REGISTERED NUMBER: 00539028 (England and Wales) |
J W GRANT CO |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
REGISTERED NUMBER: 00539028 (England and Wales) |
J W GRANT CO |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
J W GRANT CO |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
(Statutory Auditor) |
Rollestone House |
Bridge Street |
Horncastle |
Lincolnshire |
LN9 5HZ |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
The principal activities of the group in the year under review were those of farming and the manufacture of dog biscuits and the marketing thereof to the retail trade. |
REVIEW OF BUSINESS |
The directors report a profit for the financial period with an operating profit of £1,156,887 (2022 Profit : £181,744). |
During 2023 the pet food business saw another strong recovery in turnover of 18%, following the negative impacts created by the iniquitous and unsubstantiated feline pancytopenia cat food recall which effected Fold Hill Foods in 2021. This improvement has been as a result of improving the customer and product mix with the business focusing on products and sectors where the company has an advantage. |
The company continues to develop its product and customer base with the objective of generating additional turnover and sustainable profitability. |
In the farming business the adoption of a new business model during the year, involving share farm agreements with J E G Farms Ltd and A J Grant Ltd, has resulted in significantly increased turnover and higher profits. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group operates in a challenging economic climate with significant fluctuation in commodity prices. The crop output from the farming undertaken is dependant on many factors such as weather, crop rotation and the quality of the land available. As such the management of the company's business and the execution of the group's strategies are subject to a number of risks: |
- the volatility of raw material and commodity prices; |
- the weather, availability of land,crop rotational plans; |
- the pressures on labour costs; |
- the requirement to constantly upgrade equipment and invest in new equipment as new products are developed: |
- the reliance on a few key customers to generate the current level of turnover. |
The pet food manufacturing strategy is to continue to develop and diversify the product range and invest in plant and equipment, production planning and scheduling software and processes and engineers. |
The farming business has adopted a new approach to mitigating these risks by entering into share farm agreements with JEG Farms Ltd and A J Grant Ltd. This reduces the risk to J W Grant Co as the usual risks relating to the farming industry are largely devolved to the other companies. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The group uses various financial instruments including cash, hire purchase agreements and items such as trade debtors and trade creditors that arise directly from its operations, the main purpose of which is to ensure liquidity for the group's activities. Certain overseas suppliers are paid in foreign currency. Forward currency contract derivatives may be taken out from time to time to hedge against the cash flow risk.These financial instruments expose the group to a number of financial risks, as set out below along with the means in which the group manages its exposures in these areas. |
Interest rate and liquidity risks |
The group finances its activities largely through working capital management and bank borrowings are not currently a highly significant part of the group's funds. The group has also acquired a limited number of fixed assets using hire purchase facilities, but at known interset rates at the inception of the contract. |
Credit risk |
The group's main financial assets are cash and trade debtors. The main credit risk is linked to trade debtors, albeit, this is mitigated as the customers tend to be "blue chip". Risk is minimised through the use of credit agencies, trade references and general experience of the industry. A proactive approach to debt collection is adopted with the accounts processed regularly for obtaining payments, with collection history, and credit limits being reviewed on an ongoing basis. |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
KEY PERFORMANCE INDICATORS |
We consider the key performance indicators to be measured by both turnover and operating profit, both of which have increased in the year. |
ON BEHALF OF THE BOARD: |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
REPORT OF THE DIRECTORS |
