Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
COMPANY INFORMATION
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AGRI-LINC HOLDINGS LIMITED
CONTENTS
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AGRI-LINC HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their Strategic report on the affairs of Agri-Linc Holdings Limited for the year ended 31 December 2023.
Principal Activity, Strategy, Business Model and Future Developments
Agri-Linc Holdings Limited serves as the holding company for two primary trading subsidiaries: Agri-Linc Limited and Moore Unidrill Manufacturing Limited. Agri-Linc Limited has gained global recognition as a supplier of new and used agricultural machinery, along with associated wearing parts. In contrast, Moore Unidrill Manufacturing Limited, acquired in 2019, focuses on building Direct Drills marketed via dealerships worldwide. The company’s headquarters are located at Randalls Farm near Bourne in Lincolnshire, a site with significant historical ties to the Whyles family since 1924. In 2019, the company also acquired the agricultural parts division of J Brock & Sons, maintaining their stores and trade counter in Thaxted, Essex. Looking towards future growth, Agri-Linc Holdings has plans for expansion, including a new purpose-built head office in Carlby, Lincolnshire. Purchased in 2017, this site has a rich history as an agricultural machinery depot and is strategically positioned with a main road aspect. The planning consent for the new Carlby premises was granted in November 2023, and gives long-term security for the business operation, just five miles from the existing location. Agri-Linc’s roots are deeply embedded in its farming heritage in Lincolnshire since 1924. As the company approaches its centenary in 2024, it welcomed the fifth generation of the Whyles family as shareholders into the business, bringing renewed energy and innovative ideas to support the global farming industry. The company’s core values—trust, growth mindset, and a commitment to supporting the agricultural community—remain steadfast. From 2005 onwards, the directors and management team have participated in the Coaching and Leadership programmes that include regular Seminars, Networking events, and Professional Coaching, in view of enhancing their skills and formulating a robust business strategy. In July 2023, Professional Sales and Growth Strategist, Roy Newey, was contracted to assist the Team with a top-down restructure, to inject fresh sales strategy and inspiration, and to help us to create the next 5-year (2023- 2028) Business Plan. In summary, 2023 was a year of consolidation and investment for future growth. • Significant investment was made in upgrading its e-commerce website to an Adobe Commerce Magento Pro platform, ensuring this vital sales tool can continue to grow and evolve with us on our growth journey. • Enrolled on Roy Newey Ready-Set-Grow Coaching programme and new 5-year Plan 20 x 28 created, with a focus on margin/profitability and building a high-performance team with an investment mindset. • Planning Consent achieved at new Carlby premises. • 4,500 new products were added to the range. • Overall stock £ value was successfully reduced by smarter procurement. • Extensive development work was carried at Moore Unidrill to create a new Dual Grain and Fertiliser Seed Hopper, ready for a successful launch at LAMMA show in January 2024. • Strategic merger and acquisitions proposals with smaller aligned companies were investigated for future expansion opportunities.
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AGRI-LINC HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
For the year ending 31 December 2023, the group experienced a 8.2% decrease in turnover to £18,725,737. Gross profit dipped below 22%, from 24.1% in 2022 to 21.4% in 2023. Net assets decreased by 1.2%, standing at £4,211,685.
Positively, equity increased during the year by 1.2%, and ROCE (Return on Capital Employed) is a healthy 17.9%. With the value of the property adjusted out (non-trading fixed assets) the ROCE is 23.3%.
The directors have identified the following principal risks and uncertainties affecting the Group:
Market Risk: Supply continues to be a key area for the company. With the agricultural industry, ensuring that we have the right stock in at the right price is critical. Rapid advancements in automation and fluctuations in global commodity prices, such as raw materials, foodstuffs, fertilizers, energy, and labour, pose significant challenges to suppliers’ costings. The supply chain challenges of 2022, coupled with rapid inflation, and interest rate increases driving up costs, had all led to continuous price increases – the situation changed in 2023 with the supply versus demand switching around, and a general over-supply meaning prices started to reduce on some commodities. The over-supply situation has given end-users/buyers more choice and we are having to be more aggressive in our marketing strategy, to ensure we still grow market share. Seasonal Risk: The agricultural industry’s dependency on weather and seasons makes predicting customer requirements difficult, potentially leading to stock availability issues. Government Bodies Risk: Importing and exporting complexities post-Brexit require ongoing investment in training to ensure efficient trade. Additionally, the timing and eligibility of agricultural grants can impact sales, necessitating that products meet specific grant qualifications. In 2023 the late release of the FETF Grant scheme severely impacted Moore Unidrill Sales in Q1 and Q2, as many potential orders held back awaiting the grant release. Ultimately then, many of them then deferred their spend until 2024 as they had missed the 2023 planting dates.
Agri-Linc measures performance through several KPIs, including:
• Sales Targets: Monitored via daily, weekly, and monthly reports. • Customer Contacts: Targets for daily, weekly, and monthly interactions. • Customer Service: Aim to maintain picking, packing, and delivery errors below 0.5%. • Product Innovation: Target of twenty new or improved products per week. • Productivity: Target of a four times productivity factor by 2024. • Stock Turns: Aim to reduce stock days to ninety-two. • EBITDA: Target set at 12.97%. These KPIs guide the company towards efficiency and goal achievement, with continuous reviews ensuring their relevance.
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AGRI-LINC HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Despite the identified risks, the agricultural industry remains a vibrant and crucial sector, contributing £120 billion annually to the UK economy. The directors are confident in Agri-Linc’s ability to expand its market share and continue serving the global agricultural market through a diverse product range and a steadfast commitment to customer needs.
Agri-Linc Holdings Limited, through its strategic initiatives and strong business model, is well-positioned to thrive in the dynamic agricultural sector, continuing to uphold its legacy and drive future growth.
This report was approved by the board and signed on its behalf.
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AGRI-LINC HOLDINGS 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 Group strategic report, the Directors' report and the consolidated 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 Group'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 Group 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 the Group 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 the Group 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 £529,638 (2022: £1,427,737).
Dividends declared during the year totalled £580,800 (2022: £515,700).
The directors who served during the year were:
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 Group Strategic Report.
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AGRI-LINC HOLDINGS LIMITED
DIRECTORS' 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 HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AGRI-LINC HOLDINGS LIMITED
We have audited the financial statements of Agri-Linc Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Group's or the parent 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 HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AGRI-LINC HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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AGRI-LINC HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AGRI-LINC HOLDINGS 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 Auditors' 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 Group 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 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 charged 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 Auditors' report.
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AGRI-LINC HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF AGRI-LINC HOLDINGS 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 Auditors' 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.
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).
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AGRI-LINC HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
REGISTERED NUMBER: 10930310
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
REGISTERED NUMBER: 10930310
CONSOLIDATED BALANCE SHEET (CONTINUED)
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 19 to 41 form part of these financial statements.
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AGRI-LINC HOLDINGS LIMITED
REGISTERED NUMBER: 10930310
COMPANY BALANCE SHEET
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 19 to 41 form part of these financial statements.
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AGRI-LINC HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Agri-Linc Holdings Limited ("the Company") is a private company limited by shares, incorporated in England and Wales under the Companies Act.
The registered number and address of the registered office are given in the company information page. The functional and presentation currency of the Company is pounds sterling (£) and rounded to the nearest whole pound. The nature of the Company's operations and its principal activities are set out in the Strategic report on page 1.
2.Accounting policies
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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The Company, Agri-Linc Holdings Limited, with registered office Randalls Farm, Scottlethorpe Road, Edenham, Bourne, England, PE10 0LN, United Kingdom shall fully guarantee for all the liabilities of one subsidiary company:
Moore Unidrill Manufacturing Limited with registered office Randalls Farm, Scottlethorpe Road, Edenham, Bourne, England, PE10 0LN, United Kingdom, company number 12311695. The subsidiary Moore Unidrill Manufacturing Limited is therefore exempt from audit obligations in accordance with section 479A of the Companies Act.
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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.
Functional and presentation currency
Transactions and balances
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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 Group as the majority of new products are supplied with Original Equipment Manufacturer (OEM) warranty. The Group does manufacture and supply warranty on a minority proportion of new products, but historically the value of warranty claims on these products is of small value and therefore the provision is immaterial to the accounts. The sale of used machinery is sold and seen with no contractual warranty.
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.
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Goodwill
Other intangible assets
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:
At each reporting date the Group 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.
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis.
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.
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.
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.
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial 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 Group's Balance sheet when the Group 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 Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
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.
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies 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.
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 Group 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 Group 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 Group's contractual obligations expire or are discharged or cancelled.
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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.
The whole of the turnover is attributable to the principal activities of the Group.
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
12.Taxation (continued)
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
16.Tangible fixed assets (continued)
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Non-controlling interests
Profit and loss account
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Prior year adjustment 1 - Property
Agri-Linc Holdings Limited owns a property which it leases to one of its trading subsidiaries. The financial statements for the year ended 31 December 2022 incorrectly classified the property as an investment property. The property was shown on the balance sheet at cost of £1,044,977 with no valuation gains/losses recognised. As the property is leased by a trading subsidiary it should have been shown as a freehold property shown under the cost and depreciation model. The comparative to these financial statements for the year ended 31 December 2022 have been restated to reclassify the property from investment property to freehold property which is shown at cost of £1,044,977 less depreciation of £20,866. This is a restatement of both the consolidated balance sheet, company balance sheet and consolidated statement of comprehensive income. The effect of the restatement on the consolidated statement of comprehensive income is an increase in administrative expenses of £20,886 to reflect the depreciation charge. The effect of the restatement on the consolidated statement of comprehensive income is an increase in administrative expenses of £20,886 to reflect the depreciation charge. The effect on the consolidated balance sheet is a reduction in investment property from £1,044,977 to £nil, an increase in tangible fixed assets from £467,741 to £1,491,832 and a reduction in the retained earnings of the group from £3,181,633 to £3,160,747. The overall effect on the consolidated balance sheet is a reduction in net assets from £4,283,733 to £4,262,847. The effect of the restatement on the company balance sheet is an reduction in investment property from £1,044,977 to £nil, an increase in tangible fixed assets from £nil to £1,024,091 and a reduction in the retained earnings of the company and profit for the year ended 31 December 2022 of £20,886. The overall effect on the company balance sheet is a reduction in net assets from £460,115 to £439,229. Prior year adjustment 2 - Intercompany trade The financial statements for the year ended 31 December 2022 did not eliminate intercompany trade in the Consolidated Statement of Comprehensive Income. Intercompany sales in the year to 31 December 2022 were £1,035,354. The comparative to these financial statements has been restated to correctly net down both revenue and cost of sales by this amount. The adjustment has no effect on the profit for the year or the net assets as at 31 December 2022. Prior year adjustment 3 - Agency revenue 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.
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £6,757 (2022: £14,861).
Contributions totalling £2,701 (2022: £2,656) were payable to the fund at the reporting date and are included in other creditors.
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AGRI-LINC HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
In the opinion of the directors there is no ultimate controlling party.
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