Registration number:
Newsells Park Stud Limited
for the Year Ended 31 December 2023
Newsells Park Stud Limited
(Registration number: 03980333)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Investments |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
15,651,001 |
15,651,001 |
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Retained earnings |
1,710,682 |
2,535,841 |
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Shareholders' funds |
17,361,683 |
18,186,842 |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
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Newsells Park Stud Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Audit report
Key sources of estimation uncertainty
Impairment of stock and fixed assets
Determining whether stock and fixed assets require a provision for impairment involves estimation. The value of such assets is considered with reference to advice provided from professional third-party valuers. In the year ended 31 December 2023:
Broodmares were impaired by £226,867 (2022: £455,263) during the year resulting in a net book value of £9,128,144 (2022: £8,463,400). Stallion shares were impaired by £11,078 (2022: reversed by £49,624) during the year resulting in a net book value of £844,945 (2022: £1,051,188).
Depreciation of fixed assets
The Company reviews the residual values, estimated useful lives and depreciation rates of its tangible fixed assets at each reporting date to identify where any evidence of significant change exists since the last reporting date. The net book value of tangible fixed assets at 31 December 2023 was £12,897,648 (2022: £12,498,995).
Revenue recognition
Turnover primarily comprises of the fair value of the consideration received or receivable for the sale of horses and provision of boarding services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Newsells Park Stud Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Foreign currency transactions and balances
Non-monetary items measured at historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current tax payable.
Tangible assets
Tangible assets are stated in the balance sheet 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.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
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 the profit or loss.
No depreciation is provided on freehold land or elements of freehold property improvements deemed to have indefinite lives.
Residual value is calculated on prices prevailing at the date of acquisition. Assets are reviewed for impairment, when events or changes in circumstances indicate the carrying value may not be recoverable. Assets are also reviewed for reversal of impairment when events or changes in circumstances indicate that its value prior to impairment can be recovered.
Depreciation is provided on the following basis:
Newsells Park Stud Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Asset class |
Depreciation method and rate |
Property improvements |
2.5% straight-line |
Plant and machinery |
20% straight-line |
Motor vehicles |
20% straight-line |
Fixtures and fittings |
15% straight-line |
Office equipment |
25% straight-line |
Fencing |
10% straight-line |
Stallion interests |
up to 16 years of age straight-line |
Broodmares |
up to 16 years of age straight-line |
Investments
Investments 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 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.
Stocks
The cost of nominations purchased, or depreciation on relevant stallion interests, together with broodmare depreciation is capitalised into stock as in-utero foals following a positive pregnancy diagnosis.
Interests in foals, yearlings and horses in training held for resale are stated at the lower of cost and net realisable value. Where a foal is born to one of the Company's own broodmares, the cost comprises the nomination fee payable to the stallion owner.
Where a broodmare is purchased in foal, a proportion of the cost is attributed to the foal based on the estimated nomination fee that would have been payable to the stallion owner, had the mare been covered at the expense of the Company. Where a broodmare is leased for the purpose of producing a foal, the value of the foal comprises the lease cost of the broodmare and the nomination fee payable to the stallion owner.
Broodmare depreciation is capitalised into the value of stock in line with FRS 102 Section 34.
The comparison of cost and net realisable value is separately undertaken for each individual bloodstock asset using an independent valuation at the year end.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Newsells Park Stud Limited
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.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Staff numbers |
The average number of persons employed by the company (including the director) during the year, was
Newsells Park Stud Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Tangible assets |
Property improvements |
Broodmares |
Plant and machinery |
Stallion interests |
Motor vehicles |
Total |
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Cost or valuation |
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At 1 January 2023 |
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Additions |
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Disposals |
- |
( |
( |
( |
( |
( |
Transfers |
- |
( |
- |
- |
- |
( |
At 31 December 2023 |
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Depreciation |
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At 1 January 2023 |
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Charge for the year |
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Eliminated on disposal |
- |
( |
( |
( |
( |
( |
Impairment |
- |
( |
- |
( |
- |
( |
At 31 December 2023 |
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Carrying amount |
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At 31 December 2023 |
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At 31 December 2022 |
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Newsells Park Stud Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Of the total depreciation of £1,732,955 (2022: £1,715,515), an amount of £701,953 (2022: £536,290) has been debited to profit or loss, and stallion and broodmare depreciation totalling £1,031,002 (2022: £1,179,225) was capitalised into stocks.
Included within property improvements are assets with a cost of £80,000 (2022: £80,000) which are deemed to have an indefinite life, and therefore no depreciation is currently being recognised.
Stocks |
2023 |
2022 |
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Yearlings |
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Foals |
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Nomination / in utero |
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Older horses and horses in training |
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Other stock |
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Debtors |
Current |
Note |
2023 |
2022 |
Trade debtors |
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Amounts owed by related parties |
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Prepayments |
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Other debtors |
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Current asset investments |
2023 |
2022 |
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Other investments |
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Newsells Park Stud Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Creditors |
Creditors: amounts falling due within one year
2023 |
2022 |
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Due within one year |
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Trade creditors |
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Amounts owed to group undertakings |
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Taxation and social security |
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Other creditors |
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Creditors: amounts falling due after more than one year
Note |
2023 |
2022 |
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Due after one year |
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Loans and borrowings |
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Loans and borrowings |
2023 |
2022 |
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Non-current loans and borrowings |
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Other borrowings |
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The loan amount is unsecured and interest free.
Newsells Park Stud Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Related party transactions |
The company will be adopting the small group exemption under FRS 102 Section 1A and as such is not required to disclose any related party transactions other than those listed below.
Other transactions with the director |
During the period G F Smith-Bernal had a loan with the company.
At the balance sheet date, the amount due to G F Smith-Bernal was £7,651,935 (2022 - £4,588,175). This loan is interest-free.
Key management personnel
Key management personnel are those having authority and responsibility for planning, controlling and directing the activities of the Company.
Purchases with companies where key management personnel are directors amounted to £33,000 (2022: £Nil). This amount is included in accruals at the period end.
The investments held by the company of £1,602,000 (2022: £100,000) are in syndicates which are managed by a member of the company's key management personnel. Included within other creditors is £241,349 (2022: £nil) which relates to amount payable relating to the syndicates.
Parent and ultimate parent undertaking |
The company's immediate parent is
Non adjusting events after the financial period |
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