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REGISTERED NUMBER: 02480783 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

Smithy Mushrooms Limited

Smithy Mushrooms Limited (Registered number: 02480783)






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




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


Smithy Mushrooms Limited

Company Information
for the Year Ended 31 December 2024







DIRECTORS: MPMJ Paul Le Bris
J Dorrian
H J Park
C K Kim
T Jung
C Park



SECRETARY: H J Park



REGISTERED OFFICE: 32 Derby Street
Ormskirk
Lancashire
L39 2BY



REGISTERED NUMBER: 02480783 (England and Wales)



SENIOR STATUTORY AUDITOR: Nicola Price ACA FCCA



AUDITORS: Myersons
Statutory Auditors
Chartered Accountants
32 Derby Street
Ormskirk
Lancashire
L39 2BY

Smithy Mushrooms Limited (Registered number: 02480783)

Strategic Report
for the Year Ended 31 December 2024

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

REVIEW OF BUSINESS
Smithy Mushrooms Limited is well-positioned to capitalise on the growing demand for high-quality gourmet mushrooms. By focusing on strategic expansion, innovation, and sustainability, the company can achieve continued success in the market. With careful planning and execution, Smithy Mushrooms Limited can overcome challenges and emerge as a leader in the mushroom industry.

The principal activities of the company is mushrooms production and trading. In order to strengthen business, the company decided to invest in building a shiitake log facility in the UK. This investment will allow us to grow diverse exotic mushrooms and triple the overall production of shiitake mushrooms.

The business review of the directors contained in the financial statements of Smithy Mushrooms Limited is as follows:

We aim to present a fair review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and complexity of our business, and is written in the context of the risks and uncertainties we face.

In spite of trading through unprecedented circumstances during the year arising from the Russia-Ukraine war and Suez Canal Issue, the company achieved a good performance in line with its growth plan. As with many businesses, the effects of the Russia-Ukraine war have directly impacted on the company's cost increase in various ways such as labour, electricity, fuel, transport and so on. From the Suez Canal issue, it impacted by increasing the company's transportation costs. The company was in difficult situation due to unexpected high inflation along with the worsening reduction in consumption concerns. However, we found a way to stabilize the business and overcome crisis with strong relationships with our customers. Now, the company can expect greater profitability.

Smithy Mushrooms Limited's turnover has increased slightly by 2.5% to £7.9 million compared with £7.7 million in 2023. The reduction in gross profit margin reflects the decision to show the depreciation of the new farm as a direct cost. The year resulted in an operating loss of £477,840 compared with a profit of £6,439 in 2023. This also is directly linked to the increase in the depreciation charged in the year.

The company balance sheet continues to present a very solid position, with net assets of £13.1 million compared with £13.5 million in 2023.

The directors would like to thank all employees for their commitment and hard work over the last 12 months.

PRINCIPAL RISKS AND UNCERTAINTIES
The business environment in which the company operates continues to be very challenging and competitive pricing across the industry continues to put pressure on margins.

The impacts of both Russia-Ukraine war and the Suez Canal Issue remain unknown, and consequently future trading remains uncertain for all businesses. Additionally, the unexpected Israel-Hamas war which can be expanded to the middle east area, the rise in global inflation, and the US Fed's rapid interest rate hikes have caused the global economy to be exposed to greater variability and uncertainties, especially at this time of the year.

Despite such hardships, next year, our group can achieve better results than this year where the company have promoted balanced growth in every sphere with further strengthening the fundamentals of our income portfolio.

The company's reputation for delivering high quality mushrooms and meeting customers' needs has provided a crucial edge over competitors. Also our business capabilities based on such differentiated systems are considered to act as our own competitive asset to overcome future difficulties.


Smithy Mushrooms Limited (Registered number: 02480783)

Strategic Report
for the Year Ended 31 December 2024

FUTURE DEVELOPMENTS
The company continues to look for opportunities to grow the business and extend the range of products offered.
Considering that business conditions may become less favorable and change more quickly, the company will return to the basics, strengthening fundamentals substantially and improving our capabilities to more effectively adapt to rapidly fluctuating business environments.

Smithy Mushrooms Limited continues to perform well and the new facility allows us to manufacture our own logs on-site instead of depending of daily shipments from overseas, and will add several new exotic mushroom productions that are 100% UK grown items.

ON BEHALF OF THE BOARD:





T Jung - Director


13 March 2025

Smithy Mushrooms Limited (Registered number: 02480783)

Report of the Directors
for the Year Ended 31 December 2024

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

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of buying, growing and selling mushrooms.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2024.

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

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

MPMJ Paul Le Bris
J Dorrian
H J Park
C K Kim

Other changes in directors holding office are as follows:

J Park - resigned 5 February 2024
T Jung - appointed 5 February 2024
C Park - appointed 5 February 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES
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.

Smithy Mushrooms Limited (Registered number: 02480783)

Report of the Directors
for the Year Ended 31 December 2024


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

ON BEHALF OF THE BOARD:





T Jung - Director


13 March 2025

Report of the Independent Auditors to the Members of
Smithy Mushrooms Limited

Opinion
We have audited the financial statements of Smithy Mushrooms Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss 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
Smithy Mushrooms 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 Statement of Directors' Responsibilities set out on page four, 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
Smithy Mushrooms 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.

