Company registration number 01333687 (England and Wales)
C & P BIRD BROS. LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
C & P BIRD BROS. LIMITED
COMPANY INFORMATION
Directors
Mr M Bird
Mr C Bird
Mr S Bird
Mr P Bird
Mr A Mattei
Secretary
Mr C Bird
Company number
01333687
Registered office
Sunny Farm
Pertenhall Road
Swineshead
MK44 2SU
Auditor
Ellacotts Audit Services Limited
Countrywide House
23 West Bar
Banbury
Oxfordshire
England
OX16 9SA
Bankers
HSBC
High Street
Rushden
Northants
OX16 5ED
C & P BIRD BROS. LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
C & P BIRD BROS. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -
The directors present the strategic report for the year ended 30 April 2024.
Principal activities
The principal activity of the company continued to be that of production and marketing of fresh farm eggs.
Review of the business
The company continued its principal activity of egg production and the sale of eggs throughout the current year.
During the period, the company experienced a growth in turnover achieving £24.8m, an increase of 11.7%. This was predominantly achieved by supplying eggs at more sustainable pricing levels after poor returns across the industry in recent years.
The Gross profit margin increased against the previous year achieving 38.67% an increase of 31.08%. The Directors will continue to review all aspects of the business to identify ways of improving profitability, adding value, and controlling cost. Historically, this strategy has focused around vertically integrating the business with the primary aim of operational efficiencies.
The company has a policy of investing in its tangible fixed assets. The Directors consider such an investment as necessary for the continued success in the medium to long term of the business. Current year investment amounted to £1.2m (£103k in 2023) The Directors consider the company to be in a strong financial position, with net assets of £12.85m as of 30 April 2023.
During the year under review, the business began its Vision 2028 barn-egg conversion project with ambitious plans to fully convert its Sunny farm site from enriched colony caged egg production to higher welfare barn-laid egg production by the end of 2028.
This conversion will require much planning and substantial financial investment in new equipment and facilities.
Finally, the business has continued to invest in staff at all levels during the year, which it believes aids business development and productivity gains.
Loss of key accreditation - impact to business
During the year, the business unfortunately saw the temporary removal of its British Lion Quality accreditation after some practices were identified that were not in line with company values. The business reacted and acted as a matter of urgency, investigating the matter thoroughly before being reaccredited in December 2023.
The business implemented an extensive package of measures to ensure we not only meet but exceed the required standards moving forward. This included additional recruitment and staff retraining, frequent assessments by independent external auditors and regular visits by poultry consultants and poultry veterinarians.
The directors would like to extend thanks to the number of stakeholders including customers, suppliers, employees and industry peers who supported the business during this difficult time.
C & P BIRD BROS. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Principal risks and uncertainties
The management of the business and the execution of the company's strategy are subject to a number of risks. The risks are reviewed by the Board and appropriate processes put in place to monitor and mitigate them.
The key business risks affecting the company are set out below.
Oversupply in the market
The sales price of eggs is subject to the availability of eggs in the wider marketplace which in turn creates a market rate sales price. Often and as seen in recent years, and due to over expansion, too much availability has resulted in margin pressures being squeezed.
The directors carefully monitor the supply and demand balance for its operations and continues to review the products it offers to the marketplace and adapt and react as necessary in line with consumer and trade demands.
Cost of raw materials
Feed costs continue to form the most significant part of the total cost of the production of eggs. The cost of feed fluctuates on the global market and as such is sensitive to supply and demand. The company aims to de-risk these market fluctuations and constantly monitors the raw material costs for its feed rations.
Packaging, utilities, and fuel pricing continue to rise but are also regularly monitored.
Loss of key customers
The company works progressively with its customer base with the aim of building long-term business relationships and reacting as and where possible to the needs of the end consumers demands. The company serves an extensive mix of customers across the retail and foodservice sectors to mitigate risk with many of these customers having been supplied by Bird Bros for decades.
Emphasis has always been on supplying the highest quality products and providing a first-class service to our customers.
Outbreak of disease
The risk of disease outbreaks continues to be a threat for the company and the wider industry. The business aims to reduce its exposure by having production sites in multiple areas. Government guidance is strictly followed, and the directors encourage proactive biosecurity measures to minimize risk on both company owned and contracted farms.
