Company registration number 00247405 (England and Wales)
LAURENCE J BETTS LIMITED
Annual Report And Financial Statements
For The Year Ended 31 January 2024
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Company Information
Directors
J P Regan
(Appointed 13 July 2023)
M F Regan
(Appointed 13 July 2023)
A J Mclean
(Appointed 13 July 2023)
N J Ottewell
Secretary
A J Mclean
Company number
00247405
Registered office
Barons Place
Mereworth
Kent
England
ME18 5NF
Auditor
Chavereys Audit Limited
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Contents
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
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 - 26
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Strategic Report
For The Year Ended 31 January 2024
- 1 -
The directors present the strategic report for the year ended 31 January 2024.
Principal activities
The principal activities of growing and marketing fresh, leafy salads did not see any significant changes and the directors are not aware of any likely changes in the group’s principal activities in the forthcoming year.
Review of the business
L J Betts supplied lettuce and babyleaf salads to our valued customers in the wholesale markets, locally, and in the pre-prepared foodservice and retailer supply chains. The 2023/4 financial year shows an operating profit of £636,820 (2023 - £1,462,438) and a pre-tax profit of £777,329 (2023 - £1,348,565). While results were not quite as achieved in 2023 the second half of the accounting year showed significant promise which the directors intend to build upon.
In July 2023 the business was acquired by the Regan family, neighbouring farmers and owners of fruit growers Hugh Lowe Farms Ltd, with values and a mission well aligned with those of the previous owners, the Betts family. The board aims to continue their legacy of over 100 years of producing fine quality local produce farmed in a sustainable and ethically responsible way. Our own brand L J Betts remains highly regarded and recognisable and the board plans to continue to bolster its unique selling points of quality, provenance and availability.
Principal risks and uncertainties
The 2023 growing season was challenging being late, cold and wet, following a mild, wet winter. Climate change appears to be creating more volatile, uncertain and unpredictable weather events affecting volumes, quality and costs. Inflation, particularly of labour costs, remains a concern, but any increases in retail pricing were not passed through to primary producers in 2023. Nevertheless, under new direction but existing skilled management, crop production and marketing was efficient and productive, and competitive.
Significant commercial risks are managed through the company strategy of maintaining strong, close relationships with its customers, prioritising direct communications between customer and grower. Agronomic risks are mitigated through investment in expertise and skills, maintaining a good machinery fleet, and spreading production across a range of farms and sites over a long growing season.
L J Betts embraces innovation to improve productivity as well as environmental and social sustainability. Research and development activities include the investment of time, trial areas and capital to explore new varieties, growing systems, automation and mechanisation. This is essential to contain rising labour costs and to meet stringent customer requirements.
Our ability to share and spare the land within our enterprise means that the business is enhancing farm biodiversity through adoption of regenerative techniques in land management supporting good levels of native pollinators and farmland birds on the farms, particularly in non-cropping areas devoted to wildlife.
Recruitment and retention of enough seasonal labour, and the steep increases seen in the minimum wage rate over the past few years, continues to challenge this labour-intensive business. The company participates in the Seasonal Workers Scheme, and this, together with attracting returnees from EU states, and targeted local recruitment of UK-residents, ensures adequate staff numbers.
Our board remains confident that the business can thrive and grow in 2024/5 and beyond. In 2023/4 the team and business model proved to be resilient at a time of change, and the board appreciates the hard work and expertise put in by everyone to ensure the smooth and successful transition of ownership.
M F Regan
Director
30 October 2024
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Directors' Report
For The Year Ended 31 January 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 January 2024.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £2,023,793. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J P Regan
(Appointed 13 July 2023)
M F Regan
(Appointed 13 July 2023)
A J Mclean
(Appointed 13 July 2023)
N J Ottewell
A R Wright
(Resigned 31 January 2024)
P R Betts
(Resigned 13 July 2023)
S J Betts
(Resigned 13 July 2023)
Auditor
The auditors, Chavereys Audit Limited, 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.
Directors' responsibilities statement
The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Directors' Report (Continued)
For The Year Ended 31 January 2024
- 3 -
On behalf of the board
M F Regan
Director
30 October 2024
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Independent Auditor's Report
To The Members Of Laurence J Betts Limited
- 4 -
Opinion
We have audited the financial statements of Laurence J Betts Limited (the 'company') for the year ended 31 January 2024 which comprise the profit and loss account, 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 31 January 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.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Independent Auditor's Report
To The Members Of Laurence J Betts Limited (Continued)
- 5 -
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.
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:
We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate. We determined that the following laws and regulations were most significant: Companies Act 2006 and UK corporate taxation laws.
