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REGISTERED NUMBER: 04310055 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2023

FOR

WILLES FARMING LTD

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)






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 4

Statement of Income and Retained Earnings 7

Balance Sheet 8

Cash Flow Statement 10

Notes to the Cash Flow Statement 11

Notes to the Financial Statements 13


WILLES FARMING LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 30 NOVEMBER 2023







DIRECTORS: P A Willes
J O Willes
Mrs S J Berry
Miss K L Willes
H J Willes



REGISTERED OFFICE: St. John's House
Castle Street
Taunton
Somerset
TA1 4AY



REGISTERED NUMBER: 04310055 (England and Wales)



AUDITORS: MITCHELLS
Chartered Accountants and Statutory Auditors
St. John's House
Castle Street
TAUNTON
Somerset
TA1 4AY



BANKERS: Lloyds Bank plc
5, High Street
BIDEFORD
Devon



SOLICITORS: Burges Salmon
One Glass Wharf
Bristol
BS2 0ZX

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

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 is operating within the UK dairy industry initially producing milk for the local cheesemaking company in which the company's shareholder also holds a majority holding. During the period under review the UK has continued to experience a 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 war in Ukraine which has led to a global energy price surge and shortages of wheat, sunflower oil and maize. With the expectation of a reduction in the price paid for the milk the company opted to cease milk production and has hired out its dairy herds to an existing dairy business operated by one of its directors which also supplies milk to the local cheesemaking company. It has retained the right to the progeny but is allowing the hirer to undertake the milking process. The company also sold the forage crops from the land which it farmed and provided subcontracting services..

Year ended 30 November 2023 30 November 2022

Turnover (£) 10,644,323 20,486,613

Milk production (L) 10,414,966 34,628,874

Gross profit margin (%) 43.2 53.2

Profit/(loss) before tax (£) 817,736 5,901,681


At the end of the year, the net assets totalled £22,905,085 (2022 £22,365,533)

Given the straight forward 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's management have a wealth of knowledge and experience in the dairy industry. As mentioned above, the company's dairy herds supply milk to a connected company with a long track record of manufacturing good quality cheddar cheese which is a dietary staple and is unlikely to see a loss of demand. The trading performance of the company could, however, be affected if there were to be any significant problems with the quality of the milk making it unsuitable for cheese production. Or if the cheese manufacturing company or the director's dairy business were to fail for any reason. There is, however, still a demand for liquid milk so there would most likely still be a market for the milk and the company could take back full responsibility for the herds. This is no different a position to any other producer in this position and none 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 any changing business circumstances.

ON BEHALF OF THE BOARD:





P A Willes - Director


28 August 2024

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

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.

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.

P A Willes
J O Willes
Mrs S J Berry

Other changes in directors holding office are as follows:

Miss K L Willes - appointed 2 November 2023
H J Willes - appointed 2 November 2023

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), 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 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;
-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.

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:





P A Willes - Director


28 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
WILLES FARMING LTD

Opinion
We have audited the financial statements of Willes Farming Ltd (the 'company') for the year ended 30 November 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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
WILLES FARMING 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
WILLES FARMING 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.




David Mitchell FCA (Senior Statutory Auditor)
for and on behalf of MITCHELLS
Chartered Accountants and Statutory Auditors
St. John's House
Castle Street
TAUNTON
Somerset
TA1 4AY

28 August 2024

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 30 NOVEMBER 2023

30.11.23 30.11.22
Notes £    £    £    £   

TURNOVER 10,644,323 20,486,613

Cost of sales 6,051,034 9,592,503
GROSS PROFIT 4,593,289 10,894,110

Distribution costs 28,482 43,861
Administrative expenses 6,431,489 6,003,815
6,459,971 6,047,676
(1,866,682 ) 4,846,434

Other operating income 2,530,516 641,525
OPERATING PROFIT 4 663,834 5,487,959

Income from fixed asset investments 493,218 416,887
Interest receivable and similar income 198,192 9,473
691,410 426,360
1,355,244 5,914,319
Gain/loss on revaluation of investments (495,175 ) 19,572
860,069 5,933,891

Interest payable and similar expenses 5 42,333 32,210
PROFIT BEFORE TAXATION 817,736 5,901,681

