Company registration number 01129055 (England and Wales)
BELTON FARM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BELTON FARM LIMITED
COMPANY INFORMATION
Directors
Mr. J C Beckett
Mr. W J Neville
(Appointed 19 June 2023)
Mrs K L Beckett
(Appointed 19 June 2023)
Secretary
Mrs K L Beckett
Company number
01129055
Registered office
Belton
Whitchurch
Shropshire
United Kingdom
SY13 1JD
Auditor
Azets Audit Services
Alpha House
4 Greek Street
Stockport
United Kingdom
SK3 8AB
BELTON FARM LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 23
BELTON FARM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

Market Analysis

Belton operates in the competitive British cheese market, characterized by a growing consumer interest in high-quality and innovative cheese products. Key trends include a shift towards premium and speciality cheeses and increasing demand for sustainably produced foods.

Strategic Objectives

Our long-term goals are to:

  1. Enhance brand recognition and expand our market share.

  2. Invest in state-of-the-art production and packing facilities.

  3. Ensure and focus on sustainable practices.

  4. Increase export sales and diversify our international presence.

Performance Review

Belton Farm delivered another strong performance in 2023, with an increase to EBITDA. Our Red Fox brand underwent a major refresh, and our Smoked Red Fox and new Silver Fox products have gained significant market traction.

Investment in Packing and Processing

In 2023, we invested in our packing operation, enhancing efficiency with high-speed packing equipment.

Inflation

The hyperinflation in milk prices seen in 2022 settled in 2023, returning to the levels of spring 2022. Energy costs have reduced but remain high, prompting the installation of additional solar panels in Q4 2024 to reduce grid electricity reliance by one-third.

Strengthening Our Business

Our diverse and growing customer base across the UK is founded on long-term relationships. Targeted marketing has focused on promoting the diversity of cheese beyond cheddar. The Red Fox brand, refreshed in 2023, has led to increased market share and consumer engagement, particularly among younger demographics through social media campaigns.

Changes in consumer buying habits due to rising food costs have been addressed by adapting our product offerings and expanding listings with independent retailers. Export sales now account for 15% of total sales, with strong growth in the USA, supported by our award-winning Red Fox and new-to-market Silver Fox.

Sustainability and Social Responsibility

Belton Farm is dedicated to sustainability, having reduced greenhouse gas emissions by 48% over the past 15 years. All our milk producers are part of our Sustainability programme, ensuring high standards in environmental protection. We continue to invest in sustainable practices and technologies to further reduce our environmental impact.

Future Outlook

Looking ahead, Belton Farm aims to continue expanding its product range and market presence. We anticipate further growth in export sales and are committed to maintaining our high standards of quality and sustainability. Challenges such as regulatory changes and cost pressures will be managed through strategic investments and adaptive marketing strategies.

On behalf of the board

Mr. J C Beckett
Director
3 September 2024
BELTON FARM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr. J C Beckett
Mr. W J Neville
(Appointed 19 June 2023)
Mrs K L Beckett
(Appointed 19 June 2023)
Financial instruments
Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr. J C Beckett
Director
3 September 2024
BELTON FARM LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors are responsible for preparing the annual report 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:

 

 

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.

BELTON FARM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BELTON FARM LIMITED
- 4 -
Opinion

We have audited the financial statements of Belton Farm Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

BELTON FARM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BELTON FARM LIMITED
- 5 -
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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor's report 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

BELTON FARM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BELTON FARM LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, 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 those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 an auditor's report 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.

Helen Davies
Senior Statutory Auditor
For and on behalf of Azets Audit Services
10 September 2024
Chartered Accountants
Statutory Auditor
Alpha House
4 Greek Street
Stockport
United Kingdom
SK3 8AB
BELTON FARM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
39,338,346
40,909,360
Cost of sales
(34,195,239)
(36,381,717)
Gross profit
5,143,107
4,527,643
Administrative expenses
(2,476,988)
(2,052,593)
Operating profit
4
2,666,119
2,475,050
Interest receivable and similar income
7
(24,062)
(57,760)
Interest payable and similar expenses
8
(1,228,062)
(520,276)
Profit before taxation
1,413,995
1,897,014
Tax on profit
9
(360,878)
(202,271)
Profit for the financial year
1,053,117
1,694,743

The profit and loss account has been prepared on the basis that all operations are continuing operations.

