REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Audited Financial Statements for the Period 29 May 2023 to 2 June 2024 |
for |
Alfred G Pearce Limited |
REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Audited Financial Statements for the Period 29 May 2023 to 2 June 2024 |
for |
Alfred G Pearce Limited |
Alfred G Pearce Limited (Registered number: 00980985) |
Contents of the Financial Statements |
for the Period 29 May 2023 to 2 June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 5 |
Report of the Independent Auditors | 8 |
Statement of Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
Alfred G Pearce Limited |
Company Information |
for the Period 29 May 2023 to 2 June 2024 |
Directors: |
Registered office: |
Registered number: |
Senior statutory auditor: |
Auditors: |
Chartered accountants & statutory auditor |
22-26 King Street |
King's Lynn |
Norfolk |
PE30 1HJ |
Solicitors: |
1 St James Court |
Norwich |
Norfolk |
NR3 1RU |
Alfred G Pearce Limited (Registered number: 00980985) |
Strategic Report |
for the Period 29 May 2023 to 2 June 2024 |
Introduction |
The directors present their Strategic Report and Audited Financial Statements for Alfred G Pearce Limited ("the company") for the 52 week and 6 day period ended 2 June 2024. |
The figures prepared and presented in the financial statements have been prepared for the 52 week period and 6 days ended 2 June 2024 (2023 - 51 week and 6 day period ended 28 May 2023). |
Principal activities |
The principal activity of the company during the period remained that of the production and processing of vegetables for the food manufacturing and food service sectors. |
The directors consider that the principal activity of the business will remain the same for the foreseeable future. |
Review of business |
This financial year concludes a strong turnaround for the company, despite the continued macro economic factors faced by the entire industry, having suffered our worst results in our 65 year history last year. The company still faced a number of challenges that were carried over from the previous year, but has demonstrated its resiliency to navigate through these with the business returning to profitability. |
Whilst the inflationary pressures had not fully eased by the end of the financial year, the company was no longer tied to the previous fixed price contracts that had resulted in margins being eroded last year. As a result of the new renegotiated contracts and new customers brought in during the year, turnover has continued last year's strong growth increasing by £4,684,691 (22.22%). With this increased turnover and improved yields, this has helped to contribute to an improved gross profit margin in the year of £2,028,886 (10.05%). |
As a result of the new management team that has been installed, the improved margin has led to the company return to profitability with a profit after tax of £89,673 (2023- loss of £1,228,621). With the return to profitability, improved working capital policies and sales growth, cash reserves of the company were strengthened within the year. As such, the directors remain positive for the new fiscal year with strong price negotiations being attained across all sales, along with a push to increase sales volumes through enhanced product offerings and new customer acquisitions. |
Key performance indicators |
The company uses a range of performance measures to monitor and manage the business effectively, including both financial and non-financial measures. The key financial performance indicators and their comparatives are as follows: |
2024 | 2023 | 2022 |
(52 weeks, 6 days) | (51 weeks, 6 days) | (51 weeks, 5 days) |
Turnover | £25,767,575 | £21,082,884 | £18,688,415 |
Current assets | £7,249,367 | £7,408,979 | £6,140,199 |
Current liabilities | £4,749,925 | £4,781,925 | £2,154,099 |
Total assets | £11,880,128 | £11,579,164 | £9,601,015 |
Alfred G Pearce Limited (Registered number: 00980985) |
Strategic Report |
for the Period 29 May 2023 to 2 June 2024 |
Key performance indicators (continued) |
Sales growth | 22.22% | 12.81% | 13.60% |
Gross profit margin | 10.05% | 2.66% | 11.04% |
Net profit margin (after tax) | 0.35% | (5.83%) | 1.24% |
Sales per tonne and gross profit per tonne remain to be key performance indicators of the business. These are both commercially sensitive to the company and continue to be monitored internally. Sales growth is also key, ensuring that the company remains a strong competitor within the market and continues to build strong customer relationships. Costs continued to rise but to a lesser extent than that of sales during the year, resulting in a significantly improved gross profit margin. Despite this, cost of sales still requires direct and overhead cost variance analysis which remains a critical part within KPI reviews, to ensure costs are controlled. Net operating margin remains important and is carefully observed to ensure that overheads remain reasonable and in line with activity, especially given the inflationary effects still being felt within the global economy. |
Position at period-end |
Following on from the strong performance during the 52 week and 6 day period to 2 June 2024, the Balance Sheet remains in a strong position to enable the company to continue its growth plans. Shareholder Funds are now £5,881,533 (2023 - £5,810,913), with the full results of the company set in the Statement of Comprehensive Income on page 12. |
Management of risk |
The directors continually review the activities of the company and the policies that it has in place in order to manage exposure to risk. On identification of key risk areas, the directors implement controls and processes that aim to manage these risks to an acceptable level. These measures are periodically reviewed to ensure that they are still appropriate and adequate in safeguarding the company and its assets. |
The company's financial risk management objectives and policies in response to risks arising from financial instruments, are detailed in full in the Director's Report. |
Principal risks and uncertainties |
The company operates in a challenging economic environment, exposed to inflation on costs and subsequent pressures on margins, which must be considered against the price expectancy of the company's customer base. The directors have implemented cost control measures to alleviate the rise in costs attributable to inflation, and are continually seeking to improve operational efficiencies. |
The type of activity carried out, being the farming and processing of vegetables for the food industry, means that the company is susceptible to unpredictable weather patterns which pose annual challenges on crop yields for supply, and product demand from customers. The directors closely observe weather forecasts and trends to attempt to minimise such risks. |
The company is aware of evolving environmental regulations that must be adhered to, which require additional compliance efforts and associated costs to ensure that environmental controls are of a high standard. The directors have committed to planned investment in property, plant and equipment to improve efficiencies regarding energy and effluent waste. |
Alfred G Pearce Limited (Registered number: 00980985) |
Strategic Report |
for the Period 29 May 2023 to 2 June 2024 |
Principal risks and uncertainties (continued) |
