Newsells Park Stud Limited 03980333 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is the operation of stud farm, including the standing of stallions, the boarding of bloodstock, consigning horses to the major auction sales, both homebreds and those owned by third parties, together with a complementary racing activity. Digita Accounts Production Advanced 6.30.9574.0 true true 03980333 2023-01-01 2023-12-31 03980333 2023-12-31 03980333 core:CurrentFinancialInstruments 2023-12-31 03980333 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 03980333 core:Non-currentFinancialInstruments 2023-12-31 03980333 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 03980333 core:FurnitureFittings 2023-12-31 03980333 core:LandBuildings core:LongLeaseholdAssets 2023-12-31 03980333 core:MotorVehicles 2023-12-31 03980333 core:OfficeEquipment 2023-12-31 03980333 core:PlantMachinery 2023-12-31 03980333 bus:SmallEntities 2023-01-01 2023-12-31 03980333 bus:Audited 2023-01-01 2023-12-31 03980333 bus:FullAccounts 2023-01-01 2023-12-31 03980333 bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 03980333 bus:RegisteredOffice 2023-01-01 2023-12-31 03980333 bus:Director1 2023-01-01 2023-12-31 03980333 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 03980333 core:FurnitureFittings 2023-01-01 2023-12-31 03980333 core:LandBuildings core:LongLeaseholdAssets 2023-01-01 2023-12-31 03980333 core:LeaseholdImprovements 2023-01-01 2023-12-31 03980333 core:MotorVehicles 2023-01-01 2023-12-31 03980333 core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment 2023-01-01 2023-12-31 03980333 core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment 2023-01-01 2023-12-31 03980333 core:OfficeEquipment 2023-01-01 2023-12-31 03980333 core:OtherPropertyPlantEquipment 2023-01-01 2023-12-31 03980333 core:PlantMachinery 2023-01-01 2023-12-31 03980333 1 2023-01-01 2023-12-31 03980333 1 2023-01-01 2023-12-31 03980333 countries:EnglandWales 2023-01-01 2023-12-31 03980333 2022-12-31 03980333 core:FurnitureFittings 2022-12-31 03980333 core:LandBuildings core:LongLeaseholdAssets 2022-12-31 03980333 core:MotorVehicles 2022-12-31 03980333 core:OfficeEquipment 2022-12-31 03980333 core:PlantMachinery 2022-12-31 03980333 2022-01-01 2022-12-31 03980333 2022-12-31 03980333 core:CurrentFinancialInstruments 2022-12-31 03980333 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 03980333 core:Non-currentFinancialInstruments 2022-12-31 03980333 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 03980333 core:FurnitureFittings 2022-12-31 03980333 core:LandBuildings core:LongLeaseholdAssets 2022-12-31 03980333 core:MotorVehicles 2022-12-31 03980333 core:OfficeEquipment 2022-12-31 03980333 core:PlantMachinery 2022-12-31 iso4217:GBP xbrli:pure

Registration number: 03980333

Newsells Park Stud Limited

Filleted Financial Statements

for the Year Ended 31 December 2023

 

Newsells Park Stud Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 9

 

Newsells Park Stud Limited

(Registration number: 03980333)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

12,897,648

12,498,995

Current assets

 

Stocks

5

8,872,771

9,735,961

Debtors

6

2,080,374

932,635

Investments

7

1,602,000

100,000

Cash at bank and in hand

 

1,224,425

912,197

 

13,779,570

11,680,793

Creditors: Amounts falling due within one year

8

(1,663,600)

(1,404,771)

Net current assets

 

12,115,970

10,276,022

Total assets less current liabilities

 

25,013,618

22,775,017

Creditors: Amounts falling due after more than one year

8

(7,651,935)

(4,588,175)

Net assets

 

17,361,683

18,186,842

Capital and reserves

 

Called up share capital

15,651,001

15,651,001

Retained earnings

1,710,682

2,535,841

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 director on 7 August 2024
 

.........................................
G F Smith-Bernal
Director

 

Newsells Park Stud Limited

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 England and Wales.

The address of its registered office is:
Estate Office
Newsells Park Stud
Barkway
Royston
Hertfordshire
SG8 8DY

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 - '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

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 15 August 2024 was Dean Blunden BFP FCA, who signed for and on behalf of UHY Ross Brooke.

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

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

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.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 45 (2022 - 42).

 

Newsells Park Stud Limited

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

4

Tangible assets

Property improvements
£

Broodmares
£

Plant and machinery
£

Stallion interests
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

11,259,499

18,908,022

2,340,482

3,038,867

193,941

35,740,811

Additions

69,783

3,854,401

77,559

75,000

55,947

4,132,690

Disposals

-

(4,334,974)

(14,300)

(375,000)

(47,500)

(4,771,774)

Transfers

-

(241,038)

-

-

-

(241,038)

At 31 December 2023

11,329,282

18,186,411

2,403,741

2,738,867

202,388

34,860,689

Depreciation

At 1 January 2023

8,585,727

10,444,622

2,093,670

1,987,679

130,118

23,241,816

Charge for the year

129,654

1,213,168

88,733

270,167

31,233

1,732,955

Eliminated on disposal

-

(1,580,649)

(14,300)

(195,251)

(33,983)

(1,824,183)

Impairment

-

(1,018,874)

-

(168,673)

-

(1,187,547)

At 31 December 2023

8,715,381

9,058,267

2,168,103

1,893,922

127,368

21,963,041

Carrying amount

At 31 December 2023

2,613,901

9,128,144

235,638

844,945

75,020

12,897,648

At 31 December 2022

2,673,772

8,463,400

246,812

1,051,188

63,823

12,498,995

 

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.
 

5

Stocks

2023
£

2022
£

Yearlings

20,000

99,999

Foals

3,910,897

3,561,183

Nomination / in utero

3,279,438

3,293,605

Older horses and horses in training

1,645,956

2,774,698

Other stock

16,480

6,476

8,872,771

9,735,961

6

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

1,623,446

511,186

Amounts owed by related parties

10

5,033

12

Prepayments

 

286,277

204,378

Other debtors

 

165,618

217,059

   

2,080,374

932,635

7

Current asset investments

2023
£

2022
£

Other investments

1,602,000

100,000

 

Newsells Park Stud Limited

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

8

Creditors

Creditors: amounts falling due within one year

2023
£

2022
£

Due within one year

Trade creditors

366,227

644,870

Amounts owed to group undertakings

100,532

103,717

Taxation and social security

446,453

45,798

Other creditors

750,388

610,386

1,663,600

1,404,771

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

7,651,935

4,588,175

9

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Other borrowings

7,651,935

4,588,175

The loan amount is unsecured and interest free.

 

Newsells Park Stud Limited

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

10

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.

11

Parent and ultimate parent undertaking

The ultimate controlling party is G F Smith.

 The company's immediate parent is Smith Bernal Family Holdings Limited, incorporated in England and Wales.

 

12

Non adjusting events after the financial period

Due to post balance sheet mortalities, the company has written off £15,840 from tangible assets and £113,757 from stock in the next financial period.