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REGISTERED NUMBER: 03396683 (England and Wales)















LINCOLNSHIRE HERBS LTD

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3 to 4

Report of the Independent Auditors 5 to 7

Income Statement 8

Other Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12 to 19


LINCOLNSHIRE HERBS LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: M Mattsson
P A Bailey





SECRETARY: P Rangaard





REGISTERED OFFICE: Spalding Road
Bourne
Lincolnshire
PE10 0AT





REGISTERED NUMBER: 03396683 (England and Wales)





AUDITORS: Duncan & Toplis Audit Limited, Statutory Auditor
Enterprise Way
Pinchbeck
Spalding
Lincolnshire
PE11 3YR

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their strategic report for the year ended 31 December 2023.

REVIEW OF BUSINESS
The Company is involved in the growing and selling of 'living' culinary pot herbs and the growing, preparing and packing of cut herbs. These products are sold into the retail sector.

Lincolnshire Herbs has continued to gain additional business during 2023, resulting in an increase in turnover of 30% year on year.

The business invested £1.7m during 2023 to install LED lighting throughout the glasshouse facility to provide a more energy efficient and cost-effective lighting source, and ultimately to produce a better product for the consumer. This project was completed during the summer of 2023 and the lights were fully operational for the winter of 2023.

Key performance indicators

31 December 2023 31 December 2022 31 December 2021

Turnover £18,443,000 £14,174,000 £13,990,000
Gross Profit £333,000 (£12,000) (£32,000)
Profit/(Loss) before Tax (£585,000) (£665,000) (£661,000)

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the company's strategy are subject to a number of risks. Risks are formally reviewed by the Board and appropriate processes put in place to monitor and mitigate them. The key risks affecting the Company are set out below.

Customers
In order to reduce the potential loss of custom the company values integrity and seeks to conduct its business with professionalism and aspires to provide excellent service in the eyes of its customers. In order to do so the business ensures it is closely aligned to all its customers' objectives and is at the forefront of developing supply chain value for those customers.

Commodity Risk
As a fresh produce supplier the company is also exposed to the vagaries of the climate and consequent impacts upon the price and availability of fresh produce. Consequently the Company operates a variety of key mitigating tools to reduce exposure to commodity risk.

Foreign Exchange Risk
The Company imports produce from around the World and is exposed to fluctuations in the foreign exchange rate. Impacts of currency fluctuation are regularly reviewed by the Board and a Euro bank account in maintained.

Natural Resources
A further key risk is the environment and the consumption of natural resources. The Company respects the environment in which it operates and works to conserve the natural resources and enhance the natural environment. The Company also recognises inflationary pressures arising from the fossil fuel prices and commodity shortages and works closely with customers and suppliers to mitigate this through supply chain efficiencies.

ON BEHALF OF THE BOARD:





P A Bailey - Director


19 March 2024

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of growing and selling of herbs.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

FUTURE DEVELOPMENTS
It is anticipated that during 2023 the business will continue to be innovative and continue developing sustainable growing techniques. We are committed to replace all the outdated sodium lighting with LED units by mid-2023.

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

M Mattsson
P A Bailey

Other changes in directors holding office are as follows:

R P H Grundy - resigned 14 April 2023

GOING CONCERN
At the balance sheet date, the company's bank finance is included within amounts due within one year as it was due for repayment post year-end (see note 15). This has therefore resulted in a net current liability position of £1,760,637. The directors will continue to review the banking facilities on an annual basis. Written confirmation of continued support from the group has been received for at least 12 months from the signing of these financial statements, with the UK seen as a key long term market for the group. The group have the strength and resources to supply such a guarantee. Therefore, having reviewed budgets and contingency plans the directors have concluded that there is no material uncertainty to the going concern status of the company.

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.

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


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:



P A Bailey - Director


19 March 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LINCOLNSHIRE HERBS LTD

Opinion
We have audited the financial statements of Lincolnshire Herbs Ltd (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, 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 31 December 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the 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
LINCOLNSHIRE HERBS LTD


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Food Safety regulations and Employment laws.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the external food safety audits conducted within the year for any evidence of non-compliance, in addition to an assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material
misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LINCOLNSHIRE HERBS 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.




Alistair Main FCA (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor
Enterprise Way
Pinchbeck
Spalding
Lincolnshire
PE11 3YR

19 March 2024

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 18,442,539 14,174,394

Cost of sales 18,109,620 14,186,000
GROSS PROFIT/(LOSS) 332,919 (11,606 )

Administrative expenses 1,533,948 1,114,785
(1,201,029 ) (1,126,391 )

Other operating income 789,577 541,636
OPERATING LOSS 6 (411,452 ) (584,755 )

Interest payable and similar expenses 7 (172,666 ) (80,878 )
LOSS BEFORE TAXATION (584,118 ) (665,633 )

Tax on loss 8 (61,497 ) -
LOSS FOR THE FINANCIAL YEAR (522,621 ) (665,633 )

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

LOSS FOR THE YEAR (522,621 ) (665,633 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR (522,621 ) (665,633 )