In common with other businesses in this sector, other principal risks and uncertainties faced by the company include customer retention, margins and profitability, and the availability, price and quality of raw materials. |
The company is keen to build long standing relationships with customers in order to build sustainable levels of sales year on year. The main risk facing this area is the competitive nature of the industry in which the company operates, with demand for it's goods highly sensitive to price changes and quality of supply. It is pleasing to see the company retain it's position as supplier of choice to many of it's customers due to our commitment to provide high quality goods at competitive prices and will continue to do so moving forward. |
We believe a key business risk affecting the margins and profitability of the company is competitor pricing within the UK and Europe impacting on revenues, and inflationary pressures across wider markets impacting on costs. Throughout the year, the continued rise in direct costs and overheads such as energy and labour costs has diminished margins, however this is expected to slow in the next fiscal year to help stabilise overall input costs into the company. It is an area of focus for the company and the directors have adequate experience and knowledge of the sector to keep such risks to a minimum and limit their impacts on profit levels and margins. |
The long-term impact of Brexit, specifically the way in which the relationship between the UK and the EU evolves and develops over time, is still uncertain. This is particularly the case in regards to labour shortages and input costs related to both the exit of the EU and the ongoing war in Eastern Europe. The directors continually monitor any key developments that emerge and take appropriate measures to respond accordingly. There has been no major impact on its operations and supply chains as a result of current procedures in place. |
Future developments |
The company is looking to build on the progress made in the last financial year, as the inflationary pressures begin to ease for the business heading into the next fiscal year. Seeking to both stabilise income whilst allowing further diversification of product lines to strengthen their customer relationships and augment profit margins. |
The company will continue to assess and invest in capital expenditure that will improve efficiencies within the business as it looks to continue to grow and build on its existing customer base. |
The company remains committed to reducing the carbon footprint emitted from its operations, by investing in more sustainable processes and greener technology. The company is focused on driving energy efficiency improvements in all offices and sites in which it operates; exemplified by working with renewable energy suppliers. |
We are confident the company is well placed to move forward and are positive about the company outlook over the next 12 months. We will continue to monitor all costs to ensure profitability is proportionate to the levels of trading activity achieved in future years. |
On behalf of the board: |
Alfred G Pearce Limited (Registered number: 00980985) |
Directors' Report |
for the Period 29 May 2023 to 2 June 2024 |
The directors present their report with the financial statements of the company for the period 29 May 2023 to 2 June 2024. |
Dividends |
Interim dividends of £15,000 (2023 - £Nil) have been declared and paid during the 52 week 6 day period ended 2 June 2024. A final dividend has been declared of £8,600 (2023 - £Nil). |
Results |
The profit for the year, after taxation, amounted to £89,673 (2023 - loss of £1,228,621). |
Directors |
The directors shown below have held office during the whole of the period from 29 May 2023 to the date of this report. |
Future developments |
The directors currently have no intention of materially altering the operations of the company, and will continue to develop its current market share to continue growth in the industry. A new revised senior management team was appointed and will continue to drive the business forwards in terms of sales development, cost efficiencies and new projects. The company remains committed to reducing it's environmental footprint through continued focus on integrating greener technologies into systems and processes to improve efficiencies and achieve more sustainable farming practices. |
Going concern |
The company reported net profits for the period of £89,673 (2023 - loss of £1,228,621), with net assets of |
£5,881,533 (2023 - £5,810,913) as at 2 June 2024, which the directors consider, along with continued shareholder |
support if necessary, to be adequate resources to continue in operational existence for the foreseeable future. Based on an assessment of financial forecasts covering the next 12 months from the balance sheet date of these financial statements and an informal internal review for 12 months from the date of approval of these financial statements, the directors have concluded that the company has sufficient liquidity and can successfully manage it's financial risks to continue for the going concern review period. Accordingly, the directors consider it appropriate to prepare these financial statements on a going concern basis. |
Post balance sheet events |
There have been no significant events that have affected the company since the reporting date and up to the date of signing these financial statements. |
Alfred G Pearce Limited (Registered number: 00980985) |
Directors' Report |
for the Period 29 May 2023 to 2 June 2024 |
Financial instruments and financial risk management objectives and policies |
The directors have considered the provisions included within the Companies Act 2006, relating to financial risk management objectives and policies, including any associated use of financial instruments. |
The company uses various financial instruments to ensure no unnecessary risks are taken with the company's assets, including loans and cash, and items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. |
The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail below. The main risks arising from the company's financial instruments are currency risk, credit risk, interest rate risk and liquidity/cashflow risk. The directors review and agree policies for managing each of these risks and they are summarised below. These policies have remained unchanged from previous years. |
Foreign currency risk |
The company is exposed to translation and transaction foreign exchange risk on transactions with overseas parties; in particular with suppliers. It is the director's decision not to always hedge against this currency risk but on occasions will use the uncommitted foreign exchange line that is in place with the company's bankers to mitigate the risk. |
Credit risk |
The company is exposed to credit risk on both its investments and debtors. Investments of cash surpluses are made through banks which must fulfil credit rating criteria approved by the directors. The principal credit risk relates to the recovery of amounts owed by trade debtors. All customers who wish to trade on credit terms are subject to credit verification procedures, which includes obtaining third party credit references. Credit limits provided are on a customer by customer basis, and are reviewed regularly in conjunction with debt ageing and collection history. Debts are actively chased by the credit control department. For added protection, the majority of trade debtors are covered by credit insurance in order to further mitigate the company's exposure to credit risk. |
