REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2023 |
FOR |
PARKHAM FARMS LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2023 |
FOR |
PARKHAM FARMS LTD |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Statement of Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 11 |
Cash Flow Statement | 12 |
Notes to the Cash Flow Statement | 13 |
Notes to the Financial Statements | 15 |
PARKHAM FARMS LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
St. John's House |
Castle Street |
TAUNTON |
Somerset |
TA1 4AY |
BANKERS: |
5, High Street |
BIDEFORD |
Devon |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
The directors present their strategic report for the year ended 30 November 2023. |
REVIEW OF BUSINESS |
The company has continued to achieve good results in a competitive market place. During the period under review the UK has seen a continuing cost of living crisis driven by high inflation. This was initially driven by increased demand and reduced supply as the economy emerged from Covid and has subsequently been exacerbated by the continuing war in Ukraine which has led to a global energy price surge and shortages of wheat, sunflower oil and maize. This in turn has driven a general increase in food prices. As anticipated, the company experienced a substantial but short term increase in operating profits due to the economic conditions in the previous year. Results for the current year are more in line with historic expectations. |
Year ended | 30 November 2023 | 30 November 2022 |
Turnover (£) | 55,362,962 | 55,578,944 |
Turnover growth (%) | (0.04) | 37.2 |
Gross profit margin (%) | 10.1 | 17.9 |
Profit before tax (£) | 1,275,575 | 6,291,606 |
At the end of the year, the net assets totalled £19,698,660 (2022 £18,524,336) |
Given the straightforward nature of the business, the company's directors are of the opinion that any further analysis using key performance indicators [KPI's] is not necessary for an understanding of the development, performance or position of the business. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company has a good track record for quality produce. The trading performance of the company could, however, be affected if there were to be any significant problems with the quality of cheese stocks either due to production or storage issues. This is no different a position to any other manufacturer in this industry and neither of these factors have increased in likelihood. There are no other risks of sufficient importance to mention in this report. The company's directors are confident that the business will continue to adapt to changing business circumstances. |
SECTION 172(1) STATEMENT |
The company has a number of stakeholders, including employees; farmers; suppliers; customers; the local community; and its shareholders. The directors recognize the fundamental importance of each of these groups to the company and maintain ongoing dialogues with each on matters relevant to them. |
During the period, the company's directors acted in a way that they considered, in good faith, would most likely promote the success of the company for the benefit of its members as a whole and, in doing so, have had regards to the matters set out in section 172(1)(a)-(f) of the Companies Act 2006 when making decisions. In addition, the company's directors also had regard to other factors and matters that they considered relevant to decisions made. When required, the company's directors held board meetings to make key decisions relating to the company, where such matters and factors were considered, as relevant. |
ON BEHALF OF THE BOARD: |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 30 November 2023. |
PRINCIPAL ACTIVITIES |
The principal activities of the company in the year under review were those of manufacturing and selling cheese and marketing surplus milk. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 November 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The directors engage with the members of their milk field who produce the milk which is the primary cost to the company, including holding producer meetings when necessary. |
The directors engage directly with their customers at all levels. |
DISCLOSURE IN THE STRATEGIC REPORT |
The Strategic Report on page 2 sets out a fair review of the business and a description of the principal risks and uncertainties facing the company. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARKHAM FARMS LTD |
Opinion |
We have audited the financial statements of Parkham Farms Ltd (the 'company') for the year ended 30 November 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The 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 company's affairs as at 30 November 2023 and of its 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our 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. |
In connection with our audit of the financial statements, 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 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. |
Opinions 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARKHAM FARMS LTD |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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 Statement of Directors' Responsibilities set out on page three, 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 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 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 company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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 financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- Enquiry of management and those charged with governance around actual and potential litigation and claims. |
- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations. |
- Reviewing minutes of meetings of those charged with governance. |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with |