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

The senior statutory auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the client and their industry sector;

We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, employment, and environmental and health and safety legislation;

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we performed analytical procedures to identify any unusual or unexpected relationships, tested journal entries to identify unusual transactions, assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to agreeing financial statement disclosures to underlying supporting documentation, enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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
Smithy Mushrooms 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.




Nicola Price ACA FCCA (Senior Statutory Auditor)
for and on behalf of Myersons
Statutory Auditors
Chartered Accountants
32 Derby Street
Ormskirk
Lancashire
L39 2BY

13 March 2025

Smithy Mushrooms Limited (Registered number: 02480783)

Income Statement
for the Year Ended 31 December 2024

31.12.24 31.12.23
Notes £    £   

TURNOVER 3 7,858,961 7,669,180

Cost of sales 7,634,093 6,735,312
GROSS PROFIT 224,868 933,868

Administrative expenses 709,583 927,201
(484,715 ) 6,667

Other operating income 6,875 (228 )
OPERATING (LOSS)/PROFIT 5 (477,840 ) 6,439


Interest payable and similar expenses 6 29,112 60,439
LOSS BEFORE TAXATION (506,952 ) (54,000 )

Tax on loss 7 (161,380 ) (271,448 )
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(345,572

)

217,448

Smithy Mushrooms Limited (Registered number: 02480783)

Other Comprehensive Income
for the Year Ended 31 December 2024

31.12.24 31.12.23
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (345,572 ) 217,448


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(345,572

)

217,448

Smithy Mushrooms Limited (Registered number: 02480783)

Balance Sheet
31 December 2024

31.12.24 31.12.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 13,299,423 13,403,526

CURRENT ASSETS
Stocks 9 968,509 400,662
Debtors 10 802,031 813,200
Cash at bank and in hand 34,798 140,906
1,805,338 1,354,768
CREDITORS
Amounts falling due within one year 11 1,980,629 1,288,590
NET CURRENT (LIABILITIES)/ASSETS (175,291 ) 66,178
TOTAL ASSETS LESS CURRENT
LIABILITIES

13,124,132

13,469,704

CAPITAL AND RESERVES
Called up share capital 14 3,688,416 3,688,416
Share premium 15 8,383,571 8,383,571
Preference share redemption
reserve 15 20,000 20,000
Retained earnings 15 1,032,145 1,377,717
SHAREHOLDERS' FUNDS 13,124,132 13,469,704

The financial statements were approved by the Board of Directors and authorised for issue on 13 March 2025 and were signed on its behalf by:





T Jung - Director


Smithy Mushrooms Limited (Registered number: 02480783)

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

Preference
Called up share
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 January 2023 364,560 1,160,269 3,957,424 20,000 5,502,253

Changes in equity
Issue of share capital 3,323,856 - 4,426,147 - 7,750,003
Total comprehensive income - 217,448 - - 217,448
Balance at 31 December 2023 3,688,416 1,377,717 8,383,571 20,000 13,469,704

Changes in equity
Total comprehensive income - (345,572 ) - - (345,572 )
Balance at 31 December 2024 3,688,416 1,032,145 8,383,571 20,000 13,124,132

Smithy Mushrooms Limited (Registered number: 02480783)

Cash Flow Statement
for the Year Ended 31 December 2024

31.12.24 31.12.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (156,155 ) 45,067
Interest paid (29,112 ) (60,439 )
Tax paid 161,380 254,448
Net cash from operating activities (23,887 ) 239,076

Cash flows from investing activities
Purchase of tangible fixed assets (814,976 ) (5,945,486 )
Sale of tangible fixed assets 3,644 (58 )
Net cash from investing activities (811,332 ) (5,945,544 )

Cash flows from financing activities
New loans in year 729,111 -
Loan repayments in year - (2,017,382 )
Share issue - 7,750,003
Net cash from financing activities 729,111 5,732,621

(Decrease)/increase in cash and cash equivalents (106,108 ) 26,153
Cash and cash equivalents at beginning of
year

2

140,906

114,753

Cash and cash equivalents at end of year 2 34,798 140,906

Smithy Mushrooms Limited (Registered number: 02480783)

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

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

31.12.24 31.12.23
£    £   
Loss before taxation (506,952 ) (54,000 )
Depreciation charges 909,869 78,740
Loss on disposal of fixed assets 5,567 58
Finance costs 29,112 60,439
437,596 85,237
(Increase)/decrease in stocks (567,847 ) 18,395
Decrease in trade and other debtors 11,169 538,817
Decrease in trade and other creditors (37,073 ) (597,382 )
Cash generated from operations (156,155 ) 45,067

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024
31.12.24 1.1.24
£    £   
Cash and cash equivalents 34,798 140,906
Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 140,906 114,753


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24 Cash flow At 31.12.24
£    £    £   
Net cash
Cash at bank and in hand 140,906 (106,108 ) 34,798
140,906 (106,108 ) 34,798
Total 140,906 (106,108 ) 34,798

Smithy Mushrooms Limited (Registered number: 02480783)

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

1. STATUTORY INFORMATION

Smithy Mushrooms 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 Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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 - at varying rates on cost
Improvements to property - 5% on cost
Plant and machinery - at varying rates on cost
Motor vehicles - 20% on cost

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Stocks that are produced at the new farm site include a proportion of depreciation which is deemed to be a direct cost of the growing stock.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
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.

