REGISTERED NUMBER: 03945957 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 May 2024 |
for |
Farmers First Limited |
REGISTERED NUMBER: 03945957 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 May 2024 |
for |
Farmers First Limited |
Farmers First Limited (Registered number: 03945957) |
Contents of the Consolidated Financial Statements |
for the year ended 30 May 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Directors | 4 | to | 7 |
Report of the Independent Auditors | 8 | to | 11 |
Consolidated Statement of Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 | to | 19 |
Notes to the Consolidated Financial Statements | 20 | to | 35 |
Farmers First Limited |
Company Information |
for the year ended 30 May 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants & |
Statutory Auditors |
Pacioli House |
9 Brookfield |
Duncan Close |
Northampton |
Northamptonshire |
NN3 6WL |
Farmers First Limited (Registered number: 03945957) |
Group Strategic Report |
for the year ended 30 May 2024 |
The directors present their strategic report of the company and the group for the year ended 30 May 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the period under review was the operation of abattoirs and the promotion of lamb products. |
REVIEW OF BUSINESS |
The results for the period are set out below: |
Turnover | Trading Results |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Farmers Fresh Limited | 92,144,366 | 91,724,835 | 604,764 | 5,905,780 |
Farmers Fresh (Wales) Limited | 49,575,425 | 45,644,464 | 47,880 | (75,954) |
Farmer First Limited | 264,962 | 208,822 | 181,902 | 125,510 |
Consolidation adjustment | (264,962) | (208,822) | (202,724) | (139,970) |
TOTAL FOR THE GROUP | 141,719,791 | 137,369,299 | 631,822 | 5,815,366 |
Goodwill amortisation | - | (970,521) |
TOTAL PROFIT BEFORE TAXATION FOR THE GROUP | 631,822 | 4,844,845 |
Corporation tax | (81,114) | (1,144,064) |
Deferred tax | (30,195) | (56,495) |
TOTAL POST TAX PROFITS FOR THE GROUP | 520,513 | 3,644,286 |
The directors monitor the performance of the business by reviewing the results of the activities and benchmarking them against similar enterprises. |
The group's continuing activity as a lamb abattoir resulted in sales in excess of 912,788 units (2023: 990,658) of meat at a margin of approximately 14.27% (2023: 17.67%). |
The directors are pleased to report a profit before taxation in what has been an uncertain trading period. |
Farmers First Limited (Registered number: 03945957) |
Group Strategic Report |
for the year ended 30 May 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Exposure to foreign currency, credit, liquidity, interest rate and other price risk arises in the normal course of the groups business. These risks are limited by the group's financial management policies described below. |
Foreign currency risk |
The group is exposed to foreign currency risk due to its level of sales to European customers. The risk is limited by selling euros as and when the exchange rate favours the group and by the use of forward contracts. |
Credit risk |
The group has implemented policies that require appropriate credit checks on potential customers before sales are made. The debtors ledger is reviewed on an on-going basis to identify unpaid amounts with overdue debts being chased on a regular basis. Provisions for bad debts are made where appropriate and funds are set-aside to cover cashflow shortages from bad debts. |
Liquidity risk |
The directors have ultimate responsibility for liquidity risk management in maintaining adequate reserves, banking and borrowing facilities. Active management of the cash position is undertaken with future cash flows being reviewed to ensure that significant liquid resources are available. |
Interest rate risk |
With the acquisition of the abattoir in Wales, the group has increased its exposure to interest rate risk through the impact of rate changes in interest bearing borrowings. Active management of the group's exposure to interest rate fluctuations is undertaken by managing the borrowings on a group wide basis. |
Other price risk |
The group is exposed to live stock price risks through changes in commodity prices world wide. Active management of the group's exposure to this is undertaken on a daily basis with reference to the Standard Quality Quotation lamb prices via the Livestock Auctioneers Association. |
SECTION 172(1) STATEMENT |
The group operates in a complex and interconnected commercial and regulatory environment which impacts and touches many different stakeholders. By understanding and engaging with stakeholders the group can consider their interests and priorities when making key decisions and ensure that the business works constructively with them to promote the success of the group. Details of how the group engages with its key stakeholders are included in the Directors' Report. |
ON BEHALF OF THE BOARD: |
Farmers First Limited (Registered number: 03945957) |
Report of the Directors |
for the year ended 30 May 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 May 2024. |
DIVIDENDS |
The dividend approved at the last AGM of £0.15 was unpaid as at the year end. The total balance of outstanding and uncashed dividends as at the year end is £276,406 (2023: £193,948). No dividend has been proposed for approval at the current year Annual General Meeting. |
FUTURE DEVELOPMENTS |
We have considered the continuing impact of Brexit and the war in the Ukraine on the operation of the group's business as a whole. Like all businesses, we anticipate that there will continue to be some short term disruption to the supply of goods in to and out of the United Kingdom from Brexit, and it is likely that there will be some fluctuations in currency that will impact on the cost of those goods, in particular our lamb exports. The war in Ukraine has contributed to fluctuating fuel and energy costs, both during the year and post year end. |
