Company registration number 01154092 (England and Wales)
STOCKELD FARMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
STOCKELD FARMS LIMITED
COMPANY INFORMATION
Director
Mr P G F Grant
Secretary
Mrs S Grant
Company number
01154092
Registered office
The Adventure Park Office
Stockeld Park
Harrogate Road
Wetherby
LS22 4AN
Auditor
BHP LLP
Rievaulx House
1 St Mary's Court
Blossom Street
York
North Yorkshire
YO24 1AH
STOCKELD FARMS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
STOCKELD FARMS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 1 -

The director presents the strategic report for the year ended 28 February 2024.

Review of the business

The financial year ended 28 February 2024 saw the continuing operation of the Indoor Play area and restaurant know as the Playhive. The Playhive is a significant investment designed to provide the Company with more secure trading opportunities. This also enabled the attraction to be open more throughout the year.

 

During the year ended 28 February 2023, the opening of the Playhive in July 2022 resulted in greatly increased depreciation charges. The full impact of these for 12 months is within the year ended 28 February 2024. There were also increased wage and maintenance costs during the year to service the Playhive.

 

In addition, the poor weather (and, at times, weather forecasts) from Summer 2023 onwards impacted the footfall, including a closure on Christmas Eve due to a storm. The timing of school holidays around Halloween and Christmas also had a detrimental effect, particularly when comparing year-on-year.

 

As a result of these factors, turnover decreased slightly to £6,890,534 compared to £7,107,427 for the year ended 28 February 2024 and profit before tax reduced to £187,865 compared to £1,273,701.

Principal risks and uncertainties

The management of the Company and the execution of the Company’s strategy are subject to a number of risks. The key business risks and uncertainties identified relate to:

 

 

The Director closely monitors risks and uncertainties, both in the context of cash management and profitability, now and in the future.

Key performance indicators

The key performance indicators used to determine the progress and performance of the Company are customer footfall, turnover, spend per head, operating profit and cash flow. All are monitored against budget and previous period’s trading.

 

Turnover

 

Turnover decreased by 3.1% compared to the previous year due to poor weather during the school holidays which impacted footfall.

 

Operating Profit

 

Operating profit fell by 80.1% compared to the previous year due to the reduction in turnover and increase in the national minimum wage increasing the cost base.

 

Cash Flow

 

There was a net decrease in Cash and Cash equivalents of £520,732. The Director made the strategic decision to repay some bank loans early, not fully drawdown the facility available for the Playhive investment and also invest in some other capital projects in order to utilise surplus cash reserves.

Future Outlook

Whilst the current economic climate and uncertainty remains challenging, the Director is confident that their strategy of continued investment to offer high quality, innovative attractions and events will enable the Company to continue to perform well.

STOCKELD FARMS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 2 -

On behalf of the board

Mr P G F Grant
Director
27 November 2024
STOCKELD FARMS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 3 -

The director presents his annual report and financial statements for the year ended 28 February 2024.

Principal activities
The principal activity of the company continued to be that of farming and the operation of the Christmas and Summer Adventures.
Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr P G F Grant
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
Mr P G F Grant
Director
27 November 2024
STOCKELD FARMS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 4 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

STOCKELD FARMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STOCKELD FARMS LIMITED
- 5 -
Opinion

We have audited the financial statements of Stockeld Farms Limited (the 'company') for the year ended 28 February 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, 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:

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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

STOCKELD FARMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STOCKELD FARMS LIMITED
- 6 -
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 director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

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.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.

We focussed on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and review legal expenses. There are inherent limitations in the audit procedures described 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.

 

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.

STOCKELD FARMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STOCKELD FARMS LIMITED
- 7 -

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 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.

