YSTUM COLWYN FARMS LIMITED
Company registration number 05662695 (England and Wales)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2023
YSTUM COLWYN FARMS LIMITED
COMPANY INFORMATION
Directors
Miss M E Gittins
Mr J W Gittins
Secretary
Miss M E Gittins
Company number
05662695
Registered office
Ystum Colwyn
Meifod
Powys
United Kingdom
SY22 6XT
Auditor
Dyke Yaxley Limited
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
YSTUM COLWYN FARMS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
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 - 23
YSTUM COLWYN FARMS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 1 -
The directors present the strategic report for the period ended 28 December 2023.
Review of the business
Ystum Colwyn Farms Limited trades from their sole site in Wales. The primary focus of the business is that of sheep sales throughout the country to abattoirs and into the European Market using dedicated dealers in those markets.
In 2018 the business diversified into poultry farming to provide an alternative income to the sheep trade, which was at the time uncertain due to market prices and the post Brexit vote.
Throughout 2021 and 2022, the company invested in green energy initiatives that complimented the main trade of the business. This included an anaerobic digestor and biomass boilers. These both provide another stream of income by the means of selling the energy produced, and lowers the costs of heating the poultry sheds thus mitigating the volatility in light and heat costs. This financial year shows that the company is reaping the benefits of this investment, through a large increase in green energy income, and much lower light and heat costs.
Principal risks and uncertainties
The principal risk to the business is the volatility of sheep market prices as 76.9% of turnover in the year was derived from sheep sales (78.7% in 2022). This risk can be mitigated as Ystum Colwyn Farms Limited have the ability to scale back their sheep trading operation if necessary. The business has further mitigated this risk through diversification by the means of investment in green energy initiatives and the poultry operation.
Financial risk largely relates to potential bad debts. In order to mitigate this cash reserves are held in the bank account to cover day to day trading.
Infectious disease control in both sheep and poultry is a risk to the trade of the company. This risk is mitigated through careful disease protocols on farm and the use of insurance premiums to cover any potential disruption or loss of trade.
In addition the new government has highlighted their commitment to green energy to ensure the UK energy market is more resilient to any global factors in the future. The company is therefore committed to investing in any suitable projects announced that would not only compliment the business but also reduce the carbon footprint of the trade.
Other performance indicators
The company uses turnover and gross profit margin as two key performance indicators.
Turnover decreased by 4.2% from last year, down from £26,075,230 in 2022 to £24,969,370 in 2023. This is largely down to sheep sales decreasing by 6.4% from 2022 to 2023.
Gross profit margin decreased from 8.5% in 2022 to 7.2% in 2023.
Although these KPIs show a decrease in gross profitability, the diversification through the sale of green energy has improved overall profitability as seen by the increase in the profit before tax margin which increased from 5.8% in 2022 to 8.0% in 2023. Green energy income has increased from £729,166 in 2022 to £1,866,595 in 2023, which represents a rise of 156%. The investment in an additional digestor engine in 2022 together with the companies research into how best to operate the digester has resulted in the increase in income from the sale of energy and heat.
Miss M E Gittins
Director
23 December 2024
YSTUM COLWYN FARMS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 2 -
The directors present their annual report and financial statements for the period ended 28 December 2023.
Principal activities
The principal activity of the company continued to be that of sheep dealing and poultry rearing.
Results and dividends
The results for the period are set out on page 7.
Ordinary dividends were paid amounting to £166,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Miss M E Gittins
Mr J W Gittins
Auditor
Dyke Yaxley Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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
Miss M E Gittins
Director
23 December 2024
YSTUM COLWYN FARMS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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.