Despite a deal being reached ensuring tariff free and frictionless trade, we continue to see disruption from the additional regulations being implemented, particularly in terms of export paperwork. |
The past few years has seen the business take part in trade missions to non-European markets and we have started to export outside the European Union. |
The strategy to find new markets will continue. Regardless of the final impact of Brexit, we believe we are well placed to deal with a drop in demand for lamb from Europe. Should it become necessary, we can also minimise the use of subcontractors in line with falling demand, reducing our variable costs to ensure that we continue to run profitably. |
The uncertainties and increases in future costs arising as a result of inflation have been considered by the directors when assessing going concern as at the date of signing. With lamb prices at all time highs at the year end, it was pleasing to see lamb prices start reducing post year end. |
Large fluctuations in the exchange rate with the Dollar and Euro post year end are mitigated, where possible, by the methods disclosed within the 'Principal Risks and Uncertainties' section of the strategic report. |
In summary, we are confident that the business will continue for the foreseeable future, but in these uncertain times it is difficult to predict the size of the business in 2025. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 31 May 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
Farmers First Limited (Registered number: 03945957) |
Report of the Directors |
for the year ended 30 May 2024 |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The group believes that engagement with its stakeholders has an important role to play in achieving its strategy, helping it to be a responsible business and delivering long-term sustainable growth. |
How the group engages with its key stakeholders is set out below. |
Shareholders |
The continued involvement and communication with shareholders is considered fundamental to the group's objectives. Communication through newsletters and the AGM is essential to ensuring shareholders remain informed and empowered to support the business. In turn the group has rewarded that support through dividend distributions. |
Customers |
The group continues to strive to achieve its overriding aim of building and maintaining good customer relationships, a key ingredient of which is regular dialogue. These relationships culminate in long term arrangements, ensuring continuity and helping the business plan and deliver in the long term. |
Workforce |
The group has an experienced and dedicated workforce and has a responsibility to ensure that all employees work in a safe environment and have opportunities to learn and develop. Opportunities are presented to employees to further develop their expertise through training programmes including, but not limited to, slaughtering licences and animal welfare handling certification. |
The group is an equal opportunities employer and has a formal whistleblowing policy in place to allow employees to raise any concerns or issues they have confidentially. |
Farmers and Markets |
The group places great emphasis on its relationship with its suppliers and, wherever possible, looks to support farmers nationwide who provide it with sheep. It helps to achieve this by ensuring a percentage of sheep purchases are made directly with farmers on a deadweight basis as opposed to being dependent on markets for supplies. This gives a better understanding of issues which may occur in the supply chain and allows the business to provide direct support to the farmers. The group also aims to adhere to prompt payment terms for both farmers and markets. |
Community and environment |
As well as considering the impact on its supply chain, the group considers the impact it has in the areas it operates, including local businesses, residents and charities. The group makes charitable contributions to charities associated with the industry. |
The group takes environmental matters very seriously. It is committed to continuing efforts to reduce its carbon footprint by participating in an ongoing programme to become even more efficient in its energy usage, including through the use of energy saving plant such as solar panels and a biomass boiler. |
Government and society |
The group believes in the importance of acting responsibly and operating with high standards of food safety, through its continued adherence to the regulations of the BRC Global Standard for Food Safety, the Halal Regulatory Commission and the Food Standard Agency. |
Banks |
The group's bankers provide essential financing which supports the long-term future of the group. The group engages in quarterly dialogue with the bank to ensure the continuity of this relationship. |
Farmers First Limited (Registered number: 03945957) |
Report of the Directors |
for the year ended 30 May 2024 |
STREAMLINED ENERGY AND CARBON REPORTING |
2024 | 2023 |
Group GHG Emissions |
Scope 1 CO2e (kg) | 48,476 | 54,506 |
Scope 2 CO2e (kg) | 453,703 | 515,579 |
Outside of scopes CO2e (kg) | 9,533 | 9,072 |
Total CO2e (kg) | 511,712 | 579,157 |
Energy consumption used to calculate above emissions (kWh) |
3,311,96 7 |
3,691,23 7 |
Total energy consumption inclusive of all renewable energy generated (kWh) |
3,349,89 1 |
3,754,27 0 |
Energy consumption net of renewable energy (kWh) |
2,414,06 7 |
2,836,85 7 |
Intensity Ratio |
Units produced (carcasses) | 625,272 | 696,956 |
Total CO2e (kg) per unit | 0.8184 | 0.8310 |
Methodology |