Tax on profit 6 278,184 1,016,069
PROFIT FOR THE FINANCIAL YEAR 539,552 4,885,612

Retained earnings at beginning of year 22,364,533 17,478,921

RETAINED EARNINGS AT END OF
YEAR

22,904,085

22,364,533

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

BALANCE SHEET
30 NOVEMBER 2023

30.11.23 30.11.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 - 11,654
Tangible assets 8 10,382,559 10,515,300
Investments 9 11,529,721 10,419,896
21,912,280 20,946,850

CURRENT ASSETS
Stocks 10 674,779 1,961,511
Debtors 11 6,170,330 7,000,096
Cash at bank and in hand 4,330,678 338,162
11,175,787 9,299,769
CREDITORS
Amounts falling due within one year 12 9,147,091 6,985,231
NET CURRENT ASSETS 2,028,696 2,314,538
TOTAL ASSETS LESS CURRENT
LIABILITIES

23,940,976

23,261,388

PROVISIONS FOR LIABILITIES 16 (1,024,753 ) (874,245 )

ACCRUALS AND DEFERRED INCOME 17 (11,138 ) (21,610 )
NET ASSETS 22,905,085 22,365,533

CAPITAL AND RESERVES
Called up share capital 18 1,000 1,000
Retained earnings 19 22,904,085 22,364,533
SHAREHOLDERS' FUNDS 22,905,085 22,365,533

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

BALANCE SHEET - continued
30 NOVEMBER 2023



The financial statements were approved by the Board of Directors and authorised for issue on 28 August 2024 and were signed on its behalf by:




P A Willes - Director



J O Willes - Director


WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

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 4,570,102 2,479,950
Interest paid (53,861 ) (20,808 )
Interest element of hire purchase payments
paid

(75

)

(75

)
Tax paid (627,026 ) (6,657 )
Net cash from operating activities 3,889,140 2,452,410

Cash flows from investing activities
Purchase of tangible fixed assets (2,585,010 ) (3,064,095 )
Purchase of fixed asset investments (1,605,000 ) -
Sale of tangible fixed assets 721,621 1,638,510
Loans made in year (1,755,728 ) -
Loan repayments in year 60,000 2,448,146
Interest received 113,395 32,809
Dividends received 493,218 416,887
Net cash from investing activities (4,557,504 ) 1,472,257

Cash flows from financing activities
New loans in year 6,716,959 1,165,818
Loan repayments in year (1,145,818 ) (2,130,008 )
Capital repayments in year (142,500 ) (214,000 )
Net cash from financing activities 5,428,641 (1,178,190 )

Increase in cash and cash equivalents 4,760,277 2,746,477
Cash and cash equivalents at beginning of
year

2

(429,599

)

(3,176,076

)

Cash and cash equivalents at end of year 2 4,330,678 (429,599 )

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

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 817,736 5,901,681
Depreciation charges 1,028,158 879,439
Profit on disposal of fixed assets (112,232 ) (52,825 )
Loss/(gain) on revaluation of fixed assets 495,175 (19,572 )
Government grants (18,045 ) (24,483 )
Finance costs 42,333 32,210
Finance income (691,410 ) (426,360 )
1,561,715 6,290,090
Decrease/(increase) in stocks 1,286,732 (513,027 )
Decrease/(increase) in trade and other debtors 2,610,291 (3,822,774 )
(Decrease)/increase in trade and other creditors (888,636 ) 525,661
Cash generated from operations 4,570,102 2,479,950

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 4,330,678 338,162
Bank overdrafts - (767,761 )
4,330,678 (429,599 )
Year ended 30 November 2022
30.11.22 1.12.21
£    £   
Cash and cash equivalents 338,162 160,278
Bank overdrafts (767,761 ) (3,336,354 )
(429,599 ) (3,176,076 )


WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023

3. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.12.22 Cash flow At 30.11.23
£    £    £   
Net cash
Cash at bank and in hand 338,162 3,992,516 4,330,678
Bank overdrafts (767,761 ) 767,761 -
(429,599 ) 4,760,277 4,330,678
Debt
Finance leases (142,500 ) 142,500 -
Debts falling due within 1 year (1,265,818 ) 1,120,818 (145,000 )
(1,408,318 ) 1,263,318 (145,000 )
Total (1,837,917 ) 6,023,595 4,185,678

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

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

1. STATUTORY INFORMATION

Willes Farming Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible fixed assets
Basic payment entitlements were capitalised as intangible assets. The entitlements were carried at market value at the balance sheet date with adjustments to value being taken through the Income Statement.

