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REGISTERED NUMBER: 00605246 (England and Wales)















Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 May 2024

for

Bates Farms & Dairy Limited

Bates Farms & Dairy Limited (Registered number: 00605246)






Contents of the Financial Statements
for the Year Ended 31 May 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


Bates Farms & Dairy Limited

Company Information
for the Year Ended 31 May 2024







DIRECTORS: C Bates
S M Bates
C E Bates



REGISTERED OFFICE: 21 Stamford Road
Birkdale
Southport
Merseyside
PR8 4ES



REGISTERED NUMBER: 00605246 (England and Wales)



AUDITORS: Crossley & Davis
Chartered Accountants
Seneca House
Amy Johnson Way
Blackpool
Lancashire
FY4 2FF



ACCOUNTANTS: Topping & Company
Chartered Accountants
209, Liverpool Road
Birkdale
Southport
Merseyside
PR8 4PH

Bates Farms & Dairy Limited (Registered number: 00605246)

Strategic Report
for the Year Ended 31 May 2024

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

REVIEW OF BUSINESS
The accounting year ended 31 May 2024 has seen the Company continue to trade profitably within a highly competitive market.

The Company's turnover has been maintained at £25,854,629 (2023 - £26,226,461). The Company has not acquired additional rounds in the year under review. The Company's gross profit margin and ultimately the Company's profitability for the year ended 31 May 2024 have increased on the prior year. The company's gross profit margin has increased from 11.4.% (2023) to 18.6% (2024). The Company's profit for the year ended 31 May 2024 amounted to £1,369,756 (2023 £322,829).

The Directors are pleased with the results of the Company for the year and look forward to the following financial year with optimism.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties which the Company faces is the increased competition within the industry and the fluctuating cost of raw milk.

The Directors continue to monitor the economic conditions and their business strategies will be modified to reflect the changes in market conditions.

FINANCIAL KEY PERFORMANCE INDICATORS
The key Company performance indicators utilised by the Company are sales, profits and cash flows which are regularly monitored throughout the year by the Directors.

Revenue: Year ended 31 May 2024 £25,854,629 (2023 £26,226,461)

Operating profit: Year ended 31 May 2024 £1,851,913 (2023 £441,271)

Increase in cash and cash equivalents in the year ended 31 May 2024 amounted to £1,259,693 (2023 Decrease: £174,746) and are as given by the Company's cash flow statement on page 13, and related notes.

ON BEHALF OF THE BOARD:





C E Bates - Director


20 February 2025

Bates Farms & Dairy Limited (Registered number: 00605246)

Report of the Directors
for the Year Ended 31 May 2024

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the sale of milk and other related products.

DIVIDENDS
Interim dividends paid during the year ended 31 May 2024 were £308 on Ordinary shares of £1 each.

The directors recommend that no final dividend be paid on these shares.

Interim dividends paid during the year ended 31 May 2024 were £379,538 on Alphabet shares of £1 each.

The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 May 2024 will be £379,846.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

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

C Bates
S M Bates
C E Bates

POLITICAL DONATIONS AND EXPENDITURE
Charitable donations made by the company in the year ended 31 May 2024 collectively amounted to £1,010 (2023: £585).

DIRECTORS' RESPONSIBILITIES STATEMENT
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Bates Farms & Dairy Limited (Registered number: 00605246)

Report of the Directors
for the Year Ended 31 May 2024


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

ON BEHALF OF THE BOARD:





S M Bates - Director


20 February 2025

Report of the Independent Auditors to the Members of
Bates Farms & Dairy Limited

Opinion
We have audited the financial statements of Bates Farms & Dairy Limited (the 'company') for the year ended 31 May 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, 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 our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. As auditors we have assessed management's evaluation of the entity's ability to continue as a going concern. We have reviewed management's assessment of going concern and are satisfied with the conclusions arrived at.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this 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.

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.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Bates Farms & Dairy Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We gained an understanding of the legal and regulatory framework applicable to the group and the industry in which it operates, and considered the risk of acts by the group that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

Report of the Independent Auditors to the Members of
Bates Farms & Dairy Limited


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.




