Company registration number 12570358 (England and Wales)
C. A. STRAWSON FARMING LIMITED
Annual Report And Financial Statements
For The Year Ended 31 January 2024
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Company Information
Directors
Mr CA Strawson
Mr RM Strawson
Company number
12570358
Registered office
Hexgreave Hall
Upper Hexgreave
Farnsfield
Newark
Nottinghamshire
England
NG22 8LS
Auditor
Chavereys Audit Limited
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
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 - 22
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Strategic Report
For The Year Ended 31 January 2024
- 1 -
The directors present the strategic report for the year ended 31 January 2024.
Review of the business
During the 2023/24 financial year the business made a profit before tax of £579,048. The turnover rose to £13,682,908 as a result of a good potato harvest and market requirement. The balance sheet has strengthened with net assets now standing at £8.84m. Cost control and improved efficiency remain central to future success and the Directors are continuing to make investment in both machinery and data systems in the wider company network to facilitate this.
Principal risks and uncertainties
The Directors of the Company regularly meet to review the key risks and uncertainties that are faced by the Company or potentially will be faced by the Company in the future. The necessary steps are taken to mitigate these risks and uncertainties and an appropriate action plan agreed.
Key performance indicators
The Company's primary targets are operational efficiency and profitability. Specific KPI's are regularly monitored and those relevant are highlighted in the trading results.
Mr RM Strawson
Director
31 October 2024
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING 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.
Principal activities
The principal activity of the company continued to be that of growing vegetables and melons, roots and tubers.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £164,780. 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:
Mr CA Strawson
Mr RM Strawson
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.
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 RM Strawson
Director
31 October 2024
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Directors' Responsibilities Statement
For The Year Ended 31 January 2024
- 3 -
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.
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Independent Auditor's Report
To The Member Of C. A. Strawson Farming Limited
- 4 -
Opinion
We have audited the financial statements of C. A. Strawson Farming 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.
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Independent Auditor's Report (Continued)
To The Member Of C. A. Strawson Farming Limited
- 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit include: to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Independent Auditor's Report (Continued)
To The Member Of C. A. Strawson Farming Limited
- 6 -
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
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, UK corporate tax laws, health and safety laws and food hygiene regulations.
We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making enquiries of management of the company. We corroborated our enquiries through our review of legal costs, associated papers and regulator correspondence, along with 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 engagement team included:
Identifying and assessing the design-effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates;
Identifying and testing journal entries, in particular any journal entries posted outside of the financial team; and
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.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, 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
31 October 2024
Chartered Accountants
Statutory Auditor
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Profit And Loss Account
For The Year Ended 31 January 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
13,682,908
13,042,977
Cost of sales
(12,494,740)
(11,863,179)
Gross profit
1,188,168
1,179,798
Administrative expenses
(497,018)
(240,716)
Operating profit
4
691,150
939,082
Interest receivable and similar income
7
158,509
43,223
Interest payable and similar expenses
8
(290,609)
(261,150)
Profit before taxation
559,050
721,155
Tax on profit
9
(252,103)
(156,446)
Profit for the financial year
306,947
564,709
The profit and loss account has been prepared on the basis that all operations are continuing operations.