Interest rate risk |
The company is exposed to cash flow interest rate risk on bank overdrafts, hire purchase and finance leases. The directors keep this under regular review and shield from changes in the market interest rate by securing fixed rates where available, which is usually the case with hire purchase contracts and finance leases. The risk of interest rate changes to positive cash balances remains minimal. |
Liquidity and cashflow risk |
The company manages it's liquidity and cash flow risk through a mixture of short and long term borrowing in order to minimise interest expense whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business; including the requirement to effectively fund any capital expenditure arising. Due to the seasonality of the industry, the directors carefully monitor cash generated from it's operations as part of it's liquidity management. Cash and borrowing requirements are managed in order to minimise interest expense but not necessarily to maximise interest income. |
Qualifying indemnity provision |
A qualifying indemnity provision was in force for the benefit of all directors during the period and remains in force at the date of this report. |
Political donations and expenditure |
The company made no political donations during the year (2023 - £Nil). |
Disclosure in the strategic report |
In accordance with the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, the review of the development and performance of the business, including key performance indicators, is contained in the Strategic Report on page 2. |
Alfred G Pearce Limited (Registered number: 00980985) |
Directors' Report |
for the Period 29 May 2023 to 2 June 2024 |
|
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 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 company's auditors are aware of that information. |
Auditors |
The auditors, Stephenson Smart (East Anglia) Limited, 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 |
Alfred G Pearce Limited |
Opinion |
We have audited the financial statements of Alfred G Pearce Limited (the 'company') for the period ended 2 June 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement 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 2 June 2024 and of its profit for the period 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 Directors' Report, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
Alfred G Pearce Limited |
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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report 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 Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is details below: |
As part of the audit process, we identify and assess the risks of material misstatement to the financial statements as a result of susceptibility to irregularities, including fraud, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
Report of the Independent Auditors to the Members of |
Alfred G Pearce Limited |
To establish the risks in which to base our procedures on, some of the things we do are: |
- | Understand the company and its environment to identify events or conditions that may have a significant effect on the risks of material misstatement, such as the nature of the company, external, industry and regulatory factors (see further below), and the company's objectives and strategies; |
- | Review of the company's measurements of financial performance; |
- | Review of the company's own assessment of the risks that irregularities may occur either as a result of fraud or error, including the likelihood and significance of potential misstatements resulting from those risks; |
- | Obtain an understanding of internal controls over the company's financial reporting, which includes performing walkthroughs to test controls; |
- | Review matters we identified having assessed the company's documentation of their policies and procedures relating to identifying, evaluating and complying with laws and regulations and whether they are aware of any instances of non-compliance; |
- | Perform analytical procedures throughout the audit; |
- | Have internal discussions with the audit engagement team members regarding risks of material misstatement; |
- | Understand the selection and application of accounting policies and related disclosures in the financial statements; in particular to areas involving significant management estimates and assumptions. |
As above, we obtain an understanding of the legal and regulatory framework that the company operates in, focusing |
on provisions of those laws and regulations that had a direct effect on the determination of material amounts and |
disclosures in the financial statements. Based on our understanding of the company and industry, the key laws and regulations we considered in this context included: |
- | Those laws and regulations considered to have a direct effect on the financial statements include the UK Financial Reporting Standards, Company Law (Companies Act 2006), Taxation and Pension legislation and Distributable Profits legislation. |
- | Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include but are not limited to; health and safety legislation; food and hygiene standards; and employment regulation. |
In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk |
of management override. We evaluated management’s incentives and opportunities for fraudulent manipulation of these financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent journal entries, designed to manipulate the financial performance and/or the position of the company, and management bias in accounting estimates. Audit procedures undertaken in response to the potential risks relating to irregularities and fraud within the financial statements comprised of, but not limited to: |
- | Inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations and whether there is any known or suspected instances of non-compliance, claims and litigation, and instances of fraud; |
- | Inspection of relevant legal correspondence; |
- | Understanding of management's controls designed to prevent and detect irregularities; |
- | Identifying and testing journal entries to assess whether any of the journals appeared unusual and evaluating the business rationale of any one-off significant transactions outside the normal course of business; |
- | The performance of analytical review to identify unexpected movement in account balances which may be indicative of fraud; and |
- | Challenging management on assumptions and judgements made in their significant accounting estimates. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
Report of the Independent Auditors to the Members of |
Alfred G Pearce Limited |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than those irregularities that result from error; as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. As explained above, there is an unavoidable risk that material misstatements might not be detected, even though the audit has been planned and performed in accordance with the ISAs (UK). |
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional |
scepticism throughout the audit. |
We also conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern. |
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. |
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. |
for and on behalf of |
