Company registration number SC065661 (Scotland)
ALEXANDER HARLEY SEEDS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
ALEXANDER HARLEY SEEDS LIMITED
COMPANY INFORMATION
Directors
D J Harley
W B Harley
D I Robertson
Secretary
G Coulter
Company number
SC065661
Registered office
Thomanean
Milnathort
Kinross
KY13 0RF
Auditor
MHA
Chartered Accountants
6 St Colme Street
Edinburgh
EH3 6AD
ALEXANDER HARLEY SEEDS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 32
ALEXANDER HARLEY SEEDS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Review of the business

The directors are satisfied with the trading results of the group for the year. Turnover has increased by 14.3% and the group has had another profitable year.

Principal risks and uncertainties

The principal risks and uncertainties applicable to the business remain the economic conditions prevalent within the agricultural markets.

Development and performance

The group relies on a pipeline of new successful varieties of cereals, potatoes and pulses for continued success; the current candidates in a number of species are considered good prospects.

Key performance indicators

 

 

2023

 

2023

 

 

 

 

 

Turnover

 

£23,966,204

 

£20,966,874

 

 

 

 

 

Gross Profit %

20.85%

 

17.94%

 

 

 

 

 

Net Assets

£13,376,580

 

£12,321,842

 

The directors are pleased with the improvement in all three KPI's.

On behalf of the board

D J Harley
Director
20 December 2024
ALEXANDER HARLEY SEEDS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company and group continued to be that of combinable crops and potato production and marketing; potato breeders; micropropagation specialists; supply and servicing and hiring of agricultural and industrial machines; livestock and arable farming and the supply of Pirtek branded hydraulic hoses and fittings.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £819,646. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D J Harley
W B Harley
D I Robertson
Auditor

In accordance with the company's articles, a resolution proposing that MHA MacIntyre Hudson be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ALEXANDER HARLEY SEEDS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
D J Harley
Director
20 December 2024
ALEXANDER HARLEY SEEDS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALEXANDER HARLEY SEEDS LIMITED
- 4 -
Opinion

We have audited the financial statements of Alexander Harley Seeds Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

ALEXANDER HARLEY SEEDS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALEXANDER HARLEY SEEDS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor's report 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below: 

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

ALEXANDER HARLEY SEEDS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALEXANDER HARLEY SEEDS LIMITED
- 6 -

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 an auditor's report 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.

Iain Binnie (Senior Statutory Auditor)
For and on behalf of MHA
20 December 2024
Chartered Accountants
Statutory Auditor
6 St Colme Street
Edinburgh
EH3 6AD
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
ALEXANDER HARLEY SEEDS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
23,966,204
20,966,874
Cost of sales
(18,968,996)
(17,205,085)
Gross profit
4,997,208
3,761,789
Administrative expenses
(3,803,942)
(3,550,323)
Other operating income
208,874
243,546
Operating profit
4
1,402,140
455,012
Share of profits of joint ventures
1,010,795
981,441
Interest receivable and similar income
8
8,592
-
0
Interest payable and similar expenses
9
(379,145)
(334,346)
Profit before taxation
2,042,382
1,102,107
Tax on profit
10
12,002
34,758
Profit for the financial year
2,054,384
1,136,865
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ALEXANDER HARLEY SEEDS LIMITED
GROUP BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
(60,457)
(65,838)
Other intangible assets
12
9
9
Total intangible assets
(60,448)
(65,829)
Tangible assets
13
9,761,257
9,632,160
Investment properties
14
4,588,442
4,588,442
Investments
15
1,059,804
957,491
15,349,055
15,112,264
Current assets
Stocks
19
3,351,391
2,916,947
Debtors
20
3,443,396
3,474,105
Cash at bank and in hand
211,335
177,658
7,006,122
6,568,710
Creditors: amounts falling due within one year
21
(8,766,846)
(9,143,948)
Net current liabilities
(1,760,724)
(2,575,238)
Total assets less current liabilities
13,588,331
12,537,026
Creditors: amounts falling due after more than one year
22
(211,751)
(215,184)
Net assets
13,376,580
12,321,842
Capital and reserves
Called up share capital
26
403,823
409,823
Revaluation reserve
465,323
465,323
Capital redemption reserve
110,027
104,027
Other reserves
738
738
Profit and loss reserves
12,396,669
11,341,931
Total equity
13,376,580
12,321,842
The financial statements were approved by the board of directors and authorised for issue on 20 December 2024 and are signed on its behalf by:
20 December 2024
D J Harley
Director
Company registration number SC065661 (Scotland)
ALEXANDER HARLEY SEEDS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
4,403,497
3,432,060
Investment properties
14
4,270,000
4,270,000
Investments
15
2,389,660
2,693,269
11,063,157
10,395,329
Current assets
Stocks
19
1,122,067
725,882
Debtors
20
1,877,822
2,521,195
Cash at bank and in hand
30,890
136,329
3,030,779
3,383,406
Creditors: amounts falling due within one year
21
(4,024,126)
(3,431,047)
Net current liabilities
(993,347)
(47,641)
Total assets less current liabilities
10,069,810
10,347,688
Creditors: amounts falling due after more than one year
22
(211,751)
(215,184)
Net assets
9,858,059
10,132,504
Capital and reserves
Called up share capital
26
403,823
409,823
Revaluation reserve
26,000
26,000
Capital redemption reserve
110,027
104,027
Profit and loss reserves
9,318,209
9,592,654
Total equity
9,858,059
10,132,504

