energy costs caused a severe strain on our margins during this year; this forced us to increase prices to the customers and this improved our situation towards the end of the year. 
We have an excellent senior management team of high calibre who are ambitious to grow the business and general staff turnover is very low. There is a strong personnel culture throughout the company.
G Free Alimentare
Doves Farm Foods continues to invest as the major shareholder in G-Free Alimentaire (GFA), a new gluten free pasta factory near to Milan in Italy. This venture has had quite a few delays and setbacks and the costs have increased over the initial forecast, which has forced DFF to loan additional funds to GFA to complete the building and equipping of the pasta factory. As at 30 June 2023 the loan amounted to £2,063,399. Following an assessment at the year end, we anticipate that full repayment of this loan might be doubtful, or will take a number of years, so we have deemed it prudent to provide against this loan in the results of DFF. During the 2023-24 year DFF has had to loan further amounts to GFA.
The GFA factory is now very nearly complete, and we started to sell pasta at the end of 2023. This factory now supplies DFF with the pasta that it had been buying from a third party supplier, and it will also sell to other customers in Italy and other countries.



 
Page 1

 
DOVES FARM FOODS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Wessex Mill
In January 2023 DFF bought the brand, Wessex Mill. The company behind Wessex Mill decided to cease trading. They were a traditional country flour mill supplying bakers and making a range of home baking flours. Wessex supplies a range of different customers to the Doves Farm brand. This has been a good integration of another brand to our portfolio, and extends our reach into new areas. The Wessex brand has its own website and internet shop.

Principal risks and uncertainties
 
The UK flour milling industry is a most competitive environment and pricing control from multiple retail customers ensures that margins are kept under pressure. Some ingredients are sourced from the EU and some sales are to the EU; UK/EU customs changes have affected this trade. The Euro to Sterling exchange rate was smoother this year which helped with pricing.
There is a constant risk of allergen challenges to raw material ingredient integrity both upstream and downstream.

Financial key performance indicators
 
The Company uses KPI’s to monitor its own activities including turnover and margin growth. Debtor days are monitored and continue to come in within target.

Other key performance indicators
 
Production, technical, environmental, engineering, HR and Health and Safety are all monitored by KPIs. The number of complaints received per thousand units sold has again improved, from an already very low number, and showing the continuing quality of our products.


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



C E Marriage
Director

Date: 1 August 2024

Page 2

 
DOVES FARM FOODS LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023

The directors present their report and the financial statements for the year ended 30 June 2023.

Directors

The directors who served during the year were:

M J Marriage 
C E Marriage 
J J Marriage 
R N L Marriage 

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 profit for the year, after taxation and minority interests, amounted to £207,470 (2022 - £549,189).

Dividends of £200,800 (2022: £499,200) were paid during the year.

Future developments

The company continues to invest in growing the sales of all products through product development, modern marketing techniques and social platforms. 
Despite the Brexit challenges, overseas interest in the company’s brands remains strong. We plan to develop the export opportunities for both Doves Farm and Freee branded products.

Page 3

 
DOVES FARM FOODS LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

Post balance sheet events

There have been no post balance sheet events which require disclosure.

Auditor

The auditor, James Cowper Kreston Auditwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





C E Marriage
Director

Date: 1 August 2024

Page 4

 
DOVES FARM FOODS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DOVES FARM FOODS LIMITED
 

Opinion


We have audited the financial statements of Doves Farm Foods Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity 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 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 30 June 2023 and of the Group's profit 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 opinion


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 Auditor's 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.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's 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.
Page 5

 
DOVES FARM FOODS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DOVES FARM FOODS LIMITED (CONTINUED)




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.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Auditor's 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 Auditor's 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.

Because of the inherent limitations of an audit, there is 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.  
 
Page 6

 
DOVES FARM FOODS LIMITED
 

 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF DOVES FARM FOODS LIMITED (CONTINUED)


The specific procedures for this engagement that we designed and performed to detect material misstatements in respect of irregularities, including fraud, were as follows:  
· Enquiry of management and those charged with governance around actual and potential litigation and                  claims; 
· Enquiry of management and those charged with governance to identify any material instances of non-              compliance with laws and regulations; 
· Reviewing financial statement disclosures and testing to supporting documentation to assess compliance                         with applicable laws and regulations; 
· Performing audit work to address the risk of irregularities due to management override of controls,                         including testing of journal entries and other adjustments for appropriateness, evaluating the business                        rationale of significant transactions outside the normal course of business and reviewing accounting                     estimates for evidence of bias.  

