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REGISTERED NUMBER: 00821836 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 29 FEBRUARY 2024

FOR

P G RIX (FARMS) LIMITED

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


P G RIX (FARMS) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 29 FEBRUARY 2024







DIRECTORS: Mr J G Rix
Mr W H Rix
Mrs M M Rix
Mrs J M Rix
Mr G P Rix
Mr S J Rix





SECRETARY: Mrs M M Rix





REGISTERED OFFICE: Lodge Farm
Boxted Road
Great Horkesley
Colchester
Essex
CO6 4AP





REGISTERED NUMBER: 00821836 (England and Wales)





AUDITORS: MHA
910 The Crescent
Colchester Business Park
Colchester
Essex
CO4 9YQ

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024

The directors present their strategic report for the year ended 29 February 2024.

REVIEW OF BUSINESS
The Directors consider that the business continues to produce robust results in its 60th year. Turnover increased by £2.18m, and this also translated into an increase in gross profit margin from 65% to 69%. Net profit before tax was 20.61% of turnover (2023 - 16.54%). Given the challenging market conditions arising from the uncertainties surrounding the global economic outlook and inflationary price rises, the Directors are satisfied with the overall performance of the Company.

The Company continued its programme of significant investment in equipment, with tangible fixed asset additions of £2,601,554 in the year. Cash funds of £6,408,433 provide a strong and sufficient resource for ongoing trading purposes and to fund anticipated future capital expenditure.

The Balance Sheet of the Company continues to be robust, with retained earnings having increased in the year by 9.21% to £16,385,138.

PRINCIPAL RISKS AND UNCERTAINTIES
The directors consider the company to be well placed to face the risks and uncertainties associated with volatile crop prices, changing customer demands, and possible adverse weather conditions.

ON BEHALF OF THE BOARD:





Mrs M M Rix - Secretary


11 November 2024

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 29 FEBRUARY 2024

The directors present their report with the financial statements of the company for the year ended 29 February 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of farming.

There has been no significant change in the company's activities during the financial year.

DIVIDENDS
Interim dividends per share were paid as follows:
Ordinary A Shares £1 shares 333.33 - 29 February 2024
Ordinary B Shares £1 shares 333.33 - 29 February 2024


The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 29 February 2024 will be £ 1,000,000 .

RESEARCH AND DEVELOPMENT
During the year the company undertook research and development activities around sustainable methods to enhance onion crop quality and yield, and improving soil health to boost potato crop performance.

FUTURE DEVELOPMENTS
When considering future developments, the long term sustainability of the farm is of primary importance to the directors. The company intends to continue to operate as an arable farm in a commercially viable manner that balances the needs of all key stakeholders, whilst aiming to maintain and enhance the environment through good agricultural practice and integrated farming techniques.

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

Mr J G Rix
Mr W H Rix
Mrs M M Rix
Mrs J M Rix
Mr G P Rix
Mr S J Rix

FINANCIAL INSTRUMENTS
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from operating activities which are conducted almost entirely in sterling.


P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 29 FEBRUARY 2024

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.

AUDITORS
A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

ON BEHALF OF THE BOARD:



Mrs M M Rix - Secretary


11 November 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
P G RIX (FARMS) LIMITED

Opinion
We have audited the financial statements of P G Rix (Farms) Limited (the 'company') for the year ended 29 February 2024 which comprise the Income Statement, 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 29 February 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.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
P G RIX (FARMS) LIMITED


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:

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management around actual and potential litigation and claims;
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluation the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
- Reviewing minutes of meetings of those charged with governance; and
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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
P G RIX (FARMS) 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.




Ryan Swann BA FCA (Senior Statutory Auditor)
for and on behalf of MHA
Colchester

11 November 2024


MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership
in England and Wales (registered number OC312313)

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

INCOME STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2024

2024 2023
Notes £    £   

TURNOVER 15,722,623 13,538,964

Cost of sales 4,827,715 4,692,236
GROSS PROFIT 10,894,908 8,846,728

Administrative expenses 7,866,769 6,708,535
3,028,139 2,138,193

Other operating income 478,293 470,093
OPERATING PROFIT 6 3,506,432 2,608,286

Interest receivable and similar income 196,211 29,552
3,702,643 2,637,838

Interest payable and similar expenses 7 462,848 398,070
PROFIT BEFORE TAXATION 3,239,795 2,239,768

Tax on profit 8 858,238 449,803
PROFIT FOR THE FINANCIAL YEAR 2,381,557 1,789,965

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 2,381,557 1,789,965


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,381,557

1,789,965

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

BALANCE SHEET
29 FEBRUARY 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 24,434 31,460
Tangible assets 11 11,522,993 11,037,919
Investments 12 55,353 55,353
11,602,780 11,124,732

CURRENT ASSETS
Stocks 13 4,155,003 3,752,820
Debtors 14 4,094,263 4,133,597
Cash at bank 6,408,433 6,042,131
14,657,699 13,928,548
CREDITORS
Amounts falling due within one year 15 8,738,687 9,241,715
NET CURRENT ASSETS 5,919,012 4,686,833
TOTAL ASSETS LESS CURRENT
LIABILITIES

17,521,792

15,811,565

CREDITORS
Amounts falling due after more than one year 16 (30,609 ) -

PROVISIONS FOR LIABILITIES 18 (1,098,045 ) (799,984 )
NET ASSETS 16,393,138 15,011,581

CAPITAL AND RESERVES
Called up share capital 19 3,000 3,000
Share premium 20 5,000 5,000
Retained earnings 20 16,385,138 15,003,581
SHAREHOLDERS' FUNDS 16,393,138 15,011,581

The financial statements were approved by the Board of Directors and authorised for issue on 11 November 2024 and were signed on its behalf by:




Mr J G Rix - Director



Mr W H Rix - Director


P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1 March 2022 3,000 14,213,616 5,000 14,221,616

Changes in equity
Dividends - (1,000,000 ) - (1,000,000 )
Total comprehensive income - 1,789,965 - 1,789,965
Balance at 28 February 2023 3,000 15,003,581 5,000 15,011,581

Changes in equity
Dividends - (1,000,000 ) - (1,000,000 )
Total comprehensive income - 2,381,557 - 2,381,557
Balance at 29 February 2024 3,000 16,385,138 5,000 16,393,138

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,690,386 4,205,976
Interest paid (460,890 ) (398,070 )
Interest element of hire purchase payments
paid

(1,958

)

-
Tax paid (191,662 ) (653,357 )
Net cash from operating activities 3,035,876 3,154,549

Cash flows from investing activities
Purchase of tangible fixed assets (2,601,554 ) (2,487,551 )
Sale of tangible fixed assets 701,501 516,081
Interest received 196,211 29,552
Net cash from investing activities (1,703,842 ) (1,941,918 )

Cash flows from financing activities
Capital repayments in year 34,268 -
Equity dividends paid (1,000,000 ) (1,000,000 )
Net cash from financing activities (965,732 ) (1,000,000 )

Increase in cash and cash equivalents 366,302 212,631
Cash and cash equivalents at beginning of
year

2

6,042,131

5,829,500

Cash and cash equivalents at end of year 2 6,408,433 6,042,131

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2024

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

2024 2023
£    £   
Profit before taxation 3,239,795 2,239,768
Depreciation charges 1,866,106 1,828,119
Profit on disposal of fixed assets (444,101 ) (283,998 )
Finance costs 462,848 398,070
Finance income (196,211 ) (29,552 )
4,928,437 4,152,407
Increase in stocks (402,183 ) (551,104 )
Decrease/(increase) in trade and other debtors 54 (572,382 )
(Decrease)/increase in trade and other creditors (835,922 ) 1,177,055
Cash generated from operations 3,690,386 4,205,976

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 29 February 2024
29.2.24 1.3.23
£    £   
Cash and cash equivalents 6,408,433 6,042,131
Year ended 28 February 2023
28.2.23 1.3.22
£    £   
Cash and cash equivalents 6,042,131 5,829,500


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.3.23 Cash flow At 29.2.24
£    £    £   
Net cash
Cash at bank 6,042,131 366,302 6,408,433
6,042,131 366,302 6,408,433
Debt
Finance leases - (34,268 ) (34,268 )
- (34,268 ) (34,268 )
Total 6,042,131 332,034 6,374,165

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024

1. COMPLIANCE WITH ACCOUNTING STANDARDS

The Accounts have been prepared in accordance with applicable accounting standards. There were no material departures from those standards.

2. STATUTORY INFORMATION

P G Rix (Farms) 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.

3. 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 principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.

Critical accounting judgements and key sources of estimation uncertainty
In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgement, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity in making such judgement, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revisions affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

The directors do not believe that there have been judgements made in the process of applying the below accounting policies that have had a significant effect on the amounts recognised in the financial statements. Furthermore, the directors consider that there are no areas of estimation uncertainty at the balance sheet date that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover from the sale of 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.

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.

Camgrain storage is being amortised evenly over its estimated useful life of ten years.

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

3. ACCOUNTING POLICIES - continued

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

In line with the applicable accounting standards freehold land is not depreciated. Depreciation on all other assets is calculated so as to write off the cost over their estimated useful lives:

Freehold property - 2% per annum straight line

Short leasehold - 15% on the reducing balances

Plant and machinery - 15-25% on the reducing balances.

Stocks
The farm valuation is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase and costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments
The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price. Such assets are subsequently carried at amortised cost using the effective interest method.

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.The Company's investments in equity instruments are not publicly traded, and therefore such assets are subsequently measured at cost less impairment.

Basic financial liabilities, including trade and other payables and loans from Directors, are initially recognised at transaction price. Debt instruments are subsequently carried at amortised cost, using the effective interest method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

3. ACCOUNTING POLICIES - continued
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 were expected to apply to the reversal of the timing difference at that date.

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.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful economic lives, or the lease term, whichever is the shorter.

The interest element of these obligations is charges to profit or loss over the relevant period. The capital element of the future payment is treated as a liability.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Government grants
Amounts receivable by the company during the accounting period are credited to the profit and loss account.

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 1,935,827 1,650,157
Social security costs 203,205 195,279
Other pension costs 291,630 186,755
2,430,662 2,032,191

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

Management 6 6
Farm employees 35 31
41 37

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

5. DIRECTORS' EMOLUMENTS AND KEY MANAGEMENT REMUNERATION

During the year directors' emoluments including benefits in kind amounted to £414,897 (2023: £392,273) and directors' pension contributions to money purchase schemes amounted to £20,000 (2023: £8,000).

There were two directors to whom retirement benefits were accruing from money purchase schemes (2023: 2).

Emoluments of the highest paid director amounted to £99,329 (2023: £99,676).

During the year none of the directors exercised and share options, or received any shares in respect of qualifying services under a long term incentive scheme.

6. OPERATING PROFIT

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

2024 2023
£    £   
Other operating leases 932,904 956,463
Depreciation - owned assets 1,859,080 1,802,918
Profit on disposal of fixed assets (444,101 ) (283,998 )
Camgrain storage amortisation 7,026 25,201
Auditors remuneration 13,364 11,500

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Directors' loan interest 460,890 398,070
Hire purchase 1,958 -
462,848 398,070

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 560,177 223,868

Deferred tax 298,061 225,935
Tax on profit 858,238 449,803

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 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 3,239,795 2,239,768
Profit multiplied by the standard rate of corporation tax in the UK of
24.492% (2023 - 19%)

793,491

425,556

Effects of:
Expenses not deductible for tax purposes 7,454 3,434
Capital allowances in excess of depreciation (228,815 ) (183,926 )
Research and development tax credits (11,953 ) (21,196 )
Movement in deferred tax 298,061 225,935
Total tax charge 858,238 449,803

In accordance with UK Corporation Tax rates and laws that were enacted by the balance sheet date, the main rate of Corporation Tax paid by the Company changed from 19% to 25% from 1st April 2023. Current and future tax consequences have been calculated in line with this change.

9. DIVIDENDS
2024 2023
£    £   
Ordinary A Shares shares of £1 each
Interim 500,000 500,000
Ordinary B Shares shares of £1 each
Interim 500,000 500,000
1,000,000 1,000,000

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

10. INTANGIBLE FIXED ASSETS
Camgrain
storage
£   
COST
At 1 March 2023
and 29 February 2024 541,385
AMORTISATION
At 1 March 2023 509,925
Amortisation for year 7,026
At 29 February 2024 516,951
NET BOOK VALUE
At 29 February 2024 24,434
At 28 February 2023 31,460

11. TANGIBLE FIXED ASSETS
Freehold Buildings
land and Short in Plant and
property leasehold Progress machinery Totals
£    £    £    £    £   
COST
At 1 March 2023 4,765,403 8,901,809 - 17,906,647 31,573,859
Additions 172,956 30,289 97,223 2,301,086 2,601,554
Disposals - - - (1,190,457 ) (1,190,457 )
At 29 February 2024 4,938,359 8,932,098 97,223 19,017,276 32,984,956
DEPRECIATION
At 1 March 2023 118,130 7,117,850 - 13,299,960 20,535,940
Charge for year 28,163 273,002 - 1,557,915 1,859,080
Eliminated on disposal - - - (933,057 ) (933,057 )
At 29 February 2024 146,293 7,390,852 - 13,924,818 21,461,963
NET BOOK VALUE
At 29 February 2024 4,792,066 1,541,246 97,223 5,092,458 11,522,993
At 28 February 2023 4,647,273 1,783,959 - 4,606,687 11,037,919

Included in the cost of land and property is freehold land of £3,530,226 (2023 - £3,530,226) which is not depreciated. Assets under construction are also not depreciated until brought into use, please refer to Note 21 for further details of the Capital Commitments entered into in relation to these assets.

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

12. FIXED ASSET INVESTMENTS

2024 2023
£    £   
Other investments not loans 20,020 20,020
Other loans 35,333 35,333
55,353 55,353

Additional information is as follows:
Unlisted
investments
£   
COST
At 1 March 2023
and 29 February 2024 20,020
NET BOOK VALUE
At 29 February 2024 20,020
At 28 February 2023 20,020
Special
loan
£   
At 1 March 2023
and 29 February 2024 35,333

Both of the above relate to an investment in a Registered Society under the Co-operative and Community Benefit Societies Act 2014.

13. STOCKS
2024 2023
£    £   
Stock (farm valuation) 4,155,003 3,752,820

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade and other debtors 3,547,637 3,943,614
VAT debtor 360,011 -
Corporation tax - 39,280
Prepayments 186,615 150,703
4,094,263 4,133,597

Included within trade and other debtors are balances related to accrued income of £1,913,920 (2023:£2,646,684)

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 17) 3,659 -
Trade creditors 1,817,333 1,333,031
Corporation tax 329,235 -
Social security and other taxes 138,999 118,870
Other creditors: directors' current accounts 6,061,971 7,618,508
Accruals and deferred income 387,490 171,306
8,738,687 9,241,715

The company's overdraft facility is secured by a corporate mortgage dated 15th November 1996 over commercial freehold farm and land at Wissington Grove, Nayland, in favour of Lloyds Bank plc.

Note 22 gives details of personal guarantees from two directors.

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Hire purchase contracts (see note 17) 30,609 -

17. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Net obligations repayable:
Within one year 3,659 -
Between one and five years 30,609 -
34,268 -

18. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 1,098,045 799,984

Deferred
tax
£   
Balance at 1 March 2023 799,984
Provided during year 298,061
Balance at 29 February 2024 1,098,045

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
1,500 Ordinary A Shares £1 1,500 1,500
1,500 Ordinary B Shares £1 1,500 1,500
3,000 3,000

The holders of the majority of the issued "A" Ordinary shares can appoint up to three directors and the holders of the majority of the issued "B" Ordinary Shares can appoint another three directors. In all other respects shares rank pari passu.

The directors may pay at intervals any dividend payable at a fixed rate if it appears to them that the profits available for distribution justify the payment.

20. RESERVES
Retained Share
earnings premium Totals
£    £    £   

At 1 March 2023 15,003,581 5,000 15,008,581
Profit for the year 2,381,557 2,381,557
Dividends (1,000,000 ) (1,000,000 )
At 29 February 2024 16,385,138 5,000 16,390,138

21. CAPITAL COMMITMENTS

At the balance sheet date the company had total capital commitments of £3.6m, and had already paid deposits in respect of those assets of £97.2k to leave a balance of £3.5m.

22. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

a) J G Rix and W H Rix, directors of the company, rent land to the company under normal farm business tenancy terms. Rents are credited to the directors current accounts as they fall due.

b) J G Rix and W H Rix, directors of the company, have entered into a guarantee with Lloyds Bank plc to support the banking facilities available to the limited company. The facility is limited to £750,000 and the guarantee is supported by a charge over land rented to the limited company.

c) Loan interest is paid on the directors current accounts, calculated under normal commercial terms, based on the current account balances after adjusting for material movements during the year.

d) G P Rix, J G Rix and Mrs J M Rix, directors of the company, rent land and buildings from the company under normal farm business tenancy terms. Rents are debited to the directors current accounts as they become payable.

P G RIX (FARMS) LIMITED (REGISTERED NUMBER: 00821836)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 29 FEBRUARY 2024

23. RELATED PARTY DISCLOSURES

The company entered into transactions during the year with a Group under common control. The net value of transactions that took place were as follows :

- Sold produce £7,937,168 (2023: £5,913,283)
- Rented land and charged for goods and services £1,210,076 (2023: £1,113,000)
- No services were purchased (2023: £2,859)
These transactions took place on a normal commercial basis at open market value, and the balance outstanding at year end was £1,328,428 (2023: £1,652,639).

The company also rented land and charged for services at open market value to a partnership under the control of two of the directors. Total charges during the year were £53,992 (2023: £52,184), of which £ £53,992 (2023: £48,566) was outstanding at the balance sheet date.

The company rented land at open market value from a pension scheme in which the directors of the company are beneficiaries. Total charges during the year were £108,494 (2023: £108,494), of which £54,247 (2023: £54,247) was outstanding at the balance sheet date.

24. ULTIMATE CONTROLLING PARTY

The company is under the ultimate control of J G Rix, W H Rix, G P Rix and S J Rix.