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REGISTERED NUMBER: 04535578 (England and Wales)




















Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30 May 2024

for

Farmers Fresh (Wales) Limited

Farmers Fresh (Wales) Limited (Registered number: 04535578)






Contents of the Financial Statements
for the year ended 30 May 2024




Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4 to 5

Report of the Independent Auditors 6 to 9

Statement of Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Notes to the Financial Statements 13 to 21


Farmers Fresh (Wales) Limited

Company Information
for the year ended 30 May 2024







DIRECTORS: W A Lammas
D T Owen
T I Simpson
T J Bayliss
S T Morris
J H Wescott
D Powell





REGISTERED OFFICE: Maelor Abattoir
Bedwell Road
Wrexham
LL13 0TS





REGISTERED NUMBER: 04535578 (England and Wales)





AUDITORS: Clifford Roberts
Chartered Accountants &
Statutory Auditors
Pacioli House
9 Brookfield
Duncan Close
Northampton
Northamptonshire
NN3 6WL

Farmers Fresh (Wales) Limited (Registered number: 04535578)

Strategic Report
for the year ended 30 May 2024

The directors present their strategic report for the year ended 30 May 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the period under review was that of an abattoir.

REVIEW OF BUSINESS
The directors monitor the performance of the business by reviewing the results of the activities and benchmarking against similar enterprises.

The company continued its trade as a lamb abattoir and sold in excess of 305,974 units (2023: 318,992 units) of meat at a margin of approximately 12.5% (2023: 15.0%). Turnover increased, despite lower throughput, due to the high price of lamb.

The company was invoiced management charges amounting to £105,985 (2023: £83,529) for the year by the parent company. These charges are included in the administrative expenses and have reduced the operating result of the company.

The combination of all the above movements and savings in administrative expenses has resulted in the company making a small profit before tax.

The directors are pleased with a return to profitability of the company, despite the difficult trading conditions during the financial year.


Farmers Fresh (Wales) Limited (Registered number: 04535578)

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 Farmers Fresh (Wales) Limited's business. These risks are limited by the company's financial management policies described below.

Foreign currency risk
The company 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 company and by the use of forward contracts.

Credit risk
The company 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 by Farmers First Limited, the company has increased its exposure to interest rate risk through the impact of rate changes in interest bearing borrowings. Active management of the company's exposure to interest rate fluctuations is undertaken by managing the borrowings on a group wide basis.

Other price risk
The company is exposed to live stock price risks through changes in commodity prices world wide. Active management of the company's exposure to this is undertaken on a daily basis with reference to the Standard Quality Quotation lamb prices via the Livestock Auctioneers Association.

ON BEHALF OF THE BOARD:





D Powell - Director


27 February 2025

Farmers Fresh (Wales) Limited (Registered number: 04535578)

Report of the Directors
for the year ended 30 May 2024

The directors present their report with the financial statements of the company for the year ended 30 May 2024.

DIVIDENDS
No dividends will be distributed for the year ended 30 May 2024.

FUTURE DEVELOPMENTS
We have considered the continuing impact of Brexit and the war in the Ukraine on the operation of the company'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 rising 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 the lamb price start reducing post year end.

Large fluctuations in 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.

W A Lammas
D T Owen
T I Simpson
T J Bayliss
S T Morris
J H Wescott
D Powell

Other changes in directors holding office are as follows:

G Jones ceased to be a director after 30 May 2024 but prior to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT
The 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).


Farmers Fresh (Wales) Limited (Registered number: 04535578)

Report of the Directors
for the year ended 30 May 2024

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.

AUDITORS
The auditors, Clifford Roberts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D Powell - Director


27 February 2025

Report of the Independent Auditors to the Members of
Farmers Fresh (Wales) Limited

Opinion
We have audited the financial statements of Farmers Fresh (Wales) Limited (the 'company') for the year ended 30 May 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 30 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 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 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 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
Farmers Fresh (Wales) 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 five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Farmers Fresh (Wales) 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 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 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 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 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 Fresh (Wales) 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.




Robert Dearing BEng FCA (Senior Statutory Auditor)
for and on behalf of Clifford Roberts
Chartered Accountants &
Statutory Auditors
Pacioli House
9 Brookfield
Duncan Close
Northampton
Northamptonshire
NN3 6WL

27 February 2025

Farmers Fresh (Wales) Limited (Registered number: 04535578)

Statement of Comprehensive
Income
for the year ended 30 May 2024

2024 2023
Notes £    £    £    £   

TURNOVER 3 49,575,425 45,644,464

Cost of sales 43,366,050 38,810,732
GROSS PROFIT 6,209,375 6,833,732

Distribution costs 2,443,173 2,376,014
Administrative expenses 3,600,786 4,479,115
6,043,959 6,855,129
165,416 (21,397 )

Other operating income 4 20,535 88,740
OPERATING PROFIT 6 185,951 67,343

Interest receivable and similar income - 55
185,951 67,398

Interest payable and similar expenses 7 138,071 143,352
PROFIT/(LOSS) BEFORE TAXATION 47,880 (75,954 )

Tax on profit/(loss) 8 (26,002 ) (16,882 )
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

73,882

(59,072

)

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

73,882

(59,072

)

Farmers Fresh (Wales) Limited (Registered number: 04535578)

Balance Sheet
30 May 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 1,321,006 1,457,382

CURRENT ASSETS
Stocks 10 359,161 271,857
Debtors 11 8,265,311 7,922,829
Cash in hand 11,899 11,899
8,636,371 8,206,585
CREDITORS
Amounts falling due within one year 12 8,196,646 7,951,116
NET CURRENT ASSETS 439,725 255,469
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,760,731

1,712,851

PROVISIONS FOR LIABILITIES 16 127,849 153,851
NET ASSETS 1,632,882 1,559,000

CAPITAL AND RESERVES
Called up share capital 17 100 100
Retained earnings 18 1,632,782 1,558,900
SHAREHOLDERS' FUNDS 1,632,882 1,559,000

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 Fresh (Wales) Limited (Registered number: 04535578)

Statement of Changes in Equity
for the year ended 30 May 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 31 May 2022 100 1,617,972 1,618,072

Changes in equity
Total comprehensive income - (59,072 ) (59,072 )
Balance at 30 May 2023 100 1,558,900 1,559,000

Changes in equity
Total comprehensive income - 73,882 73,882
Balance at 30 May 2024 100 1,632,782 1,632,882

Farmers Fresh (Wales) Limited (Registered number: 04535578)

Notes to the Financial Statements
for the year ended 30 May 2024

1. STATUTORY INFORMATION

Farmers Fresh (Wales) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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.

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.

Going concern
The financial statements are prepared on a going concern on the basis the company receives the continued support of the group.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

Details of the parent of the group in which full disclosure can be obtained can be found in the "Ultimate Controlling Party" note.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned entities within the group.

Significant judgements and estimates
In the application of the company'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) 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 £599,279 (2023: £519,811).

Farmers Fresh (Wales) Limited (Registered number: 04535578)

Notes to the Financial Statements - continued
for the year ended 30 May 2024

2. ACCOUNTING POLICIES - continued

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.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Improvements to property - 2% on cost
Plant and machinery - 20% on reducing balance
Fixtures and fittings - 20% on reducing balance
Motor vehicles - 20% on cost

Freehold land is not depreciated.

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. Carcass 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 company 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 Fresh (Wales) Limited (Registered number: 04535578)

Notes to the 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 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 taxation
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.

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.

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 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 Fresh (Wales) Limited (Registered number: 04535578)

Notes to the Financial Statements - continued
for the year ended 30 May 2024

3. TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2024 2023
£    £   
United Kingdom 28,132,821 29,893,756
Europe 21,377,145 14,202,009
Asia 6,753 1,548,699
North America 58,706 -
49,575,425 45,644,464

4. OTHER OPERATING INCOME
2024 2023
£    £   
Exchange gains 20,535 88,740

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 2,032,700 2,124,188
Social security costs 196,424 213,273
Other pension costs 39,534 35,908
2,268,658 2,373,369

The average number of employees during the year was as follows:
2024 2023

Production 54 54
Administration and support 4 5
58 59

2024 2023
£    £   
Directors' remuneration - -

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 189,640 140,196
Depreciation - assets on hire purchase contracts or finance leases - 960
Loss on disposal of fixed assets 2,170 1,236
Auditors' remuneration 10,200 10,000
Foreign exchange differences (20,535 ) (88,740 )

Farmers Fresh (Wales) Limited (Registered number: 04535578)

Notes to the Financial Statements - continued
for the year ended 30 May 2024

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 55,939 8,689
Bank loan interest 82,132 131,956
Late payment interest - 1,422
Hire purchase - 1,285
138,071 143,352

8. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
2024 2023
£    £   
Deferred tax (26,002 ) (16,882 )
Tax on profit/(loss) (26,002 ) (16,882 )

Reconciliation of total tax credit 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/(loss) before tax 47,880 (75,954 )
Profit/(loss) multiplied by the standard rate of corporation tax in the
UK of 25% (2023 - 19%)

11,970

(14,431

)

Effects of:
Expenses not deductible for tax purposes 544 495
Income not taxable for tax purposes (204,288 ) -
Depreciation in excess of capital allowances 35,286 8,604
Deferred tax timing differences (26,002 ) (16,882 )
Losses surrendered to group 156,488 5,332
Total tax credit (26,002 ) (16,882 )

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.

Farmers Fresh (Wales) Limited (Registered number: 04535578)

Notes to the Financial Statements - continued
for the year ended 30 May 2024

9. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 31 May 2023 299,179 525,031 1,535,113
Additions - 14,379 63,055
Disposals - - (37,300 )
At 30 May 2024 299,179 539,410 1,560,868
DEPRECIATION
At 31 May 2023 15,900 26,093 920,025
Charge for year 3,218 12,581 158,636
Eliminated on disposal - - (13,130 )
At 30 May 2024 19,118 38,674 1,065,531
NET BOOK VALUE
At 30 May 2024 280,061 500,736 495,337
At 30 May 2023 283,279 498,938 615,088

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 31 May 2023 174,270 53,000 2,586,593
Additions - - 77,434
Disposals - - (37,300 )
At 30 May 2024 174,270 53,000 2,626,727
DEPRECIATION
At 31 May 2023 142,243 24,950 1,129,211
Charge for year 6,405 8,800 189,640
Eliminated on disposal - - (13,130 )
At 30 May 2024 148,648 33,750 1,305,721
NET BOOK VALUE
At 30 May 2024 25,622 19,250 1,321,006
At 30 May 2023 32,027 28,050 1,457,382

10. STOCKS
2024 2023
£    £   
Stocks 359,161 271,857

Farmers Fresh (Wales) Limited (Registered number: 04535578)

Notes to the Financial Statements - continued
for the year ended 30 May 2024

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 8,711,524 7,901,837
Bad debt provision (599,279 ) (519,811 )
Amounts owed by group undertakings - 338,868
Other debtors - 5,010
Tax 55 55
VAT 142,261 167,954
Prepayments and accrued income 10,750 28,916
8,265,311 7,922,829

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 13) 6,261,088 5,545,198
Trade creditors 533,452 966,738
Amounts owed to group undertakings 1,132,061 1,026,076
Social security and other taxes 42,391 32,436
Net wages 29,656 15,697
Other creditors 4,256 2,106
Accruals and deferred income 193,742 362,865
8,196,646 7,951,116

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 5,321,992 3,364,610
Bank loans 939,096 2,180,588
6,261,088 5,545,198

14. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank overdrafts 5,321,992 3,364,610
Bank loans 939,096 2,180,588
6,261,088 5,545,198

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.

Farmers Fresh (Wales) Limited (Registered number: 04535578)

Notes to the Financial Statements - continued
for the year ended 30 May 2024

15. FINANCIAL INSTRUMENTS

Farmers Fresh (Wales) Limited holds only basic financial instruments. No financial instruments held are measured at fair value through profit and loss and therefore have no related income, expense, net gains or losses.

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 127,849 153,851

Deferred
tax
£   
Balance at 31 May 2023 153,851
Deferred tax timing difference (26,002 )
Balance at 30 May 2024 127,849

Deferred tax has been calculated at 25% (2023: 25%), the rate expected to apply in the future.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
80 A Ordinary shares £1 80 80
20 B Ordinary shares £1 20 20
100 100

Called up share capital
This represents the nominal value of shares that have been issued.

The A and B ordinary shares have equal voting rights, and both participate equally on a liquidation, winding up or dissolution.

18. RESERVES
Retained
earnings
£   

At 31 May 2023 1,558,900
Profit for the year 73,882
At 30 May 2024 1,632,782

Retained earnings
This reserve includes all current and prior period retained profit and losses.

Farmers Fresh (Wales) Limited (Registered number: 04535578)

Notes to the Financial Statements - continued
for the year ended 30 May 2024

19. PENSION COMMITMENTS

The company 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 £39,534 (2023: £35,908). The amount owed to the pension schemes at the year end was £4,858 (2023: £15,697).

20. 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.

21. RELATED PARTY DISCLOSURES

Key management personnel of the entity or its parent (in the aggregate)
2024 2023
£    £   
Sales 509 -
Livestock purchases 46,774 58,961
Other sales 22,000 -
Amount due from related party 509 -
Amount due to a related party 511 720

22. ULTIMATE CONTROLLING PARTY

The ultimate parent company and controlling party is Farmers First Limited, a company registered in England and Wales.

Farmers First Limited prepares group financial statements and copies can be obtained from the registered office, One, Glass Wharf, Bristol, BS2 0ZX.