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Registered number: 10931690










AGRI-LINC LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
AGRI-LINC LIMITED
 
 
COMPANY INFORMATION


Mr R A Martin 
Directors
Mr B Whyles 
Mr J Whyles 
Mr M G Whyles 
Mrs M Whyles (resigned 5 April 2023)
Mrs N L Whyles (resigned 5 April 2023)
Mrs R Martin (resigned 5 April 2023)
Mrs J H Whyles (resigned 5 April 2023)




Registered number
10931690



Registered office
Randalls Farm
Scottlethorpe Road

Edenham

Bourne

PE10 0LN




Independent auditor
MHA
Chartered Accountants & Statutory Auditors

1 The Forum

Minerva Business Park

Lynch Wood

Peterborough

PE2 6FT





 
AGRI-LINC LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 3
Directors' report
 
4 - 5
Independent auditor's report
 
6 - 9
Statement of comprehensive income
 
10
Statement of financial position
 
11
Statement of changes in equity
 
12
Notes to the financial statements
 
13 - 30


 
AGRI-LINC LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their Strategic report on the affairs of Agri-Linc Limited for the year ended 31 December 2023.
Principal Activity, Strategy, Business Model and Future Developments
Agri-Linc Limited is a globally recognised supplier of new and used agricultural machinery and associated wearing parts. The company’s headquarters are based at Randalls Farm near Bourne, Lincolnshire, a site historically connected to the Whyles family since 1924. In 2019, Agri-Linc expanded by acquiring the agricultural parts division of J Brock & Sons, further establishing a trade counter and stores in Thaxted, Essex.
With a focus on future growth, Agri-Linc Limited is preparing to open a new purpose-built head office in Carlby, Lincolnshire. This site was purchased in 2017 and historically served as an agricultural machinery depot. Strategically located, the Carlby site offers a favorable position with direct access to main roads, and planning consent was secured in November 2023. This new site, just five miles from the existing location, provides long-term operational security for the business.
As the company approaches its centenary in 2024, the fifth generation of the Whyles family has joined the business as shareholders, bringing fresh perspectives and innovative strategies to support global agriculture. Agri-Linc remains rooted in its core values of trust, growth mindset, and community support.
In alignment with its long-term strategic approach, Agri-Linc's management and directors have participated in Coaching & Leadership programs since 2005, enhancing their skills and business strategies. 
In July 2023, Professional Sales and Growth Strategist Roy Newey was brought in to assist with a comprehensive top-down restructure, invigorating the sales strategy and helping formulate the company’s next 5-year Business Plan (2023–2028). The new plan, titled "20 x 28," emphasizes profitability, margins, and building a high-performance team with an investment-focused mindset.
2023 was a year of investment and consolidation for Agri-Linc, marked by the following key initiatives:
• Significant investment in upgrading the company’s e-commerce website to the Adobe Commerce
 Magento Pro platform, supporting future growth.
• Enrollment in Roy Newey’s Ready-Set-Grow coaching program and the development of the "20 x 28"
 business plan.
• 4,500 new products added to the inventory.
• Smarter procurement practices that reduced overall stock value.
• Development work on the Moore Unidrill product line, introducing a new dual grain and fertilizer seed
 hopper, to be launched at the LAMMA show in January 2024.
• Exploration of potential mergers and acquisitions with smaller aligned companies for future growth
 opportunities.

Business Review
 
Agri-Linc's turnover remained stable in 2023, recording £16,580,442, a marginal decrease from £17,659,299 in 2022. Despite this, the company’s gross profit margin dropped slightly from 22.8% in 2022 to 20.2% in 2023.
Net assets saw a 1.5% increase from 2022, standing at £2,980,121 at 31 December 2023. 

Page 1

 
AGRI-LINC LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal Risks and Uncertainties
 
Agri-Linc is subject to several risks and uncertainties, primarily related to market fluctuations, seasonal demand, and government regulations:
Market Risk: Supply continues to be a key area for the company. With the agricultural industry, ensuring that we have key stock in place at the correct time of year is essential, ensuring availability of machines and parts at the right price and right time is critical.
The agricultural sector is vulnerable to rapid advancements in automation and fluctuations in global commodity prices (e.g., raw materials, foodstuffs, fertilizers, energy, and labour).
Supply chain issues and inflation in 2022 drove continuous price increases, but 2023 saw a shift to oversupply, resulting in falling commodity prices. This change has intensified competition, necessitating more aggressive marketing to maintain market share.
Seasonal Risk: The agricultural sector’s dependence on weather conditions and seasons makes it challenging to predict customer demand accurately, potentially leading to stock management difficulties.
Government Risk: Post-Brexit complexities in import/export processes require continual investment in staff training. 
Additionally, the timing and availability of government agricultural grants impact sales. For instance, the delayed release of the FETF grant in 2023 significantly affected sales of the Moore Unidrill in the first half of the year, as customers deferred spending due to missed planting deadlines.

Key Performance Indicators
 
Agri-Linc employs several KPIs to measure and drive performance:
• Sales Targets: Monitored through daily, weekly, and monthly reports.
• Customer Contacts: Tracked via daily, weekly, and monthly interaction targets.
• Customer Service: Aims to maintain a low error rate in picking, packing, and delivery, with a target of less   than 0.5%.
• Product Innovation: Targets 20 new or improved products weekly.
• Productivity: Aims for a fourfold productivity factor by 2024.
• Stock Turns: Seeks to reduce stock days to 92.
• EBITDA: Target set at 12.97%.
These KPIs are regularly reviewed to ensure their continued relevance and alignment with the company’s goals.

Closing Statement

Despite the challenges and uncertainties highlighted, the agricultural sector remains a crucial part of the UK economy, contributing £120 billion annually. Agri-Linc Holdings Limited is confident in its ability to continue expanding its market share through a broad product range and an unwavering commitment to customer needs. With its strong business model, strategic initiatives, and enduring legacy, Agri-Linc is well-positioned to succeed and grow in the dynamic global agricultural market.

Page 2

 
AGRI-LINC LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board and signed on its behalf.



................................................
Mr B Whyles
Director

Date: 18 February 2025

Page 3

 
AGRI-LINC LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £480,504 (2022 - £958,617).

The Directors have declared dividends of £435,375 during the year (2022 - £448,500).

Directors

The directors who served during the year were:

Mr R A Martin 
Mr B Whyles 
Mr J Whyles 
Mr M G Whyles 
Mrs M Whyles (resigned 5 April 2023)
Mrs N L Whyles (resigned 5 April 2023)
Mrs R Martin (resigned 5 April 2023)
Mrs J H Whyles (resigned 5 April 2023)

Page 4

 
AGRI-LINC LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Matters covered in the Strategic report

Details concerning principal activities, business review, future developments, principal risks and uncertainties, financial risk management objectives and policies and financial key performance indicators (KPIs) can be found in the Strategic Report.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board and signed on its behalf.
 





................................................
Mr B Whyles
Director

Date: 18 February 2025

Page 5

 
AGRI-LINC LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGRI-LINC LIMITED
 

Opinion


We have audited the financial statements of Agri-Linc Limited (the 'company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council'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.


Page 6

 
AGRI-LINC LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGRI-LINC LIMITED (CONTINUED)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


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.


Page 7

 
AGRI-LINC LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGRI-LINC LIMITED (CONTINUED)


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 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 our procedures are capable of detecting irregularities, including fraud is detailed below:

• Enquiry of management and those charged with governance around actual and potential litigation and    claims;
• Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;
• Performing audit work over the risk of management override of controls, including testing of journal entries  and other adjustments for appropriateness, and reviewing accounting estimates for bias;
• Reviewing minutes of meetings of those charges with governance;
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance   with applicable laws and regulations.


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 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.


Page 8

 
AGRI-LINC LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGRI-LINC LIMITED (CONTINUED)


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 2006Our 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.





Robert John Butler FCA (Senior statutory auditor)
for and on behalf of MHA, Statutory Auditor
Peterborough, United Kingdom

MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
Date:

18 February 2025
Page 9

 
AGRI-LINC LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
16,580,442
17,659,299

Cost of sales
  
(13,225,353)
(13,627,748)

Gross profit
  
3,355,089
4,031,551

Distribution costs
  
(648,574)
(675,262)

Administrative expenses
  
(2,096,006)
(2,291,280)

Other operating income
 5 
52,409
92,598

Operating profit
 6 
662,918
1,157,607

Interest receivable and similar income
 10 
73
-

Interest payable and similar expenses
 11 
(6,079)
(1,772)

Profit before tax
  
656,912
1,155,835

Tax on profit
 12 
(176,408)
(197,218)

Profit for the financial year
  
480,504
958,617

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 13 to 30 form part of these financial statements.

All amounts relate to continuing operations.

Page 10

 
AGRI-LINC LIMITED
REGISTERED NUMBER: 10931690

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
68,719
21,000

Tangible assets
 15 
509,127
439,665

  
577,846
460,665

Current assets
  

Stocks
 16 
4,365,958
5,349,893

Debtors: amounts falling due within one year
 17 
972,286
756,216

Cash at bank and in hand
 18 
97,544
157,713

  
5,435,788
6,263,822

Creditors: amounts falling due within one year
 19 
(2,928,693)
(3,763,487)

Net current assets
  
 
 
2,507,095
 
 
2,500,335

Total assets less current liabilities
  
3,084,941
2,961,000

Creditors: amounts falling due after more than one year
 20 
(18,771)
(1,891)

Provisions for liabilities
  

Deferred tax
 22 
(86,049)
(24,117)

Net assets
  
2,980,121
2,934,992


Capital and reserves
  

Called up share capital 
 23 
1,101,000
1,101,000

Profit and loss account
 24 
1,879,121
1,833,992

  
2,980,121
2,934,992


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Mr B Whyles
Director

Date: 18 February 2025

The notes on pages 13 to 30 form part of these financial statements.

Page 11
 

 
AGRI-LINC LIMITED


 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023



Called up share capital
Profit and loss account
Total equity


£
£
£



At 1 January 2022
1,101,000
1,323,875
2,424,875



Comprehensive income for the year


Profit for the year
-
958,617
958,617



Contributions by and distributions to owners


Dividends: Declared on ordinary shares
-
(448,500)
(448,500)





At 1 January 2023
1,101,000
1,833,992
2,934,992



Comprehensive income for the year


Profit for the year
-
480,504
480,504



Contributions by and distributions to owners


Dividends: Declared on ordinary shares
-
(435,375)
(435,375)



At 31 December 2023
1,101,000
1,879,121
2,980,121



The notes on pages 13 to 30 form part of these financial statements.

Page 12
 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Agri-Linc Limited ("the company") is a private company limited by shares, incorporated in England and Wales.
The registered number and address of the registered office is given in the company information page.
The nature of the Company’s operations and its principal activities are set out in the Strategic report on page 1.
The functional and presentational currency of the company is pounds sterling (£) and rounded to the nearest whole pound.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 “ The Financial Reporting Standard applicable in the UK and Republic of Ireland”:
• the requirements of Section 7 Statement of Cash Flows;
• the requirements of Section 3 Financial Statement Presentation paragraph 3.17 (d);
• the requirements of Section 33 Related Party Disclosures paragraph 33.7
This information is included in the consolidated financial statements of Agri-Linc Holdings Limited as at 31 December 2023 and these financial statements may be obtained from Companies House.

Page 13

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The financial statements have been prepared on a going concern basis which assumes that the group will continue in operational existence for the foreseeable future. The Directors have considered relevant information, including the annual budget, forecast cash flows and the impact of subsequent events in making their assessment. 
 
The company has continued to trade profitably in the year to 31 December 2024 with results improving on the year ended 31 December 2023. Furthermore January 2025 has been a record month for the Group when compared to previous January’s due to an increased stock offering. 
 
Unfortunately the annual financial statements for the year ended 31 December 2023 have been filed late. This has led to the Groups credit rating falling. The Directors are confident that once the financial statements for the year ended 31 December 2023 are filed at Companies House that the credit rating will increase and funding will be more readily available. In any case the Directors and their close family members have supported the Group where necessary and have indicated their willingness to continue supporting the Group in the short term should it be needed.
 
Looking ahead, the Directors are planning on further growth in the year to 31 December 2025 and are confident that the Group will continue to trade profitably and be cash generative. The forecasts for the year to 31 December 2025 plan for further EBITDA growth which will be achieved through increased sales.
 
Based on these assessments and having regards to the resources available to the entity, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 14

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

  
2.6

Warranty work

No provision is recognised in the financial statements in relation to the warranty provided to its customers. This is due to the warranty cost being immaterial to the company as the majority of new machines and parts are supplied with Original Equipment Manufacturer (OEM) warranty and no warranty is provided on used machines and parts. The sale of used machinery is sold as seen with no contractual warranty.

 
2.7

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

  
2.8

Research and development

All research and development costs are recognised within expenditure in the period they are incurred as it is not possible to distinguish between the research phase and the development phase.

Page 15

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.12

Pensions

Defined contribution pension plan
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

 
2.13

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 16

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of comprehensive income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Computer software
-
10
years
Goodwill
-
10
years

 
2.15

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Page 17

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.15
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Property improvements
-
15%
reducing balance
Plant and machinery
-
15%
reducing balance
Motor vehicles
-
25%
reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.16

Stocks

Stocks are stated at the lower of the average cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.  
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.18

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The company has elected to apply the recognition and measurement provisions of IFRS 9 Financial
Page 18

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)

Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the company's Statement of financial position 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Page 19

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.20
Financial instruments (continued)

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.21

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The following are the critical estimations that the Directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements.
Key source of estimation uncertainty – Determining residual values and useful economic lives of property, plant and equipment
The Company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of the assets is based on historical performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.
Judgement is applied by management when determining the residual values for plant, machinery and equipment. When determining the residual value, management aim to assess the amount that the Company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices. 

Page 20

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover (as restated)

The whole of the turnover is attributable to the principal activities of the Company.

All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Net rents receivable
52,409
76,810

Sundry income
-
15,788

52,409
92,598



6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Research & development charged as an expense
16,999
16,481

Exchange differences
9,399
8,086

Operating lease charges
42,452
62,677

Profit on disposal of tangible assets
(18,161)
(992)


7.


Auditor's remuneration

During the year, the company obtained the following services from the company's auditor:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's annual financial statements
25,000
18,500

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.

Page 21

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
1,597,273
1,648,928

Social security costs
80,639
165,644

Cost of defined contribution scheme
5,695
13,470

1,683,607
1,828,042


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Finance and administration
23
21



Operations
17
13

40
34


9.


Directors' remuneration



No directors received remuneration from the entity during the year (2022: £Nil). 


10.


Interest receivable

2023
2022
£
£


Other interest receivable
73
-


11.


Interest payable and similar expenses

2023
2022
£
£


Finance leases and hire purchase contracts
2,257
1,772

Other interest payable
3,822
-

6,079
1,772

Page 22

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
120,442
200,809

Adjustments in respect of previous periods
(5,966)
-


Total current tax
114,476
200,809

Deferred tax


Origination and reversal of timing differences
61,932
(3,591)

Total deferred tax
61,932
(3,591)


Taxation on profit on ordinary activities
176,408
197,218

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
656,912
1,155,835


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
154,374
219,609

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
12,615
7,258

Capital allowances for the year in excess of depreciation
(18,651)
(21,159)

Adjustment to tax charge in respect of prior periods
(5,966)
-

Origination and reversal of timing differences
61,932
(3,591)

Other differences leading to a decrease in the tax charge
(16,584)
(4,899)

Group relief
(11,417)
-

Change in rate of tax charge
105
-

Total tax charge for the year
176,408
197,218

Page 23

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Dividends

2023
2022
£
£


Dividends paid
435,375
448,500


14.


Intangible assets




Computer software
Goodwill
Total

£
£
£



Cost


At 1 January 2023
-
30,000
30,000


Additions
52,468
-
52,468



At 31 December 2023

52,468
30,000
82,468



Amortisation


At 1 January 2023
-
9,000
9,000


Charge for the year on owned assets
1,749
3,000
4,749



At 31 December 2023

1,749
12,000
13,749



Net book value



At 31 December 2023
50,719
18,000
68,719



At 31 December 2022
-
21,000
21,000



Page 24

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets





Property improvements
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost


At 1 January 2023
60,012
595,055
117,056
772,123


Additions
21,779
98,248
39,175
159,202


Disposals
-
(11,695)
-
(11,695)



At 31 December 2023

81,791
681,608
156,231
919,630



Depreciation


At 1 January 2023
3,549
254,496
74,413
332,458


Charge for the year on owned assets
11,260
52,744
12,917
76,921


Charge for the year on financed assets
-
4,510
4,520
9,030


Disposals
-
(7,906)
-
(7,906)



At 31 December 2023

14,809
303,844
91,850
410,503



Net book value



At 31 December 2023
66,982
377,764
64,381
509,127



At 31 December 2022
56,463
340,559
42,643
439,665

Page 25

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           15.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
53,555
58,515

Motor vehicles
16,533
9,163


16.