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Statement Of Comprehensive Income
For The Year Ended 31 January 2024
- 8 -
2024
2023
£
£
Profit for the year
306,947
564,709
Other comprehensive income
-
-
Total comprehensive income for the year
306,947
564,709
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Balance Sheet
As At 31 January 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
12,179,369
11,529,307
Current assets
Stocks
12
1,912,680
2,148,729
Debtors
13
4,008,821
4,058,059
Cash at bank and in hand
50
50
5,921,551
6,206,838
Creditors: amounts falling due within one year
14
(4,854,980)
(5,132,573)
Net current assets
1,066,571
1,074,265
Total assets less current liabilities
13,245,940
12,603,572
Creditors: amounts falling due after more than one year
15
(3,885,254)
(3,643,609)
Provisions for liabilities
Deferred tax liability
18
755,796
497,240
(755,796)
(497,240)
Net assets
8,604,890
8,462,723
Capital and reserves
Called up share capital
19
100
100
Share premium account
7,853,929
7,853,929
Profit and loss reserves
750,861
608,694
Total equity
8,604,890
8,462,723
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 RM Strawson
Director
Company registration number 12570358 (England and Wales)
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Statement Of Changes In Equity
For The Year Ended 31 January 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
100
7,853,929
158,685
8,012,714
Year ended 31 January 2023:
Profit and total comprehensive income
-
-
564,709
564,709
Dividends
10
-
-
(114,700)
(114,700)
Balance at 31 January 2023
100
7,853,929
608,694
8,462,723
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
306,947
306,947
Dividends
10
-
-
(164,780)
(164,780)
Balance at 31 January 2024
100
7,853,929
750,861
8,604,890
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Statement Of Cash Flows
For The Year Ended 31 January 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
22
(1,091,270)
478,095
Interest paid
(290,609)
(261,150)
Income taxes paid
(102,764)
(34,848)
Net cash (outflow)/inflow from operating activities
(1,484,643)
182,097
Investing activities
Purchase of tangible fixed assets
(743,726)
(207,266)
Proceeds from disposal of tangible fixed assets
7,139
Interest received
190
Other income received from investments
158,319
43,223
Net cash used in investing activities
(585,217)
(156,904)
Financing activities
Repayment of bank loans
(133,885)
1,383,141
Payment of finance leases obligations
453,862
Dividends paid
(164,780)
(114,700)
Net cash generated from financing activities
155,197
1,268,441
Net (decrease)/increase in cash and cash equivalents
(1,914,663)
1,293,634
Cash and cash equivalents at beginning of year
(970,211)
(2,263,845)
Cash and cash equivalents at end of year
(2,884,874)
(970,211)
Relating to:
Cash at bank and in hand
50
50
Bank overdrafts included in creditors payable within one year
(2,884,924)
(970,261)
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Notes To The Financial Statements
For The Year Ended 31 January 2024
- 12 -
1
Accounting policies
Company information
C. A. Strawson Farming Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hexgreave Hall, Upper Hexgreave, Farnsfield, Newark, Nottinghamshire, England, NG22 8LS.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of crops is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
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:
Freehold land and buildings
Not depreciated
Plant and equipment
20% reducing balance
Fixtures and fittings
20% reducing balance
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
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.
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
1
Accounting policies
(Continued)
- 13 -
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.
1.6
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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
1
Accounting policies
(Continued)
- 14 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
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.
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.
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
1
Accounting policies
(Continued)
- 16 -
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Crop sales
11,596,647
11,108,126
Contracting
1,994,967
1,779,403
Other
91,294
155,448
13,682,908
13,042,977
All turnover arose in the United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
20,000
Depreciation of owned tangible fixed assets
93,664
72,903
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
3
3
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
60,000
48,000
Social security costs
5,818
4,746
65,818
52,746
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
40,000
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
190
Income from associated undertakings
158,319
43,223
Total income
158,509
43,223
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
228,158
227,103
Other interest on financial liabilities
62,451
34,047
290,609
261,150
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
3,347
112,564
Adjustments in respect of prior periods
(9,800)
Total current tax
(6,453)
112,564
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
9
Taxation
2024
2023
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
101,533
43,882
Changes in tax rates
157,023
Total deferred tax
258,556
43,882
Total tax charge
252,103
156,446
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
559,050
721,155
Expected tax charge based on the standard rate of corporation tax in the UK of 23.46% (2023: 19.00%)
131,153
137,019
Adjustments in respect of prior years
(9,800)
Permanent capital allowances in excess of depreciation
(127,806)
(24,455)
Deferred tax adjustments in respect of prior years
258,556
43,882
Taxation charge for the year
252,103
156,446
10
Dividends
2024
2023
£
£
Final paid
164,780
114,700
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
- 19 -
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 February 2023
11,156,497
465,810
197
11,622,504
Additions
117,546
626,180
743,726
At 31 January 2024
11,274,043
1,091,990
197
12,366,230
Depreciation and impairment
At 1 February 2023
93,146
51
93,197
Depreciation charged in the year
93,635
29
93,664
At 31 January 2024
186,781
80
186,861
Carrying amount
At 31 January 2024
11,274,043
905,209
117
12,179,369
At 31 January 2023
11,156,497
372,664
146
11,529,307
12
Stocks
2024
2023
£
£
Growing crop
41,027
19,676
Crop in store
1,871,653
2,101,090
Consumables
-
27,963
1,912,680
2,148,729
Biological assets included within stock are as follows:
Biological assets - growing crop
2024
2023
£
£
As at 1 February
19,676
51,986
Net movement on cultivations
21,351
(32,310)
As at 31 January
41,027
19,676
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
- 20 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
945,962
1,694,521
Other debtors
2,729,512
2,213,043
Prepayments and accrued income
333,347
150,495
4,008,821
4,058,059
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
3,024,367
1,107,080
Obligations under finance leases
17
75,708
Trade creditors
491,252
539,195
Corporation tax
3,347
112,564
Other creditors
66,994
580,824
Accruals and deferred income
1,193,312
2,792,910
4,854,980
5,132,573
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
3,507,100
3,643,609
Obligations under finance leases
17
378,154
3,885,254
3,643,609
16
Loans and overdrafts
2024
2023
£
£
Bank loans
3,646,543
3,780,428
Bank overdrafts
2,884,924
970,261
6,531,467
4,750,689
Payable within one year
3,024,367
1,107,080
Payable after one year
3,507,100
3,643,609
The long-term loans are secured by fixed charges over freehold land and buildings.
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
16
Loans and overdrafts
(Continued)
- 21 -
Bank loans are over a mixture of fixed rate lending at 2.72% and variable lending at a margin of 1.9% over base. Repayments are made monthly with maturity of the loans being between 7 and 9 years.
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
75,708
In two to five years
378,154
453,862
Finance leases are secured upon the assets to which they relate.
18
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
755,796
497,240
2024
Movements in the year:
£
Liability at 1 February 2023
497,240
Charge to profit or loss
258,556
Liability at 31 January 2024
755,796
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
100
100
100
100
C. A. Strawson Farming Limited
C. A. STRAWSON FARMING LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 January 2024
- 22 -
20
Related party transactions
During the year, goods were sold amounting to £308,598 and services were rendered of £1,961,543 to companies under common control. In the year, goods were acquired of £2,288,680 and services acquired of £6,260,642 from companies under common control.
During the year, further loans were made to companies under common control of £805,000, with £500,000 being repaid. At the year end, the balance owed to the company was £2,505,000. Interest was received on this loan of £158,319. The loan is issued at a rate of interest of 1.5% about the Bank of England base rate and is repayable on demand.
Included within trade debtors are amounts owed by companies under common control of £378,628. Amounts owed to companies under common control included within trade creditor and accruals amounted to £1,217,842.
21
Ultimate controlling party
The ultimate controlling parties are the trustees of the C.A. Strawson 1997 No.1 Discretionary Settlement.
22
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit for the year after tax
306,947
564,709
Adjustments for:
Taxation charged
252,103
156,446
Finance costs
290,609
261,150
Investment income
(158,509)
(43,223)
Depreciation and impairment of tangible fixed assets
93,664
72,903
Movements in working capital:
Decrease in stocks
236,049
262,461
Decrease/(increase) in debtors
49,238
(2,760,666)
(Decrease)/increase in creditors
(2,161,371)
1,964,315
Cash (absorbed by)/generated from operations
(1,091,270)
478,095
23
Analysis of changes in net debt
1 February 2023
Cash flows
31 January 2024
£
£
£
Cash at bank and in hand
50
-
50
Bank overdrafts
(970,261)
(1,914,663)
(2,884,924)
(970,211)
(1,914,663)
(2,884,874)
Borrowings excluding overdrafts
(3,780,428)
133,885
(3,646,543)
Obligations under finance leases
-
(453,862)
(453,862)
(4,750,639)
(2,234,640)
(6,985,279)
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