REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Period |
1 October 2023 to 31 July 2024 |
for |
Strawson Produce Ltd |
REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Period |
1 October 2023 to 31 July 2024 |
for |
Strawson Produce Ltd |
Strawson Produce Ltd (Registered number: 12031914) |
Contents of the Financial Statements |
for the Period 1 October 2023 to 31 July 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Income Statement | 6 |
Other Comprehensive Income | 7 |
Balance Sheet | 8 |
Statement of Changes in Equity | 9 |
Cash Flow Statement | 10 |
Notes to the Cash Flow Statement | 11 |
Notes to the Financial Statements | 12 |
Strawson Produce Ltd |
Company Information |
for the Period 1 October 2023 to 31 July 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants & Business Advisers |
Chancery Court |
34 West Street |
Retford |
Nottinghamshire |
DN22 6ES |
Strawson Produce Ltd (Registered number: 12031914) |
Strategic Report |
for the Period 1 October 2023 to 31 July 2024 |
The directors present their strategic report for the period 1 October 2023 to 31 July 2024. |
REVIEW OF BUSINESS |
During the year, Strawson Produce Limited was acquired by Strawson Group Limited in a share for share exchange. The consolidated accounts of that group will be prepared for the first year to 31 July 2025. As part of that restructure, the year end was shortened from 30 September to 31 July to better mirror the seasonality of the trading. |
When comparing like for like periods, the turnover of the business rose to £39,773k due to strong customer sales volumes. However inflationary costs continue to be challenging and the year was blighted by a prolonged wet growing season 2023/2024. The profit before tax reported for the period to 31 July 2024 was £296k. |
The balance sheet has strengthened to £768k. |
The Directors continue to have discussions with customers around longer term arrangements to support continued investment. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Directors of the Company regularly meet to review the key risks and uncertainties that are faced by the Company or potentially will be faced by the Company in the future. The necessary steps are taken to mitigate these risks and uncertainties and an appropriate action plan agreed. |
FINANCIAL PERFORMANCE INDICATORS |
The Company's primary targets are crop supply, operational efficiency and profitability. Specific KPI's are regularly monitored and those relevant are highlighted in the trading results. |
RESEARCH AND DEVELOPMENT |
Strawson has identified a need for digitalisation transformation throughout its operations and administrative functions to drive effective decision making, and to support future automation and integration of solutions. This is forming the basis of its research and development activity which is seeking to identify means by which to establish technological infrastructure that responds to the needs of a business where data requirements are increasing exponentially. |
ON BEHALF OF THE BOARD: |
Strawson Produce Ltd (Registered number: 12031914) |
Report of the Directors |
for the Period 1 October 2023 to 31 July 2024 |
The directors present their report with the financial statements of the company for the period 1 October 2023 to 31 July 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of the sale of root vegetables. |
DIVIDENDS |
No dividends will be distributed for the period ended 31 July 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Wright Vigar Limited, 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 |
Strawson Produce Ltd |
Opinion |
We have audited the financial statements of Strawson Produce Ltd (the 'company') for the period ended 31 July 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 July 2024 and of its profit for the period 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. |
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. |
Report of the Independent Auditors to the Members of |
Strawson Produce Ltd |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). |
In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework. |
- | We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance. |
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
- | Substantive procedures performed in accordance with the ISAs (UK). |
- | Challenging assumptions and judgments made by management in its significant accounting estimates. |
- | Identifying and testing journal entries, in particular material journal entries and an assessment of year end journals. |
- | Assessing the extent of compliance with the relevant laws and regulations. |
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. |
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 |
Statutory Auditors |
Chartered Accountants & Business Advisers |
Chancery Court |
34 West Street |
Retford |
Nottinghamshire |
DN22 6ES |
Strawson Produce Ltd (Registered number: 12031914) |
Income Statement |
for the Period 1 October 2023 to 31 July 2024 |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
447,551 | 452,500 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
455,419 | 456,120 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL PERIOD |
Strawson Produce Ltd (Registered number: 12031914) |
Other Comprehensive Income |
for the Period 1 October 2023 to 31 July 2024 |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
Notes | £ | £ |
PROFIT FOR THE PERIOD |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
Strawson Produce Ltd (Registered number: 12031914) |
Balance Sheet |
31 July 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investments | 8 |
CURRENT ASSETS |
Stocks | 9 |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Strawson Produce Ltd (Registered number: 12031914) |
Statement of Changes in Equity |
for the Period 1 October 2023 to 31 July 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 October 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 September 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 July 2024 |
