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REGISTERED NUMBER: 13184549 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST MARCH 2024

FOR

SB FARMS LTD

SB FARMS LTD (REGISTERED NUMBER: 13184549)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Profit and Loss 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 17


SB FARMS LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST MARCH 2024







DIRECTORS: R J L George
M W I George
J E George
J W C George
C M P George





REGISTERED OFFICE: Pembroke House
Llantarnam Park Way
Cwmbran
Torfaen
NP44 3AU





BUSINESS ADDRESS: Brynhyfryd
Wolfscastle
Haverfordwest
SA62 5DT





REGISTERED NUMBER: 13184549 (England and Wales)





AUDITORS: Green & Co
Chartered Certified Accountants
and Registered Auditors (Statutory Auditor)
Pembroke House
Llantarnam Park Way
Cwmbran
Torfaen
NP44 3AU

SB FARMS LTD (REGISTERED NUMBER: 13184549)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST MARCH 2024

The directors present their strategic report for the year ended 31st March 2024.

REVIEW OF BUSINESS
The company was incorporated on 08/02/2021.

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and nature of our business and written in the context of the risks and uncertainties we face.

Turnover for the year decreased by 12.57% to £11,993,789, compared with £13,718,175 in 2023.

Cost of sales increased by £462,262 from £8,117,824 in 2023 to £8,580,086 in 2024, which after accounting for the movement in stock resulted in a gross profit for the year of £3,009,343. The gross profit represents 25.09% of turnover.

Considering other income, expenditure and finance costs, the company made a net profit for the year before taxation of £265,677, compared with a net profit of £1,799,713 in 2023

The cash balance has increased from £1,177,174 in 2023 to £1,290,347 in 2024.

The performance in 2024 was encouraging but the results clearly reflect the adverse fluctuation in milk price when compared to the previous year.

PRINCIPAL RISKS AND UNCERTAINTIES
The risks and challenges faced by the business include the following:

- Adverse movement in the milk price.

- The risk of the milk buyer going out of business.

- Difficulties in sourcing labour and the cost of that labour.

- Government environmental policy, particularly the introduction of the Sustainable Farming Scheme in Wales and the impact of continued compliance with NVZ (Nitrate Vulnerable Zones) regulations.

- Increase in interest rates and the impact on borrowing costs.

- The impact of external events on the business, for example we have seen how the war in Ukraine led to a substantial increase in input costs.

- Extreme weather could pose a challenge to the business's ability to grow and harvest crops.

FUTURE EXPECTATIONS
The purchase of Spittle Cross Farm will facilitate expansion in herd size by 600 cows, the business has also had the opportunity to rent additional ground associated with the holding. The business is currently rearing more replacements than it requires, by reducing herd depreciation rates on both holdings the business should be able to expand with home-bred replacements minimising the number of animals that will have to be purchased to stock the unit. Expansion in cow numbers even though the business has had to purchase the unit will help to dilute the overhead and fixed costs of the overall business.


SB FARMS LTD (REGISTERED NUMBER: 13184549)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST MARCH 2024

KEY PERFORMANCE INDICATORS
The directors review and monitor all aspects of the business but consider that turnover, gross profit and gross profit percentage are key performance indications for the business.

KPI 2024 2023

Turnover £11,993,789 £13,718,175
Gross Profit £3,009,343 £4,364,271
Gross Profit % 25.09% 31.81%

ON BEHALF OF THE BOARD:





M W I George - Director


31st January 2025

SB FARMS LTD (REGISTERED NUMBER: 13184549)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST MARCH 2024

The directors present their report with the financial statements of the company for the year ended 31st March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of mixed farming

DIVIDENDS
Interim dividends per share were paid during the year as follows:
Ordinary A £1 - £66.66666 - 13th March 2024
Ordinary B £1 - £66.66666 - 13th March 2024
Ordinary C £1 - £100 - 13th March 2024
Ordinary D £1 - £100 - 13th March 2024
Preference £1 - £0.03 - 13th March 2024

The total distribution of dividends for the year ended 31st March 2024 will be £ 48,500 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1st April 2023 to the date of this report.

R J L George
M W I George
J E George
J W C George
C M P George

FINANCIAL INSTRUMENTS
The company's financial instruments comprise of bank balances, trade debtors, trade creditors, hire purchase and directors loans.

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The
company's approach to managing other risks applicable to the financial statements concerned is shown
below:

In respect of bank balances, liquidity is managed by maintaining sufficient cash balances.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

POLITICAL DONATIONS AND EXPENDITURE
During the year the company paid £2,625 in charitable donations, made up of the following:

£155 - North Pembrokeshire Farmers Club
£500 - Wolfscastle Festival Week
£200 - Wales Air Ambulance
£150 - Paul Sartori Foundation
£140 - North Pembrokeshire Grassland Society
£1,480 - All Wales Ploughing Association


SB FARMS LTD (REGISTERED NUMBER: 13184549)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST MARCH 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Green & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





M W I George - Director


31st January 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SB FARMS LTD

Disclaimer of Opinion

We were engaged to audit the financial statements of SB Farms Ltd (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Balance Sheet, Other Comprehensive Income, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice) in conformity with the requirements of the Companies Act 2006.

We do not express an opinion on the accompanying financial statements of the company. Because of the significance of the matters described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.

Basis for disclaimer of opinion
We were not appointed as auditors of the company until after 31 March 2023 and thus were not able to obtain a professional valuation of stock at 31 March 2023 and are unable to satisfy ourselves by alternative means concerning the quantity and value of opening stock held at 31 March 2023, which are included in the balance sheet at £8,274,270, by using other audit procedures. In addition, the purchases and sales of feed, forage, and other costs relating to the herd with a related party are based on budgeted amounts, the total amounts for these included in the profit and loss accounts are purchases of £3,695,866 and sales of £1,206,350. The net effect on the directors loan account is £320,394. We were unable to obtain sufficient appropriate audit evidence to determine the accuracy of the quantities and values of these transactions. As a result, we are unable to determine whether any adjustments might be necessary to these amounts, the opening stock and the elements making up the income statement, other comprehensive income, balance sheet and the cash flow statement.

Key audit matters
Except for the matters described in the basis for disclaimer of opinion section, we have determined that there are no key audit matters to be communicated in our report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Opinions on other matters prescribed by the Companies Act 2006
Because of the significance of the matters described in the basis for disclaimer of opinion section of our report, we have been unable to form an opinion, whether based on the work undertaken in the course of the audit:
*the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent the financial statements; and
*the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SB FARMS LTD


Matters on which we are required to report by exception

Notwithstanding our disclaimer of an opinion on the financial statements, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit performed subject to the pervasive limitations described above, we have not identified material misstatements in the strategic report or the directors' report.
Arising from the limitation of our work referred to above:
* we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
*we were unable to determine whether adequate accounting records have been kept.
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:
*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
*the directors are not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the directors' report and from thar requirement to prepare a strategic report.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SB FARMS LTD


Auditors' responsibilities for the audit of the financial statements
Our responsibility is to conduct an audit of the company's financial statements in accordance with International Standards on Auditing (UK) and to issue and auditor's report.
However, because of the matters described in the basis for disclaimer of opinion sections of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Auditors Responsibilities For Detecting irregularities
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk or irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

* Enquiry of management and those charged with governance around actual and potential litigation and claims as actual , suspected and alleged fraud;
* Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
* Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
* Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates or indicators of potential bias.

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 Report of the Auditors.

Other matters which we are required to address
The comparative figures for the financial year are unaudited as the company was exempt from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2023.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SB FARMS LTD


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 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 a Report of the Auditors 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.




Edwin Gooderham (Senior Statutory Auditor)
for and on behalf of Green & Co
Chartered Certified Accountants
and Registered Auditors (Statutory Auditor)
Pembroke House
Llantarnam Park Way
Cwmbran
Torfaen
NP44 3AU

31st January 2025

SB FARMS LTD (REGISTERED NUMBER: 13184549)

PROFIT AND LOSS
FOR THE YEAR ENDED 31ST MARCH 2024

2024 2023
Notes £    £   

TURNOVER 11,993,789 13,718,175

Cost of sales (8,984,446 ) (9,353,904 )
GROSS PROFIT 3,009,343 4,364,271

Administrative expenses (2,623,101 ) (2,394,338 )
OPERATING PROFIT 4 386,242 1,969,933

Interest receivable and similar income 20,811 -
407,053 1,969,933

Interest payable and similar expenses 5 (141,376 ) (170,220 )
PROFIT BEFORE TAXATION 265,677 1,799,713

Tax on profit 6 209,449 (286,047 )
PROFIT FOR THE FINANCIAL
YEAR

475,126

1,513,666

SB FARMS LTD (REGISTERED NUMBER: 13184549)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31ST MARCH 2024

2024 2023
Notes £    £   

PROFIT FOR THE YEAR 475,126 1,513,666


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR

475,126

1,513,666

SB FARMS LTD (REGISTERED NUMBER: 13184549)

BALANCE SHEET
31ST MARCH 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 1,486,864 1,289,592

CURRENT ASSETS
Stocks 9 7,869,910 8,274,270
Debtors 10 1,108,224 983,385
Cash at bank 1,290,347 1,177,174
10,268,481 10,434,829
CREDITORS
Amounts falling due within one year 11 7,335,394 7,735,607
NET CURRENT ASSETS 2,933,087 2,699,222
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,419,951

3,988,814

CREDITORS
Amounts falling due after more than one
year

12

(309,785

)

(269,616

)

PROVISIONS FOR LIABILITIES 14 (209,079 ) (244,737 )
NET ASSETS 3,901,087 3,474,461

CAPITAL AND RESERVES
Called up share capital 15 1,350,100 1,350,100
Retained earnings 16 2,550,987 2,124,361
SHAREHOLDERS' FUNDS 3,901,087 3,474,461

The financial statements were approved by the Board of Directors and authorised for issue on 31st January 2025 and were signed on its behalf by:





M W I George - Director


SB FARMS LTD (REGISTERED NUMBER: 13184549)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST MARCH 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1st April 2022 1,350,100 659,195 2,009,295

Changes in equity
Dividends - (48,500 ) (48,500 )
Total comprehensive income - 1,513,666 1,513,666
Balance at 31st March 2023 1,350,100 2,124,361 3,474,461

Changes in equity
Dividends - (48,500 ) (48,500 )
Total comprehensive income - 475,126 475,126
Balance at 31st March 2024 1,350,100 2,550,987 3,901,087

SB FARMS LTD (REGISTERED NUMBER: 13184549)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 836,815 3,535,542
Interest paid (128,046 ) (160,213 )
Interest element of hire purchase
payments paid

(12,990

)

(9,632

)
Finance costs paid (340 ) (375 )
Tax paid 42,865 (42,490 )
Net cash from operating activities 738,304 3,322,832

Cash flows from investing activities
Purchase of tangible fixed assets (503,777 ) (1,067,783 )
Sale of tangible fixed assets 45,000 21,036
Interest received 20,811 -
Net cash from investing activities (437,966 ) (1,046,747 )

Cash flows from financing activities
New loans in year 301,090 368,472
Capital repayments in year (183,897 ) (85,118 )
Amount introduced by directors 244,704 1,214,200
Amount withdrawn by directors (500,562 ) (2,822,594 )
Equity dividends paid (48,500 ) (48,500 )
Net cash from financing activities (187,165 ) (1,373,540 )

Increase in cash and cash equivalents 113,173 902,545
Cash and cash equivalents at
beginning of year

2

1,177,174

274,629

Cash and cash equivalents at end of
year

2

1,290,347

1,177,174

SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
Profit before taxation 265,677 1,799,713
Depreciation charges 261,505 232,190
Profit on disposal of fixed assets - (3,378 )
Finance costs 141,376 170,220
Finance income (20,811 ) -
647,747 2,198,745
Decrease in stocks 404,360 1,236,080
Increase in trade and other debtors (124,839 ) (114,912 )
(Decrease)/increase in trade and other creditors (90,453 ) 215,629
Cash generated from operations 836,815 3,535,542

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st March 2024
31.3.24 1.4.23
£    £   
Cash and cash equivalents 1,290,347 1,177,174
Year ended 31st March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 1,177,174 274,629


SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST MARCH 2024

3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.23 Cash flow At 31.3.24
£    £    £   
Net cash
Cash at bank 1,177,174 113,173 1,290,347
1,177,174 113,173 1,290,347
Debt
Finance leases (387,221 ) (117,192 ) (504,413 )
(387,221 ) (117,192 ) (504,413 )
Total 789,953 (4,019 ) 785,934

SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST MARCH 2024

1. STATUTORY INFORMATION

SB Farms Ltd is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
The application of the company's accounting policies, the management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Sale of goods

Turnover from the sale of goods is recognised when the following conditions have been met:

- the risks and rewards of ownerships have been transferred to the buyer
- it is reasonably certain that the consideration due in respect of the sale will be received
- the amount of turnover and associated costs can be reliably measured

Contracts

Turnover derived from contracts for goods or services is recognised in the period in which the contractual obligations are satisfied and the following conditions met:

- the stage of completion of the contract can be reliably measured
- it is reasonably certain that the consideration due will be received
- the amount of turnover and associated costs can be reliably measured

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 15% on reducing balance
Motor vehicles - 15% on reducing balance

SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

2. ACCOUNTING POLICIES - continued

Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Grants that specify performance conditions are recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability. A grant that relates to the purchased of a fixed asset is recognised in income over the same period in which the asset is depreciated.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for
obsolete and slow moving items.

The net realisable value represents the estimated selling costs less the associated costs to sell and is based on a professional valuation carried out by an independent and suitably qualified valuer.

SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

Financial instruments are classified and accounted for, according to the substance of the contractual
arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is
any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

(i) Financial assets and liabilities
All financial assets and liabilities are initially measured at transaction price (including transaction costs),except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the company intends either to settle on net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

Commitments to make and receive loans which meet the conditions mentioned above are measured at
costs (which may be nil) less impairment.

Financial assets are derecognised when and only when a) the contractual rights to the cash flows from the financial asset expire or are settled, b) the company transfers to another party substantially all of the risk and rewards of ownership of the financial asset, or c) the company, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged,
cancelled or expires.

(ii) Equity instruments
Equity instruments issued by the company are recorded at the fair value of cash or other resources
received or receivable, net of direct issue costs.


SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

2. ACCOUNTING POLICIES - continued

Impairement of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the
asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash flows that are largely independent of the cash flows from other assets or groups of assets.

3. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 240,147 546,684
Social security costs 16,489 15,730
Other pension costs 2,912 1,901
259,548 564,315

The average number of employees during the year was as follows:
2024 2023

Employees 9 13
Directors 5 5
14 18

2024 2023
£    £   
Directors' remuneration - -

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Other operating leases 60,000 -
Depreciation - owned assets 145,254 149,109
Depreciation - assets on hire purchase contracts 116,251 83,080
Profit on disposal of fixed assets - (3,378 )
Auditors' remuneration 18,000 -

SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Directors' loan interest 128,046 160,213
Hire purchase 12,990 9,632
Corporation tax interest - 375
PAYE interest 340 -
141,376 170,220

6. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax - 130,925
Tax refund (173,790 ) -
Total current tax (173,790 ) 130,925

Deferred tax (35,659 ) 155,122
Tax on profit (209,449 ) 286,047

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 265,677 1,799,713
Profit multiplied by the standard rate of corporation tax in the UK
of 25% (2023 - 19%)

66,419

341,945

Effects of:
Expenses not deductible for tax purposes 741 3,997
Income not taxable for tax purposes - (642 )
Capital allowances in excess of depreciation (49,341 ) (214,375 )
Utilisation of tax losses (17,819 ) -
Deferred tax (35,659 ) 155,122
Tax refund - R&D claim (173,790 ) -

Total tax (credit)/charge (209,449 ) 286,047

SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

7. DIVIDENDS
2024 2023
£    £   
Ordinary A shares of £1 each
Interim 2,000 2,000
Ordinary B shares of £1 each
Interim 2,000 2,000
Ordinary C shares of £1 each
Interim 2,000 2,000
Ordinary D shares of £1 each
Interim 2,000 2,000
Preference shares of £1 each
Interim 40,500 40,500
48,500 48,500

8. TANGIBLE FIXED ASSETS
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1st April 2023 1,555,732 1,600 1,557,332
Additions 503,777 - 503,777
Disposals (45,000 ) - (45,000 )
At 31st March 2024 2,014,509 1,600 2,016,109
DEPRECIATION
At 1st April 2023 267,500 240 267,740
Charge for year 261,301 204 261,505
At 31st March 2024 528,801 444 529,245
NET BOOK VALUE
At 31st March 2024 1,485,708 1,156 1,486,864
At 31st March 2023 1,288,232 1,360 1,289,592

SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

8. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and
machinery
£   
COST
At 1st April 2023 570,217
Additions 315,000
At 31st March 2024 885,217
DEPRECIATION
At 1st April 2023 110,209
Charge for year 116,251
At 31st March 2024 226,460
NET BOOK VALUE
At 31st March 2024 658,757
At 31st March 2023 460,008

9. STOCKS
2024 2023
£    £   
Stocks 7,869,910 8,274,270

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 1,040,494 930,664
Other debtors 2,000 9,847
VAT 65,730 42,874
1,108,224 983,385

SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 13) 194,628 117,605
Trade creditors 674,495 691,716
Corporation Tax - 130,925
Social security and other taxes 8,319 -
Other creditors 156,487 224,301
Directors' current accounts 6,146,419 6,402,277
Accrued expenses 155,046 168,783
7,335,394 7,735,607

The hire purchase agreements are secured on the assets to which they relate.

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 13) 309,785 269,616

The hire purchase agreements are secured on the assets to which they relate.

13. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2024 2023
£    £   
Net obligations repayable:
Within one year 194,628 117,605
Between one and five years 309,785 269,616
504,413 387,221

14. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 209,079 244,737

Deferred
tax
£   
Balance at 1st April 2023 244,737
Provided during year (35,658 )
Balance at 31st March 2024 209,079

SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
30 Ordinary A £1 30 30
30 Ordinary B £1 30 30
20 Ordinary C £1 20 20
20 Ordinary D £1 20 20
1,350,000 Preference £1 1,350,000 1,350,000
1,350,100 1,350,100

16. RESERVES
Retained
earnings
£   

At 1st April 2023 2,124,361
Profit for the year 475,126
Dividends (48,500 )
At 31st March 2024 2,550,987

17. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31st March 2024 and 31st March 2023:

2024 2023
£    £   
R J L George
Balance outstanding at start of year 44,068 14,564
Amounts advanced 40,733 80,500
Amounts repaid (73,209 ) (50,996 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 11,592 44,068

M W I George
Balance outstanding at start of year 1,601,737 2,005,511
Amounts advanced 53,105 283,425
Amounts repaid (104,259 ) (687,199 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 1,550,583 1,601,737

SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

17. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued

J W C George
Balance outstanding at start of year 1,576,482 1,992,755
Amounts advanced 48,884 283,425
Amounts repaid (112,594 ) (699,698 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 1,512,772 1,576,482

C M P George
Balance outstanding at start of year 1,575,832 1,992,330
Amounts advanced 48,877 283,425
Amounts repaid (112,644 ) (699,923 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 1,512,065 1,575,832

J E George
Balance outstanding at start of year 1,604,158 2,005,511
Amounts advanced 53,105 283,425
Amounts repaid (97,856 ) (684,778 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 1,559,407 1,604,158

18. RELATED PARTY DISCLOSURES

The company had the following outstanding directors loans at the year end:
- R J L George was owed £11,591 (2023 - £44,067)
- M W I George was owed £1,550,583 (2023 - £1,601,737)
- J W C George was owed £1,512,772 (2023 - £1,576,482)
- C M P George was owed £1,512,066 (2023 - £1,575,832)
- J E George was owed £1,559,407 (2023 - £1,604,158)
Interest of 2% was charged on the opening balance.

During the year the company entered in to the following transactions with J W C George and Sons, a partnership controlled by the directors.
- Feed amounting to £1,719,256 (2023 - £1,786,347) was purchased from the partnership
- Red diesel amounting to £134,610 (2023 - £175,950) was purchased from the partnership
- A hire charge of £60,000 (2023 - £Nil) was paid to the partnership for the use of dairy buildings and equipment owned by the partnership
- Cattle sales amounting to £376,950 (2023 - £833,442) were made to the partnership
- Cattle purchases amounting to £1,842,000 (2023 - £Nil) were made from the partnership
- Feed costs totalling £648,000 (2023 - £Nil) were recharged to the partnership
- Veterinary and medicine costs totalling £60,000 (2023 - £Nil) were recharged to the partnership
- Bedding costs totalling £80,000 (2023 - £Nil) were recharged to the partnership
- AI costs totalling £41,400 (2023 - £Nil) were recharged to the partnership

SB FARMS LTD (REGISTERED NUMBER: 13184549)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST MARCH 2024

19. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are the directors M W I and J E George who between them own over half of the Ordinary Share Capital