Company registration number 07520188 (England and Wales)
ALTERRA FARMS LTD
Unaudited Financial Statements
For The Year Ended 31 December 2023
Pages For Filing With Registrar
Alterra Farms Ltd
ALTERRA FARMS LTD
Contents
Page
Balance sheet
2 - 3
Notes to the financial statements
4 - 10
Alterra Farms Ltd
ALTERRA FARMS LTD
Accountants' Report To The Director On The Preparation Of The Unaudited Statutory Financial Statements Of Alterra Farms Ltd For The Year Ended 31 December 2023
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Alterra Farms Ltd for the year ended 31 December 2023 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of Alterra Farms Ltd, as a body, in accordance with the terms of our engagement letter dated 16 November 2023. Our work has been undertaken solely to prepare for your approval the financial statements of Alterra Farms Ltd and state those matters that we have agreed to state to the board of directors of Alterra Farms Ltd, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Alterra Farms Ltd and its board of directors as a body, for our work or for this report.
It is your duty to ensure that Alterra Farms Ltd has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Alterra Farms Ltd. You consider that Alterra Farms Ltd is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Alterra Farms Ltd. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Chavereys Limited
23 September 2024
Chartered Accountants
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
Alterra Farms Ltd
ALTERRA FARMS LTD
Balance Sheet
As At 31 December 2023
- 2 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
8,284,519
8,375,081
Investment property
5
4,682,091
4,682,091
Investments
6
14,557
14,557
12,981,167
13,071,729
Current assets
Stocks
7
343,302
197,939
Debtors
8
671,248
826,883
Cash at bank and in hand
334,593
139,059
1,349,143
1,163,881
Creditors: amounts falling due within one year
9
(1,489,809)
(2,988,619)
Net current liabilities
(140,666)
(1,824,738)
Total assets less current liabilities
12,840,501
11,246,991
Creditors: amounts falling due after more than one year
10
(5,095,688)
(2,921,567)
Provisions for liabilities
(1,565,895)
(1,223,034)
Net assets
6,178,918
7,102,390
Capital and reserves
Called up share capital
84,520
84,520
Share premium account
1,193,759
1,193,759
Revaluation reserve
3,487,573
3,768,502
Investment property reserve
972,818
1,050,643
Profit and loss reserves
440,248
1,004,966
Total equity
6,178,918
7,102,390
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Alterra Farms Ltd
ALTERRA FARMS LTD
Balance Sheet (Continued)
As At 31 December 2023
- 3 -
The financial statements were approved and signed by the director and authorised for issue on 19 September 2024
Mr AJ Kerr
Director
Company registration number 07520188 (England and Wales)
Alterra Farms Ltd
ALTERRA FARMS LTD
Notes To The Financial Statements
For The Year Ended 31 December 2023
- 4 -
1
Accounting policies
Company information
Alterra Farms Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Office Farm, Letheringham, Woodbridge, Suffolk, England, IP13 7RA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
BPS Entitlements
10 years straight line
Alterra Farms Ltd
ALTERRA FARMS LTD
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
1
Accounting policies
(Continued)
- 5 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Nil / 4% straight line / 25% reducing balance
Property improvements
4% / 25% reducing balance
Plant and machinery
25% reducing balance / 33% straight line
Office equipment
25% reducing balance / 33% straight line
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Alterra Farms Ltd
ALTERRA FARMS LTD
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
1
Accounting policies
(Continued)
- 6 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.11
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
6
6
Alterra Farms Ltd
ALTERRA FARMS LTD
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
- 7 -
3
Intangible fixed assets
BPS Entitlements
£
Cost
At 1 January 2023 and 31 December 2023
54,128
Amortisation and impairment
At 1 January 2023 and 31 December 2023
54,128
Carrying amount
At 31 December 2023
At 31 December 2022
4
Tangible fixed assets
Freehold land and buildings
Property improvements
Plant and machinery
Office equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
8,203,882
236,429
490,835
35,670
101,887
9,068,703
Additions
4,484
1,026
847
90,000
96,357
At 31 December 2023
8,208,366
236,429
491,861
36,517
191,887
9,165,060
Depreciation and impairment
At 1 January 2023
63,182
193,219
350,655
33,409
53,157
693,622
Depreciation charged in the year
117,811
6,997
35,442
1,362
25,307
186,919
At 31 December 2023
180,993
200,216
386,097
34,771
78,464
880,541
Carrying amount
At 31 December 2023
8,027,373
36,213
105,764
1,746
113,423
8,284,519
At 31 December 2022
8,140,700
43,210
140,180
2,261
48,730
8,375,081
5
Investment property
2023
£
Fair value
At 1 January 2023 and 31 December 2023
4,682,091
Alterra Farms Ltd
ALTERRA FARMS LTD
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
5
Investment property
(Continued)
- 8 -
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2023
2022
£
£
Cost
3,585,001
3,585,001
Accumulated depreciation
-
-
Carrying amount
3,585,001
3,585,001
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
2
2
Other investments other than loans
14,555
14,555
14,557
14,557
7
Stocks
2023
2022
£
£
Growing crop
74,221
50,942
Crop in store
180,615
40,804
Stores
57,435
75,162
Willow trees
31,031
31,031
343,302
197,939
Biological assets included within stock are as follows:
Biological assets - growing crop
2023
2022
£
£
As at 1 January
50,942
56,175
Net movement on cultivations
23,279
(5,233)
As at 31 December
74,221
50,942
Alterra Farms Ltd
ALTERRA FARMS LTD
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
- 9 -
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
(1,549)
102,469
Amounts owed by group undertakings
37,146
Other debtors
513,417
580,943
Prepayments and accrued income
159,380
106,325
671,248
826,883
9
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
290,691
Obligations under finance leases
16,306
36,424
Trade creditors
139,402
91,956
Amounts owed to group undertakings
1,255,244
2,459,635
Corporation tax
479
9,666
Other taxation and social security
3,111
2,189
Other creditors
67,765
41,765
Accruals and deferred income
7,502
56,293
1,489,809
2,988,619
10
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
5,037,569
2,910,469
Obligations under finance leases
58,119
11,098
5,095,688
2,921,567
Bank loans and overdrafts are secured against land and property owned by the company.
Amounts included above which fall due after five years are as follows:
Payable by instalments
4,358,788
2,540,524
Alterra Farms Ltd
ALTERRA FARMS LTD
Notes To The Financial Statements (Continued)
For The Year Ended 31 December 2023
- 10 -
11
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
355,223
274,351
Tax losses
(284,139)
(187,374)
Revaluations
1,170,539
889,610
Investment property
324,272
246,447
1,565,895
1,223,034
2023
Movements in the year:
£
Liability at 1 January 2023
1,223,034
Credit to profit or loss
(43,360)
Effect of change in tax rate - profit or loss
105,292
Effect of change in tax rate - other comprehensive income
280,929
Liability at 31 December 2023
1,565,895
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