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 Auditor's Report.


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 Auditor's 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.





Fiona Hawkins MSc FCA (Senior Statutory Auditor)
  
for and on behalf of
James Cowper Kreston Audit
 
Senior Statutory Auditor
  
2 Communications Road
Greenham Business Park
Greenham
Newbury
Berkshire
RG19 6AB

 
Date: 
5 August 2024
Page 7

 
DOVES FARM FOODS LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
27,365,069
23,904,561

Cost of sales
  
(21,897,271)
(18,825,103)

Gross profit
  
5,467,798
5,079,458

Distribution costs
  
(2,824,957)
(2,554,440)

Administrative expenses
  
(2,284,264)
(1,824,160)

Fair value movements
  
31,930
(22,865)

Operating profit
 5 
390,507
677,993

Interest receivable and similar income
  
10,184
2,320

Interest payable and similar expenses
  
(68,516)
-

Profit before taxation
  
332,175
680,313

Tax on profit
 9 
(216,608)
(189,213)

Profit for the financial year
  
115,567
491,100

Profit for the year attributable to:
  

Non-controlling interests
  
(91,903)
(58,089)

Owners of the parent Company
  
207,470
549,189

  
115,567
491,100

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 15 to 33 form part of these financial statements.

Page 8

 
DOVES FARM FOODS LIMITED
REGISTERED NUMBER: 02301391

CONSOLIDATED BALANCE SHEET
AS AT 30 JUNE 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 11 
25,999
-

Tangible assets
 12 
12,259,127
10,447,492

  
12,285,126
10,447,492

Current assets
  

Stocks
 14 
3,122,061
2,606,356

Debtors: amounts falling due within one year
 15 
7,367,399
5,556,088

Cash at bank and in hand
 16 
2,769,135
4,975,757

  
13,258,595
13,138,201

Creditors: amounts falling due within one year
 17 
(5,043,273)
(3,140,978)

Net current assets
  
 
 
8,215,322
 
 
9,997,223

Total assets less current liabilities
  
20,500,448
20,444,715

Creditors: amounts falling due after more than one year
 18 
(1,512,851)
(1,476,289)

Provisions for liabilities
  

Deferred taxation
 21 
(798,461)
(694,057)

Net assets
  
18,189,136
18,274,369


Capital and reserves
  

Called up share capital 
 22 
20,000
20,000

Profit and loss account
 23 
18,137,382
18,130,712

Equity attributable to owners of the parent Company
  
18,157,382
18,150,712

Non-controlling interests
 23 
31,754
123,657

  
18,189,136
18,274,369


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




M J Marriage
Director

Date: 1 August 2024

The notes on pages 15 to 33 form part of these financial statements.

Page 9

 
DOVES FARM FOODS LIMITED
REGISTERED NUMBER: 02301391

COMPANY BALANCE SHEET
AS AT 30 JUNE 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
8,679,440
7,944,810

Investments
 13 
1,027,235
1,027,235

  
9,706,675
8,972,045

Current assets
  

Stocks
 14 
3,122,061
2,606,356

Debtors: amounts falling due within one year
 15 
6,674,034
5,302,512

Cash at bank and in hand
 16 
2,551,204
4,939,193

  
12,347,299
12,848,061

Creditors: amounts falling due within one year
 17 
(4,593,020)
(2,869,737)

Net current assets
  
 
 
7,754,279
 
 
9,978,324

Total assets less current liabilities
  
17,460,954
18,950,369

  

Provisions for liabilities
  

Deferred taxation
 21 
(798,461)
(694,057)

Net assets
  
16,662,493
18,256,312


Capital and reserves
  

Called up share capital 
 22 
20,000
20,000

Profit and loss account
  
16,642,493
18,236,312

  
16,662,493
18,256,312


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


M J Marriage
Director

Date: 1 August 2024

The notes on pages 15 to 33 form part of these financial statements.

