Company registration number 04691321 (England and Wales)
ALAN BAYBUTT & SONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
ALAN BAYBUTT & SONS LIMITED
COMPANY INFORMATION
Directors
Mr J R Baybutt
Mr R A Baybutt
Mrs R Baybutt
Company number
04691321
Registered office
467 Moss Lane
Hesketh Bank
Preston
PR4 6XJ
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
ALAN BAYBUTT & SONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
ALAN BAYBUTT & SONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Review of the business

The period under review saw an increase in turnover of 15.51%. This was in part due to difficult growing conditions experienced by other growers resulting in strong market prices and high demand from both retailers and the wholesale markets.

 

Staff costs increased in line with turnover and the business continued to keep tight control on all other costs.

 

During the year, the company continued to invest heavily in Plant & Machinery to increase productivity and efficiency to handle larger volumes of work.

 

The company has successfully passed all external audits from BRC, Red Tractor, Leaf Marque, GlobalGAP, SEDEX and GRASP along with each audit carried out by its customers.

 

The company continues to invest in research and development to further extend the season and in order to develop new product lines and growing and harvesting practices throughout the business.

Principal risks and uncertainties

The continued squeeze on disposable income has forced supermarkets into price competition to retain and attract customers. Whilst this is a risk it is also an opportunity as the supermarkets are concerned about continuity of supply and range of products.

The weather is a major risk to the business. The company manages this risk by continuing to invest in plant, machinery and development of the land bank.

 

The board considers both short- and long-term funding requirements, ensuring that sufficient funds are available to meet all operational and investment needs in what is a seasonal business. Together with the company’s bankers, funding is appropriate to the needs of the company and provides appropriate stability for the future years.

 

Other information and explanations

The board believes that the company is stable and well placed to adapt and remain at the forefront of an ever-changing industry in the years ahead. They would also like to place on record their sincere thanks to the dedicated staff employed by the company.

Key performance indicators

Turnover increased to £16,410,263 (2023: £14,206,750), this is as a result high demand and increased planting for the year.

 

On behalf of the board

Mr J R Baybutt
Director
31 January 2025
ALAN BAYBUTT & SONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company continued to be that of growing and packing varieties of lettuce, celery and spinach for supply to major UK supermarkets and wholesalers.

Results and dividends

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

Ordinary dividends were paid amounting to £675,000. The directors do not recommend payment of a further dividend.

Directors

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

Mr J R Baybutt
Mr R A Baybutt
Mrs R Baybutt
Auditor

Following the merger of MHA Moore & Smalley with MHA, the company's independent auditor has now become MHA. A resolution to reappoint MHA as independent auditor will be proposed at the next Annual General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr J R Baybutt
Director
31 January 2025
ALAN BAYBUTT & SONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

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

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

ALAN BAYBUTT & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALAN BAYBUTT & SONS LIMITED
- 4 -

Qualified opinion

We have audited the financial statements of Alan Baybutt & Sons Limited (the 'company') for the year ended 30 April 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects on the corresponding figures of the matters described in the Basis for Qualified Opinion section of our report, the financial statements:

Basis for qualified opinion

In carrying out our audit work on the balances at 30 April 2022, we were not able to obtain sufficient appropriate audit evidence to verify the existence of non-growing stock lines, which formed part of the stock balances included in the balance sheet. Consequently we were unable to determine whether any adjustment to the stock balance at 30 April 2022 was necessary, or whether there was any consequential effect on the cost of sales for the comparative year ended 30 April 2023. Our audit opinion on the financial statements for the year ended 30 April 2023 was modified accordingly. Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current year's figures and the corresponding figures.

 

At 30 April 2022 the company was operating under significant operational pressures, specifically linked to the difficulties in securing sufficient and necessarily experienced labour. Because of this management did not have sufficient staff available to enable us to attend the stocktake. Due to this management imposed limitation of scope we were unable to attend site and conduct physical verification measures on the non-growing stock balances at the balance sheet date.

 

Owing to the nature of the non-growing stock base, alternative procedures to provide the necessary evidence were ultimately not able to be completed to the necessary degree in respect of the 30 April 2022 non-growing stock balances.

 

Finally, at 30 April 2022, the company was unable to recover itemised stock records for two specific areas of non-growing stock balances. Accordingly we have not been able to conduct sample based testing surrounding the valuation of these balances and consequently to form an opinion on whether these balances contain misstatements which materially affect the balances at 30 April 2022, or whether there was any consequential effect on the comparative cost of sales for the year ended 30 April 2023. Our audit opinion on the financial statements for the year ended 30 April 2023 was modified accordingly. Our opinion on the current period's financial statements is also modified because of the possible effect of this matter on the comparability of the current year's figures and the corresponding figures.

 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor 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.

ALAN BAYBUTT & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALAN BAYBUTT & SONS LIMITED (CONTINUED)
- 5 -

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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

 

Except for the matters described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

Matters on which we are required to report by exception

Arising solely from the limitation on the scope of our work relating to stock balances at 30 April 2022, referred to above:

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

ALAN BAYBUTT & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALAN BAYBUTT & SONS LIMITED (CONTINUED)
- 6 -
Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below:

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

ALAN BAYBUTT & SONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALAN BAYBUTT & SONS LIMITED (CONTINUED)
- 7 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Joe Sullivan FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
31 January 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
ALAN BAYBUTT & SONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
16,410,263
14,206,750
Cost of sales
(12,201,300)
(10,745,565)
Gross profit
4,208,963
3,461,185
Distribution costs
(180,314)
(94,304)
Administrative expenses
(2,810,996)
(2,277,264)
Other operating income
89,148
20,138
Operating profit
4
1,306,801
1,109,755
Interest receivable and similar income
7
-
0
166
Interest payable and similar expenses
8
(61,700)
(51,112)
Profit before taxation
1,245,101
1,058,809
Tax on profit
9
(340,396)
(121,253)
Profit for the financial year
904,705
937,556

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

ALAN BAYBUTT & SONS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,182,597
1,093,564
Current assets
Stocks
13
2,295,849
1,891,637
Debtors
14
3,193,814
3,008,545
Cash at bank and in hand
216
61
5,489,879
4,900,243
Creditors: amounts falling due within one year
15
(3,594,501)
(2,902,309)
Net current assets
1,895,378
1,997,934
Total assets less current liabilities
3,077,975
3,091,498
Creditors: amounts falling due after more than one year
16
(544,274)
(877,768)
Provisions for liabilities
Deferred tax liability
19
270,324
180,058
(270,324)
(180,058)
Net assets
2,263,377
2,033,672
Capital and reserves
Called up share capital
21
200
200
Capital redemption reserve
500
500
Profit and loss reserves
2,262,677
2,032,972
Total equity
2,263,377
2,033,672

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 31 January 2025 and are signed on its behalf by:
Mr J R Baybutt
Director
Company registration number 04691321 (England and Wales)
ALAN BAYBUTT & SONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 May 2022
200
500
1,699,416
1,700,116
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
937,556
937,556
Dividends
10
-
-
(604,000)
(604,000)
Balance at 30 April 2023
200
500
2,032,972
2,033,672
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
904,705
904,705
Dividends
10
-
-
(675,000)
(675,000)
Balance at 30 April 2024
200
500
2,262,677
2,263,377
ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
1
Accounting policies
Company information

Alan Baybutt & Sons Limited is a private company limited by shares incorporated in England and Wales. The registered office is 467 Moss Lane, Hesketh Bank, Preston, PR4 6XJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Baybutt Investments Limited. These consolidated financial statements are available from its registered office, Hodsons Farm, 467 Moss Lane, Hesketh Bank, Preston, Lancashire, PR4 6XJ.

1.2
Going concern

The company has retained its close links with key customers who are looking to source goods from the next cycle of crops. At the time of approving the financial statements, the directors have also secured sufficient labour to harvest its crops in the upcoming Summer season. true

Taking this into account, along with the budgets prepared and evidence obtained from interim accounts, the directors have at the time of approving the financial statements every expectation that the company has adequate resources to continue in operational existence for the foreseeable future and at the very least, greater than one year from the date of the audit report. As a consequence they continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 12 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Plant and machinery
15% - 25% reducing balance
Fixtures, fittings & equipment
33% straight line
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

1.6
Stocks

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

 

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

ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 13 -

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.7
Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

All of the company's financial assets are basic financial instruments.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 14 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

All of the company's financial liabilities are basic financial instruments.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax

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

 

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

1.11
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

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

ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

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

Growing stock

Determining the year end stock value requires estimation of the quantities of items in the ground at the year end which were yielded and sold post year end. Information on post year end yields is available and can be used with the directors' knowledge of sowing periods to obtain a materially correct estimate of the quantities which were sown pre year end.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of produce
16,297,947
14,081,394
Other sales
112,316
125,356
16,410,263
14,206,750
2024
2023
£
£
Other revenue
Interest income
-
166
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(580)
-
0
Fees payable to the company's auditor for the audit of the company's financial statements
19,600
14,935
Depreciation of owned tangible fixed assets
63,160
28,026
Depreciation of tangible fixed assets held under finance leases
140,797
170,264
Profit on disposal of tangible fixed assets
(1,000)
-
Operating lease charges
881,991
737,310
ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
5
Employees

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

2024
2023
Number
Number
Directors
3
3
Seasonal Staff
97
87
Permanent staff
27
25
Total
127
115

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,742,719
3,871,567
Social security costs
482,533
412,233
Pension costs
78,307
86,376
5,303,559
4,370,176
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
18,620
14,918
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
-
0
166
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
42,814
39,778
Interest on finance leases and hire purchase contracts
18,886
11,334
61,700
51,112
ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
250,130
3,423
Deferred tax
Origination and reversal of timing differences
85,640
132,765
Changes in tax rates
4,626
(14,935)
Total deferred tax
90,266
117,830
Total tax charge
340,396
121,253

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

2024
2023
£
£
Profit before taxation
1,245,101
1,058,809
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
311,275
201,174
Tax effect of expenses that are not deductible in determining taxable profit
9,782
4,935
Effect of change in corporation tax rate
56,861
(14,935)
Group relief
(37,522)
(36,264)
Super-deduction
-
0
(33,657)
Taxation charge for the year
340,396
121,253

The headline rate of corporation tax increased to 25% from 1 April 2023.

10
Dividends
2024
2023
£
£
Final paid
675,000
604,000
ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 19 -
11
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 May 2023
1,417,760
20,209
1,900
1,439,869
Additions
284,340
-
0
8,650
292,990
At 30 April 2024
1,702,100
20,209
10,550
1,732,859
Depreciation and impairment
At 1 May 2023
325,217
19,188
1,900
346,305
Depreciation charged in the year
202,683
373
901
203,957
At 30 April 2024
527,900
19,561
2,801
550,262
Carrying amount
At 30 April 2024
1,174,200
648
7,749
1,182,597
At 30 April 2023
1,092,543
1,021
-
0
1,093,564

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and machinery
762,320
903,118
12
Investments

The company owns 50% of Crossens Group Limited. At 30 April 2023 Crossens Group Limited had net assets of £100.

13
Stocks
2024
2023
£
£
Finished goods and goods for resale
2,295,849
1,891,637
ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
187,681
294,712
Amounts owed by group undertakings
2,918,082
2,457,318
Other debtors
76,179
104,785
Prepayments and accrued income
11,872
151,730
3,193,814
3,008,545
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
905,903
868,305
Obligations under finance leases
18
252,197
214,531
Trade creditors
1,996,519
1,699,199
Corporation tax
250,130
3,423
Other taxation and social security
58,916
53,970
Other creditors
114,786
46,831
Accruals and deferred income
16,050
16,050
3,594,501
2,902,309
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
195,000
325,000
Obligations under finance leases
18
349,274
552,768
544,274
877,768
17
Loans and overdrafts
2024
2023
£
£
Bank loans
325,000
455,000
Bank overdrafts
775,903
738,305
1,100,903
1,193,305
Payable within one year
905,903
868,305
Payable after one year
195,000
325,000
ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
17
Loans and overdrafts
(Continued)
- 21 -

The loans and overdrafts are secured by way of a cross-company unlimited guarantee between all of the companies in the group as well as fixed and floating charges over group assets, legal charges over land and buildings owned by the group and a personal guarantee from the directors.

The company has a fixed rate bank loan with a fixed interest rate of 4.95%. This loan was obtained as support during the COVID-19 pandemic and had an interest free period of one year. Repayment is being made over the 5 years to October 2026.

18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
251,197
231,231
In two to five years
379,583
599,268
630,780
830,499
Less: future finance charges
(29,309)
(63,200)
601,471
767,299

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The usual lease term is either 3 or 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Finance leases are secured over the assets to which they relate.

19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
270,816
185,176
Short term timing differences
(492)
(5,118)
270,324
180,058
ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
19
Deferred taxation
(Continued)
- 22 -
2024
Movements in the year:
£
Liability at 1 May 2023
180,058
Charge to profit or loss
90,266
Liability at 30 April 2024
270,324

The company has not finalised its capital expenditure programme for the next financial year and therefore an assessment as to the likely movement of timing differences cannot reasonably be made.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
78,307
86,376

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
190
190
190
190
Ordinary G shares of £1 each
10
10
10
10
200
200
200
200

Each class of shares ranks pari passu in all respects save for:

a) Upon a return of capital, where the residual assets (if any) up to £1,400,000 shall be distributed equally amongst all holders of Ordinary A shares. Any residual net assets in excess of £1,400,000 shall be distributed amongst all holders of Ordinary A and Ordinary G shares.

b) Upon a sale of the entire issued share capital of the company to a third party, where any consideration up to £1,400,000 will be allocated to the holders of the Ordinary A share, pro rata to the number of shares held by each individual. Ordinary G shareholders shall receive par value only. Where any element of consideration exceeds £1,400,000, this shall be allocated to the holders of Ordinary A and Ordinary G shares, pro rata to the number of shares held by each individual.

c) Ordinary G shares do not confer a right to attend or to vote at any meeting of shareholders.

22
Financial commitments, guarantees and contingent liabilities

A cross-company unlimited guarantee is in place in favour of the company's bankers between the company, Baybutt Holdings Limited and Baybutt Investments Limited.

 

At the balance sheet date, other group company borrowings payable to the company's bankers totalled £6,002,683 (2023: £6,257,967).

ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
23
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
31,590
155,390
Between two and five years
17,010
-
0
48,600
155,390
24
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Other related parties
13,160,288
11,305,526
786,913
665,738
Land rental
Asset rental
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
357,579
323,579
537,763
423,018

 

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
2,918,081
2,457,318
Other related parties
60,905
63,099

Included in other related parties are two companies where a director of Alan Baybutt and Sons Limited is also a director of those companies.

 

 

 

ALAN BAYBUTT & SONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
25
Ultimate controlling party

The company's ultimate parent company is Baybutts Investments Limited. Its registered office is Hodsons Farm, 467 Moss Lane, Hesketh Bank, Preston, Lancashire, PR4 6XJ.

 

The immediate parent company is Baybutt Holdings Limited.

 

The only group for which consolidated accounts are prepared, of which this company is a member, is the group headed by Baybutt Investments Limited. Copies of the group accounts can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ or the company's registered office.

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