IRIS Accounts Production v24.2.0.383 01540571 Board of Directors 1.6.23 31.5.24 31.5.24 producing and selling mushrooms. true false true true false false true false Ordinary £1 A 1.00000 Ordinary £1 B 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh015405712023-05-31015405712024-05-31015405712023-06-012024-05-31015405712022-05-31015405712022-06-012023-05-31015405712023-05-3101540571ns15:EnglandWales2023-06-012024-05-3101540571ns14:PoundSterling2023-06-012024-05-3101540571ns10:Director12023-06-012024-05-3101540571ns10:PrivateLimitedCompanyLtd2023-06-012024-05-3101540571ns10:FRS1022023-06-012024-05-3101540571ns10:Audited2023-06-012024-05-3101540571ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-06-012024-05-3101540571ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-06-012024-05-3101540571ns10:FullAccounts2023-06-012024-05-3101540571ns10:OrdinaryShareClass12023-06-012024-05-3101540571ns10:OrdinaryShareClass22023-06-012024-05-3101540571ns10:Director22023-06-012024-05-3101540571ns10:Director32023-06-012024-05-3101540571ns10:RegisteredOffice2023-06-012024-05-3101540571ns5:RetainedEarningsAccumulatedLosses2023-05-3101540571ns5:RetainedEarningsAccumulatedLosses2022-05-3101540571ns5:RetainedEarningsAccumulatedLosses2023-06-012024-05-3101540571ns5:RetainedEarningsAccumulatedLosses2022-06-012023-05-3101540571ns5:RetainedEarningsAccumulatedLosses2024-05-3101540571ns5:RetainedEarningsAccumulatedLosses2023-05-3101540571ns5:CurrentFinancialInstruments2024-05-3101540571ns5:CurrentFinancialInstruments2023-05-3101540571ns5:ShareCapital2024-05-3101540571ns5:ShareCapital2023-05-3101540571ns5:OwnedOrFreeholdAssetsns5:LandBuildings2023-06-012024-05-3101540571ns5:ShortLeaseholdAssetsns5:LandBuildings2023-06-012024-05-3101540571ns5:PlantMachinery2023-06-012024-05-3101540571ns5:FurnitureFittings2023-06-012024-05-3101540571ns5:MotorVehicles2023-06-012024-05-3101540571ns5:ComputerEquipment2023-06-012024-05-3101540571ns10:HighestPaidDirector2023-06-012024-05-3101540571ns10:HighestPaidDirector2022-06-012023-05-3101540571ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2023-06-012024-05-3101540571ns5:PlantEquipmentOtherAssetsUnderOperatingLeases2022-06-012023-05-3101540571ns5:OwnedAssets2023-06-012024-05-3101540571ns5:OwnedAssets2022-06-012023-05-310154057112023-06-012024-05-310154057112022-06-012023-05-3101540571ns10:OrdinaryShareClass12022-06-012023-05-3101540571ns5:LandBuildings2023-05-3101540571ns5:ShortLeaseholdAssetsns5:LandBuildings2023-05-3101540571ns5:PlantMachinery2023-05-3101540571ns5:LandBuildings2023-06-012024-05-3101540571ns5:LandBuildings2024-05-3101540571ns5:ShortLeaseholdAssetsns5:LandBuildings2024-05-3101540571ns5:PlantMachinery2024-05-3101540571ns5:LandBuildings2023-05-3101540571ns5:ShortLeaseholdAssetsns5:LandBuildings2023-05-3101540571ns5:PlantMachinery2023-05-3101540571ns5:FurnitureFittings2023-05-3101540571ns5:MotorVehicles2023-05-3101540571ns5:ComputerEquipment2023-05-3101540571ns5:FurnitureFittings2024-05-3101540571ns5:MotorVehicles2024-05-3101540571ns5:ComputerEquipment2024-05-3101540571ns5:FurnitureFittings2023-05-3101540571ns5:MotorVehicles2023-05-3101540571ns5:ComputerEquipment2023-05-3101540571ns5:CurrentFinancialInstrumentsns5:WithinOneYear2024-05-3101540571ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-05-3101540571ns5:WithinOneYear2024-05-3101540571ns5:WithinOneYear2023-05-3101540571ns5:DeferredTaxation2023-05-3101540571ns5:DeferredTaxation2023-06-012024-05-3101540571ns5:DeferredTaxation2024-05-3101540571ns10:OrdinaryShareClass12024-05-3101540571ns10:OrdinaryShareClass22024-05-31
REGISTERED NUMBER: 01540571 (England and Wales)












DRINKWATER'S MUSHROOMS LIMITED

STRATEGIC REPORT, DIRECTORS' REPORT AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024






DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024










Page

Company Information 1

Strategic Report 2

Directors' Report 3

Independent Auditors' Report 4

Statement of Income and Retained Earnings 7

Balance Sheet 8

Cash Flow Statement 9

Notes to the Cash Flow Statement 10

Notes to the Financial Statements 11


DRINKWATER'S MUSHROOMS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MAY 2024







Directors: Mr K S Drinkwater
Mr P E Drinkwater
Mrs J A Drinkwater



Registered office: Dalton House
9 Dalton Square
LANCASTER
LA1 1WD



Business address: Hampson Farm
Hampson Lane
Galgate
LANCASTER
LA2 0JB



Registered number: 01540571 (England and Wales)



Auditors: Xeinadin Audit Limited
Accountants and Statutory Auditors
Dalton House
9 Dalton Square
LANCASTER
LA1 1WD



Bankers: HSBC Bank Plc
49a Fishergate
PRESTON
Lancashire
PR1 8BH



Accountants: Scott & Wilkinson
Dalton House
9 Dalton Square
LANCASTER
LA1 1WD

DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024


The directors present their strategic report for the year ended 31 May 2024.

Review of business
The company is principally engaged in the production and sale of mushrooms. The company is also continually developing its property assets to generate greater returns.

We aim to present a balance and comprehensive review of the development and performance of the business during the year and it's position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

As a mushroom producer, the company continues to supply its produce to national supermarket outlets.

We consider that our key performance indicators are those that communicate the financial performance and strength of the company as a whole, these being gross profit and profit after tax.

We are satisfied that the business has performed satisfactorily and in line with expectations.

Turnover has increased to £13,890,740 from £12,639,406 last year.

Gross profit has increased to £2,674,045 from £1,960,749 and gross profit margins have also risen due to increased staff and growing efficiencies. Non trading income has also increased resulting in an overall net profit after tax for the year of £709,877 compared to £53,632 in the previous year.

Principal risks and uncertainties
As for similar businesses we are continuing to operate in challenging times. The increasing power of the supermarkets, who are our major customers, mean our selling prices are continually review and kept to a minimum. This is a constant concern for us but our continual investment in new technology is making us more cost efficient enabling us to keep margins fairly steady.

With these risks and uncertainties in mind, we are aware that any plans for the future development of our business may be subject to unforeseen future events outside of our control.

On behalf of the board:





Mr K S Drinkwater - Director


13 September 2024

DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024


The directors present their report with the financial statements of the company for the year ended 31 May 2024.

Dividends
An interim dividend of £20 per share was paid on the Ordinary £1 A £1 shares on 6 April 2024. No dividends were paid on the Ordinary £1 B £1 shares.

The total distribution of dividends for the year ended 31 May 2024 will be £ 100,000 .

Directors
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report.

Mr K S Drinkwater
Mr P E Drinkwater
Mrs J A Drinkwater

Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Directors' 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:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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.

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Auditors
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:





Mr K S Drinkwater - Director


13 September 2024

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
DRINKWATER'S MUSHROOMS LIMITED


Opinion
We have audited the financial statements of Drinkwater's Mushrooms Limited (the 'company') for the year ended 31 May 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
DRINKWATER'S MUSHROOMS LIMITED


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 where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 Auditors' 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:

· enquiries are made of management and those charged with governance as to whether there is any knowledge of actual, suspected, or alleged fraud, whether there is any known non-compliance with laws or regulations, and whether the company has been subject to any litigation or any legal claims.
· audit work over the risk of management override of controls is undertaken. This includes testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
· analytical reviews are performed on the financial statements at all stages of the audit by comparison to prior years, budgets and expectations to ensure the reasonableness of the figures therein.
· third party confirmation is obtained from the company's bankers to confirm bank balances, loan facilities and security held.
· detailed audit testing is undertaken in specific areas to ensure that income and expenditure is correctly recorded and is a genuine income or expense of the company.
· financial statement disclosures are reviewed and tested to supporting documentation to assess compliance with applicable laws and regulations.

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF
DRINKWATER'S MUSHROOMS LIMITED


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 Auditors' 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.




Tim Preece F.C.C.A. (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Limited
Accountants and Statutory Auditors
Dalton House
9 Dalton Square
LANCASTER
LA1 1WD

16 September 2024

DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MAY 2024

2024 2023
Notes £    £   

Turnover 13,890,740 12,639,406

Cost of sales (11,216,695 ) (10,678,657 )
Gross profit 2,674,045 1,960,749

Administrative expenses (2,100,714 ) (2,098,555 )
573,331 (137,806 )

Other operating income 361,564 332,239
Operating profit 4 934,895 194,433

Interest receivable and similar income 57,848 8,876
992,743 203,309

Interest payable and similar expenses 5 (28,799 ) (24,709 )
Profit before taxation 963,944 178,600

Tax on profit 6 (257,067 ) (124,968 )
Profit for the financial year 706,877 53,632

Retained earnings at beginning of year 3,948,566 3,994,934

Dividends 7 (100,000 ) (100,000 )

Retained earnings at end of year 4,555,443 3,948,566

DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

BALANCE SHEET
31 MAY 2024

2024 2023
Notes £    £   
Fixed assets
Tangible assets 8 2,398,729 2,543,910

Current assets
Stocks 9 492,247 573,080
Debtors 10 1,176,537 982,519
Cash at bank and in hand 2,897,045 1,926,175
4,565,829 3,481,774
Creditors
Amounts falling due within one year 11 (2,028,184 ) (1,703,160 )
Net current assets 2,537,645 1,778,614
Total assets less current liabilities 4,936,374 4,322,524

Provisions for liabilities 14 (373,931 ) (366,958 )
Net assets 4,562,443 3,955,566

Capital and reserves
Called up share capital 15 7,000 7,000
Retained earnings 16 4,555,443 3,948,566
Shareholders' funds 4,562,443 3,955,566

The financial statements were approved by the Board of Directors and authorised for issue on 13 September 2024 and were signed on its behalf by:





Mr K S Drinkwater - Director


DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,380,967 842,176
Interest paid (28,799 ) (24,709 )
Tax paid (46,981 ) 19,558
Net cash from operating activities 1,305,187 837,025

Cash flows from investing activities
Purchase of tangible fixed assets (279,996 ) (275,649 )
Sale of tangible fixed assets 99,000 300
Interest received 57,848 8,876
Net cash from investing activities (123,148 ) (266,473 )

Cash flows from financing activities
Loan repayments in year (21,852 ) (66,619 )
Amount introduced by directors 199,774 176,781
Amount withdrawn by directors (289,091 ) (154,587 )
Equity dividends paid (100,000 ) (100,000 )
Net cash from financing activities (211,169 ) (144,425 )

Increase in cash and cash equivalents 970,870 426,127
Cash and cash equivalents at beginning of
year

2

1,926,175

1,500,048

Cash and cash equivalents at end of year 2 2,897,045 1,926,175

DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MAY 2024


1. Reconciliation of profit before taxation to cash generated from operations
2024 2023
£    £   
Profit before taxation 963,944 178,600
Depreciation charges 391,358 400,024
(Profit)/loss on disposal of fixed assets (65,181 ) 26,497
Finance costs 28,799 24,709
Finance income (57,848 ) (8,876 )
1,261,072 620,954
Decrease/(increase) in stocks 80,833 (52,982 )
(Increase)/decrease in trade and other debtors (194,018 ) 106,222
Increase in trade and other creditors 233,080 167,982
Cash generated from operations 1,380,967 842,176

2. Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2024
31/5/24 1/6/23
£    £   
Cash and cash equivalents 2,897,045 1,926,175
Year ended 31 May 2023
31/5/23 1/6/22
£    £   
Cash and cash equivalents 1,926,175 1,500,048


3. Analysis of changes in net funds

At 1/6/23 Cash flow At 31/5/24
£    £    £   
Net cash
Cash at bank and in hand 1,926,175 970,870 2,897,045
1,926,175 970,870 2,897,045
Debt
Debts falling due within 1 year (30,911 ) 21,852 (9,059 )
(30,911 ) 21,852 (9,059 )
Total 1,895,264 992,722 2,887,986

DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024


1. Statutory information

Drinkwater's Mushrooms Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable, for goods provided in the normal course of business, net of discounts, rebates, value added tax and other sales taxes.

Turnover is recognised at a point in time when a performance obligation is satisfied by transferring goods to the customer.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% Straight line
Short leasehold - 10% Reducing balance (excluding land)
Plant and machinery - 15% Reducing balance
Fixtures and fittings - 15% Reducing balance
Motor vehicles - 25% Reducing balance
Computer equipment - 25% on cost

Tangible fixed assets are stated at cost or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


2. Accounting policies - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. Employees and directors
2024 2023
£    £   
Wages and salaries 5,612,727 5,202,377
Social security costs 505,024 482,244
Other pension costs 157,207 167,555
6,274,958 5,852,176

The average number of employees during the year was as follows:
2024 2023

Production 201 198
Administration and support 4 3
205 201

2024 2023
£    £   
Directors' remuneration 394,763 394,093
Directors' pension contributions to money purchase schemes 114,978 114,978

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


3. Employees and directors - continued

Information regarding the highest paid director is as follows:
2024 2023
£    £   
Emoluments etc 259,763 255,640
Pension contributions to money purchase schemes 54,814 54,814

4. Operating profit

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 62,266 53,263
Other operating leases 190,765 183,473
Depreciation - owned assets 391,358 400,024
(Profit)/loss on disposal of fixed assets (65,181 ) 26,497
Auditors' remuneration 7,198 6,666
Foreign exchange differences 8,356 66

5. Interest payable and similar expenses
2024 2023
£    £   
Other interest payable 28,799 24,709

6. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 250,094 46,981

Deferred tax 6,973 77,987
Tax on profit 257,067 124,968

DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


6. Taxation - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 963,944 178,600
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

240,986

33,934

Effects of:
Expenses not deductible for tax purposes 16,081 13,357
Capital allowances in excess of depreciation - (12,722 )
Increase from effect of different tax rates - 90,399

Total tax charge 257,067 124,968

7. Dividends
2024 2023
£    £   
Ordinary £1 A shares of £1 each
Interim 100,000 100,000

8. Tangible fixed assets
Freehold Short Plant and
property leasehold machinery
£    £    £   
Cost
At 1 June 2023 513,395 2,394,651 4,735,412
Additions - - 64,437
Disposals - - (79,131 )
At 31 May 2024 513,395 2,394,651 4,720,718
Depreciation
At 1 June 2023 172,564 1,837,848 3,454,836
Charge for year 10,128 55,680 199,832
Eliminated on disposal - - (58,396 )
At 31 May 2024 182,692 1,893,528 3,596,272
Net book value
At 31 May 2024 330,703 501,123 1,124,446
At 31 May 2023 340,831 556,803 1,280,576

DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


8. Tangible fixed assets - continued

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
Cost
At 1 June 2023 451,200 598,457 67,862 8,760,977
Additions 1,400 205,000 9,159 279,996
Disposals (3,470 ) (131,300 ) (275 ) (214,176 )
At 31 May 2024 449,130 672,157 76,746 8,826,797
Depreciation
At 1 June 2023 284,885 408,310 58,624 6,217,067
Charge for year 23,930 95,554 6,234 391,358
Eliminated on disposal (3,215 ) (118,471 ) (275 ) (180,357 )
At 31 May 2024 305,600 385,393 64,583 6,428,068
Net book value
At 31 May 2024 143,530 286,764 12,163 2,398,729
At 31 May 2023 166,315 190,147 9,238 2,543,910

9. Stocks
2024 2023
£    £   
Stocks 492,247 573,080

10. Debtors: amounts falling due within one year
2024 2023
£    £   
Trade debtors 762,686 879,684
VAT 45,816 43,571
Accrued income 238,386 -
Prepayments 129,649 59,264
1,176,537 982,519

11. Creditors: amounts falling due within one year
2024 2023
£    £   
Other loans (see note 12) 9,059 30,911
Trade creditors 894,794 635,556
Tax 250,094 46,981
Social security and other taxes 187,490 169,128
Other creditors 79,893 139,753
Directors' current accounts 110,163 199,480
Accruals 496,691 481,351
2,028,184 1,703,160

DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


12. Loans

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Other loans 9,059 30,911

13. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 150,000 150,000

The amount of non-cancellable operating lease payments recognised as an expense during the year was £150,000 (2023 - £150,000).

14. Provisions for liabilities
2024 2023
£    £   
Deferred tax 373,931 366,958

Deferred
tax
£   
Balance at 1 June 2023 366,958
Charge to Income Statement during year 6,973
Balance at 31 May 2024 373,931

15. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
5,000 Ordinary £1 A £1 5,000 5,000
2,000 Ordinary £1 B £1 2,000 2,000
7,000 7,000

DRINKWATER'S MUSHROOMS LIMITED (REGISTERED NUMBER: 01540571)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MAY 2024


15. Called up share capital - continued

Rights, preferences and restrictions

Ordinary A Shares have the following rights, preferences and restrictions:
Full rights to dividends and right to attend and vote at general meetings of the company and to participate in distributions.
Right to repayment at par and to participate in distributions on winding up of the company.

Ordinary B shares have the following rights, preferences and restrictions:
No rights to attend and vote at general meetings of the company. Rights to dividends.
Right to repayment of the nominal value of each share in the event of a winding up of the company.

16. Reserves
Retained
earnings
£   

At 1 June 2023 3,948,566
Profit for the year 706,877
Dividends (100,000 )
At 31 May 2024 4,555,443