Company Registration No. 08398688 (England and Wales)
Frome Livestock Auctioneers Limited
Unaudited financial statements
for the year ended 31 May 2024
Pages for filing with the registrar
Frome Livestock Auctioneers Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 11
Frome Livestock Auctioneers Limited
Balance sheet
As at 31 May 2024
1
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
5
2,088
1,217
Tangible assets
6
292,584
135,677
Investments
7
100
294,772
136,894
Current assets
Debtors
9
1,363,098
1,370,550
Cash at bank and in hand
292,590
303,434
1,655,688
1,673,984
Creditors: amounts falling due within one year
10
(1,138,175)
(1,009,942)
Net current assets
517,513
664,042
Total assets less current liabilities
812,285
800,936
Creditors: amounts falling due after more than one year
11
(702,729)
(758,689)
Provisions for liabilities
(73,007)
(33,920)
Net assets
36,549
8,327
Capital and reserves
Called up share capital
12
870
855
Share premium account
13
8,730
5,902
Capital redemption reserve
14
75
75
Profit and loss reserves
26,874
1,495
Total equity
36,549
8,327
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Frome Livestock Auctioneers Limited
Balance sheet (continued)
As at 31 May 2024
2
The financial statements were approved by the board of directors and authorised for issue on 26 February 2025 and are signed on its behalf by:
Martin Hemmett
Margaret Smith
Director
Director
Company Registration No. 08398688
Frome Livestock Auctioneers Limited
Notes to the financial statements
For the year ended 31 May 2024
3
1
Accounting policies
Company information
Frome Livestock Auctioneers Limited is a private company limited by shares incorporated in England and Wales. The registered office is Midland House, 2 Poole Road, Bournemouth, Dorset, BH2 5QY.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover comprises auctioneer commissions, other market site income and rent receivable net of VAT and trade discounts.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
25% straight line
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Frome Livestock Auctioneers Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
1
Accounting policies (continued)
4
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% straight line
Fixtures, fittings & equipment
25% straight line
Computer equipment
25% straight line
Motor vehicles
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Frome Livestock Auctioneers Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
1
Accounting policies (continued)
5
1.8
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from shareholders, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Frome Livestock Auctioneers Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
1
Accounting policies (continued)
6
1.11
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Frome Livestock Auctioneers Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
1
Accounting policies (continued)
7
1.14
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
35
30
4
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(5,533)
Deferred tax
Origination and reversal of timing differences
39,087
18,518
Tax losses carried forward
(55,354)
Total deferred tax
(16,267)
18,518
Total tax (credit)/charge
(16,267)
12,985
At the year end the company had losses of £221,416 (2023: £59,968) to carry forward against future profits of the company.
Frome Livestock Auctioneers Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
8
5
Intangible fixed assets
£
Cost
At 1 June 2023
9,078
Additions
1,539
At 31 May 2024
10,617
Amortisation and impairment
At 1 June 2023
7,861
Amortisation charged for the year
668
At 31 May 2024
8,529
Carrying amount
At 31 May 2024
2,088
At 31 May 2023
1,217
6
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 June 2023
389,417
Additions
201,032
At 31 May 2024
590,449
Depreciation and impairment
At 1 June 2023
253,740
Depreciation charged in the year
44,125
At 31 May 2024
297,865
Carrying amount
At 31 May 2024
292,584
At 31 May 2023
135,677
7
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
100
Frome Livestock Auctioneers Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
7
Fixed asset investments (continued)
9
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 June 2023
-
Additions
100
At 31 May 2024
100
Carrying amount
At 31 May 2024
100
At 31 May 2023
-
8
Subsidiaries
Details of the company's subsidiaries at 31 May 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Frome Market Cafe Limited
Agricultural Centre, Standerwick, Frome, Somerset, BA11 2QB
Ordinary
100
-
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,246,496
1,295,637
Other debtors
61,248
74,913
1,307,744
1,370,550
Deferred tax asset
55,354
1,363,098
1,370,550
Frome Livestock Auctioneers Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
10
10
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
803,574
780,207
Trade creditors
139,644
54,726
Amounts owed to group undertakings
100
Taxation and social security
38,307
37,351
Other creditors
156,550
137,658
1,138,175
1,009,942
11
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
37,334
51,333
Shareholder loans
665,395
707,356
702,729
758,689
The above shareholder loans are not wholly repayable within five years other than by instalments.
12
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
840 Ordinary A Shares of 50p each
420
420
840 Ordinary B Shares of 50p each
420
420
30 Ordinary C Shares of 50p each
30
15
870
855
All share classes rank pari passu with specific rights as set out in the Company's articles of association.
During the year the company issued 30 Ordinary C shares at £94.77 per share to an employee of the company.
13
Share premium account
The share premium reserve contains the premium arising from the issue of equity shares, net of issue costs.
14
Capital redemption reserve
The Capital redemption reserve arises from the purchase of own shares to maintain the capital of the company.
Frome Livestock Auctioneers Limited
Notes to the financial statements (continued)
For the year ended 31 May 2024
11
15
Operating lease commitments
Lessee
The company is currently negotiating the terms of the lease for the site.
The directors have identified that the company is exposed to financial uncertainty around the credit risk provided to its market clients and also its legal obligations regarding repair and maintenance expenditure of the leasehold property.
As such the Directors have segregated a proportion of the underlying cash held by the company to build up specific funds to manage these risks and ensure that the company can meet its future obligations as they arise. The level of cash it segregated for this purpose amounted to £156,403 (2023: £298,675) in the year.
16
Related party transactions
The shareholders, five of which are directors, have introduced loans into the company. At the start of the year they had a gross value of £707,356 (2023: £820,539). Funds of £nil were introduced during the year and the balance at the year-end was £665,395 (2023: £707,356). Repayments of £41,961 (2023: £113,182) were made during the year.
For the current year the company has paid a market rate of interest.
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