Chartered accountants & statutory auditor |
22-26 King Street |
King's Lynn |
Norfolk |
PE30 1HJ |
Alfred G Pearce Limited (Registered number: 00980985) |
Statement of Comprehensive Income |
for the Period 29 May 2023 to 2 June 2024 |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
Notes | £ | £ |
Turnover | 4 |
Cost of sales | ( | ) | ( | ) |
Gross profit |
Administrative expenses | ( | ) | ( | ) |
218,784 | (1,551,094 | ) |
Other operating income |
Operating profit/(loss) | 6 | ( | ) |
Income from fixed asset investments | 9 |
Interest receivable and similar income | 10 |
239,122 | (1,545,316 | ) |
Interest payable and similar expenses | 11 | ( | ) | ( | ) |
Profit/(loss) before taxation | ( | ) |
Tax on profit/(loss) | 12 | ( | ) |
Profit/(loss) for the financial period | ( | ) |
Other comprehensive income |
Revaluation gains/(losses) |
Deferred tax on revaluation transfer |
Income tax relating to components of other comprehensive income | ( | ) |
Other comprehensive income for the period, net of income tax |
Total comprehensive income for the period | ( | ) |
Alfred G Pearce Limited (Registered number: 00980985) |
Balance Sheet |
2 June 2024 |
2.6.24 | 28.5.23 |
Notes | £ | £ |
Fixed assets |
Tangible assets | 14 |
Investments | 15 |
Current assets |
Stocks | 16 |
Debtors | 17 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 18 | ( | ) | ( | ) |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year | 19 | ( | ) | ( | ) |
Provisions for liabilities | 24 | ( | ) | ( | ) |
Net assets |
Capital and reserves |
Called up share capital | 25 |
Revaluation reserve | 26 |
Retained earnings | 26 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
Alfred G Pearce Limited (Registered number: 00980985) |
Statement of Changes in Equity |
for the Period 29 May 2023 to 2 June 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 June 2022 | 10,000 | 6,040,057 | 236,548 | 6,286,605 |
Changes in equity |
Deficit for the period | - | (1,228,621 | ) | - | (1,228,621 | ) |
Other comprehensive income | - | - | 752,929 |
Total comprehensive income | - | ( | ) | ( | ) |
Balance at 28 May 2023 | 10,000 | 4,811,436 | 989,477 | 5,810,913 |
Changes in equity |
Profit for the period | - | 89,673 | - | 89,673 |
Other comprehensive income | - | - | 4,547 |
Total comprehensive income | - |
Excess depreciation transfer | - | 18,188 | (18,188 | ) | - |
Dividends | - | ( | ) | - | ( | ) |
Balance at 2 June 2024 | 10,000 | 4,895,697 | 975,836 | 5,881,533 |
Alfred G Pearce Limited (Registered number: 00980985) |
Cash Flow Statement |
for the Period 29 May 2023 to 2 June 2024 |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 31 | ( | ) |
Interest paid | ( | ) | ( | ) |
Interest element of hire purchase payments paid | ( | ) | ( | ) |
Loss on abortive expenditure |
Tax paid | ( | ) |
Net cash from operating activities | ( | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( | ) | ( | ) |
Sale of tangible fixed assets |
Loss on abortive expenditure | ( | ) |
Interest received |
Dividends received |
Net cash from investing activities | ( | ) | ( | ) |
Cash flows from financing activities |
Capital repayments in year | ( | ) | ( | ) |
Amount introduced by directors | - | 2 |
Amount withdrawn by directors | 12,900 | (8,956 | ) |
Equity dividends paid | ( | ) |
Net cash from financing activities | ( | ) | ( | ) |
Increase/(decrease) in cash and cash equivalents | ( | ) |
Cash and cash equivalents at beginning of period | 32 | (287,515 | ) | 2,063,141 |
Cash and cash equivalents at end of period | 32 | ( | ) |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements |
for the Period 29 May 2023 to 2 June 2024 |
1. | Statutory information |
Alfred G Pearce Limited is a |
The nature of the company's operations and its principal activities are set out in the Strategic Report. |
2. | Statement of compliance |
3. | Accounting policies |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention or historic cost modified by revaluation of financial assets and financial liabilities held at fair value through profit and loss, except for the financial instruments that are measured at their fair values at the end of each reporting period, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for goods and services. |
The presentation currency of the financial statements is the Pound Sterling (£). |
The principal accounting policies adopted are set out below and have been applied consistently in these financial statements unless otherwise stated. |
Going Concern |
The directors consider, along with shareholder support if necessary, that the company has adequate resources to continue in operational existence for the foreseeable future. Based on an assessment of financial forecasts covering the next 12 months from the balance sheet date of these financial statements and an informal internal review for 12 months from the date of approval of these financial statements, the directors have concluded that the company has sufficient liquidity and can successfully manage it's financial risks to continue for the going concern review period. Accordingly, the directors consider it appropriate to prepare these financial statements on a going concern basis. |
Critical accounting judgements and key sources of estimation uncertainty |
The preparation of the financial statements in conformity with FRS 102 requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
(i)Useful economic lives of property, plant and equipment |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful |
economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancements, future investments, economic utilisation and the physical condition of the assets. See notes to the accounts for the carrying amount of tangible assets and the useful economic lives for each class of assets. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
3. | Accounting policies - continued |
(ii)Taxation |
The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities. The amount of such provisions is based on various factors, such as experience with the previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. |
(iii)Biological assets and agricultural produce |
The company's operations include activities which are agricultural in nature and are subject to the recognition, measurement and disclosure requirements of FRS Section 34 - 'Specialised Activities'. Biological assets are carried on the balance sheet at cost, less accumulated impairment. Short term biological assets are those crops which are planted, grown and harvested in less than 12 months, leaving no residual asset that can generate future revenue and no requirement for depreciation charges. The biological assets of the company only relate to the current season. Agricultural produce is the harvested product of the company's biological assets, which are measured at the lower of cost or net realisable value at the point of harvest. The directors assess the biological assets and agricultural produce of the company for impairment during the year and at each reporting date, based on the directors' inspection of the produce being grown and their best estimate of net realisable values with reference to quoted market or contract prices. |
(iv)Revaluation of land and buildings within freehold property |