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 8,672,098 7,452,107

CURRENT ASSETS
Stocks 10 457,652 577,966
Debtors 11 2,824,486 1,981,775
Biological assets 12 195,136 162,712
Cash at bank and in hand 426,717 289,663
3,903,991 3,012,116
CREDITORS
Amounts falling due within one year 13 5,664,628 4,305,892
NET CURRENT LIABILITIES (1,760,637 ) (1,293,776 )
TOTAL ASSETS LESS CURRENT LIABILITIES 6,911,461 6,158,331

CREDITORS
Amounts falling due after more than one year 14 (3,050,705 ) (1,713,457 )

PROVISIONS FOR LIABILITIES 18 (519,286 ) (580,783 )
NET ASSETS 3,341,470 3,864,091

CAPITAL AND RESERVES
Called up share capital 19 1,200,000 1,200,000
Capital contribution 20 800,000 800,000
Retained earnings 20 1,341,470 1,864,091
SHAREHOLDERS' FUNDS 3,341,470 3,864,091

The financial statements were approved by the Board of Directors and authorised for issue on 19 March 2024 and were signed on its behalf by:





P A Bailey - Director


LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Capital Total
capital earnings contribution equity
£    £    £    £   
Balance at 1 January 2022 1,200,000 2,529,724 800,000 4,529,724

Changes in equity
Total comprehensive income - (665,633 ) - (665,633 )
Balance at 31 December 2022 1,200,000 1,864,091 800,000 3,864,091

Changes in equity
Total comprehensive income - (522,621 ) - (522,621 )
Balance at 31 December 2023 1,200,000 1,341,470 800,000 3,341,470

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

Lincolnshire Herbs 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 Company Information page.

2. ACCOUNTING POLICIES

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

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Report 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.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern
At the balance sheet date, the company's bank finance is included within amounts due within one year as it was due for repayment post year-end (see note 15). This has therefore resulted in a net current liability position of £1,760,637. The directors will continue to review the banking facilities on an annual basis. Written confirmation of continued support from the group has been received for at least 12 months from the signing of these financial statements, with the UK seen as a key long term market for the group. The group have the strength and resources to supply such a guarantee. Therefore, having reviewed budgets and contingency plans the directors have concluded that there is no material uncertainty to the going concern status of the company.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions 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;
- the requirements of paragraph 33.7;
- the requirements of paragraph 33.1A.

Turnover
Turnover is the total amount receivable by the company for goods supplied and services provided, excluding VAT. Revenue from the sale of goods and services is recognised when significant risks and benefits of ownership of the product have transferred to the buyer. This is usually on delivery to the customer.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Land and buildings- Nil, 5 years, 10 years, 30 years
Plant and machinery etc.- 3 years, 5 years, 10 years, 15 years, 20 years

Stocks
Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised within the profit and loss account in other administrative expenses.

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The company has adopted Sections 11 and 12 of FRS 102 Section 1A in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cashflows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price,unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are measured at amortised cost using the effective interest method.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position 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 result.

Employee benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Biological assets
Biological assets can be categorised as short or long term depending upon the product lifecycle of the asset concerned and its output in the form or harvested crops for sale.

Those biological assets which will produce more than one crop over a number of years are classified as long term biological assets whilst those which will produce a single crop with the asset either being wasted or sold as part of the product offering are classified as short term.

Short term biological assets consist of potted herbs which are growing on the lines as at the year end, given that we expect these assets to have been harvested from the lines and sold within 12 months of the year end. Short-term biological assets are valued using the cost model.

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Tax
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between when taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

3. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

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

2023 2022
£    £   
Potted Herbs 5,698,307 5,752,251
Cut Herbs 12,744,232 8,422,143
18,442,539 14,174,394

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,858,799 3,209,549
Social security costs 331,949 291,721
Other pension costs 112,548 86,845
4,303,296 3,588,115

The average number of employees during the year was as follows:
2023 2022

Management and administration 38 10
Production 110 123
148 133

5. DIRECTORS' EMOLUMENTS
2023 2022
£    £   
Directors' remuneration 216,716 244,985
Directors' pension contributions to money purchase schemes 46,729 28,216

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

5. DIRECTORS' EMOLUMENTS - continued

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

Money purchase schemes 1 3

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 127,356 96,862
Pension contributions to money purchase schemes 45,520 3,586

6. OPERATING LOSS

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

2023 2022
£    £   
Depreciation - owned assets 750,309 689,783
Auditors' remuneration 16,145 24,691
Auditors' remuneration for non audit work (4,460 ) 5,220
Foreign exchange differences (28,258 ) (28,300 )

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 172,666 80,878

8. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
2023 2022
£    £   
Deferred tax (61,497 ) -
Tax on loss (61,497 ) -

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

8. TAXATION - continued

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

2023 2022
£    £   
Loss before tax (584,118 ) (665,633 )
Loss multiplied by the standard rate of corporation tax in the UK of 25% (2022 -
19%)

(146,030

)

(126,470

)

