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REGISTERED NUMBER: 02434505 (England and Wales)











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: S A Rackham
P A Rackham Jnr
S R Stuteley
Mrs J Williams



SECRETARY: S R Stuteley



REGISTERED OFFICE: Manor Farm
122 The Street
Bridgham
Norwich
Norfolk
NR16 2RX



REGISTERED NUMBER: 02434505 (England and Wales)



INDEPENDENT AUDITORS: Knights Lowe Limited
Eldo House
Kempson Way
Suffolk Business Park
Bury St Edmunds
Suffolk
IP32 7AR



BANKERS: Lloyds Bank Plc
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 44,818,826 44,634,163
Investments 5 5,291,150 5,287,365
Investment property 6 6,727,551 6,727,551
56,837,527 56,649,079

CURRENT ASSETS
Stocks 443,079 592,854
Debtors 7 2,468,115 2,354,357
Investments 8 53,932 55,165
Cash at bank 1,168,616 902,380
4,133,742 3,904,756
CREDITORS
Amounts falling due within one year 9 1,783,838 1,835,364
NET CURRENT ASSETS 2,349,904 2,069,392
TOTAL ASSETS LESS CURRENT LIABILITIES 59,187,431 58,718,471

CREDITORS
Amounts falling due after more than one
year

10

(19,116,820

)

(19,596,893

)

PROVISIONS FOR LIABILITIES 14 (2,159,145 ) (2,157,345 )
NET ASSETS 37,911,466 36,964,233

CAPITAL AND RESERVES
Called up share capital 15 113,776 113,776
Share premium 2,338,021 2,338,021
Fair value reserve 16 10,898,078 10,898,078
Retained earnings 24,561,591 23,614,358
SHAREHOLDERS' FUNDS 37,911,466 36,964,233

Paul Rackham Limited (Registered number: 02434505)

Balance Sheet - continued
31 December 2023


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

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 4 September 2024 and were signed on its behalf by:





S R Stuteley - Director


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 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 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
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Freehold property - not provided
Plant and machinery - 5 years straight line
Fixtures and fittings - 5 years straight line
Motor vehicles - 4 years straight line

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 12 (2022 - 12 ) .

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 44,110,451 2,472,318 46,582,769
Additions 217,670 223,553 441,223
Disposals - (280,329 ) (280,329 )
At 31 December 2023 44,328,121 2,415,542 46,743,663
DEPRECIATION
At 1 January 2023 - 1,948,606 1,948,606
Charge for year - 218,924 218,924
Eliminated on disposal - (242,693 ) (242,693 )
At 31 December 2023 - 1,924,837 1,924,837
NET BOOK VALUE
At 31 December 2023 44,328,121 490,705 44,818,826
At 31 December 2022 44,110,451 523,712 44,634,163

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 321,000
Transfer to ownership (321,000 )
At 31 December 2023 -
DEPRECIATION
At 1 January 2023 193,383
Charge for year 64,200
Transfer to ownership (257,583 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 127,617

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 5,342,238
Additions 3,785
At 31 December 2023 5,346,023
PROVISIONS
At 1 January 2023
and 31 December 2023 54,873
NET BOOK VALUE
At 31 December 2023 5,291,150
At 31 December 2022 5,287,365

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Property Recycling Group Ltd
Registered office: England & Wales
Nature of business: Property trading
%
Class of shares: holding
Ordinary 94.82
2023 2022
£    £   
Aggregate capital and reserves 25,247,872 24,547,772
Profit for the year 1,060,888 725,232

6. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 January 2023
and 31 December 2023 6,727,551
NET BOOK VALUE
At 31 December 2023 6,727,551
At 31 December 2022 6,727,551

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 558,125 743,347
Amounts owed by group undertakings 79,831 76,570
Amounts owed by associates 78,799 78,799
Other debtors 1,751,360 1,455,641
2,468,115 2,354,357

8. CURRENT ASSET INVESTMENTS
2023 2022
£    £   
Listed investments 626 1,859
Single farm payment entitlements 53,306 53,306
53,932 55,165

9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 12) - 13,000
Trade creditors 119,732 109,738
Amounts owed to group undertakings 1,483 1,483
Corporation tax 202,076 216,682
Social security and other taxes 11,241 10,340
VAT 139,177 120,512
Other creditors 166,082 551,287
Accruals and deferred income 1,144,047 812,322
1,783,838 1,835,364

10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Bank loans (see note 11) 9,200,000 9,900,000
Amounts owed to group undertakings 9,916,820 9,696,893
19,116,820 19,596,893

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 9,200,000 9,900,000

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 - 13,000

Non-cancellable operating leases
2023 2022
£    £   
Within one year 566 565
Between one and five years 848 1,414
1,414 1,979

13. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 9,200,000 9,900,000
Hire purchase contracts - 13,000
9,200,000 9,913,000

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 294,200 289,400
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 2,157,345
Provided during year 1,800
Recognised on revaluation
Balance at 31 December 2023 2,159,145

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
113,776 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.

James Knights ACA BSc (Senior Statutory Auditor)
for and on behalf of Knights Lowe Limited

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
£    £   
P A Rackham
Balance outstanding at start of year 893,604 873,524
Amounts advanced 95,374 20,080
Amounts repaid (77,368 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 911,610 893,604

P A Rackham Jnr
Balance outstanding at start of year 2,946 (1,182 )
Amounts advanced 121,449 49,257
Amounts repaid (63,704 ) (45,129 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 60,691 2,946

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.