Mr P Swarbrick (Senior Statutory Auditor)
for and on behalf of Crossley & Davis
Chartered Accountants
Seneca House
Amy Johnson Way
Blackpool
Lancashire
FY4 2FF

20 February 2025

Bates Farms & Dairy Limited (Registered number: 00605246)

Income Statement
for the Year Ended 31 May 2024

31.5.24 31.5.23
Notes £    £   

TURNOVER 3 25,854,629 26,226,461

Cost of sales 21,043,675 23,226,126
GROSS PROFIT 4,810,954 3,000,335

Administrative expenses 2,972,814 2,574,064
1,838,140 426,271

Other operating income 13,773 15,000
OPERATING PROFIT 6 1,851,913 441,271

Interest receivable and similar income 22,940 3,327
1,874,853 444,598
Gain/loss on revaluation of investment
property

(40,341

)

-
PROFIT BEFORE TAXATION 1,834,512 444,598

Tax on profit 7 464,756 121,769
PROFIT FOR THE FINANCIAL YEAR 1,369,756 322,829

Bates Farms & Dairy Limited (Registered number: 00605246)

Other Comprehensive Income
for the Year Ended 31 May 2024

31.5.24 31.5.23
Notes £    £   

PROFIT FOR THE YEAR 1,369,756 322,829


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,369,756

322,829

Bates Farms & Dairy Limited (Registered number: 00605246)

Balance Sheet
31 May 2024

31.5.24 31.5.23
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 1,422,288 1,437,644
Investment property 12 345,000 385,341
1,767,288 1,822,985

CURRENT ASSETS
Stocks 13 105,375 97,126
Debtors 14 1,848,052 1,792,702
Cash at bank 2,152,137 892,444
4,105,564 2,782,272
CREDITORS
Amounts falling due within one year 15 2,393,819 2,109,475
NET CURRENT ASSETS 1,711,745 672,797
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,479,033

2,495,782

PROVISIONS FOR LIABILITIES 17 140,890 147,549
NET ASSETS 3,338,143 2,348,233

CAPITAL AND RESERVES
Called up share capital 18 867 867
Capital redemption reserve 19 433 433
Retained earnings 19 3,336,843 2,346,933
SHAREHOLDERS' FUNDS 3,338,143 2,348,233

The financial statements were approved by the Board of Directors and authorised for issue on 20 February 2025 and were signed on its behalf by:





C E Bates - Director


Bates Farms & Dairy Limited (Registered number: 00605246)

Statement of Changes in Equity
for the Year Ended 31 May 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 June 2022 867 2,424,104 433 2,425,404

Changes in equity
Dividends - (400,000 ) - (400,000 )
Total comprehensive income - 322,829 - 322,829
Balance at 31 May 2023 867 2,346,933 433 2,348,233

Changes in equity
Dividends - (379,846 ) - (379,846 )
Total comprehensive income - 1,369,756 - 1,369,756
Balance at 31 May 2024 867 3,336,843 433 3,338,143

Bates Farms & Dairy Limited (Registered number: 00605246)

Cash Flow Statement
for the Year Ended 31 May 2024

31.5.24 31.5.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,913,479 722,336
Tax paid (82,408 ) (89,874 )
Net cash from operating activities 1,831,071 632,462

Cash flows from investing activities
Purchase of tangible fixed assets (159,318 ) (465,573 )
Interest received 22,940 3,327
Net cash from investing activities (136,378 ) (462,246 )

Cash flows from financing activities
Amount introduced by directors 105,000 205,038
Amount withdrawn by directors (160,154 ) (150,000 )
Equity dividends paid (379,846 ) (400,000 )
Net cash from financing activities (435,000 ) (344,962 )

Increase/(decrease) in cash and cash equivalents 1,259,693 (174,746 )
Cash and cash equivalents at beginning of
year

2

892,444

1,067,190

Cash and cash equivalents at end of year 2 2,152,137 892,444

Bates Farms & Dairy Limited (Registered number: 00605246)

Notes to the Cash Flow Statement
for the Year Ended 31 May 2024

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

31.5.24 31.5.23
£    £   
Profit before taxation 1,834,512 444,598
Depreciation charges 174,674 184,961
Loss on revaluation of fixed assets 40,341 -
Finance income (22,940 ) (3,327 )
2,026,587 626,232
Increase in stocks (8,249 ) (13,053 )
Increase in trade and other debtors (55,350 ) (125,447 )
(Decrease)/increase in trade and other creditors (49,509 ) 234,604
Cash generated from operations 1,913,479 722,336

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 31 May 2024
31.5.24 1.6.23
£    £   
Cash and cash equivalents 2,152,137 892,444
Year ended 31 May 2023
31.5.23 1.6.22
£    £   
Cash and cash equivalents 892,444 1,067,190


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.23 Cash flow At 31.5.24
£    £    £   
Net cash
Cash at bank 892,444 1,259,693 2,152,137
892,444 1,259,693 2,152,137
Total 892,444 1,259,693 2,152,137

Bates Farms & Dairy Limited (Registered number: 00605246)

Notes to the Financial Statements
for the Year Ended 31 May 2024

1. STATUTORY INFORMATION

Bates Farms & Dairy Limited is a private limited company, incorporated and registered in England and Wales (registered number 00605246). The address of the registered office is 21, Stamford Road, Birkdale, Southport, Merseyside, PR8 4ES.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 ('FRS 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 except for the modification to a fair value basis for investment property.