Page 10

 
DOVES FARM FOODS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£

At 1 July 2022 (as previously stated)
20,000
18,153,577
18,173,577
123,657
18,297,234

Prior year adjustment
-
(22,865)
(22,865)
-
(22,865)

At 1 July 2022 (as restated)
20,000
18,130,712
18,150,712
123,657
18,274,369



Profit for the year
-
207,470
207,470
(91,903)
115,567

Dividends: Equity capital
-
(200,800)
(200,800)
-
(200,800)


At 30 June 2023
20,000
18,137,382
18,157,382
31,754
18,189,136



CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£

At 1 July 2021
20,000
18,080,723
18,100,723
181,746
18,282,469



Profit for the year
-
549,189
549,189
(58,089)
491,100

Dividends: Equity capital
-
(499,200)
(499,200)
-
(499,200)


At 30 June 2022
20,000
18,130,712
18,150,712
123,657
18,274,369


The notes on pages 15 to 33 form part of these financial statements.

Page 11

 
DOVES FARM FOODS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2022 (as previously stated)
20,000
18,259,177
18,279,177

Prior year adjustment
-
(22,865)
(22,865)

At 1 July 2022 (as restated)
20,000
18,236,312
18,256,312



Loss for the year
-
(1,393,019)
(1,393,019)

Dividends: Equity capital
-
(200,800)
(200,800)


At 30 June 2023
20,000
16,642,493
16,662,493



COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2021
20,000
18,091,023
18,111,023



Profit for the year
-
644,489
644,489

Dividends: Equity capital
-
(499,200)
(499,200)


At 30 June 2022
20,000
18,236,312
18,256,312


The notes on pages 15 to 33 form part of these financial statements.

Page 12

 
DOVES FARM FOODS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023

As restated
2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
115,567
491,100

Adjustments for:

Depreciation of tangible assets
765,103
838,990

Loss on disposal of tangible assets
7,342
2,133

Interest paid
68,516
-

Interest received
(10,184)
(2,320)

Taxation charge
216,608
189,213

(Increase) in stocks
(515,705)
(150,751)

(Increase) in debtors
(330,081)
(844,740)

Increase in creditors
340,791
2,246

Corporation tax paid
-
(162,911)

Fair value movements
(31,930)
22,865

Net cash generated from operating activities

626,027
385,825


Cash flows from investing activities

Purchase of intangible fixed assets
(25,999)
-

Purchase of tangible fixed assets
(2,584,080)
(2,794,751)

Interest received
10,184
2,320

Net cash from investing activities

(2,599,895)
(2,792,431)

Cash flows from financing activities

(Repayment of) / new secured loans
(4,228)
1,294,130

Repayment of/new finance leases
40,790
432,006

Dividends paid
(200,800)
(499,200)

Interest paid
(68,516)
-

Net cash used in financing activities
(232,754)
1,226,936

Net (decrease) in cash and cash equivalents
(2,206,622)
(1,179,670)

Cash and cash equivalents at beginning of year
4,975,757
6,155,427

Cash and cash equivalents at the end of year
2,769,135
4,975,757


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,769,135
4,975,757


The notes on pages 15 to 33 form part of these financial statements.

Page 13

 
DOVES FARM FOODS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2023





At 1 July 2022
Cash flows
Other non-cash changes
At 30 June 2023
£

£

£

£

Cash at bank and in hand

4,975,757

(2,206,622)

-

2,769,135

Debt due after 1 year

(1,222,989)

-

-

(1,222,989)

Debt due within 1 year

(1,294,130)

1,227,217

-

(66,913)

Finance leases

(432,006)

(40,790)

-

(472,796)

Financial instruments

653,111

-

1,481,230

2,134,341


2,679,743
(1,020,195)
1,481,230
3,140,778

The notes on pages 15 to 33 form part of these financial statements.

Page 14

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1.


General information

Doves Farm Food Limited is a company limited by share capital and incorporated in England and Wales. The address of the registered office and principal place of business is Salisbury Road, Hungerford, Berkshire, RG17 0RF. The nature of the operations and principal activities are described in the business review. 

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 Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

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.

 
2.3

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.

Page 15

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)


2.3
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the methods noted below..

Depreciation is provided on the following basis:

Freehold property
-
Not depreciated
Long-term leasehold property
-
4% straight line
Plant and machinery
-
10%-20% reducing balance
Motor vehicles
-
25% reducing balance
Computer equipment
-
20% straight line

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.

