REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
ROADHEAD FARM FEEDS LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
ROADHEAD FARM FEEDS LTD |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 MARCH 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
ROADHEAD FARM FEEDS LTD |
COMPANY INFORMATION |
for the Year Ended 31 MARCH 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
6 East Bridge Street |
Enniskillen |
Co. Fermanagh |
BT74 7BT |
BANKERS: |
2 Wellgate |
Lanark |
ML11 9DT |
SOLICITORS: |
18 Wallace Street |
Galston |
Ayrshire |
KA4 8HP |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
STRATEGIC REPORT |
for the Year Ended 31 MARCH 2024 |
The directors present their strategic report for the year ended 31 March 2024. |
PRINCIPAL ACTIVITIES |
The principal activities of the company in the year under review was that of the production and sale of animal feeds and general farm supplies. |
REVIEW OF BUSINESS |
The directors consider the results for the year and the position of the company at the year end to be satisfactory given the conditions within the agricultural sector at present and in particular the volatility in the price of raw materials. |
The profit before taxation for the year is £1,059,352 (2023 £1,428,294). This was achieved on a turnover of £17,596,571 (2023 £19,843,565). Net assets have increased to £6,712,399 (2023 £5,975,092). The directors are pleased with the financial position of the company at the year end. |
The company's prospects for 2024/2025 remains solid and the directors view the outlook for the company with confidence. The company continued to invest in plant and machinery during the year and this will continue to ensure ongoing business growth and improved effectiveness. A new mill extension was constructed to meet increased productivity requirement and was operational at the year end. |
The company's key performance indicators are as follows : |
2024 | 2023 |
£ | £ |
Turnover | 17,597 | 19,844 |
Gross Profit Margin | 16.1% | 17.9% |
Net Profit Margin | 6.0% | 7.2% |
Shareholders' Equity | 6,712 | 5,975 |
SECTION 172(1) STATEMENT |
The directors recognise their responsibility under Section 172(1) of the Companies Act 2006 to promote the success of the company for the benefit of the members as a whole and in doing so have regard to: |
a. The likely consequence of any decisions in the long term; |
b. The interest of the Company's employees; |
c. The need to foster the Company's business relationships with suppliers, customers and others; |
d. The impact of the Company's operations on the community and the environment; |
e. The desirability of the Company maintaining a reputation for high standards of business conduct; |
f. The need to act fairly between members of the Company. |
The key points relating to these factors are considered below in the decision making process. |
(a) The likely consequence of any decision in the long term |
The directors are focused on a strategic plan which promotes the long-term viability of the company. This |
strategy considers the various risks facing the business and concentrates on the long term sustainability of the |
company. |
(b) The interest of the Company's Employees |
The company regards that a skilled and experienced workforce is one of its most important resources. The |
health, safety and wellbeing of the company's employees remains a priority. The company is committed to |
achieving the highest possible standards in health and safety management and strives to make all |
sites and offices safe environments for employees and customers alike. Retention of key staff is critical |
and there is relatively low turnover of personnel. Their knowledge and experience are vital in the company's |
ability to serve customer requirements and to meet contractual obligations. |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
STRATEGIC REPORT |
for the Year Ended 31 MARCH 2024 |
(c) The need to foster the Company's business relationship with suppliers, customers and others |
The directors regularly review how the company maintains positive relationships with all of its stakeholders including suppliers, customers and others. Our continued successes have been founded on building strong |
relationships with customers, working collaboratively with them, anticipating issues they face, providing |
problem-solving solutions and using our expert capabilities to deliver satisfactory solutions. The company has an |
extensive and valued supply chain who supply our business with the highest quality of product. Suppliers are |
treated in a fair and consistent manner which includes prompt payment. |
(d) The impact of the Company's operations on the community and the environment |
The company recognises its corporate responsibility to carry out its operations whilst minimising environmental |
impacts. The directors continually aim to comply with all applicable environmental legislation, prevent pollution |
and reduce waste where possible. The aim of the company is to continue to reduce its carbon footprint and help make a contributions to the government's carbon reduction targets. |
(e) The desirability of the Company maintaining a reputation for high standards of business conduct |
The directors continue to take the responsibility of ensuring the company remains a good corporate citizen |
seriously and consider that maintaining its strong reputation for the highest standards of business conduct to be |
an important priority. Operating in well invested factories and having skilled employees are key to maintaining |
the highest standards of product development. |
(f) The need to act fairly between members of the Company |
The company is a family owned business with a goal to ensure the continued success of the company. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Strong and effective risk management is a central strategy in the manner which the directors run the business. |
The conditions within the agricultural sector remain challenging at present particularly with increasing prices during the course of the year. |
In the directors opinion the risks and uncertainties facing the company are adequately addressed and managed. |
FINANCIAL RISK MANAGEMENT |
The company's operations expose it to a variety of financial risks that include the effects of credit risk, liquidity risk and price risk. Given the size of the company the financial risk management is not delegated and is controlled by the directors and the main risks associated with the financial assets and liabilities are set out below. |
Credit risk |