The carbon reporting year for our emissions aligns with the financial reporting period. We have followed the Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting Guidance (2019). |
Scope 1: Covers emissions from activities for which the group is responsible, including emissions from the direct combustion of fuels and the operation of facilities. |
Scope 2: Covers emissions from electricity, heat, cooling and steam purchased for own use. |
Outside of scopes: Covers emissions from renewable fuel consumption such as biogas, biodiesel and biomass. |
Scope 1 and 2 covers the electricity and gas generated emissions, data for electricity and gas were obtained directly from supplier correspondence. Outside of scopes covers biomass generated emissions, data was obtained from meter readings at the start and end of the reporting period. |
The conversion factors are taken from the annually released Government emission conversion factors for greenhouse gas reporting, applied on a monthly basis where possible. Where only annual usage units were obtainable a weighted average of the conversion factor across the year has been used for the greenhouse gas reporting. |
Total energy consumption inclusive of all renewable energy generated (kWh) includes scope 1, scope 2, outside of scopes and kWh generated from the solar panels. |
Energy consumption net of renewable energy (kWh) is calculated as Total energy consumption inclusive of all renewable energy generated (kWh) less renewable biomass energy and solar panel energy generated. |
Total production is counted in units produced, being the total of deadweight, market and private kill carcasses. Total CO2e (kg) per unit is calculated as the Total C02e (kg), inclusive of outside of scopes, per unit produced. |
Energy efficiency |
The principal energy efficiency measures to reduce our carbon emissions this year are to invest in more efficient plant and chilling facilities. Wherever possible, we endeavour to utilise renewable energy, such as the biomass boiler at Kenilworth and renewable energy generated from solar panels. |
Renewable biomass energy consumption accounts for 26.80% (2023: 22.76%) of total kWh consumption. Furthermore, renewable energy generation from solar panels makes up 1.13% (2023: 1.68%) of the companies total energy consumption. |
Farmers First Limited (Registered number: 03945957) |
Report of the Directors |
for the year ended 30 May 2024 |
Our focus for the future continues to be furthering the sustainability and generation of renewable energy through more efficient use of the biomass boiler and continued generation of renewable energy from solar panels. In April 24 the transformer at the Kenilworth site was updated, resulting in much improved electricity usage, reducing kWh consumption. |
Moreover, the group continues to search for additional 'green' energy ventures which would further improve the sustainability and generation of renewable energy. |
DISCLOSURE IN THE STRATEGIC REPORT |
Principal activity, financial risk management objectives and policies and the exposure to foreign currency, credit, liquidity, interest rate and other price risk are set out in the strategic report (as defined by section 414 C (11) of the Companies Act 2006). |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
AUDITORS |
The auditors, Clifford Roberts, 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 |
Farmers First Limited |
Opinion |
We have audited the financial statements of Farmers First Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 May 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30 May 2024 and of the group's 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 group 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors 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 Group 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 Group 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 Group 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 |
Farmers First Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 Statement of Directors' Responsibilities set out on page seven, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Farmers First Limited |
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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- | We obtained an understanding of the legal and regulatory framework applicable to the group and parent company and the sector in which they operate. We determined that the following laws and regulations were most significant: the Companies Act 2006, UK Generally Accepted Accounting Practice, UK corporate taxation laws and the BRC Global Standard for Food Safety. |
- | We obtained an understanding of how the group and parent company is complying with those legal and regulatory frameworks by making inquiries to the management and by observing the oversight of management, the culture of honesty and ethical behaviour and whether strong emphasis is placed on fraud prevention, which may reduce the opportunities for fraud to take place, and fraud deterrence, which could persuade individuals not to commit fraud in the first instance . We corroborated our inquiries through our review of all relevant available audit information. |
- | We assessed and understood the susceptibility of the group and parent company's financial statements to material misstatement, including how fraud might occur. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. The audit procedures performed by the engagement team included: |
> | Identifying and assessing the design and effectiveness of controls management has in place to prevent and detect fraud; |
> | Understanding of how senior management considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
