Company registration number 01612961 (England and Wales)
HAY FARMING LIMITED
Unaudited Financial Statements
For The Year Ended 31 March 2024
Pages For Filing With Registrar
Hay Farming Limited
HAY FARMING LIMITED
Contents
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
5 - 9
Hay Farming Limited
HAY FARMING LIMITED
Accountants' Report To The Board Of Directors On The Preparation Of The Unaudited Statutory Financial Statements Of Hay Farming Limited For The Year Ended 31 March 2024
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Hay Farming Limited for the year ended 31 March 2024 which comprise, the balance sheet, the statement of changes in equity and the related notes 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 https://www.icaew.com/regulation.
This report is made solely to the board of directors of Hay Farming Limited, as a body, in accordance with the terms of our engagement letter dated 19 July 2024. Our work has been undertaken solely to prepare for your approval the financial statements of Hay Farming Limited and state those matters that we have agreed to state to the board of directors of Hay 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 Hay Farming Limited and its board of directors as a body, for our work or for this report.
It is your duty to ensure that Hay Farming Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Hay Farming Limited. You consider that Hay 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 financial statements of Hay 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 financial statements.
Chavereys Limited
23 July 2024
Chartered Accountants
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
Hay Farming Limited
HAY FARMING LIMITED
Balance Sheet
As At 31 March 2024
31 March 2024
- 2 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
7,037,448
7,112,774
Investments
4
52,756
46,730
7,090,204
7,159,504
Current assets
Stocks
1,444,515
1,452,565
Debtors
5
815,985
594,271
Cash at bank and in hand
368,199
161
2,628,699
2,046,997
Creditors: amounts falling due within one year
6
(829,268)
(825,817)
Net current assets
1,799,431
1,221,180
Total assets less current liabilities
8,889,635
8,380,684
Creditors: amounts falling due after more than one year
7
(441,946)
(543,443)
Provisions for liabilities
(421,247)
(322,252)
Net assets
8,026,442
7,514,989
Capital and reserves
Called up share capital
9
2,928
2,928
Other reserves
3,719,675
3,719,675
Profit and loss reserves
4,303,839
3,792,386
Total equity
8,026,442
7,514,989
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Hay Farming Limited
HAY FARMING LIMITED
Balance Sheet (Continued)
As At 31 March 2024
31 March 2024
- 3 -
The financial statements were approved by the board of directors and authorised for issue on 22 July 2024 and are signed on its behalf by:
Mrs M M P Hay
Mrs HF Ralling
Director
Director
Company Registration No. 01612961
Hay Farming Limited
HAY FARMING LIMITED
Statement Of Changes In Equity
For The Year Ended 31 March 2024
- 4 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
2,928
3,719,675
3,879,728
7,602,331
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
20,399
20,399
Dividends
-
-
(107,741)
(107,741)
Balance at 31 March 2023
2,928
3,719,675
3,792,386
7,514,989
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
606,694
606,694
Dividends
-
-
(95,241)
(95,241)
Balance at 31 March 2024
2,928
3,719,675
4,303,839
8,026,442
Hay Farming Limited
HAY FARMING LIMITED
Notes To The Financial Statements
For The Year Ended 31 March 2024
- 5 -
1
Accounting policies
Company information
Hay Farming Limited is a private company limited by shares incorporated in England and Wales. The registered office is Somerset Farm, St Marks Road, Holbeach St Marks, Spalding, Lincolnshire, England, PE12 8ED.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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. The principal accounting policies adopted are set out below.
1.2
Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
1.3
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.
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:
Freehold property
0-10% straight line
Plant, machinery and motor vehicles
10-25% reducing balance and straight line
Motor vehicles
25% reducing balance
Storage boxes
33% straight line
1.4
Biological assets
Biological assets comprise crops in ground at the year end. These are measured at the lower of cost and estimated selling price less costs to complete and sell.
1.5
Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stock. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the profit and loss account.
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Hay Farming Limited
HAY FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 March 2024
1
Accounting policies
(Continued)
- 6 -
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.
1.7
Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the profit and loss account when they fall.
1.8
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.
1.9
Agricultural support schemes
Payments received under agricultural support schemes are recognised as income when the company has met all criteria which entitle it to the payments.
Amounts received under the Basic Payment scheme are recognised on 31 December in the year of claim. No provision has been made for penalties arising from the failure to comply with ‘cross compliance’ conditions, as defined by the RPA, except for where notification has been received.
1.10
Investments are measured at cost less accumulated impairment.
Hay Farming Limited
HAY FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 March 2024
- 7 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
11
13
3
Tangible fixed assets
Freehold property
Plant, machinery and motor vehicles
Total
£
£
£
Cost
At 1 April 2023
5,939,149
4,108,044
10,047,193
Additions
406,875
406,875
Disposals
(256,709)
(256,709)
At 31 March 2024
5,939,149
4,258,210
10,197,359
Depreciation and impairment
At 1 April 2023
353,482
2,580,937
2,934,419
Depreciation charged in the year
26,993
408,975
435,968
Eliminated in respect of disposals
(210,476)
(210,476)
At 31 March 2024
380,475
2,779,436
3,159,911
Carrying amount
At 31 March 2024
5,558,674
1,478,774
7,037,448
At 31 March 2023
5,585,667
1,527,107
7,112,774
Included in the cost of freehold property is an amount of £4,996,452 (2023 - £4,998,874) in respect of land and property which is not depreciated.
4
Fixed asset investments
2024
2023
£
£
Unlisted investments
52,756
46,730
Hay Farming Limited
HAY FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 March 2024
4
Fixed asset investments
(Continued)
- 8 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 April 2023
46,730
Additions
6,026
At 31 March 2024
52,756
Carrying amount
At 31 March 2024
52,756
At 31 March 2023
46,730
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
536,696
385,288
Other debtors
109,947
50,770
Prepayments and accrued income
169,342
158,213
815,985
594,271
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
9,646
246,249
Obligations under finance leases
158,555
125,839
Trade creditors
411,111
355,674
Corporation tax
110,614
Other taxation and social security
9,894
10,984
Other creditors
27,405
27,773
Accruals and deferred income
102,043
59,298
829,268
825,817
Bank overdrafts and loans are secured by fixed charges over the company's freehold property. Obligations under finance leases are secured against the assets being financed.
Hay Farming Limited
HAY FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 March 2024
- 9 -
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
291,299
299,673
Obligations under finance leases
150,647
243,770
441,946
543,443
Bank overdrafts and loans are secured by fixed charges over the company's freehold property. Obligations under finance leases are secured against the assets being financed.
Bank loans include an amount of £235,911 (2023 - £246,961) repayable by instalments after more than five years.
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
Land and buildings
263,868
318,071
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
150,000
150,000
1,500
1,500
Ordinary B shares of 1p each
142,837
142,837
1,428
1,428
292,837
292,837
2,928
2,928
10
Directors' transactions
During the year the company loaned three directors a combined total of £19,032 which remained outstanding at the end of the year.
11
Parent company
The ultimate holding company is Hay Farming Group Limited, a company incorporated in England and Wales.