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REGISTERED NUMBER: 02226704 (England and Wales)















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: P A Willes
Mrs S J Berry
Mrs E L Beer



SECRETARY: P A Willes



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



REGISTERED NUMBER: 02226704 (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

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:





P A Willes - Secretary


28 August 2024

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.

P A Willes
Mrs S J Berry
Mrs E L Beer

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:



P A Willes - Secretary


28 August 2024

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.




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

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 55,362,962 55,578,944

Cost of sales 49,791,581 45,606,937
GROSS PROFIT 5,571,381 9,972,007

Distribution costs 380,352 389,274
Administrative expenses 4,108,593 3,489,862
4,488,945 3,879,136
1,082,436 6,092,871

Other operating income 4 197,559 182,462
OPERATING PROFIT 7 1,279,995 6,275,333

Interest receivable and similar income 8 53,605 27,584
1,333,600 6,302,917

Interest payable and similar expenses 9 58,025 11,311
PROFIT BEFORE TAXATION 1,275,575 6,291,606

Tax on profit 10 101,251 1,163,889
PROFIT FOR THE FINANCIAL YEAR 1,174,324 5,127,717

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,174,324

5,127,717

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

BALANCE SHEET
30 NOVEMBER 2023

30.11.23 30.11.22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 2,884,393 2,477,219

CURRENT ASSETS
Stocks 12 15,507,226 17,320,732
Debtors 13 3,574,373 6,960,279
Cash at bank and in hand 5,720,054 3,648,276
24,801,653 27,929,287
CREDITORS
Amounts falling due within one year 14 7,352,803 11,446,371
NET CURRENT ASSETS 17,448,850 16,482,916
TOTAL ASSETS LESS CURRENT
LIABILITIES

20,333,243

18,960,135

PROVISIONS FOR LIABILITIES 17 634,583 435,799
NET ASSETS 19,698,660 18,524,336

CAPITAL AND RESERVES
Called up share capital 18 100,001 100,001
Share premium 19 4 4
Fair value reserve 19 22,610 22,610
Retained earnings 19 19,576,045 18,401,721
SHAREHOLDERS' FUNDS 19,698,660 18,524,336

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 28 August 2024 and were signed on its behalf by:





P A Willes - Director


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 100,001 13,274,004 4 22,610 13,396,619

Changes in equity
Total comprehensive income - 5,127,717 - - 5,127,717
Balance at 30 November 2022 100,001 18,401,721 4 22,610 18,524,336

Changes in equity
Total comprehensive income - 1,174,324 - - 1,174,324
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 1,989,910 3,331,944
Interest paid (15,729 ) (34,647 )
Tax paid (998,285 ) (181,594 )
Net cash from operating activities 975,896 3,115,703

Cash flows from investing activities
Purchase of tangible fixed assets (1,873,463 ) (1,513,119 )
Sale of tangible fixed assets 14,000 6,412
Loans made in year - (1,145,818 )
Loan repayments in year 1,245,818 24,000
Interest received 36,755 16,407
Net cash from investing activities (576,890 ) (2,612,118 )

Cash flows from financing activities
New loans in year 1,754,228 -
Loan repayments in year - (2,356,146 )
Net cash from financing activities 1,754,228 (2,356,146 )

Increase/(decrease) in cash and cash equivalents 2,153,234 (1,852,561 )
Cash and cash equivalents at beginning of
year

2

3,512,343

5,364,904

Cash and cash equivalents at end of year 2 5,665,577 3,512,343

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 1,275,575 6,291,606
Depreciation charges 1,266,380 1,058,982
Profit on disposal of fixed assets (12,451 ) (3,376 )
Finance costs 58,025 11,311
Finance income (53,605 ) (27,584 )
2,533,924 7,330,939
Decrease/(increase) in stocks 1,813,506 (4,972,786 )
Decrease/(increase) in trade and other debtors 2,401,971 (3,164,572 )
(Decrease)/increase in trade and other creditors (4,759,491 ) 4,138,363
Cash generated from operations 1,989,910 3,331,944

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 (54,477 ) (135,933 )
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 (135,933 ) (11,224 )
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 2,153,234 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 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.

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.