The company has implemented policies that require appropriate credit checks on potential customers before sales are made, and the majority of sales continue to be made to long standing customers The company reassesses credit risk on an ongoing basis to ensure that the company's exposure to bad debts is mitigated. |
Liquidity risk |
The company has adequate cash resources and is managed by the company's directors on a daily basis. Liquidity risk is adequately addressed and managed sufficiently. |
Price risk |
The company is exposed to commodity price risk as a result of its operations due to movements and the volatility of commodity prices. Management have a policy of forward buying a proportion of key ingredients with a view to controlling the company's exposure to commodity price volatility. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature. |
The company remains committed to strong financial controls, cash management and prudent accounting policies. |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
STRATEGIC REPORT |
for the Year Ended 31 MARCH 2024 |
HEALTH AND SAFETY |
The directors continue to focus on the health and safety and the wellbeing of employees ensuring Health and Safety is at the core of everything undertaken by the company. Failure to manage risks in this area could cause serious harm to employees, subcontractors or other stakeholders. The directors remain fully committed to managing and mitigating risk to ensure a safe working environment and this is reflected throughout the culture of the Company. The directors maintain an increasing emphasis on wellbeing and have continued to promote the wider health of employees. This has included supporting mental health initiatives and encouraging a healthier lifestyle. |
PEOPLE |
The directors recognise that future performance could be impacted through a lack of skilled resources and note that the continued success of the business has been achieved by the people working in it. There are many long serving members of staff, and a relatively low turnover of personnel reflects the general policy of providing good terms and conditions of employment while dealing with staff as well as other stakeholders in the business, in a fair and consistent manner. Employees continued loyalty and hard work are much appreciated. The directors seek to continue their focus on recruitment, training and retention of a highly skilled and professional workforce. |
ENVIRONMENTAL SUSTAINABILITY |
The directors are mindful that we all live in a world of finite resources and where many operate there is a risk of doing damage to the environment. They are focused on sustainability and seek to exceed all environmental responsibilities. They continue to develop renewable initiatives utilizing energy saving procedures during the construction phases and beyond. The directors approach to the environment ensures that the companies construction operations have a minimal impact and where possible enhances the long-term environmental conditions for all stakeholders. |
GOING CONCERN |
The company's activities, together with factors likely to affect its future development, performance and position are continuously reviewed by the directors. Review of cash flow and liquidity position leads the directors to believe that the company is well place to manage its business risks successfully despite any current economic uncertainties. |
The company meets its day to day working capital requirements through its current cash levels. The directors are confident that the company has adequate resources to meet its normal business requirements for the foreseeable future, a period of at least 12 months from the date of signing the financial statements and therefore have continued to adopt the going concern basis when preparing the financial statements. |
POST BALANCE SHEET EVENTS |
There has been no significant events affecting the company since the year end. |
ON BEHALF OF THE BOARD: |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 MARCH 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
DIVIDENDS |
The total dividends paid for the year ended 31 March 2024 will be £2,000 (2023 £4,000) |
RESEARCH AND DEVELOPMENT |
The company continues to invest in research and development to improve the efficiency and production in the company. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors during the year under review were: |
The beneficial interests of the directors holding office on 31 March 2024 in the issued share capital of the company were as follows: |
31.3.24 | 1.4.23 |
Ordinary Shares £1 shares |
2 | 2 |
2 | 2 |
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 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. |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 MARCH 2024 |
AUDITORS |
The auditors, Patton Rainey Stenson Limited, have indicated their willingness to continue in office and a resolution will be proposed for re-appointment at the forthcoming Annual General Meeting. |
This report was approved by the Board of Directors on 14 June 2024. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ROADHEAD FARM FEEDS LTD |
Opinion |
We have audited the financial statements of Roadhead Farm Feeds Ltd (the 'company') for the year ended 31 March 2024 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 March 2024 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 |
ROADHEAD FARM FEEDS 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 five, 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: |
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to these risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
We obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are appropriate in the circumstances. |
We obtain an understanding of the company, the industry it operates in and the legal and regulatory framework that the company operates within. We focus on the provisions of these laws and regulations that have a direct effect on material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Pension, Tax and Health and Safety Legislation, together with provisions of other laws and regulations that do not have a direct effect on the financial statements, but compliance with which may be fundamental to the company's ability to operate or avoid a material penalty. |
We tailored our response to these identified risks to include enquiry of management and external legal advisors concerning actual and potential litigation and claims, performing analytical procedures to identify any unusual or unexpected relationships that may indicate the risk of material misstatement due to fraud or other irregularities. Further we reviewed the correspondence with HMRC and other regulatory bodies. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ROADHEAD FARM FEEDS LTD |
