REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
FARMSTAR LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
FARMSTAR LIMITED |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Income Statement | 11 |
Other Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Cash Flow Statement | 16 |
Notes to the Financial Statements | 17 |
FARMSTAR LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Chartered Accountants and Statutory Auditor |
13/15 Netherhall Road |
DONCASTER |
DN1 2PH |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report for the year ended 31 December 2023. |
We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the end of the period. Our review is consistent with the size and non - complex nature of our business and is written in the context of the risks and uncertainties we face. |
REVIEW OF BUSINESS |
The company is a well - established machinery dealership who are dedicated to providing an industry leading level of service to our primary sectors of agriculture, groundcare and local authorities. The company sell, hire, service and supply parts for all of the previously listed sectors. The parts department stocks a wide range of parts and accessories, and the service department provides the services of highly trained technicians. |
The head office of the business is located close to the A1 near Doncaster and together with depots at Brigg, Market Weighton and Newark serves Yorkshire, Nottingham and Lincolnshire areas. |
The board considers that our key financial indicators are those that communicate the financial performance and strength of the company, these being turnover, gross margin, profit before tax and cash generation:- |
PRINCIPAL RISKS AND UNCERTAINTIES |
INTEREST RATES |
The company's operations are exposed to rises in the interest rate as this will have a negative impact on our financial performance, this risk primarily arises from the company's borrowings to fund stock on hand due to the large asset values. The Management team minimise this risk by continually monitoring the stock levels to keep them as low as possible without impacting the level of service provided to customers. |
COMPETITOR RISK |
The company operates in a competitive market driven by price pressures and competitors attempting to buy market share, to mitigate the risk of this the company concentrates on providing industry leading customer services backed up by its well established franchises. |
COMMERCIAL RELATIONSHIPS |
The company has strong commercial relationships with a number of key suppliers, damage to or loss of these relationships could have a negative impact on results. Good management of these relationships minimises the risk. |
FOREIGN EXCHANGE AND TREASURY POLICY |
The company does not have significant turnover from overseas customers, exposure to exchange rate movements is minimised by selling to customers in GBP. |
CREDIT RISKS |
The Management team accept that the company is exposed to a small amount of credit risks however strong credit control procedures are in place and all steps are taken to minimise the risk. |
LIQUIDITY RISK |
The company does not have any material exposure to liquidity risk as a result of the bank overdraft, loan facility, stocking finance and hire purchase facilities available. |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
SECTION 172(1) STATEMENT |
The Directors confirm that they have acted in good faith in the way they consider what would be most likely to promote the success of the Company for the benefit of its members as a whole. In so doing they have considered, among other matters, those set out in section 172(1)(a) to (f) of the Companies ACt 2006: |
- The likely consequences of any decision in the long term; |
- The interests of the Company's employees; |
- The need to foster the Company's business relationships with suppliers, customers and others; the impact of the Company's operations on the community and environment, the desirability of the Company to maintain a reputation for high standards of business conduct; and |
- The need to act fairly as between members of the company. |
This statement applies equally to Directors individually and when acting collectively as the Board. |
In discharging their duties in relation to section 172(1), careful consideration is given to the matters set out above. |
The stakeholders we consider in this regard are primarily |
- Shareholders |
- Employees |
- Suppliers and Customers |
- The Environment |
- The Community |
How we engage and foster strong relationships with some of our stakeholders. |
Shareholders |
The Managing Director regularly engages with the shareholders and feedback significant matters raised. |
Employees |
Our people are key to everything we do. The long-term success of the Company is dependent on its ability to attract and maintain competent individuals. |
We continue to invest to make our environment a better place to work and aim to become an employer of choice. |
We keep employees up to date with information, including regulatory and safety procedures with a staff notice board at each depot. |
Health & Safety - It is company policy that all possible steps will be taken to ensure high standards of health, safety and welfare conditions of all persons on its premises. We engage a third party to continually assess this and provide us with feedback for improvements where required. |
Suppliers and Customers |
We continue to foster and develop our engagement with suppliers and customers throughout the business via; |
- Collaborations with our suppliers |
- Customer events on company premises and also at local and national agricultural shows. |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Environmental |
The company now has a focus on improving its environmental performance. It seeks to minimise business activities which may have an impact on the environment by disposing of waste for recycling. |
We are committed to; |
- Informing our employees on environmental issues |
- Improving the energy efficiency of our buildings |
- Minimisiing our annual waste production and waste to landfill |
- Selecting fuel efficient and low CO2 vehicles where possible |
- Encouraging energy conservation, recycling and re-use |
The Community |
We are committed to creating and maintaining long term opportunities in our communities. We seek to engage with the wider communities in which we operate by; |
- Social Media |
- County shows |
- Company website |
- Support for local charities and sporting associations |
How the Board considers stakeholders in decision making |
Strategy |
At every senior management meeting they review the progress of each part of the business. Board decisions are taken with reference to the long-term financial success of the company and its stakeholders. |
Training |
All staff are given the opportunity to be engaged in training to improve their skills for the benefit of themselves and the company. |
KEY MANAGEMENT PERSONNEL |
The company employs 89 people who are paramount to its success. The key management personnel are the directors and company secretary together with the senior management team. |
KEY PERFORMANCE INDICATORS |
2023 | 2022 |
£ | £ |
Turnover | 40,760 | 42,606 |
Gross Margin | 3,635 | 4,388 |
Profit/(Loss) before tax | (705 | ) | 526 |
Cash Generation | (111 | ) | 1,210 |
Close control of working capital is in place, with bank statements monitoring the level of cash at the bank and checked on a daily basis. |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
RESULTS AND PERFORMANCE |
Turnover for the year was held at 96% compared with 2022 in what has been a very challenging year in a competitive market. |
The company has faced major challenges in the year in regard to high inflation, continuing interest rate rises, supply chain issues that were present during the first 3 quarters of the year suddenly easing resulting in increased stock levels leading to a natural increase in interest payments, circumstances such as the cost of living crisis have led to increased operating costs and a loss before tax in the year. |
The company monitors fixed costs and controls them wherever possible. |
The company has repaid another year of its obligations under its loan facility and has renewed its Bank overdraft facilities with Virgin Money UK PLC at the same level as previous years. |
STRATEGY |
The company will continue to strive to to grow market share for its product franchises. All areas of the business will be continually reviewed to ensure that best working practices are implemented and in operation, this is in order to achieve high levels of customer satisfaction, increase profitability and ensure that the company can continue to reinvest in its long term future. The company will also look for areas of opportunity with regards to expansion and diversification. |
HEALTH AND SAFETY |
The company recognises the importance of Health and Safety in the workplace and therefore it is taken very seriously. The company continues to use an external health and safety consultant to provide guidance and ensure compliance with current legislation. |
ENVIRONMENTAL AND CLIMATE CHANGE |
The company has invested in hybrid vehicles and is looking to renew it's energy supply with a renewable energy supplier. The company uses a registered waste removal contractor to recycle its waste products in accordance with current legislation. The company recognises its role in operating sustainably and is doing everything it can to reduce the environmental impact from its day to day operations. |
CORE VALUES |
Customer Focus - We want everyone to put the needs of the customer at the heart of everything we do. They need to feel valued and supported at every step of their journey. We need to understand their needs fully with every transaction and contact point. |
Integrity - To be accountable for every action and decision we make. To have self-awareness and always ask "is this beneficial for both the customer and for Farmstar as a business" |
Unity - To stand united as a one team and as one company. To have company problems and opportunities, not departmental or individual ones. |
ON BEHALF OF THE BOARD: |
2 September 2024 |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company for the year ended 31 December 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2023 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STREAMLINED ENERGY AND CARBON REPORTING |
kWH | Tonnes CO2 |
Gas and fuel oil | 413,545 | 103 |
Transportation | 2,133,477 | 535 |
Electricity | 249,452 | 51 |
Total | 2,796,473 | 689 |
UK energy covers all activities across all depots of the company. |
Associated Greenhouse Gases have been calculated using UK Government CHG conversion factors. |
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. |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
AUDITORS |
The Auditors, Glover & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FARMSTAR LIMITED |
Opinion |
We have audited the financial statements of Farmstar Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other 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 31 December 2023 and of its loss 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 |
FARMSTAR LIMITED |
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 six, 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: |
We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions legislation and tax legislation. We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. In addition to the above, our procedures to respond to the risks identified included the following: " reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; " performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; " enquiring of management concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and " reading minutes of meetings where available of those charged with governance and reviewing internal audit reports. |
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 |
FARMSTAR LIMITED |
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 Auditor |
13/15 Netherhall Road |
DONCASTER |
DN1 2PH |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
3,764,320 | 3,605,141 |
(129,093 | ) | 783,130 |
Other operating income |
OPERATING (LOSS)/PROFIT | 5 | ( |
) |
Interest receivable and similar income |
(121,226 | ) | 790,406 |
Interest payable and similar expenses | 6 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME |
Property re-valuation in year |
Income tax relating to other comprehensive income |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Revaluation reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Share | Revaluation | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - | ( |
) |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 December 2023 |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
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 | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
HP new contracts and capital repayments | ( |
) | ( |
) |
Amount introduced by directors | - | 30,000 |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
(452,049 |
) |
(1,661,792 |
) |
Cash and cash equivalents at end of year | 2 | ( |
) | ( |
) |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 583,894 | 264,235 |
Finance income | (3,092 | ) | (1,010 | ) |
865,612 | 1,972,506 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
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 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 106,111 | 104,129 |
Bank overdrafts | ( |
) | ( |
) |
(563,114 | ) | (452,049 | ) |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 104,129 | 102,685 |
Bank overdrafts | ( |
) | ( |
) |
(452,049 | ) | (1,661,792 | ) |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 104,129 | 1,982 | 106,111 |
Bank overdrafts | (556,178 | ) | (113,047 | ) | (669,225 | ) |
(452,049 | ) | ( |
) | (563,114 | ) |
Debt |
Finance leases | (2,913,922 | ) | 90,238 | (2,823,684 | ) |
Debts falling due within 1 year | (227,935 | ) | (13,185 | ) | (241,120 | ) |
Debts falling due after 1 year | (908,973 | ) | 241,177 | (667,796 | ) |
(4,050,830 | ) | 318,230 | (3,732,600 | ) |
Total | (4,502,879 | ) | 207,165 | (4,295,714 | ) |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
Farmstar Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention as modified by the revaluation of land and buildings, and in accordance with applicable accounting standards. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, net of value added tax and trade discounts. The policies adopted for the recognition of turnover are as follows: |
Farm plant and machinery, spares, tools and accessories. |
Turnover from the sale of these items is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on the shipment, completion of the product or the product being ready for delivery, based on the terms with the customer. |
Repairs and servicing. |
Turnover from the above is recognised when the work is complete, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually when the work is complete. |
Warranties |
Turnover from warranties can be measured reliably and is recognised on the sale of the warranty. All warranties are provided by third parties with no obligation passing to the company. |
Hire of plant. |
Turnover from the above can be measured reliably and is recognised by spreading the income received or receivable over the term of the hire agreement. |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses were applicable. Cost includes costs directly attributable to making the asset capable of operatng as intended. |
Depreciation is provided on all tangible fixed assets, at rates calculate to right of the cost or valuation, less estimated residual value of each asset on a systematic basis over its expected useful life as follows: |
Land and building 2% on cost/valuation. |
Plant and machinery 25% on reducing balance or 25%/20%/15% on cost. |
Hire vehicles 15% on cost/reducing balance. |
Land and buildings were valued on an open market basis, as supported by professional independent valuation carried out on a periodic/timely basis. |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less cost to complete and sell. Costs include all costs of purchase, costs of conversion and other costs in bringing stock to its present location and condition. Costs of major plant and machinery for resale are recognised on an item by item basis as above. Cost of consumable parts stock is calculated using the average pricing formula. |
Financial instruments |
Loans and borrowings are recognised at the transaction price including transaction costs. |
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. |
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 |
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. |
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired under finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
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. |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Operating leases |
Rentals under operating leases are charged on a straight line basis over the lease term. |
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate. |
3. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
Europe |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Service and parts | 52 | 51 |
Sales and distribution | 20 | 16 |
Administration | 17 | 16 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases |
Operating lease income | ( |
) | ( |
) |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Other interest |
Interest on Corporation Tax |
Hire purchase |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Adjustment to prev year | - | 2 |
Total current tax |
Deferred tax | ( |
) | ( |
) |
Tax on (loss)/profit | ( |
) |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | TAXATION - continued |
Reconciliation of total tax (credit)/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: |
2023 | 2022 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Adjustments to tax charge in respect of previous periods |
Depreciation in excess of capital allowances | - | (7,439 | ) |
to 19% |
Disallowed expenditure | - | 4,441 |
Deferred tax | (481 | ) | (7,097 | ) |
Total tax (credit)/charge | (481 | ) | 89,879 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Property re-valuation in year | (275,531 | ) | 432,208 |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary Shares shares of £1 each |
Interim |
'A' Ordinary shares shares of £1 each |
Interim |
9. | OPERATING LEASE INCOME |
Minimum rentals due to be received under operating leases are as follows:- |
2023 | 2022 |
£ | £ |
Within one year | 769,515 | 778,836 |
Between two and five years | 1,294,779 | 716,682 |
Over five years | 0 | 0 |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS |
Land and | Plant and | Hire |
buildings | machinery | Vehicles | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Revaluations |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Land & Buildings costs contains the following components. |
2023 | 2022 |
£ | £ |
Improvement to leasehold property at cost | 329,556 | 318,603 |
Freehold property at valuation plus improvements | 900,000 | 548,124 |
Freehold property at valuation plus improvements | 850,000 | 413,804 |
2,079,556 | 1,280,531 |
Cost or valuation at 31 December 2023 is represented by: |
Land and | Plant and | Hire |
buildings | machinery | Vehicles | Totals |
£ | £ | £ | £ |
Valuation in 2011 | 155,540 | - | - | 155,540 |
Valuation in 2017 | 20,179 | - | - | 20,179 |
Valuation in 2023 | 707,739 | - | - | 707,739 |
Cost | 1,196,098 | 1,790,131 | 5,873,764 | 8,859,993 |
2,079,556 | 1,790,131 | 5,873,764 | 9,743,451 |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 886,983 | 886,983 |
Aggregate depreciation | 392,804 | 375,064 |
Value of land in freehold land and buildings | 230,262 | 230,262 |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
10. | TANGIBLE FIXED ASSETS - continued |
Freehold land & buildings at Market Weighton were valued on an open market basis on 09 October 2017 by Banks Long & Co (Chartered Surveyors). |
Freehold land & buildings at Newark were valued on an open market basis on 28 September 2017 by PPH Commercial (Chartered Surveyors). |
Further valuations were carried out in October 2023. The valuation for Market Weighton was £850,000 and was carried out by Garness Jones (Commercial) Ltd. For Newark it was £900,000 and this was carried out by Peter Tew Chartered Surveyors. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Hire |
machinery | Vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Transfer to ownership | (162,019 | ) | (1,495,134 | ) | (1,657,153 | ) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Transfer to ownership | (181,444 | ) | (934,962 | ) | (1,116,406 | ) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
11. | STOCKS |
2023 | 2022 |
£ | £ |
Parts for resale closing stock |
Wholegoods closing stock |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
Prepayments and accrued income |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Tax |
Social security and other taxes |
Other creditors |
Directors' loan accounts |
Accrued expenses |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 15) |
Hire purchase contracts (see note 16) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank overdrafts |
Bank loans |
Hire purchase contracts | 2,823,684 | 2,913,922 |
The bank borrowings are secured by a fixed charge on the company's freehold premises and a legal charge over certain chattels and debenture over the assets of the company. Borrowings under hire purchase and lease agreements are secured on the asset financed. |
18. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Movement |
Accelerated capital allowances | (481 | ) |
Potential on property sales | 275,531 |
Balance at 31 December 2023 |
DEFERRED TAXATION |
Deferred taxation is in respect of accelerated capital allowances and the potential CGT that would be payable on the sale of the Newark and Market Weighton properties |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary Shares | £1 | 155,372 | 155,372 |
'A' Ordinary shares | £1 | 300 | 300 |
155,672 | 155,672 |
Ordinary shares carry voting rights, the right to dividends and capital distribution on a winding up. |
'A' Ordinary shares carry no voting rights, the right to dividend and par value only on a winding up. |
20. | RESERVES |
Retained | Share | Revaluation |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 January 2023 | 4,264,619 |
Deficit for the year | ( |
) | ( |
) |
Dividends | ( |
) | ( |
) |
Revaluation in year | - | - | 707,739 | 707,739 |
Deferred tax | - | - | (275,531 | ) | (275,531 | ) |
At 31 December 2023 | 3,942,134 |
FARMSTAR LIMITED (REGISTERED NUMBER: 02262473) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
21. | RELATED PARTY DISCLOSURES |
The following transactions occurred with companies controlled by the directors: |
Moxon Farms Limited (controlled by the Moxon family): |
2023 | 2022 |
£ | £ |
Sales | 283,431 | 346,391 |
Purchases | 200,162 | 178,351 |
Interest charged to Farmstar Ltd | 0 | 0 |
Trade Debtors | 0 | 68941 |
Trade Creditors | 4,691 | 10,021 |
Other Creditors - Due within one year | 192,000 | 217,369 |
Other Creditors - Due after one year | 0 | 0 |
Rossington Produce Limited (controlled by C R Brown): |
2023 | 2022 |
£ | £ |
Sales | 0 | 301 |
Purchases | 49,800 | 36,200 |
Interest charged to Farmstar Ltd | 0 | 0 |
Trade Debtors | 0 | 0 |
Trade Creditors | 0 | 0 |
Other Creditors - Due within one year | 61,000 | 61,000 |
Other Creditors - Due after one year | 0 | 0 |
Farmstar Limited operates from premises at Marr, which are owned by Grove Farms Limited (controlled by C R Brown). Since September 2007 Grove Farms Limited has charged a market rent to Farmstar Limited, no amounts in respect of rent are outstanding at the year end. |
22. | ULTIMATE CONTROLLING PARTY |
The company is controlled by Mr C R Brown, Mrs D Moxon and Mr A T Waddington through virtue of their shareholdings but no one party has overall ultimate control. |