Company registration number 00998005 (England and Wales)
QUANTIL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
QUANTIL LIMITED
COMPANY INFORMATION
Directors
D W Symondson
J B Pape
F W Houghton
A J A Hill
L D'cruz
S J Blackhurst
M R Clementson
H C Symondson
K A Symondson
J Tillery
Secretary
F M Symondson
Company number
00998005
Registered office
Mere House Nurseries
69 Jacksmere Lane
Scarisbrick
Ormskirk
L40 9RT
Auditor
Lonsdale & Marsh
509 - 510 Cotton Exchange
Bixteth Street
Liverpool
L3 9LQ
Bankers
Natwest PLC (Bishopsgate, London)
Liverpool Street Station (B)
PO Box 282
216 Bishopgate
London
EC2M 4QB
QUANTIL 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
Statement of cash flows
10
Notes to the financial statements
11 - 24
QUANTIL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

The business has performed above budget for the year and there has been growth in turnover during the year to 31st December 2023. The company’s customer base is made up of a mixture of retail garden centres and commercial customers throughout the UK. Having a good mix of customers has provided a steady growth in turnover over the last 5 years.

 

During 2023 the company managed to maintain good profitability and kept control of input costs and overheads, despite the economic pressures of the highest inflation seen in the UK for 30 years. Interest on borrowings were significantly above budgeted levels due to 5 consecutive Bank of England rate increases during 2023. The rate increased by 3% during the year.

Principal risks and uncertainties

The company operates in a highly competitive market which is a continuing risk to the company and could result in losing sales to competitors. The company manages this risk by focusing on the quality of its products, innovation in its growing and packing process and maintaining strong relationships with its customers.

 

The United Kingdom is no longer a member of the European Union and this holds a number of hurdles for the business and government policy on non UK seasonal workers and relevant VISA schemes are an ongoing concern to the company. The business is involved with all relevant agencies and trade organisations who lobby for fair policies on seasonal workers in the horticultural sector. The company also manage this risk by a robust policy on recruitment both inside and outside the UK supported by attractive packages and high standards to employees.

Key performance indicators

The directors are of the opinion that analysis of key performance indicators is not necessary for the understanding of the development, performance or position of the business.

On behalf of the board

D W Symondson
Director
3 September 2024
QUANTIL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their report and financial statements for the year ended 31 December 2023.
Principal activities

The principal activity of the company continued to be that of the production and sale of vegetable plants and growing services.

Results and dividends

The results for the year are set out on page 7.

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:

D W Symondson
J B Pape
F W Houghton
A J A Hill
L D'cruz
S J Blackhurst
M R Clementson
H C Symondson
K A Symondson
J Tillery
S D Lewis
(Resigned 30 June 2023)
Auditor

In accordance with the company's articles, a resolution proposing that Lonsdale & Marsh 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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
D W Symondson
Director
3 September 2024
QUANTIL 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.

 

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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

We have audited the financial statements of Quantil 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, the statement of cash flows 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:

QUANTIL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF QUANTIL 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 intends 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as Companies Act, and FRS 102.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including override of controls) and addressed the risk through testing of journal entries to identify unusual transactions and assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above and to respond to the risks of fraud. Audit procedures performed in response to risks identified included:

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

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to the events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

Nicholas James O'Donovan
Senior Statutory Auditor
For and on behalf of Lonsdale & Marsh
3 September 2024
Chartered Accountants
Statutory Auditor
509 - 510 Cotton Exchange
Bixteth Street
Liverpool
L3 9LQ
QUANTIL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
9,162,305
8,876,279
Cost of sales
(4,675,569)
(4,634,777)
Gross profit
4,486,736
4,241,502
Distribution costs
(1,058,747)
(1,055,814)
Administrative expenses
(2,150,131)
(1,934,579)
Other operating income
68,123
8,512
Operating profit
4
1,345,981
1,259,621
Interest receivable and similar income
7
23,787
-
0
Interest payable and similar expenses
8
(133,607)
(58,604)
Profit before taxation
1,236,161
1,201,017
Tax on profit
9
(286,094)
(209,319)
Profit for the financial year
950,067
991,698

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

QUANTIL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
7,359,378
7,322,124
Current assets
Stocks
12
1,040,310
916,384
Debtors
13
830,564
830,670
Cash at bank and in hand
967,034
695,474
2,837,908
2,442,528
Creditors: amounts falling due within one year
14
(1,981,166)
(1,294,522)
Net current assets
856,742
1,148,006
Total assets less current liabilities
8,216,120
8,470,130
Creditors: amounts falling due after more than one year
15
(712,361)
(1,959,300)
Provisions for liabilities
Deferred tax liability
17
746,215
703,353
(746,215)
(703,353)
Net assets
6,757,544
5,807,477
Capital and reserves
Called up share capital
21
125,000
125,000
Capital redemption reserve
100,000
100,000
Profit and loss reserves
6,532,544
5,582,477
Total equity
6,757,544
5,807,477

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

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:
D W Symondson
Director
Company registration number 00998005 (England and Wales)
QUANTIL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
125,000
100,000
4,590,779
4,815,779
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
991,698
991,698
Balance at 31 December 2022
125,000
100,000
5,582,477
5,807,477
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
950,067
950,067
Balance at 31 December 2023
125,000
100,000
6,532,544
6,757,544
QUANTIL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,952,309
1,277,262
Interest paid
(133,607)
(58,604)
Income taxes paid
(263,020)
(281,416)
Net cash inflow from operating activities
1,555,682
937,242
Investing activities
Purchase of tangible fixed assets
(510,527)
(2,118,891)
Proceeds from disposal of tangible fixed assets
5,750
-
0
Interest received
23,787
-
0
Net cash used in investing activities
(480,990)
(2,118,891)
Financing activities
Proceeds from new bank loans
-
0
1,500,000
Repayment of bank loans
(803,132)
(330,220)
Net cash (used in)/generated from financing activities
(803,132)
1,169,780
Net increase/(decrease) in cash and cash equivalents
271,560
(11,869)
Cash and cash equivalents at beginning of year
695,474
707,343
Cash and cash equivalents at end of year
967,034
695,474
QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

Quantil Limited is a private company limited by shares incorporated in England and Wales. The registered office is Mere House Nurseries, 69 Jacksmere Lane, Scarisbrick, Ormskirk, L40 9RT.

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. The principal accounting policies adopted are set out below.

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
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

1.5
Tangible fixed assets

Tangible fixed assets are measured at cost net of depreciation and any impairment losses.

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

Land and buildings Freehold
2% - 5% straight line
Plant and machinery
5% - 33% straight line
Computer equipment
20% - 33% straight line
Motor vehicles
20% straight line

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.

QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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.

1.8
Cash and cash equivalents

Cash at bank and in hand 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. Where appropriate bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and other loans 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.

 

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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.

QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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.

 

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.

1.12
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.

 

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

 

Where relevant 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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.16
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.17
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.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Supply of vegetable plants and growing services
9,162,305
8,876,279
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
9,162,305
8,876,279
2023
2022
£
£
Other revenue
Interest income
23,787
-
Grants received
5,445
5,445
QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
341
3,091
Government grants
(5,445)
(5,445)
Fees payable to the company's auditor for the audit of the company's financial statements
9,075
8,250
Depreciation of owned tangible fixed assets
473,273
431,061
Profit on disposal of tangible fixed assets
(5,750)
-
Operating lease charges
39,557
38,763
5
Employees

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

2023
2022
Number
Number
Management and administration
20
20
Nursery and greenhouse
50
51
Total
70
71

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,148,733
2,063,706
Pension costs
155,594
124,922
2,304,327
2,188,628
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
381,997
357,264
Company pension contributions to defined contribution schemes
104,881
77,917
486,878
435,181

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2022 - 6).

QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
61,850
61,850
Company pension contributions to defined contribution schemes
66,894
52,792
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
23,787
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
23,787
-
0
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
132,939
58,604
Other interest on financial liabilities
668
-
0
133,607
58,604
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
243,232
262,302
Deferred tax
Origination and reversal of timing differences
42,862
(52,983)
Total tax charge
286,094
209,319
QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 18 -

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
1,236,161
1,201,017
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
309,040
228,193
Tax effect of expenses that are not deductible in determining taxable profit
(6,590)
(2,868)
Effect of change in corporation tax rate
(15,330)
-
0
Capital allowances in excess of depreciation
(43,402)
37,807
Deferred tax provision in respect of current year
42,862
(52,983)
Other
(486)
(830)
Taxation charge for the year
286,094
209,319
10
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
209,642
Amortisation and impairment
At 1 January 2023 and 31 December 2023
209,642
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
2,444,839
8,392,983
165,292
90,685
11,093,799
Additions
10,000
487,524
13,003
-
0
510,527
Disposals
-
0
(23,423)
-
0
-
0
(23,423)
At 31 December 2023
2,454,839
8,857,084
178,295
90,685
11,580,903
Depreciation and impairment
At 1 January 2023
75,299
3,461,247
144,444
90,685
3,771,675
Depreciation charged in the year
11,099
450,357
11,817
-
0
473,273
Eliminated in respect of disposals
-
0
(23,423)
-
0
-
0
(23,423)
At 31 December 2023
86,398
3,888,181
156,261
90,685
4,221,525
Carrying amount
At 31 December 2023
2,368,441
4,968,903
22,034
-
0
7,359,378
At 31 December 2022
2,369,540
4,931,736
20,848
-
0
7,322,124
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,040,310
916,384
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
526,803
634,337
Amounts owed by undertakings in which the company has a participating interest
176,622
95,931
Other debtors
68,468
27,827
Prepayments and accrued income
58,671
72,575
830,564
830,670
QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
753,547
313,824
Trade creditors
662,033
354,948
Corporation tax
242,514
262,302
Other taxation and social security
64,648
53,894
Government grants
18
4,084
5,445
Other creditors
11,850
6
Accruals and deferred income
242,490
304,103
1,981,166
1,294,522
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
712,361
1,955,216
Government grants
18
-
0
4,084
712,361
1,959,300
Amounts included above which fall due after five years are as follows:
Payable by instalments
134,243
-
16
Loans and overdrafts
2023
2022
£
£
Bank loans
1,465,908
2,269,040
Payable within one year
753,547
313,824
Payable after one year
712,361
1,955,216

The bank loans and overdrafts are secured by a debenture and a first legal charge over a number of areas of freehold land.

As at 31 December 2023 the company has two bank loans -

Loan 1    

Repayable in full by August 2024

Interest charged at 1.75% over Base Rate

EBITDA to Debt Service Liability for each financial year must be at least 1.75 to 1

Loan 2

Repayable in full by July 2032

Interest charged at 1.93 over Base Rate

EBITDA to Debt Service Liability for each financial year must be at least 1.75 to 1

QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
746,215
703,353
2023
Movements in the year:
£
Liability at 1 January 2023
703,353
Charge to profit or loss
42,862
Liability at 31 December 2023
746,215

The deferred tax liability set out above is expected to reverse over a number of years and relates to accelerated capital allowances that are expected to mature over the same period.

18
Government grants
2023
2022
£
£
Arising from government grants
4,084
9,529
Included in the financial statements as follows:
Current liabilities
4,084
5,445
Non-current liabilities
-
0
4,084
4,084
9,529
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
155,594
124,922

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.

As at 31 December 2023 there were were unpaid contributions of £14,474 (2022 - £47,451 ).

QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
20
Share-based payment transactions
Number of share options
Weighted average exercise price
2023
2022
2023
2022
Number
Number
£
£
Outstanding at 1 January 2023 and 31 December 2023
21,875
21,875
20.50
20.50
Exercisable at 31 December 2023
-
0
-
0
-
0
-
0

The options outstanding at 31 December 2023 had an exercise price of £20.50, and a remaining contractual life of 8 years.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
125,000
125,000
125,000
125,000
22
Financial commitments, guarantees and contingent liabilities

During the year the company entered into forward foreign currency contracts. As at 31 December 2023 the commitment outstanding is £197,043.

23
Capital commitments

Amounts contracted for but not provided in the financial statements:

2023
2022
£
£
Acquisition of tangible fixed assets
-
0
22,857
24
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
25,138
25,138
Between two and five years
50,643
75,781
75,781
100,919
QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Operating lease commitments
(Continued)
- 23 -
Lessor

The operating leases represent two short term leases to third parties. The leases are negotiated over terms not exceeding four years and rentals are fixed during that time. There are no options in place for either party to extend the lease terms.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2023
2022
£
£
Within one year
4,500
41,897
Between two and five years
4,130
8,630
8,630
50,527
25
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Quantil Agriculture Limited
481,870
412,063
91,450
114,201
Alexander Square Partners Limited
-
-
20,000
20,000

Quantil Agriculture Limited, Alexander Square Partners Limited and Venetia Limited are related by virtue of having common directors. Venetia Limited was dissolved 26 July 2022.

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Alexander Square Partners Limited
5,000
5,000
Key management personnel
-
0
945

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Quantil Agriculture Limited
176,622
95,971
26
Ultimate controlling party

The ultimate controlling party is D W Symondson by reason of his majority shareholding in the ordinary share capital of the company.

QUANTIL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
27
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
950,067
991,698
Adjustments for:
Taxation charged
286,094
209,319
Finance costs
133,607
58,604
Investment income
(23,787)
-
0
Gain on disposal of tangible fixed assets
(5,750)
-
Depreciation and impairment of tangible fixed assets
473,273
431,061
Movements in working capital:
(Increase)/decrease in stocks
(123,926)
103,628
Decrease/(increase) in debtors
106
(436,357)
Increase/(decrease) in creditors
268,070
(75,245)
Decrease in deferred income
(5,445)
(5,446)
Cash generated from operations
1,952,309
1,277,262
28
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
695,474
271,560
967,034
Borrowings excluding overdrafts
(2,269,040)
803,132
(1,465,908)
(1,573,566)
1,074,692
(498,874)
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