The company chose to value it's land and buildings within freehold property under the revaluation model as defined within FRS Section 17. This requires a fair value for freehold property to be obtained with sufficient regularity, being every 3 to 5 years, to ensure the carrying amount of the assets at the balance sheet date does not differ materially from fair value. The directors have chosen to use external, independent property valuation experts to determine the value of freehold property. The value is based on the analysis of observable market data, including evidence of recent sales or for sale notices, on the sales of other property with similar location and condition, to arrive at a reasonable square foot and acreage value to apply to the company land and buildings. |
Revaluation gains are also depreciated, based on the useful economic lives of the assets. An amount equal to the difference between the depreciation on revalued amounts and the depreciation on historical cost amounts is transferred each year from the Revaluation Reserve to Retained Earnings. |
Changes in accounting policies |
For the period 2 June 2024, the company adopted a voluntary change in accounting policy with respect to the valuation of stock. The impact of this change is to include produce stock items at weighted average cost, which replaces the first-in, first-out basis. The company will continue to value all other stock items under the first-in, first-out basis. |
The company has decided to enact the change as they believe this will increase the stability of the value of the produce stock items which are subject to fluctuations throughout the year and therefore provide a more relevant and reliable valuation for the company. |
There have been no adjustments made to the comparative figures within the financial statements as the effect of the change is deemed not to be material. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
3. | Accounting policies - continued |
Turnover |
Turnover is recognised for sales transactions to the extent that economic benefits will flow to the company and the amount of revenue can be reliably measured. Turnover is measured at the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is stated net of discounts, rebates, Value Added Tax and other sales taxes. |
The following criteria must also be met before turnover from a sale can be recognised: |
Turnover from the sale of prepared and bulk produce is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer (usually on delivery of the goods), the amount of turnover can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Motor vehicles | - |
Office equipment | - |
Freehold land is not depreciated. |
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. |
Any tangible assets that subsequently adopt the revaluation model are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated for that asset, the excess shall be recognised in profit or loss. |
Certain land and buildings within freehold property were held at 'revaluation as deemed cost', an alternative accounting rule within the Companies Act 2006 that modifies the historical-cost convention by substituting historic cost for revalued amounts. The company opted to apply revaluation as deemed cost on it's transition to FRS 102, using the asset valuations ascertained by the use of external land and property consultants, before the adoption of FRS 102. These assets were subsequently stated at deemed cost, plus additions post 2009 (year of adoption), less any accumulated depreciation and impairment losses. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
3. | Accounting policies - continued |
Fixed asset investments |
Investments are initially measured at fair value, which is normally the transaction price. Subsequent to initial recognition, investments that can be measured reliably are measured at fair value, with movements recognised in the profit or loss account. For listed investments held, the fair value is ascertained by reference to the share price on the stock exchange in which the shares are listed. This policy has changed under the adoption of FRS 102 where listed investments were previously held at cost. |
Impairment of fixed assets |
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. |
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or group of assets. |
Stocks |
General stocks are stated at the lower of cost or net realisable value. |
Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition, based on weighted average cost basis for produce stock and first-in, first-out basis for all other items of stock. Net realisable value is determined by the estimated selling price in the ordinary course of business, less costs to complete and sell. |
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the profit or loss. |
Biological assets and agricultural produce |
The company has identified it's unharvested carrot and cereal crops at the reporting date as biological assets. |
Unharvested crops in the ground are held on the balance sheet as 'biological assets' within stock, using the cost model, being recognised at cost less any accumulated impairment losses and stated at the lower of cost or net realisable value. Cost is calculated to include the total costs attributable to growing the crops, less costs of harvested produce and sales. The directors believe that fair value cannot be reliably measured due to there being no active market with quoted prices, and deem that alternative fair value measurements are unreliable. |
Agricultural produce is the harvested product of the company's biological assets. At the point of harvest (harvested crops), agricultural produce is measured at the lower of cost or net realisable value, based on the estimated selling price less cost to complete, and is included in 'harvested crops and goods' within stock. |
At each reporting date, biological assets and agricultural produce (harvested crops) are assessed for impairment. If impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the profit or loss. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
3. | Accounting policies - continued |
Financial instruments |
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. |
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. |
Debt instruments are subsequently measured at amortised cost. |
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. |
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. |
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
3. | 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 period 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. |
Tax and revaluation reserve |
Where items of property, plant and equipment have been subject to revaluation, deferred tax is recognised on the timing differences resulting from the fair value movement. The deferred tax treatment follows the presentation of the related transaction. |
On transition to FRS 102, assets that were being carried at revalued amounts were elected to adopt revaluation at deemed cost, with the uplift being included in the revaluation reserve. A deferred tax liability is recognised, with the deferred tax provision being transferred to the revaluation reserve within equity and reported through other comprehensive income. On reversal of revalued amounts, the deferred tax liability is reduced and credited to the revaluation reserve. |
On re-adoption of the revaluation model for land and buildings within freehold property, the gains on revaluation have been included in the revaluation reserve. A deferred tax liability is recognised and transferred to the revaluation reserve within equity and reported through other comprehensive income. On reversal of revalued amounts, the deferred tax liability is reduced and credited to the revaluation reserve. |