YSTUM COLWYN FARMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF YSTUM COLWYN FARMS LIMITED
- 4 -
Opinion
We have audited the financial statements of Ystum Colwyn Farms Limited (the 'company') for the period ended 28 December 2023 which comprise the profit and loss account, 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:
give a true and fair view of the state of the company's affairs as at 28 December 2023 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
YSTUM COLWYN FARMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF YSTUM COLWYN FARMS LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, and instances of non-compliance with laws and regulations
We design procedures in line with our responsibilities, outlined above, to detect material misstatement 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 focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation, Animal Welfare Act 2006, Nitrate Vulnerable Zones (NVZ Rules) and health and safety regulations (Health and Safety at Work etc Act 1974, the Management of Health and Safety at Work Regulations 1999, and the Provision and Use of Work Equipment Regulations 1998). Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, analysis of legal costs incurred during the year and inspection of certificates of conformity.
YSTUM COLWYN FARMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF YSTUM COLWYN FARMS LIMITED
- 6 -
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
We did not identify any key audit matters relating to irregularities, including fraud.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.
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.
Mark Griffiths BA FCA
Senior Statutory Auditor
For and on behalf of Dyke Yaxley Limited
27 December 2024
Chartered Accountants
Statutory Auditor
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
YSTUM COLWYN FARMS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 7 -
Period
Year
ended
ended
28 December
29 December
2023
2022
as restated
Notes
£
£
Turnover
3
24,969,370
26,075,230
Cost of sales
(23,174,343)
(23,858,718)
Gross profit
1,795,027
2,216,512
Administrative expenses
(1,490,504)
(1,332,573)
Other operating income
1,892,776
742,132
Operating profit
4
2,197,299
1,626,071
Interest receivable and similar income
6
15,274
Interest payable and similar expenses
7
(192,070)
(120,835)
Profit before taxation
2,005,229
1,520,510
Tax on profit
8
(625,850)
(484,888)
Profit for the financial period
1,379,379
1,035,622
The profit and loss account has been prepared on the basis that all operations are continuing operations.
YSTUM COLWYN FARMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 8 -
Period
Year
ended
ended
28 December
29 December
2023
2022
as restated
£
£
Profit for the period
1,379,379
1,035,622
Other comprehensive income
-
-
Total comprehensive income for the period
1,379,379
1,035,622
YSTUM COLWYN FARMS LIMITED
BALANCE SHEET
AS AT
28 DECEMBER 2023
28 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
10,154,780
7,852,465
Biological assets
11
680,184
536,859
10,834,964
8,389,324
Current assets
Stocks
12
93,873
102,517
Debtors
13
1,537,103
3,235,675
Cash at bank and in hand
265,413
582,708
1,896,389
3,920,900
Creditors: amounts falling due within one year
14
(2,333,581)
(2,500,059)
Net current (liabilities)/assets
(437,192)
1,420,841
Total assets less current liabilities
10,397,772
9,810,165
Creditors: amounts falling due after more than one year
15
(1,940,985)
(3,151,449)
Provisions for liabilities
(1,910,791)
(1,326,099)
Net assets
6,545,996
5,332,617
Capital and reserves
Called up share capital
19
1,000
1,000
Profit and loss reserves
6,544,996
5,331,617
Total equity
6,545,996
5,332,617
The financial statements were approved by the board of directors and authorised for issue on 23 December 2024 and are signed on its behalf by:
Miss M E Gittins
Director
Company Registration No. 05662695
YSTUM COLWYN FARMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 29 December 2022:
Balance at 30 December 2021
1,000
4,295,995
4,296,995
Year ended 29 December 2022:
Profit and total comprehensive income
-
1,035,622
1,035,622
Balance at 29 December 2022
1,000
5,331,617
5,332,617
Period ended 28 December 2023:
Profit and total comprehensive income
-
1,379,379
1,379,379
Dividends
9
-
(166,000)
(166,000)
Balance at 28 December 2023
1,000
6,544,996
6,545,996
YSTUM COLWYN FARMS LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
3,970,022
1,549,309
Interest paid
(192,070)
(65,835)
Income taxes refunded
78,152
Net cash inflow from operating activities
3,777,952
1,561,626
Investing activities
Purchase of tangible fixed assets
(2,831,299)
(1,327,875)
Proceeds from disposal of tangible fixed assets
50,500
Interest received
15,274
Net cash used in investing activities
(2,780,799)
(1,312,601)
Financing activities
Repayment of bank loans
(1,148,448)
(162,699)
Dividends paid
(166,000)
Net cash used in financing activities
(1,314,448)
(162,699)
Net (decrease)/increase in cash and cash equivalents
(317,295)
86,326
Cash and cash equivalents at beginning of period
582,708
496,382
Cash and cash equivalents at end of period
265,413
582,708
YSTUM COLWYN FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 12 -
1
Accounting policies
Company information
Ystum Colwyn Farms Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ystum Colwyn, Meifod, Powys, United Kingdom, SY22 6XT.