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £725,201 (2023 - £1,074,983).

The financial statements were approved by the board of directors and authorised for issue on 20 December 2024 and are signed on its behalf by:
20 December 2024
D J Harley
Director
Company registration number SC065661 (Scotland)
ALEXANDER HARLEY SEEDS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Revaluation reserve
Capital redemption reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 July 2022
409,823
465,323
104,027
738
10,205,066
11,184,977
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
-
-
1,136,865
1,136,865
Balance at 30 June 2023
409,823
465,323
104,027
738
11,341,931
12,321,842
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
-
2,054,384
2,054,384
Dividends
11
-
-
-
-
(819,646)
(819,646)
Own shares acquired
26
(6,000)
-
6,000
-
(180,000)
(180,000)
Balance at 30 June 2024
403,823
465,323
110,027
738
12,396,669
13,376,580
ALEXANDER HARLEY SEEDS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
409,823
26,000
104,027
8,517,671
9,057,521
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
-
1,074,983
1,074,983
Balance at 30 June 2023
409,823
26,000
104,027
9,592,654
10,132,504
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
-
725,201
725,201
Dividends
11
-
-
-
(819,646)
(819,646)
Own shares acquired
26
(6,000)
-
6,000
(180,000)
(180,000)
Balance at 30 June 2024
403,823
26,000
110,027
9,318,209
9,858,059
ALEXANDER HARLEY SEEDS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
2,708,164
(119,035)
Interest paid
(379,145)
(334,346)
Income taxes refunded
95,379
99,178
Net cash inflow/(outflow) from operating activities
2,424,398
(354,203)
Investing activities
Purchase of tangible fixed assets
(1,020,433)
(856,173)
Proceeds from disposal of tangible fixed assets
66,746
105,539
Purchase of investments
(46,318)
(104,964)
Interest received
8,592
-
0
Dividends received
954,800
1,146,366
Net cash (used in)/generated from investing activities
(36,613)
290,768
Financing activities
Purchase of own shares
(180,000)
-
0
Increase in other borrowings
652,178
6,356
Payment of finance leases obligations
(32,227)
(25,776)
Dividends paid to equity shareholders
(819,646)
-
0
Net cash used in financing activities
(379,695)
(19,420)
Net increase/(decrease) in cash and cash equivalents
2,008,090
(82,855)
Cash and cash equivalents at beginning of year
(6,354,294)
(6,271,439)
Cash and cash equivalents at end of year
(4,346,204)
(6,354,294)
Relating to:
Cash at bank and in hand
211,335
177,658
Bank overdrafts included in creditors payable within one year
(4,557,539)
(6,531,952)
ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information

Alexander Harley Seeds Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Thomanean, Milnathort, Kinross, KY13 0RF.

 

The group consists of Alexander Harley Seeds Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Alexander Harley Seeds Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures are accounted for using the equity method.

 

The profit for the group includes the group's share of the profit of its joint venture, and the consolidated balance sheet includes the group's interest in its joint venture at the book value of attributable assets.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

The turnover shown in the profit and loss account represents amounts invoiced during the year for combinable crops, potato production and breeding, micropropagation of plants, supplying and servicing and hiring of agricultural and industrial vehicles, livestock and arable farming and the supply of Pirtek branded hydraulic hoses and fittings, exclusive of Value Added Tax.

