REGISTERED NUMBER: |
STAPLES BROTHERS LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 5 APRIL 2024 |
REGISTERED NUMBER: |
STAPLES BROTHERS LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 5 APRIL 2024 |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 5 APRIL 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 15 |
STAPLES BROTHERS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 5 APRIL 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
(Statutory Auditor) |
Rollestone House |
Bridge Street |
Horncastle |
Lincolnshire |
LN9 5HZ |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 5 APRIL 2024 |
The directors present their strategic report for the year ended 5 April 2024. |
The principal activity of the company was farming. |
REVIEW OF BUSINESS |
The results for the year ended 05 April 2024, and the financial position of the company at 05 April 2024, are as shown on the financial statements. |
Given the non-complex nature of the company and its business, this review is considered to be balanced and comprehensive, having regard to the size of the company. The review also considers any risks or uncertainties faced by the company. |
The directors are satisfied with the results for the year. |
Turnover for the year totalled £60.0m compared to £45.9m for the previous year, an uplift of 31%. |
Net profit for the year, after tax, was £11.3m compared to a profit, after tax, of £2.0m for the year ended 05 April 2023. |
Dividends voted in the year were £8.5m compared with £1.3m for the previous year. |
The company continues to develop and invest in the latest equipment and technologies to improve efficiency and productivity. Total capital spend in the year on plant, machinery and vehicles amounted to £7.2m. |
KEY PERFORMANCE INDICATORS |
The key financial performance indicators are as follows: |
- Gross profit percentage 35.8% (2023 - 17.7%, 2022 - 19.9%, 2021 - 27.2%). |
- Net profit percentage 25.5% (2023 - 5.8%, 2022 - 13.8%, 2021 - 20.4%) |
- Net Return on equity 35.7% (2023 - 6.6%, 2022- 13.9%, 2021 - 21.5%) |
OUTLOOK |
The directors believe that the company's balance sheet provides a strong capital base for further sustainable growth alongside long-term security. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Given the nature of the company's activities the unpredictability of the UK climate will always prove to be challenging. The company meets this risk by implementing procedures to minimise uncertainty and impact on the business through extensive research, crop planning and management, and relevant investment in all areas. |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 5 APRIL 2024 |
SECTION 172(1) STATEMENT |
Section 172 of the Companies Act 2006 requires the directors of the company to act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole and, in doing so, have regard to: |
- the likely consequences of any decision long-term; |
- the interest of the company's employees; |
- the need to foster the company's business relationships with suppliers, customers and others; |
- the impact of the company's operations on the community and the environment; |
- the desirability of the company maintaining a reputation for high standards of business conduct, and |
- the need to act fairly as between members of the company. |
Promoting the company's success for its members and long term strategy |
The company is managed by the directors, Vernon Read and George Read. |
Strategic decisions are based on long-term objectives. The long term strategy is investment in the very latest technology and equipment. The company is proud to have created a unique integrated production system delivering the highest efficiency and lowest risk in the industry. |
The company always looks to the future in pioneering product development, meeting customer needs through consumer and market insight. |
The directors are minded to always act in good faith to promote the success of the company and to act fairly in respect of (and for the benefit of) the shareholders of the company. |
Employees |
The company does not directly employ anyone. |
Our customers and suppliers |
The directors and senior management of the associated company, Staples (Vegetables) Limited, oversee the relationships with key suppliers and customers. |
The company's main customer is the associated company, Staples (Vegetables) Limited, who supply predominantly to the major UK supermarkets. Key to these relationships is quality of product, service and availability to meet demand throughout the year. |
The company views the relationship with its suppliers as vital to the on-going success of the company. The company always seeks to be transparent and fair with suppliers and build loyal and stable working relationships. There are many businesses, both locally and nationally, that have had a mutually beneficial working relationship with the company for more than 30 years. |
Our community and the environment |
The company is based in Lincolnshire with additional farms on the Isle of Wight. The company has supported many local and community projects in recent years and it has a significant visible presence in the area. |
The company, alongside the associated company, Staples (Vegetables) Limited, has a policy for sustainable food and farming as evidenced through its membership of many environmental and ethical assurance schemes. |
The company provides the associated company, Staples (Vegetables) Limited, with site electricity via an anaerobic digester plant at both the Wrangle and Sibsey processing sites. The plant is run on out-of-specification vegetables and maize silage. The companies are self-sufficient in generating their own electricity. |