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 directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The accounts are for the period to 29 December 2021, however both the current year and prior year are calculated up to the end of 31 December and the periods are therefore comparable.
1.4
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.
1.5
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.
Change in estimate
In 2022, the depreciation methods of tangible fixed assets were re-evaluated to more accurately reflect the diminution in the value of the assets as a result of an increase in second hand machinery resale values. The following changes were made in the prior year:
- Plant and machinery from 12.5% reducing balance to 10% reducing balance.
- Motor vehicles from 25% reducing balance to 17.5% reducing balance.
The current depreciation bases are as follows:
Land and buildings freehold
3% straight line
Plant and machinery
10% reducing balance
Motor vehicles
17.50% reducing balance
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.
YSTUM COLWYN FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.6
Biological assets
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.
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:
Beef
Not depreciated
Sheep
Not depreciated
Poultry
Not depreciated
The directors consider that the cost of livestock is not materially different to their residual value and therefore is not depreciated.
1.7
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.
1.8
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.
1.9
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.
1.10
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.
YSTUM COLWYN FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.11
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.12
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.
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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
YSTUM COLWYN FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 15 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Sheep
19,212,901
20,530,342
Poultry
5,305,531
5,247,550
Woodchip
57,522
61,267
Manure
4,325
3,050
Cattle
389,091
233,021
24,969,370
26,075,230
2023
2022
£
£
Turnover analysed by geographical market
UK
12,662,072
14,458,108
Europe
12,307,298
11,617,122
24,969,370
26,075,230
2023
2022
£
£
Other revenue
Interest income
-
15,274
4
Operating profit
2023
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,000
5,968
Depreciation of owned tangible fixed assets
503,748
439,451
Profit on disposal of tangible fixed assets
(25,265)
-
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
7
6
YSTUM COLWYN FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2023
5
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
225,744
174,845
Social security costs
10,398
14,235
Pension costs
3,417
1,885
239,559
190,965
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
15,274
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
191,373
120,835
Other finance costs:
Other interest
697
192,070
120,835
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
42,970
1,812
Adjustments in respect of prior periods
(1,812)
(78,152)
Total current tax
41,158
(76,340)
Deferred tax
Origination and reversal of timing differences
584,692
561,228
Total tax charge
625,850
484,888
YSTUM COLWYN FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2023
8
Taxation
(Continued)
- 17 -
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
2,005,229
1,520,510
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
471,229
288,897
Tax effect of expenses that are not deductible in determining taxable profit
(5,765)
44
Tax effect of utilisation of tax losses not previously recognised
(210,321)
Unutilised tax losses carried forward
(46,081)
Permanent capital allowances in excess of depreciation
(71,788)
(241,048)
Research and development tax credit
(139,642)
Prior year adjustment
(1,812)
(78,152)
Deferred tax movement
584,692
561,228
Rounding
(33)
Marginal relief
(710)
Taxation charge for the period
625,850
484,888
9
Dividends
2023
2022
£
£
Interim paid
166,000
YSTUM COLWYN FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 18 -
10
Tangible fixed assets
Land and buildings freehold
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 30 December 2022
5,658,746
3,298,819
179,380
9,136,945
Additions
2,183,249
612,634
35,415
2,831,298
Disposals
(42,250)
(22,380)
(64,630)
At 28 December 2023
7,841,995
3,869,203
192,415
11,903,613
Depreciation and impairment
At 30 December 2022
735,321
482,633
66,526
1,284,480
Depreciation charged in the period
172,635
307,045
24,068
503,748
Eliminated in respect of disposals
(24,805)
(14,590)
(39,395)
At 28 December 2023
907,956
764,873
76,004
1,748,833
Carrying amount
At 28 December 2023
6,934,039
3,104,330
116,411
10,154,780
At 29 December 2022
4,923,425
2,816,186
112,854
7,852,465
11
Biological assets
Beef
Sheep
Poultry
Total
£
£
£
£
Cost
At 30 December 2022
-
339,129
197,730
536,859
Additions - purchases
126,000
16,404,197
891,385
17,421,582
Disposals
(389,091)
(19,212,903)
(5,305,531)
(24,907,525)
Revaluation
303,091
2,912,459
4,413,718
7,629,268
At 28 December 2023
40,000
442,882
197,302
680,184
Depreciation and impairment
At 30 December 2022 and 28 December 2023
Carrying amount
At 28 December 2023
40,000
442,882
197,302
680,184
At 29 December 2022
-
339,129
197,730
536,859
12
Stocks
2023
2022
£
£
Raw materials and consumables
93,873
102,517
YSTUM COLWYN FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 19 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,457,395
2,898,196
Other debtors
79,708
337,479
1,537,103
3,235,675
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
230,513
168,497
Trade creditors
711,233
968,735
Corporation tax
42,970
1,812
Other taxation and social security
6,909
7,594
Other creditors
1,192,787
1,323,664
Accruals and deferred income
149,169
29,757
2,333,581
2,500,059
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
1,940,985
3,151,449
The bank loan is secured with fixed and floating charge over all assets.
16
Loans and overdrafts
2023
2022
£
£
Bank loans
2,171,498
3,319,946
Payable within one year
230,513
168,497
Payable after one year
1,940,985
3,151,449
The long-term loans are secured by fixed and floating charges over all assets.
YSTUM COLWYN FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 20 -
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
1,910,791
1,326,099
2023
Movements in the period:
£
Liability at 30 December 2022
1,326,099
Charge to profit or loss
584,692
Liability at 28 December 2023
1,910,791
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
3,417
1,885
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.
19
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
600 Ordinary 'A' shares of £1 each
600
600
200 Ordinary 'B' shares of £1 each
200
200
50 Ordinary 'C' shares of £1 each
50
50
75 Ordinary 'D' shares of £1 each
75
75
75 Ordinary 'E' shares of £1 each
75
75
1,000
1,000
The Ordinary A, Ordinary B, Ordinary C, Ordinary D and Ordinary E Shares shall have attached to them full voting and capital distribution (including on winding up) rights; they shall have the right to a dividend as declared from time to time for that class of Share but so that all classes of Ordinary Shares shall not rank pari passu for dividend entitlement purposes. The Ordinary A, Ordinary B, Ordinary C, Ordinary D and Ordinary E Shares do not confer any rights of redemption.
YSTUM COLWYN FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 21 -
20
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
85,718
85,718
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Key management personnel
224,206
489,580
Other information
During the year the company purchased livestock amounting to £366,160 (2022: £90,400), made fuel purchases of £12,000 (2022: £40,000) and paid management fees amounting to £52,100 (2022: £50,000) to J E Gittins and Sons, a related party. A rental charge was also paid to J E Gittins and Sons of £50,625 in the year (2022:£0). At the year end the balance owing to J E Gittins and Sons amounted to £496,791 (2022: £120,168), which relates to the transactions mentioned, as well as recharges of costs. This is included in other creditors.
21
Directors' transactions
At the year end the company owed the directors £343,440 (2022: £603,442) in respect of interest free loans.
During the year rent of £20,640 (2022: £20,640) was paid to two family Trusts that were created by the directors.
At the year end the two family Trusts were owed £119,477 (2022: £102,965).
YSTUM COLWYN FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 22 -
22
Cash generated from operations
2023
2022
£
£
Profit after taxation
1,379,379
1,035,622
Adjustments for:
Taxation charged
625,850
484,888
Finance costs
192,070
120,835
Investment income
(15,274)
Gain on disposal of tangible fixed assets
(25,265)
-
Depreciation and impairment of tangible fixed assets
503,748
439,451
Movements in working capital:
Increase in stocks
(134,680)
(43,980)
Decrease/(increase) in debtors
1,698,572
(562,402)
(Decrease)/increase in creditors
(269,652)
90,169
Cash generated from operations
3,970,022
1,549,309
23
Analysis of changes in net debt
30 December 2022
Cash flows
28 December 2023
£
£
£
Cash at bank and in hand
582,708
(317,295)
265,413
Borrowings excluding overdrafts
(3,319,946)
1,148,448
(2,171,498)
(2,737,238)
831,153
(1,906,085)
YSTUM COLWYN FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2023
- 23 -
24
Prior period adjustment
The financial statements include prior period adjustments, as listed below. The adjustments do not have an impact on the profit for the year, nor the statement of financial position. All adjustments were made in order to provide greater detail and comparability going forward.
Biomass material and digestate in Cost of Sales was previously included in Power, light and heat in Administrative Expenses. £148,745 was restated in the prior year. This has caused the Gross Profit Margin to change from 9.07% to 8.50%.
Service charges are now being allocated to their own nominal, rather than being included in Repairs and maintenance. The prior period adjustment of £25,223 is to include the cost on it's own line. Both nominals are included in Administrative Expenses, and therefore the adjustment has no effect on margins.
Kill charges were previously recognised in Contracting. £539,414 was restated from Contracting to Kill Charges. Both nominals are included in Direct Costs and therefore the adjustment has no effect on margins.
Haulage costs have been separated into their own line in the Statement of Profit or Loss. In order to make the financial statements comparable, a prior period adjustment of £243,164 has been made to separate these costs out of Contracting and into Haulage. Both of the nominals are Direct Costs, so there has been no effect to any margins.
Changes to the balance sheet
Adjustment
£
Net assets
-
Capital and reserves
Total equity
-
Changes to the profit and loss account
Adjustment
Period ended 29 December 2022
£
Cost of sales
(148,745)
Administrative expenses
148,745
Profit for the financial period
-
YSTUM COLWYN FARMS LIMITED
SCHEDULE OF ADMINISTRATIVE EXPENSES
FOR THE PERIOD ENDED 28 DECEMBER 2023
Period ended
Year ended
28 December
29 December
2023
2022
as restated
£
£
Gross profit brought forward
1,795,027
2,216,512
Administrative expenses
Wages and salaries
225,744
174,845
Social security costs
10,398
14,235
Staff pension costs
3,417
1,885
Management charge
52,100
50,000
Rent
74,625
49,511
Rates
22,111
10,970
Service contract
79,645
25,223
Power, light and heat
9,761
63,239
Repairs and maintenance
82,449
91,978
Hire of equipment
17,401
8,025
Motor running expenses
222,684
196,090
Legal and professional fees
102,003
115,930
Accountancy
11,062
19,293
Audit fees
9,000
5,968
Bank charges
755
1,953
Insurances
79,145
59,610
Telecommunications
3,787
2,770
Sundry expenses
5,934
1,597
Depreciation
503,748
439,451
Profit or loss on sale of tangible assets
(25,265)
-
(1,490,504)
(1,332,573)
Other operating income
Sundry income
26,181
12,966
Green energy income
1,866,595
729,166
1,892,776
742,132
Operating profit
2,197,299
1,626,071
YSTUM COLWYN FARMS LIMITED
SCHEDULE OF ADMINISTRATIVE EXPENSES (CONTINUED)
FOR THE PERIOD ENDED 28 DECEMBER 2023
Period ended
Year ended
28 December
29 December
2023
2022
as restated
£
£
Investment revenues
Other interest received on financial instruments
-
15,042
Other interest received - not on financial instruments
-
232
15,274
Interest payable and similar expenses
Bank interest on loans and overdrafts
191,373
120,835
Interest on overdue taxation
697
-
(192,070)
(120,835)
Profit before taxation
8.03%
2,005,229
5.83%
1,520,510
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