Caseware UK (AP4) 2023.0.135 2023.0.135 2023-08-312023-08-31false0false2022-06-01false0false 09423979 2021-06-01 2022-05-31 09423979 2022-06-01 2023-08-31 09423979 2023-08-31 09423979 2022-05-31 09423979 2021-06-01 09423979 1 2022-06-01 2023-08-31 09423979 1 2021-06-01 2022-05-31 09423979 d:Exceptional 2022-06-01 2023-08-31 09423979 d:Exceptional 2021-06-01 2022-05-31 09423979 e:Director1 2022-06-01 2023-08-31 09423979 e:Director2 2022-06-01 2023-08-31 09423979 e:RegisteredOffice 2022-06-01 2023-08-31 09423979 d:FurnitureFittings 2022-06-01 2023-08-31 09423979 d:FurnitureFittings 2023-08-31 09423979 d:FurnitureFittings 2022-05-31 09423979 d:FurnitureFittings d:OwnedOrFreeholdAssets 2022-06-01 2023-08-31 09423979 d:CurrentFinancialInstruments 2023-08-31 09423979 d:CurrentFinancialInstruments 2022-05-31 09423979 d:CurrentFinancialInstruments 4 2023-08-31 09423979 d:CurrentFinancialInstruments 4 2022-05-31 09423979 d:CurrentFinancialInstruments d:WithinOneYear 2023-08-31 09423979 d:CurrentFinancialInstruments d:WithinOneYear 2022-05-31 09423979 f:UnitedKingdom 2022-06-01 2023-08-31 09423979 f:UnitedKingdom 2021-06-01 2022-05-31 09423979 f:RestEuropeOutsideUK 2022-06-01 2023-08-31 09423979 f:RestEuropeOutsideUK 2021-06-01 2022-05-31 09423979 d:UKTax 2022-06-01 2023-08-31 09423979 d:UKTax 2021-06-01 2022-05-31 09423979 d:ShareCapital 2022-06-01 2023-08-31 09423979 d:ShareCapital 2023-08-31 09423979 d:ShareCapital 2021-06-01 2022-05-31 09423979 d:ShareCapital 2022-05-31 09423979 d:ShareCapital 2021-06-01 09423979 d:RetainedEarningsAccumulatedLosses 2022-06-01 2023-08-31 09423979 d:RetainedEarningsAccumulatedLosses 2023-08-31 09423979 d:RetainedEarningsAccumulatedLosses 2021-06-01 2022-05-31 09423979 d:RetainedEarningsAccumulatedLosses 2022-05-31 09423979 d:RetainedEarningsAccumulatedLosses 2021-06-01 09423979 d:AcceleratedTaxDepreciationDeferredTax 2023-08-31 09423979 d:AcceleratedTaxDepreciationDeferredTax 2022-05-31 09423979 e:OrdinaryShareClass1 2022-06-01 2023-08-31 09423979 e:OrdinaryShareClass1 2023-08-31 09423979 e:OrdinaryShareClass1 2022-05-31 09423979 e:FRS102 2022-06-01 2023-08-31 09423979 e:Audited 2022-06-01 2023-08-31 09423979 e:FullAccounts 2022-06-01 2023-08-31 09423979 e:PrivateLimitedCompanyLtd 2022-06-01 2023-08-31 09423979 4 2022-06-01 2023-08-31 09423979 g:PoundSterling 2022-06-01 2023-08-31 iso4217:GBP xbrli:shares xbrli:pure
Company registration number: 09423979







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
31 AUGUST 2023


CROPTHETICS LIMITED






































img11eb.png                        

 


CROPTHETICS LIMITED
 


 
COMPANY INFORMATION


Directors
G Singh 
J Walia 




Registered number
09423979



Registered office
Lees Mill Lane
Linthwaite

Huddersfield

West Yorkshire

HD7 5QE




Independent auditors
Menzies LLP
Chartered Accountants & Statutory Auditor

Lynton House

7-12 Tavistock Square

London

WC1H 9LT





 


CROPTHETICS LIMITED
 



CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Analysis of net debt
13
Notes to the financial statements
14 - 22


 


CROPTHETICS LIMITED
 


 
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 AUGUST 2023

Introduction
 
The directors present their strategic report for the period ended 31 August 2023.