> | Challenging assumptions and judgements made by management in its significant accounting estimates; |
> | Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias; and, |
> | Assessing the extent of compliance with relevant laws and regulations. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the consolidated financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 |
Farmers First 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 & |
Statutory Auditors |
Pacioli House |
9 Brookfield |
Duncan Close |
Northampton |
Northamptonshire |
NN3 6WL |
Farmers First Limited (Registered number: 03945957) |
Consolidated |
Statement of Comprehensive |
Income |
for the year ended 30 May 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER | 3 | 141,719,791 | 137,369,299 |
Cost of sales | 121,495,480 | 113,094,587 |
GROSS PROFIT | 20,224,311 | 24,274,712 |
Distribution costs | 7,629,062 | 7,759,412 |
Administrative expenses | 12,905,912 | 13,156,245 |
20,534,974 | 20,915,657 |
(310,663 | ) | 3,359,055 |
Other operating income | 4 | 973,351 | 1,570,776 |
OPERATING PROFIT | 6 | 662,688 | 4,929,831 |
Interest receivable and similar income | 7 | 114,350 | 58,366 |
777,038 | 4,988,197 |
Interest payable and similar expenses | 8 | 145,216 | 143,352 |
PROFIT BEFORE TAXATION | 631,822 | 4,844,845 |
Tax on profit | 9 | 111,309 | 1,200,559 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
520,513 |
3,644,286 |
Profit attributable to: |
Owners of the parent | 520,513 | 3,644,286 |
Total comprehensive income attributable to: |
Owners of the parent | 520,513 | 3,644,286 |
Farmers First Limited (Registered number: 03945957) |
Consolidated Balance Sheet |
30 May 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | - | - |
Tangible assets | 13 | 7,262,093 | 5,635,693 |
Investments | 14 | - | - |
7,262,093 | 5,635,693 |
CURRENT ASSETS |
Stocks | 15 | 519,421 | 480,467 |
Debtors | 16 | 17,751,269 | 17,215,044 |
Cash at bank and in hand | 3,108,274 | 6,415,794 |
21,378,964 | 24,111,305 |
CREDITORS |
Amounts falling due within one year | 17 | 11,037,384 | 12,505,768 |
NET CURRENT ASSETS | 10,341,580 | 11,605,537 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
17,603,673 |
17,241,230 |
PROVISIONS FOR LIABILITIES | 22 | 589,887 | 559,692 |
NET ASSETS | 17,013,786 | 16,681,538 |
CAPITAL AND RESERVES |
Called up share capital | 23 | 627,550 | 627,550 |
Share premium | 24 | 576,254 | 576,254 |
Revaluation reserve | 24 | 735,254 | 754,603 |
Capital redemption reserve | 24 | 64,602 | 64,602 |
Retained earnings | 24 | 15,010,126 | 14,658,529 |
SHAREHOLDERS' FUNDS | 17,013,786 | 16,681,538 |
The financial statements were approved by the Board of Directors and authorised for issue on 27 February 2025 and were signed on its behalf by: |
D Powell - Director |
Farmers First Limited (Registered number: 03945957) |
Company Balance Sheet |
30 May 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 23 |
Share premium | 24 |
Capital redemption reserve | 24 |
Retained earnings | 24 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 181,902 | 125,510 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Farmers First Limited (Registered number: 03945957) |
Consolidated Statement of Changes in Equity |
for the year ended 30 May 2024 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 31 May 2022 | 627,550 | 11,120,404 | 576,254 |
Changes in equity |
Profit for the year | - | 3,644,286 | - |
Total comprehensive income | - | 3,644,286 | - |
Dividends | - | (125,510 | ) | - |
Release of deferred tax | - | (5,092 | ) | - |
Depreciation written back | - | 24,441 | - |
Balance at 30 May 2023 | 627,550 | 14,658,529 | 576,254 |
Changes in equity |
Profit for the year | - | 520,513 | - |
Total comprehensive income | - | 520,513 | - |
Dividends | - | (188,265 | ) | - |
Release of deferred tax | - | (5,092 | ) | - |
Depreciation written back | - | 24,441 | - |
Balance at 30 May 2024 | 627,550 | 15,010,126 | 576,254 |
Capital |
Revaluation | redemption | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 31 May 2022 | 773,952 | 64,602 | 13,162,762 |
Changes in equity |
Profit for the year | - | - | 3,644,286 |
Total comprehensive income | - | - | 3,644,286 |
Dividends | - | - | (125,510 | ) |
Release of deferred tax | 5,092 | - | - |
Depreciation written back | (24,441 | ) | - | - |
Balance at 30 May 2023 | 754,603 | 64,602 | 16,681,538 |
Changes in equity |
Profit for the year | - | - | 520,513 |
Total comprehensive income | - | - | 520,513 |
Dividends | - | - | (188,265 | ) |
Release of deferred tax | 5,092 | - | - |
Depreciation written back | (24,441 | ) | - | - |
Balance at 30 May 2024 | 735,254 | 64,602 | 17,013,786 |
Farmers First Limited (Registered number: 03945957) |
Company Statement of Changes in Equity |
for the year ended 30 May 2024 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 31 May 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 May 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 May 2024 |
Farmers First Limited (Registered number: 03945957) |
Consolidated Cash Flow Statement |
for the year ended 30 May 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (58,296 | ) | 3,203,967 |
Interest paid | (145,216 | ) | (142,067 | ) |
Interest element of hire purchase or finance lease rental payments paid |
- |
(1,285 |
) |
Tax paid | (1,118,948 | ) | (591,918 | ) |
Net cash from operating activities | (1,322,460 | ) | 2,468,697 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (2,297,552 | ) | (1,095,408 | ) |
Sale of tangible fixed assets | 22,000 | 37,255 |
Interest received | 114,350 | 58,366 |
Net cash from investing activities | (2,161,202 | ) | (999,787 | ) |
Cash flows from financing activities |
Loan repayments in year | (1,241,492 | ) | (591,689 | ) |
Capital repayments in year | - | (22,890 | ) |