We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making enquiries of management of the company. We corroborated our enquiries through our review of board minutes and papers provided to the audit team and consideration of the results of our audit procedures for the company.
We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the company engagement team included:
o Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
o Understanding how those charged with governance considered and addressed the potential override of controls or other inappropriate influence over the financial reporting process;
o Challenging assumptions and judgment made by management in its significant accounting estimates;
o Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations and for unusual or large amounts.
o Assessing the extent of compliance with the relevant laws and regulations.
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.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Independent Auditor's Report
To The Members Of Laurence J Betts Limited (Continued)
- 6 -
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.
Iain D Morris FCA
Senior Statutory Auditor
For and on behalf of Chavereys Audit Limited
30 October 2024
Chartered Accountants
Statutory Auditor
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Profit And Loss Account
For The Year Ended 31 January 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
10,380,995
10,968,714
Cost of sales
(6,553,886)
(6,708,124)
Gross profit
3,827,109
4,260,590
Administrative expenses
(3,409,730)
(3,082,290)
Other operating income
219,441
284,138
Operating profit
4
636,820
1,462,438
Interest receivable and similar income
206,378
7,388
Interest payable and similar expenses
(65,869)
(121,261)
Profit before taxation
777,329
1,348,565
Tax on profit
8
(368,221)
(221,287)
Profit for the financial year
409,108
1,127,278
The notes on pages 12 to 26 form part of these financial statements.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Statement Of Comprehensive Income
For The Year Ended 31 January 2024
- 8 -
2024
2023
£
£
Profit for the year
409,108
1,127,278
Other comprehensive income
Adjustments to the fair value of financial assets
(101,222)
14,460
Total comprehensive income for the year
307,886
1,141,738
The notes on pages 12 to 26 form part of these financial statements.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Balance Sheet
As At 31 January 2024
31 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
101,222
Tangible assets
11
4,675,210
6,498,097
Investment property
12
750,000
1,339,000
Investments
13
1,907,020
1,907,020
7,332,230
9,845,339
Current assets
Stocks
15
616,145
552,813
Debtors
16
707,715
682,691
Cash at bank and in hand
1,823,185
3,316,308
3,147,045
4,551,812
Creditors: amounts falling due within one year
17
(1,951,094)
(1,567,576)
Net current assets
1,195,951
2,984,236
Total assets less current liabilities
8,528,181
12,829,575
Creditors: amounts falling due after more than one year
18
(400,212)
(3,166,699)
Provisions for liabilities
Deferred tax liability
21
703,000
522,000
(703,000)
(522,000)
Net assets
7,424,969
9,140,876
Capital and reserves
Called up share capital
23
1,180
1,180
Revaluation reserve
604,000
819,463
Profit and loss reserves
6,819,789
8,320,233
Total equity
7,424,969
9,140,876
The notes on pages 12 to 26 form part of these financial statements.
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 30 October 2024 and are signed on its behalf by:
M F Regan
Director
Company registration number 00247405 (England and Wales)
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Statement Of Changes In Equity
For The Year Ended 31 January 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
1,180
805,003
7,339,859
8,146,042
Year ended 31 January 2023:
Profit
-
-
1,127,278
1,127,278
Other comprehensive income:
Adjustments to fair value of financial assets
-
14,460
-
14,460
Total comprehensive income
-
14,460
1,127,278
1,141,738
Dividends
9
-
-
(146,904)
(146,904)
Balance at 31 January 2023
1,180
819,463
8,320,233
9,140,876
Year ended 31 January 2024:
Profit
-
-
409,108
409,108
Other comprehensive income:
Adjustments to fair value of financial assets
-
(101,222)
-
(101,222)
Total comprehensive income
-
(101,222)
409,108
307,886
Dividends
9
-
-
(2,023,793)
(2,023,793)
Transfers
-
(114,241)
114,241
-
Balance at 31 January 2024
1,180
604,000
6,819,789
7,424,969
The notes on pages 12 to 26 form part of these financial statements.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Statement Of Cash Flows
For The Year Ended 31 January 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,464,563
1,825,417
Income taxes paid
(284,631)
(155,489)
Net cash inflow from operating activities
1,179,932
1,669,928
Investing activities
Purchase of tangible fixed assets
(253,339)
(188,420)
Proceeds from disposal of tangible fixed assets
1,806,166
163,251
Proceeds from disposal of investment property
589,000
Repayment of loans
6,604
(5,484)
Interest received
206,378
7,388
Net cash generated from/(used in) investing activities
2,354,809
(23,265)
Financing activities
Repayment of bank loans
(3,042,646)
(253,674)
Payment of finance leases obligations
104,444
(140,995)
Interest paid
(65,869)
(121,261)
Dividends paid
(2,023,793)
(146,904)
Net cash used in financing activities
(5,027,864)
(662,834)
Net (decrease)/increase in cash and cash equivalents
(1,493,123)
983,829
Cash and cash equivalents at beginning of year
3,316,308
2,332,479
Cash and cash equivalents at end of year
1,823,185
3,316,308
The notes on pages 12 to 26 form part of these financial statements.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements
For The Year Ended 31 January 2024
- 12 -
1
Accounting policies
Company information
Laurence J Betts Limited is a private company limited by shares incorporated in England and Wales. The registered office is Barons Place, Mereworth, Kent, England, ME18 5NF.