High standards of business conduct |
The directors operate the business in a responsible manner, with regard to maintaining high standards of business conduct, reputation and governance that is expected given the size of the company. |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 5 APRIL 2024 |
FINANCIAL INSTRUMENTS, RISKS AND THEIR MANAGEMENT |
The company's principal financial instruments comprise trade debtors, bank account, trade creditors and finance agreements. The main purpose of these instruments is to finance the operations of the company. |
Trade debtors are mainly with the associated company Staples (Vegetables) Limited. Trade debtors are managed for credit and cash flow risk by establishing credit limits and regular monitoring of amounts outstanding for age and limits. Trade debtors included in the balance sheet are net of allowances for bad or doubtful debts. |
Bank liquidity risk is managed by real-time record keeping to ensure limits are not exceeded. |
Trade creditors liquidity risk is managed through the use of the financial instruments to ensure there are sufficient funds available to meet amounts falling due. |
The company uses finance agreements to fund large fixed asset acquisition. The liquidity risk in respect of these agreements is managed by ensuring that there are sufficient funds available to meet the repayments when due. |
The directors consider that adequate finance is in place to take advantage of any business opportunities that may arise and consider that the company is in a strong position with regard to market share. |
FUTURE DEVELOPMENTS |
The company will continue with its successful on-going strategy of investment in the most innovative and leading-edge farming techniques and machinery. |
KEY PERFORMANCE INDICATORS |
The key performance indicators are summarised above within the review of the business. These are measured by gross profit, operating profit and the return on capital employed. |
. |
ON BEHALF OF THE BOARD: |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 5 APRIL 2024 |
The directors present their report with the financial statements of the company for the year ended 5 April 2024. |
DIVIDENDS |
Interim dividends totalling £ |
The total distribution of dividends for the year ended 5 April 2024 will be £ |
DIRECTORS |
The directors set out in the table below have held office during the whole of the period from 6 April 2023 to the date of this report. |
The directors shown below were in office at 5 April 2024 but did not hold any interest in the 'A' Ordinary shares of £1 each at 6 April 2023 or 5 April 2024. |
STREAMLINED ENERGY AND CARBON REPORTING |
The company is a subsidiary of S Farms Limited. |
The company is consolidated into the group accounts of S Farms Limited to 05 April 2024 (company number 13179690) who provide an energy and carbon report for the whole group, including the associated company, Staples (Vegetables) Limited. Staples Brothers Limited is not required to report individually on its carbon emissions, energy consumption and its measures taken to improve energy efficiency in the accounting period. |
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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 5 APRIL 2024 |
AUDITORS |
The auditors, Dexter & Sharpe Audit Services Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
STAPLES BROTHERS LIMITED |
Opinion |
We have audited the financial statements of Staples Brothers Limited (the 'company') for the year ended 5 April 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 5 April 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
STAPLES BROTHERS LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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: |
We have enquired of those charged with governance around actual and potential litigation and claims. |
We have reviewed financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
We have enquired of staff engaged in the completion of VAT, tax and compliance work to identify any instances of non compliance with laws and regulations. |
We have audited the risk of management override of controls including review of journal entries and large or unusual transactions, evaluating the business rationale of any significant transactions outside the course of business. |
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. |
for and on behalf of |
(Statutory Auditor) |
Rollestone House |
Bridge Street |
Horncastle |
Lincolnshire |
LN9 5HZ |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
INCOME STATEMENT |
FOR THE YEAR ENDED 5 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
15,076,696 | 2,434,618 |
Other operating income |
OPERATING PROFIT | 3 |
Interest receivable and similar income |
15,365,086 | 2,691,143 |
Interest payable and similar expenses | 4 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 5 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 5 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
STATEMENT OF FINANCIAL POSITION |
5 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
Tangible assets | 8 |
Investments | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 13 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 5 APRIL 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 6 April 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 5 April 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 5 April 2024 |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 5 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of intangible fixed assets | ( |
) |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | - | 1 |
Amount withdrawn by directors | - | (1 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year | 2 | (4,767,059 | ) | 640,573 |
Cash and cash equivalents at end of year | 2 | ( |
) | ( |
) |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 5 APRIL 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( |
) |
Finance costs | 66,056 | 38,357 |
Finance income | (58,378 | ) | - |
18,779,401 | 5,920,951 |
(Increase)/decrease in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 5 April 2024 |
5.4.24 | 6.4.23 |
£ | £ |
Cash and cash equivalents | 92,477 | 51,731 |
Bank overdrafts | ( |
) | ( |
) |
(2,270,641 | ) | (4,767,059 | ) |
Year ended 5 April 2023 |
5.4.23 | 6.4.22 |
£ | £ |
Cash and cash equivalents | 51,731 | 640,573 |
Bank overdrafts | ( |
) |
(4,767,059 | ) | 640,573 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 6.4.23 | Cash flow | changes | At 5.4.24 |
£ | £ | £ | £ |
Net cash |
Cash at bank | 51,731 | 40,746 | 92,477 |
Bank overdrafts | (4,818,790 | ) | 2,455,672 | (2,363,118 | ) |
(4,767,059 | ) | (2,270,641 | ) |
Debt |
Finance leases | (2,218,722 | ) | 2,083,742 | (2,088,951 | ) | (2,223,931 | ) |
(2,218,722 | ) | 2,083,742 | (2,088,951 | ) | (2,223,931 | ) |
Total | (6,985,781 | ) | 4,580,160 | (2,088,951 | ) | (4,494,572 | ) |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 5 APRIL 2024 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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. |
Tangible fixed assets |
Freehold property | - |
Farm fixtures | - |
Plant and machinery | - |
Motor vehicles and trailers | - |
Tractors and harvesters | - |
Valuation |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
The valuation of stock and tenantright was carried out by independent valuers Martin Wright Surveyors Limited, The Orchard Rooms, Frith Bank, Boston and is in accordance with FRS 102. |
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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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 are expected to apply to the reversal of the timing difference. |
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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Grants and contributions |
Grants receivable in respect of tangible fixed assets are treated as deferred income which is credited to the profit and loss account over the estimated economic lives of the related assets. Grants receivable in respect of profit and loss expenditure are credited to the expenditure heading concerned in the year of receipt. |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5 APRIL 2024 |
2. | EMPLOYEES AND DIRECTORS |
There were no staff costs for the year ended 5 April 2024 nor for the year ended 5 April 2023. |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors |
Included in Contract work and plant hire are staff costs of £3,304,987 (2023 - £2,980,070) which have been recharged from the associated company Staples (Vegetables) Limited per note 21. |
2024 | 2023 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
3. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation of tangible fixed assets |
- owned by the company | 2,609,180 | 2,670,129 |
- held under finance leases & hire purchase contracts | 808,551 | 567,065 |
Auditors remuneration | 14,800 | 13,800 |
Auditors remuneration for non audit services | 2,435 | 1,770 |
Grant release | (51,591 | (58,021 | ) |
Currency exchange (gain)/loss | (19,348 | (20,730 | ) |
4. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank overdraft interest |
Hire purchase interest |
Corporation tax interest |
PAYE and VAT interest |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5 APRIL 2024 |
5. | 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 |
Under / (Overprovision) in |
previous year | - | (6,844 | ) |
Total current tax |
Deferred tax |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Grant proceeds on capital items released | (12,898 | ) | (11,024 | ) |
Mars adjustment | 10,986 | 929 |
(Profit)/loss on disposal of fixed assets | 13,740 | (1,119 | ) |
Additional tax due to rate increase | - | 764 |
Temporary timing differences | 1,253,401 | 396,316 |
Total tax charge | 4,011,808 | 566,883 |
6. | DIVIDENDS |
2024 | 2023 |
£ | £ |
'A' Ordinary shares of £1 each |
Interim |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5 APRIL 2024 |
7. | INTANGIBLE FIXED ASSETS |
Entitlements |
£ |
COST |
Additions |
At 5 April 2024 |
AMORTISATION |
Amortisation for year |
At 5 April 2024 |
NET BOOK VALUE |
At 5 April 2024 |
8. | TANGIBLE FIXED ASSETS |
Freehold | Farm | Plant and |
property | fixtures | machinery |
£ | £ | £ |
COST |
At 6 April 2023 |
Additions |
Disposals | ( |
) |
At 5 April 2024 |
DEPRECIATION |
At 6 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) |
At 5 April 2024 |
NET BOOK VALUE |
At 5 April 2024 |
At 5 April 2023 |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5 APRIL 2024 |
8. | TANGIBLE FIXED ASSETS - continued |
Motor |
vehicles | Tractors |
and | and |
trailers | harvesters | Totals |
£ | £ | £ |
COST |
At 6 April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 5 April 2024 |
DEPRECIATION |
At 6 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 5 April 2024 |
NET BOOK VALUE |
At 5 April 2024 |
At 5 April 2023 |
Included in cost of land and buildings is freehold land of £ 3,962,694 (2023 - £ 3,962,694 ) which is not depreciated. |
The net book value of tangible fixed assets includes £4,502,020 (2023 - £3,778,803) in respect of assets held under hire purchase contracts and finance leases. |
9. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 6 April 2023 |
and 5 April 2024 |
NET BOOK VALUE |
At 5 April 2024 |
At 5 April 2023 |
10. | STOCKS |
2024 | 2023 |
£ | £ |
Valuation | 11,973,896 | 9,572,880 |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5 APRIL 2024 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Corporation tax |
VAT |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Hire purchase contracts (see note 15) |
Trade creditors |
Corporation Tax |
S Farms Limited | 28,454 | 25,887 |
Directors' current accounts | 7,220 | 7,220 |
Accruals and deferred income |
Deferred government grants |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 15) |
Deferred government grants |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
The loans and mortgages with The Agricultural Mortgage Corporation were all repaid within the financial year. |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5 APRIL 2024 |
15. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2024 | 2023 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank overdrafts |
Hire purchase contracts | 2,223,931 | 2,218,722 |
The hire purchase contracts are secured on the assets concerned. |
17. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 5,468,116 | 4,214,715 |
Deferred |
tax |
£ |
Balance at 6 April 2023 |
Charge to Income Statement during year |
Balance at 5 April 2024 |
The above provision for deferred taxation is made up of accelerated capital allowances and represents the maximum potential liability. |
Deferred tax has been calculated at 25%. |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5 APRIL 2024 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
'A' Ordinary | £1 | 60,004 | 60,004 |
19. | RESERVES |
Retained |
earnings |
£ |
At 6 April 2023 |
Profit for the year |
Dividends | ( |
) |
At 5 April 2024 |
20. | CONTINGENT LIABILITIES |
On 26 February 2021 HSBC UK Bank plc registered a debenture as security for the payment and discharge of all debt owed to the bank in the form of a fixed charge and a floating charge over all the property or undertaking of the company. |
21. | CAPITAL COMMITMENTS |
2024 | 2023 |
£ | £ |
Contracted but not provided for in the |
financial statements |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5 APRIL 2024 |
22. | RELATED PARTY DISCLOSURES |
The company is associated with its parent company, S Farms Limited. Dividends of £8,502,567 (2023 - £1,308,087) were voted in the year and at the year end the amount of £28,454 (2023 - £25,887) was owing to S Farms Limited. |
The company is associated with Staples (Vegetables) Limited - a summary of the transactions is shown below. |
2024 | 2023 |
£ | £ |
Sale of produce | 40,549,130 | 32,937,483 |
Site recharges to Staples (Vegetables) Limited | - | - |
Labour costs recharged by Staples (Vegetables) Limited | (3,304,987 | ) | (2,980,070 | ) |
Amounts outstanding at the year end were as follows: |
Balance owed by Staples (Vegetables) Limited | 5,066,443 | 7,402,508 |
Balance owed to Staples (Vegetables) Limited | (675,998 | ) | (571,926 | ) |
From 2023 site recharges are no longer charged across separately but are incorporated in the price per acre paid for produce. |
The Staples 1993 Pension Fund owns land and glasshouses that are used by the company. A rent of £nil (2023 - nil) was paid to the Scheme in respect of glasshouses. A rent of £146,985 (2023 - £193,835) was paid to the Scheme in respect of land. |
V Read, a director, is also a director of VER Limited. The crop recharges and purchases from VER Limited are given below. At the balance sheet date the amount outstanding was £nil (2023 - £nil). |
2024 | 2023 |
£ | £ |
Plants and Seeds recharge | 790,654 | 775,380 |
Contracting recharge | 2,075,900 | 1,990,571 |
Crop purchases | (1,046,512 | ) | (965,152 | ) |
G Read, a director, is also a director of G-VEG Limited. The recharges and purchases from G- VEG Limited are given below. At the balance sheet date the amount owed to G-Veg Limited was £nil (2023 - £432,616). The amount owed by G-Veg Limited was £nil (2023: £268,812). |
2024 | 2023 |
£ | £ |
Plants and Seeds | 930,161 | 681,118 |
Contracting | 2,206,829 | 1,683,015 |
Crop purchases | (924,390 | ) | (639,802 | ) |
G Read, a director, is also a director of G & P Read Limited together with his wife. The recharges and purchases from G & P Read Limited are given below. At the balance sheet date the amount owed to G & P Read Limited was £nil (2023 - £nil). |
2024 | 2023 |
£ | £ |
Plants and Seeds | 152,344 | 175,274 |
Contracting | 169,853 | 146,256 |
Crop purchases | (405,647 | ) | (398,474 | ) |
STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 5 APRIL 2024 |
Included within creditors are loans from the following related parties: |
The loans are repayable on demand. | 2024 | 2023 |
£ | £ |
Due within one year: |
Vernon Read | 977 | 977 |
George Read | 6,243 | 6,243 |
7,220 | 7,220 |
23. | ULTIMATE CONTROLLING PARTY |
The company is controlled by S Farms Limited, a company incorporated in England and Wales, company number 13179690. The registered office of S Farms Limited is Station Farm, Station Road, Sibsey, Boston, Lincs, PE22 OSE. |
The ultimate controlling parties are George Read and Vernon Read. |
24. | ASSOCIATED COMPANIES |
The company is associated with Staples (Vegetables) Limited by virtue of both companies having the same parent company. |
The company is also associated with its parent company, S Farms Limited. |