Ann Brown
Senior Statutory Auditor
For and on behalf of BHP LLP
27 November 2024
Chartered Accountants
Statutory Auditor
Rievaulx House
1 St Mary's Court
Blossom Street
York
North Yorkshire
YO24 1AH
STOCKELD FARMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
6,890,534
7,107,427
Cost of sales
(3,535,307)
(3,062,215)
Gross profit
3,355,227
4,045,212
Administrative expenses
(3,099,124)
(2,655,225)
Other operating income
20,655
6,370
Operating profit
4
276,758
1,396,357
Interest receivable and similar income
7
-
0
214
Interest payable and similar expenses
8
(88,893)
(122,870)
Profit before taxation
187,865
1,273,701
Tax on profit
9
(111,027)
(191,222)
Profit for the financial year
76,838
1,082,479

The profit and loss account has been prepared on the basis that all operations are continuing operations.

STOCKELD FARMS LIMITED
BALANCE SHEET
AS AT 28 FEBRUARY 2024
28 February 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
5,501,716
5,541,339
Biological assets
11
785,028
735,581
6,286,744
6,276,920
Current assets
Stocks
12
488,228
484,713
Debtors
13
418,397
238,057
Cash at bank and in hand
2,281,339
2,802,071
3,187,964
3,524,841
Creditors: amounts falling due within one year
14
(1,296,547)
(1,486,205)
Net current assets
1,891,417
2,038,636
Total assets less current liabilities
8,178,161
8,315,556
Creditors: amounts falling due after more than one year
15
(2,309,033)
(2,537,279)
Provisions for liabilities
Deferred tax liability
17
563,497
549,484
(563,497)
(549,484)
Net assets
5,305,631
5,228,793
Capital and reserves
Called up share capital
19
75,000
75,000
Profit and loss reserves
5,230,631
5,153,793
Total equity
5,305,631
5,228,793
The financial statements were approved and signed by the director and authorised for issue on 27 November 2024
Mr P G F Grant
Director
Company Registration No. 01154092
STOCKELD FARMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 March 2022
75,000
4,071,314
4,146,314
Year ended 28 February 2023:
Profit and total comprehensive income
-
1,082,479
1,082,479
Balance at 28 February 2023
75,000
5,153,793
5,228,793
Year ended 28 February 2024:
Profit and total comprehensive income
-
76,838
76,838
Balance at 28 February 2024
75,000
5,230,631
5,305,631
STOCKELD FARMS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
985,821
1,648,329
Interest paid
(88,893)
(122,870)
Income taxes paid
(73,483)
(46,647)
Net cash inflow from operating activities
823,445
1,478,812
Investing activities
Purchase of tangible fixed assets
(866,459)
(1,540,277)
Proceeds from disposal of tangible fixed assets
1,707
1,159
Issue of new loans
(256,308)
-
0
Interest received
-
0
214
Net cash used in investing activities
(1,121,060)
(1,538,904)
Financing activities
Repayment of bank loans
(223,117)
(586,800)
Net cash used in financing activities
(223,117)
(586,800)
Net decrease in cash and cash equivalents
(520,732)
(646,892)
Cash and cash equivalents at beginning of year
2,802,071
3,448,963
Cash and cash equivalents at end of year
2,281,339
2,802,071
STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 12 -
1
Accounting policies
Company information

Stockeld Farms Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Adventure Park Office, Stockeld Park, Harrogate Road, Wetherby, LS22 4AN.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues 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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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:

Land and buildings Freehold
3.3%, 10% and 20% straight line
Plant & equipment
10% and 33.3% straight line
Office fixtures & equipment
10% and 33.3% straight line
Motor vehicles
20% and 25% straight line
STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 13 -

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.

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
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.7
Cash at bank and in hand

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.

STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
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.

1.9
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.

1.10
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.

STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.15

Biological asset

Biological assets are recognised only when three recognition criteria have been fulfilled:

•    the entity has control over the asset as a result of past events;

•    it is probable that future economic benefits associated with the asset will flow to the entity; and

•    the fair value or cost of the asset can be measured reliably.

 

The company measures biological assets at cost less accumulated depreciation and accumulated impairment losses.

 

In respect of agricultural produce harvested from a biological asset, this is measured at the point of harvest at either;

•    lower of cost and estimated selling price less costs to complete and sell; or

•    fair value less costs to sell with any gain or loss arising on initial recognition of agricultural produce at     fair value less costs to sell being included in profit or loss.

 

Due to the nature of the asset being Christmas trees, which grow until they are harvested, the value is deemed to be continually increasing across their life cycle. As a result of this, the director deems it appropriate to not depreciate these assets.

 

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Depreciation and Useful Economic Lives of Tangible Fixed Assets

The annual depreciation charge for tangible assets and their carrying value is determined by the estimated useful economic lives and residual values of the assets. The director assesses the useful economic lives and residual values on an annual basis and will amend where necessary to reflect current estimates. The carrying amount of tangible fixed assets is disclosed in note 10 the the financial statements.

STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 18 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Biological asset - Christmas Trees

At the balance sheet date, the carrying value of biological assets totalled £735,581 (2022: £682,130) and relates to the company's stock of planted Christmas trees. These trees are grown over several years prior to being harvested for sale.

 

Due to the size and scale of the operation, the director has deemed necessary to estimate the carrying value of these trees based on his knowledge and experience. The significant variable and source of uncertainty is deemed to be the number of trees which do not reach maturity, either by being cut down as waste or dying of natural causes.

 

The director has estimated this rate of attrition based on their knowledge and experience of the expected percentage of trees which will reach maturity and uses this to estimate the number of trees remaining from each annual planting cycle. All costs incurred are then attributed to the estimated number of trees remaining on a proportional basis.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Arable
258,576
522,885
Christmas trees
497,464
445,876
Adventure
6,126,216
6,125,267
Sundry income
8,278
13,399
6,890,534
7,107,427
2024
2023
£
£
Other revenue
Interest income
-
214

All turnover for both the current and comparative year arose in the UK.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
11,550
18,933
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
10,000
Depreciation of owned tangible fixed assets
898,482
637,479
Loss on disposal of tangible fixed assets
5,893
4,907
Operating lease charges
266,788
256,016
STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 19 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Permanent
35
32
Seasonal
79
70
Total
114
102

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,352,701
2,103,291
Social security costs
154,379
134,358
Pension costs
28,032
24,908
2,535,112
2,262,557

Included within the wages and salaries figures above are the agency staff costs of £141,086 (2023: £123,784). Total staff costs excluding agency staff was £2,394,026 (2023: £2,138,773).

6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
11,699
4,160

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
-
0
214
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
88,893
122,870
STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 20 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
97,014
82,210
Adjustments in respect of prior periods
-
0
(20,403)
Total current tax
97,014
61,807
Deferred tax
Origination and reversal of timing differences
14,013
129,415
Total tax charge
111,027
191,222

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
187,865
1,273,701
Expected tax charge based on the standard rate of corporation tax in the UK of 24.49% (2023: 19.00%)
46,008
242,003
Tax effect of expenses that are not deductible in determining taxable profit
-
0
63
Change in unrecognised deferred tax assets
-
0
(11,197)
Adjustments in respect of prior years
-
0
(20,403)
Permanent capital allowances in excess of depreciation
64,730
(52,991)
Deferred tax adjustments in respect of prior years
289
33,747
Taxation charge for the year
111,027
191,222
STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 21 -
10
Tangible fixed assets
Land and buildings Freehold
Plant & equipment
Office fixtures & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 March 2023
5,177,452
4,514,790
1,735
343,719
10,037,696
Additions
156,239
700,041
-
0
10,179
866,459
Disposals
(30,425)
(339,616)
-
0
(3,950)
(373,991)
Transfers
(3,156)
3,156
-
0
-
0
-
0
At 28 February 2024
5,300,110
4,878,371
1,735
349,948
10,530,164
Depreciation and impairment
At 1 March 2023
1,526,101
2,754,758
1,735
213,763
4,496,357
Depreciation charged in the year
274,529
577,128
-
0
46,825
898,482
Eliminated in respect of disposals
(29,195)
(335,550)
-
0
(1,646)
(366,391)
Transfers
(42)
42
-
0
-
0
-
0
At 28 February 2024
1,771,393
2,996,378
1,735
258,942
5,028,448
Carrying amount
At 28 February 2024
3,528,717
1,881,993
-
0
91,006
5,501,716
At 28 February 2023
3,651,351
1,760,032
-
0
129,956
5,541,339
11
Biological assets
Christmas trees
£
Cost
At 1 March 2023
735,581
Additions - costs incurred
207,756
Harvest and transfer to stock
(158,309)
At 28 February 2024
785,028
Depreciation and impairment
At 1 March 2023 and 28 February 2024
-
0
Carrying amount
At 28 February 2024
785,028
At 28 February 2023
735,581
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
488,228
484,713
STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 22 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
77,803
106,933
Other debtors
256,308
26,250
Prepayments and accrued income
84,286
104,874
418,397
238,057
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
235,026
229,897
Trade creditors
250,240
350,253
Corporation tax
85,338
61,807
Other taxation and social security
59,349
36,214
Other creditors
7,231
114,271
Accruals and deferred income
659,363
693,763
1,296,547
1,486,205
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
2,309,033
2,537,279

 

Amounts included above which fall due after five years are as follows:
Payable by instalments
1,759,469
1,911,753
16
Loans and overdrafts
2024
2023
£
£
Bank loans
2,544,059
2,767,176
Payable within one year
235,026
229,897
Payable after one year
2,309,033
2,537,279

The long-term loans are secured by fixed and floating charges on all the assets and undertakings of Stockeld Farms Limited.

STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
16
Loans and overdrafts
(Continued)
- 23 -

Bank borrowing of £2,544,059 (2023: £2,767,176) comprise three separate bank loans, all denominated in Sterling. Details of the bank loans are provided below:

 

Loan 1 - carrying value of £2,253,017

 

The nominal interest rate is 2.25% above base rate. The loan is repayable by instalments with the final instalment due on 11 March 2036.

 

Loan 2 - carrying value of £186,081

 

The nominal interest rate is 2.25% above base rate. The loan is repayable by instalments with the final instalment due on 23 April 2031.

 

Loan 3 - carrying value of £104,961

 

The nominal interest rate is 5%. The loan is repayable by instalments with the final instalment due on 20 August 2025.

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
571,672
569,443
Short term timing differences
(8,175)
(19,959)
563,497
549,484
2024
Movements in the year:
£
Liability at 1 March 2023
549,484
Charge to profit or loss
14,013
Liability at 28 February 2024
563,497

£177,896 of the deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances and unpaid pension contributions that are expected to mature within the same period.

STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 24 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
28,032
24,908

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. At the year end amounts owed to the scheme totalled £3,988 (2022: £3,247)

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
75,000
75,000
75,000
75,000
20
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
12,919
15,583
Between two and five years
11,087
12,919
In over five years
-
0
11,087
24,006
39,589
21
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
69,974
-
22
Related party transactions

At the balance sheet date Mr P G F Grant owed the company £256,308 (2023: the company owed Mr P G F Grant £76,385). This amount is repayable on demand.

 

Rent paid to Mr P G F Grant in the year was £250,000 (2023: £250,000).

STOCKELD FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2024
- 25 -
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
76,838
1,082,479
Adjustments for:
Taxation charged
111,027
191,222
Finance costs
88,893
122,870
Investment income
-
0
(214)
Loss on disposal of tangible fixed assets
5,893
4,907
Depreciation and impairment of tangible fixed assets
898,482
637,479
Movements in working capital:
Increase in stocks
(52,962)
(268,442)
Decrease in debtors
75,968
68,965
Decrease in creditors
(218,318)
(190,937)
Cash generated from operations
985,821
1,648,329
24
Analysis of changes in net funds/(debt)
1 March 2023
Cash flows
28 February 2024
£
£
£
Cash at bank and in hand
2,802,071
(520,732)
2,281,339
Borrowings excluding overdrafts
(2,767,176)
223,117
(2,544,059)
34,895
(297,615)
(262,720)
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