IRIS Accounts Production v24.3.0.553 04859976 Board of Directors 1.4.23 31.3.24 31.3.24 operation dairies & cheese making and wholesale of dairy produce. true false true true false false false true false Ordinary 1.00000 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REGISTERED NUMBER: 04859976 (England and Wales)















WELLS FARM DAIRY LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024






WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Profit and Loss Account 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 16


WELLS FARM DAIRY LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024







DIRECTORS: P A Holt
M C Holt
L E Holt





SECRETARY: L J Holt





REGISTERED OFFICE: Wells Farm
Bradley
Stafford
Staffordshire
ST18 9EE





REGISTERED NUMBER: 04859976 (England and Wales)

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024


The directors present their strategic report for the year ended 31 March 2024.

REVIEW OF BUSINESS
Strategic Management
The company continues its core activity of processing and packaging of liquid milk and cream production, distributing to the wholesale, food manufacturing, retail, education, care and hospitality sectors as well as increasing its consumer milk delivery businesses. Geographic reach has expanded from the principle site in Staffordshire and the satellite operation in Greater London. Focus on reducing single use plastics continues with increasing volumes of glass bottled products being sold. The full range of organic and conventional milk products is supplemented by wide and evolving range of morning goods and food staples.

Strategy is focused on long term business growth and sustainability objectives to support UK farming and food security. Shareholders continue to be committed to reinvesting profits to prioritise product quality and efficient farmer to consumer supply chain processes as well as continual focus on reducing the businesses carbon footprint. A new robotics line has been installed as well as technology to optimise water usage.

During the year a new storage and fleet workshop with the capabilities to outsource services has been built at the main site facilitating strategic buying of packaging and more efficient use of transport resources. Further investment in processing and chilling technology is planned. Systems and technology continue to be have been updated to improve our customer interface and administrative activities. The business is pleased to have increased the number of skilled roles it is able to offer

The Board is well supported by timely and detailed management information and operates with a compact management structure to enable rapid review and decision making. The Board is invested in next generational management and increasing the number of skilled roles available.

Business Environment
The UK economy has been mixed but subdued generally across the reported period. Interest rates have overtaken inflation as the key challenge for the consumer and business to manage. Milk prices settled after a volatile previous period where spot prices had exceeded 50 pence per litre. Other key costs for the business generally stabilised but fuel and power have continued to require constant planning and evaluation.

Business Performance and KPIs
Turnover increased by £1m to £50.45m in the period from a 13% increase in processed litres in with some cost deflation. Growth in sales volumes is a core KPI and unlike the previous period, the increase in turnover is volume rather than milk price driven. Associated turnover KPIs for profitable customer retention have also improved.

Profit KPIs focus on processed milk margin, production margin and operating margins from core product activity with costs tracked by processing volume. All these key margins rose during the reported year due to investments in efficient processing. The cream price versus milk price ratio also improved. The business tracks and investigates a variety of other performance KPIs including cost centres ratios with sales values and volumes.

A long running KPI for sustainability relates to producers as the board adheres to its policy of being an upper quartile payer for liquid milk within its market segment.

Profit before tax of £1.5m was achieved by effective use of financial facilities and the investment and improvements made to operating capabilities.

The investment programme reinvested £1.3m of profit over the reported year.


WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The company faces risks common to all industry operators of which the inherent and long running key risks are the fluctuation in price of uncontracted raw milk and maintaining a contracted milk field with an appropriate volume range to meet demand. We continue to work with our producer base to keep a balanced milk field, pay a leading price to the market sector and welcome new producers to the business.

The direct risks from Covid and Brexit passed in the prior year and the UK economy continues to adjust and modify to that legacy. The most obvious economic factor impacting customer behaviour is the heightened interest rates but a notable factor for consumers and the business is the 2 years of successive significant increases in the minimum wage. The Company continues to pay ahead of minimum wage movements.

The business does not operate outside of the UK and has no direct exposure to foreign exchange risk however this does impact the cost of imported machinery, polymers and glass.

Credit risk in the customer base is under continual monitoring. The company continues to have credit insurance and uses the rating agency CreditSafe to remain fully informed on credit choices across a diverse customer base. Some tolerance is provided where warranted and across the customer base, debtors days continue to remain steady with low bad debt incidence.

Liquidity risk is controlled and monitored by the use of daily cash flow forecasting for a minimum of a 6 month period, cash flow statement reporting within monthly management accounts and fully integrated trading projections including balance sheet and cash flow statement forecasts for an 18m outlook at all times. The invoice financing facilities provide ample working capital for the needs of the business.