Amount introduced by directors | 179,499 | 145,725 |
Amount withdrawn by directors | (179,499 | ) | (145,725 | ) |
Equity dividends paid | (105,807 | ) | (111,476 | ) |
Net cash from financing activities | (1,347,299 | ) | (726,055 | ) |
(Decrease)/increase in cash and cash equivalents | (4,830,961 | ) | 742,855 |
Cash and cash equivalents at beginning of year |
2 |
239,753 |
(503,102 |
) |
Cash and cash equivalents at end of year |
2 |
(4,591,208 |
) |
239,753 |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 30 May 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 631,822 | 4,844,845 |
Depreciation charges | 641,869 | 1,445,497 |
Loss/(profit) on disposal of fixed assets | 7,283 | (14,764 | ) |
Finance costs | 145,216 | 143,352 |
Finance income | (114,350 | ) | (58,366 | ) |
1,311,840 | 6,360,564 |
Increase in stocks | (38,954 | ) | (66,080 | ) |
Increase in trade and other debtors | (212,057 | ) | (4,480,599 | ) |
(Decrease)/increase in trade and other creditors | (1,119,125 | ) | 1,390,082 |
Cash generated from operations | (58,296 | ) | 3,203,967 |
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 30 May 2024 |
30.5.24 | 31.5.23 |
£ | £ |
Cash and cash equivalents | 3,108,274 | 6,415,794 |
Bank overdrafts | (7,699,482 | ) | (6,176,041 | ) |
(4,591,208 | ) | 239,753 |
Year ended 30 May 2023 |
30.5.23 | 31.5.22 |
£ | £ |
Cash and cash equivalents | 6,415,794 | 1,708,879 |
Bank overdrafts | (6,176,041 | ) | (2,211,981 | ) |
239,753 | (503,102 | ) |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 30 May 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 31.5.23 | Cash flow | At 30.5.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 6,415,794 | (3,307,520 | ) | 3,108,274 |
Bank overdrafts | (6,176,041 | ) | (1,523,441 | ) | (7,699,482 | ) |
239,753 | (4,830,961 | ) | (4,591,208 | ) |
Debt |
Debts falling due within 1 year | (2,180,588 | ) | 1,241,492 | (939,096 | ) |
(2,180,588 | ) | 1,241,492 | (939,096 | ) |
Total | (1,940,835 | ) | (3,589,469 | ) | (5,530,304 | ) |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements |
for the year ended 30 May 2024 |
1. | PRINCIPAL PLACE OF BUSINESS |
Farmers First Limited is a private company, limited by shares, registered in England and Wales, with the following two principal places of business: |
- The Abattoir, Rouncil Lane, Kenilworth, Warwickshire, CV8 1NN |
- Maelor Abattoir, Bedwell Road, Wrexham, LL13 0TS |
The company's registered number and registered office address can be found on the Company Information page. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis modified to include the deemed cost and fair value of freehold property. |
The financial statements are presented in Sterling (£) and cover the period to the Friday that falls closest to the 30th May each year. This results in the comparatives being not entirely comparable. |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 May each year. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the group. All intra-group transactions, balances, income and expenses are eliminated on consolidation. |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In the application of the group's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below. |
(a) Fair value, goodwill and amortisation |
The amount of goodwill initially recognised as a result of a business combination is dependent on the allocation of the purchase price to the fair value of the identifiable assets acquired and the liabilities assumed. The determination of the fair value of the assets and liabilities is based, to a considerable extent, on management's judgement. The fair value of the Freehold property acquired was based on the valuation performed by an independent professional valuer, Gerald Eve LLP in December 2017. The directors consider this value to be the fair value of the Freehold property at the date of acquisition. The useful life used to amortise the goodwill is management's estimate of the period over which economic benefit will be derived from it. |
(b) Deemed cost of property |
As stated in the 'Tangible fixed assets' note, one Freehold property is stated at deemed cost based on the valuation performed by an independent professional valuer, Gerald Eve LLP in October 2012. The directors consider this value to be deemed cost at the date of transition. |
(c) Provision for bad debts |
The directors carefully consider the recoverability of trade debtors based on their experience of the customers' payment history and the likelihood of recovery, through the use of debt collection services, including firms that specialise in companies overseas, should they fail. At the year end the provision for bad debts carried forward was £754,279 (2023: £519,811). |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover represents net invoiced sales of meat and by products, excluding value added tax. Turnover is recognised upon delivery. |
Goodwill |
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company's interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity. Goodwill is initially recognised as an asset at cost and subsequently measured at cost less accumulated amortisation and impairment losses. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made. |
The goodwill arising on the acquisition of a business in 2018, is being amortised evenly over its estimated useful life of five years. |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Freehold land is not depreciated. Assets under the course of construction are recorded at cost. No depreciation will be provided on these assets until all of the activities necessary to bring the assets fully in to use are complete. |
Investments |
Fixed asset investments are stated at cost less impairment. Impairment losses are recognised immediately in the statement of income. |