The principle accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented, unless otherwise stated.

The company's functional and presentational currency is GBP.

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Income and revenue recognition
Turnover represents net invoiced sales of goods, excluding value added tax and trade discounts, derived from ordinary activities. The principal activity of the company in the year under review was that of the sale of milk and other related products. The company recognises revenue when the amount of revenue can be measured reliably and when it is probable that future economic benefits will flow to the company. The company has processes in place to ensure that the recognition of revenue streams is in the correct accounting period which is usually when the customer has signed for the delivery of the goods. Cash sales are recognised at the point of sale.

Other operating income is accounted for on a receivable basis.

Tangible fixed assets
All tangible fixed assets are initially recorded at cost. Cost includes all expenditure directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided at the following annual rates in order to write off the cost of each asset less its residual amount over its estimated useful life. A full years depreciation is charged on capitalised assets in the year of acquisition.

Buildings - at varying rates on cost (between 13 years and 44 years)
Plant and machinery - 10% on cost
Fixtures and fittings - 20% on cost
Motor vehicles - 20% on cost
Computer equipment - 33 1/3% on cost

Freehold land and buildings are not depreciated.

At each reporting date the carrying values of the company's tangible fixed assets are reviewed to determine whether there is an indication that an asset may be impaired (accounting policy: impairment of non-financial assets and financial assets).

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Bates Farms & Dairy Limited (Registered number: 00605246)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is calculated on a first in, first out basis and includes all costs of purchase consistently applied from year to year.

At each reporting date the carrying value of the company's stocks are reviewed to determine whether there is an indication that the carrying value of the company's stocks may be impaired (accounting policy: impairment of non-financial and financial assets).

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 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.

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.

Cash and cash equivalents
Cash is valued in the balance sheet at cost. For the purpose of the cash flow statement, cash and cash equivalents comprise cash on hand and is subject to insignificant risk of changes in value.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of businesses in 2010, 2012 and 2014, is amortised over its estimated useful life of four years on a straight line basis.

At each reporting date the carrying value of the company's goodwill is reviewed to determine whether there is an indication that the carrying value of the company's goodwill may be impaired (accounting policy: impairment of non-financial assets and financial assets).

Bates Farms & Dairy Limited (Registered number: 00605246)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
Financial instruments recognised in the balance sheet include cash, trade and other receivables and trade and other payables.

Debt instruments that are payable or receivable within one year are measured at the undiscounted amount of the cash expected to be paid or received.

Financial assets are derecognised when the rights to receive cash flows from the asset have expired. Provision is made when there is objective evidence that the company will not be able to collect certain debts. Bad debts are written off when identified. Financial liabilities are derecognised when the obligations under the liability is discharged, cancelled or expires.

Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Impairment of non-financial assets and financial assets
At each reporting date financial assets and non-financial assets not carried at fair value, like investment property and tangible fixed assets and goodwill, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss.

Stocks are also reviewed for impairment at each reporting date. The carrying value of each item of stock, or group of similar items, is compared with its selling price less costs to complete and sell. If an item of stock or group of similar items is impaired, its carrying amount is reduced to its selling price less costs to complete and sell, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of an asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

4. EMPLOYEES AND DIRECTORS
31.5.24 31.5.23
£    £   
Wages and salaries 3,654,126 3,487,460
Social security costs 349,637 347,093
Other pension costs 206,639 75,690
4,210,402 3,910,243

Bates Farms & Dairy Limited (Registered number: 00605246)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
31.5.24 31.5.23

Office staff 14 14
Dairy staff 22 20
Rounds persons staff 15 20
Mechanics staff 4 3
Depot staff 33 30
Van sales staff 30 30
118 117

5. DIRECTORS' EMOLUMENTS
31.5.24 31.5.23
£    £   
Directors' remuneration 152,054 147,150
Directors' pension contributions to money purchase schemes 77,213 1,313

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

6. OPERATING PROFIT

The operating profit is stated after charging:

31.5.24 31.5.23
£    £   
Depreciation - owned assets 174,674 184,960
Auditors' remuneration 10,000 9,325

In addition to auditors' remuneration payable by the company to the auditor in the year ended 31 May 2024 of £10,000 (2023: £9,325) further amounts were payable by the company to the auditor in the year ended 31 May 2024 for accountancy and tax advisory services collectively in the amount of £4,000 (2023: £3,000).