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. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
3. | Accounting policies - continued |
Hire purchase and finance leases |
The determination of whether a contract is, or contains, a lease is based on the substance of the arrangement at the inception date: whether it conveys the right to control the use of an identified asset, or assets, over a period of time in exchange for consideration. Control requires the right to direct an assets use and obtain substantially all of the economic benefits. |
Company as a lessee |
Assets obtained under hire purchase contracts are capitalised on the balance sheet at the cost of the asset, since at the end of the hire purchase period, ownership of the asset will transfer to the company. Those assets held under hire purchase contracts are depreciated over their estimated useful lives, in accordance with the company's depreciation policy. A liability to the lessor is presented on the balance sheet, amounting to the amount borrowed under the agreement. Hire purchase payments are analysed between capital and interest components so that the interest element of the payment is charged to the profit or loss over the term of the agreement at a constant rate of interest, and the capital part of the payment reduces the outstanding liability. |
Finance leases are those which transfer substantially all of the risks and rewards incidental to ownership of the underlying asset. Assets obtained under finance leases are capitalised at the commencement of the lease at the lower of fair value or the present value of the minimum lease payments payable over the term of the lease. Assets held under finance leases are depreciated over their estimated useful lives, or if there is no reasonable certainty that the company will obtain ownership by the end of the lease term, then depreciated over the lease term if shorter. The corresponding leasing payments are shown as a liability to the lessor, net of finance charges. Lease payments are apportioned between finance charges and reduction of the lease liability, so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in the profit or loss. The capital part of the payments reduces the amount payable to the lessor. |
Operating leases |
All other leases are treated as operating leases, whereby the risks and rewards of ownership of the underlying asset are retained by the lessor. Operating lease payments are recognised as an expense in the profit or loss on a straight line basis over the period of the lease term. The aggregate benefit of any lease incentives is recognised as a reduction to the expense over the lease term, on a straight-line basis. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Exceptional items |
The company does not present exceptional items on the face of the Statement of Income and Retained Earnings. Instead, for those material items of income and expense which have arose due to unexpected events and are not expected to repeat, appropriate disclosure is made within the notes to the financial statements, so as to allow users of the financial statements to take these income and expenses into consideration when looking at the financial performance of the current period and facilitate comparison with prior periods. |
Single farm payments |
Single Farm Payments are receivable on an annual basis. The payment only becomes receivable once the occupation period specified has been completed. The income is recognised once the occupation period is completed. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
3. | Accounting policies - continued |
Provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets. Cash is represented by cash in hand, and deposits held with financial institutions repayable without penalty or notice of not more than 24 hours, net of bank overdrafts which are shown within borrowings in current liabilities. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value. |
4. | Turnover |
The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
An analysis of turnover by geographical market is given below: |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
United Kingdom |
Europe |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
5. | Employees and directors |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
Production staff | 62 | 64 |
Administrative staff | 15 | 9 |
Management staff | 8 | 8 |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Emoluments etc |
Key management personnel |
There is not considered to be any key management personnel other than the directors. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
6. | Operating profit/(loss) |
The operating profit (2023 - operating loss) is stated after charging/(crediting): |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( | ) | ( | ) |
Foreign exchange differences | ( | ) |
Operating lease payments |
Depreciation charged on fixed assets is recognised in the Statement of Comprehensive Income within cost of sales and administrative expenses, depending on the nature of the asset class. |
7. | Auditors' remuneration |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements | 16,000 | 15,000 |
8. | Exceptional items |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Exceptional items | - | (166,177 | ) |
The company paid a deposit of £166,177 during the period ended 31 July 2020, in respect of a proposed new Waste Water Treatment System as part of the company's continued investment in it's PPE. The directors decided not to go ahead with the project and cancelled the contract in place with the supplier, which subsequently resulted in the deposit being lost. Although works were carried out by the supplier, the title of ownership of part-constructed items have not been transferred over to the company and are encapsulated in the non-recoverable deposit. |
This loss on abortive expenditure was derecognised in full from prepayments, and recorded in the profit or loss account within administrative expenses in the period ended 28 May 2023. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
9. | Income from fixed asset investments |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Other fixed asset invest - FII | 108 | 101 |
Income from other fixed asset investments is derived from financial assets measured at fair value through profit or loss. |
10. | Interest receivable and similar income |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Deposit account interest |
Interest receivable is derived from financial assets measured at amortised cost. |
11. | Interest payable and similar expenses |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Bank interest |
Hire purchase |
Bank interest, and interest payable on hire purchase contracts, are derived from financial liabilities measured at amortised cost. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
12. | Taxation |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the period was as follows: |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Current tax: |
UK corporation tax | ( | ) |
Deferred tax | ( | ) |
Tax on profit/(loss) | ( | ) |
UK corporation tax has been charged at 19% (2023 - 19%). |