Loss of key accreditation
As stated above, the loss of a key trading accreditation, proved inhibitive for the business. The company has mitigated this risk as and where possible with investment made in equipment, staffing and enhanced auditing.
Interest rate risk
The companies interest rate policy has the objective to minimise interest expense. The company’s bank borrowings are partly on fixed and variable rates.
C & P BIRD BROS. LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Key performance indicators
The directors consider the following as the main financial KPIs for the business:
2024 2023
Turnover £24,843k £21,944k
Gross profit £9,324k £6,474k
Net Profit/(Loss) £2,874k £1,280k
EBITDA £4,968k £3,000k
Net assets £12,778k £10,024k
Other performance indicators
Environment
The business always strives to minimise its environmental impact through evaluating the way in which it operates.
The removal of waste where possible, investing in the most modern equipment and generating clean, renewable energy through its solar panels are ways it hopes to achieve this.
Plastic usage has either been removed completely or significantly reduced and the company has planted extensive tree and hedgerow plantations in addition to wildflower meadows to encourage local biodiversity.
Mr M Bird
Director
14 October 2024
C & P BIRD BROS. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 April 2024.
Results and dividends
The profit for the year, after taxation, amounted to £2,873,878 (2023 - £1,280,370).
Dividends of £120,000 (2023 - £144,000) were paid for the year under review.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr M Bird
Mr C Bird
Mr S Bird
Mr P Bird
Mr A Mattei
Post reporting date events
There have been no significant events affecting the company since the year end.
Future developments
The directors continue to review all aspects of the business to identify ways of improving profitability and further control costs and are confident about the company's future prospects.
Auditor
The auditors, Ellacotts LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr M Bird
Director
14 October 2024
C & P BIRD BROS. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF C & P BIRD BROS. LIMITED
- 5 -
Opinion
We have audited the financial statements of C & P Bird Bros. Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 30 April 2024 and of its 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.
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 Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our 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.
C & P BIRD BROS. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C & P BIRD BROS. LIMITED
- 6 -
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 in relation to which 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 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 directors' responsibilities statement, 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 is 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.
Auditor's 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 an auditor's report 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.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK),we exercise professional judgment and maintain professional scepticism throughout the audit. We also performed the following procedures:
Enquiry of management and those charged with governance around actual and potential litigation and claims.
Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
Reviewing minutes of meetings of those charged with governance.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Auditing the risk of management override of controls, including thorough testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
C & P BIRD BROS. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF C & P BIRD BROS. LIMITED
- 7 -
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 an auditor's report 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.
David Stevens BA FCA
Senior Statutory Auditor
For and on behalf of Ellacotts Audit Services Limited
Chartered Accountants
Statutory Auditor
Countrywide House
23 West Bar
Banbury
Oxfordshire
England
OX16 9SA
14 October 2024
C & P BIRD BROS. LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
24,842,991
21,943,782
Cost of sales
(15,518,920)
(15,470,043)
Gross profit
9,324,071
6,473,739
Distribution costs
(1,152,298)
(1,064,946)
Administrative expenses
(4,076,171)
(3,669,612)
Operating profit
4
4,095,602
1,739,181
Interest payable and similar expenses
8
(315,465)
(267,025)
Profit before taxation
3,780,137
1,472,156
Tax on profit
9
(906,259)
(191,786)
Profit for the financial year
2,873,878
1,280,370
The profit and loss account has been prepared on the basis that all operations are continuing operations.
