Company registration number NI012103 (Northern Ireland)
TAYLORS (FYFIN) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
TAYLORS (FYFIN) LIMITED
CONTENTS
Page
Company Information
1
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
TAYLORS (FYFIN) LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr Thomas William Taylor
Mrs Elizabeth Taylor
Secretary
Mr T Taylor
Company number
NI012103
Registered office
27 Killeen Road
Victoria Bridge
Strabane
Co Tyrone
BT82 9LL
Auditor
Moore (NI) LLP
21/23 Clarendon Street
Derry/Londonderry
BT48 7EP
Bankers
Danske Bank
Donegall Square West
Belfast
BT1 6JS
HSBC
12/14 The Diamond
Derry~Londonderry
BT48 6HW
TAYLORS (FYFIN) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
The directors present the strategic report for the year ended 30 September 2023.
Principal activities
The principal activity of the company continued to be that of supplying seeds, feedstuff and fertiliser to the agricultural sector.
Review of the business
In 2023 the increase in price for feeds and fertiliser continued, this was attributed to the continued war in Ukraine. Despite this challenge the company remained profitable with a Gross Profit margin of 9.7% (9.2% in 2022) and Net Profit before tax margin of 2.6% (2.5% in 2022).
Total revenue increased to £24.9m (2022: £23.4m), and direct costs increased to £22.5m (2022: £21.3m). With strong customer relationships, the company was able to pass on the increase cost to their customers with minimal effect and continued to compete successfully with competitors.
Principal risks and uncertainties
The company's operations expose it to a variety of financial risks that include foreign exchange risk, credit risk, liquidity risk and interest rate risk. The company has in place a risk management programme to monitor and control the effects of these risks on the financial performance of the company. In accordance with the requirement to analyse the key risks and uncertainties facing the future development of the company, the following have been identified:
Foreign exchange risk
A small proportion of the company's trading is conducted in foreign currency, primarily the Euro. Any exposure to foreign currency risk is in the normal course of business and deemed to be immaterial.
Credit risk
The company is exposed to a minimal degree of credit risk due to its policy of giving credit to a small number of customers. The company has implemented policies that require appropriate credit checks on all existing and potential customers before sales are made. Bad debt is monitored on an on-going basis. These policies are regularly assessed by the directors.
Liquidity risk
The company has financing facilities in place that are designed to ensure there are sufficient available funds to meet day to day working capital requirements.
Interest rate risk
The company has interest bearing liabilities. The company has a policy of monitoring its debt finance to ensure certainty of future cash flows.
Key performance indicators
2023
2022
Turnover
£24,944,079
£23,448,540
Gross margin percentage
9.66%
9.27%
Operating profit
£608,510
£594,829
The key performance indicators used by the directors are turnover, gross margin percentage and operating profit. These are set out below
TAYLORS (FYFIN) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
Mr Thomas William Taylor
Director
31 October 2024
TAYLORS (FYFIN) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
The directors present their annual report and financial statements for the year ended 30 September 2023.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr Thomas William Taylor
Mrs Elizabeth Taylor
Future developments
The company plans to continue to further drive efficiency levels in the production and distribution facilities, thus leading to increased levels of turnover, gross profit margin and operating profits. To improve efficiency the company has developed a bespoke production facility which when commissioned will increase input, leading to increased turnover and profit. The company is running at maximum output at present and eagerly awaits the commissioning of its facility to allow us to increase our customer base and provide a more timely service to all our customers. The company is heavily invested in developing new products to deliver better results to our clients, with our new facility we should be able to invest further in research thus adding value to our products.
Auditor
The auditor, Moore (NI) LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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.
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.
TAYLORS (FYFIN) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 5 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr Thomas William Taylor
Director
31 October 2024
TAYLORS (FYFIN) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TAYLORS (FYFIN) LIMITED
- 6 -
Opinion
We have audited the financial statements of Taylors (Fyfin) Limited (the 'company') for the year ended 30 September 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 September 2023 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.