Stocks

2023
2022
£
£

Finished goods and goods for resale
4,365,958
5,349,893



17.


Debtors

2023
2022
£
£


Trade debtors
416,773
581,706

Amounts owed by group undertakings
218,895
-

Other debtors
149,512
39,054

Prepayments and accrued income
187,106
135,006

Tax recoverable
-
450

972,286
756,216


Amounts owed by group undertakings are unsecured, interest free and repayable on demand.


18.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
97,544
157,713


Page 26

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Creditors: Amounts falling due within one year

2023
2022
£
£

Other loans
443,330
692,246

Trade creditors
1,581,101
1,927,221

Amounts owed to group undertakings
-
182,773

Corporation tax
-
147,609

Other taxation and social security
147,505
109,210

Obligations under finance lease and hire purchase contracts
24,055
10,586

Other creditors
107,830
227,268

Accruals and deferred income
624,872
466,574

2,928,693
3,763,487


Other loans includes a stocking plan loan with a balance of £443,330 (2022: £692,246). This balance is secured against assets held within the company and is repayable within 28 days if demanded. 
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
Obligations under finance lease and hire purchase contracts of £24,055 (2022: £10,586), are secured against the assets to which they relate.


20.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Obligations under finance leases and hire purchase contracts
18,771
1,891


Obligations under finance leases and hire purchase contracts of £18,771 (2022: £1,891), are secured against the assets to which they relate.

Page 27

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
24,055
10,586

Between two and five years
18,771
1,891

42,826
12,477


22.


Deferred taxation




2023
2022


£

£






At beginning of year
24,117
27,708


(Charged)/credited to profit or loss
61,932
(3,591)



At end of year
86,049
24,117

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
49,625
37,489

Short term timing differences
36,424
(13,372)

86,049
24,117


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000 (2022 - 1,000) Ordinary shares of £1.00 each
1,000
1,000
1,100,000 (2022 - 1,100,000) Preference shares of £1.00 each
1,100,000
1,100,000

1,101,000

1,101,000

Page 28

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.Share capital (continued)

The Company has one class of ordinary shares. Each ordinary share has equal voting and distribution rights, including repayment of capital in the event of winding up.
The Company has one class of preference shares. Each preference share has no voting rights, priority to return of capital but no right to share in surplus and are redeemable at nominal value. Dividends for this class are at the directors' discretion. 



24.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments. 


25.


Prior year adjustment

The financial statements for the year ended 31 December 2022 incorrectly recognised certain sales in the Consolidated Statement of Comprehensive Income as principal revenue rather than that of agency. The comparative to these financial statements has been restated to show these revenues inline with agency revenue per FRS102. As a result both revenue and cost of sales has been reduced £736,495. The adjustment has no effect on the profit for the year or the net assets as at 31 December 2022.


26.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £5,695 (2022: £13,470).
Contributions totalling £2,701 (2022: £2,656) were payable to the fund at the reporting date and are included in other creditors.


27.


Commitments under operating leases

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
93,990
91,340

Page 29

 
AGRI-LINC LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

28.


Related party transactions

The Company has taken advantage of the exemption contained in FRS 102 section 33.1A Related Party Disclosures not to disclose transactions or balances with wholly owned entities which form part of the group.
Included within other creditors falling due within one year is a balance due to a director of the company of £1,000 (2022: £1,312). 
Also included within other creditors falling due within one year is a balance due to another director of the company of £8,823 (2022: £9,568).
Included within other creditors falling due within one year is a balance due to another director of the company of £6,767 (2022: £8,114). 
Included within other debtors is a balance due by Agri-Linc, a partnership, of which the directors and shareholders of Agri-Linc Limited are partners, totalling £20,799 (2022: £11,061 - within other creditors). This amount is interest free and repayable on demand.
All balances are unsecured, interest free and repayable on demand. 


29.


Controlling party

The company's immediate and ultimate parent company is Agri-Linc Holdings Limited, a company incorporated in England and Wales, and holds all of the issued ordinary shares in this company. The registered office of Agri-Linc Holdings Limited is Randalls Farm, Scottlethorpe Road, Edenham, Bourne, PE10 0LN.
In the opinion of the Directors, there is no ultimate controlling party.

 
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