BELTON FARM LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,868,607
3,990,423
Investments
12
64,145
88,207
3,932,752
4,078,630
Current assets
Stocks
13
24,229,263
20,147,905
Debtors
14
13,489,766
12,890,288
Cash at bank and in hand
109,394
33,733
37,828,423
33,071,926
Creditors: amounts falling due within one year
15
(18,629,248)
(15,186,598)
Net current assets
19,199,175
17,885,328
Total assets less current liabilities
23,131,927
21,963,958
Creditors: amounts falling due after more than one year
16
(3,643,469)
(3,591,503)
Provisions for liabilities
Deferred tax liability
19
372,634
309,748
(372,634)
(309,748)
Net assets
19,115,824
18,062,707
Capital and reserves
Called up share capital
22
10,000
10,000
Revaluation reserve
1,847,061
1,847,061
Profit and loss reserves
17,258,763
16,205,646
Total equity
19,115,824
18,062,707
The financial statements were approved by the board of directors and authorised for issue on 3 September 2024 and are signed on its behalf by:
Mr. J C Beckett
Director
Company Registration No. 01129055
BELTON FARM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
10,000
1,847,061
15,196,557
17,053,618
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
1,694,743
1,694,743
Dividends
10
-
-
(685,654)
(685,654)
Balance at 31 December 2022
10,000
1,847,061
16,205,646
18,062,707
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
1,053,117
1,053,117
Balance at 31 December 2023
10,000
1,847,061
17,258,763
19,115,824
BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

Belton Farm Limited is a private company limited by shares incorporated in England and Wales. The registered office is Belton, Whitchurch, Shropshire, United Kingdom, SY13 1JD.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Belton Farm Group Limited. These consolidated financial statements are available from its registered office, Belton, Whitchurch, Shropshire, SY13 1JD.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Freehold
10% pa reducing balance
Plant and machinery
15% pa reducing balance and 11% pa straight line
Fixtures, fittings & equipment
15% pa reducing balance
Motor vehicles
20% pa reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. The company values stock at a 2-3 month average selling price less margin rather than standard cost as this valuation method also takes into account external factors which affect product value.

 

BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 a 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

The company operates a defined contribution retirement benefit scheme for its employees and contributions are charged as an expense as they fall due.

1.14
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.15
Government grants
Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.
1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 15 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Stock valuation

Stock valuation is a key accounting estimate for the company. Due to the nature of products which the company make and their varying maturity times the company chooses to value stock at a 2-3 month average selling price less a specified margin rather than standard cost as due to the varying maturity times the value of the cheese will cheese over the maturity process.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by geographical market
UK
36,832,387
39,814,101
EU
2,443,099
934,896
Rest of world
62,860
160,363
39,338,346
40,909,360
2023
2022
£
£
Other revenue
Interest income
(24,062)
(57,760)
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
31,200
28,500
Depreciation of owned tangible fixed assets
562,829
596,743
(Profit)/loss on disposal of tangible fixed assets
(325)
7,228
BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Production
64
70
Management and administration
18
15
Laboratory and maintenance
17
19
Total
99
104

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,866,680
3,556,942
Social security costs
404,496
378,129
Pension costs
112,721
107,432
4,383,897
4,042,503

 

6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
432,863
180,036
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
381,388
180,036
7
Interest receivable and similar income
2023
2022
£
£
Other income from investments
Gain/(loss) on financial instruments measured at fair value through profit or loss
(24,062)
(57,760)
BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
208,065
120,043
Interest payable on directors' loans
61,639
42,844
Other interest on financial liabilities
944,918
345,140
Other interest
13,440
12,249
1,228,062
520,276
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
295,234
227,384
Adjustments in respect of prior periods
2,758
-
0
Total current tax
297,992
227,384
Deferred tax
Origination and reversal of timing differences
62,886
(25,113)
Total tax charge
360,878
202,271