applicable laws and regulations. |
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments |
for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of |
business. |
Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities. It is the primary responsibility of management and those charged with governance to ensure that the entity's operations are conducted in accordance with the provisions of the laws and regulations and for the prevention and detection of fraud. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARKHAM FARMS LTD |
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 2006. Our 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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
St. John's House |
Castle Street |
TAUNTON |
Somerset |
TA1 4AY |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
4,488,945 | 3,879,136 |
1,082,436 | 6,092,871 |
Other operating income | 4 |
OPERATING PROFIT | 7 |
Interest receivable and similar income | 8 |
1,333,600 | 6,302,917 |
Interest payable and similar expenses | 9 |
PROFIT BEFORE TAXATION |
Tax on profit | 10 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
BALANCE SHEET |
30 NOVEMBER 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Fair value reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
BALANCE SHEET - continued |
30 NOVEMBER 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
Called up | Fair |
share | Retained | Share | value | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 December 2021 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 November 2022 | 100,001 | 18,401,721 | 4 | 22,610 | 18,524,336 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 November 2023 | 100,001 | 19,576,045 | 4 | 22,610 | 19,698,660 |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Loans made in year | ( |
) |
Loan repayments in year |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
3,512,343 |
5,364,904 |
Cash and cash equivalents at end of year | 2 |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.11.23 | 30.11.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 58,025 | 11,311 |
Finance income | (53,605 | ) | (27,584 | ) |
2,533,924 | 7,330,939 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 November 2023 |
30.11.23 | 1.12.22 |
£ | £ |
Cash and cash equivalents | 5,720,054 | 3,648,276 |
Bank overdrafts | ( |
) | ( |
) |
5,665,577 | 3,512,343 |
Year ended 30 November 2022 |
30.11.22 | 1.12.21 |
£ | £ |
Cash and cash equivalents | 3,648,276 | 5,376,128 |
Bank overdrafts | ( |
) | ( |
) |
3,512,343 | 5,364,904 |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.12.22 | Cash flow | At 30.11.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,648,276 | 2,071,778 | 5,720,054 |
Bank overdrafts | (135,933 | ) | 81,456 | (54,477 | ) |
3,512,343 | 5,665,577 |
Debt |
Debts falling due within 1 year | - | (1,754,228 | ) | (1,754,228 | ) |
- | (1,754,228 | ) | (1,754,228 | ) |
Total | 3,512,343 | 399,006 | 3,911,349 |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
1. | STATUTORY INFORMATION |
Parkham Farms Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Tangible fixed assets are initially recorded at cost. |
Depreciation is calculated in order to write down the cost of fixed assets over their expected useful lives. |
The rates applied to the fixed assets are as follows: |
Property Improvements | 5% Straight Line |
Plant and Machinery owned and acquired on hire purchase | 33% Reducing Balance |
Leased Equipment | 10% Straight Line |
No depreciation is charged on the freehold property. There is a residential property which was transferred from investment property on 1 December 2021 at its fair value representing deemed cost. This property is not depreciated because the directors consider that, as with the majority of such assets that value is likely to increase over time to the extent that residual value will be at least this fair value. The remainder of the freehold property represents 4.573 Acres of land only. The cost of the buildings sited on this land are included in other categories of fixed assets and are depreciated accordingly. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Cheese stocks on hand are stated at the cost of raw materials plus manufacturing costs less provisions where it is anticipated these costs will not be recoverable. Other stocks on hand are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price less all further costs to completion and all costs to be incurred on disposal. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Government grants |
The government grants historically related to expenditure on fixed assets but for the current year relate to Covid business rates relief and cost of living support payments. The company's policy is to treat capital grants as deferred income and they are then credited to the profit and loss account over the expected useful life of the asset. The basis of calculating the amounts to be credited to the profit and loss account is consistent with the depreciation policy applied to the asset. Revenue grants are treated as income and are credited to the profit and loss account as they are received. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the company. |
An analysis of turnover by class of business is given below: |
30.11.23 | 30.11.22 |
£ | £ |
4. | OTHER OPERATING INCOME |
30.11.23 | 30.11.22 |
£ | £ |
Rents Received |
Contracting and Work Done | 95,576 | 93,128 |
Wayleaves |
Government grants |
Exchange gains | 1,000 | 9,460 |
197,559 | 182,462 |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
5. | EMPLOYEES AND DIRECTORS |
30.11.23 | 30.11.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
30.11.23 | 30.11.22 |
Directors | 3 | 3 |
Production, storage and handling | 30 | 26 |
Milk collection lorry drivers | 5 | 5 |
Administration | 3 | 3 |
6. | DIRECTORS' EMOLUMENTS |
30.11.23 | 30.11.22 |
£ | £ |
Directors' remuneration | 27,134 | 18,016 |
