Company Registration No. 01007294 (England and Wales)
Evershot Farms Limited
Annual report and financial statements
for the year ended 31 March 2024
Evershot Farms Limited
Company information
Directors
The Hon Charlotte Townshend DL
J R Townshend
Secretary
M K Scrace
Company number
01007294
Registered office
The Estate Office
Melbury Sampford
Dorchester
Dorset
DT2 0LF
Independent auditor
Saffery LLP
Midland House
2 Poole Road
Bournemouth
Dorset
BH2 5QY
Bankers
Santander UK plc
2 Triton Square
Regents Place
London
NW1 3AN
Solicitors
Charles Russell Speechlys LLP
5 Fleet Place
London
EC4M 7RD
Evershot Farms Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
Evershot Farms Limited
Strategic report
For the year ended 31 March 2024
1
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
The principal activity of the company continued to be that of farming.
The results for the year show a pre-tax loss of £1,251,573 (2023: £1,612,935 profit) on turnover of £11,371,701 (2023: £13,520,626).
Principal risks and uncertainties
The management of the business and execution of the company's strategy are subject to a number of risks. These being:
-Weather;
-External market prices;
-Disease;
-Environmental;
-Exchange rates.
The risks of bad weather and external market prices (including those affected by exchange rates) cannot be mitigated. However these are risks that all farming businesses are subject to.
The risk of disease is mitigated by a mixture of vaccination programmes, good animal husbandry practices and insurance.
The environmental risks mainly relate to the disposal of slurry. Some of the slurry generated is used in a biodigester.
Development and performance
The balance sheet shows that the retained earnings at the year end have decreased from £3,155,421 to £2,211,922 due to the loss in the year.
Key performance indicators
Given the straightforward nature of the business, the company's directors are of the opinion that analysis using KPI's is not necessary for an understanding of the development, performance or position of the business.
The Hon Charlotte Townshend DL
Director
18 September 2024
Evershot Farms Limited
Directors' report
For the year ended 31 March 2024
2
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of farming.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The Hon Charlotte Townshend DL
J R Townshend
Auditor
Saffery LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006. Saffery LLP have expressed their willingness to continue in office.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
The Hon Charlotte Townshend DL
Director
18 September 2024
Evershot Farms Limited
Directors' responsibilities statement
For the year ended 31 March 2024
3
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law).
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Evershot Farms Limited
Independent auditor's report
To the members of Evershot Farms Limited
4
Opinion
We have audited the financial statements of Evershot Farms Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Evershot Farms Limited
Independent auditor's report (continued)
To the members of Evershot Farms Limited
5
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Evershot Farms Limited
Independent auditor's report (continued)
To the members of Evershot Farms Limited
6
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Other matters which we are required to address
In the previous accounting period the company took advantage of the audit exemption under s477 of the Companies Act 2006. Therefore the comparative financial information presented in the financial statements has not been subjected to audit.
Evershot Farms Limited
Independent auditor's report (continued)
To the members of Evershot Farms Limited
7
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Hannah Mazrae
Senior Statutory Auditor
For and on behalf of Saffery LLP
18 September 2024
Statutory Auditors
Midland House
2 Poole Road
Bournemouth
Dorset
BH2 5QY
Evershot Farms Limited
Statement of income and retained earnings
For the year ended 31 March 2024
8
2024
2023
Notes
£
£
Turnover
3
11,371,701
13,520,626
Cost of sales
(8,567,438)
(7,911,133)
Gross profit
2,804,263
5,609,493
Administrative expenses
(3,787,836)
(3,772,867)
Operating (loss)/profit
6
(983,573)
1,836,626
Interest receivable and similar income
7
440
28
Interest payable and similar expenses
8
(268,440)
(223,719)
(Loss)/profit before taxation
(1,251,573)
1,612,935
Tax on (loss)/profit
9
308,074
(236,848)
(Loss)/profit for the financial year
(943,499)
1,376,087
Retained earnings brought forward
3,155,421
1,779,334
Retained earnings carried forward
2,211,922
3,155,421
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Evershot Farms Limited
Balance sheet
As at 31 March 2024
9
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,942,795
3,932,887
Biological assets
11
4,565,153
5,409,903
8,507,948
9,342,790
Current assets
Biological assets
11
288,324
664,002
Stocks
5,181,603
5,226,519
Debtors
12
1,554,521
1,647,568
Cash at bank and in hand
80,266
12,678
7,104,714
7,550,767
Creditors: amounts falling due within one year
13
(1,914,823)
(2,169,269)
Net current assets
5,189,891
5,381,498
Total assets less current liabilities
13,697,839
14,724,288
Creditors: amounts falling due after more than one year
14
(7,694,500)
(7,752,500)
Provisions for liabilities
(342,528)
(367,478)
Net assets
5,660,811
6,604,310
Capital and reserves
Called up share capital
18
3,448,889
3,448,889
Profit and loss reserves
2,211,922
3,155,421
Total equity
5,660,811
6,604,310
The financial statements were approved by the board of directors and authorised for issue on 18 September 2024 and are signed on its behalf by:
The Hon Charlotte Townshend DL
Director
Company Registration No. 01007294
Evershot Farms Limited
Statement of cash flows
For the year ended 31 March 2024
10
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
989,622
733,725
Interest paid
(268,440)
(223,719)
Income taxes paid
(253,056)
(47,436)
Net cash inflow from operating activities
468,126
462,570
Investing activities
Purchase of tangible fixed assets
(376,862)
(562,278)
Proceeds from disposal of tangible fixed assets
33,884
113,309
Interest received
440
28
Net cash used in investing activities
(342,538)
(448,941)
Financing activities
Repayment of bank loans
(58,000)
(58,000)
Net cash used in financing activities
(58,000)
(58,000)
Net increase/(decrease) in cash and cash equivalents
67,588
(44,371)
Cash and cash equivalents at beginning of year
12,678
57,049
Cash and cash equivalents at end of year
80,266
12,678
Evershot Farms Limited
Notes to the financial statements
For the year ended 31 March 2024
11
1
Accounting policies
Company information
Evershot Farms Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Estate Office, Melbury Sampford, Dorchester, Dorset, DT2 0LF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
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 or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Long leasehold property
over the period of the lease on a straight line basis
Plant and machinery
5% to 33.3% per annum on a reducing balance basis
Improvements to property
5-10% per annum on a reducing balance / straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Evershot Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
12
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Biological assets held by the company relate to farm livestock and deer.
Farm livestock, including cattle and sheep, are measured at fair value less costs to sell. The fair value of livestock is determined based on market prices of livestock of similar age, breed and genetic merit.
Deer are measured at cost less depreciation. Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives, being 9 years.
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.
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.
Evershot Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
13
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Evershot Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
14
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Evershot Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
1
Accounting policies (continued)
15
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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
The company provides pensions to certain staff through defined contribution schemes. The amount charged to the profit and loss account is the contributions payable in the year.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred.
1.16
Income is only recognised once the land has been eligible for the entire calendar year and has been held by the company on the entitlement date, this being 15 May in each claim year.
In the event that the conditions for the receipt of the Basic Payment Scheme have not been met, income recognition is deferred until such time as those conditions can be assumed to have been met and there is reasonable assurance that the Basic Payment Scheme income will be received.
Evershot Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
16
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Dairy
7,711,863
10,908,492
Livestock
2,923,757
1,784,763
Other income
736,081
827,371
11,371,701
13,520,626
2024
2023
£
£
Other revenue
Interest income
440
28
All turnover is derived in the United Kingdom.
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,500
Evershot Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
17
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management and administration
4
3
Farming
28
25
Total
32
28
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,795,777
1,730,540
Social security costs
105,889
96,012
Pension costs
38,941
38,347
1,940,607
1,864,899
6
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
336,837
321,741
(Loss)/profit on disposal of tangible fixed assets
(3,767)
6,036
Cost of stocks recognised as an expense
8,567,438
7,911,133
Operating lease charges
190,186
174,256
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
29
11
Other interest income
411
17
Total income
440
28
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
29
11
Evershot Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
18
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
268,440
223,719
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
251,323
Adjustments in respect of prior periods
(283,124)
(52,082)
Total current tax
(283,124)
199,241
Deferred tax
Origination and reversal of timing differences
(24,950)
37,607
Total tax (credit)/charge
(308,074)
236,848
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(1,251,573)
1,612,935
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(312,893)
306,458
Tax effect of expenses that are not deductible in determining taxable profit
3,124
2,586
Tax effect of income not taxable in determining taxable profit