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. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors set out in the table below have held office during the whole of the period from 1 January 2023 to the date of this report unless otherwise stated. |
Other changes in directors holding office are as follows: |
The beneficial interests of the directors holding office at 31 December 2023 in the shares of the company, according to the register of directors' interests, were as follows: |
31.12.23 | 1.1.23 |
"A" ordinary shares of £1 each |
2,100 | 2,100 |
- | - |
105 | 105 |
- | - |
- | - |
Preference shares of £1 each |
225,000 | 225,000 |
- | - |
- | - |
- | - |
- | - |
Redeemable Preference Shares 2020 shares of £1 each |
150,000 | 150,000 |
- | - |
- | - |
- | - |
- | - |
These directors did not hold any beneficial interests in the "B" ordinary shares of £1 each. |
These directors did not hold any non-beneficial interests in any of the shares of the company. |
The estate of Mr J E Grant and Mr A J Grant have an interest in shares as beneficiaries of a Trust which holds shares in J W Grant (Co). |
THANKS |
The directors wish to register their thanks for the years of hard work and commitment shown to the company by Mr J E Grant Deceased. |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 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, Dexter & Sharpe Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
J W GRANT CO |
Opinion |
We have audited the financial statements of J W Grant Co (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, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
J W GRANT CO |
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 Group 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 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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. |
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 enquired of those charged with governance around actual and potential litigation and claims. |
We have reviewed financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
Enquired of staff engaged in the completion of VAT, tax and compliance work to identify any instances of non compliance with laws and regulations. |
Audited the risk of management override of controls including review of journal entries and large or unusual transaction, evaluating the business rationale of any significant transactions outside the course of business. |
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. |
for and on behalf of |
(Statutory Auditor) |
Rollestone House |
Bridge Street |
Horncastle |
Lincolnshire |
LN9 5HZ |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 42,189,480 | 36,301,490 |
Cost of sales | (36,403,049 | ) | (31,511,661 | ) |
GROSS PROFIT | 5,786,431 | 4,789,829 |
Distribution costs | (2,054,023 | ) | (2,323,619 | ) |
Administrative expenses | (3,111,702 | ) | (2,774,592 | ) |
620,706 | (308,382 | ) |
Other operating income | 536,181 | 490,126 |
OPERATING PROFIT | 3 | 1,156,887 | 181,744 |
Interest receivable and similar income | 104 | 143 |
1,156,991 | 181,887 |
Interest payable and similar expenses | 4 | (30,861 | ) | (16,088 | ) |
PROFIT BEFORE TAXATION | 1,126,130 | 165,799 |
Tax on profit | 5 | 94,559 | 110,346 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,098,799 | 280,695 |
Non-controlling interests | 121,890 | (4,550 | ) |
1,220,689 | 276,145 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,220,689 | 276,145 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,220,689 |
276,145 |
Total comprehensive income attributable to: |
Owners of the parent | 1,098,799 | 280,695 |
Non-controlling interests | 121,890 | (4,550 | ) |
1,220,689 | 276,145 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 7 | 249,358 | 251,064 |
Tangible assets | 8 | 9,520,698 | 9,580,713 |
Investments | 9 | 380 | 380 |
9,770,436 | 9,832,157 |
CURRENT ASSETS |
Stocks | 10 | 4,882,095 | 5,479,112 |
Debtors | 11 | 9,730,722 | 7,778,512 |
Cash at bank and in hand | 1,976,572 | 1,499,875 |
16,589,389 | 14,757,499 |
CREDITORS |
Amounts falling due within one year | 12 | 7,547,609 | 6,908,387 |
NET CURRENT ASSETS | 9,041,780 | 7,849,112 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
18,812,216 |
17,681,269 |
CREDITORS |
Amounts falling due after more than one year | 13 | (1,125,000 | ) | (1,125,000 | ) |
PROVISIONS FOR LIABILITIES | 17 | (1,850 | ) | (50,091 | ) |
ACCRUALS AND DEFERRED INCOME | 18 | (281,411 | ) | (322,912 | ) |
NET ASSETS | 17,403,955 | 16,183,266 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 26,250 | 26,250 |
Capital reserves | 20 | 56,292 | 56,292 |