TAYLORS (FYFIN) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TAYLORS (FYFIN) LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Based on our understanding of the company and its operating environment, we determined that the most significant frameworks which have a direct impact on the preparation of the financial statements are those related to the reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations. Compliance with these laws and regulations was assessed as part of our procedures.
Other laws and regulations of which non-compliance may have a material effect on the financial statements, e.g. through fines or litigation, were identified as employment law and health and safety regulations. Our required procedures in these areas are limited to inquiry of directors and other management and inspection of any regulatory or legal correspondence. These limited procedures did not identify any actual or suspected non-compliance.
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, including evaluating management's incentives and opportunities to manage earnings or influence the reported results. From the results of our assessment, we determined that the principal risk of fraud related to posting inappropriate journal entries. In common with all audits under ISAs (UK), we are required to perform specific procedures to respond to the risk of management override.
TAYLORS (FYFIN) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TAYLORS (FYFIN) LIMITED (CONTINUED)
- 8 -
Audit response to risks identified
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. Audit procedures performed by the engagement team included:
We obtained an understanding of the company's internal control systems in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control.
We obtained an understanding of how the company complies with relevant laws and regulations, including requirements of general insurance regulated activities, by making enquiries of management and those charged with governance.
Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims.
Enquiry of entity staff to identify any instances of non-compliance with laws and regulations.
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
Reviewing minutes of management and directors meetings.
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
We test the completeness of income to address the risk of fraud in revenue recognition.
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business.
We communicated relevant laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment through collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
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.
The purpose of our audit work and to whom we owe our responsibilities
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.
John Love
Senior Statutory Auditor
For and on behalf of Moore (NI) LLP
31 October 2024
Chartered Accountants
Statutory Auditor
21/23 Clarendon Street
Derry/Londonderry
BT48 7EP
TAYLORS (FYFIN) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
24,944,079
23,448,540
Cost of sales
(22,535,720)
(21,275,552)
Gross profit
2,408,359
2,172,988
Distribution costs
(1,313,781)
(1,142,056)
Administrative expenses
(535,907)
(436,103)
Other operating income
49,839
Operating profit
4
608,510
594,829
Interest receivable and similar income
7
248
54
Interest payable and similar expenses
8
(59,146)
(13,742)
Amounts written off investments
9
-
(270,012)
Profit before taxation
549,612
311,129
Tax on profit
10
(85,798)
(204,726)
Profit for the financial year
463,814
106,403
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TAYLORS (FYFIN) LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,200,284
2,912,978
Investment property
12
397,350
397,350
3,597,634
3,310,328
Current assets
Stocks
13
465,376
509,085
Debtors
14
3,327,825
4,139,808
Cash at bank and in hand
845,694
1,671,260
4,638,895
6,320,153
Creditors: amounts falling due within one year
15
(3,289,401)
(4,970,738)
Net current assets
1,349,494
1,349,415
Total assets less current liabilities
4,947,128
4,659,743
Creditors: amounts falling due after more than one year
16
(915,935)
(1,137,259)
Provisions for liabilities
Deferred tax liability
19
657,095
612,200
(657,095)
(612,200)
Net assets
3,374,098
2,910,284
Capital and reserves
Called up share capital
21
102,244
102,244
Profit and loss reserves
22
3,271,854
2,808,040
Total equity
3,374,098
2,910,284
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 31 October 2024 and are signed on its behalf by:
Mr Thomas William Taylor
Director
Company registration number NI012103 (Northern Ireland)
TAYLORS (FYFIN) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2021
102,244
2,701,637
2,803,881
Year ended 30 September 2022:
Profit and total comprehensive income
-
106,403
106,403
Balance at 30 September 2022
102,244
2,808,040
2,910,284
Year ended 30 September 2023:
Profit and total comprehensive income
-
463,814
463,814
Balance at 30 September 2023
102,244
3,271,854
3,374,098
TAYLORS (FYFIN) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
24
(128,814)
1,970,474
Interest paid
(59,146)
(13,742)
Income taxes refunded/(paid)
49,649
(65,643)
Net cash (outflow)/inflow from operating activities
(138,311)
1,891,089
Investing activities
Purchase of tangible fixed assets
(690,468)
(1,312,194)
Proceeds from disposal of tangible fixed assets
45,000
32,851
Interest received
248
54
Net cash used in investing activities
(645,220)