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, unless where otherwise stated. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Laurence J Betts Limited is a wholly owned subsidiary of Skylark Farming Limited and the results of Laurence J Betts Limited are included in the consolidated financial statements of Skylark Farming Limited which are available from Barons Place, Mereworth, Maidstone, Kent, ME18 5NF.
1.2
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.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently revalued to fair value using current market rates for BPS entitlements.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
1
Accounting policies
(Continued)
- 13 -
1.4
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.
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:
Land and buildings
Not depreciated
Assets under construction
Not depreciated
Equipment and implement
15% reducing balance
Buildings, drainage and fittings
0% - 15% recuding balance
Tractors and motor vehicles
25% reducing balance
Cold stores
4% 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.
1.5
Biological assets
Biological assets are living plants controlled by the company from which it expects to derive future economic benefit. These are measured at the lower of cost or estimated selling price, less costs to sell.
1.6
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
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.
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.
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.
1.10
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.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
1
Accounting policies
(Continued)
- 15 -
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
- 16 -
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.
Stocks and biological assets
Note 1.8 details the accounting policies for stocks and biological assets. The judgements involved relate to the appropriate proportion of relevant expenses to include when calculating the cost of production of crops.
3
Turnover and other revenue
In the opinion of the directors, disclosure of turnover information would be seriously prejudicial to the interest of the company.
2024
2023
£
£
Other revenue
Interest income
206,378
7,388
Grants received
79,285
113,579
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(79,285)
(113,579)
Depreciation of owned tangible fixed assets
458,951
495,663
Profit on disposal of tangible fixed assets
(188,891)
(108,323)
Operating lease charges
157,679
191,818
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
9,000
9,000
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
- 17 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
5
4
Administration
2
2
Seasonal workers
64
68
Farm staff
16
20
Total
87
94
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,024,958
3,048,066
Social security costs
285,019
317,420
Pension costs
70,756
97,242
3,380,733
3,462,728
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
471,767
228,524
Company pension contributions to defined contribution schemes
30,203
49,932
501,970
278,456
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
118,725
69,957
Company pension contributions to defined contribution schemes
8,644
37,861
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
- 18 -
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
192,671
290,576
Adjustments in respect of prior periods
(5,450)
(43,289)
Total current tax
187,221
247,287
Deferred tax
Origination and reversal of timing differences
181,000
(26,000)
Total tax charge
368,221
221,287
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
777,329
1,348,565
Expected tax charge based on the standard rate of corporation tax in the UK of 24.05% (2023: 19.00%)
186,921
256,227
Tax effect of expenses that are not deductible in determining taxable profit
11,783
9,578
Permanent capital allowances in excess of depreciation
500
16,405
Amortisation on assets not qualifying for tax allowances
(6,533)
(5,471)
Under/(over) provided in prior years
(5,450)
(43,289)
Deferred tax adjustments in respect of prior years
181,000
(26,000)
Chargeable gains
13,837
Taxation charge for the year
368,221
221,287
9
Dividends
2024
2023
£
£
Final paid
2,023,793
146,904
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
- 19 -
10
Intangible fixed assets
BPS entitlements
£
Cost
At 1 February 2023
101,222
Revaluation
(101,222)
At 31 January 2024
Amortisation and impairment
At 1 February 2023 and 31 January 2024
Carrying amount
At 31 January 2024
At 31 January 2023
101,222
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
- 20 -
11
Tangible fixed assets
Land and buildings
Assets under construction
Equipment and implement
Buildings, drainage and fittings
Tractors and motor vehicles
Cold stores
Total
£
£
£
£
£
£
£
Cost
At 1 February 2023
2,740,698
18,410
4,066,701
1,704,234
2,540,018
2,392,484
13,462,545
Additions
54,225
199,114
-
253,339
Disposals
(1,434,793)
(18,410)
(283,149)
(545,948)
-
(2,282,300)
Transfers
135,757
(135,757)
-
At 31 January 2024
1,441,662
3,837,777
1,568,477