In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias. Further we evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
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. |
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 |
6 East Bridge Street |
Enniskillen |
Co. Fermanagh |
BT74 7BT |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
INCOME STATEMENT |
for the Year Ended 31 MARCH 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,071,552 | 1,420,884 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
1,081,920 | 1,447,899 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 MARCH 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
BALANCE SHEET |
31 MARCH 2024 |
31.3.24 | 31.3.23 |
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 | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 MARCH 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
CASH FLOW STATEMENT |
for the Year Ended 31 MARCH 2024 |
31.3.24 | 31.3.23 |
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 | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | (2,000 | ) | - |
Amount withdrawn by directors | 3,457 | 3,583 |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
411,450 |
Cash and cash equivalents at end of year | 2 | 412,852 | 963,754 |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
NOTES TO THE CASH FLOW STATEMENT |
for the Year Ended 31 MARCH 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.3.24 | 31.3.23 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 23,492 | 19,605 |
Finance income | (10,368 | ) | (1,015 | ) |
1,511,197 | 1,665,824 |
Decrease/(increase) in stocks | ( |
) |
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 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 412,852 | 963,754 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 963,754 | 452,708 |
Bank overdrafts | ( |
) |
963,754 | 411,450 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 963,754 | (550,902 | ) | 412,852 |
963,754 | ( |
) | 412,852 |
Debt |
Finance leases | (276,242 | ) | 156,848 | (119,394 | ) |
Debts falling due within 1 year | (31,735 | ) | 10,021 | (21,714 | ) |
(307,977 | ) | 166,869 | (141,108 | ) |
Total | 655,777 | (384,033 | ) | 271,744 |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
Roadhead Farm Feeds Ltd is a |
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. |
Going Concern |
The company's activities, together with factors likely to affect its future development, performance and position are continuously reviewed by the directors. Review of cash flow, liquidity position and borrowing facilities leads the directors to to believe that the company is well placed to manage its business risks successfully despite any current economic uncertainties. |
The company meets its day to day working capital requirements through its current cash levels. The directors are confident that the company has adequate resources to meet its normal business requirements for the foreseeable future and therefore they continue to adopt the going concern basis when preparing the financial statements. |
Revenue recognition |
Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied or services rendered, net of returns, discounts and rebates allowed by the company and value added taxes. |
Sale of goods |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer, usually on dispatch of the goods, the amounts of revenue can be measured reliably, it is probable that future economic benefits will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Tangible fixed assets |
Tangible assets are stated at cost (or deemed cost) less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use, dismantling and restoration costs. |
(i) Depreciation and residual values |
Depreciation is calculated, using the stated method, to allocate the depreciable amount to their residual values over the expected useful economic lives of the assets concerned. The principal annual rates used are as follows: |
Freehold Property - 4% Straight line |
Plant and machinery -15% on reducing balance |
Fixtures and fittings - 15% on reducing balance |
Motor vehicles - 25% on reducing balance |
The assets' residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
(ii) Subsequent additions and major components |
Subsequent costs, including major inspections , are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the group and the cost can be measured reliably. |
The carrying amount of any replaced component is derecognised. Major components are treated as a separate asset where they have significantly different patterns of consumption of economic benefits and are depreciated separately over its useful life. |
Repairs, maintenance and minor inspection costs are expensed as incurred. |
(iii) Derecognition |
Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the income statement and included in cost of sales. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost means purchase price including all costs in bringing the goods to their present condition and location. |
Net realisable value is based on estimated selling price less any further costs expected to be incurred in the sale and distribution. |
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 taxation |
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. |
Research and development |
Expenditure on research and development is written off to the income statement in the year which it is incurred. |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
Financial instruments |
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other receivables and cash and bank balances and are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and, amounts payable to group undertakings, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
(iii) Offsetting |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Holiday pay accrual |
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to further periods. This is measured at the discounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date. |
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. |
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in independently administered funds. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the directors. |
Provisions for liabilities |
Provisions are recognised when the company has a present legal or constructive obligation as result of past events; it is probable that an outflow of resources will be required to settle the obligation: and the amount of the obligation can be estimated reliably. |
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. |