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,413,995
1,897,014
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
332,572
360,433
Tax effect of expenses that are not deductible in determining taxable profit
7,784
16,198
Group relief
(22,326)
(191,252)
Permanent capital allowances in excess of depreciation
-
0
16,892
Depreciation on assets not qualifying for tax allowances
36,361
-
0
Under/(over) provided in prior years
2,758
-
0
Deferred tax adjustments in respect of prior years
3,729
-
0
Taxation charge for the year
360,878
202,271
BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
10
Dividends
2023
2022
£
£
Final paid to parent company
-
0
685,654
11
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2023
2,597,598
9,456,931
290,853
159,610
12,504,992
Additions
8,621
425,329
38,239
-
0
472,189
Disposals
-
0
(22,658)
-
0
(17,495)
(40,153)
At 31 December 2023
2,606,219
9,859,602
329,092
142,115
12,937,028
Depreciation and impairment
At 1 January 2023
965,545
7,210,103
265,362
73,559
8,514,569
Depreciation charged in the year
156,399
383,079
6,141
17,210
562,829
Eliminated in respect of disposals
-
0
(4,312)
-
0
(4,665)
(8,977)
At 31 December 2023
1,121,944
7,588,870
271,503
86,104
9,068,421
Carrying amount
At 31 December 2023
1,484,275
2,270,732
57,589
56,011
3,868,607
At 31 December 2022
1,632,053
2,246,828
25,491
86,051
3,990,423

Land and buildings were revalued at 11 May 2018 by Fisher German, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £420,000 (2022 - £470,000), being cost £2,580,000 (2022 - £2,580,000) and accumulated depreciation £2,160,000 (2022 - £2,110,000).

12
Fixed asset investments
2023
2022
£
£
Listed investments
64,145
88,207

The listed investments in Genus PLC are included at market value.

BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Fixed asset investments
(Continued)
- 19 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2023
88,207
Valuation changes
(24,062)
At 31 December 2023
64,145
Carrying amount
At 31 December 2023
64,145
At 31 December 2022
88,207
13
Stocks
2023
2022
£
£
Raw materials and consumables
533,586
407,714
Finished goods and goods for resale
23,695,677
19,740,191
24,229,263
20,147,905
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,155,814
5,310,886
Amounts owed by group undertakings
7,893,869
7,227,813
Other debtors
276,584
226,507
Prepayments and accrued income
163,499
125,082
13,489,766
12,890,288
BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
166,499
155,976
Obligations under finance leases
18
182,330
188,642
Other borrowings
17
144,858
98,397
Trade creditors
2,823,508
3,607,562
Amounts owed to group undertakings
366,059
300,613
Corporation tax
230,841
77,366
Other taxation and social security
163,347
121,434
Other creditors
14,087,329
10,253,508
Accruals and deferred income
464,477
383,100
18,629,248
15,186,598

Other creditors include a receivables financing balance of £3,742,831 (2022: £4,183,286) secured on the trade debtors of the company.

 

Other creditors include a stock financing balance of £9,727,645 (2022: £5,781,082) secured on the stock of the company.

 

16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
2,672,419
2,820,272
Obligations under finance leases
18
543,912
712,048
Other borrowings
17
427,138
45,858
Government grants
20
-
0
13,325
3,643,469
3,591,503
17
Loans and overdrafts
2023
2022
£
£
Bank loans
2,838,918
2,976,248
Other loans
571,996
144,255
3,410,914
3,120,503
Payable within one year
311,357
254,373
Payable after one year
3,099,557
2,866,130
BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
17
Loans and overdrafts
(Continued)
- 21 -

Bank loan and overdraft securities are as follows:

 

1) Legal charge dated 02 July 2020 over Freehold property known as Belton Cheese Production & Processing Plant, Belton, Shropshire, SY13 1JD.

 

2) Legal charge dated 02 July 2020 over Freehold property known as Belton Farm, Belton, Shropshire, SY13 1JD.

 

3) Unlimited multilateral guarantee dated 02 July 2020 given by all group companies: Belton Farm Group Limited, Belton Farm Group Holdings Limited, Belton Farm Limited, Belton Farm Trading Limited and Belton Packing & Logistics Limited.

 

4) Debenture included fixed charge over all present freehold and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future dated 02 July 2020.

 

5) Other loans are secured against Freehold property known as Belton Farm, Whitchurch, Shropshire, SY13 1JD. Interest is charged at 6% above base rate.

The bank loans are repayable by monthly instalments, with interest charged at 2.5% above base rate.

18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
182,330
188,642
In two to five years
543,912
712,048
726,242
900,690

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. The finance lease relates to plant and machinery held in Belton Packing and Logistics Limited. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
-
309,748
Fixed asset timing differences
375,547
-
Short term timing differences
(2,913)
-
372,634
309,748
BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
19
Deferred taxation
(Continued)
- 22 -
2023
Movements in the year:
£
Liability at 1 January 2023
309,748
Charge to profit or loss
62,886
Liability at 31 December 2023
372,634

 

20
Government grants
2023
2022
£
£
Arising from government grants
-
13,325
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
112,721
107,432

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

Included within other taxation and social security are pensions amounts outstanding of £22,320 (2022: £20,184).