(941)
Permanent capital allowances in excess of depreciation
25,853
(57,721)
Under/(over) provided in prior years
1,733
(52,082)
Deferred tax adjustments
(24,950)
37,607
Taxation (credit)/charge for the year
(308,074)
236,848
Evershot Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
19
10
Tangible fixed assets
Long leasehold property
Plant and machinery
Improvements to property
Total
£
£
£
£
Cost
At 1 April 2023
1,166,963
3,607,507
2,021,344
6,795,814
Additions
232,486
144,376
376,862
Disposals
(88,337)
(88,337)
Transfers
(80,607)
80,607
At 31 March 2024
1,166,963
3,671,049
2,246,327
7,084,339
Depreciation and impairment
At 1 April 2023
298,214
1,908,374
656,339
2,862,927
Depreciation charged in the year
12,966
225,984
97,887
336,837
Eliminated in respect of disposals
(58,220)
(58,220)
At 31 March 2024
311,180
2,076,138
754,226
3,141,544
Carrying amount
At 31 March 2024
855,783
1,594,911
1,492,101
3,942,795
At 31 March 2023
868,750
1,699,133
1,365,004
3,932,887
11
Biological assets
Livestock
£
At 1 April 2023
6,073,905
Increase due to purchases
250,369
Increase due to transfers in
891,390
Decrease due to sales
(2,332,058)
Decrease due to deaths
(276,559)
Fair value movement
246,430
At 31 March 2024
4,853,477
Shown as:
Fixed assets
4,565,153
Current assets
288,324
4,853,477
Evershot Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
20
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
685,571
1,063,278
Corporation tax recoverable
284,857
Other debtors
188,538
210,530
Prepayments and accrued income
395,555
373,760
1,554,521
1,647,568
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
743,111
1,019,535
Corporation tax
251,323
Other creditors
941,950
753,061
Accruals and deferred income
229,762
145,350
1,914,823
2,169,269
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
1,694,500
1,752,500
Other creditors
6,000,000
6,000,000
7,694,500
7,752,500
15
Loans and overdrafts
2024
2023
£
£
Bank loans
1,694,500
1,752,500
Payable after one year
1,694,500
1,752,500
Security on the bank loan has been provided by a director by way of a first priority third party legal mortgage over property owned personally by the director.
Evershot Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
21
16
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Deferred taxation
342,528
367,478
2024
Movements in the year:
£
Liability at 1 April 2023
367,478
Credit to profit or loss
(24,950)
Liability at 31 March 2024
342,528
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
38,941
38,347
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3,448,889
3,448,889
3,448,889
3,448,889
Evershot Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
22
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
207,292
120,275
Between two and five years
156,146
35,571
In over five years
13,232
363,438
169,078
20
Related party transactions
Transactions with related parties
During the year, the company paid rent of £65,113 (2023: £65,900) to an unincorporated entity for which The Hon Mrs Townshend is the sole proprietor. At 31 March 2024, the balance due to this entity in respect of trading balances was £18,480 (2023: £10,392).
During the year, the company received contracting fees of £132,574 (2023: £138,715) from an unincorporated partnership for which The Hon Mrs Townshend and J R Townshend are partners. At 31 March 2024, the balance due to this entity in respect of trading balances was £31,916 (2023: £93,991 due from partnership).
During the year, the company paid for services of £60,898 (2023: £53,592), rent of £32,000 (2023: £16,500) and management and admin fees of £174,211 (2023: £179,319) to companies for which The Hon Mrs Townshend and J R Townshend are directors. At 31 March 2024, the balance due to these entities in respect of trading balances was £914,865 (2023: £764,775). Balances were due from these companies of £12,721 (2023: £14,084) in respect of trading balances.
At 31 March 2024, the loan balance due to a company for which The Hon Mrs Townshend and J R Townshend are directors was £6,000,000 (2023: £6,000,000). Interest of £150,000 (2023:150,000) was paid in respect of related party loans.
During the year, the company paid rent of £93,325 (2023: £92,092) to an unincorporated trust for which The Hon Mrs Townshend and J R Townshend are Trustees. At 31 March 2024, the balance due to this entity in respect of trading balances was £23,568 (2023: £30,296).
21
Analysis of changes in net debt
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
12,678
67,588
80,266
Borrowings excluding overdrafts
(7,752,500)
58,000
(7,694,500)
(7,739,822)
125,588
(7,614,234)
Evershot Farms Limited
Notes to the financial statements (continued)
For the year ended 31 March 2024
23
22
Cash generated from operations
2024
2023
£
£
(Loss)/profit for the year after tax
(943,499)
1,376,087
Adjustments for:
Taxation (credited)/charged
(308,074)
236,848
Finance costs
268,440
223,719
Investment income
(440)
(28)
(Gain)/loss on disposal of tangible fixed assets
(3,767)
6,036
Depreciation and impairment of tangible fixed assets
336,837
321,741
Movements in working capital:
Decrease/(increase) in stocks
44,916
(114,483)
Decrease/(increase) in debtors
377,904
(579,817)
Decrease in creditors
(3,123)
(105,004)
Decrease/(increase) in biological assets
1,220,428
(631,374)
Cash generated from operations
989,622
733,725
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