REGISTERED NUMBER: |
Audited Financial Statements |
for the Year Ended 31 December 2023 |
for |
Paul Rackham Limited |
REGISTERED NUMBER: |
Audited Financial Statements |
for the Year Ended 31 December 2023 |
for |
Paul Rackham Limited |
Paul Rackham Limited (Registered number: 02434505) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 4 |
Paul Rackham Limited |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Eldo House |
Kempson Way |
Suffolk Business Park |
Bury St Edmunds |
Suffolk |
IP32 7AR |
BANKERS: |
35 King Street |
Thetford |
Norfolk |
IP24 2AX |
Paul Rackham Limited (Registered number: 02434505) |
Balance Sheet |
31 December 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investments | 5 |
Investment property | 6 |
CURRENT ASSETS |
Stocks |
Debtors | 7 |
Investments | 8 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 9 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
10 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 14 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Share premium |
Fair value reserve | 16 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Paul Rackham Limited (Registered number: 02434505) |
Balance Sheet - continued |
31 December 2023 |
In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
Paul Rackham Limited (Registered number: 02434505) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Paul Rackham Limited is a |
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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from those standards. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue is recognised as follows: |
i) | Rental and similar income is accrued on a time basis in the period to which it relates by reference to underlying contracts. |
ii) | Income from the sale of land and buildings is recognised at the date of unconditional exchange of contract. |
iii) | Livestock and produce revenue is recognised at the point legal title to stock passes to the customer, normally at collection or delivery. |
iv) | Interest income is accrued on a time basis by reference to the underlying capital sum and applicable interest rate. |
v) | Dividend income from investments is recognised at the date of receipt. |
Paul Rackham Limited (Registered number: 02434505) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
The measurement basis for freehold land and buildings is at fair value, on a revaluation basis. |
Plant, machinery and all other tangible fixed assets are held at historic cost, less accumulated depreciation.The directors estimate residual values on an asset by asset basis and apply depreciation accordingly. |
Freehold land and buildings is held at current fair value. During the year a full review has been made of non-investment freehold property and the directors considered the values for all properties and have considered the valuation for each individual asset and that the revaluation method is the most appropriate recognition method going forward. Therefore these are recognised at current fair value and the directors have valued these land and buildings for this purpose. |
The directors consider freehold land and buildings on a group basis for impairment, and should the recoverable amount be below valuation or cost an impairment review is carried out and recognised as required.The position is reviewed annually. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
Investment property |
Investment property held to earn rental income and/or capital appreciation is included in the balance sheet at fair value where such value can be measured reliably without undue cost or effort on an ongoing basis. Fair value adjustments are taken to the profit and loss account.The property is not depreciated which is a treatment contrary to the Companies Act 2006 however in the opinion of the Directors the policy adopted by the Company provides a true and fair view. |
The majority of such properties are on the main farming estate and are thus difficult to independently value. In accordance with Section 16 of FRS 102 such properties are accounted for under the principles applying to property plant and equipment as described above. |
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 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. |
Paul Rackham Limited (Registered number: 02434505) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
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 |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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. |
Derivative financial instruments |
The company uses derivative financial instruments to reduce exposure to interest rate movements. The company does not hold or issue derivative financial instruments for speculative reasons. |
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in the profit and loss immediately unless the derivative is designated and effective as the hedging instrument, in which event the timing of the recognition in the profit or loss depends on the nature of the hedge relationship. |
The best evidence of fair value is quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique. |
Current asset investments |
Investments comprise current asset investments which are originally recognised at cost. Where the fair value can be reliably determined, the investments are subsequently stated at fair value at each balance sheet date with change to values being recognised in the profit and loss account. Those current investments where fair values cannot be reliably determined are stated at cost. |
Fair value reserve |
It is the company's policy to transfer to the fair value reserve all non-distributable fair value movements recognised in the profit and loss account together with deferred taxation thereon. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
Paul Rackham Limited (Registered number: 02434505) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 January 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Cost or valuation at 31 December 2023 is represented by: |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
Valuation in 2019 | 11,975,030 | - | 11,975,030 |
Cost | 32,353,091 | 2,415,542 | 34,768,633 |
44,328,121 | 2,415,542 | 46,743,663 |
If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 32,353,091 | 32,135,418 |
Aggregate depreciation | 2,077,534 | 2,077,534 |
Value of land in freehold land and buildings | 30,275,557 | 30,057,884 |
Paul Rackham Limited (Registered number: 02434505) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | TANGIBLE FIXED ASSETS - continued |
Freehold land and buildings were valued on an open market basis on 30 June 2019. This resulted in a revaluation of £11,975,030. |
The directors have considered the market value of the remaining assets not included in this valuation and consider the original cost to be the current valuation. |
Freehold land and buildings additions are included at cost, this being the recent cost and being the best estimate of current open market value. |
The directors have considered the overall and individual assets included in freehold land and buildings to be the current fair value on an open market basis and no formal revaluation has been conducted in the year. |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
etc |
£ |
COST OR VALUATION |
At 1 January 2023 |
Transfer to ownership | (321,000 | ) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Transfer to ownership | (257,583 | ) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Paul Rackham Limited (Registered number: 02434505) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
PROVISIONS |
At 1 January 2023 |
and 31 December 2023 | 54,873 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
6. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Paul Rackham Limited (Registered number: 02434505) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
6. | INVESTMENT PROPERTY - continued |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2016 | 535,453 |
Valuation in 2017 | 144,537 |
Valuation in 2019 | 106,713 |
Cost | 5,940,848 |
6,727,551 |
7. | DEBTORS |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts owed by associates |
Other debtors |
8. | CURRENT ASSET INVESTMENTS |
2023 | 2022 |
£ | £ |
Listed investments | 626 | 1,859 |
Single farm payment entitlements |
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 12) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
VAT | 139,177 | 120,512 |
Other creditors |
Accruals and deferred income |
10. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 11) |
Amounts owed to group undertakings |
Paul Rackham Limited (Registered number: 02434505) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
There is a revolving bank loan facility until 14 October 2024 of £12 million which can be drawn down on demand. This has been reduced to £8 million on 9 May 2024 and negotiations are in progress regarding the renewal of the bank loan facility. |
12. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
13. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Hire purchase contracts | - | 13,000 |
Bank borrowings are secured by way of a Debenture incorporating a charge over commercial freehold property at Manor Farm, Bridgham, Norwich, Norfolk. |
On 14 October 2019, the Company entered into a loan facility of £12,000,000 with Lloyds Banking Group, secured by legal charges over Manor Farm, Bridgham which is an Omnibus Guarantee and Set-Off Agreement between the company and Property Recycling Group Limited. The loan facility has been reduced on 9 May 2024 to £8,000,000 and negotiations are in progress regarding the renewal of the bank loan. |
Paul Rackham Limited (Registered number: 02434505) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
14. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other timing differences | 28,600 | 31,600 |
Deferred tax on revaluations | 1,836,345 | 1,836,345 |
2,159,145 | 2,157,345 |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Provided during year |
Recognised on revaluation |
Balance at 31 December 2023 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 113,776 | 113,776 |
16. | RESERVES |
Share premium account |
This reserve records the amount above the nominal value received for shares sold, less transaction costs. |
Fair value reserve - Non-distributable |
This reserve is used to record movements in the fair value of investment property and other traded investments, which as unrealised is not distributable. |
17. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
18. | PENSION COMMITMENTS |
The company operates a defined contribution scheme for its employees. The scheme and its assets are held by independent managers. |
The pension charge represents contributions due from the company and amount to £7,288 (2022: £6,662). There were unpaid pension contributions at the year end showing in other creditors of £1,291 (2022: £1,169). |
Paul Rackham Limited (Registered number: 02434505) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
19. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 December 2023 and 31 December 2022: |
2023 | 2022 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Directors advances accrue interest at HMRC approved rates. |
20. | HOLDING COMPANY AND ULTIMATE CONTROLLING PARTY |
The company's parent company is Rackham Group Limited, registered at the same address as the company. |
The ultimate controlling party is considered to be the extended Rackham family with no single majority shareholder in Rackham Group Limited. |