With the de-linking of Basic payments from entitlements from 1 January 2024, entitlements became worthless following the 15 May 2023 application deadline for 2023 claims. The company's entitlements have, therefore, been written off.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Improvements to property - 4% on cost
Plant and machinery - 15% on cost
Dairy Herd - not provided

The dairy herds are valued at the lower of cost and net realisable value with adjustments to value taken through the Income Statement.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items, with the exception of forage crop stocks which are carried at market value.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.


WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

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.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

Fixed asset investments
Listed Investments
The company holds Lloyds Banking Group plc ordinary shares as an investment.

In accordance with the Financial Reporting Standard these investments are carried on the statement of financial position at cost subject to revaluation where appropriate.

Unlisted Investments
The company has made investments in companies in which it has a participating interest but no overall control. These investments comprise investment in the share capital of the relevant company.

In accordance with the Financial Reporting Standard these investments are carried on the statement of financial position at cost together with additional information by way of a note to the accounts.

Government grants
The government grants relate to expenditure on fixed assets 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. EMPLOYEES AND DIRECTORS
30.11.23 30.11.22
£    £   
Wages and salaries 2,446,099 2,304,503
Social security costs 145,454 135,903
Other pension costs 211,001 67,886
2,802,554 2,508,292

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

3. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
30.11.23 30.11.22

Farm workers 53 48
Director 1 1
54 49

30.11.23 30.11.22
£    £   
Directors' remuneration 11,107 8,975
Directors' pension contributions to money purchase schemes 180,078 40,082

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 1

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.11.23 30.11.22
£    £   
Hire of plant and machinery 212,389 158,567
Other operating leases - rent 65,021 55,184
Depreciation - owned assets 1,028,158 815,539
Depreciation - assets on hire purchase contracts - 63,900
Profit on disposal of fixed assets (112,232 ) (52,825 )
Audit fee 5,270 5,090
Foreign exchange differences 1,127 (12,276 )
Accountancy and tax services provided by Auditors Firm 35,727 32,304

5. INTEREST PAYABLE AND SIMILAR EXPENSES
30.11.23 30.11.22
£    £   
Bank interest 21 929
Trade Interest 144 472
Loan 42,093 30,734
Hire purchase 75 75
42,333 32,210

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

6. 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 127,676 627,026

Deferred tax 150,508 389,043
Tax on profit 278,184 1,016,069

UK corporation tax was charged at 19%) in 2022.

7. INTANGIBLE FIXED ASSETS
Payment
entitlements
£   
COST
At 1 December 2022 14,951
Disposals (14,951 )
At 30 November 2023 -
AMORTISATION
At 1 December 2022 3,297
Eliminated on disposal (3,297 )
At 30 November 2023 -
NET BOOK VALUE
At 30 November 2023 -
At 30 November 2022 11,654

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

8. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and Dairy
property property machinery Herd Totals
£    £    £    £    £   
COST
At 1 December 2022 1,757,125 305,657 6,710,540 4,752,050 13,525,372
Additions 6,369 118,600 1,354,333 13,850 1,493,152
Disposals (429,570 ) - (384,555 ) - (814,125 )
At 30 November 2023 1,333,924 424,257 7,680,318 4,765,900 14,204,399
DEPRECIATION
At 1 December 2022 - 201,538 2,808,534 - 3,010,072
Charge for year - 16,970 1,011,188 - 1,028,158
Eliminated on disposal - - (216,390 ) - (216,390 )
At 30 November 2023 - 218,508 3,603,332 - 3,821,840
NET BOOK VALUE
At 30 November 2023 1,333,924 205,749 4,076,986 4,765,900 10,382,559
At 30 November 2022 1,757,125 104,119 3,902,006 4,752,050 10,515,300

Included in cost of land and buildings is freehold land of £ 1,078,077 (2022 - £ 1,501,278 ) which is not depreciated.