Retained earnings | 20 | 17,066,227 | 15,967,428 |
SHAREHOLDERS' FUNDS | 17,148,769 | 16,049,970 |
NON-CONTROLLING INTERESTS | 21 | 255,186 | 133,296 |
TOTAL EQUITY | 17,403,955 | 16,183,266 |
The financial statements were approved by the Board of Directors and authorised for issue on 9 September 2024 and were signed on its behalf by: |
A J Grant - Director |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
Tangible assets | 8 |
Investments | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Capital reserves | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 611,241 | 298,895 |
The financial statements were approved by the Board of Directors and authorised for issue on |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Capital |
capital | earnings | reserves |
£ | £ | £ |
Balance at 1 January 2022 | 26,250 | 15,686,733 | 56,292 |
Changes in equity |
Total comprehensive income | - | 280,695 | - |
Balance at 31 December 2022 | 26,250 | 15,967,428 | 56,292 |
Changes in equity |
Total comprehensive income | - | 1,098,799 | - |
Balance at 31 December 2023 | 26,250 | 17,066,227 | 56,292 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 January 2022 | 15,769,275 | 137,846 | 15,907,121 |
Changes in equity |
Total comprehensive income | 280,695 | (4,550 | ) | 276,145 |
Balance at 31 December 2022 | 16,049,970 | 133,296 | 16,183,266 |
Changes in equity |
Total comprehensive income | 1,098,799 | 121,890 | 1,220,689 |
Balance at 31 December 2023 | 17,148,769 | 255,186 | 17,403,955 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Capital | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,241,776 | 1,450,058 |
Interest paid | (30,861 | ) | (16,088 | ) |
Tax paid | 95,326 | 42,080 |
Net cash from operating activities | 1,306,241 | 1,476,050 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (803,154 | ) | (437,731 | ) |
Sale of tangible fixed assets | 10,501 | 86,049 |
Interest received | 104 | 143 |
Net cash from investing activities | (792,549 | ) | (351,539 | ) |
Cash flows from financing activities |
Loan repayments in year | (36,995 | ) | (53,357 | ) |
Net cash from financing activities | (36,995 | ) | (53,357 | ) |
Increase in cash and cash equivalents | 476,697 | 1,071,154 |
Cash and cash equivalents at beginning of year | 2 | 1,499,875 | 428,721 |
Cash and cash equivalents at end of year | 2 | 1,976,572 | 1,499,875 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,126,130 | 165,799 |
Depreciation charges | 834,559 | 861,113 |
Loss/(profit) on disposal of fixed assets | 19,816 | (77,692 | ) |
Finance costs | 30,861 | 16,088 |
Finance income | (104 | ) | (143 | ) |
2,011,262 | 965,165 |
Decrease/(increase) in stocks | 597,017 | (664,732 | ) |
Increase in trade and other debtors | (2,001,218 | ) | (431,604 | ) |
Increase in trade and other creditors | 634,715 | 1,581,229 |
Cash generated from operations | 1,241,776 | 1,450,058 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 1,976,572 | 1,499,875 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 1,499,875 | 428,721 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,499,875 | 476,697 | 1,976,572 |
1,499,875 | 476,697 | 1,976,572 |
Debt |
Debts falling due within 1 year | (36,994 | ) | 36,994 | - |
Debts falling due after 1 year | (875,000 | ) | - | (875,000 | ) |
(911,994 | ) | 36,994 | (875,000 | ) |
Total | 587,881 | 513,691 | 1,101,572 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of J W Grant Co and all of its subsidiary undertakings for the year ended 31 December 2018. No profit and loss account is presented for J W Grant Co as permitted by Section 408 of the Companies Act 2006. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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 |
Land and buildings | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Buildings are written off over 10 to 25 years on a straight line basis. Land is not depreciated. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Valuation of tenantright and stocks are prepared in accordance with SSAP9 and BEN19 and certified by an independent valuer. |
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. |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | ACCOUNTING POLICIES - continued |
Deferred tax |
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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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. |
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. |
Rents receivable |
Amounts received as rental for land temporarily not farmed by the company are recognised on a straight line basis over the term of the lease. |