C & P BIRD BROS. LIMITED
BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
9,115
Tangible assets
12
14,188,086
14,227,714
14,188,086
14,236,829
Current assets
Stocks
13
1,710,910
1,666,888
Debtors
14
3,325,409
3,193,812
Cash at bank and in hand
1,959,176
435,286
6,995,495
5,295,986
Creditors: amounts falling due within one year
15
(4,276,463)
(4,975,837)
Net current assets
2,719,032
320,149
Total assets less current liabilities
16,907,118
14,556,978
Creditors: amounts falling due after more than one year
16
(4,129,398)
(4,533,136)
Net assets
12,777,720
10,023,842
Capital and reserves
Called up share capital
21
5,000
5,000
Revaluation reserve
3,002,316
3,002,316
Profit and loss reserves
9,770,404
7,016,526
Total equity
12,777,720
10,023,842
The financial statements were approved by the board of directors and authorised for issue on 14 October 2024 and are signed on its behalf by:
Mr M Bird
Director
Company registration number 01333687 (England and Wales)
C & P BIRD BROS. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
5,000
3,002,316
5,880,156
8,887,472
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
1,280,370
1,280,370
Dividends
10
-
-
(144,000)
(144,000)
Balance at 30 April 2023
5,000
3,002,316
7,016,526
10,023,842
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
2,873,878
2,873,878
Dividends
10
-
-
(120,000)
(120,000)
Balance at 30 April 2024
5,000
3,002,316
9,770,404
12,777,720
C & P BIRD BROS. LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
5,856,694
1,124,561
Interest paid
(315,465)
(267,025)
Income taxes paid
(779,164)
Net cash inflow from operating activities
4,762,065
857,536
Investing activities
Proceeds from disposal of intangibles
9,115
Purchase of tangible fixed assets
(1,211,552)
(102,719)
Proceeds from disposal of tangible fixed assets
6,410
32,732
Net cash used in investing activities
(1,196,027)
(69,987)
Financing activities
Repayment of bank loans
(631,064)
(606,183)
Payment of finance leases obligations
(136,456)
(183,666)
Dividends paid
(120,000)
(144,000)
Net cash used in financing activities
(887,520)
(933,849)
Net increase/(decrease) in cash and cash equivalents
2,678,518
(146,300)
Cash and cash equivalents at beginning of year
(1,314,963)
(1,168,663)
Cash and cash equivalents at end of year
1,363,555
(1,314,963)
Relating to:
Cash at bank and in hand
1,959,176
435,286
Bank overdrafts included in creditors payable within one year
(595,621)
(1,750,249)
C & P BIRD BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
1
Accounting policies
Company information
C & P Bird Bros. Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sunny Farm, Pertenhall Road, Swineshead, MK44 2SU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computer software
Over the life of the software
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
C & P BIRD BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% or 4% of cost
Plant and equipment
15% of net book value or 4 - 6 years straight line
Fixtures and fittings
15% of net book value or 4 years straight line
Motor vehicles
12.5% of net book value or 5 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.7
Stocks
Stocks which comprise birds, eggs, feed and other consumables are valued at the lower of cost and net realisable value after making due allowances for obsolete and slow-moving stocks.
Birds housed are valued at original cost plus an additional weekly value up to 20 weeks, this being their prime age for laying. The value of colony birds is then written down over the next 63 weeks and free range housed birds over the next 56 weeks.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
C & P BIRD BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
C & P BIRD BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
C & P BIRD BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 16 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Valuation of bird stock
The number of birds at the year end is calculated by taking the number of birds received less mortalities during the period. The value of the birds is dependent on the age of the bird at the period end.
The value of bird stock is calculated by taking the purchase price of a bird, plus additional weekly value based on the cost to rear them (feed, medication, direct overhead cost etc.) up to 20 weeks, this being their prime age for laying. The value of colony birds is then written down over the next 63 weeks and free range housed birds over the next 56 weeks. The residual value of a bird is estimated to be £0.06.
Management review the above estimations based on actual data for that period and make any changes as required.