Overall, the Board continues to prioritise the overall sustainability of the company, trading ethically and honestly with local producers, developing and investing in staff and providing customers with high quality products and a reliable service that supports their businesses' needs.

ON BEHALF OF THE BOARD:





P A Holt - Director


22 October 2024

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2024


The directors present their report with the financial statements of the company for the year ended 31 March 2024.

DIVIDENDS
During the year interim dividends of £42,400 were declared. The directors recommend that a final dividend of £85,000 is paid.

RESEARCH AND DEVELOPMENT
The research and development costs made during the year relate to advances and improvements to production equipment and processes to both increase capacity and efficiency, as well as enabling the dairy to meet more stringent regulatory requirements demanded by customers and potential customers.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

P A Holt
M C Holt
L E Holt

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT 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 company'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 company's auditors are aware of that information.

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2024


AUDITORS
The auditors, Deans, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





P A Holt - Director


22 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
WELLS FARM DAIRY LIMITED


Opinion
We have audited the financial statements of Wells Farm Dairy Limited (the 'company') for the year ended 31 March 2024 which comprise the Profit and Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 March 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.

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 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
WELLS FARM DAIRY LIMITED


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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

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 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, 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 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 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.

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:

- Communication with management before, during and after the audit fieldwork commences to confirm instances of non-compliance;
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluation of the business rationale of significant transactions outside the normal course of business;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

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
WELLS FARM DAIRY LIMITED


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.




Richard Stonier (Senior Statutory Auditor)
for and on behalf of Deans
Chartered Accountants, Statutory Auditor
Gibson House
Hurricane Court, Hurricane Close
Stafford
ST16 1GZ

31 October 2024

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024

2024 2023
Notes £    £   

TURNOVER 3 50,447,739 49,501,581

Cost of sales (44,703,136 ) (45,892,534 )
GROSS PROFIT 5,744,603 3,609,047

Administrative expenses (4,084,239 ) (2,779,587 )
1,660,364 829,460

Other operating income 48,752 45,099
OPERATING PROFIT 5 1,709,116 874,559

Interest receivable and similar income 2,713 2,106
Interest payable and similar expenses 7 (206,130 ) (240,917 )
PROFIT BEFORE TAXATION 1,505,699 635,748

Tax on profit 8 (396,902 ) (115,754 )
PROFIT FOR THE FINANCIAL YEAR 1,108,797 519,994

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 1,108,797 519,994


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR

1,108,797

519,994

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

BALANCE SHEET
31 MARCH 2024

2024 2023
Notes £    £   
FIXED ASSETS
Intangible assets 10 20,004 30,000
Tangible assets 11 3,648,677 3,053,609
3,668,681 3,083,609

CURRENT ASSETS
Stocks 12 551,888 619,568
Debtors 13 7,116,793 6,566,884
Cash at bank and in hand 49,539 122,567
7,718,220 7,309,019
CREDITORS
Amounts falling due within one year 14 (7,340,253 ) (7,287,494 )
NET CURRENT ASSETS 377,967 21,525
TOTAL ASSETS LESS CURRENT LIABILITIES 4,046,648 3,105,134

CREDITORS
Amounts falling due after more than one
year

15

(390,308

)

(479,514

)

PROVISIONS FOR LIABILITIES 19 (715,516 ) (582,793 )
NET ASSETS 2,940,824 2,042,827

CAPITAL AND RESERVES
Called up share capital 20 100 100
Retained earnings 21 2,940,724 2,042,727
SHAREHOLDERS' FUNDS 2,940,824 2,042,827

The financial statements were approved by the Board of Directors and authorised for issue on 22 October 2024 and were signed on its behalf by:





P A Holt - Director


WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 April 2022 100 1,650,133 1,650,233

Changes in equity
Dividends - (127,400 ) (127,400 )
Total comprehensive income - 519,994 519,994
Balance at 31 March 2023 100 2,042,727 2,042,827

Changes in equity
Dividends - (210,800 ) (210,800 )
Total comprehensive income - 1,108,797 1,108,797
Balance at 31 March 2024 100 2,940,724 2,940,824

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,567,048 932,690
Interest paid (160,769 ) (213,465 )
Interest element of hire purchase payments
paid

(45,361

)

(27,452

)
Tax paid (28,815 ) 412
Net cash from operating activities 2,332,103 692,185

Cash flows from investing activities
Purchase of intangible fixed assets - (30,000 )
Purchase of tangible fixed assets (1,295,623 ) (727,784 )
Sale of tangible fixed assets 52,783 59,780
Interest received 2,713 2,106
Net cash from investing activities (1,240,127 ) (695,898 )

Cash flows from financing activities
Loan repayments in year (273,809 ) (144,797 )
Loans to/from associates 18,680 (21,903 )
Invoice financing (812,239 ) 257,792
HP capital repayments in the year (345,438 ) (284,303 )
Amount introduced by directors 176,500 90,885
Amount withdrawn by directors (137,177 ) (181,062 )
New HP funding 419,279 451,648
Equity dividends paid (210,800 ) (127,400 )
Net cash from financing activities (1,165,004 ) 40,860

(Decrease)/increase in cash and cash equivalents (73,028 ) 37,147
Cash and cash equivalents at beginning of
year

2

122,567

85,420

Cash and cash equivalents at end of year 2 49,539 122,567

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024 2023
£    £   
Profit before taxation 1,505,699 635,748
Depreciation charges 653,243 574,660
Loss/(profit) on disposal of fixed assets 4,525 (23,356 )
Finance costs 206,130 240,917
Finance income (2,713 ) (2,106 )
2,366,884 1,425,863
Decrease/(increase) in stocks 67,680 (25,982 )
Increase in trade and other debtors (587,249 ) (517,416 )
Increase in trade and other creditors 719,733 50,225
Cash generated from operations 2,567,048 932,690

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 March 2024
31.3.24 1.4.23
£    £   
Cash and cash equivalents 49,539 122,567
Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 122,567 85,420


WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.4.23 Cash flow At 31.3.24
£    £    £   
Net cash
Cash at bank and in hand 122,567 (73,028 ) 49,539
122,567 (73,028 ) 49,539
Debt
Finance leases (623,143 ) (73,841 ) (696,984 )
Debts falling due within 1 year (2,460,363 ) 955,096 (1,505,267 )
Debts falling due after 1 year (130,952 ) 130,952 -
(3,214,458 ) 1,012,207 (2,202,251 )
Total (3,091,891 ) 939,179 (2,152,712 )

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024


1. STATUTORY INFORMATION

Wells Farm Dairy Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Turnover
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods
Turnover from the sale of milk and other goods is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Rental income
Rental income from operating leases is recognised on a straight-line basis over the lease term.

Interest receivable
Interest income is recognised using the effective interest method.

Goodwill
Goodwill, being the amount paid in connection with the transfer of a business in 2023, this will be amortised evenly over it's estimated useful life from 2024. Goodwill acquired on the acquisition of milk rounds has been fully amortised over a three year period.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

Leases
Assets acquired under finance leases and hire purchase contracts are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Employee benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Sales of goods 50,447,739 49,501,581
50,447,739 49,501,581

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 50,447,739 49,501,581
50,447,739 49,501,581

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 4,818,567 4,456,482
Social security costs 424,686 398,516
Other pension costs 103,985 64,776
5,347,238 4,919,774

The average number of employees during the year was as follows:
2024 2023

Production and distribution 115 112
Administration and finance 18 18
133 130

2024 2023
£    £   
Directors' remuneration 144,649 73,084

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Hire of plant and machinery 51,270 47,797
Other operating leases 140,850 128,850
Depreciation - owned assets 453,681 424,320
Depreciation - assets on hire purchase contracts 189,566 150,345
Loss/(profit) on disposal of fixed assets 4,525 (23,356 )
Goodwill amortisation 9,996 -

6. AUDITORS' REMUNERATION
2024 2023
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

15,435

14,700

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Invoice finance charges 145,662 184,363
Bank loans and overdrafts 15,107 29,102
Hire purchase 45,361 27,452
206,130 240,917

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 264,179 28,815

Deferred tax:
Origination and reversal
of timing differences 132,723 86,939
Tax on profit 396,902 115,754

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 1,505,699 635,748
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

376,425

120,792

Effects of:
Expenses not deductible for tax purposes 4,751 1,764
Capital allowances in excess of depreciation (116,997 ) (77,541 )
Utilisation of tax losses - (16,200 )
enhanced deduction
Origination and reversal of timing differences 132,723 86,939


Total tax charge 396,902 115,754

9. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 210,800 127,400

10. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 April 2023
and 31 March 2024 30,000
AMORTISATION
Amortisation for year 9,996
At 31 March 2024 9,996
NET BOOK VALUE
At 31 March 2024 20,004
At 31 March 2023 30,000