Investments in subsidiaries comprises of shares in unquoted companies. |
Government grants |
Grant income is recieved in respect of energy efficiency schemes. These grants are recognised as other income over the period necessary to match them with the related costs, for which they are intended to compensate, on a systematic basis. |
Stocks |
Stocks are stated at the lower of cost and net realisable value and comprise of livestock for slaughter and deadstock for sale. |
Purchases of livestock are valued at cost price, calculated on a first in first out basis. Deadstock is valued at cost price, calculated on an average cost basis. Boning room and freezer stock is held at 70% (2023: 70%) of the selling price. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal. |
Financial instruments |
The group enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans and balances to and from related parties. |
Debt instruments (other than those wholly repayable or receivable in one year), including loans and other accounts receivable and payable, are initially measured at the present value of future cash flows and subsequently at amortised cost using the effective interest rate method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective impairment is found, an impairment loss is recognised in the income statement. |
Interest bearing borrowings |
Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method. |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. Forward foreign currency purchases are initially recognised at fair value on the date they are entered into and are subsequently remeasured at their fair value. Changes in the fair value are recognised in the income statement with the corresponding entry being a derivative asset or liability in the balance sheet. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals under operating leases are charged on a straight line basis over the lease term, even if the payments are not made on such a basis. Benefits recieved and receivable as an incentive to sign an operating lease are similarly spread on a straight line basis over the lease term. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit and loss in the period to which they relate. |
Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet. |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 50,668,038 | 48,738,440 |
Europe | 83,393,994 | 80,533,161 |
Asia | 7,599,053 | 8,097,698 |
North America | 58,706 | - |
141,719,791 | 137,369,299 |
4. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Discounts received | 16,795 | 21,151 |
Rents received | 30,000 | 30,000 |
Sundry receipts | 85,259 | 118,759 |
Exchange gains | 841,297 | 1,400,866 |
973,351 | 1,570,776 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 5,828,214 | 6,017,503 |
Social security costs | 368,447 | 447,170 |
Other pension costs | 104,789 | 115,300 |
6,301,450 | 6,579,973 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Production | 81 | 82 |
Admin | 13 | 14 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 354,855 | 410,498 |
Directors' pension contributions to money purchase schemes | 40,933 | 37,050 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 209,231 | 240,738 |
Pension contributions to money purchase schemes | 24,271 | 22,074 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 641,869 | 474,015 |
Depreciation - assets on hire purchase contracts or finance leases | - | 960 |
Loss/(profit) on disposal of fixed assets | 7,283 | (14,764 | ) |
Goodwill amortisation | - | 970,522 |
Auditors remuneration- Parent | 8,262 | 8,100 |
Auditors' remuneration- Subs | 23,460 | 23,000 |
Taxation compliance services | 4,692 | 4,600 |
Other non- audit services | 19,629 | 17,290 |
Foreign exchange differences | (841,297 | ) | (1,400,866 | ) |
Government grants | (58,110 | ) | (56,700 | ) |
Lease of land and buildings | 10,000 | 10,000 |
7. | INTEREST RECEIVABLE AND SIMILAR INCOME |
2024 | 2023 |
£ | £ |
Deposit account interest | 114,350 | 57,669 |
Tax interest received | - | 697 |
114,350 | 58,366 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 55,939 | 8,689 |
Bank loan interest | 82,132 | 131,956 |
Late payment interest | 7,145 | 1,422 |
Hire purchase | - | 1,285 |
145,216 | 143,352 |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 95,430 | 1,144,064 |
(Over)/under provision in respect of prior years | (14,316 | ) | - |
Total current tax | 81,114 | 1,144,064 |
Deferred tax | 30,195 | 56,495 |
Tax on profit | 111,309 | 1,200,559 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 631,822 | 4,844,845 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19.978 %) |
157,956 |
967,903 |
Effects of: |
Expenses not deductible for tax purposes | 97,569 | 9,889 |
Income not taxable for tax purposes | (11,296 | ) | (3,198 | ) |
Capital allowances in excess of depreciation | (148,799 | ) | - |
Depreciation in excess of capital allowances | - | 164,108 |
Adjustments to tax charge in respect of previous periods | (14,316 | ) | - |
Deferred tax timing differences | 30,195 | 56,495 |
Losses carried forward | - | 5,362 |
Total tax charge | 111,309 | 1,200,559 |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
9. | TAXATION - continued |
The increase in applicable tax rate, compared to the previous period, is due to the rate of tax chargeable on the current year profits increasing from 19% to 25% on 1st April 2023. |
The 2024 deferred tax on the deemed cost movement of the freehold property consists of a 20% charge on the increase in value of the property in 2012, being £244,406, and an accumulated credit of £50,918 due to the unwinding of the deferred tax over the life of the asset. |