 
2.4

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.5

Development costs

Research and development expenditure is written off to the profit and loss account. 

 
2.6

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 balance sheet 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.

 
2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 16

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.9

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.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Balance Sheet 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 assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Page 17

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)


2.9
Financial instruments (continued)

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument 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.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

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.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 18

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.11

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.12

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.13

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.

 
2.14

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 Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 19

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.15

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.16

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 balance sheet 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 balance sheet 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 balance sheet date.

 
2.17

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.

 
2.18

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

Page 20

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of the estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on the amounts recognised in the financial statements.
Revenue 
The key judgment made by management in respect of revenue is the point at which that revenue should be recognised. Management consider that revenue is to be recognised when delivery is made to customers as this is when the risk and rewards are transferred. 
Tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors.
Operating lease commitments
The company has entered into commercial lease contracts and as a lessee it obtains use of property, plant and equipment. The classification of such leases as operating or finance lease requires the Company to determine, based on evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the Balance Sheet. 


4.


Turnover

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


2023
2022
£
£

Supply of Organic and Free From food
27,365,069
23,904,561


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
24,887,275
21,679,970

Rest of Europe
2,392,883
2,107,297

Rest of the World
84,911
117,294

27,365,069
23,904,561


Page 21

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Research & development charged as an expense
-
13,880

Depreciation of tangible fixed assets
765,103
838,990

Fees payable to the Group's auditor for the audit of the Group's annual financial statements
20,000
16,000

Exchange differences
42,209
(37,194)

Other operating lease rentals
108,985
81,130

Defined contribution pension cost
80,648
293,649


6.


Employees

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


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


Wages and salaries
3,105,070
2,773,920
2,939,013
2,698,331

Social security costs
295,934
265,890
269,281
265,890

Cost of defined contribution scheme
80,648
293,649
80,648
293,649

3,481,652
3,333,459
3,288,942
3,257,870


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


        2023
        2022
            No.
            No.







Office and management
33
33



Production and sales
55
56

88
89

Page 22

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

7.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
144,847
139,235

Group contributions to defined contribution pension schemes
23,819
239,735

168,666
378,970


During the year retirement benefits were accruing to 4 directors (2022 - 4) in respect of defined contribution pension schemes.

The highest paid Director received remuneration of £45,633 (2022: 102,800).
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director is £5,955 (2022: £64,415).


8.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
1,540
-

Mortgage interest payable
66,976
-

68,516
-


9.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
117,222
189,086

Adjustments in respect of previous periods
(5,018)
-


Total current tax
112,204
189,086

Deferred tax


Origination and reversal of timing differences
104,404
127

Total deferred tax
104,404
127


Taxation on profit on ordinary activities
216,608
189,213
Page 23

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 20.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
332,175
703,178


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20.5% (2022 - 19%)
61,550
133,604

Effects of:


Expenses not deductible for tax purposes
36
285

Deferred tax not recognised on overseas losses
125,601
29,173

Adjustments to tax charge in respect of prior periods
(5,018)
-

Short-term timing difference leading to an increase in taxation
15,629
26,151

Remeasurement of deferred tax for changes in tax rates
18,810
-

Total tax charge for the year
216,608
189,213


Factors that may affect future tax charges

The main rate of corporation tax increased from 19% to 25% on 1 April 2023. While there is no material impact on 2023, the company expects its future corporation tax liability increase.


10.


Dividends

2023
2022
£
£


Dividends paid on equity capital
200,800
499,200

Page 24

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

11.


Intangible assets

Group





Trademarks

£



Cost


At 1 July 2022
-


Additions
25,999



At 30 June 2023

25,999






Net book value



At 30 June 2023
25,999



At 30 June 2022
-



Page 25

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

12.