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


11. TANGIBLE FIXED ASSETS
Fixtures
Dairy Plant and and Motor
improvements machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 April 2023 1,285,026 4,732,958 69,143 1,480,855 7,567,982
Additions 195,550 430,330 - 669,743 1,295,623
Disposals - (11,289 ) - (195,752 ) (207,041 )
At 31 March 2024 1,480,576 5,151,999 69,143 1,954,846 8,656,564
DEPRECIATION
At 1 April 2023 921,935 2,730,131 37,668 824,639 4,514,373
Charge for year 90,799 324,522 4,716 223,210 643,247
Eliminated on disposal - - - (149,733 ) (149,733 )
At 31 March 2024 1,012,734 3,054,653 42,384 898,116 5,007,887
NET BOOK VALUE
At 31 March 2024 467,842 2,097,346 26,759 1,056,730 3,648,677
At 31 March 2023 363,091 2,002,827 31,475 656,216 3,053,609

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 April 2023 639,317 501,978 1,141,295
Additions 224,549 329,283 553,832
Disposals (2,750 ) - (2,750 )
Transfer to ownership (69,810 ) (126,270 ) (196,080 )
At 31 March 2024 791,306 704,991 1,496,297
DEPRECIATION
At 1 April 2023 81,601 187,280 268,881
Charge for year 57,869 131,697 189,566
Transfer to ownership (33,140 ) (86,823 ) (119,963 )
At 31 March 2024 106,330 232,154 338,484
NET BOOK VALUE
At 31 March 2024 684,976 472,837 1,157,813
At 31 March 2023 557,716 314,698 872,414

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


12. STOCKS
2024 2023
£    £   
Finished goods 551,888 619,568

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 6,333,211 5,962,535
Amounts owed by associates 8,473 7,153
Other debtors 137,804 2,635
Directors' current accounts 131,290 169,950
Other taxes 385,173 310,338
Prepayments and accrued income 120,842 114,273
7,116,793 6,566,884

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 16) - 142,857
Other loans (see note 16) 1,505,267 2,317,506
Hire purchase contracts (see note 17) 306,676 274,581
Trade creditors 4,724,389 4,102,409
Amounts owed to associates 20,000 -
Corporation tax 264,184 28,820
Social security and other taxes 105,979 79,159
Employee pensions 58,256 17,005
Wages creditor 112,554 73,441
Directors' current accounts 663 -
Accruals 242,285 251,716
7,340,253 7,287,494

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans (see note 16) - 130,952
Hire purchase contracts (see note 17) 390,308 348,562
390,308 479,514

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


16. DEBT

An analysis of the maturity of debt is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans - 142,857
Other Loan 1,505,267 2,317,506
1,505,267 2,460,363

Amounts falling due between one and two years:
Bank loans - 1-2 years - 130,952

Loans which are repayable by instalments which fall due within five years are to be repaid at a rate of £11,905 per month, starting September 2021 and attract an interest rate of 5.50% per annum.

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 306,676 274,581
Between one and five years 390,308 348,562
696,984 623,143

Non-cancellable operating leases
2024 2023
£    £   
Within one year 160,311 161,521
Between one and five years 28,613 53,677
188,924 215,198

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


18. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans - 273,809
Hire purchase contracts 696,984 623,143
Other loans 1,505,267 2,317,506
2,202,251 3,214,458

19. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 715,516 582,793

Deferred
tax
£   
Balance at 1 April 2023 582,793
Provided during year 132,723
Balance at 31 March 2024 715,516

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
100 Ordinary £1 100 100

21. RESERVES
Retained
earnings
£   

At 1 April 2023 2,042,727
Profit for the year 1,108,797
Dividends (210,800 )
At 31 March 2024 2,940,724

WELLS FARM DAIRY LIMITED (REGISTERED NUMBER: 04859976)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


22. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 March 2024 and 31 March 2023:

2024 2023
£    £   
P A Holt
Balance outstanding at start of year 169,950 81,175
Amounts advanced 131,340 179,660
Amounts repaid (170,000 ) (90,885 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 131,290 169,950

The director's loan has been provided at an interest rate of 2% and is repayable on demand. The total interest received in respect of the directors loan is £2,713.

23. RELATED PARTY DISCLOSURES

At the year end the company was owed £8,473 from a business under common control (2023 - £7,153).

At the year end the company owed £20,000 to a business under common control (2023 - £nil).

24. ULTIMATE CONTROLLING PARTY

The company is jointly controlled by M C Holt and P A Holt.