2,193,184
2,392,484
11,433,584
Depreciation and impairment
At 1 February 2023
2,740,593
1,397,417
2,059,747
766,691
6,964,448
Depreciation charged in the year
193,862
24,704
144,686
95,699
458,951
Eliminated in respect of disposals
(194,643)
(470,382)
-
(665,025)
At 31 January 2024
2,739,812
1,422,121
1,734,051
862,390
6,758,374
Carrying amount
At 31 January 2024
1,441,662
1,097,965
146,356
459,133
1,530,094
4,675,210
At 31 January 2023
2,740,698
18,410
1,326,108
306,817
480,271
1,625,793
6,498,097
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
11
Tangible fixed assets
(Continued)
- 21 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Tractors and motor vehicles
154,584
228,985
12
Investment property
2024
£
Fair value
At 1 February 2023
1,339,000
Disposals
(589,000)
At 31 January 2024
750,000
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2024
2023
£
£
Cost
71,549
593,113
Accumulated depreciation
(71,549)
(196,725)
Carrying amount
-
396,388
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
1,907,020
1,907,020
14
Subsidiaries
Details of the company's subsidiaries at 31 January 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Upper Medway Farms Limited
Barons Place, Mereworth, Maidstone, Kent, ME18 5NF
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
14
Subsidiaries
(Continued)
- 22 -
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Upper Medway Farms Limited
560,148
15
Stocks
2024
2023
£
£
Growing crop
41,295
50,101
Crop in store
50,255
88,676
Consumables
524,595
414,036
616,145
552,813
Biological assets included within stock are as follows:
Biological assets - growing crop
2024
2023
£
£
As at 1 February
50,101
50,736
Net movement on cultivations
(8,806)
(635)
As at 31 January
41,295
50,101
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
466,717
431,644
Corporation tax recoverable
496
Other debtors
149,874
80,879
Prepayments and accrued income
83,624
162,172
700,215
675,191
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
7,500
7,500
Total debtors
707,715
682,691
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
- 23 -
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
19
215,481
Obligations under finance leases
20
65,971
47,993
Trade creditors
436,105
448,394
Amounts owed to group undertakings
841,059
238,077
Corporation tax
192,671
290,577
Other taxation and social security
36,516
42,684
Other creditors
28,141
22,335
Accruals and deferred income
350,631
262,035
1,951,094
1,567,576
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
2,827,165
Obligations under finance leases
20
86,466
Government grants
313,746
339,534
400,212
3,166,699
19
Loans and overdrafts
2024
2023
£
£
Bank loans
3,042,646
Payable within one year
215,481
Payable after one year
2,827,165
In July 2023, all bank loans were repaid by the company as part of the group restructure. Bank loans are now held with the parent company, Skylark Farming Limited. The bank loans are secured on a variety of land and buildings, as detailed by loan charges and deeds filed with Companies House.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
- 24 -
20
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
65,971
47,993
In two to five years
86,466
152,437
47,993
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
557,000
411,000
Revaluations
146,000
111,000
703,000
522,000
2024
Movements in the year:
£
Liability at 1 February 2023
522,000
Charge to profit or loss
146,000
Charge to other comprehensive income
35,000
Liability at 31 January 2024
703,000
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
70,756
97,242
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.
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
- 25 -
23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
Ordinary B shares of £1 each
180
180
180
180
1,180
1,180
1,180
1,180
24
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
150,770
90,414
Between two and five years
115,374
In over five years
54,325
320,469
90,414
25
Ultimate controlling party
The parent company of Laurence J Betts Limited is LJB Holdco Limited.
The ultimate controlling party of Laurence J Betts Limited is Skylark Farming Limited.
26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
409,108
1,127,278
Adjustments for:
Taxation charged
368,221
221,287
Finance costs
65,869
121,261
Investment income
(206,378)
(7,388)
Gain on disposal of tangible fixed assets
(188,891)
(108,323)
Depreciation and impairment of tangible fixed assets
458,951
495,663
Movements in working capital:
(Increase)/decrease in stocks
(63,332)
43,798
Increase in debtors
(32,124)
(136,948)
Increase in creditors
653,139
68,789
Cash generated from operations
1,464,563
1,825,417
Laurence J Betts Limited
LAURENCE J BETTS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
- 26 -
27
Analysis of changes in net funds
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
3,316,308
(1,493,123)
1,823,185
Borrowings excluding overdrafts
(3,042,646)
3,042,646
-
Obligations under finance leases
(47,993)
(104,444)
(152,437)
225,669
1,445,079
1,670,748
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