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REGISTRAR OF COMPANIES

Registration number: SC502456

Simpson Farms Limited

Unaudited Financial Statements

31 March 2024

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Simpson Farms Limited

Contents

Accountants' Report

1

Balance Sheet

2

Notes to the Financial Statements

4

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Simpson Farms Limited
for the Year Ended 31 March 2024

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Simpson Farms Limited for the year ended 31 March 2024 as set out on pages 2 to 11 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Simpson Farms Limited, as a body, in accordance with the terms of our engagement letter dated 30 May 2024. Our work has been undertaken solely to prepare for your approval the accounts of Simpson Farms Limited and state those matters that we have agreed to state to the Board of Directors of Simpson Farms Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Simpson Farms Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Simpson Farms Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Simpson Farms Limited. You consider that Simpson Farms Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Simpson Farms Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.



Dodd & Co Limited
Chartered Accountants
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

16 August 2024

 

Simpson Farms Limited

(Registration number: SC502456)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

5

3,829,304

3,582,820

Current assets

 

Stocks

1,802,630

1,826,525

Debtors

6

448,422

448,656

 

2,251,052

2,275,181

Creditors: Amounts falling due within one year

7

(2,041,127)

(1,678,712)

Net current assets

 

209,925

596,469

Total assets less current liabilities

 

4,039,229

4,179,289

Creditors: Amounts falling due after more than one year

7

(2,140,301)

(2,390,056)

Provisions for liabilities

(613,855)

(542,505)

Net assets

 

1,285,073

1,246,728

Capital and reserves

 

Allotted, called up and fully paid share capital

260,100

300,100

Profit and loss account

1,024,973

946,628

Total equity

 

1,285,073

1,246,728

 

Simpson Farms Limited

(Registration number: SC502456)
Balance Sheet as at 31 March 2024 (continued)

For the financial year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 16 August 2024 and signed on its behalf by:
 

.........................................

P R D Simpson

Director

.........................................

S E Simpson

Director

 

Simpson Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

1

General information

The company is a private company limited by share capital, incorporated in Scotland.

The address of its registered office is:
Culscadden Farm
Garlieston
NEWTON STEWART
DG8 8AD

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises 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 shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Government grants

Government grants such as the basic payment scheme are included in the profit and loss account when all the necessary conditions for receipt have been met.

Grants relating to revenue are recognised in the profit and loss account on a systematic basis over the periods in which the related costs are recognised for which the grant is intended to compensate.

Grants for the purpose of giving immediate financial support with no future related costs to be incurred are recognised in the profit and loss account when the grant proceeds become receivable.


Other grants
Other grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets on a basis consistent with the depreciation policy.

 

Simpson Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

Basic payment scheme

The amount paid in connection with the purchase of the basic payment scheme entitlement was amortised over the useful economic life of that entitlement, and has now been fully amortised.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

4% straight line

Plant and equipment

5% and 15% reducing balance

Motor vehicles

25% reducing balance

Office equipment

3 year straight line

Land and buildings relate to tenants improvements on land leased by the company from the shareholders. As the long term intention is for the farming operation to continue, it is deemed a true and fair view to depreciate the assets on a 4% straight line basis over their useful economic life, and not the duration of the lease.

 

Simpson Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

Trade debtors

Trade debtors are amounts due from customers for the sale of goods or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Trading stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. The cost of livestock represents the purchase cost plus any additional costs of rearing the animal. Net realisable value is based on selling price less anticipated selling costs. Crop stock is valued at fair value less any anticipated costs to sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method where due after more than one year.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Simpson Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Preference shares are classified as equity when the shares are redeemable in the future at the option of the company.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 23 (2023 - 20).

 

Simpson Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

4

Intangible assets

Basic payment scheme
 £

Total
£

Cost or valuation

At 1 April 2023

85,791

85,791

At 31 March 2024

85,791

85,791

Amortisation

At 1 April 2023

85,791

85,791

At 31 March 2024

85,791

85,791

Carrying amount

At 31 March 2024

-

-

 

Simpson Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

5

Tangible assets

Land and buildings
£

Plant and equipment
 £

Motor vehicles
 £

Office equipment
£

Total
£

Cost or valuation

At 1 April 2023

1,959,497

2,702,335

52,521

6,360

4,720,713

Additions

15,697

572,305

26,745

7,328

622,075

Disposals

-

(77,597)

-

-

(77,597)

At 31 March 2024

1,975,194

3,197,043

79,266

13,688

5,265,191

Depreciation

At 1 April 2023

276,524

824,946

32,555

3,868

1,137,893

Charge for the year

78,851

257,197

7,725

2,320

346,093

Eliminated on disposal

-

(48,099)

-

-

(48,099)

At 31 March 2024

355,375

1,034,044

40,280

6,188

1,435,887

Carrying amount

At 31 March 2024

1,619,819

2,162,999

38,986

7,500

3,829,304

At 31 March 2023

1,682,973

1,877,389

19,966

2,492

3,582,820

6

Debtors

2024
£

2023
£

Trade debtors

375,407

380,525

Other debtors

73,015

68,131

448,422

448,656

 

Simpson Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

7

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

8

1,495,144

1,079,034

Trade creditors

 

391,101

435,137

Taxation and social security

 

4,094

2,759

Corporation tax liability

 

-

1,655

Other creditors

 

150,788

160,127

 

2,041,127

1,678,712

Due after one year

 

Loans and borrowings

8

2,019,321

2,256,731

Other creditors

 

120,980

133,325

 

2,140,301

2,390,056

2024
£

2023
£

After more than five years by instalments

271,005

736,539

After more than five years not by instalments

905,500

905,500

1,176,505

1,642,039

8

Loans and borrowings

2024
£

2023
£

Current loans and borrowings

Bank borrowings

91,797

64,212

Bank overdrafts

430,551

4,017

Finance lease liabilities

127,932

119,895

Other borrowings

844,864

890,910

1,495,144

1,079,034

 

Simpson Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2024 (continued)

Current loans and borrowings includes the following liabilities, on which security has been given by the company:

2024
£

2023
£

Bank borrowings

91,797

64,212

Bank overdrafts

430,551

4,017

Finance lease liabilities

127,932

119,895

650,280

188,124

Bank borrowings are secured by fixed and floating charges over the company's assets.

Bank overdrafts are secured by fixed and floating charges over the company's assets.

Finance lease liabilities are secured on the assets to which they relate.

2024
£

2023
£

Non-current loans and borrowings

Bank borrowings

559,692

668,616

Finance lease liabilities

130,636

146,860

Other borrowings

1,328,993

1,441,255

2,019,321

2,256,731

Non-current loans and borrowings includes the following liabilities, on which security has been given by the company:

2024
£

2023
£

Bank borrowings

559,692

668,616

Finance lease liabilities

130,636

146,860

690,328

815,476

Bank borrowings are secured by fixed and floating charges over the company's assets.

Finance lease liabilities are secured on the assets to which they relate.

9

Related party transactions

Directors guarantees

Certain directors and shareholders have provided personal guarantees in respect of the company's other borrowings.