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REGISTERED NUMBER: 00568996 (England and Wales)












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: V Read
G Read



SECRETARY: G Read



REGISTERED OFFICE: Station Farm
Station Road
Sibsey
Boston
Lincolnshire
PE22 0SE



REGISTERED NUMBER: 00568996 (England and Wales)



SENIOR STATUTORY AUDITOR: Nicola Michelle Lenton FCCA



AUDITORS: Dexter & Sharpe Audit Services Ltd
(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:





V Read - Director


3 January 2025

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 £141.70 per share were paid on the 'A' Ordinary £1 shares during the year. No dividends were paid on any other classes of shares.

The total distribution of dividends for the year ended 5 April 2024 will be £ 8,502,567 .

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.

V Read
G Read

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:



V Read - Director


3 January 2025

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.




Nicola Michelle Lenton FCCA (Senior Statutory Auditor)
for and on behalf of Dexter & Sharpe Audit Services Ltd
(Statutory Auditor)
Rollestone House
Bridge Street
Horncastle
Lincolnshire
LN9 5HZ

3 January 2025

STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996)

INCOME STATEMENT
FOR THE YEAR ENDED 5 APRIL 2024

2024 2023
Notes £    £   

TURNOVER 60,033,435 45,938,167

Cost of sales (38,542,400 ) (37,793,282 )
GROSS PROFIT 21,491,035 8,144,885

Administrative expenses (6,414,339 ) (5,710,267 )
15,076,696 2,434,618

Other operating income 230,012 256,525
OPERATING PROFIT 3 15,306,708 2,691,143

Interest receivable and similar income 58,378 -
15,365,086 2,691,143

Interest payable and similar expenses 4 (66,056 ) (38,357 )
PROFIT BEFORE TAXATION 15,299,030 2,652,786

Tax on profit 5 (4,011,808 ) (566,883 )
PROFIT FOR THE FINANCIAL YEAR 11,287,222 2,085,903

STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 5 APRIL 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 11,287,222 2,085,903


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

11,287,222

2,085,903

STAPLES BROTHERS LIMITED (REGISTERED NUMBER: 00568996)

STATEMENT OF FINANCIAL POSITION
5 APRIL 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 800 -
Tangible assets 8 41,146,929 36,950,508
Investments 9 240 240
41,147,969 36,950,748

CURRENT ASSETS
Stocks 10 11,973,896 9,572,880
Debtors 11 8,712,215 10,599,744
Cash at bank 92,477 51,731
20,778,588 20,224,355
CREDITORS
Amounts falling due within one year 12 12,741,840 11,619,130
NET CURRENT ASSETS 8,036,748 8,605,225
TOTAL ASSETS LESS CURRENT
LIABILITIES

49,184,717

45,555,973

CREDITORS
Amounts falling due after more than one year 13 (910,737 ) (1,320,049 )

PROVISIONS FOR LIABILITIES 17 (5,468,116 ) (4,214,715 )
NET ASSETS 42,805,864 40,021,209

CAPITAL AND RESERVES
Called up share capital 18 60,004 60,004
Retained earnings 19 42,745,860 39,961,205
SHAREHOLDERS' FUNDS 42,805,864 40,021,209

The financial statements were approved by the Board of Directors and authorised for issue on 3 January 2025 and were signed on its behalf by:





V Read - Director


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 60,004 39,183,389 39,243,393

Changes in equity
Dividends - (1,308,087 ) (1,308,087 )
Total comprehensive income - 2,085,903 2,085,903
Balance at 5 April 2023 60,004 39,961,205 40,021,209

Changes in equity
Dividends - (8,502,567 ) (8,502,567 )
Total comprehensive income - 11,287,222 11,287,222
Balance at 5 April 2024 60,004 42,745,860 42,805,864

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 17,977,639 851,690
Interest paid (66,056 ) (38,357 )
Tax paid 693,729 (1,399,037 )
Net cash from operating activities 18,605,312 (585,704 )

Cash flows from investing activities
Purchase of intangible fixed assets (1,000 ) -
Purchase of tangible fixed assets (5,755,963 ) (1,761,409 )
Sale of tangible fixed assets 176,000 59,920
Interest received 58,378 -
Net cash from investing activities (5,522,585 ) (1,701,489 )

Cash flows from financing activities
Capital repayments in year (2,083,742 ) (1,812,352 )
Amount introduced by directors - 1
Amount withdrawn by directors - (1 )
Equity dividends paid (8,502,567 ) (1,308,087 )
Net cash from financing activities (10,586,309 ) (3,120,439 )

Increase/(decrease) in cash and cash equivalents 2,496,418 (5,407,632 )
Cash and cash equivalents at beginning of year 2 (4,767,059 ) 640,573

Cash and cash equivalents at end of year 2 (2,270,641 ) (4,767,059 )

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 15,299,030 2,652,786
Depreciation charges 3,417,731 3,235,697
Loss/(profit) on disposal of fixed assets 54,962 (5,889 )
Finance costs 66,056 38,357
Finance income (58,378 ) -
18,779,401 5,920,951
(Increase)/decrease in stocks (2,401,016 ) 488,976
Decrease/(increase) in trade and other debtors 639,744 (5,937,640 )
Increase in trade and other creditors 959,510 379,403
Cash generated from operations 17,977,639 851,690

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 (2,363,118 ) (4,818,790 )
(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 (4,818,790 ) -
(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 ) 2,496,418 (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
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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.

Entitlements are being amortised evenly over their estimated useful life of five years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 12.5% on reducing balance, 5% on reducing balance and Nil
Farm fixtures - 25% on reducing balance
Plant and machinery - 35% on reducing balance, 20% on reducing balance, 12.5% on reducing balance and Straight line over 10 years
Motor vehicles and trailers - 25% on reducing balance
Tractors and harvesters - 25% on reducing balance, 20% on reducing balance and 12.5% on reducing balance

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 2 2

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 2 2

3. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£ £
Depreciation of tangible fixed assets
- owned by the company2,609,1802,670,129
- held under finance leases & hire purchase contracts808,551567,065
Auditors remuneration14,80013,800
Auditors remuneration for non audit services2,4351,770
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 171 82
Hire purchase interest 65,127 37,312
Corporation tax interest 607 963
PAYE and VAT interest 151 -
66,056 38,357

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 2,758,407 177,411
Under / (Overprovision) in
previous year - (6,844 )
Total current tax 2,758,407 170,567

Deferred tax 1,253,401 396,316
Tax on profit 4,011,808 566,883

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 15,299,030 2,652,786
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
19%)

3,824,758

504,029

Effects of:
Expenses not deductible for tax purposes 38 -
Income not taxable for tax purposes (450 ) -
Capital allowances in excess of depreciation (1,077,767 ) (316,168 )
Adjustments to tax charge in respect of previous periods - (6,844 )
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 8,502,567 1,308,087

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 1,000
At 5 April 2024 1,000
AMORTISATION
Amortisation for year 200
At 5 April 2024 200
NET BOOK VALUE
At 5 April 2024 800

8. TANGIBLE FIXED ASSETS
Freehold Farm Plant and
property fixtures machinery
£    £    £   
COST
At 6 April 2023 32,084,704 978,154 32,690,440
Additions 664,762 - 6,811,669
Disposals - - (443,550 )
At 5 April 2024 32,749,466 978,154 39,058,559
DEPRECIATION
At 6 April 2023 9,358,984 857,581 21,532,574
Charge for year 1,016,930 30,145 1,568,141
Eliminated on disposal - - (224,710 )
At 5 April 2024 10,375,914 887,726 22,876,005
NET BOOK VALUE
At 5 April 2024 22,373,552 90,428 16,182,554
At 5 April 2023 22,725,720 120,573 11,157,866

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 238,500 7,208,596 73,200,394
Additions - 368,483 7,844,914
Disposals - (171,000 ) (614,550 )
At 5 April 2024 238,500 7,406,079 80,430,758
DEPRECIATION
At 6 April 2023 233,973 4,266,774 36,249,886
Charge for year 1,132 801,183 3,417,531
Eliminated on disposal - (158,878 ) (383,588 )
At 5 April 2024 235,105 4,909,079 39,283,829
NET BOOK VALUE
At 5 April 2024 3,395 2,497,000 41,146,929
At 5 April 2023 4,527 2,941,822 36,950,508

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 240
NET BOOK VALUE
At 5 April 2024 240
At 5 April 2023 240

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 7,425,229 8,187,481
Other debtors 203,535 59,338
Corporation tax - 1,247,785
VAT 500,110 712,822
Prepayments and accrued income 583,341 392,318
8,712,215 10,599,744

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 14) 2,363,118 4,818,790
Hire purchase contracts (see note 15) 1,603,188 1,234,632
Trade creditors 5,856,694 4,314,844
Corporation Tax 2,204,351 -
S Farms Limited 28,454 25,887
Directors' current accounts 7,220 7,220
Accruals and deferred income 632,850 1,166,166
Deferred government grants 45,965 51,591
12,741,840 11,619,130

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 15) 620,743 984,090
Deferred government grants 289,994 335,959
910,737 1,320,049

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 2,363,118 4,818,790

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 1,645,242 1,257,763
Between one and five years 638,599 992,285
2,283,841 2,250,048

Finance charges repayable:
Within one year 42,054 23,131
Between one and five years 17,856 8,195
59,910 31,326

Net obligations repayable:
Within one year 1,603,188 1,234,632
Between one and five years 620,743 984,090
2,223,931 2,218,722

16. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank overdrafts 2,363,118 4,818,790
Hire purchase contracts 2,223,931 2,218,722
4,587,049 7,037,512

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 4,214,715
Charge to Income Statement during year 1,253,401
Balance at 5 April 2024 5,468,116

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: £    £   
60,004 'A' Ordinary £1 60,004 60,004

19. RESERVES
Retained
earnings
£   

At 6 April 2023 39,961,205
Profit for the year 11,287,222
Dividends (8,502,567 )
At 5 April 2024 42,745,860

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 6,499,858 45,172

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.