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REGISTRAR OF COMPANIES

Registration number: SC632764

MWB Farms Limited

Unaudited Financial Statements

31 March 2024

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MWB Farms Limited

Contents

Accountants' Report

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

4

 

Chartered Accountants' Report to the Director on the Preparation of the Unaudited Statutory Accounts of
MWB Farms Limited
for the Year Ended 31 March 2024

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of MWB Farms Limited for the year ended 31 March 2024 as set out on pages 2 to 12 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 MWB Farms Limited, as a body, in accordance with the terms of our engagement letter dated 29 May 2024. Our work has been undertaken solely to prepare for your approval the accounts of MWB Farms Limited and state those matters that we have agreed to state to the Board of Directors of MWB Farms 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 MWB Farms Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that MWB Farms 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 MWB Farms Limited. You consider that MWB Farms 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 MWB Farms 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

14 August 2024

 

MWB Farms Limited

(Registration number: SC632764)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

4

-

250

Tangible assets

5

3,468,682

3,410,292

Other financial assets

6

117,661

109,949

 

3,586,343

3,520,491

Current assets

 

Stocks

767,970

733,240

Debtors

7

105,345

75,570

Cash at bank and in hand

 

52,200

38,856

 

925,515

847,666

Creditors: Amounts falling due within one year

8

(1,021,653)

(1,006,174)

Net current liabilities

 

(96,138)

(158,508)

Total assets less current liabilities

 

3,490,205

3,361,983

Creditors: Amounts falling due after more than one year

8

(1,185,895)

(1,236,212)

Provisions for liabilities

(186,104)

(166,175)

Net assets

 

2,118,206

1,959,596

Capital and reserves

 

Allotted, called up and fully paid share capital

2

2

Revaluation reserve

413,348

413,348

Profit and loss account

1,704,856

1,546,246

Total equity

 

2,118,206

1,959,596

 

MWB Farms Limited

(Registration number: SC632764)
Balance Sheet as at 31 March 2024 (continued)

For the financial year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's 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 director acknowledges his 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 director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 14 August 2024
 

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

M W Beggs

Director

 

MWB Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

1

General information

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
Newmains Farm
Kirkbean
DUMFRIES
DG2 8AD

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.

The company has net current liabilities at 31 March 2024 and meets its day to day working capital requirements through its bank borrowings. In addition the director has provided financial support by way of short term loans. On the basis of this support, the director considers it appropriate to prepare the financial statements on the going concern basis.

However, should the company not have the support of its bankers, and therefore be unable to continue trading, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for any further liabilities which might arise, and to reclassify fixed assets and long term liabilities as current assets and current liabilities.

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.

 

MWB Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024 (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 revaluation, 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

10% reducing balance

Plant and machinery

10% reducing balance

Motor vehicles

25% reducing balance

Office equipment

3 year straight line

Land and buildings relate to tenants improvements on land leased by the company from the shareholders. As the long term intention is for the farming operation to continue, it is deemed a true and fair view to depreciate the assets at 10% reducing balance over their useful economic life, and not the duration of the lease.

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.

 

MWB Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024 (continued)

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.

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.

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.

 

MWB Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024 (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.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 3 (2023 - 2).

 

MWB Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024 (continued)

4

Intangible assets

Basic payment scheme
 £

Total
£

Cost or valuation

At 1 April 2023

1,000

1,000

At 31 March 2024

1,000

1,000

Amortisation

At 1 April 2023

750

750

Amortisation charge

250

250

At 31 March 2024

1,000

1,000

Carrying amount

At 31 March 2024

-

-

At 31 March 2023

250

250

 

MWB Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024 (continued)

5

Tangible assets

Land and buildings
£

Plant and machinery
£

Motor vehicles
 £

Office equipment
£

Total
£

Cost or valuation

At 1 April 2023

2,752,034

830,319

3,000

176

3,585,529

Additions

-

127,355

-

232

127,587

Disposals

-

(11,150)

-

-

(11,150)

At 31 March 2024

2,752,034

946,524

3,000

408

3,701,966

Depreciation

At 1 April 2023

31,718

142,593

750

176

175,237

Charge for the year

7,606

53,423

563

19

61,611

Eliminated on disposal

-

(3,564)

-

-

(3,564)

At 31 March 2024

39,324

192,452

1,313

195

233,284

Carrying amount

At 31 March 2024

2,712,710

754,072

1,687

213

3,468,682

At 31 March 2023

2,720,316

687,726

2,250

-

3,410,292

Revaluation

The fair value of the company's Land and buildings was revalued on 1 August 2019 by the directors. An independent valuer was not involved.

The fair value of the company's Plant and machinery was revalued on 1 August 2019 by the directors. An independent valuer was not involved.

The fair value of the company's Office equipment was revalued on 1 August 2019 by the directors. An independent valuer was not involved.

 

MWB Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024 (continued)

6

Other financial assets (current and non-current)

2024
£

2023
£

Non-current financial assets

Financial assets at cost less impairment

117,661

109,949

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

At 1 April 2023

109,949

109,949

Additions

7,712

7,712

At 31 March 2024

117,661

117,661

Carrying amount

At 31 March 2024

117,661

117,661

7

Debtors

2024
£

2023
£

Trade debtors

55,347

57,600

Other debtors

49,998

17,970

105,345

75,570

 

MWB Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024 (continued)

8

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

9

812,408

808,488

Trade creditors

 

133,574

123,407

Taxation and social security

 

984

170

Corporation tax liability

 

47,203

23,143

Other creditors

 

27,484

50,966

 

1,021,653

1,006,174

Due after one year

 

Loans and borrowings

9

1,185,895

1,236,212

9

Loans and borrowings

2024
£

2023
£

Current loans and borrowings

Bank borrowings

50,394

49,149

Other borrowings

762,014

759,339

812,408

808,488

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

2024
£

2023
£

Bank borrowings

50,394

49,149

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

 

MWB Farms Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024 (continued)

2024
£

2023
£

Non-current loans and borrowings

Bank borrowings

1,185,895

1,236,212

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

2024
£

2023
£

Bank borrowings

1,185,895

1,236,212

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