Effects of:
Capital allowances in excess of depreciation (117,926 ) -
Depreciation in excess of capital allowances - 131,059
Adjustments to tax charge in respect of previous periods (2,871 ) (1,699 )
Expenses deductible for tax purposes 5,986 (2,254 )
Balancing Figure (54,986 ) (113,537 )
Losses carried forward 254,330 112,901
Total tax credit (61,497 ) -

9. TANGIBLE FIXED ASSETS
Freehold Plant and Computer
property machinery equipment Totals
£    £    £    £   
COST
At 1 January 2023 6,605,190 4,673,021 316,435 11,594,646
Additions 29,889 1,925,878 14,533 1,970,300
At 31 December 2023 6,635,079 6,598,899 330,968 13,564,946
DEPRECIATION
At 1 January 2023 1,491,634 2,383,071 267,834 4,142,539
Charge for year 248,599 472,340 29,370 750,309
At 31 December 2023 1,740,233 2,855,411 297,204 4,892,848
NET BOOK VALUE
At 31 December 2023 4,894,846 3,743,488 33,764 8,672,098
At 31 December 2022 5,113,556 2,289,950 48,601 7,452,107

Included in cost of land and buildings is freehold land of £ 318,192 (2022 - £ 318,192 ) which is not depreciated.

Tangible fixed assets are held at cost less depreciation.

10. STOCKS
2023 2022
£    £   
Raw materials 444,440 574,384
Finished goods 13,212 3,582
457,652 577,966

The difference between purchase price or production cost of stocks and their replacement cost is not material.

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,470,681 1,521,343
VAT 171,342 122,224
Prepayments and accrued income 182,463 338,208
2,824,486 1,981,775

12. BIOLOGICAL ASSETS
2023 2022
£    £   
Short term biological assets 195,136 162,712

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 646,030 767,150
Trade creditors 2,284,620 1,793,092
Amounts owed to group undertakings 1,684,062 1,385,734
Taxation 283 283
Other taxes and social security 94,529 65,915
Other creditors 72,341 61,881
Accruals and deferred income 408,822 231,837
Deferred government grants 473,941 -
5,664,628 4,305,892

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2023 2022
£    £   
Amounts owed to group undertakings 3,050,705 1,713,457

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 30 -
Bank loans 646,000 767,150
646,030 767,150

The overdraft arrangement has an interest rate of SONIA plus a margin of 2.50% and is repayable in quarterly installments until paid off.. The carrying value of the overdraft agreement is as above.

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 3,863 5,756
Between one and five years - 3,863
3,863 9,619

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 646,000 767,150

The bank facilities are secured by a fixed and floating charge on all the assets of the company.

18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 580,783 580,783
Accelerated capital allowances (61,497 ) -
519,286 580,783

Deferred
tax
£   
Balance at 1 January 2023 580,783
Credit to Income Statement during year (61,497 )
Balance at 31 December 2023 519,286

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,200,000 Ordinary £1 1,200,000 1,200,000

The ordinary shares carry full and equal rights to participate in voting in all circumstances and in dividends and capital distributions, whether on a winding up or otherwise. The shares are not redeemable.

20. RESERVES
Retained Capital
earnings contribution Totals
£    £    £   

At 1 January 2023 1,864,091 800,000 2,664,091
Deficit for the year (522,621 ) (522,621 )
At 31 December 2023 1,341,470 800,000 2,141,470

The capital contribution reserve represents funds provided by the parent company to facilitate operations.

Retained earnings reserve represents the cumulative effect of profits and losses net of dividends and other adjustments.

LINCOLNSHIRE HERBS LTD (REGISTERED NUMBER: 03396683)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

21. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in independently administered schemes.

The total cost charged to income of £98,310 (2022 - £86,845) represents contributions payable to the scheme by the company. During the year the company made contributions on behalf of three directors totalling £45,520 (2022 - £32,041). As at 31 December 2023 the company owed contributions of £22,483 (2022 - £11,466) to the defined contribution retirement benefit scheme.

22. ULTIMATE PARENT COMPANY

The parent company of Lincolnshire Herbs Limited is Spisa Holding AB, a company incorporated in Sweden. The ultimate parent company is Gavia Food Holding AB, a company incorporated in Sweden. Gavia Food Holding AB holds a 93.5% shareholding in Spisa Holding AB.

Copies of the group accounts of Gavia Food Holding AB can be obtained from that company at Box 63, 431 21 Molndal, Sweden.

23. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements - 1,695,695

24. OTHER FINANCIAL COMMITMENTS

At the balance sheet date, the company had outstanding currency option deals of a sterling equivalent to a maximum of £1,063,174 (2022 - £520,345). This is in respect of forward contracts in Euros purchased as a hedge against fluctuations in currency.

25. RELATED PARTY DISCLOSURES

During the year the company was under the control of its ultimate parent undertaking, Gavia Food Holding AB.

Total sales of £Nil (2022: Nil) were made to and purchases of £785,700 (2022: £248,239) made from group entities within the accounting period ending 31 December 2023.