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Manufacturing Know-How
15 years straight line
Germplasm
15 years straight line
1.9
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
0-10% straight line and reducing balance
Plant and equipment
3.33-20% straight line and reducing balance
Fixtures and fittings
10-33% straight line and reducing balance
Motor vehicles
25% reducing balance
Hire fleet
15% reducing balance

Freehold land and assets in the course of construction are not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.10
Investment properties

Investment properties, which are properties held to earn rentals and/or for capital appreciation, are initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently they are measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.11
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.12
Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost comprises all direct costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow moving stock where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Debtors

Debtors with no stated interest rate and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other operating expenses.

Creditors

Creditors with no stated interest rate and payable within one year are recorded at transaction price.

 

All interest bearing loans and borrowings which are basic financial instruments are initially recognised at the present value of cash payable. After initial recognition they are measured at amortised cost.

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 19 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets useful life and residual value

Tangible fixed assets are depreciated over their useful lives taking into account expected residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In assessing asset lives factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider factors such as current and future market conditions, the expected remaining life of the asset and projected disposal values.

Stock valuation and provision

Goods for resale, machinery and purchased seeds are held at the lower of cost and net realisable value (NRV). NRV is calculated as the resale price less any expected sales costs and discounts.

 

Crops and potatoes/growing stock are held at cost plus all attributable growing expenses.

 

Grown seeds are calculated as an estimation by management. The calculation of hectares is supported by recalculations by Science and Advice for Scottish Agriculture, a government body, and the cost per hectare is calculated as the average cost of production divided by average tonnage.

 

Livestock is held at the market value. The market value is obtained from an independent valuer certified by Food Integrity Assurance made with reference to open market value based on recent auction results.

Property valuation

Investment properties are held at fair value. The fair value has been obtained through the use of an independent Chartered Surveyor based on open market value with reference to recent market activity.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Combinable crops
11,459,029
11,341,853
Potato production and breeding
7,636,621
4,672,459
Micropropagation of plants
71,622
655,005
Supply of machinery
1,485,876
1,005,530
Livestock and arable farming
359,865
408,555
Sale of hydraulic hoses and fittings
2,953,191
2,883,472
23,966,204
20,966,874
2024
2023
£
£
Other revenue
Interest income
8,592
-
ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
(9,855)
(57,429)
Hedging item gains
(26,340)
(134,205)
Depreciation of owned tangible fixed assets
706,469
739,696
Depreciation of tangible fixed assets held under finance leases
-
7,827
Loss/(profit) on disposal of tangible fixed assets
17,505
(11,825)
Amortisation of intangible assets
(5,381)
(5,381)
Operating lease charges
50,960
45,324
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
15,400
13,475
Audit of the financial statements of the company's subsidiaries
32,200
28,325
47,600
41,800
For other services
All other non-audit services
9,200
9,350
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Production
71
77
15
14
Administrative and management
17
21
7
8
Total
88
98
22
22
ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,328,939
3,307,362
761,606
632,620
Social security costs
276,883
321,611
72,631
72,149
Pension costs
383,804
252,232
57,593
28,514
3,989,626
3,881,205
891,830
733,283
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
203,021
194,638
Company pension contributions to defined contribution schemes
12,280
6,261
215,301
200,899

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
105,840
101,220
Company pension contributions to defined contribution schemes
706
-
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
8,592
-
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
362,836
312,442
Other interest on financial liabilities
8,774
11,641
Interest on finance leases and hire purchase contracts
7,535
10,263
Total finance costs
379,145
334,346
ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(13,716)
(34,758)
Adjustments in respect of prior periods
1,714
-
0
Total current tax
(12,002)
(34,758)

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
2,042,382
1,102,107
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
510,596
225,932
Permanent capital allowances in excess of depreciation
-
0
(12,948)
Research and development tax credit
(92,767)
(84,606)
Under/(over) provided in prior years
1,714
-
0
Patent box deduction
(9,767)
(12,378)
Deferred tax not recognised
(161,068)
169,406
Change in deferred tax rates
-
0
(106,207)
Joint venture tax
(266,415)
(202,226)
Other adjustments
5,705
(11,731)
Taxation credit
(12,002)
(34,758)
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
819,646
-
ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
12
Intangible fixed assets
Group
Goodwill
Manufacturing Know-How
Germplasm
Total
£
£
£
£
Cost
At 1 July 2023 and 30 June 2024
(229,577)
180,007
350,000
300,430
Amortisation and impairment
At 1 July 2023
(163,739)
179,999
349,999
366,259
Amortisation charged for the year
(5,381)
-
0
-
0
(5,381)
At 30 June 2024
(169,120)
179,999
349,999
360,878
Carrying amount
At 30 June 2024
(60,457)
8
1
(60,448)
At 30 June 2023
(65,838)
8
1
(65,829)
Company
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
346,125
Amortisation and impairment
At 1 July 2023 and 30 June 2024
346,125
Carrying amount
At 30 June 2024
-
0
At 30 June 2023
-
0