Strawson Produce Ltd (Registered number: 12031914) |
Cash Flow Statement |
for the Period 1 October 2023 to 31 July 2024 |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Tax paid |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
Amount introduced by directors | - | 105,430 |
Net cash from financing activities |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of period |
2 |
109,506 |
Cash and cash equivalents at end of period |
2 |
( |
) |
452,137 |
Strawson Produce Ltd (Registered number: 12031914) |
Notes to the Cash Flow Statement |
for the Period 1 October 2023 to 31 July 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
£ | £ |
Profit before taxation |
Finance costs | 159,840 | 122,984 |
Finance income | (6,937 | ) | (2,403 | ) |
448,482 | 453,717 |
(Increase)/decrease in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 31 July 2024 |
31.7.24 | 1.10.23 |
£ | £ |
Cash and cash equivalents | - | 452,137 |
Bank overdrafts | ( |
) |
(1,544,083 | ) | 452,137 |
Year ended 30 September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 452,137 | 109,506 |
3. | ANALYSIS OF CHANGES IN NET FUNDS/(DEBT) |
At 1.10.23 | Cash flow | At 31.7.24 |
£ | £ | £ |
Net cash |
Cash at bank | 452,137 | (452,137 | ) | - |
Bank overdrafts | - | (1,544,083 | ) | (1,544,083 | ) |
452,137 | ( |
) | (1,544,083 | ) |
Total | 452,137 | (1,996,220 | ) | (1,544,083 | ) |
Strawson Produce Ltd (Registered number: 12031914) |
Notes to the Financial Statements |
for the Period 1 October 2023 to 31 July 2024 |
1. | STATUTORY INFORMATION |
Strawson Produce Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
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 evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income. |
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date. |
Taxation |
Taxation for the period 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 period end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Fixed asset investments |
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Other investments are measured at cost less impairment. |
Investments in joint ventures are measured at cost less impairment. |
Strawson Produce Ltd (Registered number: 12031914) |
Notes to the Financial Statements - continued |
for the Period 1 October 2023 to 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
Biological assets |
Biological assets are living plants controlled by the company from which it expects to derive future economic benefit. Biological assets comprise crops in the ground at the year end. Growing crops are measured at the lower of cost and estimated selling price less costs to complete and sell. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
£ | £ |
An analysis of turnover by geographical market is given below: |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
£ | £ |
United Kingdom |
4. | EMPLOYEES AND DIRECTORS |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
£ | £ |
Wages and salaries |
Social security costs |
The average number of employees during the period was as follows: |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
Directors |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
£ | £ |
Directors' remuneration |
Strawson Produce Ltd (Registered number: 12031914) |
Notes to the Financial Statements - continued |
for the Period 1 October 2023 to 31 July 2024 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
£ | £ |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
£ | £ |
Loan interest |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is the same as the standard rate of corporation tax in the UK. |
Period |
1.10.23 |
to | Year Ended |
31.7.24 | 30.9.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Utilisation of tax losses | ( |
) | ( |
) |
Deferred tax movement | 25,947 | 57,638 |
Total tax charge | 73,895 | 57,638 |
Strawson Produce Ltd (Registered number: 12031914) |
Notes to the Financial Statements - continued |
for the Period 1 October 2023 to 31 July 2024 |
8. | FIXED ASSET INVESTMENTS |
Interest |
in joint |
venture |
£ |
COST |
At 1 October 2023 |
and 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 30 September 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Joint venture |
Registered office: Hooton Street, Carlton Road, Nottingham, Nottinghamshire, NG3 2NJ |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
9. | STOCKS |
2024 | 2023 |
£ | £ |
Stocks |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
VAT |
Deferred tax asset |
Prepayments and accrued income |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Trade creditors |
Tax |
Other creditors |
Accruals and deferred income |
Strawson Produce Ltd (Registered number: 12031914) |
Notes to the Financial Statements - continued |
for the Period 1 October 2023 to 31 July 2024 |
12. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
13. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank overdraft |
The bank overdraft is secured by an unlimited guarantee given by a related party company. |
14. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £0.10 | 85 | 85 |
Ordinary B | £0.10 | 15 | 15 |
100 | 100 |
15. | RELATED PARTY DISCLOSURES |
During the period ended 31 July 2024, the company made sales to companies under common control of £3,357,414 (2023: £4,372,053). Purchases were made from companies under common control of £27,515,324 (2023: £23,288,758). Loans were received from companies under common control of £22,835,244 (2023: £20,526,430) and loan repayments of £26,968,000 (2023: £25,280,000) were repaid. |
At the end of the year, the company owed £6,912,597 (2023: £3,347,898) to companies under common control, which is included within other creditors. The company was also owed £644,601 (2023: £233,730) from companies under common control, which is included within other debtors. All amounts are unsecured, repayable on demand and no guarantees have been received or given. |
16. | ULTIMATE CONTROLLING PARTY |
The controlling party is R M Strawson. |