Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC LIMITED
COMPANY INFORMATION
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AGRI-LINC LIMITED
CONTENTS
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AGRI-LINC LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
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.
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.
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AGRI-LINC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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.
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.
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.
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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.
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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.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
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 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.
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).
The directors who served during the year were:
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AGRI-LINC LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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.
This report was approved by the board and signed on its behalf.
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AGRI-LINC LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGRI-LINC LIMITED
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 policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
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.
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AGRI-LINC LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGRI-LINC LIMITED (CONTINUED)
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.
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.
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.
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AGRI-LINC LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGRI-LINC LIMITED (CONTINUED)
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.
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AGRI-LINC LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AGRI-LINC LIMITED (CONTINUED)
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.
Peterborough, United Kingdom
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313) Date:
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AGRI-LINC LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC LIMITED
REGISTERED NUMBER: 10931690
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 30 form part of these financial statements.
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