Smithy Mushrooms Limited (Registered number: 02480783)

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

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. TURNOVER

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

An analysis of turnover by class of business is given below:

31.12.24 31.12.23
£    £   
Sale of mushrooms 7,858,961 7,669,180
7,858,961 7,669,180

4. EMPLOYEES AND DIRECTORS
31.12.24 31.12.23
£    £   
Wages and salaries 1,819,185 1,507,887
Social security costs 166,980 133,142
Other pension costs 42,825 37,196
2,028,990 1,678,225

The average number of employees during the year was as follows:
31.12.24 31.12.23

Staff & directors 67 60

31.12.24 31.12.23
£    £   
Directors' remuneration 154,038 142,393
Directors' pension contributions to money purchase schemes 3,623 3,571

5. OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging:

31.12.24 31.12.23
£    £   
Other operating leases 11,712 5,966
Depreciation - owned assets 909,868 78,736
Loss on disposal of fixed assets 5,567 58
Auditors' remuneration 20,273 9,191

Smithy Mushrooms Limited (Registered number: 02480783)

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

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.24 31.12.23
£    £   
Loan interest 29,112 60,439

7. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
31.12.24 31.12.23
£    £   
Current tax:
R&D tax credits prior year (161,380 ) (254,448 )

Deferred tax - (17,000 )
Tax on loss (161,380 ) (271,448 )

8. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and Motor
property property machinery vehicles Totals
£    £    £    £    £   
COST
At 1 January 2024 9,527,232 61,624 4,888,277 84,100 14,561,233
Additions 418,641 - 396,335 - 814,976
Disposals - (1,978 ) (15,500 ) - (17,478 )
At 31 December 2024 9,945,873 59,646 5,269,112 84,100 15,358,731
DEPRECIATION
At 1 January 2024 - 12,102 1,108,965 36,640 1,157,707
Charge for year 454,066 2,851 443,776 9,175 909,868
Eliminated on disposal - - (8,267 ) - (8,267 )
At 31 December 2024 454,066 14,953 1,544,474 45,815 2,059,308
NET BOOK VALUE
At 31 December 2024 9,491,807 44,693 3,724,638 38,285 13,299,423
At 31 December 2023 9,527,232 49,522 3,779,312 47,460 13,403,526

9. STOCKS
31.12.24 31.12.23
£    £   
Stock packaging, oil, sundry 165,186 104,892
WIP material & labour reserves 745,254 234,586
Stock mushrooms non grown 58,069 61,184
968,509 400,662

Smithy Mushrooms Limited (Registered number: 02480783)

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

10. DEBTORS
31.12.24 31.12.23
£    £   
Amounts falling due within one year:
Trade debtors 649,146 610,554
VAT 60,460 74,636
Prepayments and accrued income 32,425 68,010
742,031 753,200

Amounts falling due after more than one year:
Deferred tax asset 60,000 60,000

Aggregate amounts 802,031 813,200

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.24 31.12.23
£    £   
Trade creditors 1,032,336 506,799
Amounts owed to associates 787,072 57,960
Social security and other taxes 43,911 45,513
Other creditors 67,793 40,470
Accrued expenses 49,517 637,848
1,980,629 1,288,590

12. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.24 31.12.23
£    £   
Within one year 80,283 67,234
Between one and five years 283,503 238,213
In more than five years 14,173 70,863
377,959 376,310

13. DEFERRED TAX
£   
Balance at 1 January 2024 (60,000 )
Balance at 31 December 2024 (60,000 )

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.12.24 31.12.23
value: £    £   
3,688,416 Ordinary £1 3,688,416 3,688,416

Smithy Mushrooms Limited (Registered number: 02480783)

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

15. RESERVES
Preference
share
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 January 2024 1,377,717 8,383,571 20,000 9,781,288
Deficit for the year (345,572 ) (345,572 )
At 31 December 2024 1,032,145 8,383,571 20,000 9,435,716

16. ULTIMATE PARENT COMPANY

Hyundai Corporation Holdings (incorporated in South Korea ) is regarded by the directors as being the company's ultimate parent company.

17. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
31.12.24 31.12.23
£    £   
Sales 595 5,336
Purchases 1,384,162 1,178,623
Amount due from related party 7 -
Amount due to related party 884,352 129,211

Other related parties
31.12.24 31.12.23
£    £   
Amount due to related party 57,960 57,960

18. POST BALANCE SHEET EVENTS

Included in amounts owed to associates in creditors falling due within one year is a formal loan of £700,000. Since the year end this loan agreement has been extended and is not due for repayment until 6 February 2026.

19. CONTROLLING PARTY

The controlling party is Smithy Mushrooms Holdings Ltd.

The ultimate controlling party is Hyundai Corporation Holdings.