Company registration number 05649011 (England and Wales)
CLOVERLAIT LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
PAGES FOR FILING WITH REGISTRAR
CLOVERLAIT LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
CLOVERLAIT LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2024
31 January 2024
- 1 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
4
7,090
Tangible assets
5
6,585,134
6,452,956
Biological assets
6
299,940
313,200
6,885,074
6,773,246
Current assets
Stocks
297,691
245,670
Debtors
7
188,808
415,265
Cash at bank and in hand
45,948
84,552
532,447
745,487
Creditors: amounts falling due within one year
8
(748,689)
(79,032)
Net current (liabilities)/assets
(216,242)
666,455
Total assets less current liabilities
6,668,832
7,439,701
Creditors: amounts falling due after more than one year
9
(3,042,687)
(4,277,308)
Provisions for liabilities
(14,746)
Net assets
3,611,399
3,162,393
Capital and reserves
Called up share capital
2
2
Profit and loss reserves
3,611,397
3,162,391
Total equity
3,611,399
3,162,393
CLOVERLAIT LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 JANUARY 2024
31 January 2024
- 2 -
For the financial year ended 31 January 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
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:
Mrs S. R. King
Mr B. A. King
Director
Director
Company registration number 05649011 (England and Wales)
CLOVERLAIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -
1
Accounting policies
Company information
Cloverlait Limited is a private company limited by shares incorporated in England and Wales. The registered office is Manor Farm, Collingbourne Kingston, MARLBOROUGH, England, SN8 3SD.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
Prior period error
The prior year profit and loss and balance sheet has been adjusted to correct the closing stock figure. Cost of sales within the profit and loss has increased by £178,880 and stocks on the balance sheet has decreased by £178,880.
As a result this increased the carry forward losses in the deferred tax calculation, so the deferred tax liability decreased by £33,987. The deferred tax has also been corrected for the structure and buildings balance which was omitted which results in a reduction in the deferred tax liability of £43,038. Together, this results in a reduction of deferred tax of £77,025 which creates a deferred tax asset.
This has decreased the Profit and Loss Reserves brought forward by £101,855.
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 goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Nil/50 years straight line
Plant and equipment
15% on reducing balance
Tractors
15% on reducing balance
Motor vehicles
15% on reducing balance
CLOVERLAIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 4 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Biological assets
Biological assets are recognised only when three recognition criteria have been fulfilled:
the entity has control over the asset as a result of past events;
it is probable that future economic benefits associated with the asset will flow to the entity; and
the fair value or cost of the asset can be measured reliably.
The company measures biological assets at cost less accumulated depreciation and accumulated impairment losses.
In respect of agricultural produce harvested from a biological asset, this is measured at the point of harvest at lower of cost and estimated selling price less costs to complete and sell.
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:
Dairy
Over 5 years
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.
CLOVERLAIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 5 -
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.
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.
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.
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.
CLOVERLAIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 6 -
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.
1.12
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.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
CLOVERLAIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 7 -
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.
2
Change in accounting policy
The 31 January 2023 comparative figures in the profit and loss account have been restated, following a change in accounting policy relating to the treatment of certain expenses. The directors believe this policy represents a truer and fairer presentation within the financial statements. As a result of this change in accounting policy, turnover have decreased by £38,399, cost of sales have increased by £473,694, administrative expenses have decreased by £427,443, other operating income have increased by £38,399 and interest payable and similar expenses have increased by £132,629. This has also had the effect of reducing gross profit by £512,093, decreasing operating profit by £46,251 and a loss before tax of £3,658.
The deferred tax adjustment has increased tax on profit by £77,025 and in turn reduced the total profit for the year to £145,529.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
4
4
CLOVERLAIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 8 -
4
Intangible fixed assets
Intangible Assets
£
Cost
At 1 February 2023
41,610
Disposals
(41,610)
At 31 January 2024
-
Amortisation and impairment
At 1 February 2023
34,520
Disposals
(34,520)
At 31 January 2024
-
Carrying amount
At 31 January 2024
-
At 31 January 2023
7,090
5
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Tractors
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
6,052,716
476,443
105,224
86,891
6,721,274
Additions
118,014
25,409
155,000
4,075
302,498
Disposals
(105,224)
(105,224)
At 31 January 2024
6,170,730
501,852
155,000
90,966
6,918,548
Depreciation and impairment
At 1 February 2023
163,037
42,842
62,439
268,318
Depreciation charged in the year
38,170
49,280
16,463
4,025
107,938
Eliminated in respect of disposals
(42,842)
(42,842)
At 31 January 2024
38,170
212,317
16,463
66,464
333,414
Carrying amount
At 31 January 2024
6,132,560
289,535
138,537
24,502
6,585,134
At 31 January 2023
6,052,716
313,406
62,382
24,452
6,452,956
CLOVERLAIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 9 -
6
Biological assets
Dairy
£
Cost
At 1 February 2023
360,800
Additions
92,000
Disposals
(76,000)
At 31 January 2024
376,800
Depreciation and impairment
At 1 February 2023
47,600
Depreciation charged for the year
44,460
Disposals
(15,200)
At 31 January 2024
76,860
Carrying amount
At 31 January 2024
299,940
At 31 January 2023
313,200
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
67,490
31,090
Other debtors
121,318
358,316
188,808
389,406
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset
25,859
Total debtors
188,808
415,265
CLOVERLAIT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 10 -
8
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
162,851
Trade creditors
74,602
56,326
Taxation and social security
3,219
Other creditors
511,236
19,487
748,689
79,032
The hire purchase liabilities of £30,952 (2023 - £14,802) are secured on the assets to which they relate. The bank loans of £162,851 (2023 - £0) are secured over freehold property.
9
Creditors: amounts falling due after more than one year
2024
2023
£
£
Other creditors
3,042,687
4,277,308
The hire purchase liabilities of £51,309 (2023 - £16,365) are secured on the assets to which they relate. The bank loans of £2,951,338 (2023 - £4,260,943) are secured over freehold property.
Creditors which fall due after five years are as follows:
2024
2023
£
£
Payable by instalments
2,431,022
-
10
Directors' transactions
At the year end the company owed the directors £462,933. This loan is repayable on demand and interest free.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors loan
2.25
100,678
664
77
(101,419)
-
Directors loan
2.25
100,678
330
77
(101,085)
-
201,356
994
154
(202,504)
-