22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary of £1 each
10,000
10,000
10,000
10,000
23
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
-
94,250
BELTON FARM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
24
Related party transactions

Included within amounts owed by group are undertakings are amounts owed by Belton Farm Group Limited of £5,244,644 (2022: £5,149,721) and amounts owed by Belton Packing & Logistics Limited of £2,149,225 (2022: £2,078,091).

 

Included within amounts owed to group undertakings are amounts of £366,059 owed to Belton Farm Trading Limited (2022: £300,613).

25
Directors' transactions

Other creditors include £135,671 (2022: £160,052) due to members of the Beckett family, which includes J C Beckett the director.

26
Ultimate controlling party

The Company is a wholly-owned subsidiary undertaking of Belton Farm Group Limited which is the ultimate parent company incorporated in England and Wales.

 

The smallest and largest group in which the results of the Company are consolidated is that headed by Belton Farm Group Limited.

 

The consolidated financial statements of this group are available to the public and may be obtained from Belton, Whitchurch, Shropshire, SY13 1JD.

 

Belton Farm Group Limited is controlled by J C Beckett.

2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100No description of principal activityMr. J C BeckettMr. W J NevilleMrs K L BeckettMrs K L Beckettfalsefalse011290552023-01-012023-12-3101129055bus:Director12023-01-012023-12-3101129055bus:Director22023-01-012023-12-3101129055bus:CompanySecretaryDirector12023-01-012023-12-3101129055bus:CompanySecretary12023-01-012023-12-3101129055bus:Director32023-01-012023-12-3101129055bus:RegisteredOffice2023-01-012023-12-31011290552023-12-31011290552022-01-012022-12-3101129055core:RetainedEarningsAccumulatedLosses2022-01-012022-12-3101129055core:RetainedEarningsAccumulatedLosses2023-01-012023-12-31011290552022-12-3101129055core:LandBuildingscore:OwnedOrFreeholdAssets2023-12-3101129055core:PlantMachinery2023-12-3101129055core:FurnitureFittings2023-12-3101129055core:MotorVehicles2023-12-3101129055core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3101129055core:PlantMachinery2022-12-3101129055core:FurnitureFittings2022-12-3101129055core:MotorVehicles2022-12-3101129055core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3101129055core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3101129055core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3101129055core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3101129055core:CurrentFinancialInstruments2023-12-3101129055core:CurrentFinancialInstruments2022-12-3101129055core:Non-currentFinancialInstruments2023-12-3101129055core:Non-currentFinancialInstruments2022-12-3101129055core:ShareCapital2023-12-3101129055core:ShareCapital2022-12-3101129055core:RevaluationReserve2023-12-3101129055core:RevaluationReserve2022-12-3101129055core:RetainedEarningsAccumulatedLosses2023-12-3101129055core:RetainedEarningsAccumulatedLosses2022-12-3101129055core:ShareCapital2021-12-3101129055core:RevaluationReserve2021-12-3101129055core:RetainedEarningsAccumulatedLosses2021-12-3101129055core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-012023-12-3101129055core:PlantMachinery2023-01-012023-12-3101129055core:FurnitureFittings2023-01-012023-12-3101129055core:MotorVehicles2023-01-012023-12-310112905512023-01-012023-12-310112905512022-01-012022-12-3101129055core:UKTax2023-01-012023-12-3101129055core:UKTax2022-01-012022-12-310112905522023-01-012023-12-310112905522022-01-012022-12-3101129055core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3101129055core:PlantMachinery2022-12-3101129055core:FurnitureFittings2022-12-3101129055core:MotorVehicles2022-12-31011290552022-12-3101129055core:Non-currentFinancialInstrumentscore:ListedExchangeTraded2023-12-3101129055core:Non-currentFinancialInstrumentscore:ListedExchangeTraded2022-12-3101129055core:WithinOneYear2023-12-3101129055core:WithinOneYear2022-12-3101129055core:BetweenTwoFiveYears2023-12-3101129055core:BetweenTwoFiveYears2022-12-3101129055bus:PrivateLimitedCompanyLtd2023-01-012023-12-3101129055bus:FRS1022023-01-012023-12-3101129055bus:Audited2023-01-012023-12-3101129055bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP