IRIS Accounts Production v24.2.0.383 03776727 Board of Directors 26.2.23 2.3.24 2.3.24 the packing and sale of farm produce and growing vegetables. true false true true false false true false Ordinary 1.00000 Preference share 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh037767272023-02-25037767272024-03-02037767272023-02-262024-03-02037767272022-02-26037767272022-02-272023-02-25037767272023-02-2503776727ns15:EnglandWales2023-02-262024-03-0203776727ns14:PoundSterling2023-02-262024-03-0203776727ns10:Director12023-02-262024-03-0203776727ns10:PrivateLimitedCompanyLtd2023-02-262024-03-0203776727ns10:FRS1022023-02-262024-03-0203776727ns10:Audited2023-02-262024-03-0203776727ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-02-262024-03-0203776727ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-02-262024-03-0203776727ns10:FullAccounts2023-02-262024-03-0203776727ns10:OrdinaryShareClass12023-02-262024-03-0203776727ns10:OrdinaryShareClass22023-02-262024-03-0203776727ns10:Director22023-02-262024-03-0203776727ns10:CompanySecretary12023-02-262024-03-0203776727ns10:RegisteredOffice2023-02-262024-03-0203776727ns5:CurrentFinancialInstruments2024-03-0203776727ns5:CurrentFinancialInstruments2023-02-2503776727ns5:Non-currentFinancialInstruments2024-03-0203776727ns5:Non-currentFinancialInstruments2023-02-2503776727ns5:ShareCapital2024-03-0203776727ns5:ShareCapital2023-02-2503776727ns5:RetainedEarningsAccumulatedLosses2024-03-0203776727ns5:RetainedEarningsAccumulatedLosses2023-02-2503776727ns5:ShareCapital2022-02-2603776727ns5:RetainedEarningsAccumulatedLosses2022-02-2603776727ns5:RetainedEarningsAccumulatedLosses2022-02-272023-02-2503776727ns5:RetainedEarningsAccumulatedLosses2023-02-262024-03-0203776727112023-02-262024-03-0203776727112022-02-272023-02-2503776727122023-02-262024-03-0203776727122022-02-272023-02-2503776727102023-02-262024-03-0203776727102022-02-272023-02-2503776727ns5:CurrentFinancialInstrumentsns5:WithinOneYear2024-03-0203776727ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-02-2503776727ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2024-03-0203776727ns5:Non-currentFinancialInstrumentsns5:BetweenTwoFiveYears2023-02-2503776727ns5:WithinOneYear2024-03-0203776727ns5:WithinOneYear2023-02-2503776727ns5:BetweenOneFiveYears2024-03-0203776727ns5:BetweenOneFiveYears2023-02-2503776727ns5:MoreThanFiveYears2024-03-0203776727ns5:MoreThanFiveYears2023-02-2503776727ns5:AllPeriods2024-03-0203776727ns5:AllPeriods2023-02-2503776727ns5:DeferredTaxation2023-02-2503776727ns5:DeferredTaxation2024-03-0203776727ns10:OrdinaryShareClass12024-03-0203776727ns10:OrdinaryShareClass22024-03-0203776727ns5:RetainedEarningsAccumulatedLosses2023-02-25
REGISTERED NUMBER: 03776727 (England and Wales)






















Strategic Report,

Report of the Directors and

Financial Statements

for the Period

26 February 2023 to 2 March 2024

for

Hammond Produce Limited

Hammond Produce Limited (Registered number: 03776727)






Contents of the Financial Statements
for the Period 26 February 2023 to 2 March 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


Hammond Produce Limited

Company Information
for the Period 26 February 2023 to 2 March 2024







DIRECTORS: J W Hammond
A E Hammond





SECRETARY: P A Thompson





REGISTERED OFFICE: New Farm
Mansfield Road
Redhill
Nottinghamshire
NG5 8PB





REGISTERED NUMBER: 03776727 (England and Wales)





AUDITORS: Wright Vigar Limited
Statutory Auditors
Chartered Accountants & Business Advisers
15 Newland
Lincoln
Lincolnshire
LN1 1XG

Hammond Produce Limited (Registered number: 03776727)

Strategic Report
for the Period 26 February 2023 to 2 March 2024

The directors present their strategic report for the 53-week period from 26 February 2023 to 2 March 2024.

OPERATIONAL AND FINANCIAL OVERVIEW
The Company supplies fresh produce to a varied customer base, including supermarkets, wholesale food suppliers and other food producers. Key suppliers to the Company include produce growers, packaging distributors, agency labour providers and suppliers of fuel and energy.

Following the invasion of Ukraine in February 2022, the Company suffered increased input costs for most key supplies, together with shortages of some raw materials. In turn, this led to increases in both direct and indirect costs, much of which continued into the period to 2 March 2024. Following heavy spring frosts in 2023, there were shortages of some UK fresh produce and, to meet customer demand, the Company was forced to use imports of produce for longer, and at higher prices, than usual. Despite these challenges, the Company succeeded in delivering a profit of £165,000 on sales of £16.4m, compared with a loss of £44,000 on sales of £14.2m last year.

The Company's transport fleet is used mainly for customer deliveries, with spare capacity sold to third parties when possible. External demand continued at the higher level enjoyed in the previous year.

There were continuing difficulties in recruiting direct labour operatives and in obtaining agency labour. To attract and retain skilled direct labour, the Company's bonus schemes were extended where possible, giving the opportunity for talented operatives to earn more than the national minimum wage.

The Company has maintained tight control of cash and working capital throughout the year and prepares weekly cash forecasts, with a 13-week time horizon, which are monitored daily and updated every week. As a result of these controls, the Company has continued to operate with in-hand cash balances throughout the year.

NORMAL BUSINESS RISKS AND UNCERTAINTIES
Extremes of weather can have a significant impact on the quality and availability of fresh produce processed by the Company. To minimise the potential impact on financial performance, the Company buys from a number of produce growers, both in the UK and overseas. A key supplier is a related company, T Hammond Farms Limited, which grows fresh produce on a number of separate areas of farmland, each with different growing characteristics, and has extensive irrigation facilities for periods of low rainfall. In addition, Hammond Produce Limited operates medium-term cold storage facilities.

Customer demand fluctuates depending upon the season of the year, any supermarket promotional activities, changes in the weather and any changes in demand from end-consumers. The business works in partnership with its customers to understand their requirements and to manage demand where feasible. The Company sells a range of fresh produce to spread demand across the year and to avoid over-reliance on a single type of produce.

The production process is labour intensive and requires suitably skilled people. The business employs a core workforce of directly employed staff and works in partnership with agency labour providers which supply additional staff during periods of high demand.

DEVELOPMENT, PERFORMANCE AND POSITION
During the year, the Company introduced additional bonus schemes, with the aim of both improving productivity and improving the take home pay of both employees and agency workers. These bonus schemes have been supported by improved systems to monitor and record production volumes, both with field harvest operatives and staff working on the main production lines.

Throughout the year the business has continued to develop and improve the knowledge and skills of the senior management team, through training, recruitment, external coaching and mentoring. The business continues to be focused on improving profitability whilst strengthening key relationships with both customers and suppliers.

KEY PERFORMANCE INDICATORS
Produce yields and the financial margin per tonne are monitored each month, together with direct labour utilisation and labour costs per tonne. This is used to ensure the Company is achieving consistently high output and efficiencies, together with acceptable margins. Customer quality issues are also monitored to ensure the Company's products meet the demands of the end-consumer.


Hammond Produce Limited (Registered number: 03776727)

Strategic Report
for the Period 26 February 2023 to 2 March 2024

FUTURE PROSPECTS
Since the year-end, volumes of fresh produce sold by the Company have been slightly lower than the same period in 2023, although margins have been better.

The Company started the current financial year with in-hand cash balances of £559,000 (last year: £336,000) and net current assets of £1,105,000 (last year: £949,000). The Company is funded by a combination of cash generated through operations and seasonal borrowings from other members of the Group. These funding lines have proven to be sufficient in the past, with adequate headroom to deal with seasonal cash requirements. There is no indication that headroom will worsen significantly in the coming year.

In preparing the accounts for the year ended 2 March 2024, the directors have considered the trading and financial position of the Company since the end of the period and are confident the Company will have a sufficient level of activity and sufficient cash resources to remain a going concern for the following 12 months.

ON BEHALF OF THE BOARD:





A E Hammond - Director


18 September 2024

Hammond Produce Limited (Registered number: 03776727)

Report of the Directors
for the Period 26 February 2023 to 2 March 2024

The directors present their report with the financial statements of the company for the 53-week period from 26 February 2023 to 2 March 2024.

DIVIDENDS
No dividends will be distributed for the period ended 2 March 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 26 February 2023 to the date of this report.

J W Hammond
A E Hammond

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





A E Hammond - Director


18 September 2024

Report of the Independent Auditors to the Members of
Hammond Produce Limited

Opinion
We have audited the financial statements of Hammond Produce Limited (the 'company') for the period ended 2 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 2 March 2024 and of its profit for the period 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 Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 Report of the Directors.

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.

Report of the Independent Auditors to the Members of
Hammond Produce Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 a Report of the Auditors 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:

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework.
- We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
- Substantive procedures performed in accordance with the ISAs (UK).
- Challenging assumptions and judgments made by management in its significant accounting estimates.
- Identifying and testing journal entries, in particular material journal entries and an assessment of year end journals.
- Assessing the extent of compliance with the relevant laws and regulations.

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 Report of the Auditors.

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 a Report of the Auditors 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.




Matthew Chadwick BA (Hons) FCA (Senior Statutory Auditor)
for and on behalf of Wright Vigar Limited
Statutory Auditors
Chartered Accountants & Business Advisers
15 Newland
Lincoln
Lincolnshire
LN1 1XG

18 September 2024

Hammond Produce Limited (Registered number: 03776727)

Income Statement
for the Period 26 February 2023 to 2 March 2024

Period Period
26.2.23 to 2.3.24 27.2.22 to 25.2.23
Notes £    £    £    £   

TURNOVER 16,427,329 14,159,056

Cost of sales 13,898,461 11,941,013
GROSS PROFIT 2,528,868 2,218,043

Distribution costs 152,996 204,868
Administrative expenses 2,209,697 2,056,594
2,362,693 2,261,462
OPERATING PROFIT/(LOSS) 4 166,175 (43,419 )


Interest payable and similar expenses 5 756 1,000
PROFIT/(LOSS) BEFORE TAXATION 165,419 (44,419 )

Tax on profit/(loss) 6 - (8,054 )
PROFIT/(LOSS) FOR THE FINANCIAL
PERIOD

165,419

(36,365

)

Hammond Produce Limited (Registered number: 03776727)

Other Comprehensive Income
for the Period 26 February 2023 to 2 March 2024

Period Period
26.2.23 27.2.22
to to
2.3.24 25.2.23
Notes £    £   

PROFIT/(LOSS) FOR THE PERIOD 165,419 (36,365 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE PERIOD

165,419

(36,365

)

Hammond Produce Limited (Registered number: 03776727)

Balance Sheet
2 March 2024

2024 2023
Notes £    £   
CURRENT ASSETS
Stocks 7 218,831 210,567
Debtors 8 2,222,920 1,955,216
Cash at bank and in hand 558,977 335,795
3,000,728 2,501,578
CREDITORS
Amounts falling due within one year 9 1,896,088 1,552,217
NET CURRENT ASSETS 1,104,640 949,361
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,104,640

949,361

CREDITORS
Amounts falling due after more than one
year

10

14,808

24,948
NET ASSETS 1,089,832 924,413

CAPITAL AND RESERVES
Called up share capital 14 2,200,002 2,200,002
Retained earnings 15 (1,110,170 ) (1,275,589 )
SHAREHOLDERS' FUNDS 1,089,832 924,413

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2024 and were signed on its behalf by:





A E Hammond - Director


Hammond Produce Limited (Registered number: 03776727)

Statement of Changes in Equity
for the Period 26 February 2023 to 2 March 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 27 February 2022 2,200,002 (1,239,224 ) 960,778

Changes in equity
Total comprehensive income - (36,365 ) (36,365 )
Balance at 25 February 2023 2,200,002 (1,275,589 ) 924,413

Changes in equity
Total comprehensive income - 165,419 165,419
Balance at 2 March 2024 2,200,002 (1,110,170 ) 1,089,832

Hammond Produce Limited (Registered number: 03776727)

Notes to the Financial Statements
for the Period 26 February 2023 to 2 March 2024

1. STATUTORY INFORMATION

Hammond Produce 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.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with the Financial Reporting Standard 102. 'The Financial 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.

At 2 March 2024, the Company had negative retained earnings of £1,110,000 (2023: £1,276,000) but positive shareholders funds of £1,090,000 (2023: £924,000). The directors are satisfied that the going concern basis used to prepare the accounts is appropriate, as the Company has the financial and operational support of the Parent entity and its shareholders.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the period 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.

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 period 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.

Foreign currencies
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating profit.

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 the income statement in the period to which they relate.

Hammond Produce Limited (Registered number: 03776727)

Notes to the Financial Statements - continued
for the Period 26 February 2023 to 2 March 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
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 entity after deducting all of its financial liabilities.

Where the contractual obligation of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited to equity.

Leasing commitments
Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

3. EMPLOYEES AND DIRECTORS
Period Period
26.2.23 27.2.22
to to
2.3.24 25.2.23
£    £   
Wages and salaries 2,371,904 2,361,557
Social security costs 243,426 262,449
Other pension costs 42,310 62,835
2,657,640 2,686,841

The average number of employees during the period was as follows:
Period Period
26.2.23 27.2.22
to to
2.3.24 25.2.23

Production 60 60
Administration 14 15
74 75

Period Period
26.2.23 27.2.22
to to
2.3.24 25.2.23
£    £   
Directors' remuneration 116,159 102,099
Directors' pension contributions to money purchase schemes - 18,000

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

Money purchase schemes 2 2

Hammond Produce Limited (Registered number: 03776727)

Notes to the Financial Statements - continued
for the Period 26 February 2023 to 2 March 2024

4. OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging:

Period Period
26.2.23 27.2.22
to to
2.3.24 25.2.23
£    £   
Auditors' remuneration 18,000 17,500
Operating leases 557,803 599,636

5. INTEREST PAYABLE AND SIMILAR EXPENSES
Period Period
26.2.23 27.2.22
to to
2.3.24 25.2.23
£    £   
Other interest 756 1,000

6. TAXATION

Analysis of the tax credit
The tax credit on the profit for the period was as follows:
Period Period
26.2.23 27.2.22
to to
2.3.24 25.2.23
£    £   
Current tax:
UK corporation tax - (8,054 )
Tax on profit/(loss) - (8,054 )

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

Period Period
26.2.23 27.2.22
to to
2.3.24 25.2.23
£    £   
Profit/(loss) before tax 165,419 (44,419 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 19%)

41,355

(8,440

)

Effects of:
Expenses not deductible for tax purposes 760 386
Adjustment in respect of tax losses brought forward (42,115 ) -


Total tax credit - (8,054 )

Hammond Produce Limited (Registered number: 03776727)

