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REGISTRAR OF COMPANIES

Registration number: 09366636

Major Farming Limited

Unaudited Financial Statements

31 December 2023

image-name

 

Major Farming Limited

Contents

Accountants' Report

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

4

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Major Farming Limited
for the Year Ended 31 December 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Major Farming Limited for the year ended 31 December 2023 as set out on pages 2 to 13 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Major Farming Limited, as a body, in accordance with the terms of our engagement letter dated 14 February 2024. Our work has been undertaken solely to prepare for your approval the accounts of Major Farming Limited and state those matters that we have agreed to state to the Board of Directors of Major Farming Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Major Farming Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Major Farming Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Major Farming Limited. You consider that Major Farming Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Major Farming Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.



Dodd & Co Limited
Chartered Accountants
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

26 July 2024

 

Major Farming Limited

(Registration number: 09366636)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

4

43,377

48,984

Tangible assets

5

638,246

670,644

Other financial assets

6

47,655

36,483

 

729,278

756,111

Current assets

 

Stocks

519,499

819,185

Debtors

7

277,838

206,991

Cash at bank and in hand

 

126,655

126,173

 

923,992

1,152,349

Creditors: Amounts falling due within one year

8

(313,383)

(554,482)

Net current assets

 

610,609

597,867

Total assets less current liabilities

 

1,339,887

1,353,978

Creditors: Amounts falling due after more than one year

8

(120,930)

(167,560)

Provisions for liabilities

(131,850)

(139,772)

Net assets

 

1,087,107

1,046,646

Capital and reserves

 

Allotted, called up and fully paid share capital

100

100

Capital redemption reserve

70,000

-

Profit and loss account

1,017,007

1,046,546

Total equity

 

1,087,107

1,046,646

 

Major Farming Limited

(Registration number: 09366636)
Balance Sheet as at 31 December 2023 (continued)

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 26 July 2024 and signed on its behalf by:
 

.........................................

J A E Major

Director

.........................................

C R Major

Director

 

Major Farming Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Castle Hayes Park
Tutbury
BURTON ON TRENT
DE13 9HL

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Government grants

Government grants such as the basic payment scheme are included in the profit and loss account when all the necessary conditions for receipt have been met.

Grants relating to revenue are recognised in the profit and loss account on a systematic basis over the periods in which the related costs are recognised for which the grant is intended to compensate.

Grants for the purpose of giving immediate financial support with no future related costs to be incurred are recognised in the profit and loss account when the grant proceeds become receivable.


Other grants
Other grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets on a basis consistent with the depreciation policy.

 

Major Farming Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

Basic payment scheme

The amount paid in connection with the purchase of the basic payment scheme entitlement was amortised over the useful economic life of that entitlement, and has now been fully amortised.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

5% reducing balance and 4% straight line

Plant and equipment

10%, 15%, 20% or 25% reducing balance

Motor vehicles

25% reducing balance

Included in land and buildings is short leasehold property which relates to tenants improvements on land leased by the James A E Major partnership. As the long term intention is for the business operation to continue it is deemed a true and fair view to depreciate the assets at 5% reducing balance over their useful economic life. In addition to this, the farmhouse repairs are being depreciated at 4% straight line.

Other intangible fixed assets

Other intangible assets represent an investment in AMCo Common Consolidation which is a contractual requirement in order to benefit from the AMCo milk purchasing agreement. This investment is non refundable and is therefore being amortised over its useful life to the business. As there is no fixed period for the contract the directors have considered it appropriate to adopt an amortisation period of 5 years for the asset on a straight line basis. In addition an annual impairment review is performed.

 

Major Farming Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for the sale of goods or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Trading stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. The cost of livestock represents the purchase cost plus any additional costs of rearing the animal. Net realisable value is based on selling price less anticipated selling costs. Crop stock is valued at fair value less any anticipated costs to sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method where due after more than one year.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Preference shares are classified as debt when the shares are redeemable in the future at the option of the holder.

 

Major Farming Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Equity shares and debt securities
 Recognition and measurement
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

 Impairment
For instruments measured at cost less impairment the impairment is the difference between the assets' carrying amount and the best estimate the entity would receive for the asset if it were sold at the reporting date.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 18 (2022 - 17).

 

Major Farming Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

4

Intangible assets

Basic payment scheme
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 January 2023

55,000

95,947

150,947

Additions

-

16,299

16,299

At 31 December 2023

55,000

112,246

167,246

Amortisation

At 1 January 2023

55,000

46,963

101,963

Amortisation charge

-

21,906

21,906

At 31 December 2023

55,000

68,869

123,869

Carrying amount

At 31 December 2023

-

43,377

43,377

At 31 December 2022

-

48,984

48,984

 

Major Farming Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

5

Tangible assets

Land and buildings
£

Plant and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

88,006

1,057,118

19,219

1,164,343

Additions

-

91,537

11,989

103,526

Disposals

-

-

(11,989)

(11,989)

At 31 December 2023

88,006

1,148,655

19,219

1,255,880

Depreciation

At 1 January 2023

24,607

460,446

8,646

493,699

Charge for the year

2,998

118,294

2,643

123,935

At 31 December 2023

27,605

578,740

11,289

617,634

Carrying amount

At 31 December 2023

60,401

569,915

7,930

638,246

At 31 December 2022

63,399

596,672

10,573

670,644

 

Major Farming Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

6

Other financial assets (current and non-current)

2023
£

2022
£

Non-current financial assets

Financial assets at cost less impairment

47,655

36,483

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 January 2023

36,483

36,483

Additions

11,172

11,172

At 31 December 2023

47,655

47,655

Carrying amount

At 31 December 2023

47,655

47,655

At 31 December 2022

36,483

36,483

7

Debtors

2023
£

2022
£

Trade debtors

128,227

42,054

Other debtors

149,611

164,937

277,838

206,991

 

Major Farming Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

8

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

10

230,702

394,970

Trade creditors

 

14,875

46,165

Taxation and social security

 

18,343

4,805

Corporation tax liability

 

15,761

77,022

Other creditors

 

33,702

31,520

 

313,383

554,482

Due after one year

 

Loans and borrowings

10

114,298

165,628

Other creditors

 

6,632

1,932

 

120,930

167,560

2023
£

2022
£

After more than five years by instalments

29,835

41,384

29,835

41,384

9

Reserves

10

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

37,515

37,515

Finance lease liabilities

16,333

16,333

Redeemable preference shares

70,000

140,000

Other borrowings

106,854

201,122

230,702

394,970

 

Major Farming Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

Current loans and borrowings includes the following liabilities, on which security has been given by the company:

2023
£

2022
£

Bank borrowings

37,515

37,515

Finance lease liabilities

16,333

16,333

53,848

53,848

Bank borrowings are secured by fixed and floating charges over the company's assets.

Finance lease liabilities are secured on the assets to which they relate.
 

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

114,298

149,295

Finance lease liabilities

-

16,333

114,298

165,628

Non-current loans and borrowings includes the following liabilities, on which security has been given by the company:

2023
£

2022
£

Bank borrowings

114,298

149,295

Finance lease liabilities

-

16,333

114,298

165,628

Bank borrowings are secured by fixed and floating charges over the company's assets.

Finance lease liabilities are secured on the assets to which they relate.
 

 

Major Farming Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023 (continued)

11

Related party transactions

Transactions with directors

2023

At 1 January 2023
£

Advances
£

Repayments
£

Other payments
£

Dividends credited
£

Interest
£

At 31 December 2023
£

J A E Major

Loan

30,137

65,347

(54,090)

-

(1,082)

863

41,175

               
         

R Major

Loan

1,947

62,455

(54,090)

-

(1,081)

180

9,411

               
         

 

2022

At 1 January 2022
£

Advances
£

Repayments
£

Other payments
£

Dividends credited
£

Interest
£

At 31 December 2022
£

J A E Major

Loan

68,852

53,002

(49,177)

-

(43,547)

1,007

30,137

               
         

R Major

Loan

40,528

53,839

(49,177)

-

(43,547)

304

1,947

               
         

 

Directors' advances are repayable on demand.

Interest has been charged at a rate of 2% and 2¼% on advances to directors