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost. |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2024 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. The following are significant management judgements in applying the accounting policies of the company that have the most significant effect on the financial statements. |
Allowance for impairment of trade debtors |
The company estimated the allowance for doubtful trade debtors based on assessment of specific balances where the company has objective evidence comprising default in payment terms or significant financial difficulty that certain customers are unable to meet their financial obligations. In these cases, judgment used was based on the best available facts and circumstances included but not limited to, the length of the relationship. |
Useful lives of depreciable assets |
The annual depreciation charge depends primarily on the estimated lives of each type of asset, in certain circumstances, estimated of fair values and residual values. The directors annually review these asset lives and adjust them as necessary to reflect current thinking on remaining lives in light of technological change, prospective economic utilisation and physical condition for the period. It is not practical to quantify the impact of changes in asset lives on an overall basis, as asset lives are individually determined, and there are a significant number of asset lives in use. The impact of any change would vary significantly depending on individual changes in assets and the classes of asset impacted. |
4. | TURNOVER |
The turnover relates to the company's principal activities which are carried on in the United Kingdom. |
5. | EMPLOYEES AND DIRECTORS |
31.3.24 | 31.3.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.3.24 | 31.3.23 |
Management | 3 | 3 |
Administration and sales | 4 | 4 |
Production and distribution | 8 | 8 |
31.3.24 | 31.3.23 |
£ | £ |
Directors' remuneration |
Key Management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the company. All key management are directors and their remuneration for the year has been disclosed above. |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2024 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.3.24 | 31.3.23 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Foreign exchange differences | ( |
) |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.24 | 31.3.23 |
£ | £ |
Bank interest and charges |
Bank loan interest |
Hire purchase |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.3.24 | 31.3.23 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2024 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
31.3.24 | 31.3.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) | ( |
) |
Deferred tax | 218,131 | 148,845 |
Enhanced deduction | (35,475 | ) | (34,087 | ) |
Total tax charge | 319,814 | 149,037 |
9. | DIVIDENDS |
31.3.24 | 31.3.23 |
£ | £ |
Ordinary Shares shares of £1 each |
Final |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 April 2023 |
Transfer to ownership | (83,500 | ) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Transfer to ownership | (32,220 | ) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
11. | STOCKS |
31.3.24 | 31.3.23 |
£ | £ |
Raw materials and goods for resale |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Trade debtors |
Amount due by related party (Note 25) |
VAT |
Prepayments |
Amounts owed by related undertakings are unsecured, interest free, have no fixed date of repayment, are repayable on demand and are stated at recoverable value. |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Corporation tax |
Social security and other taxes |
Directors' current accounts | 36,274 | 34,817 |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Hire purchase contracts (see note 16) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
31.3.24 | 31.3.23 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
16. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
31.3.24 | 31.3.23 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2024 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.3.24 | 31.3.23 |
£ | £ |
Hire purchase contracts | 119,394 | 276,242 |
The bank hold a fixed and floating charge over certain assets of the company as well as a personal guarantee by the directors. |
The obligations under hire purchase contracts are secured by the assets to which they relate. |
18. | FINANCIAL INSTRUMENTS |
Financial assets that are debt instruments measured at amortised cost comprise trade debtors, other debtors, cash and cash equivalents. |
Financial liabilities measured at amortised cost comprise trade creditors , accruals, bank overdraft and bank loans. |
19. | PROVISIONS FOR LIABILITIES |
31.3.24 | 31.3.23 |
£ | £ |
Deferred tax | 590,917 | 372,786 |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Provided during year |
Balance at 31 March 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.24 | 31.3.23 |
value: | £ | £ |
Ordinary Shares | £1 | 4 | 4 |
21. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2023 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2024 |
ROADHEAD FARM FEEDS LTD (REGISTERED NUMBER: NI050206) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 MARCH 2024 |
22. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme for the benefit for the benefit of the staff. The assets of the scheme are held separately from those of the company in independently administered funds. The total pension cost for the company for the year was £9,211 (2023 £9,751). There was a liability outstanding at the year end of £1,875 (2023 £1,576) |
23. | CONTINGENT LIABILITIES |
The company had no contingent liabilities existing at the balance sheet date (2023 - £Nil). |
24. | CAPITAL COMMITMENTS |
At 31 March 2024 the company had capital commitments of £550,000 (2023 £1,186,990) which have not been provided for within the accounts. |
25. | RELATED PARTY DISCLOSURES |
Included in creditors at the year end are amounts owing to the directors of £38,274 (2023 £34,817). |
J A Hewitt and Sons and J A Hewitt Limited are identified as being related to Roadhead Farm Feeds Ltd by way of common control. |
2024 | 2023 |
Sales to J A Hewitt and Sons | Nil | 2,647,630 |
Purchases from J A Hewitt and Sons | Nil | 283,450 |
Amounts due to J A Hewitt and Sons | 5,426 | 1,638,328 |
Sales to J A Hewitt Limited | Nil | Nil |
Purchases from J A Hewitt Limited | 1,971,139 | Nil |
Amounts due from J A Hewitt Limited | 2,055,808 | Nil |
Rent paid to directors | 32,556 | 32,556 |
26. | POST BALANCE SHEET EVENTS |
There has been no significant events affecting the company since the year end. |
27. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |