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REGISTERED NUMBER: 05388109 (England and Wales)











Directors' Report and

Audited Consolidated Financial Statements

for the Year Ended 31 December 2023

for

Rackham Group Ltd

Rackham Group Ltd (Registered number: 05388109)






Contents of the Consolidated Financial Statements
for the Year Ended 31 December 2023




Page

Company Information 1

Directors' Report 2

Report of the Independent Auditors 4

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Notes to the Consolidated Financial Statements 15


Rackham Group Ltd

Company Information
for the Year Ended 31 December 2023







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





SECRETARY: S R Stuteley





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





REGISTERED NUMBER: 05388109 (England and Wales)





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

Rackham Group Ltd (Registered number: 05388109)

Directors' Report
for the Year Ended 31 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

PRINCIPAL ACTIVITIES
The principal activities of the group in the year under review were those of agriculture, property investment and property dealing and development.

DIVIDENDS
Interim dividends were paid during the year on each class of share at different rates as follows:

Share class Amount per share
"A" £nil
"B" £nil
"C" £5.419
"D" £4.581

In aggregate the amount paid during the year was £383,883 (2022: £378,185).

The directors do not propose a final dividend. (2022: nil).

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

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

POLITICAL DONATIONS AND EXPENDITURE
Donations made in the year totalling £500 (2022: £1,045) all related to charity donations.

There were no donations made in respect of political parties.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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.


Rackham Group Ltd (Registered number: 05388109)

Directors' Report
for the Year Ended 31 December 2023

DIRECTORS' RESPONSIBILITIES STATEMENT - continued
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS
The auditors, Knights Lowe Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S R Stuteley - Director


4 September 2024

Report of the Independent Auditors to the Members of
Rackham Group Ltd

Opinion
We have audited the financial statements of Rackham Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 group's and the parent 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 Directors' Report, 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Directors' Report has been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Rackham Group Ltd


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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; or
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report.

Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement set out on pages two and 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Rackham Group Ltd


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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with the director and
other management, and from our commercial knowledge and experience of the companies operating sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the
financial statements or the operations of the company, including the Companies Act 2006, taxation legislation,
data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries
of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained
alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their
knowledge of actual, suspected and alleged fraud;tor;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
regulations;

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative
of potential bias;
-
investigated the rationale behind significant or unusual transactions;

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.

Report of the Independent Auditors to the Members of
Rackham Group Ltd


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.




James Knights ACA BSc (Senior Statutory Auditor)
for and on behalf of Knights Lowe Limited
Eldo House
Kempson Way
Suffolk Business Park
Bury St Edmunds
Suffolk
IP32 7AR

12 September 2024

Rackham Group Ltd (Registered number: 05388109)

Consolidated
Income Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 4 5,422,259 5,210,045

Cost of sales 989,337 1,333,203
GROSS PROFIT 4,432,922 3,876,842

Administrative expenses 1,701,150 1,152,968
OPERATING PROFIT 6 2,731,772 2,723,874

Interest receivable and similar income 7 704,636 367,907
3,436,408 3,091,781
(Loss)/gain on revaluation of investments (1,232 ) (2,233 )
3,435,176 3,089,548

Interest payable and similar charges 8 676,896 347,226
PROFIT BEFORE TAXATION 2,758,280 2,742,322

Tax on profit 9 709,309 587,881
PROFIT FOR THE FINANCIAL YEAR 2,048,971 2,154,441
Profit attributable to:
Owners of the parent 1,993,744 2,128,118
Non-controlling interests 55,227 26,323
2,048,971 2,154,441

Rackham Group Ltd (Registered number: 05388109)

Consolidated
Other Comprehensive Income
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 2,048,971 2,154,441


OTHER COMPREHENSIVE INCOME
Freehold property revaluation
Deferred tax on revaluation
Fixed asset investment
Income tax relating to other comprehensive
income

-

-
OTHER COMPREHENSIVE INCOME FOR THE
YEAR, NET OF INCOME TAX

-

-
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

2,048,971

2,154,441

Total comprehensive income attributable to:
Owners of the parent 1,993,744 2,128,118
Non-controlling interests 55,227 26,323
2,048,971 2,154,441

Rackham Group Ltd (Registered number: 05388109)

Consolidated Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 12 (5,424,385 ) (5,424,385 )
Tangible assets 13 44,669,745 44,487,189
Investments 14 - -
Investment property 15 6,727,551 6,727,551
45,972,911 45,790,355

CURRENT ASSETS
Stocks 16 7,227,808 6,900,781
Debtors 17 11,184,857 10,897,396
Investments 18 53,932 55,165
Cash at bank 1,419,213 1,424,234
19,885,810 19,277,576
CREDITORS
Amounts falling due within one year 19 2,203,372 2,357,400
NET CURRENT ASSETS 17,682,438 16,920,176
TOTAL ASSETS LESS CURRENT LIABILITIES 63,655,349 62,710,531

CREDITORS
Amounts falling due after more than one
year

20

(9,200,000

)

(9,900,000

)

PROVISIONS FOR LIABILITIES 23 (2,159,145 ) (2,157,872 )
NET ASSETS 52,296,204 50,652,659

CAPITAL AND RESERVES
Called up share capital 24 113,776 113,776
Share premium 25 2,338,021 2,338,021
Fair value reserve 25 13,053,281 13,053,281
Retained earnings 25 35,481,153 33,860,832
SHAREHOLDERS' FUNDS 50,986,231 49,365,910

NON-CONTROLLING INTERESTS 26 1,309,973 1,286,749
TOTAL EQUITY 52,296,204 50,652,659

Rackham Group Ltd (Registered number: 05388109)

Consolidated Balance Sheet - continued
31 December 2023


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

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


Rackham Group Ltd (Registered number: 05388109)

Company Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 12 - -
Tangible assets 13 - -
Investments 14 2,463,567 2,463,567
Investment property 15 - -
2,463,567 2,463,567

CURRENT ASSETS
Debtors 17 1,483 1,483
NET CURRENT ASSETS 1,483 1,483
TOTAL ASSETS LESS CURRENT LIABILITIES 2,465,050 2,465,050

CAPITAL AND RESERVES
Called up share capital 24 113,776 113,776
Share premium 2,338,021 2,338,021
Retained earnings 13,253 13,253
SHAREHOLDERS' FUNDS 2,465,050 2,465,050

Company's profit for the financial year 383,883 378,170

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

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


Rackham Group Ltd (Registered number: 05388109)

Consolidated Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Share
capital earnings premium
£    £    £   
Balance at 1 January 2022 113,776 32,108,469 2,338,021

Changes in equity
Increase in share capital - 2,440 -
Dividends - (378,195 ) -
Total comprehensive income - 2,128,118 -
Balance at 31 December 2022 113,776 33,860,832 2,338,021

Changes in equity
Increase in share capital - 10,460 -
Dividends - (383,883 ) -
Total comprehensive income - 1,993,744 -
Balance at 31 December 2023 113,776 35,481,153 2,338,021
Fair
value Non-controlling Total
reserve Total interests equity
£    £    £    £   
Balance at 1 January 2022 13,053,281 47,613,547 1,282,741 48,896,288

Changes in equity
Increase in share capital - 2,440 (3,340 ) (900 )
Dividends - (378,195 ) (18,975 ) (397,170 )
Total comprehensive income - 2,128,118 26,323 2,154,441
Balance at 31 December 2022 13,053,281 49,365,910 1,286,749 50,652,659

Changes in equity
Increase in share capital - 10,460 (14,240 ) (3,780 )
Dividends - (383,883 ) (17,763 ) (401,646 )
Total comprehensive income - 1,993,744 55,227 2,048,971
Balance at 31 December 2023 13,053,281 50,986,231 1,309,973 52,296,204

Rackham Group Ltd (Registered number: 05388109)

Company Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 January 2022 113,776 13,266 2,338,021 2,465,063

Changes in equity
Dividends - (378,183 ) - (378,183 )
Total comprehensive income - 378,170 - 378,170
Balance at 31 December 2022 113,776 13,253 2,338,021 2,465,050

Changes in equity
Dividends - (383,883 ) - (383,883 )
Total comprehensive income - 383,883 - 383,883
Balance at 31 December 2023 113,776 13,253 2,338,021 2,465,050

Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2023

1. STATUTORY INFORMATION

Rackham Group Ltd 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 General 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.

Basis of consolidation
The consolidated financial statements incorporate the results of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December each year. Control is achieved where the Company has the power to govern the financial and operating policies of the investee entity. Minority interest are accounted for in accordance with section 9 of Financial Reporting Standard 102 whereby the results and net assets of an investee are wholly consolidated and minority interests are disclosed on the profit and loss account and balance sheet in proportion to the share of the equity held in the investee.
Upon acquisition, adjustments are made as required to subsidiaries financial statements so as to align accounting policies with those of the Group. Goodwill is recognised and treated as stated below.
All intra-group transactions, balances, income and expenses are eliminated on consolidation.

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover
Turnover represents amounts receivable derived from the Group's ordinary activities, net of discounts and excluding value added tax. Revenue is recognised as follows:
Rental and similar income is accrued on a time basis in the period to which it relates by reference to underlying contracts.
Income from the sale of land and buildings is recognised at the date of unconditional exchange of contract.
Livestock and produce revenue is recognised at the point legal title to stock passes to the customer, normally at collection or delivery.
Interest income is accrued on a time basis by reference to the underlying capital sum and applicable interest rate.
Dividend income from investments is recognised at the date of receipt.

Goodwill
Goodwill arising on consolidation is included in the accounts based on the fair value of net assets of the subsidiary acquired at the date of acquisition. Amortisation is charged over the estimated life of goodwill.
Negative goodwill is written back to the profit and loss account upon disposal of the underlying investment in the subsidiary.

Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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.

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.

For stock properties, cost comprises the cost of acquisition of property, professional and planning fees and construction and infrastructure costs, but excludes overheads. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing and selling the properties.


Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

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 group operates a defined contribution pension scheme. Contributions payable to the group'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 a 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.

Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group's accounting policies, which are described below, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimated and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised if revision affects only that and future periods.

The following are critical judgements including those involving estimations, that the directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Depreciation of tangible fixed assets - property, plant and machinery
Tangible fixed assets are recognised at cost and depreciated on the basis appropriate to charge to the profit and loss the economic consumption of those assets during the accounting period. The charge is calculated as described below and is based on the directors knowledge of the reduction in the residual value of trading assets and estate property on average over the investment cycle of each class of asset. The rates of depreciation are kept under review such that assets are written down to residual value at the end of the economic lives of the assets.

Revaluation of investment properties
The Group carries investment properties at fair value, with changes in fair value being recognised in the profit or loss. The Directors have determined fair values on a property by property basis at open market value based on assumptions on expected yield given the location and nature of the property comparable to other known sales or potential sales in the region. Where considered appropriate, the directors seek formal or informal valuations by land and estate agents.

4. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the group.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Farming income 1,536,349 1,823,361
Property development and sales - 30,000
Serviced warehousing income 1,494,607 1,280,054
Letting and lease income 1,874,388 1,651,805
Other operating income 516,915 424,825
5,422,259 5,210,045

5. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2022 - 12 ) .

The average number of employees by undertakings that were proportionately consolidated during the year was 3 (2022 - 3 ) .

Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

6. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 156,831 202,861
Depreciation - assets on hire purchase contracts 64,200 64,200
Audit fees for group companies 36,697 35,542
Other non- audit services 9,483 7,243

7. INTEREST RECEIVABLE AND SIMILAR INCOME
2023 2022
£    £   
Deposit account interest 50 2
Bank account interest - 347,825
Other interest receivable 704,586 20,080
704,636 367,907

8. INTEREST PAYABLE AND SIMILAR CHARGES
2023 2022
£    £   
Bank loan interest payable 676,896 347,226

9. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 708,036 561,755

Deferred tax 1,273 26,126
Tax on profit 709,309 587,881

UK corporation tax has been charged at 23.50 % (2022 - 19 %).

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2023.


Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

9. TAXATION - continued
2022
Gross Tax Net
£    £    £   
Freehold property revaluation
Deferred tax on revaluation
Fixed asset investment
- - -

10. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


11. DIVIDENDS

Interim dividends were paid during the year on each class of share at different rates as follows:

Share class Amount per share
"A" £nil
"B" £nil
"C" £5.419
"D" £4.581


In aggregate the amount paid during the year was £383,883 (2022: £378,183).

In addition, a subsidiary of the group paid £17,763 to minority interests (2022: £18,975)
After the balance sheet date and before the financial statements were approved, the directors proposed and paid interim dividends in respect of the year to 31 December 2024 of:

Share class Amount per share
"A" £nil
"B" £nil
"C" £0.573
"D" £2.290

being a total distribution of £132,112 (2022: £264,225).

12. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 (5,424,385 )
NET BOOK VALUE
At 31 December 2023 (5,424,385 )
At 31 December 2022 (5,424,385 )

Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

13. TANGIBLE FIXED ASSETS

Group
Plant and
Land and machinery
buildings etc Totals
£    £    £   
COST OR VALUATION
At 1 January 2023 43,961,369 2,493,988 46,455,357
Additions 217,670 223,553 441,223
Disposals - (280,329 ) (280,329 )
At 31 December 2023 44,179,039 2,437,212 46,616,251
DEPRECIATION
At 1 January 2023 - 1,968,168 1,968,168
Charge for year - 221,031 221,031
Eliminated on disposal - (242,693 ) (242,693 )
At 31 December 2023 - 1,946,506 1,946,506
NET BOOK VALUE
At 31 December 2023 44,179,039 490,706 44,669,745
At 31 December 2022 43,961,369 525,820 44,487,189

Cost or valuation at 31 December 2023 is represented by:

Plant and
Land and machinery
buildings etc Totals
£    £    £   
Valuation in 2019 11,975,031 - 11,975,031
Cost 32,204,008 2,437,212 34,641,220
44,179,039 2,437,212 46,616,251

Freehold land and buildings were valued on an open market basis on 30 June 2019. This resulted in a revaluation of £11,975,031.

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.

Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

13. TANGIBLE FIXED ASSETS - continued

Group

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

14. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 2,463,567
NET BOOK VALUE
At 31 December 2023 2,463,567
At 31 December 2022 2,463,567

Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

14. FIXED ASSET INVESTMENTS - continued

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

Subsidiaries

Paul Rackham Limited
Registered office: Manor Farm Bridgham Norwich Norfolk
Nature of business: Agriculture and property investment
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 37,911,466 36,964,233
Profit for the year 1,331,116 1,871,814

Property Recycling Group Limited
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


15. INVESTMENT PROPERTY

Group
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

Fair value at 31 December 2023 is represented by:
£   
Valuation in 2016 614,000
Valuation in 2017 144,537
Valuation in 2019 106,713
Cost 5,862,301
6,727,551

Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

16. STOCKS

Group
2023 2022
£    £   
Livestock and valuation 443,079 592,854
Property stock 6,784,729 6,307,927
7,227,808 6,900,781

17. DEBTORS

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year:
Trade debtors 4,700,249 791,154 - -
Bad Debt Provision (120,451 ) (19,688 ) - -
Amounts owed by group undertakings 3,331 - 1,483 1,483
Amounts owed by associates 78,799 78,799 - -
Other debtors 1,475,509 1,302,415 - -
Prepayments and accrued income 461,344 333,611 - -
6,598,781 2,486,291 1,483 1,483

Amounts falling due after more than one year:
Trade debtors 4,411,105 8,411,105 - -
Amounts owed by group undertakings 174,971 - - -
4,586,076 8,411,105 - -

Aggregate amounts 11,184,857 10,897,396 1,483 1,483

Included in the amount of debtors due in more than one year is £4,411,105 (2022: £8,411,105) of deferred consideration in relation to a sale of a site two years ago. This amount becomes due on 30th August 2026.

18. CURRENT ASSET INVESTMENTS

Group
2023 2022
£    £   
Listed investments 626 1,859
Single farm payment entitlements 53,306 53,306
53,932 55,165

Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

19. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
£    £   
Hire purchase contracts - 13,000
Trade creditors 134,402 113,852
Amounts owed to group undertakings - 3,307
Corporation tax 385,778 343,425
Social security and other taxes 11,241 10,340
VAT 106,496 118,362
Other creditors 166,163 551,287
Other creditors - 87,900
Accruals and deferred income 1,399,292 1,115,927
2,203,372 2,357,400

20. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2023 2022
£    £   
Bank loans (see note 21) 9,200,000 9,900,000

21. LOANS

An analysis of the maturity of loans is given below:

Group
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.

Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

22. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Bank loans 9,200,000 9,900,000

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.

23. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 294,200 289,400
Other timing differences 28,600 32,127
Deferred tax on revaluations 1,836,345 1,836,345
2,159,145 2,157,872

Group
Deferred
tax
£   
Balance at 1 January 2023 2,157,872
Provided during year 1,273
Recognised on revaluation
Balance at 31 December 2023 2,159,145

24. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
113,776 Ordinary £1 113,776 113,776

Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

25. 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 reserve
This reserve is used to record movements in the fair value of investment property and other traded investments, which as unrealised is not distributable

26. NON-CONTROLLING INTERESTS

2023 2022
£    £   
At 1 January 1,286,749 1,282,741
Acquisition of additional interest in Property Recycling Group Limited (14,240 ) (3,340 )
Total comprehensive income attributable to NCI 55,227 26,323
Dividend payable to NCI (17,763 ) (18,975 )
1,309,972 1,286,749

27. PENSION COMMITMENTS

The group operates a defined contribution scheme on behalf of its employees. The scheme and its assets are held by independent managers.

The pension charge represents contributions due from the group and amount to £6,549 (2022: £6,380). There were unpaid pension contributions at the year end showing in other creditors of £1,095 (2022: £1,764).

28. 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

The company is charging interest on overdrawn directors' accounts at HMRC approved rates.

Rackham Group Ltd (Registered number: 05388109)

Notes to the Consolidated Financial Statements - continued
for the Year Ended 31 December 2023

29. RELATED PARTY DISCLOSURES

During the year costs of £nil were recharged to Paul Rackham Developments Limited, a company under common control but outside the group (2022: £nil).

The balance owed by Paul Rackham Developments Limited at the year end was £78,825 (2022: £78,799).

30. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is considered to be the extended Rackham family with no single majority shareholder.