REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MARCH 2024 |
FOR |
SB FARMS LTD |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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 | - | £ |
- 13th March 2024 |
Ordinary B £1 | - | £ |
- 13th March 2024 |
Ordinary C £1 | - | £ |
- 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 £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st April 2023 to the date of this report. |
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: |
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. |
for and on behalf of |
Chartered Certified Accountants |
and Registered Auditors (Statutory Auditor) |
Pembroke House |
Llantarnam Park Way |
Cwmbran |
Torfaen |
NP44 3AU |
SB FARMS LTD (REGISTERED NUMBER: 13184549) |
PROFIT AND LOSS |
FOR THE YEAR ENDED 31ST MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
407,053 | 1,969,933 |
Interest payable and similar expenses | 5 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 6 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
SB FARMS LTD (REGISTERED NUMBER: 13184549) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
SB FARMS LTD (REGISTERED NUMBER: 13184549) |
BALANCE SHEET |
31ST MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Stocks | 9 |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
12 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 14 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st March 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31st March 2024 |
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 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Finance costs paid | (340 | ) | (375 | ) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Capital repayments in year | ( |
) | ( |
) |
Amount introduced by directors | 244,704 | 1,214,200 |
Amount withdrawn by directors | (500,562 | ) | (2,822,594 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
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 |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Finance costs | 141,376 | 170,220 |
Finance income | (20,811 | ) | - |
647,747 | 2,198,745 |
Decrease in stocks |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations |
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 | 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 |
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 |
Plant and machinery | - |
Motor vehicles | - |
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 |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Employees | 9 | 13 |
Directors | 5 | 5 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
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 |
Hire purchase |
Corporation tax interest |
PAYE interest |
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 |
Tax refund | (173,790 | ) | - |
Total current tax | ( |
) |
Deferred tax | ( |
) |
Tax on profit | ( |
) |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) |
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 |
Ordinary B shares of £1 each |
Interim |
Ordinary C shares of £1 each |
Interim |
Ordinary D shares of £1 each |
Interim |
Preference shares of £1 each |
Interim |
8. | TANGIBLE FIXED ASSETS |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1st April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31st March 2024 |
DEPRECIATION |
At 1st April 2023 |
Charge for year |
At 31st March 2024 |
NET BOOK VALUE |
At 31st March 2024 |
At 31st March 2023 |
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 |
Additions |
At 31st March 2024 |
DEPRECIATION |
At 1st April 2023 |
Charge for year |
At 31st March 2024 |
NET BOOK VALUE |
At 31st March 2024 |
At 31st March 2023 |
9. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
VAT |
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) |
Trade creditors |
Corporation Tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | 6,146,419 | 6,402,277 |
Accrued expenses |
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) |
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 |
Between one and five years |
14. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 209,079 | 244,737 |
Deferred |
tax |
£ |
Balance at 1st April 2023 |
Provided during year | ( |
) |
Balance at 31st March 2024 |
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: | £ | £ |
Ordinary A | £1 | 30 | 30 |
Ordinary B | £1 | 30 | 30 |
Ordinary C | £1 | 20 | 20 |
Ordinary D | £1 | 20 | 20 |
Preference | £1 | 1,350,000 | 1,350,000 |
1,350,100 | 1,350,100 |
16. | RESERVES |
Retained |
earnings |
£ |
At 1st April 2023 |
Profit for the year |
Dividends | ( |
) |
At 31st March 2024 |
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 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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 |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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 |