Tangible fixed assets

Group






Freehold property
Long-term leasehold property
Plant and machinery
Motor vehicles
Computer equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 July 2022
1,473,972
5,026,297
11,928,174
146,493
456,102
19,031,038


Additions
657,508
853,635
1,016,780
-
56,157
2,584,080


Disposals
-
-
(96,006)
-
(28,160)
(124,166)



At 30 June 2023

2,131,480
5,879,932
12,848,948
146,493
484,099
21,490,952



Depreciation


At 1 July 2022
-
1,417,913
6,717,768
40,617
407,248
8,583,546


Charge for the year on owned assets
-
169,994
545,605
26,469
23,035
765,103


Disposals
-
-
(88,664)
-
(28,160)
(116,824)



At 30 June 2023

-
1,587,907
7,174,709
67,086
402,123
9,231,825



Net book value



At 30 June 2023
2,131,480
4,292,025
5,674,239
79,407
81,976
12,259,127



At 30 June 2022
1,473,972
3,608,384
5,210,406
105,876
48,854
10,447,492

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
1,376,193
1,028,710

Security

Assets held under finance leases or hire purchase contracts are secured against the relevant liability.

Page 26

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

           12.Tangible fixed assets (continued)


Company






Long-term leasehold property
Plant and machinery
Motor vehicles
Computer equipment
Total

£
£
£
£
£

Cost or valuation


At 1 July 2022
5,026,297
10,899,464
146,493
456,102
16,528,356


Additions
853,635
633,344
-
20,096
1,507,075


Disposals
-
(96,006)
-
(28,160)
(124,166)



At 30 June 2023

5,879,932
11,436,802
146,493
448,038
17,911,265



Depreciation


At 1 July 2022
1,417,913
6,717,768
40,617
407,248
8,583,546


Charge for the year on owned assets
169,994
545,605
26,469
23,035
765,103


Disposals
-
(88,664)
-
(28,160)
(116,824)



At 30 June 2023

1,587,907
7,174,709
67,086
402,123
9,231,825



Net book value



At 30 June 2023
4,292,025
4,262,093
79,407
45,915
8,679,440



At 30 June 2022
3,608,384
4,181,696
105,876
48,854
7,944,810






Page 27

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

13.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 July 2022
1,027,235



At 30 June 2023
1,027,235





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

G-FREE ALIMENTARE S.R.L.
Italy
Ordinary
85%

The aggregate of the share capital and reserves as at 30 June 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

G-FREE ALIMENTARE S.R.L.
432,602
(612,689)


14.


Stocks

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

Raw materials and consumables
1,517,939
1,183,934
1,517,939
1,183,934

Finished goods and goods for resale
1,604,122
1,422,422
1,604,122
1,422,422

3,122,061
2,606,356
3,122,061
2,606,356





 

Page 28

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

15.


Debtors

Group

Group
As restated
Company

Company
As restated
2023
2022
2023
2022
£
£
£
£


Trade debtors
4,092,847
3,577,679
3,905,721
3,577,679

Amounts owed by group undertakings
-
-
-
333,171

Other debtors
383,084
920,618
383,016
487,395

Prepayments and accrued income
504,113
404,680
250,956
251,156

Tax recoverable
253,014
-
-
-

Financial instruments
2,134,341
653,111
2,134,341
653,111

7,367,399
5,556,088
6,674,034
5,302,512



16.


Cash and cash equivalents

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

Cash at bank and in hand
2,769,135
4,975,757
2,551,204
4,939,193



17.


Creditors: Amounts falling due within one year

Group

Group
As restated
Company

Company
As restated
2023
2022
2023
2022
£
£
£
£

Bank loans
132,536
132,536
-
-

Trade creditors
2,201,648
2,063,564
2,157,166
2,063,564

Corporation tax
90,721
-
90,721
-

Other taxation and social security
108,119
66,041
67,940
66,041

Obligations under finance lease and hire purchase contracts
117,311
117,311
-
-

Other creditors
179,337
38,405
130,660
38,405

Accruals and deferred income
88,325
47,145
21,257
25,751

Financial instruments
2,125,276
675,976
2,125,276
675,976

5,043,273
3,140,978
4,593,020
2,869,737


Obligations under finance lease and hire purchase contracts of £117,311 (2022: £117,311) are secured against the assets to which they relate.
See note 19 for further details of the bank loan.

Page 29

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

18.


Creditors: Amounts falling due after more than one year

Group

Group
As restated
2023
2022
£
£

Bank loans
1,157,366
1,161,594

Net obligations under finance leases and hire purchase contracts
355,485
314,695

1,512,851
1,476,289


Obligations under finance lease and hire purchase contracts of £355,485 (2022: £314,695) are secured against the assets to which they relate.
See note 19 for further details of the bank loan.


