Cleanacres Machinery Limited 01384399 false 2023-04-01 2024-03-31 2024-03-31 The principal activity of the company is the sale of crop spraying equipment Digita Accounts Production Advanced 6.30.9574.0 true true 01384399 2023-04-01 2024-03-31 01384399 2024-03-31 01384399 core:FurtherSpecificItem1DeferredTaxComponentTotalForDeferredTax 2024-03-31 01384399 core:FurtherSpecificItem2DeferredTaxComponentTotalForDeferredTax 2024-03-31 01384399 core:CurrentFinancialInstruments 2024-03-31 01384399 core:CurrentFinancialInstruments core:WithinOneYear 2024-03-31 01384399 core:Non-currentFinancialInstruments core:AfterOneYear 2024-03-31 01384399 core:MoreThanFiveYears 1 2024-03-31 01384399 core:FurnitureFittingsToolsEquipment 2024-03-31 01384399 core:MotorVehicles 2024-03-31 01384399 core:OtherPropertyPlantEquipment 2024-03-31 01384399 bus:SmallEntities 2023-04-01 2024-03-31 01384399 bus:AuditExemptWithAccountantsReport 2023-04-01 2024-03-31 01384399 bus:FullAccounts 2023-04-01 2024-03-31 01384399 bus:SmallCompaniesRegimeForAccounts 2023-04-01 2024-03-31 01384399 bus:RegisteredOffice 2023-04-01 2024-03-31 01384399 bus:Director1 2023-04-01 2024-03-31 01384399 bus:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 01384399 core:FurnitureFittings 2023-04-01 2024-03-31 01384399 core:FurnitureFittingsToolsEquipment 2023-04-01 2024-03-31 01384399 core:MotorVehicles 2023-04-01 2024-03-31 01384399 core:OtherPropertyPlantEquipment 2023-04-01 2024-03-31 01384399 core:PlantMachinery 2023-04-01 2024-03-31 01384399 countries:EnglandWales 2023-04-01 2024-03-31 01384399 2023-03-31 01384399 core:FurnitureFittingsToolsEquipment 2023-03-31 01384399 core:MotorVehicles 2023-03-31 01384399 core:OtherPropertyPlantEquipment 2023-03-31 01384399 2022-04-01 2023-03-31 01384399 2023-03-31 01384399 core:FurtherSpecificItem1DeferredTaxComponentTotalForDeferredTax 2023-03-31 01384399 core:FurtherSpecificItem2DeferredTaxComponentTotalForDeferredTax 2023-03-31 01384399 core:CurrentFinancialInstruments 2023-03-31 01384399 core:CurrentFinancialInstruments core:WithinOneYear 2023-03-31 01384399 core:Non-currentFinancialInstruments core:AfterOneYear 2023-03-31 01384399 core:MoreThanFiveYears 1 2023-03-31 01384399 core:FurnitureFittingsToolsEquipment 2023-03-31 01384399 core:MotorVehicles 2023-03-31 01384399 core:OtherPropertyPlantEquipment 2023-03-31 iso4217:GBP xbrli:pure

Registration number: 01384399

Prepared for the registrar

Cleanacres Machinery Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2024

 

Cleanacres Machinery Limited

(Registration number: 01384399)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

138,432

104,130

Current assets

 

Stocks

5

1,124,387

970,057

Debtors

6

790,850

698,217

Cash at bank and in hand

 

2,424

58,863

 

1,917,661

1,727,137

Creditors: Amounts falling due within one year

7

(724,599)

(467,987)

Net current assets

 

1,193,062

1,259,150

Total assets less current liabilities

 

1,331,494

1,363,280

Creditors: Amounts falling due after more than one year

7

(387,799)

(423,589)

Net assets

 

943,695

939,691

Capital and reserves

 

Called up share capital

10,000

10,000

Profit and loss account

933,695

929,691

Shareholders' funds

 

943,695

939,691

For the financial year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared in accordance with the provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and in accordance with FRS 102 Section 1A Small Entities.

