REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2023 |
FOR |
WILLES FARMING LTD |
REGISTERED NUMBER: |
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: |
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 |
SOLICITORS: |
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: |
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. |
Other changes in directors holding office are as follows: |
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: |
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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
St. John's House |
Castle Street |
TAUNTON |
Somerset |
TA1 4AY |
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 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
6,459,971 | 6,047,676 |
(1,866,682 | ) | 4,846,434 |
Other operating income |
OPERATING PROFIT | 4 |
Income from fixed asset investments |
Interest receivable and similar income |
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 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
RETAINED EARNINGS AT END OF YEAR |
WILLES FARMING LTD (REGISTERED NUMBER: 04310055) |
BALANCE SHEET |
30 NOVEMBER 2023 |
30.11.23 | 30.11.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
Tangible assets | 8 |
Investments | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 | ( |
) | ( |
) |
ACCRUALS AND DEFERRED INCOME | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
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 |
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 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Purchase of fixed asset investments | ( |
) |
Sale of tangible fixed assets |
Loans made in year | ( |
) |
Loan repayments in year |
Interest received |
Dividends received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
Increase in cash and cash equivalents |
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 | ( |
) |
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 |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Loss/(gain) on revaluation of fixed assets | 495,175 | (19,572 | ) |
Government grants | ( |
) | ( |
) |
Finance costs | 42,333 | 32,210 |
Finance income | (691,410 | ) | (426,360 | ) |
1,561,715 | 6,290,090 |
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 | 4,330,678 | 338,162 |
Bank overdrafts | ( |
) |
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 | ( |
) | ( |
) |
(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 | ) | 4,330,678 |
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 |
The presentation currency of the financial statements is the Pound Sterling (£). |
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. |
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 |
Improvements to property | - |
Plant and machinery | - |
Dairy Herd | - |
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 |
Social security costs |
Other pension costs |
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 |
30.11.23 | 30.11.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.11.23 | 30.11.22 |
£ | £ |
Hire of plant and machinery |
Other operating leases - rent |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Audit fee |
Foreign exchange differences | ( |
) |
Accountancy and tax services provided by Auditors Firm |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.11.23 | 30.11.22 |
£ | £ |
Bank interest |
Trade Interest |
Loan |
Hire purchase |
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 |
Deferred tax |
Tax on profit |
UK corporation tax was charged at 19%) in 2022. |
7. | INTANGIBLE FIXED ASSETS |
Payment |
entitlements |
£ |
COST |
At 1 December 2022 |
Disposals | ( |
) |
At 30 November 2023 |
AMORTISATION |
At 1 December 2022 |
Eliminated on disposal | ( |
) |
At 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
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 |
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 |
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 |
Transfer to ownership | (426,000 | ) |
At 30 November 2023 |
DEPRECIATION |
At 1 December 2022 |
Transfer to ownership | (127,800 | ) |
At 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
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 | 10,419,896 |
Additions | 1,605,000 |
Revaluations | ( |
) | (495,175 | ) |
At 30 November 2023 | 11,529,721 |
NET BOOK VALUE |
At 30 November 2023 | 11,529,721 |
At 30 November 2022 | 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 |
Other Closing Stocks | 163,117 | 1,768,099 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.11.23 | 30.11.22 |
£ | £ |
Trade debtors |
Other debtors |
Parkham Farms Ltd Loan | 1,754,228 | - |
Parkham Farms Ltd Current A/c | 2,685 | 13,258 |
Pelpusztai Loan | 36,129 | 36,129 |
VAT |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.11.23 | 30.11.22 |
£ | £ |
Bank loans and overdrafts (see note 13) |
Other loans (see note 13) |
Hire purchase contracts (see note 14) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 37,783 | - |
Other creditors |
Beckland Dairy Current A/c | 6,931,069 | 239,110 |
Accrued expenses |
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 |
Overacres Ltd Loan | 145,000 | 120,000 |
Parkham Farms Ltd Loan | - | 1,145,818 |
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 |
15. | SECURED DEBTS |
The following secured debts are included within creditors: |
30.11.23 | 30.11.22 |
£ | £ |
Bank overdraft |
Hire purchase contracts | - | 142,500 |
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 |
Provided during year |
Balance at 30 November 2023 |
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: | £ | £ |
Class A Ordinary | £1 | 1,000 | 1,000 |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 December 2022 |
Profit for the year |
At 30 November 2023 |
20. | RELATED PARTY DISCLOSURES |
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 £ |
The ultimate controlling party is |