REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
MITCHELL POTATOES LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
MITCHELL POTATOES LTD |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the year ended 30 April 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Profit and loss account | 7 |
Balance Sheet | 8 |
Statement of Changes in Equity | 9 |
Notes to the Financial Statements | 10 |
MITCHELL POTATOES LTD |
COMPANY INFORMATION |
for the year ended 30 April 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Magma House, 16 Davy Court |
Castle Mound Way |
Rugby |
CV23 0UZ |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
STRATEGIC REPORT |
for the year ended 30 April 2024 |
Review of Business |
We are pleased with our results through to April 2024. Both the trading and investment side of the business have performed well. Continued investment in open storage land has seen a significant increase in rental income during the year. |
Despite difficult trading conditions, the company has managed to achieve strong results. Turnover has increased from £16,252,042 to £22,270,456 while gross profit margins has remained static at 17%. Profit before tax has increased by 38% to £2,205,327 with the gain on revaluation of investment property increasing to £1,259,102 (2023: £1,266,711). |
Position at the year end |
At the year end the company has net current liabilities of £704,328 (2023: £685,683) and net assets of £5,569,595 (2023: £4,252,980). |
Principal risks and uncertainties |
High Energy and food prices continue to put pressure on the fast-food sector. Further minimum wage increases and the change to employers National insurance contributions will not help matters. We are managing to maintain good margins in the face of this. |
The usual risks apply, weather variability and geopolitical factors can impact potato yields and transportation costs. |
Future Plans |
The company has a strong foundation in the wholesale potato market, with significant opportunities to grow and adapt in a changing environment. By focusing on operational efficiency, market expansion, and quality control, the company can enhance its competitive position and ensure long-term success. |
The company's diversification has proven to be a successful strategy and we continue to explore this further. |
Key performance indicators |
The key performance indicators identified by the directors include the following: |
- Gross profit margin |
- Cost per unit |
- Percentage of perished stock vs total stock |
ON BEHALF OF THE BOARD: |
16 January 2025 |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
REPORT OF THE DIRECTORS |
for the year ended 30 April 2024 |
The directors present their report with the financial statements of the company for the year ended 30 April 2024. |
PRINCIPAL ACTIVITIES |
The principal activities of the company in the year under review were those of the production and distribution of food and potato seeds, property investment and open land storage. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 April 2024 was £315,352 (2023: £467,065). |
FUTURE DEVELOPMENTS |
The directors intend to maintain profitable developments of the business but no major changes are anticipated. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
Financial risk management objectives and policies |
The company's principal financial instrument is cash, the main purpose of which is to provide finance for its normal trading operations and for future investment. The company has various other financial instruments such as trade debtors and creditors that arise directly from its trading operations. The main risks arising from the company's financial instruments are liquidity and credit risks. The company has clear policies for managing each of these risks as summarised below. |
Liquidity risk |
The company aims to mitigate liquidity risk by managing cash generation by its operations and closely monitoring debtor collection. |
Credit risk |
The risk of financial loss due to counterparty's failure to honour its obligations arises principally in relation to transactions where the company provides goods or services on deferred credit terms. Company policies are aimed at minimising such losses, and require that deferred terms are granted only to customers who demonstrate an appropriate payment history and satisfy creditworthiness procedures. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he 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. |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
REPORT OF THE DIRECTORS |
for the year ended 30 April 2024 |
AUDITORS |
The auditors, Magma Audit LLP, 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 |
MITCHELL POTATOES LTD |
Opinion |
We have audited the financial statements of Mitchell Potatoes Ltd (the 'company') for the year ended 30 April 2024 which comprise the Profit and loss account, Balance Sheet, Statement of Changes in Equity and 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 30 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 |
MITCHELL POTATOES LTD |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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: |
Based on our understanding of the company and the industry, we identified the principle risks of non-compliance with laws and regulations, and considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principle risks were related to posting inappropriate journal entries, and management bias in accounting estimates. |
Audit procedures performed by the engagement team included: |
- |
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation, and fraud; |
- |
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, with unusual descriptions, or posted at unusual times; |
- |
Challenging assumptions made by management in their significant accounting estimates, such as those used to determine the recoverability of debtors and property valuations. |
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. Also, the risk of not detecting material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. |
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. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
Magma House, 16 Davy Court |
Castle Mound Way |
Rugby |
CV23 0UZ |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
PROFIT AND LOSS ACCOUNT |
for the year ended 30 April 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
1,036,106 | 393,576 |
Gain on revaluation of |
investment property | 1,259,102 | 1,266,711 |
2,295,208 | 1,660,287 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
BALANCE SHEET |
30 April 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Revaluation reserve | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
STATEMENT OF CHANGES IN EQUITY |
for the year ended 30 April 2024 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Profit for the year | - | 1,175,695 | - | 1,175,695 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Transfer | - | (950,033 | ) | 950,033 | - |
Balance at 30 April 2023 |
Changes in equity |
Profit for the year | - | 1,631,314 | - | 1,631,314 |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Transfer | - | (944,326 | ) | 944,326 | - |
Balance at 30 April 2024 |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
NOTES TO THE FINANCIAL STATEMENTS |
for the year ended 30 April 2024 |
1. | STATUTORY INFORMATION |
The company is a private company limited by shares and is incorporated in England. The address of its registered office is Boots Farm Straight Mile, Frankton, Rugby, Warwickshire, CV23 9QQ. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain fixed assets measured at fair value. |
The financial statements are presented in Sterling (£). |
Mitchell Potatoes Ltd is a wholly owned subsidiary of Shapejoint Limited and the results of Mitchell Potatoes Ltd will be included in the consolidated financial statements of Shapejoint Limited which will be available from its registered office, Boots Farm Straight Mile, Frankton, Rugby, Warwickshire, CV23 9QQ. |
Going Concern |
At the year end the company made a profit of £1,631,314 (2023: £1,175,695) and had net current liabilities of £704,981 (2023: £685,683). The directors have prepared the financial statements on a going concern basis as S.A.D Brothers Limited (Group Company), have the ability and the intention to continue supporting the company's operating activities for at least 12 months from the date of approval. In addition, the companies will not call for the repayment of the outstanding loans of £397,716 (2023: £791,233) until the company is in a financial position to repay the loans. |
The directors also have the intention of supporting the company as required to ensure it remains a going concern, for a period of at lease twelve months from the signing of the financial statements. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirement of paragraph 33.7. |
Turnover |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- | the company has transferred the significant risks and rewards of ownership to the buyer; |
- | the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- | the amount of revenue can be measured reliably; |
- | it is probable that the company will receive the consideration due under the transaction; and |
- | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Rental income |
Rental income represents rents receivable from rental units and open space land recognised as it falls due, in accordance with the lease to which it relates. Where lease incentives are given they are recognised over the lease term on a straight line basis. |
Goodwill |
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. |
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight line basis over its useful life of five years. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed five years. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less depreciation. Cost represents purchase price together with any incidental costs of acquisition. |
Depreciation is provided at the following annual rates in order to write off each asset, net of anticipated disposal proceeds, over its estimated useful economic life. Depreciation is charged at the following rates: |
Plant and machinery | - | 10% straight line |
Fixtures and fittings | - | 10% straight line |
Motor vehicles | - | 20% - 33.33% straight line |
Tangible fixed assets which represent freehold land and property are initially recognised at cost and subsequently carried at revalued amount, being the fair value at the date of revaluation less any subsequent impairment losses. Revaluations are charged to other comprehensive income and are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of each reporting period. |
No provision for depreciation is made on freehold land and buildings. The policy of not providing for depreciation on freehold buildings is a departure from the requirement of the Companies Act 2006 concerning the depreciation of fixed assets. It is in the opinion of the directors that the life of the assets are so long and their residual value so high, that depreciation is insignificant. In accordance with FRS 102 annual impairment reviews are undertaken to confirm this treatment. |
Investments in associates |
Investment in the associate company is held at cost less accumulated impairment losses. |
Investment property |
Investment property comprises freehold and long leasehold buildings. They are measured initially at cost, including related transaction costs. These are held as investments to earn rental income and for capital appreciation and are stated at fair value at the Balance Sheet date. |
The fair value of investment property reflects, among other things, rental income from current leases and assumptions about rental income from future leases in light of current market conditions |
Subsequent expenditure is added to the assets carrying amount only when it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the profit and loss account during the financial period in which they are incurred. |
Any movement in the fair value of the properties is reflected within the profit and loss account and transferred to the Revaluation Reserve in the year. Any associated deferred tax liability is taken to the profit and loss account in the year and offset against revaluation gains held in the Revaluation Reserve. |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Stock is recognised as an expense in the period in which the related revenue is recognised. |
Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the stock to its present location and condition. |
At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is recognised the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account. |
Taxation |
The tax expense for the year comprises current and deferred tax. |
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that: |
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Foreign currencies |
At each year end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at the year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Leases |
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. |
Rentals receivable under operating leases are credited to profit or loss on a straight-line basis over the lease term, unless the rental receipts are structured to increase in line with expected general inflation, in which case the company recognises annual rental income equal to amounts owed by the lessee. |
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge. The finance element of the rental payment is charged to the profit and loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other debtors, cash and bank balances and investments are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Critical accounting estimates and assumptions |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
(i) Impairment of debtors |
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
(ii) Fair value of land and buildings and investment properties |
A full valuation is obtained from a qualified valuer for land and buildings where appropriate, with interim valuation carried out by the directors. Property valuations are amended when necessary to reflect market movements, future investments and the physical condition of the properties. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2024 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Office and management | 12 | 12 |
Production and drivers | 57 | 57 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Key management compensation |
The directors deem key management to include directors only. |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss on disposal of fixed assets |
Goodwill amortisation |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2024 |
7. | 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 |
Adjustment to prior years | - | (83 | ) |
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 (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Superdeduction | - | (1,207 | ) |
Changes in tax rates | - | 93,023 |
Group relief | (4,436 | ) | - |
Total tax charge | 573,360 | 422,212 |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2024 |
9. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 May 2023 |
Additions |
At 30 April 2024 |
AMORTISATION |
At 1 May 2023 |
Amortisation for year |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
10. | TANGIBLE FIXED ASSETS |
Freehold | Fixtures |
land & | Plant and | and | Motor |
buildings | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 May 2023 |
Additions |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
Freehold land and buildings are included at open market value. Land and buildings were last professionally valued by Fisher German in August 2020. |
The directors have considered the valuation as at 30 April 2024, on an open market basis, and consider the assumptions used to be in line with the valuation undertaken in August 2020. |
Fair value at 30 April 2024 is represented by: |
£ |
Revaluations | 908,594 |
Cost | 213,477 |
1,122,071 |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
11. | FIXED ASSET INVESTMENTS |
Interest |
in |
associate |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Associated company |
Registered office: Lumaneri House Blythe Gate, Blythe Valley Park, Solihull, West Midlands, United Kingdom, B90 8AH |
Nature of business: |
% |
Class of shares: | holding |
12. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 May 2023 |
Revaluations | 1,259,102 |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2024 |
12. | INVESTMENT PROPERTY - continued |
Investment property represents freehold land and buildings not presently used and not intended for use in the company's business. |
Investment property is included at open market value. Land and buildings were last professionally valued by Fisher German in August 2020. |
The directors have considered the valuation as at 30 April 2024, on an open market basis, and consider consider the assumptions used to be in line with the valuation undertaken in August 2020. |
Fair value at 30 April 2024 is represented by: |
£ |
Revaluations | 5,515,066 |
Cost | 1,514,355 |
7,029,421 |
13. | STOCKS |
2024 | 2023 |
£ | £ |
Finished goods |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' current accounts | 50,135 | 24,094 |
VAT |
Prepayments and accrued income |
Further disclosure for Directors' current accounts is shown in note 24. |
Amounts owed by group undertakings are unsecured, interest free and repayable on demand. |
An impairment charge on trade debtors of £78,051 (2023: £48,000) has been recognised in the Profit and Loss Account. |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Hire purchase contracts (see note 18) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | 113 | - |
Accrued expenses |
Unpaid pension contributions included within other creditors amount to £8,721 (2023: £9,161). |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2024 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 17) |
Hire purchase contracts (see note 18) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
The company has three bank loans, the terms are as follows; |
- 1.20% above base rate secured loan is redeemable at par in January 2028 |
- 2.90% secured loan is redeemable at par in April 2025 |
The Coronavirus Business Interruption Loan has been partially guaranteed by the UK Government. |
18. | LEASING AGREEMENTS |
The future minimum hire purchase lease payments are as follows: |
2024 | 2023 |
£ | £ |
Not later than one year | 88,953 | 88,953 |
Later than one year and not later than five years | 215,233 | 306,880 |
Total gross payments | 304,186 | 395,833 |
Less: finance charges | (53,672 | ) | (69,114 | ) |
Carrying amount of liability | 250,514 | 326,719 |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2024 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
Hire purchase contracts | 250,214 | 326,719 |
The bank loans are secured by a fixed charge over freehold land and buildings. The company's bankers also hold a floating charge over all other assets. |
The hire purchase liabilities are secured on the current asset motor vehicles to which they relate. |
20. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other timing differences | 1,347,864 | 1,038,728 |
1,516,180 | 1,208,947 |
Deferred |
tax |
£ |
Balance at 1 May 2023 |
Origination and reversal of |
timing differences | 307,233 |
Balance at 30 April 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
Each share has full rights to voting, participation in income and capital distributions and are non redeemable. |
MITCHELL POTATOES LTD (REGISTERED NUMBER: 01530501) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the year ended 30 April 2024 |
22. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 May 2023 | 4,251,980 |
Profit for the year | - |
Dividends | ( |
) | - | ( |
) |
Transfer | (944,326 | ) | 944,326 | - |
At 30 April 2024 | 5,567,942 |
Retained earnings |
The retained earnings reserve includes all current and prior periods distributable profits and losses. |
Revaluation reserve |
The revaluation reserve are non-distributable and include the revaluation of the investment properties and freehold land and property to their fair value at the year end date, less a provision for associated deferred taxation. |
23. | ULTIMATE PARENT COMPANY |
Shapejoint Limited is regarded by the directors as being the company's ultimate parent company. |
Consolidated accounts are prepared by the the parent undertaking of Mitchell Potatoes Ltd. Financial statements can be obtained from Boots Farm, Straight Mile, Frankton, Rugby, Warwickshire, CV23 9QQ. |
There was no ultimate controlling party in the current and proceeding year. |
24. | RELATED PARTY DISCLOSURES |
The company has taken advantage of the exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
During the year, the company made purchases amounting to £922,976 (2023: 526,874) and sales amounting to £113,962 (2023: £47,032) with related parties. |
At the year end S Mitchell owed the company £49,961 (2023: £14,130) in the form of a directors loan account. The maximum outstanding during the year was £49,961 (2023: £22,773) and is interest free. |
At the year end A Mitchell was owed by the company £113 (2023: owed the company £280) in the form of a directors loan account. The maximum outstanding during the year was £280 (2023: £613) and is interest free. |
At the year end D L Mitchell owed the company £174 (2023: £9,684) in the form of a directors loan account. The maximum outstanding during the year was £9,684 (2023: £9,684) and is interest free. |
At the year end D A Mitchell, Director of the parent company, was owed £6,001 by the company (2023: owed £7,263).The balance is included within other creditors or debtors as appropriate and is interest free. |
At the year end, Mitchell Potatoes Ltd owed £397,716 (2023: £791,233) to companies with common directorship accounted for within other creditors or debtors as appropriate. |