The remainder of the freehold property represents a property used for staff accommodation which the directors consider is unlikely to diminish in value over the long term bearing in mind the past track record of the UK residential property market. Accordingly, no depreciation is provided on this property.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
At 1 December 2022 426,000
Transfer to ownership (426,000 )
At 30 November 2023 -
DEPRECIATION
At 1 December 2022 127,800
Transfer to ownership (127,800 )
At 30 November 2023 -
NET BOOK VALUE
At 30 November 2023 -
At 30 November 2022 298,200

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

9. FIXED ASSET INVESTMENTS
Listed Unlisted
investments investments Totals
£    £    £   
COST OR VALUATION
At 1 December 2022 9,179,332 1,240,564 10,419,896
Additions - 1,605,000 1,605,000
Revaluations (495,175 ) - (495,175 )
At 30 November 2023 8,684,157 2,845,564 11,529,721
NET BOOK VALUE
At 30 November 2023 8,684,157 2,845,564 11,529,721
At 30 November 2022 9,179,332 1,240,564 10,419,896

Cost or valuation at 30 November 2023 is represented by:

Listed Unlisted
investments investments Totals
£    £    £   
Valuation in 2015 (287,211 ) - (287,211 )
Valuation in 2016 (1,338,578 ) - (1,338,578 )
Valuation in 2017 730,611 (4,775 ) 725,836
Valuation in 2018 (956,175 ) - (956,175 )
Valuation in 2019 520,325 - 520,325
Valuation in 2020 (2,523,725 ) - (2,523,725 )
Valuation in 2021 2,188,165 - 2,188,165
Valuation in 2022 19,572 - 19,572
Valuation in 2023 (495,175 ) - (495,175 )
Cost 10,826,348 2,850,339 13,676,687
8,684,157 2,845,564 11,529,721

If listed investments had not been revalued they would have been included at the following historical cost:

30.11.23 30.11.22
£    £   
Cost 10,826,348 10,826,348

Listed investments were valued on an open market basis on 30 November 2023 by reference to the Yahoo Finance website .

Market value of listed investments at 30 November 2023 - £ 8,684,157 (2022 - £ 9,179,332 ).

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

9. FIXED ASSET INVESTMENTS - continued

As at 30 November 2023 listed investments represent the company's purchases of share capital in Lloyds Banking Group plc. The company held 19,572,137 10p ordinary shares [2022 - 19,572,137 shares] which have been valued at open market value.

Revaluations were historically carried in a revaluation reserve with annual movements reflected in a Statement of Total Recognised Gains and Losses. With the transition to FRS 102, movements are now reflected in the Income Statement and the aggregate balance of revaluations is included in Retained Earnings. The cost and revaluations in respect of this holding are reflected on the previous page.

As at 30 November 2023 unlisted investments represent the company's purchase of share capital in Hungarian trading companies, which are as follows:

1) AGRO-PROFIT Novenytermeszto es Kereskedelmi Korlatolt Felelossegu Tarasag
(Incorporated in Hungary).

Share capital owned:
50% - Ordinary share class 1 (nominal value 1 Hungarian Forint [HUF])
50% - Ordinary share class 2 (nominal value 1 HUF)
50% - Ordinary share class 3 (nominal value 1 HUF)

The financial statements for the year ended 30 September 2023 show:
Profit for the year - 239,650,000 HUF (£536,586) [2022 - 36,388,000 HUF (£81,277)]
Aggregate amount of capital and reserves - 867,043,000 HUF (£1,929,448) [2022 - 627,394,000 HUF (£1,304,911))]
The principal activity of the company is that of dairy farming.

2) Pelpusztai Mezogazdasagi Korlatolt Felelossegu Tarasag
(Incorporated in Hungary).

Share capital owned:
49.9675% - Ordinary share class 1 (nominal value 1 HUF)
49.9675% - Ordinary share class 2 (nominal value 1 HUF)
49.9675% - Ordinary share class 3 (nominal value 1 HUF)

The financial statements for the year ended 30 September 2023 show:
Profit for the year - 3,152,477,000 HUF (£7,058,522) [2022 - 2,357,089,000 HUF (£5,264,841)]
Aggregate amount of capital and reserves - 16,362,318,000 HUF (£36,411,446) [2022 - 12,382,757,000 HUF (£25,754,772))]

The principal activity of the company is that of dairy farming.

Together with the company's purchase of share capital in a UK company: East Lancashire Regeneration Ltd.

Share capital owned:
33.3333% - A Ordinary shares (nominal value £1)

The financial statements for the year ended 30 April 2023 show:
Profit for the year £235,174 [2022 - £221,446]
Aggregate amount of capital and reserves - £736,797 [2022 - £501,623]

The principal activity of the company is that of commercial property letting.

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

10. STOCKS
30.11.23 30.11.22
£    £   
Closing Livestock 511,662 193,412
Other Closing Stocks 163,117 1,768,099
674,779 1,961,511

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.11.23 30.11.22
£    £   
Trade debtors 3,837,047 6,219,486
Other debtors 222,242 281,953
Parkham Farms Ltd Loan 1,754,228 -
Parkham Farms Ltd Current A/c 2,685 13,258
Pelpusztai Loan 36,129 36,129
VAT - 232,509
Prepayments and accrued income 317,999 216,761
6,170,330 7,000,096

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.11.23 30.11.22
£    £   
Bank loans and overdrafts (see note 13) - 767,761
Other loans (see note 13) 145,000 1,265,818
Hire purchase contracts (see note 14) - 142,500
Trade creditors 1,746,524 2,708,869
Tax 149,631 648,981
Social security and other taxes 5,107 15,054
VAT 37,783 -
Other creditors - 1,099,431
Beckland Dairy Current A/c 6,931,069 239,110
Accrued expenses 131,977 97,707
9,147,091 6,985,231

13. 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 - 767,761
Overacres Ltd Loan 145,000 120,000
Parkham Farms Ltd Loan - 1,145,818
145,000 2,033,579

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

14. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

30.11.23 30.11.22
£    £   
Net obligations repayable:
Within one year - 142,500

15. SECURED DEBTS

The following secured debts are included within creditors:

30.11.23 30.11.22
£    £   
Bank overdraft - 767,761
Hire purchase contracts - 142,500
- 910,261

The bank has security for any overdraft by way of an unlimited debenture dated 30/11/01 including the right of set-off and an unlimited guarantee dated 17/12/01.

The hire purchase creditors were secured against the items of equipment that were the subject of the agreements. Failure to complete payment under the terms of the agreements would have entitled the owner to recover the equipment. The owner was entitled to a minimum of half of the total amount payable under an agreement and return of the goods if an agreement was terminated.

16. PROVISIONS FOR LIABILITIES
30.11.23 30.11.22
£    £   
Deferred tax
Other timing differences 20,269 -
(Accelerated)/decelerated capital allowances
re plant and equipment

1,008,494

845,915
(Accelerated)/decelerated capital allowances
re agricultural buildings

(1,226

)

(198

)
Deferred government grant (2,784 ) (4,106 )
Stock valuation adjustment - 31,054
(Accelerated)/decelerated amortisation re
entitlements

-

1,580
1,024,753 874,245

Deferred
tax
£   
Balance at 1 December 2022 874,245
Provided during year 150,508
Balance at 30 November 2023 1,024,753

WILLES FARMING LTD (REGISTERED NUMBER: 04310055)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2023

17. ACCRUALS AND DEFERRED INCOME
30.11.23 30.11.22
£    £   
Deferred government grants 11,138 21,610

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.11.23 30.11.22
value: £    £   
1,000 Class A Ordinary £1 1,000 1,000

19. RESERVES
Retained
earnings
£   

At 1 December 2022 22,364,533
Profit for the year 539,552
At 30 November 2023 22,904,085

20. RELATED PARTY DISCLOSURES

P.A. Willes, the managing director who holds 100% of the issued share capital of the company, allowed the company to occupy Sedborough Farm, Beckland Farm, Higher Alminstone Farm and Welsford Farm from which it trades, and various other properties, for nil consideration .


Other related parties
30.11.23 30.11.22
£ £
Sales 12,518,750 19,900,788
Purchases (637,707 ) (849,303 )
Interest 41,166 (22,701 )
Amount due from related party 5,538,653 5,940,683
Amount due to related party (7,727,525 ) (2,430,758 )

During the year, a total of key management personnel compensation of £ 69,053 (2022 - £ 49,057 ) was paid.

The ultimate controlling party is P A Willes.