C & P BIRD BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Egg sales
24,842,991
21,943,782
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(3,592)
(15,120)
Depreciation of owned tangible fixed assets
1,237,007
1,261,073
Loss on disposal of tangible fixed assets
7,763
-
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
17,500
15,400
For other services
Taxation compliance services
1,600
1,500
All other non-audit services
2,250
2,000
3,850
3,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production and processing
47
47
Management and Admin
13
12
Distribution
13
12
Total
73
71
C & P BIRD BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
6
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,112,758
1,957,652
Social security costs
205,135
197,889
Pension costs
56,903
44,796
2,374,796
2,200,337
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
270,302
218,776
Company pension contributions to defined contribution schemes
6,899
6,189
277,201
224,965
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
113,208
79,705
Company pension contributions to defined contribution schemes
2,796
2,391
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
315,465
267,025
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
906,259
352,664
C & P BIRD BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
9
Taxation
2024
2023
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
(160,878)
Total tax charge
906,259
191,786
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
3,780,137
1,472,156
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.50%)
945,034
287,070
Tax effect of expenses that are not deductible in determining taxable profit
(1,545)
(3,079)
Permanent capital allowances in excess of depreciation
(37,230)
(92,205)
Taxation charge for the year
906,259
191,786
10
Dividends
2024
2023
£
£
Final paid
120,000
144,000
C & P BIRD BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
11
Intangible fixed assets
Computer software
£
Cost
At 1 May 2023
9,115
Disposals
(9,115)
At 30 April 2024
Amortisation and impairment
At 1 May 2023 and 30 April 2024
Carrying amount
At 30 April 2024
At 30 April 2023
9,115
12
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
17,276,221
13,764,467
126,669
958,657
32,126,014
Additions
288,495
529,431
78,578
315,048
1,211,552
Disposals
(843,290)
(776,729)
(385,170)
(2,005,189)
At 30 April 2024
16,721,426
13,517,169
205,247
888,535
31,332,377
Depreciation and impairment
At 1 May 2023
6,862,182
10,247,258
76,283
712,577
17,898,300
Depreciation charged in the year
615,106
514,755
25,597
81,549
1,237,007
Eliminated in respect of disposals
(843,292)
(776,734)
(370,990)
(1,991,016)
At 30 April 2024
6,633,996
9,985,279
101,880
423,136
17,144,291
Carrying amount
At 30 April 2024
10,087,430
3,531,890
103,367
465,399
14,188,086
At 30 April 2023
10,414,039
3,517,209
50,386
246,080
14,227,714
13
Stocks
2024
2023
£
£
Raw materials and consumables
1,603,253
1,576,069
Work in progress
107,657
90,819
1,710,910
1,666,888
C & P BIRD BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 21 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,800,233
2,923,982
Corporation tax recoverable
3,368
Other debtors
227,081
127,270
Prepayments and accrued income
270,908
112,005
3,298,222
3,166,625
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 19)
27,187
27,187
Total debtors
3,325,409
3,193,812
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
1,246,467
2,673,849
Obligations under finance leases
18
31,134
122,162
Trade creditors
2,092,027
1,402,618
Corporation tax
476,391
352,664
Other taxation and social security
61,972
60,891
Other creditors
10,051
10,051
Accruals and deferred income
358,421
353,602
4,276,463
4,975,837
Bank loans and overdrafts are secured by a mortgage over the company's freehold land, a fixed charge over book debts and a floating charge over all other company assets.
Obligations under finance lease and hire purchase contracts totalling £41,428 (2023 - £177,884) are secured on the assets to which they relate.
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
4,119,104
4,477,414
Obligations under finance leases
18
10,294
55,722
4,129,398
4,533,136
C & P BIRD BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
16
Creditors: amounts falling due after more than one year
(Continued)
- 22 -
17
Loans and overdrafts
2024
2023
£
£
Bank loans
4,769,950
5,401,014
Bank overdrafts
595,621
1,750,249
5,365,571
7,151,263
Payable within one year
1,246,467
2,673,849
Payable after one year
4,119,104
4,477,414
Bank loans and overdrafts are secured by a mortgage over the company's freehold land, a fixed charge over book debts and a floating charge over all other company assets.
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
31,134
122,162
In two to five years
10,294
55,722
41,428
177,884
Finance lease payments represent rentals payable by the company for certain items of plant and machinery.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
27,187
27,187
There were no deferred tax movements in the year.
C & P BIRD BROS. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
56,903
44,796
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,000
5,000
5,000
5,000
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,873,878
1,280,370
Adjustments for:
Taxation charged
906,259
191,786
Finance costs
315,465
267,025
Loss on disposal of tangible fixed assets
7,763
-
Depreciation and impairment of tangible fixed assets
1,237,007
1,261,073
Movements in working capital:
(Increase)/decrease in stocks
(44,022)
10,560
Increase in debtors
(134,965)
(566,929)
Increase/(decrease) in creditors
695,309
(1,319,324)
Cash generated from operations
5,856,694
1,124,561
23
Analysis of changes in net debt
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
435,286
1,523,890
1,959,176
Bank overdrafts
(1,750,249)
1,154,628
(595,621)
(1,314,963)
2,678,518
1,363,555
Borrowings excluding overdrafts
(5,401,014)
631,064
(4,769,950)
Obligations under finance leases
(177,884)
136,456
(41,428)
(6,893,861)
3,446,038
(3,447,823)
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