REGISTERED NUMBER: 09686568 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 October 2023 |
for |
Claydon Family Holdings Limited |
REGISTERED NUMBER: 09686568 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 October 2023 |
for |
Claydon Family Holdings Limited |
Claydon Family Holdings Limited (Registered number: 09686568) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 October 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 18 |
Claydon Family Holdings Limited |
Company Information |
for the Year Ended 31 October 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Lake House |
Market Hill |
Royston |
Hertfordshire |
SG8 9JN |
Claydon Family Holdings Limited (Registered number: 09686568) |
Group Strategic Report |
for the Year Ended 31 October 2023 |
The directors present their strategic report of the company and the group for the year ended 31 October 2023. |
REVIEW OF BUSINESS |
The directors are pleased with the results of the group. The group reports another record-breaking level of turnover and profits. |
The directors consider the key performance indicators to be as follows: |
2023 | 2022 |
£'000000 | £'000000 |
Turnover | 13,815 | 11,696 |
Gross profit | 4,916 | 4,178 |
Net profit | 1,720 | 1,788 |
Net assets | 10,490 | 8,946 |
The group has had two very strong years, both 2023 and 2022 have been record-breaking, despite the significant challenges around component and labour supply. The business' main revenue generation came from the sale of its Hybrid Trailed Drills to its European customer base and Hybrid Mounted Drills to the UK, with supplementary income from Straw Harrow, TerraStar and Terrablade products. The business also had a very strong trade for spare parts during the period too, with many dealers being prepared to take a stock of spare parts due to the shortages in the market. |
During this period the business was developing, and finally launched in October 2023, the New Evolution Mounted Drill which has replaced the Mounted Hybrid Drill. The market has responded fantastically to the introduction of this model update and sales have been very strong. In addition to this, front hopper and toolbar versions of this machine have been developed and launched in 2024. |
Grain prices were strong in the period of 2022-2023 with a surge in commodity prices across the board which increased the cost of machinery too. This meant that E.T. Claydon and Sons our contracting partner and symbiotic business purchased a new main tractor costing £260,000 as there was an opportunity to buy before the price increased significantly. The purchase has put the businesses in a good position with fixed costs due to the warranty for the next 5 years+. |
Yields from crops where average but the grain price more than made up for this making it a great year for Claydon Family Holdings. |
Given the circumstances, the directors are satisfied with the progress made during the year, especially when taking into consideration the turbulent post Covid environment with challenges for both the supply of components and labour in a way nobody has seen in decades. |
PRINCIPAL RISKS AND UNCERTAINTIES |
During the course of its business the main trading company of the group. Claydon Yield-o-Meter Ltd is exposed to relatively low levels of financial risks which are dealt with in the next section. |
In regards to the agricultural side of the group, unfortunately agriculture has many risks primarily including the weather which has huge impacts on crop yields, commodity prices, currency strength, staffing and labour, input and machinery prices/costs too. It is also an industry that is rarely able to do anything to enhance the price of its product which is defined by the commodities market. Fortunately for Claydon Family Holdings the farm is run using Claydon equipment which offers a considerably lower cost of establishing crops than the majority of other systems out there. The system has proven over 2 decades to also maintain yields above the majority of systems out there too. As the limited company CFH and the partnership ETC are both owned and run by Claydon family members the payroll is kept very low too, significantly reducing risks compared to other businesses in the sector. |
Other risks include but are not limited to the failure to comply with legislative and regulatory requirements including environmental and litigation failures, business continuity and the actions of customers and competitors. The Group has implemented risk controls and loss mitigation plans but cannot give absolute assurance that such procedures will be effective in identifying or controlling each of the operational risks faced by the Group. |
Claydon Family Holdings Limited (Registered number: 09686568) |
Group Strategic Report |
for the Year Ended 31 October 2023 |
FINANCIAL RISK MANAGEMENT POLICIES |
The overall aim of the group financial risk management policy is to minimise potential adverse effects on financial performance and net assets. In the course of the business, the group is exposed primarily to foreign exchange risk, liquidity risk and credit risk. Interest rate is not considered significant as the group does not have any liabilities that accrue significant interest and interest income on bank deposits is not material. |
The group manages the principal financial risk within policies and operating parameters approved by the Board of Directors. The group does not enter into speculative transactions. |
i) Foreign currency risk |
The group operates domestically and overseas. The group does hedge certain cash flows when the directors believe this to be appropriate. |
ii) Liquidity risk |
The group's policy on liquidity risk is to ensure that sufficient cash is available to fund on-going operations without the need to carry significant net debt. Where appropriate financing can be negotiated, assets may be purchased under finance lease agreement. The extent of this financing is not considered material. |
iii) Credit risk |
Credit risk arises on financial instruments such as trade receivables. Policies and procedures exist to ensure that |
customers have an appropriate credit history. Machinery is generally not released to customers until payment is received in full. Overall, the group considers that it is not exposed to a significant amount of credit risk. |
OUTLOOK AHEAD |
Management are focused on continued product development and identifying new products and markets in which to trade. |
ON BEHALF OF THE BOARD: |
Claydon Family Holdings Limited (Registered number: 09686568) |
Report of the Directors |
for the Year Ended 31 October 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 October 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the manufacture and sale of specialised agricultural machinery to the farming industry. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 October 2023 will be £ 176,000 . |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Claydon Family Holdings Limited (Registered number: 09686568) |
Report of the Directors |
for the Year Ended 31 October 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Claydon Family Holdings Limited |
Opinion |
We have audited the financial statements of Claydon Family Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 31 October 2023 and of the group's 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Claydon Family Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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: |
Our approach was as follows:- |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that related to the reporting framework (FRS 102 and Companies Act 2006). |
In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements being those relating to the environment, occupational health and safety. |
We obtained an understanding to how the group is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through correspondence with management and a review of any correspondence received from regulatory bodies. |
We assessed the susceptivity of the group's financial statements to material misstatement, including how fraud might occur by meeting with management from various parts of the business to understand the systems and controls of the group. |
Based on our understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified in the paragraphs above. Our procedures involved; journal entry testing; focusing on manual journals and journals indicating large or unusual transactions based on our understanding of the business; enquiries of management and focused testing in relation to revenue and management override. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Claydon Family Holdings Limited |
Other matters which we are required to address |
The financial statements of Claydon Family Holdings Limited Group for the year ended 31 October 2022 were unaudited. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 a Report of the Auditors 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. |
for and on behalf of |
Lake House |
Market Hill |
Royston |
Hertfordshire |
SG8 9JN |
Claydon Family Holdings Limited (Registered number: 09686568) |
Consolidated |
Income Statement |
for the Year Ended 31 October 2023 |
31.10.23 | 31.10.22 |
Notes | £ | £ |
TURNOVER | 3 | 13,815,166 | 11,695,984 |
Cost of sales | 8,899,376 | 7,517,810 |
GROSS PROFIT | 4,915,790 | 4,178,174 |
Administrative expenses | 2,615,436 | 1,932,817 |
2,300,354 | 2,245,357 |
Other operating income | 17,694 | 10,470 |
OPERATING PROFIT | 5 | 2,318,048 | 2,255,827 |
Interest receivable and similar income | 5,979 | 170 |
2,324,027 | 2,255,997 |
Interest payable and similar expenses | 6 | 70,962 | 50,332 |
PROFIT BEFORE TAXATION | 2,253,065 | 2,205,665 |
Tax on profit | 7 | 532,585 | 416,860 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,720,480 | 1,788,805 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 October 2023 |
31.10.23 | 31.10.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,720,480 | 1,788,805 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,720,480 |
1,788,805 |
Total comprehensive income attributable to: |
Owners of the parent | 1,720,480 | 1,788,805 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Consolidated Balance Sheet |
31 October 2023 |
31.10.23 | 31.10.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 4,854,172 | 4,645,175 |
Investments | 12 | - | - |
4,854,172 | 4,645,175 |
CURRENT ASSETS |
Stocks | 13 | 5,827,047 | 4,115,143 |
Debtors | 14 | 1,608,341 | 1,191,259 |
Cash at bank and in hand | 2,281,687 | 2,806,775 |
9,717,075 | 8,113,177 |
CREDITORS |
Amounts falling due within one year | 15 | 2,398,533 | 2,121,555 |
NET CURRENT ASSETS | 7,318,542 | 5,991,622 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
12,172,714 |
10,636,797 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(1,356,182 |
) |
(1,411,645 |
) |
PROVISIONS FOR LIABILITIES | 19 | (326,121 | ) | (279,221 | ) |
NET ASSETS | 10,490,411 | 8,945,931 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 200 | 200 |
Retained earnings | 21 | 10,490,211 | 8,945,731 |
SHAREHOLDERS' FUNDS | 10,490,411 | 8,945,931 |
The financial statements were approved by the Board of Directors and authorised for issue on 31 October 2024 and were signed on its behalf by: |
J Claydon - Director |
Claydon Family Holdings Limited (Registered number: 09686568) |
Company Balance Sheet |
31 October 2023 |
31.10.23 | 31.10.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,230,450 | 208,548 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Claydon Family Holdings Limited (Registered number: 09686568) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 October 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2021 | 200 | 7,296,926 | 7,297,126 |
Changes in equity |
Dividends | - | (140,000 | ) | (140,000 | ) |
Total comprehensive income | - | 1,788,805 | 1,788,805 |
Balance at 31 October 2022 | 200 | 8,945,731 | 8,945,931 |
Changes in equity |
Dividends | - | (176,000 | ) | (176,000 | ) |
Total comprehensive income | - | 1,720,480 | 1,720,480 |
Balance at 31 October 2023 | 200 | 10,490,211 | 10,490,411 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Company Statement of Changes in Equity |
for the Year Ended 31 October 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2023 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Consolidated Cash Flow Statement |
for the Year Ended 31 October 2023 |
31.10.23 | 31.10.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 459,560 | 1,422,765 |
Interest paid | (70,226 | ) | (50,332 | ) |
Interest element of hire purchase payments paid |
(736 |
) |
- |
Tax paid | (421,772 | ) | (349,380 | ) |
Net cash from operating activities | (33,174 | ) | 1,023,053 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (341,433 | ) | (635,242 | ) |
Sale of tangible fixed assets | 2,791 | 325 |
Interest received | 5,979 | 170 |
Net cash from investing activities | (332,663 | ) | (634,747 | ) |
Cash flows from financing activities |
New loans in year | 110,587 | 810,848 |
Loan repayments in year | (133,124 | ) | (1,416,083 | ) |
Capital repayments in year | (2,264 | ) | (13,859 | ) |
Amount introduced by directors | 41,426 | 91,700 |
Equity dividends paid | (176,000 | ) | (140,000 | ) |
Net cash from financing activities | (159,375 | ) | (667,394 | ) |
Decrease in cash and cash equivalents | (525,212 | ) | (279,088 | ) |
Cash and cash equivalents at beginning of year |
2 |
2,806,775 |
3,085,863 |
Cash and cash equivalents at end of year | 2 | 2,281,563 | 2,806,775 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 October 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.10.23 | 31.10.22 |
£ | £ |
Profit before taxation | 2,253,065 | 2,205,665 |
Depreciation charges | 131,052 | 93,648 |
Profit on disposal of fixed assets | (1,407 | ) | (325 | ) |
Finance costs | 70,962 | 50,332 |
Finance income | (5,979 | ) | (170 | ) |
2,447,693 | 2,349,150 |
Increase in stocks | (1,711,904 | ) | (1,296,816 | ) |
Increase in trade and other debtors | (417,082 | ) | (78,664 | ) |
Increase in trade and other creditors | 140,853 | 449,095 |
Cash generated from operations | 459,560 | 1,422,765 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 October 2023 |
31.10.23 | 1.11.22 |
£ | £ |
Cash and cash equivalents | 2,281,687 | 2,806,775 |
Bank overdrafts | (124 | ) | - |
2,281,563 | 2,806,775 |
Year ended 31 October 2022 |
31.10.22 | 1.11.21 |
£ | £ |
Cash and cash equivalents | 2,806,775 | 3,165,917 |
Bank overdrafts | - | (80,054 | ) |
2,806,775 | 3,085,863 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 October 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.11.22 | Cash flow | At 31.10.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,806,775 | (525,088 | ) | 2,281,687 |
Bank overdrafts | - | (124 | ) | (124 | ) |
2,806,775 | (525,212 | ) | 2,281,563 |
Debt |
Finance leases | - | (108,323 | ) | (108,323 | ) |
Debts falling due within 1 year | (133,125 | ) | (3,015 | ) | (136,140 | ) |
Debts falling due after 1 year | (1,411,645 | ) | 136,139 | (1,275,506 | ) |
(1,544,770 | ) | 24,801 | (1,519,969 | ) |
Total | 1,262,005 | (500,411 | ) | 761,594 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 October 2023 |
1. | STATUTORY INFORMATION |
Claydon Family Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
Acquisition accounting is used to account for the subsidiaries of the Group. Identifiable assets and liabilities of the entities acquired are measured initially in the consolidated balance sheet at their fair value at the date of acquisition. The results and cash flows of acquired entities are brought into the group accounts only from the date of acquisition. The difference between the fair value of the net identifiable assets acquired and the fair value of the purchase consideration is goodwill. |
Inter-company transactions, balances and unrealised gains on transactions between group companies are eliminated. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that effect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had a significant effect on amounts recognised in the financial statements: |
a) The warranty provision included in the accounts is estimated on a monthly basis using the total revenue of wholegood stock and historical warranty cost data. The current years' warranty expense is compared to the previous years' provision to aid management in applying the most appropriate rate possible. |
b) The annual depreciation charge for all assets is sensitive to changes in the estimated useful economic |
lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. |
c) A stock provision is made for slow moving stock. Where the stock provision does not adequately write down the value of certain parts and machines an additional provision is made. |
Turnover |
Turnover is stated net of VAT and trade discounts. Turnover from the sale of goods is recognised when the goods are physically delivered to the customer. Where payments are received from customers in advance of the delivery of goods, the amounts recorded as deferred income and included as part of creditors due within one year. |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold land | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. |
No depreciation is provided on freehold property and improvements to property. This is due to the residual value of the buildings being considered to be not less than current net book value having regard to them being self-built and receiving continued refurbishment works as required in forthcoming years. |
Land is not depreciated as it is considered to have an indefinite useful life. |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Stocks are valued at the lower of cost and net realisable value, after making allowance for obsolete and slow moving items. |
A stock provision is provided in the accounts against the total valuation of parts stock on a monthly basis. If this provision does not adequately write down the value of certain parts to the correct value, an additional impairment is included in the accounts to ensure that all line items are held at the lower of cost and net realisable value. The rate of this provision is reviewed by management as appropriate. |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. |
Basic financial assets |
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
Basic financial liabilities |
Basic financial liabilities, including creditors and loans 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. |
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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
31.10.23 | 31.10.22 |
£ | £ |
United Kingdom | 5,668,171 | 4,935,824 |
Europe | 8,142,951 | 6,760,160 |
Oceania | 4,044 | - |
13,815,166 | 11,695,984 |
4. | EMPLOYEES AND DIRECTORS |
31.10.23 | 31.10.22 |
£ | £ |
Wages and salaries | 2,302,771 | 1,750,807 |
Social security costs | 235,175 | 179,820 |
Other pension costs | 121,971 | 36,164 |
2,659,917 | 1,966,791 |
The average number of employees during the year was as follows: |
31.10.23 | 31.10.22 |
Management | 2 | 2 |
Production | 47 | 43 |
Administration | 19 | 15 |
The average number of employees by undertakings that were proportionately consolidated during the year was NIL (2022 - NIL). |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
31.10.23 | 31.10.22 |
£ | £ |
Directors' remuneration | 114,516 | 105,880 |
Directors' pension contributions to money purchase schemes | 6,277 | 1,942 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.10.23 | 31.10.22 |
£ | £ |
Hire of plant and machinery | 18,074 | 16,648 |
Other operating leases | 11,498 | 10,251 |
Depreciation - owned assets | 127,090 | 82,334 |
Depreciation - assets on hire purchase contracts | 3,962 | 11,314 |
Profit on disposal of fixed assets | (1,407 | ) | (325 | ) |
Auditors' remuneration | 37,645 | - |
Foreign exchange differences | (171,185 | ) | (175,133 | ) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.10.23 | 31.10.22 |
£ | £ |
Bank loan interest | 70,226 | 44,235 |
Other interest and charges | - | 3,534 |
HMRC interest | - | 2,563 |
Hire purchase | 736 | - |
70,962 | 50,332 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.10.23 | 31.10.22 |
£ | £ |
Current tax: |
UK corporation tax | 494,357 | 392,847 |
Deferred tax | 38,228 | 24,013 |
Tax on profit | 532,585 | 416,860 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.10.23 | 31.10.22 |
£ | £ |
Profit before tax | 2,253,065 | 2,205,665 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
563,266 |
419,076 |
Effects of: |
Expenses not deductible for tax purposes | 30,677 | 2,153 |
Due to change in rate | (54,584 | ) | - |
Super deduction | (2,367 | ) | (7,793 | ) |
Foreign taxes | (4,407 | ) | 3,424 |
Total tax charge | 532,585 | 416,860 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
31.10.23 | 31.10.22 |
£ | £ |
Final | 176,000 | 140,000 |
10. | PERSONAL GUARANTEE |
J Claydon and F Claydon have provided personal guarantees to the value of £2.5m as security against the bank borrowings. |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
land | property | machinery |
£ | £ | £ |
COST |
At 1 November 2022 | 2,810,261 | 1,490,764 | 1,010,501 |
Additions | - | - | 206,155 |
Disposals | - | - | (5,800 | ) |
At 31 October 2023 | 2,810,261 | 1,490,764 | 1,210,856 |
DEPRECIATION |
At 1 November 2022 | - | - | 729,737 |
Charge for year | - | - | 86,070 |
Eliminated on disposal | - | - | (5,793 | ) |
At 31 October 2023 | - | - | 810,014 |
NET BOOK VALUE |
At 31 October 2023 | 2,810,261 | 1,490,764 | 400,842 |
At 31 October 2022 | 2,810,261 | 1,490,764 | 280,764 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 November 2022 | 56,781 | 145,192 | 28,212 | 5,541,711 |
Additions | 4,995 | 117,842 | 12,441 | 341,433 |
Disposals | - | (10,700 | ) | - | (16,500 | ) |
At 31 October 2023 | 61,776 | 252,334 | 40,653 | 5,866,644 |
DEPRECIATION |
At 1 November 2022 | 41,560 | 105,659 | 19,580 | 896,536 |
Charge for year | 6,187 | 28,756 | 10,039 | 131,052 |
Eliminated on disposal | - | (9,323 | ) | - | (15,116 | ) |
At 31 October 2023 | 47,747 | 125,092 | 29,619 | 1,012,472 |
NET BOOK VALUE |
At 31 October 2023 | 14,029 | 127,242 | 11,034 | 4,854,172 |
At 31 October 2022 | 15,221 | 39,533 | 8,632 | 4,645,175 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
Additions | 115,447 |
At 31 October 2023 | 115,447 |
DEPRECIATION |
Charge for year | 3,962 |
At 31 October 2023 | 3,962 |
NET BOOK VALUE |
At 31 October 2023 | 111,485 |
Company |
Freehold |
land |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2022 |
and 31 October 2023 |
NET BOOK VALUE |
At 31 October 2023 |
At 31 October 2022 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Gaines Hall, Attleton Green, Wickhambrook, Newmarket, Suffolk, CB8 8YA |
Nature of business: |
% |
Class of shares: | holding |
CLAYDON S.A.R.L |
Registered office: 18 Rue Gambetta, 95880 Enghien-Les-Bains, France |
Nature of business: Wholesale trade of agricultural equipment |
% |
Class of shares: | holding |
Ordinary | 100.00 |
13. | STOCKS |
Group | Company |
31.10.23 | 31.10.22 | 31.10.23 | 31.10.22 |
£ | £ | £ | £ |
Valuation | 70,811 | 134,381 | 70,811 | 134,381 |
Raw materials | 4,486,245 | 2,849,020 |
Work-in-progress | 597,511 | 379,971 |
Finished goods | 672,480 | 751,771 |
5,827,047 | 4,115,143 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.10.23 | 31.10.22 | 31.10.23 | 31.10.22 |
£ | £ | £ | £ |
Trade debtors | 653,491 | 689,632 |
Other debtors | 587,889 | 327,248 |
VAT | 954 | - |
Prepayments and accrued income | 366,007 | 174,379 |
1,608,341 | 1,191,259 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.10.23 | 31.10.22 | 31.10.23 | 31.10.22 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 136,264 | 133,125 |
Hire purchase contracts (see note 18) | 27,647 | - |
Trade creditors | 1,059,553 | 976,009 |
Tax | 329,714 | 257,129 |
Social security and other taxes | 101,732 | 64,588 |
VAT | - | 4,030 | - | 4,030 |
Other creditors | 155,797 | 94,493 |
Directors' current accounts | 369,286 | 327,860 | - | - |
Accruals and deferred income | 218,540 | 264,321 |
2,398,533 | 2,121,555 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.10.23 | 31.10.22 |
£ | £ |
Bank loans (see note 17) | 1,275,506 | 1,411,645 |
Hire purchase contracts (see note 18) | 80,676 | - |
1,356,182 | 1,411,645 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.10.23 | 31.10.22 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 124 | - |
Bank loans | 136,140 | 133,125 |
136,264 | 133,125 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 576,959 | 576,959 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 698,547 | 834,686 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.10.23 | 31.10.22 |
£ | £ |
Net obligations repayable: |
Within one year | 27,647 | - |
Between one and five years | 80,676 | - |
108,323 | - |
Group |
Non-cancellable operating | leases |
31.10.23 | 31.10.22 |
£ | £ |
Within one year | 1,155 | 9,288 |
Between one and five years | 2,722 | 3,877 |
3,877 | 13,165 |
19. | PROVISIONS FOR LIABILITIES |
Group |
31.10.23 | 31.10.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 104,830 | 66,602 |
Other provisions | 221,291 | 212,619 |
Aggregate amounts | 326,121 | 279,221 |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 November 2022 | 66,602 | 212,619 |
Provided during year | 38,228 | 8,672 |
Balance at 31 October 2023 | 104,830 | 221,291 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.10.23 | 31.10.22 |
value: | £ | £ |
Ordinary | £1 | 200 | 200 |
Claydon Family Holdings Limited (Registered number: 09686568) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
21. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 November 2022 | 8,945,731 |
Profit for the year | 1,720,480 |
Dividends | (176,000 | ) |
At 31 October 2023 | 10,490,211 |
Company |
Retained |
earnings |
£ |
At 1 November 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 October 2023 |
22. | PENSION COMMITMENTS |
The pension cost charge represents contributions payable by the group to the fund and amounted to £121,970 (2022: £36,164). At the end of the year 31 October 2023 there was a balance of £30,511 (2022: £8,769) outstanding to be paid. |
23. | CAPITAL COMMITMENTS |
At the year end the group was committed to purchasing a tangible fixed asset with a total cost of £182,450. These financial statements include a deposit totalling £72,980 towards this agreement. |
24. | RELATED PARTY DISCLOSURES |
At the balance sheet date the directors of the group were owed a total of £369,286 (2022: £327,860) from the group. No interest is charged on the loans to directors and are repayable on demand. |
25. | POST BALANCE SHEET EVENTS |
On 22 November 2023, the parent company repurchased 40 Ordinary £1 shares for a cash consideration of £1,000,000. |
26. | SECURITY |
Claydon Family Holdings Limited has provided security against a loan taken out in the name of its subsidiary company, Claydon Yield-O-Meter Ltd. The company has offered 265 acres of land as security and a cross guarantee and debenture is in place between the two companies. |