19.


Loans

Bank loans fall due as follows:


Group

Group
As restated
2023
2022
£
£

Amounts falling due within one year

Bank loans
132,536
132,536

Amounts falling due 2-5 years

Bank loans
530,146
530,146

Amounts falling due after more than 5 years

Bank loans
627,220
631,448

1,289,902
1,294,130


Bank loans of £1,289,902 (2022: £1,294,130) are guaranteed by the Italian Government under a local covid recovery scheme. No security or guarantee has been provided by the group in respect of this loan. 
The bank loan is repayable in monthly installments with the final repayment date of August 2031. Interest is charged at 6.75%.

Page 30

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
2023
2022
£
£

Within one year
117,311
117,311

Between 1-5 years
355,485
314,695

472,796
432,006

Obligations under finance lease and hire purchase contracts of £472,796 (2022: £432,006) are secured against the assets to which they relate.


21.


Deferred taxation


Group



2023


£






At beginning of year
(694,057)


Charged to profit or loss
(104,404)



At end of year
(798,461)

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

Accelerated capital allowances
(798,461)
(694,057)
(798,461)
(694,057)


22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



3,200 (2022 - 3,200) Ordinary A shares of £1.00 each
3,200
3,200
3,200 (2022 - 3,200) Ordinary B shares of £1.00 each
3,200
3,200
4,000 (2022 - 4,000) Ordinary C shares of £1.00 each
4,000
4,000
4,000 (2022 - 4,000) Ordinary D shares of £1.00 each
4,000
4,000
1,600 (2022 - 1,600) Ordinary E shares of £1.00 each
1,600
1,600
4,000 (2022 - 4,000) Ordinary F shares of £1.00 each
4,000
4,000

20,000

20,000


Page 31

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

23.


Reserves

Non-controlling interests

The non-controlling interests reserve represents the cumulative profit attributable to owners outside of the group.

Profit and loss account

The profit and loss account represents the cumulative profit available for distribution to share holders


24.


Prior year adjustment

During the year a prior year adjustment was recognised to reflect the fair value of forward contracts outstanding as at 30 June 2022. The impact of this prior year adjustment is to decrease profit by £22,865, increase current assets by £2,134,341 and increase current liabilities by £2,125,276.
The comparative figures have also been restated to correctly show the repayment of bank loans and HP liabilities in the periods to which they relate. This has led to 2022 current liabilities decreasing by £1,161,594 and 2022 non-current liabilities increasing by the same amount. There is no impact on 2022 net assets or profit for the year.


25.


Pension commitments

The company operates a defined contribution scheme. The assets 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 company to the fund and amounted to £80,648 (2022: £293,649). Pension contributions amounting to £10,959 were outstanding at 30 June 2023 (2022: £9,880).


26.


Commitments under operating leases

At 30 June 2023 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
55,000
55,000
Page 32

 
DOVES FARM FOODS LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

27.Related party transactions

During the year the company entered into transactions with the directors M J Marriage and C E Marriage, trading as Doves Farm, for the purchase of organic grain to the value of £60,601 (2022: £54,720). Salaries were also recharged amounting to £50,066 (2022: £59,707) to the same party. At the year end the company was owed £Nil (2022: £Nil) by Doves Farm. All transactions were on an arms length basis.
During the year, the company occupied land and buildings owned by the directors to whom £55,000 (2022: £55,000) rent was paid.
M J Marriage was paid a dividend in the year of £65,600 (2022: £92,800), C E Marriage was paid a dividend in the year of £59,200 (2022: £38,400), J J Marriage was paid a dividend in the year of £8,000 (2022: £28,000) and R N L Marriage was paid a dividend in the year of £8,000 (2022: £28,000). One other family shareholder received dividends of £60,000 in total (2022: £288,000), meaning that the total dividends paid to shareholders were £200,800 (2022: £499,200).
At the year end, a trust, controlled by the directors, was due royalty payments of £32,422 (2022: £28,525 due to the directors) from the company for the use of trademarks, included in other creditors.
Key management remuneration related to directors and the senior management team of £404,800 (2022: £411,904) was paid during the year. 


28.


Controlling party

In the opinion of the Directors there is no one controlling party.


Page 33