The 2023 deferred tax on the deemed cost movement of the freehold property consists of a 20% charge on the increase in value of the property in 2012, being £244,406, and an accumulated credit of £45,826 due to the unwinding of the deferred tax over the life of the asset. |
A freehold property is revalued on consolidation, the 2024 deferred tax on the revaluation movement of the additional freehold property consists of a 19% charge on the increase in value of the property in 2018, being £137,372, and an accumulated credit of £17,171 due to the unwinding of the deferred tax over the life of the asset. |
The 2023 deferred tax on the revaluation movement of the additional freehold property consists of a 19% charge on the increase in value of the property in 2018, being £137,372, and an accumulated credit of £14,424 due to the unwinding of the deferred tax over the life of the asset. |
The company has capital losses amounting to £249,000 available to be carried forward and used against future capital gains. |
10. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of 50p each |
Final | 188,265 | 125,510 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 31 May 2023 |
and 30 May 2024 | 6,470,142 |
AMORTISATION |
At 31 May 2023 |
and 30 May 2024 | 6,470,142 |
NET BOOK VALUE |
At 30 May 2024 | - |
At 30 May 2023 | - |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
13. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 31 May 2023 | 3,717,189 | 1,288,791 | 3,134,583 |
Additions | - | 149,950 | 523,718 |
Disposals | - | (47,896 | ) | (367,192 | ) |
At 30 May 2024 | 3,717,189 | 1,390,845 | 3,291,109 |
DEPRECIATION |
At 31 May 2023 | 647,202 | 635,080 | 1,740,583 |
Charge for year | 68,179 | 91,535 | 413,332 |
Eliminated on disposal | - | (47,896 | ) | (337,909 | ) |
At 30 May 2024 | 715,381 | 678,719 | 1,816,006 |
NET BOOK VALUE |
At 30 May 2024 | 3,001,808 | 712,126 | 1,475,103 |
At 30 May 2023 | 3,069,987 | 653,711 | 1,394,000 |
Fixtures | Assets |
and | Motor | under |
fittings | vehicles | construction | Totals |
£ | £ | £ | £ |
COST |
At 31 May 2023 | 384,139 | 162,900 | 309,272 | 8,996,874 |
Additions | 79,494 | - | 1,544,390 | 2,297,552 |
Disposals | (82,859 | ) | (15,017 | ) | - | (512,964 | ) |
At 30 May 2024 | 380,774 | 147,883 | 1,853,662 | 10,781,462 |
DEPRECIATION |
At 31 May 2023 | 264,297 | 74,019 | - | 3,361,181 |
Charge for year | 41,046 | 27,777 | - | 641,869 |
Eliminated on disposal | (82,859 | ) | (15,017 | ) | - | (483,681 | ) |
At 30 May 2024 | 222,484 | 86,779 | - | 3,519,369 |
NET BOOK VALUE |
At 30 May 2024 | 158,290 | 61,104 | 1,853,662 | 7,262,093 |
At 30 May 2023 | 119,842 | 88,881 | 309,272 | 5,635,693 |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
13. | TANGIBLE FIXED ASSETS - continued |
Group |
A freehold property was re-valued at £2,695,000, based on the market value (DRC) in October 2012, as determined by professional valuers Gerald Eve LLP, Birmingham. The directors believe that this valuation was still relevant at the date of transition and it has formed the basis of deemed cost. |
During 2018 the group acquired Farmers Fresh (Wales) Limited, a company that owns freehold property. On consolidation the property is fair valued to £1,000,000, based on the market value in December 2017, as determined by professional valuers Gerald Eve LLP. There are no indications of impairment of the property and the directors believe this valuation is still appropriate. |
Comparable historical cost for the land and buildings included at valuation: |
Cost | £ |
At 31 May 2023 | 1,749,961 |
Additions | - |
At 30 May 2024 | 1,749,961 |
Depreciation based on cost |
At 31 May 2023 | 301,149 |
Charge for the period | 28,799 |
At 30 May 2024 | 329,948 |
Net book value |
At 30 May 2024 | 1,420,013 |
At 30 May 2023 | 1,448,812 |
14. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 31 May 2023 |
and 30 May 2024 | 249,000 |
PROVISIONS |
At 31 May 2023 |
and 30 May 2024 | 249,000 |
NET BOOK VALUE |
At 30 May 2024 | - |
At 30 May 2023 | - |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
14. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 31 May 2023 |
and 30 May 2024 |
NET BOOK VALUE |
At 30 May 2024 |
At 30 May 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: The Abattoir, Rouncil Lane, Kenilworth, Warwickshire, CV8 1NN |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Maelor Abattoir, Bedwell Road, Wrexham, LL13 0TS |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
Farmers Ferry Limited |
Registered office: Davela, Llanstephan, Llyswen, Brecon, Powys, LD3 0AJ |
Farmers Ferry Limited is a dormant company, limited by guarantee, that did not trade in either the current or previous year. The aggregate capital and reserves is £nil for both years. The entity is regarded as a subsidiary due to having directors in common with the rest of the group. |
The results and assets of all subsidiary undertakings are included within these consolidated financial statements. |
The group unlisted investments were fully impaired in the 2017 accounts. |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
15. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Stocks | 519,421 | 480,467 |
16. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 17,225,817 | 16,645,273 |
Bad debt provision | (754,279 | ) | (519,811 | ) | - | - |
Amounts owed by group undertakings | - | - |
Other debtors | 37,936 | 77,422 |
Tax | 324,168 | - |
VAT | 528,564 | 604,821 |
Prepayments and accrued income | 389,063 | 407,339 |
17,751,269 | 17,215,044 |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 8,638,578 | 8,356,629 |
Trade creditors | 1,104,465 | 1,921,698 |
Amounts owed to group undertakings | - | - |
Tax | - | 713,666 |
Social security and other taxes | 97,916 | 85,447 |
Wages control | 41,484 | 28,252 | - | - |
Proposed dividends | 276,406 | 193,948 | 276,406 | 193,948 |