Tax on items charged to equity |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Revaluation reserve movement | 4,547 | (250,976 | ) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Profit/(loss) before tax | ( | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of | ( | ) |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Effect of change in tax rate | ( | ) |
Total tax charge/(credit) | 58,352 | (370,373 | ) |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
12. | Taxation - continued |
Tax effects relating to effects of other comprehensive income |
29.5.23 to 2.6.24 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation gains/(losses) |
Deferred tax on revaluation transfer | - | 4,547 |
4,547 | - | 4,547 |
1.6.22 to 28.5.23 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation gains/(losses) | (250,976 | ) | 752,929 |
Factors that may affect future tax expense |
The Finance Bill 2021 was substantively enacted on 24 May 2021 and included an increase to the main rate of Corporation Tax from 19% to 25% from the financial year beginning 1 April 2023. The rate for companies with small profits under £50,000 will remain at 19%. There is a re-introduction of marginal relief for a company with profits falling between £50,000 and £250,000. |
Deferred taxes at the balance sheet date have been measured using the enacted tax rate of 25% in order for these factors affecting the future tax expense to be reflected in these financial statements. |
13. | Dividends |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Ordinary shares of £1 each |
Final |
Interim |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
14. | Tangible fixed assets |
Freehold | Plant and | Motor | Office |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
Cost or valuation |
At 29 May 2023 |
Additions |
Disposals | ( | ) | ( | ) |
At 2 June 2024 |
Depreciation |
At 29 May 2023 |
Charge for period |
Eliminated on disposal | ( | ) | ( | ) |
At 2 June 2024 |
Net book value |
At 2 June 2024 |
At 28 May 2023 |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
14. | Tangible fixed assets - continued |
Assets held under revaluation |
Plant and machinery, motor vehicles and office equipment are all held under the historic cost method. |
Freehold property includes land and buildings that are held under the revaluation model adopted by the company during the 51 week 6 day period ended 28 May 2023, as outlined within FRS Section 17. Freehold land and buildings were valued on an open market basis on 5 October 2023 by Brown & Co, an external, independent firm of valuation experts. There has been no material movement since this valuation. |
If freehold land and buildings had not been revalued on 28 May 2023, they would have been included at the following historical cost (historic cost prior to 2009 is now considered to be deemed cost): |
2.6.24 | 28.5.23 |
£ | £ |
Freehold property under revaluation model |
Fair value | 1,857,823 | 1,760,000 |
Accumulated depreciation brought forward | - | - |
Depreciation charge in the period | 67,077 | - |
Net book value | 1,790,746 | 1,760,000 |
Freehold property at deemed cost and historic cost |
Cost | 1,364,160 | 1,266,337 |
Accumulated depreciation brought forward | 510,241 | 510,241 |
Depreciation charge in the period | 48,888 | - |
Net book value | 805,031 | 756,096 |
The excess depreciation of £18,189 has been transferred from the Revaluation Reserve to Retained | Earnings, net of deferred tax. |
2.6.24 | 28.5.23 |
£ | £ |
Balance in revaluation surplus |
Revaluation of assets now held at revaluation | 1,003,905 | 1,003,905 |
Excess depreciation released from revaluation reserve | (18,189 | ) | - |
Deferred tax attributable to revaluation gains | (250,976 | ) | (250,976 | ) |
Adjustment to deferred tax for excess depreciation | 4,548 | - |
739,288 | 752,929 |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
14. | Tangible fixed assets - continued |
Assets held at deemed cost |
Freehold property included land and buildings held at 'revaluation as deemed cost', an alternative accounting rule within the Companies Act 2006 that modifies the historical-cost convention by substituting revalued amounts for historic cost. The company opted to apply revaluation as deemed cost on it's transition to FRS 102, using the asset valuations ascertained by the use of external land and property consultants in June 1992, before the adoption of FRS 102. |
The comparable amounts for the revalued assets are below: |
2.6.24 | 28.5.23 |
£ | £ |
Freehold property at deemed cost |
Cost | 977,764 | 977,764 |
Accumulated depreciation | 411,297 | 387,271 |
Net book value | 566,467 | 590,493 |
Freehold property at historic cost |
Cost | 662,367 | 662,367 |
Accumulated depreciation | 278,306 | 262,035 |
Net book value | 384,061 | 400,332 |
2.6.24 | 28.5.23 |
£ | £ |
Balance in revaluation surplus |
Revaluation of assets now held at deemed cost | 315,397 | 315,397 |
Deferred tax attributable to revaluation gains | (78,849 | ) | (78,849 | ) |
236,548 | 236,548 |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
14. | Tangible fixed assets - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
Cost or valuation |
At 29 May 2023 |
Additions |
Transfer to ownership | - | (28,448 | ) | (28,448 | ) |
At 2 June 2024 |
Depreciation |
At 29 May 2023 |
Charge for period |
Transfer to ownership | - | (18,078 | ) | (18,078 | ) |
At 2 June 2024 |
Net book value |
At 2 June 2024 |
At 28 May 2023 |
15. | Fixed asset investments |
Listed |
investments |
£ |
Cost or valuation |
At 29 May 2023 |
Revaluations |
At 2 June 2024 |
Net book value |
At 2 June 2024 |
At 28 May 2023 |
Included within fixed asset investments are listed investments with a market value at the year end of £1,542 (2023 - £1,292), ascertained by reference to the share price as at 2 June 2024 on the stock exchange the shares are listed. The fall in fair value has been charged to the profit or loss account. At the date of approval of these financial statements, there is no indication of an impairment provision being required. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
16. | Stocks |
2.6.24 | 28.5.23 |
£ | £ |
Stocks |
Biological assets |
Harvested crops and goods |
Stocks are stated after provisions for impairment of £Nil (2023 - £Nil). |
2.6.24 | 28.5.23 |
Reconciliation of biological assets held at cost | £ | £ |
Opening balance | 353,330 | 542,828 |
Costs attributable to growing | 743,734 | 471,738 |
Sales | (38,328 | ) | - |
Harvest of crops in the ground | (772,315 | ) | (661,236 | ) |
Impairment losses | (29,644 | ) | - |
Closing balance | 256,777 | 353,330 |
17. | Debtors: amounts falling due within one year |
2.6.24 | 28.5.23 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | - | 12,065 |
Tax |
VAT |
Accrued income |
Prepayments |
Trade debtors are stated after provisions for impairment of £Nil (2023 - £Nil). |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
18. | Creditors: amounts falling due within one year |
2.6.24 | 28.5.23 |
£ | £ |
Bank loans and overdrafts (see note 20) |
Hire purchase contracts (see note 21) |
Trade creditors |
Social security and other taxes |
Other creditors |
Directors' current accounts | 1,361 | 526 |
Accrued expenses |
19. | Creditors: amounts falling due after more than one year |
2.6.24 | 28.5.23 |
£ | £ |
Hire purchase contracts (see note 21) |
20. | Loans |
An analysis of the maturity of loans is given below: |
2.6.24 | 28.5.23 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