(1,279,289)
Financing activities
Repayment of borrowings
(11,581)
Proceeds from new bank loans
651,087
Repayment of bank loans
(29,871)
(34,031)
Payment of finance leases obligations
(82,633)
(140,828)
Net cash (used in)/generated from financing activities
(124,085)
476,228
Net (decrease)/increase in cash and cash equivalents
(907,616)
1,088,028
Cash and cash equivalents at beginning of year
1,671,260
583,231
Cash and cash equivalents at end of year
763,644
1,671,260
Relating to:
Cash at bank and in hand
845,694
1,671,260
Bank overdrafts included in creditors payable within one year
(82,050)
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
1
Accounting policies
Company information
Taylors (Fyfin) Limited is a private company limited by shares incorporated in Northern Ireland. The registered office is 27 Killeen Road, Victoria Bridge, Strabane, Co Tyrone, BT82 9LL.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
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:
Shed
2% straight line
Plant and machinery
10% straight line
Fixtures, fittings & equipment
10% straight line
Motor vehicles
20% reducing balance
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -
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
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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.15
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.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 18 -
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.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Seeds, feedstuff and fertiliser
24,944,079
23,448,540
2023
2022
£
£
Turnover analysed by geographical market
Northern & Southern Ireland
24,944,079
23,448,540
2023
2022
£
£
Other revenue
Interest income
248
54
Grants received
49,839
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(17,924)
19,884
Government grants
(49,839)
-
Fees payable to the company's auditor for the audit of the company's financial statements
7,250
6,300
Depreciation of owned tangible fixed assets
298,452
218,137
Depreciation of tangible fixed assets held under finance leases
41,378
81,400
Loss/(profit) on disposal of tangible fixed assets
18,333
(11,948)
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 19 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Sales
3
3
Administration
6
5
Distribution
11
11
Total
20
19
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
625,634
530,055
Social security costs
60,324
42,781
Pension costs
18,217
14,283
704,175
587,119
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
41,985
42,000
Company pension contributions to defined contribution schemes
886
886
42,871
42,886
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
248
54
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
248
54
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 20 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
55,115
8,771
Other finance costs:
Interest on finance leases and hire purchase contracts
4,031
4,538
Other interest
433
59,146
13,742
9
Amounts written off investments
2023
2022
£
£
Amounts written back to/(written off) investments held at fair value
-
(270,012)
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
40,903
Adjustments in respect of prior periods
(49,774)
Total current tax
40,903
(49,774)
Deferred tax
Origination and reversal of timing differences
44,895
254,500
Total tax charge
85,798
204,726
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
10
Taxation
(Continued)
- 21 -
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:
2023
2022
£
£
Profit before taxation
549,612
311,129
Expected tax charge based on the standard rate of corporation tax in the UK of 22.01% (2022: 19.00%)
120,970
59,115
Gains not taxable
51,302
Tax effect of utilisation of tax losses not previously recognised
(12,541)
Unutilised tax losses carried forward
10,825
Permanent capital allowances in excess of depreciation
(3,657)
(118,972)
Depreciation on assets not qualifying for tax allowances
3,107
Research and development tax credit
(49,774)
Deferred tax adjustments in respect of prior years
(30,650)
Tax at marginal rate
(462)
(Profit) or loss on sale of tangible assets
(2,270)
Deferred tax movement
254,500
Effect of change in corporation tax rate on deferred tax
9,031
Taxation charge for the year
85,798
204,726
11
Tangible fixed assets
Shed
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2022
1,502,365
1,648,002
56,054
995,753
4,202,174
Additions
685,228
5,240
690,468
Disposals
(80,000)
(80,000)
At 30 September 2023
1,502,365
2,253,230
61,294
995,753
4,812,642
Depreciation and impairment
At 1 October 2022
145,012
542,520
15,591
586,072
1,289,195
Depreciation charged in the year
30,049
220,006
7,840
81,935
339,830
Eliminated in respect of disposals
(16,667)
(16,667)
At 30 September 2023
175,061
745,859
23,431
668,007
1,612,358
Carrying amount
At 30 September 2023
1,327,304
1,507,371
37,863
327,746
3,200,284
At 30 September 2022
1,357,353
1,105,482
40,462
409,681
2,912,978
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
11
Tangible fixed assets
(Continued)
- 22 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and machinery
43,500
Motor vehicles
165,514
296,594
165,514
340,094
12
Investment property
2023
£
Fair value
At 1 October 2022 and 30 September 2023
397,350
The fair value of the investment property has been arrived at on the basis of an assessment carried out by the directors at the reporting date.
13
Stocks
2023
2022
£
£
Raw materials and consumables
465,376
509,085
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
3,184,014
3,932,234
Other debtors
107,804
203,587
Prepayments and accrued income
36,007
3,987
3,327,825
4,139,808
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 23 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
219,541
34,030
Obligations under finance leases
18
76,411
82,633
Trade creditors
2,861,117
4,686,576
Corporation tax
40,903
(49,649)
Other taxation and social security
17,942
11,308
Other creditors
10,671
35,605
Accruals and deferred income
62,816
170,235
3,289,401
4,970,738
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
622,866
756,198
Obligations under finance leases
18
22,650
99,061
Other borrowings
17
270,419
282,000
915,935
1,137,259
17
Loans and overdrafts
2023
2022
£
£
Bank loans
760,357
790,228
Bank overdrafts
82,050
Other loans
270,419
282,000
1,112,826
1,072,228
Payable within one year
219,541
34,030
Payable after one year
893,285
1,038,198
Bank loans and overdrafts are secured as follows:
Overdraft facilities are repayable on demand. If no demand is made the facilities will be subject to review at any time but in any event on an annual basis.
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
76,411
82,633
In two to five years
22,650
99,061
99,061
181,694
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
657,095
612,200
2023
Movements in the year:
£
Liability at 1 October 2022
612,200
Charge to profit or loss
44,895
Liability at 30 September 2023
657,095
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
18,217
14,283
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
102,244
102,244
102,244
102,244
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
21
Share capital
(Continued)
- 25 -
The company has one class of ordinary shares which entitle the shareholders to:
full voting rights;
full rights to participate in dividends, as voted; and
full rights to participate in a distribution including in a winding up situation.
22
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
2,808,040
2,701,637
Profit for the year
463,814
106,403
At the end of the year
3,271,854
2,808,040
23
Directors' transactions
Dividends totalling £0 (2022 - £0) were paid in the year in respect of shares held by the company's directors.
Included within creditors are amounts due to a director of £281,090 (2023: £317,605).
24
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year after tax
463,814
106,403
Adjustments for:
Taxation charged
85,798
204,726
Finance costs
59,146
13,742
Investment income
(248)
(54)
Loss/(gain) on disposal of tangible fixed assets
18,333
(11,948)
Depreciation and impairment of tangible fixed assets
339,830
299,537
Other gains and losses
-
270,012
Movements in working capital:
Decrease/(increase) in stocks
43,709
(326,737)
Decrease/(increase) in debtors
811,983
(1,714,568)
(Decrease)/increase in creditors
(1,951,179)
3,129,361
Cash (absorbed by)/generated from operations
(128,814)
1,970,474
TAYLORS (FYFIN) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 26 -
25
Analysis of changes in net funds/(debt)
1 October 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
1,671,260
(825,566)
845,694
Bank overdrafts
(82,050)
(82,050)
1,671,260
(907,616)
763,644
Borrowings excluding overdrafts
(1,072,228)
41,452
(1,030,776)
Obligations under finance leases
(181,694)
82,633
(99,061)
417,338
(783,531)
(366,193)
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