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 Improvements5% Straight Line
Plant and Machinery owned and acquired on hire purchase33% Reducing Balance
Leased Equipment10% 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
£    £   
Sale of goods 55,358,124 55,559,969
Grants and subsidies 4,838 18,975
55,362,962 55,578,944

4. OTHER OPERATING INCOME
30.11.23 30.11.22
£    £   
Rents Received 99,660 52,026
Contracting and Work Done 95,576 93,128
Wayleaves 488 485
Government grants 835 27,363
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 868,713 798,508
Social security costs 265,629 275,267
Other pension costs 187,328 47,617
1,321,670 1,121,392

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
41 37

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 1,548 1,240
Depreciation - owned assets 1,266,380 1,058,982
Profit on disposal of fixed assets (12,451 ) (3,376 )
Auditors' remuneration 6,015 5,815
Foreign exchange differences (1,000 ) (9,460 )
Hire of plant and machinery 59,205 47,869
Accountancy and tax services provided by Auditors Firm 40,924 37,252
Professional services provided by Auditors Firm 22,008 -

8. INTEREST RECEIVABLE AND SIMILAR INCOME
30.11.23 30.11.22
£    £   
Interest received gross 53,605 27,584

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 15,729 11,311
Loan Interest 42,296 -
58,025 11,311

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 (97,533 ) 998,292

Deferred tax 198,784 165,597
Tax on profit 101,251 1,163,889

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 1,275,575 6,291,606
Profit multiplied by the standard rate of corporation tax in the UK of
23.010% (2022 - 19%)

293,510

1,195,405

Effects of:
Expenses not deductible for tax purposes 300 177
Income not taxable for tax purposes (30,400 ) -
Capital allowances in excess of depreciation (115,910 ) (226,026 )
Adjustments to tax charge in respect of previous periods (245,033 ) -
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 255,556 522,226 9,453,805 10,231,587
Additions - - 1,675,103 1,675,103
Disposals - - (57,000 ) (57,000 )
At 30 November 2023 255,556 522,226 11,071,908 11,849,690
DEPRECIATION
At 1 December 2022 - 421,218 7,333,150 7,754,368
Charge for year - 14,199 1,252,181 1,266,380
Eliminated on disposal - - (55,451 ) (55,451 )
At 30 November 2023 - 435,417 8,529,880 8,965,297
NET BOOK VALUE
At 30 November 2023 255,556 86,809 2,542,028 2,884,393
At 30 November 2022 255,556 101,008 2,120,655 2,477,219

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 15,133,008 16,887,471
Raw Materials and Sundry Stock 374,218 433,261
15,507,226 17,320,732

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 3,097,173 5,403,801
Other debtors 142,838 245,717
Other loans - 100,000
Willes Farming Ltd Loan - 1,145,818
Tax 245,033 -
Prepayments and accrued income 89,329 64,943
3,574,373 6,960,279

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.11.23 30.11.22
£    £   
Bank loans and overdrafts (see note 15) 54,477 135,933
Other loans (see note 15) 1,754,228 -
Trade creditors 5,134,729 9,878,580
Tax 147,500 998,285
Social security and other taxes 11,820 12,197
Other creditors 80,073 317,441
Amounts owed to Willes
Farming Limited 2,685 13,258
Amounts owed to Beckland Dairy 57,704 56,143
Accrued expenses 109,587 34,534
7,352,803 11,446,371

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 54,477 135,933
Willes Farming Ltd Loan 1,754,228 -
1,808,705 135,933

16. SECURED DEBTS

The following secured debts are included within creditors:

30.11.23 30.11.22
£    £   
Bank overdrafts 54,477 135,933

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 435,799
Provided during year 198,784
Balance at 30 November 2023 634,583

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.11.23 30.11.22
value: £    £   
100,001 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 18,401,721 4 22,610 18,424,335
Profit for the year 1,174,324 - - 1,174,324
At 30 November 2023 19,576,045 4 22,610 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.

Other related parties
30.11.23 30.11.22
£    £   
Sales 109,913 109,273
Purchases (16,279,882 ) (19,395,543 )
Interest (3,139 ) 22,701
Amount due to related party (3,930,474 ) (4,162,980 )

22. ULTIMATE CONTROLLING PARTY

The controlling party is P A Willes.