Notes to the Financial Statements - continued
for the Period 26 February 2023 to 2 March 2024

7. STOCKS
2024 2023
£    £   
Stocks 67,487 58,563
Raw materials 151,344 152,004
218,831 210,567

8. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,804,758 1,653,844
Amounts owed by group undertakings 49,129 29,614
Other debtors 8,100 8,170
VAT 89,057 44,013
Deferred tax asset 50,000 50,000
Prepayments and accrued income 221,876 169,575
2,222,920 1,955,216

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 11) 10,140 9,892
Trade creditors 1,559,042 1,297,469
Social security and other taxes 51,629 35,994
Other creditors 2,642 3,191
Directors' current accounts 21,778 29,275
Accruals and deferred income 250,857 176,396
1,896,088 1,552,217

10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans (see note 11) 14,808 24,948

11. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 10,140 9,892

Amounts falling due between two and five years:
Bank loans 14,808 24,948

12. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 580,513 585,117
Between one and five years 1,521,024 1,737,365
In more than five years 294,174 360,378
2,395,711 2,682,860

Hammond Produce Limited (Registered number: 03776727)

Notes to the Financial Statements - continued
for the Period 26 February 2023 to 2 March 2024

13. DEFERRED TAX
£   
Balance at 26 February 2023 (50,000 )
Balance at 2 March 2024 (50,000 )

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100,002 Ordinary £1 100,002 100,002
2,100,000 Preference share £1 2,100,000 2,100,000
2,200,002 2,200,002

15. RESERVES
Retained
earnings
£   

At 26 February 2023 (1,275,589 )
Profit for the period 165,419
At 2 March 2024 (1,110,170 )

16. RELATED PARTY DISCLOSURES

Nature of related parties
Hammond Produce Limited (the "Company") is a wholly-owned subsidiary of Grovetree Limited ("Grovetree"). Grovetree owns 90.4% of the ordinary shares in Phoenix Farm Group Limited ("PFGL"), which in turn owns all the shares in Phoenix Speciality Oils Limited ("PSOL"), Hammond Food Oils Limited ("HFOL") and Wharfe Valley Oils Limited ("WVOL"). Mr J W Hammond and Mr A E Hammond, directors and owners of the ordinary shares in Grovetree, also own all the ordinary shares in T Hammond Farms Limited ("THFL"), which farms on approximately 2,400 acres in Nottinghamshire, growing vegetables, potatoes, wheat, maize, barley and oilseed rape. In accordance with paragraph 33.1A of FRS102, no disclosure is given in relation to transactions between the Company and Grovetree or those subsidiaries that were wholly-owned by Grovetree throughout the period.

Sales made between related parties
The following sales have been made during the period:
- The Company has sold goods and services to PSOL and HFOL, amounting in total to £221,715 (2023: £173,439).
- The Company has also sold goods and services to THFL, amounting in total to £422,695 (2023: £447,450).
- PSOL and HFOL have sold goods and services to the Company, amounting in total to £4,345 (2023: £985).
- THFL has sold fresh produce and services to the Company amounting in total to £2,488,688 (2023: £2,131,388). THFL has also rented plant and sub-let certain buildings to the Company, charging a total rent of £291,260 (2023: £258,403).

Outstanding balances at 2 March 2024
The following intercompany balances existed as at 2 March 2024, deriving both from the above transactions and from transactions entered into in previous years:
- The Company was owed £44,078 (2023: £28,302) in total by PSOL and HFOL.
- The Company owed £253,602 to THFL (2023: £149,676).

17. ULTIMATE CONTROLLING PARTY

The directors consider that the ultimate controlling party of this company is its parent company Grovetree Limited.

Grovetree Limited is the company's controlling related party by virtue of its ownership of the entire issued share capital of Hammond Produce Limited. The ultimate controlling related parties of the company are the directors JW Hammond and AE Hammond by virtue of their respective shareholdings in Grovetree Limited.