Business review
 
Turnover for the 15 month period to 31 August 2023 was £57.4m, which represents a relative decline in turnover when comparing to the 12 month period to 31 May 2022. This is largely due to external market factors such as poor weather conditions resulting in a fall in demand for agrochemicals during the period. By contrast, there has been a significant increase in gross profit margins due to management's success in controlling costs. As a result overall profitability has increased significantly during the period. The company's key financial and other performance indicators during the year were as follows:
 

    31-Aug-23
   31-May-22
Turnover
£57,356,960
£53,429,231 
Gross profit
  £6,022,359
  £3,877,280 
As a % of sales
          10.50%
           7.26%
Operating results
  £5,726,426
  £2,233,727


Principal risks and uncertainties
 
The directors have considered the principal risks and uncertainties affecting the company as at 31 August 2023 and up to the date of this report.
The company's operations expose it to a variety of financial risks that include the effects of changes in credit risk and liquidity risk.The company has debt finance but does not use derivative financial instruments to manage interest rate and as such, no hedge accounting is applied.
The company's financial instruments comprise cash and liquid resources, various items such as trade debtors, trade creditors etc, that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. It is, and has been throughout the period under review, the company's policy that no trading in financial instruments shall be undertaken. The main risks arising from the company's financial instruments are market risk, credit risk, business and operational risk.
Market risk
Market risk includes failure to anticipate the pricing and market changes. External influences, such as fluctuations in commodity prices, foreign currency exchange rates and currency values could have a material adverse effect on our result of operation and financial position. The group seeks to manage the risk through diversification of its portfolio of products, geographies into which it sells and the currencies in which it operates.
Credit risk
The group trades only with recognised, creditworthy third parties. It is the group's policy that all customers who wish to trade on credit terms are subject to credit vetting procedures. In addition, receivables balances are monitored on an ongoing basis with the result that the group's exposure to bad debts is not significant.
Business and Operational risk
We sell our products in competitive markets, and the success of our competitve strategy depends on our products and retaining customers and distributors. The group manages business and operational risk by ensuring adequate operating margins are maintained.

Page 1

 


CROPTHETICS LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023

Directors' statement of compliance with duty to promote the success of the Company
 
Section 172 of the Companies Act requires Directors to take into consideration the interests of stakeholders and other matters in their decision making. The Board considers that the decisions they have made during the financial year and the way they have acted have been in the best interests of stakeholders and related parties, having regard for matters set out in s172(1) (a-f) of the Act.
The Board acts in good faith and in a manner that they consider promotes the long-term success of the business for the benefit of its stakeholders. The directors are constantly exploring opportunities to generate additional business. The company’s key stakeholders are its internal staff, clients, and suppliers. The company engages with its employees, clients and suppliers through several means including:
Clients:
Providing support and advice to clients to build sustainable long-term business relationships to help them achieve their goals and objectives.
Suppliers:
Effective communications and updates on contracts to develop sustainable long-term business relationships.


This report was approved by the board and signed on its behalf.



J Walia
Director

Date: 21 October 2024

Page 2

 


CROPTHETICS LIMITED
 


 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 AUGUST 2023

The directors present their report and the financial statements for the period ended 31 August 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company in the year under review was that of trading in agro chemicals.

Results and dividends

The profit for the period, after taxation, amounted to £4,517,411 (2022 - £1,800,418).

Dividends for the period ended 31 August 2023 amounted to £926,036 (2022: £NIL).

Directors

The directors who served during the period were:

G Singh 
J Walia 

Engagement with suppliers, customers and others

TheThe directors regularly monitor key supplier relationships, relevant developments and engagement activities. Contracts and activity with customers have been reviewed by the directors in the context of the relevant transactions.
The directors have always paid special attention to issues related to customers and suppliers. During the period ended 31 August 2023, the directors regularly monitor the performance of customers and suppliers and the impacts on them of the wider macroeconomic and geopolitical environment. 

