Company registration number 00532589 (England and Wales)
DAVID CLARK FARMS LIMITED
Unaudited Financial Statements
For The Year Ended 30 April 2024
Pages For Filing With Registrar
David Clark Farms Limited
DAVID CLARK FARMS LIMITED
Contents
Page
Accountants' report
1
Balance sheet
2 - 3
Notes to the financial statements
4 - 8
David Clark Farms Limited
DAVID CLARK FARMS LIMITED
Accountants' Report To The Board Of Directors On The Preparation Of The Unaudited Statutory Financial Statements Of David Clark Farms Limited For The Year Ended 30 April 2024
- 1 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of David Clark Farms Limited for the year ended 30 April 2024 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of David Clark Farms Limited, as a body, in accordance with the terms of our engagement letter dated 11 December 2023. Our work has been undertaken solely to prepare for your approval the financial statements of David Clark Farms Limited and state those matters that we have agreed to state to the board of directors of David Clark Farms Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than David Clark Farms Limited and its board of directors as a body, for our work or for this report.
It is your duty to ensure that David Clark Farms Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of David Clark Farms Limited. You consider that David Clark Farms Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of David Clark Farms Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
Chavereys Limited
31 January 2025
Chartered Accountants
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
David Clark Farms Limited
DAVID CLARK FARMS LIMITED
Balance Sheet
As At 30 April 2024
30 April 2024
- 2 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
417,823
538,999
Investments
4
20,025
20,025
437,848
559,024
Current assets
Stocks
5
375,851
424,404
Debtors
6
134,906
43,202
510,757
467,606
Creditors: amounts falling due within one year
7
(893,875)
(773,073)
Net current liabilities
(383,118)
(305,467)
Total assets less current liabilities
54,730
253,557
Creditors: amounts falling due after more than one year
8
(118,375)
(185,717)
Net (liabilities)/assets
(63,645)
67,840
Capital and reserves
Called up share capital
8,000
8,000
Profit and loss reserves
(71,645)
59,840
Total equity
(63,645)
67,840
David Clark Farms Limited
DAVID CLARK FARMS LIMITED
Balance Sheet (Continued)
As At 30 April 2024
30 April 2024
- 3 -
For the financial year ended 30 April 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 30 January 2025 and are signed on its behalf by:
H J Clark
Director
Company registration number 00532589 (England and Wales)
David Clark Farms Limited
DAVID CLARK FARMS LIMITED
Notes To The Financial Statements
For The Year Ended 30 April 2024
- 4 -
1
Accounting policies
Company information
David Clark Farms Limited is a private company limited by shares incorporated in England and Wales. The registered office is Boughton Place, Sandway, Maidstone, Kent, England, ME17 2BD.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
1.2
Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover represents net invoiced sales of livestock, crops and contracting services, excluding discounts, rebates, value added tax and other sales taxes.
1.3
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:
Buildings
5 - 10% reducing balance
Plant and machinery
20% reducing balance
Drainage
10% reducing balance
Motor vehicles
20% reducing balance
Tractors
20% reducing balance
Freehold land is not depreciated.
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.
1.4
Fixed asset investments
Investments in unlisted company shares are measured at cost less accumulated impairment.
1.5
Stocks
Stock is valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stock. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads. Where cost cannot be reliably calculated, deemed cost is used in line with HMRC guidance HS232.
Biological assets are living plants and animals controlled by the company from which it expects to derive future economic benefit. These are measured at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving items. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
David Clark Farms Limited
DAVID CLARK FARMS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 April 2024
1
Accounting policies
(Continued)
- 5 -
1.6
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.
1.7
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.
1.8
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.9
Agricultural support schemes
Payments received under agricultural support schemes are recognised as income when the business has met all criteria which entitle it to the payments.
Amounts received under the Basic Payment scheme are recognised on 31 December in the year of claim. No provision has been made for penalties arising from the failure to comply with ‘cross compliance’ conditions, as defined by the RPA, except for where notification has been received.
David Clark Farms Limited
DAVID CLARK FARMS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 April 2024
1
Accounting policies
(Continued)
- 6 -
1.10
Grants relating to expenditure on tangible fixed assets are credited to the profit and loss account at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
5
6
3
Tangible fixed assets
Buildings
Plant and machinery
Drainage
Motor vehicles
Tractors
Total
£
£
£
£
£
£
Cost
At 1 May 2023
360,553
838,120
18,221
26,210
303,206
1,546,310
Additions
30,950
-
30,950
Disposals
(60,599)
(206,000)
(266,599)
At 30 April 2024
360,553
808,471
18,221
26,210
97,206
1,310,661
Depreciation and impairment
At 1 May 2023
279,839
459,466
17,741
19,471
230,794
1,007,311
Depreciation charged in the year
4,036
76,943
48
1,348
3,117
85,492
Eliminated in respect of disposals
(54,926)
(145,039)
(199,965)
At 30 April 2024
283,875
481,483
17,789
20,819
88,872
892,838
Carrying amount
At 30 April 2024
76,678
326,988
432
5,391
8,334
417,823
At 30 April 2023
80,714
378,654
480
6,739
72,412
538,999
4
Fixed asset investments
2024
2023
£
£
Other investments other than loans
20,025
20,025
David Clark Farms Limited
DAVID CLARK FARMS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 April 2024
- 7 -
5
Stocks
2024
2023
£
£
Livestock
28,376
31,965
Growing crop
297,640
297,984
Crop in store
37,945
49,801
Consumables
11,890
44,654
375,851
424,404
Biological assets included within stock are as follows:
Biological assets - livestock
2024
2023
£
£
As at 1 May
31,965
31,565
Net movement from births, deaths, sales, purchases and transfers
(3,589)
400
As at 30 April
28,376
31,965
Biological assets - growing crop
2024
2023
£
£
As at 1 May
297,984
355,945
Net movement on cultivations
(344)
(57,961)
As at 30 April
297,640
297,984
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
58,078
11,916
Other debtors
44,366
20,769
Prepayments and accrued income
1,973
6,537
Deferred tax asset (note 9)
30,489
3,980
134,906
43,202
David Clark Farms Limited
DAVID CLARK FARMS LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 April 2024
- 8 -
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
543,607
389,879
Obligations under finance leases and hire purchase
66,494
64,485
Trade creditors
151,258
91,814
Taxation and social security
3,469
1,330
Other creditors
104,305
198,040
Accruals and deferred income
24,742
27,525
893,875
773,073
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Obligations under finance leases and hire purchase
118,375
185,717
The bank overdraft is secured by way of a fixed and floating charge over all the assets of the company and personal land and property held by the directors. Hire purchase liabilities are secured against the asset to which they relate.
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
(36,268)
(24,716)
Tax losses
66,757
28,696
30,489
3,980
2024
Movements in the year:
£
Asset at 1 May 2023
(3,980)
Credit to profit or loss
(26,509)
Asset at 30 April 2024
(30,489)
10
Related party transactions
During the year one of the directors advanced the company £92,000, and withdrew £100,852. At the year end £84,305 (2023 - £93,157) was owed to the directors.