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.5.24 31.5.23
£    £   
Current tax:
UK corporation tax 471,415 82,408

Deferred tax (6,659 ) 39,361
Tax on profit 464,756 121,769

UK corporation tax was charged at 25%) in 2023.

Bates Farms & Dairy Limited (Registered number: 00605246)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

7. TAXATION - continued

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

31.5.24 31.5.23
£    £   
Profit before tax 1,834,512 444,598
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19.895%)

458,628

88,453

Effects of:
Capital allowances in excess of depreciation - (6,045 )
Depreciation in excess of capital allowances 12,787 -

Deferred taxation (6,659 ) 39,361
Total tax charge 464,756 121,769

UK Corporation Tax has been charged at 25% (FY23)/ 25% (FY23) (2023 - 25%)

8. DIVIDENDS
31.5.24 31.5.23
£    £   
Ordinary share of £1
Interim 308 308
Alphabet shares of £1 each
Interim 379,538 399,692
379,846 400,000

The following dividends were paid to the company's Alphabet shareholders in the year ended 31 May 2024 in respect of A Ordinary shares of £1 each: £NIL (2023: £NIL), B Ordinary shares of £1 each: £75,000 (2023: £74,942), C Ordinary shares of £1 each: £30,000 (2023: £55,154), D Ordinary shares of £1 each: £20,846 (2023: £24,923), E Ordinary shares of £1 each: £19,846 (2023: £19,846), F Ordinary shares of £1 each: £75,000 (2023: £74,942), G Ordinary shares of £1 each: £80,000 (2023: £75,000), H Ordinary shares of £1 each: £29,000 (2023: £24,923), J Ordinary shares of £1 each: £24,923 (2023:NIL) and K Ordinary shares of £1 each: £24,923 (2023:NIL).

9. JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of financial statements, in conformity with generally accepted accounting principles, requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the directors' best knowledge of current events and actions, actual results ultimately may differ from those estimates.

The directors do not consider there to be any estimates and assumptions in connection with the preparation of the Company's year ended 31 May 2024 financial statements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities at the balance sheet date of 31 May 2024.

Bates Farms & Dairy Limited (Registered number: 00605246)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

10. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 June 2023
and 31 May 2024 219,001
AMORTISATION
At 1 June 2023
and 31 May 2024 219,001
NET BOOK VALUE
At 31 May 2024 -
At 31 May 2023 -

11. TANGIBLE FIXED ASSETS
Fixtures
Land & Plant and and
buildings machinery fittings
£    £    £   
COST
At 1 June 2023 1,127,494 2,061,584 9,621
Additions - 79,998 2,964
At 31 May 2024 1,127,494 2,141,582 12,585
DEPRECIATION
At 1 June 2023 285,537 1,640,457 6,408
Charge for year 3,958 95,036 1,396
At 31 May 2024 289,495 1,735,493 7,804
NET BOOK VALUE
At 31 May 2024 837,999 406,089 4,781
At 31 May 2023 841,957 421,127 3,213

Bates Farms & Dairy Limited (Registered number: 00605246)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

11. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 June 2023 656,447 71,128 3,926,274
Additions 72,650 3,706 159,318
At 31 May 2024 729,097 74,834 4,085,592
DEPRECIATION
At 1 June 2023 513,057 43,171 2,488,630
Charge for year 50,450 23,834 174,674
At 31 May 2024 563,507 67,005 2,663,304
NET BOOK VALUE
At 31 May 2024 165,590 7,829 1,422,288
At 31 May 2023 143,390 27,957 1,437,644

The net book value of short leasehold land and buildings at 31 May 2024 amounted to £224,256 (2023: £224,256) and the net book value of freehold land and buildings at 31 May 2024 amounted to £999,084 (2023: £617,701).

Included in cost of land and buildings is freehold land of £613,743 (2023: £532,703) which is not depreciated. No depreciation has been charged in the year ended 31 May 2024 (2023: £NIL) against buildings because in the opinion of the directors there is no depreciable amount.

12. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 June 2023 385,341
Revaluations (40,341 )
At 31 May 2024 345,000
NET BOOK VALUE
At 31 May 2024 345,000
At 31 May 2023 385,341

The fair value of the Company's investment properties at 31 May 2024 and 31 May 2023 is the Directors' valuation based on desk top valuations..

Fair value at 31 May 2024 is represented by:
£   
Valuation in 2024 (40,341 )
Cost 385,341
345,000

Bates Farms & Dairy Limited (Registered number: 00605246)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

12. INVESTMENT PROPERTY - continued

If investment property had not been revalued they would have been included at the following historical cost:

31.5.24 31.5.23
£    £   
Cost 385,341 385,341

13. STOCKS
31.5.24 31.5.23
£    £   
Raw materials 38,250 61,506
Work-in-progress 67,125 35,620
105,375 97,126

The amount of stocks recognised as an expense during the year ended 31 May 2024 amounted to £17,040,121 (2023: £19,485,563). An impairment loss of £NIL for the year ended 31 May 2024 (2023: £NIL) was recognised in cost of sales against stocks during the year due to slow moving and obsolete stocks.

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.24 31.5.23
£    £   
Trade debtors 1,724,423 1,713,933
Bad Debt Provision (416 ) (32,364 )
Other debtors 13,665 16,919
Directors' current accounts 116 116
VAT 79,366 81,337
Prepayments and accrued income 30,898 12,761
1,848,052 1,792,702

The amount of bad and doubtful trade debtors recognised as an expense during the year ended 31 May 2024 amounted to £416 (2023:£32,364).

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.5.24 31.5.23
£    £   
Trade creditors 1,602,084 1,615,246
Tax 471,415 82,408
Social security and other taxes 73,399 108,696
Pension Control 3,645 -
Other creditors 7,563 -
Shareholders Loan Accounts 116 75,116
Directors' current accounts 1,293 56,447
Accrued expenses 234,304 171,562
2,393,819 2,109,475

Bates Farms & Dairy Limited (Registered number: 00605246)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

16. FINANCIAL INSTRUMENTS

2024 2023
£ £
Financial assets: Financial assets that are equity instruments measured at
cost less impairment

4,187,185


2,590,932

2024 2023
£ £
Financial liabilities: Financial liabilities measured at amortised cost 1,853,097 1,843,255

Financial assets measured at amortised cost comprise cash and cash equivalents and trade and other debtors.

Financial liabilities measured at amortised cost comprise trade and other creditors and accruals.

17. PROVISIONS FOR LIABILITIES
31.5.24 31.5.23
£    £   
Deferred tax 140,890 147,549

Deferred
tax
£   
Balance at 1 June 2023 147,549
Credit to Income Statement during year (6,659 )
Balance at 31 May 2024 140,890

The deferred tax liability is comprised solely of Accelerated Capital Allowances.

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.5.24 31.5.23
value: £    £   
1 Ordinary £1 1 1
866 Alphabet £1 866 866
867 867

At an Extraordinary General Meeting held on 10 May 2018 the shareholders unanimously resolved that 866 of the company's issued share capital of £1 Ordinary shares be reclassified into alphabet shares.

Alphabet shares of the company at 31 May 2024 and at 31 May 2023 comprised 135 A Ordinary shares of £1 each, 297 B Ordinary shares of £1 each, 281 C Ordinary shares of £1 each, 107 D Ordinary shares of £1 each, 43 E Ordinary shares of £1 each, 1 F Ordinary share of £1, 1 G Ordinary share of £1, 1 H Ordinary share of £1, 1 J Ordinary share of £1 and 1 K Ordinary share of £1..

Bates Farms & Dairy Limited (Registered number: 00605246)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2024

19. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 June 2023 2,346,933 433 2,347,366
Profit for the year 1,369,756 1,369,756
Dividends (379,846 ) (379,846 )
At 31 May 2024 3,336,843 433 3,337,276

20. PENSION COMMITMENTS

The pension charge in respect of the Company's year ended 31 May 2024 collectively amounted to £206,639 (2023:£75,690). Amounts receivable as at 31 May 2024 amounted to £2,087 (2023:£3,707).

21. RELATED PARTY DISCLOSURES

At 31 May 2024 the Company owed Company directors £1,178 (2023:£56,331). Also at the year end, the Company owed Shareholders of the Company £116 (2023:£75,116).



22. POST BALANCE SHEET EVENTS

Since the year end, Bates Farms & Dairy Limited has expanded operation by purchasing a further site in the Merseyside area.

23. ULTIMATE CONTROLLING PARTY

The Company is under the control of the directors.