Page 3

 


CROPTHETICS LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2023

Matters covered in the Strategic report

The principal risks and uncertainties that the group is exposed to in respect of foreign currency risk, liquidity risk and credit risk have been disclosed in the strategic report.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsMenzies LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





J Walia
Director

Date: 21 October 2024

Page 4

 


CROPTHETICS LIMITED
 

img4c10.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CROPTHETICS LIMITED

Opinion


We have audited the financial statements of Cropthetics Limited (the 'Company') for the period ended 31 August 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 31 August 2023 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 United Kingdom, including the Financial Reporting Council'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 other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 


CROPTHETICS LIMITED


img04b6.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CROPTHETICS LIMITED (CONTINUED)

Opinion 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 period 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 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 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 Directors' responsibilities statement set out on page 3, 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.
Page 6

 


CROPTHETICS LIMITED


img1271.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CROPTHETICS LIMITED (CONTINUED)



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 an Auditors' 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.


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 detailed below:

The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:
• The Companies Act 2006;
• Financial Reporting Standard 102;
• UK employment legislation;
• UK health and safety legislation;
• General Data Protection Regulations;
• UK tax legislation;
We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We understood how the Company is complying with those legal and regulatory frameworks by making inquiries to management and those responsible for legal and compliance procedures.
The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. He did not identify any issues in this area.
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:
• Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
• Challenging assumptions and judgements made by management in its significant accounting estimates; and
• Identifying and testing journal entries, in particular any journal entries posted outside of the normal working patterns of the accounts team, or with unusual descriptions or account combinations.
As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
• The application of inappropriate judgements or estimation to manipulate the financial position in the calculation of the year end provisions;
• The posting of unusual journals and complex transactions; or
• The use of management override of controls to manipulate results.


Page 7

 


CROPTHETICS LIMITED


img3b6c.png
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CROPTHETICS LIMITED (CONTINUED)

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.


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 Auditors' report.


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 2006Our 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 Auditors' 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.





Robin Hopkins (Senior statutory auditor)
  
for and on behalf of
Menzies LLP
 
Chartered Accountants
Statutory Auditor
  
Lynton House
7-12 Tavistock Square
London
WC1H 9LT

21 October 2024
Page 8

 


CROPTHETICS LIMITED
 


 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 AUGUST 2023

31 August 2023
31 May
2022
Note
£
£

  

Turnover
 4 
57,356,960
53,429,231

Cost of sales
  
(51,334,601)
(49,551,951)

Gross profit
  
6,022,359
3,877,280

Administrative expenses
  
(1,270,791)
(573,836)

Exceptional costs relating to foreign exchange differences
 5 
974,858
(1,069,717)

Operating profit
  
5,726,426
2,233,727

Interest payable and similar expenses
 8 
-
(8,170)

Profit before tax
  
5,726,426
2,225,557

Tax on profit
 9 
(1,209,015)
(425,139)

Profit for the financial period
  
4,517,411
1,800,418

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 22 form part of these financial statements.

Page 9

 


CROPTHETICS LIMITED
REGISTERED NUMBER:09423979



BALANCE SHEET
AS AT 31 AUGUST 2023

31 August
31 May
2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 11 
1,468
2,056

  
1,468
2,056

Current assets
  

Stocks
 12 
17,098,181
9,535,050

Debtors: amounts falling due within one year
 13 
7,965,628
21,125,310

Cash at bank and in hand
 14 
1,179,765
1,485,187

  
26,243,574
32,145,547

Creditors: amounts falling due within one year
 15 
(18,178,903)
(27,672,815)

Net current assets
  
 
 
8,064,671
 
 
4,472,732

Total assets less current liabilities
  
8,066,139
4,474,788

Provisions for liabilities
  

Deferred tax
 16 
(367)
(391)

  
 
 
(367)
 
 
(391)

Net assets
  
8,065,772
4,474,397


Capital and reserves
  

Called up share capital 
 17 
1
1

Profit and loss account
  
8,065,771
4,474,396

  
8,065,772
4,474,397


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




J Walia
Director

Date: 21 October 2024

The notes on pages 14 to 22 form part of these financial statements.

