Company Registration No. 02974027 (England and Wales)
AGRIFAC UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
AGRIFAC UK LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
AGRIFAC UK LTD
COMPANY INFORMATION
Directors
Mr W Van Den Bosch
Mr R M Wareham
(Appointed 1 January 2025)
Company number
02974027
Registered office
4 Thorby Avenue
March
Cambs
PE15 0AZ
Auditor
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor
The Pinnacle
160 Midsummer Boulevard
Milton Keynes
MK9 1FF
Accountants
Whitings LLP
Fenland House
15B Hostmoor Avenue
March
Cambridgeshire
PE15 0AX
AGRIFAC UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

Review of the business

The Company experienced a rise in turnover compared to the previous year, primarily due to heightened customer confidence in the agricultural sector, which led to increased spending on plant and machinery. There has been an alignment with the groups transfer pricing policy, recognising the company’s role as a limited risk distributer in the UK. As a result of this alignment a credit was issued by the parent company Agrifac BV totalling £1,696,984 recognised within cost of sales. Going forward it is anticipated that the UK company will remain profitable and as a result achieve taxable profits which will in turn allow a recognition of a deferred tax asset in respect of the accumulated taxable losses that will, in the opinion of management, be relievable in future years, the deferred tax movement in respect of this totalling £1,062,002.

 

Despite ongoing cost pressures from macroeconomic instability, management is pleased to report a return to profitability and whilst they are confident of the ongoing profitability of the business, they remain mindful that the Labour Government's Autumn Budget may have a negative impact on customer purchasing behaviour.

 

Due to the nature of the trade the director monitors turnover and gross profit as the key performance indicators (KPI's) to measure performance of the Company.


Turnover has increased by 30% this period (2023: 14% decrease) from £17,188,434 to £22,267,847.

 

Gross profit for period is £3,404,006 (2023: gross loss - £398).

 

Gross profit margin is 15.29% (2023: 0%).

 

Principal risks and uncertainties

The Company operates in a highly competitive market, which is subject to external political pressures and changes in world commodity prices which impact directly on our customers' incomes. Also, in the UK weather conditions are unpredictable, impacting customer yield returns and harvest timings. From a purchasing perspective uncertainty is largely in the movement in foreign exchange rates.

The Company manages these risks by agreeing terms with its main supplier, its parent, and providing value added services to its customers and maintaining strong relationships.

These actions have had consequent significant economic effects that are expected to have an ongoing impact on the Company and its operations subsequent to the year end.

 

On behalf of the board

Mr W Van Den Bosch
Director
30 January 2025
AGRIFAC UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

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

Principal activities

The business principally acts as dealers of wholegoods, parts, servicing and warranty work to the farming industry.

 

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final 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 W Van Den Bosch
Mr R J Thurkettle
(Resigned 21 November 2023)
Mr R M Wareham
(Appointed 1 January 2025)
Directors' indemnity

Appropriate directors' and officers' liability insurance cover is in place in respect of all the Company's directors.

Political donations

During the year charitable donations amounting to £nil (2023: £nil) were made. No political donations were made (2023: £nil).

Financial risk management objectives and policies

The Company’s activities expose it to a number of financial risks including credit risk and liquidity risk.

Liquidity risk

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the Company uses a mixture of short-term and long-term debt finance from its parent company, Agrifac Machinery BV, as disclosed in notes 1.2 ‘Going concern’ on page 12 and 18 ‘Loans and overdrafts’ on page 21.

Credit risk

The Company’s principal financial assets are cash and trade receivables. The Company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful debt. The credit risk on liquid funds is limited because the counterparties are banks with high credit-ratings assigned by international credit-rating agencies. The Company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

Research and development

During the year research and development expenditure amounts to £nil (2023: £nil).

Future developments

Measures are being put in place to improve future performance in the longer term.

AGRIFAC UK LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Auditor

The auditors, Forvis Mazars LLP Chartered Accountants & Statutory Auditor, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Statement of disclosure to auditor

So far as the 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 director has taken all the necessary steps that they ought to have taken as the director in order to make themselves aware of all relevant audit information and to establish that the Company’s auditor is aware of that information.

On behalf of the board
Mr W Van Den Bosch
Director
30 January 2025
AGRIFAC UK LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

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.

AGRIFAC UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF AGRIFAC UK LTD
- 5 -
Opinion

We have audited the financial statements of Agrifac UK Limited (the ‘company’) for the year ended 30 September 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the 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 FRS 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:

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 “Auditor’s responsibilities for the audit of the financial statements” section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

 

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.

AGRIFAC UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AGRIFAC UK LTD
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement set out on page 4, 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.

AGRIFAC UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AGRIFAC UK LTD
- 7 -
Auditor's responsibilities for the audit of the financial statements

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

 

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

 

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.

 

Based on our understanding of the company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, modern slavery regulation, the bribery act and general data protection regulation.

 

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:

 

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, the Companies Act 2006 and FRS 102.

 

In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the occurrence assertion), and significant one-off or unusual transactions.

 

Our audit procedures in relation to fraud included but were not limited to:

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

 

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 auditor’s report.

AGRIFAC UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF AGRIFAC UK LTD
- 8 -

Use of the audit 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.

Stephen Brown (Senior Statutory Auditor)
for and on behalf of Forvis Mazars LLP
The Pinnacle
160 Midsummer Boulevard
Milton Keynes
MK9 1FF
Date: 30 January 2025
AGRIFAC UK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
22,267,847
17,188,434
Cost of sales
(18,863,841)
(17,188,832)
Gross profit/(loss)
3,404,006
(398)
Administrative expenses
(2,268,552)
(2,557,603)
Operating profit/(loss)
4
1,135,454
(2,558,001)
Interest receivable and similar income
9
3,559
2,151
Interest payable and similar expenses
8
(221,885)
(218,899)
Profit/(loss) before taxation
917,128
(2,774,749)
Tax on profit/(loss)
10
1,089,030
9,969
Profit/(loss) for the financial year
2,006,158
(2,764,780)
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing
operations.
AGRIFAC UK LTD
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
18,319
343,879
Investments
12
1
1
18,320
343,880
Current assets
Stocks
14
4,767,295
4,831,842
Debtors
15
2,856,146
3,076,908
Cash at bank and in hand
1,521,586
955,873
9,145,027
8,864,623
Creditors: amounts falling due within one year
16
(7,958,013)
(9,982,299)
Net current assets/(liabilities)
1,187,014
(1,117,676)
Total assets less current liabilities
1,205,334
(773,796)
Creditors: amounts falling due after more than one year
17
(2,500,000)
(2,500,000)
Provisions for liabilities
Deferred tax liability
19
-
0
27,028
-
(27,028)
Net liabilities
(1,294,666)
(3,300,824)
Capital and reserves
Called up share capital
21
2
2
Profit and loss reserves
22
(1,294,668)
(3,300,826)
Total equity
(1,294,666)
(3,300,824)
The financial statements were approved and signed by the director and authorised for issue on 30 January 2025
Mr W Van Den Bosch
Director
Company registration number 02974027 (England and Wales)
AGRIFAC UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2022
2
(536,046)
(536,044)
Year ended 30 September 2023:
Loss and total comprehensive income
-
(2,764,780)
(2,764,780)
Balance at 30 September 2023
2
(3,300,826)
(3,300,824)
Year ended 30 September 2024:
Profit and total comprehensive income
-
2,006,158
2,006,158
Balance at 30 September 2024
2
(1,294,668)
(1,294,666)
AGRIFAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
1
Accounting policies
Company information

Agrifac UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 4 Thorby Avenue, March, Cambridgeshire, PE15 0AZ.

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 Company's ultimate parent undertaking, Groupe Exel Industries SA includes the Company in its consolidated financial statements. As such these financial statements are separate and not consolidated. The ultimate parent undertakings consolidated financial statements may be obtained from EXEL Industries, Communication Financiere, 54, Reu Marcel Paul - BP 195, 51 206 Epernay, France.

1.2
Going concern

The financial statements have been prepared on a going concern basis which the director considers to be appropriate despite the net liability position reported in the balance sheet. This is due to the ongoing support of the parent Company which has been confirmed via a letter of support covering a period of no less than 12 months from the date these financial statements are approved, the parent Company have the financial means to provide this support should the Company require.

1.3
Turnover

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

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

AGRIFAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

 

Deferred income is held on the balance sheet where customers pay in advance to the service being rendered. Please see note 16 for the balance as at 30 September 2024.

1.4
Tangible fixed assets

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

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

Leasehold improvements
20% straight line
Plant and equipment
20% & 33.33% straight line
Motor vehicles
20% straight line

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
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.6
Impairment of fixed assets

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

1.7
Stocks

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

 

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

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

As per group policy parts stock lines that have not been sold or used in the past 12 months are fully written down to £nil.

AGRIFAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.


Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.

 

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

 

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

 

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.

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.

AGRIFAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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

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.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

AGRIFAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgments and estimates. The items in the financial statements where these judgments and estimates have been made include:

Judgements

In the director's view, there are no areas of judgement in preparing the financial statements which would have a significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

Provision for obsolete stocks - stock categories are reviewed on a regular basis for slow moving and obsolete items. In line with group policy where items have not been sold or used in the past 12 months they are fully written down to £nil. At the balance sheet date the estimated provision amounted to £491,456 (2023: £865,159).

3
Turnover

The turnover of the Company is derived from sales of wholegoods, parts, servicing and warranty work.

2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
21,539,929
14,310,006
Europe
727,918
2,878,428
22,267,847
17,188,434

The turnover attributable to sales of goods is £20,758,097 (2023: £15,555,365) and to sales of services is £1,509,750 (2023: £1,633,069).

4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(101,380)
11,918
Fees payable to the Company's auditor for the audit of the Company's financial statements
37,370
38,500
Depreciation of owned tangible fixed assets
25,560
42,422
(Profit)/loss on disposal of tangible fixed assets
(193,560)
3,904
Stock impairment losses recognised in cost of sales
(93,288)
865,159
Operating lease charges
130,433
103,046
AGRIFAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
5
Employees

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

2024
2023
Number
Number
Sales and technical staff
22
20
Administration
3
5
Total
25
25

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,096,188
949,452
Social security costs
126,857
110,836
Pension costs
32,149
25,997
1,255,194
1,086,285
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
26,668
81,146
Company pension contributions to defined contribution schemes
915
2,125
27,583
83,271

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2023 - 1).

7
Auditor's remuneration
2024
2023
Fees payable to the Company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the Company
37,370
38,500
AGRIFAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
-
2,397
Other interest
221,885
216,502
221,885
218,899
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,559
2,151
10
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(1,089,030)
(9,969)

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

2024
2023
£
£
Profit/(loss) before taxation
917,128
(2,774,749)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
229,282
(693,687)
Tax effect of expenses that are not deductible in determining taxable profit
(20,677)
13,559
Tax effect of utilisation of tax losses not previously recognised
-
0
(533)
Unutilised tax losses carried forward
(218,246)
659,986
Change in unrecognised deferred tax assets
(1,062,002)
-
0
Permanent capital allowances in excess of depreciation
9,641
20,675
Deferred tax
(27,028)
(9,969)
Taxation credit for the year
(1,089,030)
(9,969)

As a result of the alignment with the groups transfer pricing policy, recognising the company’s role as a limited risk distributer in the UK, management anticipate the company will continue to make taxable profits in future years. As a result, a deferred tax asset has been recognised in respect of the accumulated taxable losses that will, in the opinion of management, be relievable in future years, the deferred tax movement in respect of this totalling £1,062,002.

AGRIFAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Plant and equipment
Motor   vehicles
Total
£
£
£
£
£
Cost
At 1 October 2023
300,000
85,081
84,749
226,998
696,828
Disposals
(300,000)
(85,081)
-
0
(49,792)
(434,873)
At 30 September 2024
-
0
-
0
84,749
177,206
261,955
Depreciation and impairment
At 1 October 2023
-
0
85,081
77,659
190,209
352,949
Depreciation charged in the year
-
0
-
0
2,700
22,860
25,560
Eliminated in respect of disposals
-
0
(85,081)
-
0
(49,792)
(134,873)
At 30 September 2024
-
0
-
0
80,359
163,277
243,636
Carrying amount
At 30 September 2024
-
0
-
0
4,390
13,929
18,319
At 30 September 2023
300,000
-
0
7,090
36,789
343,879
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
1
1
13
Subsidiaries

Details of the Company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Hardi Limited
4 Thorby Avenue, March, Cambridgeshire, United Kingdom, PE15 0AZ
Ordinary
100.00
14
Stocks
2024
2023
£
£
Raw materials and consumables
2,297,482
2,223,847
Work in progress
81,092
273,952
Finished goods and goods for resale
2,388,721
2,334,043
4,767,295
4,831,842

 

AGRIFAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,099,964
2,834,907
Amounts owed by group undertakings
649,884
213,920
Prepayments and accrued income
44,296
28,081
1,794,144
3,076,908

Amount owed from group undertakings represent trade receivable amounts with group Companies. There is no interest charged on these amounts, repayment terms are on a commercial basis, and the balance is unsecured.

2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 19)
1,062,002
-
0
Total debtors
2,856,146
3,076,908

An impairment loss of £176,452 (2023 - £123,133) was provided against trade debtors.

16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
182
9,102
Trade creditors
214,605
219,738
Amounts owed to group undertakings
6,482,847
8,921,846
Taxation and social security
528,976
386,718
Deferred income
122,327
72,192
Accruals
609,076
372,703
7,958,013
9,982,299

The bank loan is secured by a fixed and floating charge over the assets of the company.

 

Hire purchase agreements are secured against the assets to which they relate.

 

Amount owed to group undertakings represent trade payable amounts with group Companies. There is no interest charged on these amounts, repayment terms are on a commercial basis, and the balance is unsecured.

 

AGRIFAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Amounts owed to group undertakings
18
2,500,000
2,500,000
2,500,000
2,500,000

 

Amounts included above which fall due after five years are as follows:
Payable other than by instalments
2,500,000
2,500,000
18
Loans and overdrafts
2024
2023
£
£
Bank loans
182
9,102
Loans from group undertakings
2,500,000
2,500,000
2,500,182
2,509,102
Payable within one year
182
9,102
Payable after one year
2,500,000
2,500,000

The bank loan is secured by a fixed and floating charge over the assets of the Company.

 

The bank loan bears interest at 2.5% above the bank's base rate, and is repayable in equal annual instalments.

 

The £2.5 million loan is due to the parent Company, Agrifac Machinery BV. This bears interest at 5% above the Euro Interbank Offered Rate (Euribor). The loan has a 10 year term expiring on 31 July 2026, but can be repaid in advance, either in full or in part, without penalty, subject to the agreement of Agrifac Machinery BV.

AGRIFAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
19
Deferred taxation
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
-
2,841
-
-
Tax losses
-
-
1,062,002
-
Revaluations
-
24,187
-
-
-
27,028
1,062,002
-
2024
Movements in the year:
£
Liability at 1 October 2023
27,028
Credit to profit or loss
(2,840)
Transfer on disposal
(24,188)
Recognition of tax assets related to taxable losses
(1,062,002)
Asset at 30 September 2024
(1,062,002)

Deferred tax is recognised in respect of tax losses of £4,248,011 as it is considered probable that they will be recovered against future taxable profits.

 

 

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,149
25,997

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.

There were £Nil outstanding contributions at the balance sheet date (2023 - £564).

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share in any circumstances.

AGRIFAC UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
22
Profit and loss reserves

Profit & loss account

 

Represents all current and prior period retained profits and losses, less dividends paid.

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
118,713
54,044
Between one and two years
62,735
40,613
In over two years
18,716
25,442
200,164
120,099
24
Related party transactions

Related party transactions that have taken place between wholly owned members of the group have not been disclosed under the exemption provided by paragraph 33.1A of FRS 102.

 

25
Ultimate controlling party

The Company is a wholly owned subsidiary of Agrifac Machinery BV a business incorporated in the Netherlands.

 

The ultimate parent Company and controlling party is Groupe Exel Industries SA a company incorporated in France.


The Company is exempt from producing consolidated accounts on the basis that its results are included in the EEA group accounts of a larger group (s.401). Consolidated accounts are prepared by Groupe Exel Industries SA, a Company incorporated in France.

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