REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 31 May 2024 |
for |
Bates Farms & Dairy Limited |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Seneca House |
Amy Johnson Way |
Blackpool |
Lancashire |
FY4 2FF |
ACCOUNTANTS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Chartered Accountants |
Seneca House |
Amy Johnson Way |
Blackpool |
Lancashire |
FY4 2FF |
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 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,838,140 | 426,271 |
Other operating income |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
1,874,853 | 444,598 |
Gain/loss on revaluation of investment property |
(40,341 |
) |
- |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
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 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
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 |
Investment property | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Capital redemption reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2024 |
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 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | 105,000 | 205,038 |
Amount withdrawn by directors | (160,154 | ) | (150,000 | ) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
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 |
Depreciation charges |
Loss on revaluation of fixed assets | 40,341 | - |
Finance income | (22,940 | ) | (3,327 | ) |
2,026,587 | 626,232 |
Increase 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 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 | 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 |
Social security costs |
Other pension costs |
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 |
5. | DIRECTORS' EMOLUMENTS |
31.5.24 | 31.5.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.5.24 | 31.5.23 |
£ | £ |
Depreciation - owned assets |
Auditors' remuneration |
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 |
Deferred tax | ( |
) |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
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 |
Alphabet shares of £1 each |
Interim |
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 |
AMORTISATION |
At 1 June 2023 |
and 31 May 2024 |
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 |
Additions |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
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 |
Additions |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
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 |
Revaluations | (40,341 | ) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
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 |
Work-in-progress |
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 |
Bad Debt Provision | (416 | ) | (32,364 | ) |
Other debtors |
Directors' current accounts | 116 | 116 |
VAT |
Prepayments and accrued income |
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 |
Tax |
Social security and other taxes |
Pension Control | 3,645 | - |
Other creditors |
Shareholders Loan Accounts | 116 | 75,116 |
Directors' current accounts | 1,293 | 56,447 |
Accrued expenses |
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 |
Credit to Income Statement during year | ( |
) |
Balance at 31 May 2024 |
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: | £ | £ |
Ordinary | £1 | 1 | 1 |
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 | 2,347,366 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 May 2024 | 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 |