Government grants |
Grants received to fund the purchase of tangible fixed assets are included within provisions as deferred assets, and are credited to the profit and loss account over the expected useful lives of the related assets. |
Operating leases |
Rentals applicable to operating leases when substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss as incurred. |
2. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 6,457,257 | 6,111,827 |
Social security costs | 594,124 | 579,230 |
Other pension costs | 236,554 | 227,015 |
7,287,935 | 6,918,072 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 5 | 6 |
Office | 29 | 23 |
Managers | 16 | 16 |
Operatives | 151 | 153 |
The average number of employees by undertakings that were proportionately consolidated during the year was 204 (2022 - 183 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 32,880 | 15,000 |
Directors' pension contributions to money purchase schemes | 4,918 | 263 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
3. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 832,852 | 859,337 |
Loss/(profit) on disposal of fixed assets | 19,816 | (77,692 | ) |
Entitlements amortisation | 5 | 73 |
Goodwill amortisation | 1,701 | 1,701 |
Auditors' remuneration | 17,150 | 15,625 |
Auditors' remuneration for non audit work | 22,437 | 20,544 |
Foreign exchange differences | (171 | ) | 4,279 |
4. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest | - | 123 |
Bank loan interest | 30,861 | 15,965 |
30,861 | 16,088 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | - | (49,008 | ) |
Under / (Overprovision) in |
previous year | (46,318 | ) | (42,080 | ) |
Total current tax | (46,318 | ) | (91,088 | ) |
Deferred tax | (48,241 | ) | (19,258 | ) |
Tax on profit | (94,559 | ) | (110,346 | ) |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 1,126,130 | 165,799 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
281,533 |
31,502 |
Effects of: |
Expenses not deductible for tax purposes | 9,087 | - |
Income not taxable for tax purposes | - | (191 | ) |
Capital allowances in excess of depreciation | (67,188 | ) | - |
Depreciation in excess of capital allowances | - | 9,806 |
Utilisation of tax losses | (309,534 | ) | (74,430 | ) |
Adjustments to tax charge in respect of previous periods | (46,318 | ) | (42,080 | ) |
R & D enhanced relief | (6,350 | ) | (49,008 | ) |
Group relief | (8 | ) | - |
Deferred tax | (48,241 | ) | (19,258 | ) |
Losses carried forward | 92,460 | 48,074 |
Profit on disposal of assets | - | (14,761 | ) |
Total tax credit | (94,559 | ) | (110,346 | ) |
6. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
7. | INTANGIBLE FIXED ASSETS |
Group |
Entitlements | Goodwill | Know-how | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 2,068 | 427,828 | 173,686 | 603,582 |
AMORTISATION |
At 1 January 2023 | 2,063 | 176,769 | 173,686 | 352,518 |
Amortisation for year | 5 | 1,701 | - | 1,706 |
At 31 December 2023 | 2,068 | 178,470 | 173,686 | 354,224 |
NET BOOK VALUE |
At 31 December 2023 | - | 249,358 | - | 249,358 |
At 31 December 2022 | 5 | 251,059 | - | 251,064 |
Company |
Entitlements |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
AMORTISATION |
At 1 January 2023 |
Amortisation for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TANGIBLE FIXED ASSETS |
Group |
Land and | Solar | Plant and |
buildings | site | machinery |
£ | £ | £ |
COST |
At 1 January 2023 | 8,796,885 | 1,018,598 | 22,177,778 |
Additions | - | - | 801,454 |
Disposals | - | - | (1,036,727 | ) |
At 31 December 2023 | 8,796,885 | 1,018,598 | 21,942,505 |
DEPRECIATION |
At 1 January 2023 | 3,429,629 | 380,276 | 18,679,997 |
Charge for year | 53,255 | 40,744 | 708,109 |
Eliminated on disposal | - | - | (1,006,424 | ) |
At 31 December 2023 | 3,482,884 | 421,020 | 18,381,682 |
NET BOOK VALUE |
At 31 December 2023 | 5,314,001 | 597,578 | 3,560,823 |
At 31 December 2022 | 5,367,256 | 638,322 | 3,497,781 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 | 175,923 | 19,938 | 144,680 | 32,333,802 |
Additions | - | 1,700 | - | 803,154 |
Disposals | - | (8,668 | ) | - | (1,045,395 | ) |
At 31 December 2023 | 175,923 | 12,970 | 144,680 | 32,091,561 |
DEPRECIATION |
At 1 January 2023 | 175,923 | 19,920 | 67,344 | 22,753,089 |
Charge for year | - | 34 | 30,710 | 832,852 |
Eliminated on disposal | - | (8,654 | ) | - | (1,015,078 | ) |
At 31 December 2023 | 175,923 | 11,300 | 98,054 | 22,570,863 |
NET BOOK VALUE |
At 31 December 2023 | - | 1,670 | 46,626 | 9,520,698 |
At 31 December 2022 | - | 18 | 77,336 | 9,580,713 |