21. | Leasing agreements |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2.6.24 | 28.5.23 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable |
operating leases |
2.6.24 | 28.5.23 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
22. | Secured debts |
The following secured debts are included within creditors: |
2.6.24 | 28.5.23 |
£ | £ |
Bank overdrafts |
Hire purchase contracts | 1,157,157 | 831,490 |
Security has been provided in respect of the bank overdraft facility in place with the company's bankers, by way of a fixed charge over various freehold land and property held by the company and a debenture (known as bond and floating charge) covering all other assets of the company. |
The hire purchase debt is secured over the asset in which the debt was used to purchase. |
23. | Financial instruments |
The carrying amount for each category of financial instrument is as follows: |
02.6.24 | 28.5.23 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Financial assets that are debt instruments measured at amortised cost | 5,790,622 | 5,636,701 |
Financial assets measured at fair value through profit or loss |
Fixed asset investments measured at fair value through profit or loss | 1,542 | 1,292 |
Financial liabilities measured at amortised cost |
Financial liabilities measured at amortised cost | 4,694,832 | 4,003,266 |
24. | Provisions for liabilities |
2.6.24 | 28.5.23 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Tax losses carried forward | ( | ) | ( | ) |
Property revaluation | 325,278 | 329,825 |
451,058 | 397,253 |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
24. | Provisions for liabilities - continued |
Deferred tax |
£ |
Balance at 29 May 2023 |
Provided during period |
Credit to Statement of Comprehensive Income during period | ( | ) |
Balance at 2 June 2024 |
Deferred tax attributable to accelerated capital allowances and unutilised taxable trading losses have been calculated at 25% (2023 - 25%), the future rate of taxation substantively enacted at the balance sheet date. |
The property revaluation provision consists of the deferred tax liability relating to the revaluation gains (or movements therein) on property held within tangible assets, calculated at 25% (2023 - 25%), the future rate of taxation substantively enacted at the balance sheet date. The deferred tax, and any subsequent movement, is taken to the revaluation reserve. |
25. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2.6.24 | 28.5.23 |
value: | £ | £ |
Ordinary | £1 | 10,000 | 10,000 |
Share capital - The called up share capital represents the nominal value of the shares issued. |
There is a single class of ordinary shares which have full voting rights attached. There are no restrictions on the distribution of dividends and the repayment of capital. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
26. | Reserves |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 29 May 2023 | 4,811,436 | 989,477 | 5,800,913 |
Profit for the period |
Dividends | ( | ) | ( | ) |
Deferred tax on revaluation |
transfer | - | 4,547 | 4,547 |
Excess depreciation transfer | 18,188 | (18,188 | ) | - |
At 2 June 2024 | 4,895,697 | 975,836 | 5,871,533 |
Retained earnings - This reserve records distributable retained earnings and accumulated losses, net of dividend payments made. |
Revaluation reserve - This is a non-distributable reserve that records asset revaluations and corresponding fair value movements on assets recognised in other comprehensive income, net of any deferred tax. |
On transition to FRS 102, certain assets that previously adopted the revaluation model were chose to be held at 'revaluation as deemed cost' and presented within the revaluation reserve, net of deferred tax. |
The revaluation model was then re-adopted during the period ended 28 May 2023, and the revaluation gain is recognised in the revaluation reserve, net of deferred tax. Excess depreciation through the profit or loss on revalued assets, being an amount equal to the difference between the depreciation on revalued amounts and the depreciation on historical cost amounts, is transferred each year from the Revaluation Reserve to Retained Earnings, net of the corresponding deferred tax movement. Any further revaluation adjustments to fair value are reflected within this reserve, with a corresponding adjustment to deferred tax. |
27. | Pension commitments |
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension expense within the profit or loss represents contributions payable by the company to the fund, amounting to £159,656 (2023 - £157,172). |
At the balance sheet date there were outstanding contributions payable to the fund of £16,682 (2023 - £13,960). |
28. | Capital commitments |
2.6.24 | 28.5.23 |
£ | £ |
Contracted but not provided for in the |
financial statements |
The capital commitments disclosed in these financial statements relate to contractual agreements for plant and machinery. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
29. | Directors' advances, credits and guarantees |
The following advances and credits to directors subsisted during the periods ended 2 June 2024 and 28 May 2023: |
2.6.24 | 28.5.23 |
£ | £ |
Balance outstanding at start of period |
Amounts advanced |
Amounts repaid | ( | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period |
Balance outstanding at start of period | ( | ) |
Amounts advanced |
Amounts repaid | ( | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | ( | ) |
Balance outstanding at start of period | ( | ) |
Amounts advanced |
Amounts repaid | ( | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of period | ( | ) |
30. | Related party disclosures |
No transactions were undertaken with directors or related parties such as are required to be disclosed under the Financial Reporting Standard 102. |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
31. | Reconciliation of profit/(loss) for the financial period to cash generated from operations |
Period | Period |
29.5.23 | 1.6.22 |
to | to |
2.6.24 | 28.5.23 |
£ | £ |
Profit/(loss) for the financial period | ( | ) |
Depreciation charges |
Profit on disposal of fixed assets | ( | ) | ( | ) |
(Gain)/loss on revaluation of fixed assets | (250 | ) | 128 |
Finance costs | 91,097 | 53,678 |
Finance income | (13,945 | ) | (1,004 | ) |
Taxation | ( | ) |
847,887 | (936,913 | ) |
Decrease in stocks |
Increase in trade and other debtors | ( | ) | ( | ) |
Increase in trade and other creditors |
Cash generated from operations | ( | ) |
32. | 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: |
Period ended 2 June 2024 |
2.6.24 | 29.5.23 |
£ | £ |
Cash and cash equivalents | 818,072 | 969,459 |
Bank overdrafts | ( | ) | ( | ) |
88,343 | (287,515 | ) |
Period ended 28 May 2023 |
28.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 969,459 | 2,063,141 |
Bank overdrafts | ( | ) |
(287,515 | ) | 2,063,141 |
Alfred G Pearce Limited (Registered number: 00980985) |
Notes to the Financial Statements - continued |
for the Period 29 May 2023 to 2 June 2024 |
33. | Analysis of changes in net debt |
Other |
non-cash |
At 29.5.23 | Cash flow | changes | At 2.6.24 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 969,459 | (151,387 | ) | 818,072 |
Bank overdrafts | (1,256,974 | ) | 527,245 | (729,729 | ) |
(287,515 | ) | 88,343 |
Debt |
Finance leases | (831,490 | ) | 348,201 | - | (1,157,157 | ) |
(831,490 | ) | 348,201 | - | (1,157,157 | ) |
Total | (1,119,005 | ) | 724,059 | - | (1,068,814 | ) |