Other creditors | 4,256 | 2,106 |
Directors' current accounts | 23,400 | 23,400 | 23,400 | 23,400 |
Accruals and deferred income | 850,879 | 1,180,622 |
11,037,384 | 12,505,768 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or | on demand: |
Bank overdrafts | 7,699,482 | 6,176,041 |
Bank loans | 939,096 | 2,180,588 |
8,638,578 | 8,356,629 |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year | 10,000 | 10,000 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank overdrafts | 7,699,482 | 6,176,041 |
Bank loans | 939,096 | 2,180,588 |
8,638,578 | 8,356,629 |
The bank loans are subject to interest at 2.0% above the bank base rate and are secured by fixed and floating charges over the assets of the company and the group. |
21. | FINANCIAL INSTRUMENTS |
The carrying value of the company's financial assets and liabilities are summarised by category below: |
2024 | 2023 |
Financial assets | See note | £ | £ |
Measured at undiscounted amount receivable |
- Debtors falling due within one year | 16 | 17,751,269 | 17,215,044 |
- Debtors falling due after more than one year | 16 | - | - |
17,751,269 | 17,215,044 |
2024 | 2023 |
Financial liabilities | See note | £ | £ |
Measured at undiscounted amount payable |
- Bank loans and overdrafts | 18 | 8,638,578 | 8,356,629 |
- Creditors falling due within one year | 17 | 2,398,806 | 4,149,139 |
- Creditors due after more than one year | - | - |
11,037,384 | 12,505,768 |
The Group's income, expenses, gains and losses in respect of financial instruments are summarised by category below: |
2024 | 2023 |
Interest income and expense | £ | £ |
Total interest income for financial assets at amortised cost | - | - |
Total interest expense for financial liabilities at amortised cost | 82,132 | 133,241 |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
22. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 396,399 | 361,112 |
Other timing differences | 193,488 | 198,580 |
589,887 | 559,692 |
Group |
Deferred |
tax |
£ |
Balance at 31 May 2023 | 559,692 |
Deferred tax timing difference | 35,287 |
Revaluation reserve release | (5,092 | ) |
Balance at 30 May 2024 | 589,887 |
Deferred tax has been calculated at 25% (2023: 25%), the rate expected to apply in the future. |
23. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 50p | 627,550 | 627,550 |
Called up share capital |
This represents the nominal value of shares that have been issued. |
24. | RESERVES |
Group |
Capital |
Retained | Share | Revaluation | redemption |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 31 May 2023 | 14,658,529 | 576,254 | 754,603 | 64,602 | 16,053,988 |
Profit for the year | 520,513 | - | - | - | 520,513 |
Dividends | (188,265 | ) | - | - | - | (188,265 | ) |
Release of deferred tax | (5,092 | ) | - | 5,092 | - | - |
Depreciation written back | 24,441 | - | (24,441 | ) | - | - |
At 30 May 2024 | 15,010,126 | 576,254 | 735,254 | 64,602 | 16,386,236 |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
24. | RESERVES - continued |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 31 May 2023 | 1,145,630 |
Profit for the year | - | - |
Dividends | ( |
) | - | - | ( |
) |
At 30 May 2024 | 1,139,267 |
Retained earnings |
This reserve includes all current and prior period retained profit and losses. |
Share premium |
This represents the additional amount shareholders paid for their issued shares in excess of the nominal value of those shares, less the cost of issue. |
Revaluation reserve |
This reserve includes all current year and prior year period gains and losses on revaluing the freehold property to deemed cost at the date of transition to FRS 102 and to fair value on consolidation. The amount taken to the revaluation reserve has been subject to deferred tax and appropriate transfers between reserves. |
Capital redemption reserve |
This non-distributable reserve represents the nominal value of the company's own shares bought back from shareholders. |
25. | PENSION COMMITMENTS |
The group operates defined contribution, auto enrolment, retirement benefit schemes for all its qualifying employees. The total expense charged to profit or loss in the period ended 30th May 2024 was £104,789 (2023: £115,300). The amount owed to the pension schemes at the year end was £17,214 (2023: £25,465). |
26. | CONTINGENT LIABILITIES |
There is a contingent liability to the bank, in the form of a cross guarantee and debenture, dated 9th March 2018, including a fixed charge over the fixed assets and a floating charge over all the other assets of Farmers First Limited, Farmers Fresh Limited and Farmers Fresh (Wales) Limited. |
The maximum amount payable is the net overdraft and bank loans of the group at each year end. |
27. | RELATED PARTY DISCLOSURES |
Entities with control, joint control or significant influence over the entity |
2024 | 2023 |
£ | £ |
Dividends paid | 188,265 | 125,510 |
Dividends outstanding and uncashed | 276,406 | 193,948 |
It is a requirement of the company's Articles of Association for all directors to have a minimum shareholding of 250 shares. Therefore all directors receive at least £25 of dividends. |
Farmers First Limited (Registered number: 03945957) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 May 2024 |
27. | RELATED PARTY DISCLOSURES - continued |
Key management personnel of the entity or its parent (in the aggregate) |
2024 | 2023 |
£ | £ |
Livestock purchases | 269,820 | 362,528 |
Key management personnel consultancy & expenses | 348,093 | 314,544 |
Key management personnel compensation | 442,246 | 503,467 |
Deadstock sales | 51,100 | 87,746 |
Other sales | 22,000 | - |
Company secretarial fees | 9,996 | 9,996 |
Amount due from related party | 2,095 | 992 |
Amount due to related party | 23,911 | 24,120 |