Page 10

 


CROPTHETICS LIMITED
 



STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 June 2021
1
2,673,978
2,673,979


Comprehensive income for the year

Profit for the year
-
1,800,418
1,800,418
Total comprehensive income for the year
-
1,800,418
1,800,418



At 1 June 2022
1
4,474,396
4,474,397


Comprehensive income for the period

Profit for the period
-
4,517,411
4,517,411
Total comprehensive income for the period
-
4,517,411
4,517,411


Contributions by and distributions to owners

Dividends paid
-
(926,036)
(926,036)


Total transactions with owners
-
(926,036)
(926,036)


At 31 August 2023
1
8,065,771
8,065,772


The notes on pages 14 to 22 form part of these financial statements.

Page 11

 


CROPTHETICS LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 AUGUST 2023

31 August
31 May
2023
2022
£
£

Cash flows from operating activities

Profit for the financial period
5,726,426
2,225,557

Adjustments for:

Depreciation of tangible assets
588
294

Interest paid
-
8,170

(Increase) in stocks
(7,563,131)
(6,680,203)

Decrease/(increase) in debtors
12,678,291
(16,751,932)

Decrease in amounts owed by groups
481,391
22,144,204

(Decrease)/increase in creditors
(11,462,109)
36,000

Increase in amounts owed to groups
1,183,906
-

Corporation tax (paid)
(424,748)
(446,680)

Interest paid
-
(8,170)

Net cash generated from operating activities

620,614
527,240


Cash flows from investing activities

Purchase of tangible fixed assets
-
(2,350)

Net cash from investing activities

-
(2,350)

Cash flows from financing activities

Dividends paid
(926,036)
-

Net cash used in financing activities
(926,036)
-

Net (decrease)/increase in cash and cash equivalents
(305,422)
524,890

Cash and cash equivalents at beginning of period
1,485,187
960,297

Cash and cash equivalents at the end of period
1,179,765
1,485,187


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
1,179,765
1,485,187

1,179,765
1,485,187


The notes on pages 14 to 22 form part of these financial statements.

Page 12

 


CROPTHETICS LIMITED
 



ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 AUGUST 2023




At 1 June 2022
Cash flows
At 31 August 2023
£

£

£

Cash at bank and in hand

1,485,187

(305,422)

1,179,765


1,485,187
(305,422)
1,179,765

The notes on pages 14 to 22 form part of these financial statements.

Page 13

 


CROPTHETICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

1.


General information

Cropthetics Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.
The current period is 1 June 2022 to 31 August 2023 whereas the prior period was 1 June 2021 to 31 May 2022, and therefore the comparative period is not directly comparable.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors consider that the financial resources available to the Company are adequate to meet its operational needs for the forseeable future or at least 12 months from the date of signature of these accounts. Accordingly, the going concern basis has been adopted in preparing these financial statements.

  
2.3

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. 

 
2.4

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue is recognised on the sale of goods when the significant risks and rewards of ownership of goods have passed to the buyer and the amount of revenue can be measured reliably. Revenue on goods delivered is recognised when the customer accepts delivery.
Invoices issued in the year for delivery after the year end have been excluded from sales.

 
2.5

Finance costs

Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

Page 14

 


CROPTHETICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.6

Current and deferred taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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

 
2.7

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
25%
on cost

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

Page 15

 


CROPTHETICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.9

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. 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.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price.Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are an integral part of the company's cash management.
Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 16

 


CROPTHETICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

2.Accounting policies (continued)

  
2.15

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reported period.


4.


Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31 August
2023
31 May
2022
£
£

United Kingdom
7,536,916
15,665,790

Europe
49,820,044
37,763,441

57,356,960
53,429,231



5.


Exceptional items

31 August
2023
31 May
2022
£
£


Foreign exchange (gain)/loss
(974,858)
1,069,717

(974,858)
1,069,717

Page 17

 


CROPTHETICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

6.


Auditors' remuneration

During the period, the Company obtained the following services from the Company's auditors and their associates:


31 August
2023
31 May
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
29,000
18,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees




The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL).


8.


Interest payable and similar expenses

31 August
2023
31 May
2022
£
£


Bank interest
-
8,170

-
8,170


9.


Taxation


31 August
2023
31 May
2022
£
£

Corporation tax


Current tax on profits for the period/year
1,209,039
424,748


1,209,039
424,748


Total current tax
1,209,039
424,748

Deferred tax


Deferred tax (credit)/charge
(24)
391

Total deferred tax
(24)
391


Tax on profit
1,209,015
425,139
Page 18

 


CROPTHETICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023
 
9.Taxation (continued)


Factors affecting tax charge for the period/year

The tax assessed for the period/year is higher than (2022 -higher than) the standard rate of corporation tax in the UK of 21% (2022 -19%). The differences are explained below:

31 August
2023
31 May
2022
£
£


Profit on ordinary activities before tax
5,726,426
2,225,557


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 21% (2022 -19%)
1,202,550
422,856

Effects of:


Expenses not deductible for tax purposes
6,465
2,283

Capital allowances in excess of depreciation
24
(391)

Deferred tax
(24)
391

Total tax charge for the period/year
1,209,015
425,139


10.


Dividends

31 August
31 May
2023
2022
£
£


Dividends
926,036
-

926,036
-

Page 19

 


CROPTHETICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

11.


Tangible fixed assets







Fixtures and fittings

£



Cost or valuation


At 1 June 2022
2,350



At 31 August 2023

2,350



Depreciation


At 1 June 2022
294


Charge for the period on owned assets
588



At 31 August 2023

882



Net book value



At 31 August 2023
1,468


12.


Stocks

31 August
31 May
2023
2022
£
£

Stocks
17,098,181
9,535,050

17,098,181
9,535,050



13.


Debtors

31 August
31 May
2023
2022
£
£


Trade debtors
7,458,537
20,357,482

Amounts owed by related party
-
481,391

Other debtors
53,011
-

VAT
454,080
286,437

7,965,628
21,125,310


Page 20

 


CROPTHETICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

14.


Cash and cash equivalents

31 August
31 May
2023
2022
£
£

Cash at bank and in hand
1,179,765
1,485,187

1,179,765
1,485,187



15.


Creditors: Amounts falling due within one year

31 August
31 May
2023
2022
£
£

Trade creditors
8,958,532
23,225,591

Amounts owed to group undertakings
1,221,143
37,237

Corporation tax
1,209,039
424,748

Other taxation and social security
1,175,980
-

Other creditors
122,413
-

Accrued expenses
5,491,678
3,985,121

Directors' current accounts
118
118

18,178,903
27,672,815



16.


Deferred taxation






31 August
2023
31 May
2022


£

£






At beginning of period/year
391
-


Charged to Statement of Comprehensive Income
(24)
391



At end of year
367
391

The provision for deferred taxation is made up as follows:

31 August
31 May
2023
2022
£
£


Accelerated capital allowances
367
391

367
391

Page 21

 


CROPTHETICS LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2023

17.


Share capital

31 August
31 May
2023
2022
£
£
Allotted, issued and fully paid



1 (2022 -1) Ordinary Shares share of £1.00
1
1



18.


Contingent liabilities

HSBC Bank has a fixed and floating charge over all present and future assets of the company to cover loans, overdrafts and invoice finance facility provided to its group companies and companies related by virtue of common control.
Unlimited Multilateral Guarantee is given by the company, Widecover Limited, J T Grosvenor Limited, JT Agro Limited and Widecover Holdings Limited.
JT Agro Limited is the parent undertaking. Widecover Limited, J T Grosvenor Limited and Widecover Holdings Limited are related by virute of common control.


19.


Related party transactions

During the period the company purchased goods amounting to £20,704,043 (2022: £28,019,708) from related companies.
During the period the company sold goods amounting to £941,955 (2022: £6,678,751) to related companies.
At the Balance Sheet date, the company owed £6,457,148 (2022: £16,005,154) to related companies.
At the Balance Sheet date, the company was owed £4,783,236 (2022: £9,707,798) by related companies.
The above companies are related by virtue of common control.


20.


Controlling party

The directors consider JT Agro Ltd, a company registered in England, to be the ultimate parent company.
JT Agro Limited prepares group financial statements, which are the largest and the smallest group financial statements within which the results of the company are included, and which are publicly available from Companies House. 
 
Page 22