Approved and authorised by the Board on 18 November 2024 and signed on its behalf by:
 


Mr J L Weston
Director

 

Cleanacres Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Hartley Farms
Hartley Lane
Leckhampton Hill
Cheltenham
Gloucestershire
GL53 9QN

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when: The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

 

Cleanacres Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

20% of written down value

Fixtures, fittings and equipment

20% of written down value

Motor vehicles

20% of written down value

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Cleanacres Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Cleanacres Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate. For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date. Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 3 (2023 - 3).

 

Cleanacres Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

 

4

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other property, plant and equipment
 £

Total
£

Cost

At 1 April 2023

36,131

69,385

200,028

305,544

Additions

-

70,000

-

70,000

Disposals

-

(23,000)

-

(23,000)

At 31 March 2024

36,131

116,385

200,028

352,544

Depreciation

At 1 April 2023

32,547

23,423

145,444

201,414

Charge for the year

717

13,859

10,917

25,493

Eliminated on disposal

-

(12,795)

-

(12,795)

At 31 March 2024

33,264

24,487

156,361

214,112

Carrying amount

At 31 March 2024

2,867

91,898

43,667

138,432

At 31 March 2023

3,584

45,962

54,584

104,130



Leased assets
Included with the net book value of tangible assets is £35,000 (2023: £nil) in respect of assets held under hire purchase contracts. Depreciation for the year on these assets was £3,500 (2023: £4,365).

 

5

Stocks

2024
 £

2023
 £

Inventories

1,124,387

970,057

 

6

Debtors

Note

2024
 £

2023
 £

Trade debtors

 

444,199

143,373

Amounts owed by related parties

9

298,898

404,140

Other debtors

 

43,498

143,299

Prepayments

 

4,255

7,405

 

790,850

698,217

 

Cleanacres Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

 

7

Creditors

2024
 £

2023
 £

Due within one year

Loans and borrowings

224,393

189,238

Trade creditors

373,544

145,311

Outstanding defined contribution pension costs

66

62

Other creditors

39,076

44,169

Accrued expenses

5,812

5,444

Corporation tax liability

54,159

66,549

Deferred tax liability

27,549

17,214

724,599

467,987


 

2024
£

2023
£

Current loans and borrowings

Bank borrowings

54,363

79,728

Bank overdrafts

48,953

68,754

HP and finance lease liabilities

7,696

-

Other borrowings

113,381

40,756

224,393

189,238


 

The bank loan and overdraft are secured by a cross guarantee and debenture with Barclays Bank PLC over the trade and assets of the company and its parent company Well Hill Holdings Limited including its freehold land and buildings.

2024
£

2023
£

Due after one year

Loans and borrowings

387,799

423,589

2024
£

2023
£

After more than five years by instalments

146,138

197,242

-

-

 

Cleanacres Machinery Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2024

 

8

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Fixed asset timing differences

27,566

Short term timing differences

(17)

27,549

2023

Liability
£

Fixed asset timing differences

17,230

Short term timing differences

(16)

17,214

 

9

Related party transactions


Transactions with directors
At the balance sheet date the amount due to the directors of the company was £1,645 (2023: £40,756). The loan is interest free and repayable on demand.

Well Hill Kitchens Limited
(a company controlled by J Weston)
At the balance sheet date, the amount due to Well Hill Kitchens Limited was £nil (2023: £10,242). The outstanding amount is interest free and repayable on demand.

Well Hill Holdings Limited
Parent company
During the year an ordinary dividend of £175,000 (2023: £87,000) was paid to Well Hill Holdings Limited. At the balance sheet date, the amount due from Well Hill Holdings Limited was £298,898 (2023: £393,898). The outstanding amount is interest free and repayable on demand.

 

 

10

Parent and ultimate parent undertaking

The company's immediate parent is Well Hill Holdings Limited, incorporated in England & Wales.

 The ultimate controlling party is J Weston.