Included in cost of land and buildings is freehold land of £3,402,752 (2022 - £3,402,752) which is not depreciated. |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
8. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Land and | Solar | Plant and | and |
buildings | site | machinery | fittings | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
Included in freehold property is land at a cost of £3,402,712 (2022 - £3,402,712) which is not depreciated. |
9. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 | 380 |
NET BOOK VALUE |
At 31 December 2023 | 380 |
At 31 December 2022 | 380 |
Company |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
and 31 December 2023 | 11,729 |
NET BOOK VALUE |
At 31 December 2023 | 11,729 |
At 31 December 2022 | 11,729 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | 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: |
Subsidiary |
Registered office: Fold Hill, Old Leake, Boston, Lincolshire, PE22 9PJ |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
In addition to the investment in Fold Hill Foods Limited the company held 99% holdings ( other than nominee holdings) in 3 dormant subsidiaries: |
W E Grant Co |
Fold Hill Nurseries |
James Grant (Farmers) Ltd |
10. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Produce | - | 488,131 |
Consumable stores & materials | 3,240,887 | 3,464,297 |
Finished goods | 1,641,208 | 1,526,684 |
4,882,095 | 5,479,112 |
11. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 6,208,900 | 6,689,084 |
Other debtors | 3,521,812 | 1,040,410 |
Tax | - | 49,008 |
9,730,712 | 7,778,502 |
Amounts falling due after more than one year: |
Called up share capital not paid | 10 | 10 |
Aggregate amounts | 9,730,722 | 7,778,512 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 14) | - | 36,994 |
Trade creditors | 2,980,248 | 4,111,676 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 399,223 | 1,088,919 |
VAT | 192,696 | 307,087 | - | - |
Other creditors | 3,870,321 | 1,258,590 |
Directors' current accounts | 105,121 | 105,121 | - | - |
7,547,609 | 6,908,387 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Preference shares (see note 14) | 875,000 | 875,000 |
Pension Fund loan | 250,000 | 250,000 | 250,000 | 250,000 |
1,125,000 | 1,125,000 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on demand: |
Bank loans | - | 36,994 |
Amounts falling due between one and two years: |
Preference shares | 875,000 | 875,000 | 875,000 | 875,000 |
Details of shares shown as liabilities are as follows: |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Preference | £1 | 225,000 | 225,000 |
Redeemable Preference Shares 2 | £1 | 650,000 | 650,000 |
875,000 | 875,000 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | LEASING AGREEMENTS - continued |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans | - | 36,994 |
17. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 1,850 | 50,091 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 50,091 |
Credit to Income Statement during year | (48,241 | ) |
Balance at 31 December 2023 | 1,850 |
18. | ACCRUALS AND DEFERRED INCOME |
Group |
2023 | 2022 |
£ | £ |
Deferred government grants | 281,411 | 322,912 |
J W GRANT CO (REGISTERED NUMBER: 00539028) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
"A" ordinary | £1 | 21,000 | 21,000 |
"B" ordinary | £1 | 5,250 | 5,250 |
26,250 | 26,250 |
The "B" shares are non-voting shares. Holders of these shares are able to receive dividends in excess of, but not less than, dividends declared to the "A" shareholders. In all other respects "A" and "B" shares rank pari-passu. |
20. | RESERVES |
Group |
Retained | Capital |
earnings | reserves | Totals |
£ | £ | £ |
At 1 January 2023 | 15,967,428 | 56,292 | 16,023,720 |
Profit for the year | 1,098,799 | 1,098,799 |
At 31 December 2023 | 17,066,227 | 56,292 | 17,122,519 |
Company |
Retained | Capital |
earnings | reserves | Totals |
£ | £ | £ |
At 1 January 2023 | 2,909,349 |
Profit for the year |
At 31 December 2023 | 3,520,590 |
21. | NON-CONTROLLING INTERESTS |
The minority interest represents a 20% minority holding in Fold Hill Foods Limited and a 1% minority holding in the three dormant subsidiaries Fold Hill Nurseries, James Grant (Farmers) and W E Grant Co. |
22. | RELATED PARTY DISCLOSURES |
Rent paid to the J W Grant Co Pension Fund amounted to £26,680 (2022 £26,680). A loan due to the pension fund amounted to £250,000 at 31 December 2023 (2022 £250,000). |
Interest is being charged at 2% on the outstanding balance. |
23. | SUBSIDIARY |
The following subsidiaries have taken audit exemption under Section 479A |
Fold Hill Foods (Liverpool) Limited; |
Pointer Pet Products Limited. |