Directors' pension contributions to money purchase schemes | 168,865 | 28,953 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.11.23 | 30.11.22 |
£ | £ |
Hire of plant and machinery on |
operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
Foreign exchange differences | ( |
) | ( |
) |
Hire of plant and machinery |
Accountancy and tax services provided by Auditors Firm |
Professional services provided by Auditors Firm |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
30.11.23 | 30.11.22 |
£ | £ |
Interest received gross |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.11.23 | 30.11.22 |
£ | £ |
Bank interest |
Loan Interest |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.11.23 | 30.11.22 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.11.23 | 30.11.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Deferred tax movement re capital allowances | 162,492 | 194,333 |
Deferred tax movement re freehold property | 1,675 | 5,304 |
Deferred tax movement re investment property | - | (5,304 | ) |
Deferred tax movement re stock valuation adjustments | 34,617 | - |
Total tax charge | 101,251 | 1,163,889 |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
11. | TANGIBLE FIXED ASSETS |
Improvements |
Freehold | to | Plant and |
property | property | machinery | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 December 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 November 2023 |
DEPRECIATION |
At 1 December 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
Freehold property includes 4.573 Acres of land on which no depreciation has been charged. The buildings erected on this land are included within improvements to property and the cold stores that stand on this land are included within plant and equipment. The buildings and plant are all being depreciated within those separate categories of fixed assets. |
During the year a property was reclassified and was moved from investment property. The transfer took place at its fair value as determined at 30 November 2021. The directors do not consider that the residual value of this property is likely to be lower than this value so no depreciation is provided. |
The bank has a first legal charge over the freehold property. |
Cost or valuation at 30 November 2023 is represented by: |
Improvements |
Freehold | to | Plant and |
property | property | machinery | Totals |
£ | £ | £ | £ |
Valuation in 2019 | (7,086 | ) | - | - | (7,086 | ) |
Valuation in 2021 | 35,000 | - | - | 35,000 |
Cost | 227,642 | 522,226 | 11,071,908 | 11,821,776 |
255,556 | 522,226 | 11,071,908 | 11,849,690 |
12. | STOCKS |
30.11.23 | 30.11.22 |
£ | £ |
Cheese, Butter and Cream |
Raw Materials and Sundry Stock |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.11.23 | 30.11.22 |
£ | £ |
Trade debtors |
Other debtors |
Other loans | - | 100,000 |
Willes Farming Ltd Loan | - | 1,145,818 |
Tax |
Prepayments and accrued income |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.11.23 | 30.11.22 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Other loans (see note 15) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Amounts owed to Willes |
Farming Limited | 2,685 | 13,258 |
Amounts owed to Beckland Dairy | 57,704 | 56,143 |
Accrued expenses |
15. | LOANS |
An analysis of the maturity of loans is given below: |
30.11.23 | 30.11.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Willes Farming Ltd Loan | 1,754,228 | - |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
30.11.23 | 30.11.22 |
£ | £ |
Bank overdrafts |
Bank overdrafts are secured by an unlimited debenture over the company's assets dated 18.8.1989 including the right of set-off, an unlimited guarantee dated 17.12.2001 and a first legal charge over the freehold property known as Cheese Plant, Higher Alminstone Farm, Woolfardisworthy, Devon dated 22.5.2003. |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
17. | PROVISIONS FOR LIABILITIES |
30.11.23 | 30.11.22 |
£ | £ |
Deferred tax |
Freehold property | 6,979 | 5,304 |
Accelerated/(decelerated) capital allowances re plant & equipment |
589,267 |
426,264 |
Stock valuation adjustment | 39,626 | 5,009 |
Accelerated capital allowances re industrial buildings |
(1,289 |
) |
(778 |
) |
634,583 | 435,799 |
Deferred |
tax |
£ |
Balance at 1 December 2022 |
Provided during year |
Balance at 30 November 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.11.23 | 30.11.22 |
value: | £ | £ |
Ordinary | £1 | 100,001 | 100,001 |
The ordinary shares carry full rights to vote, to participate in dividends and on a winding up of the company. |
19. | RESERVES |
Fair |
Retained | Share | value |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 December 2022 | 18,424,335 |
Profit for the year | - | - |
At 30 November 2023 | 19,598,659 |
20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
P. A. Willes is a director and the controlling shareholder of Willes Farming Ltd. He also owns the farms in Wales which the company occupies rent free and is the proprietor of the business known as Beckland Dairy. The company has been involved in several arms length transactions with the director and these businesses as summarised in the related party disclosures note. |
As highlighted in the secured debts note, P. A. Willes has given an unlimited guarantee to the bank dated 17.12.2001. The bank have granted an overall overdraft facility to Mr Willes' businesses: Parkham Farms Ltd; Willes Farming Ltd and Beckland Dairy with a limit of £3m. A guarantee for this amount has been given by Parkham Farms Ltd. |
PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 NOVEMBER 2023 |
21. | RELATED PARTY DISCLOSURES |
Key management personnel compensation is disclosed in Note 6 on page 18. |
30.11.23 | 30.11.22 |
£ | £ |
Sales |
Purchases | ( |
) | ( |
) |
Interest | (3,139 | ) | 22,701 |
Amount due to related party | ( |
) | ( |
) |
22. | ULTIMATE CONTROLLING PARTY |
The controlling party is P A Willes. |