The Manufacturing Know-How and Germplasm assets above relate to the rights of certain potato varieties and the technical know-how of the potato breeding programme.

 

Negative goodwill arose on the acquisition of 80% of Senova Limited on 31 August 2006, followed by 20% on 14 January 2008. Negative goodwill also arose on the acquisition of minority interests in Alexander Harley Seeds (Milnathort) Ltd between 31 May 2008 and 31 May 2011.

 

On 29 May 2017 positive goodwill arose on the acquisition of the remaining 8.27% in Kirkforthar Potato Co. Ltd. The trade and assets of the company were transferred within the group and the company was subsequently dissolved on 28 May 2019.

ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
13
Tangible fixed assets
Group
Freehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Hire fleet
Total
£
£
£
£
£
£
£
Cost
At 1 July 2023
4,056,269
6,250
8,796,588
405,745
1,427,856
778,972
15,471,680
Additions
-
0
6,000
618,940
30,829
359,216
5,448
1,020,433
Disposals
-
0
-
0
(101,905)
-
0
(166,148)
(680)
(268,733)
Transfers
-
0
(12,250)
-
0
12,250
-
0
-
0
-
0
Assets transferred to stock
-
0
-
0
-
0
-
0
(22,500)
(193,102)
(215,602)
At 30 June 2024
4,056,269
-
0
9,313,623
448,824
1,598,424
590,638
16,007,778
Depreciation and impairment
At 1 July 2023
678,083
-
0
3,752,977
236,161
866,311
305,988
5,839,520
Depreciation charged in the year
55,261
-
0
343,410
35,967
186,862
84,969
706,469
Eliminated in respect of disposals
-
0
-
0
(54,427)
-
0
(129,470)
(585)
(184,482)
Assets transferred to stock
-
0
-
0
-
0
-
0
(20,465)
(94,521)
(114,986)
At 30 June 2024
733,344
-
0
4,041,960
272,128
903,238
295,851
6,246,521
Carrying amount
At 30 June 2024
3,322,925
-
0
5,271,663
176,696
695,186
294,787
9,761,257
At 30 June 2023
3,378,186
6,250
5,043,611
169,584
561,545
472,984
9,632,160
ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Hire fleet
Total
£
£
£
£
£
£
Cost
At 1 July 2023
2,767,441
1,748,632
229,490
192,774
308,131
5,246,468
Additions
-
0
334,279
14,052
218,481
-
0
566,812
Disposals
-
0
(89,007)
-
0
(14,995)
-
0
(104,002)
Transfers
764,035
1,493,599
-
0
-
0
-
0
2,257,634
At 30 June 2024
3,531,476
3,487,503
243,542
396,260
308,131
7,966,912
Depreciation and impairment
At 1 July 2023
374,044
1,044,833
144,734
160,629
90,168
1,814,408
Depreciation charged in the year
33,967
95,686
16,394
40,075
47,788
233,910
Eliminated in respect of disposals
-
0
(44,133)
-
0
(14,153)
-
0
(58,286)
Transfers
205,303
1,368,080
-
0
-
0
-
0
1,573,383
At 30 June 2024
613,314
2,464,466
161,128
186,551
137,956
3,563,415
Carrying amount
At 30 June 2024
2,918,162
1,023,037
82,414
209,709
170,175
4,403,497
At 30 June 2023
2,393,397
703,799
84,756
32,145
217,963
3,432,060

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
-
0
40,521
-
9,365
14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 July 2023 and 30 June 2024
4,588,442
4,270,000

Investment properties comprises farmhouses and land. The fair value of the investment properties have been arrived at on the basis of a valuation carried out on all properties between June 2022 and January 2023 by Galbraith and Graham + Sibbald Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The directors are of the opinion that investment properties have a value of no less than the carrying value.

ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
14
Investment property
(Continued)
- 26 -
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Cost
1,679,532
1,679,532
1,361,090
1,361,090
Accumulated depreciation
(550,649)
(523,427)
(550,649)
(523,427)
Carrying amount
1,128,883
1,156,105
810,441
837,663
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
2,082,184
2,432,184
Investments in joint ventures
18
744,905
688,910
13,437
13,437
Unlisted investments
314,879
268,561
294,019
247,628
Other investments
20
20
20
20
1,059,804
957,491
2,389,660
2,693,269
Movements in fixed asset investments
Group
Shares in joint ventures
Other investments
Other
Total
£
£
£
£
Cost or valuation
At 1 July 2023
688,910
268,561
20
957,491
Additions
-
46,318
-
46,318
Share of profit
1,010,795
-
-
1,010,795
Dividends
(954,800)
-
-
(954,800)
At 30 June 2024
744,905
314,879
20
1,059,804
Carrying amount
At 30 June 2024
744,905
314,879
20
1,059,804
At 30 June 2023
688,910
268,561
20
957,491
ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
15
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in subsidiaries and joint ventures
Other investments
Other
Total
£
£
£
£
Cost or valuation
At 1 July 2023
2,445,621
247,628
20
2,693,269
Additions
-
46,391
-
46,391
At 30 June 2024
2,445,621
294,019
20
2,739,660
Impairment
At 1 July 2023
-
-
-
-
Impairment losses
350,000
-
-
350,000
At 30 June 2024
350,000
-
-
350,000
Carrying amount
At 30 June 2024
2,095,621
294,019
20
2,389,660
At 30 June 2023
2,445,621
247,628
20
2,693,269
ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
16
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Alexander Harley Seeds (Milnathort) Ltd
1
Seed specialists
Ordinary
100.00
Gentech Propagation Ltd
1
Dormant
Ordinary
100.00
George Colliar
1
Agricultural equipment
Ordinary
100.00
Senova Ltd
2
Seed specialist
Ordinary
100.00
Cygnet Potato Breeders Ltd
1
Potato breeder and seed merchants
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Thomanean, Milnathort, Kinross, KY13 0RF
2
49 North Road, Great Abington, Cambridge, CB21 6AS
17
Associates

Details of associates at 30 June 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
BIPO Ltd
England
Royalty collection services
Ordinary
33.33
18
Joint ventures

Details of joint ventures at 30 June 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Indirect
Cygnet PEP Ltd
Scotland
Seed merchants
Ordinary
47.50
-
UK Pulses Ltd*
England
Pulse breeder
Ordinary
-
50.00

*50% indirectly owned via Senova Limited

19
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
318,892
292,322
326,853
300,283
Work in progress
40,121
221,115
-
-
Finished goods and goods for resale
2,992,378
2,403,510
795,214
425,599
3,351,391
2,916,947
1,122,067
725,882
ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
20
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,711,210
1,990,747
1,112,190
358,010
Corporation tax recoverable
3,074
86,451
-
0
-
0
Amounts owed by group undertakings
-
-
280,310
1,031,664
Amounts owed by undertakings in which the company has a participating interest
276,368
823,551
262,652
823,551
Other debtors
298,682
493,452
203,172
305,531
Prepayments and accrued income
154,062
79,904
19,498
2,439
3,443,396
3,474,105
1,877,822
2,521,195
21
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
23
4,557,539
6,531,952
242,964
-
0
Obligations under finance leases
24
-
0
32,227
-
0
3,842
Trade creditors
2,180,814
1,645,727
294,866
179,826
Amounts owed to group undertakings
-
0
-
0
2,607,875
3,187,742
Amounts owed to undertakings in which the group has a participating interest
9,188
101,930
-
0
-
0
Other taxation and social security
189,887
221,071
25,065
20,277
Other creditors
745,037
38,581
730,133
21,827
Accruals and deferred income
1,084,381
572,460
123,223
17,533
8,766,846
9,143,948
4,024,126
3,431,047
22
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Other borrowings
23
211,751
215,184
211,751
215,184
ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
23
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
4,557,539
6,531,952
242,964
-
0
Other loans
211,751
215,184
211,751
215,184
4,769,290
6,747,136
454,715
215,184
Payable within one year
4,557,539
6,531,952
242,964
-
0
Payable after one year
211,751
215,184
211,751
215,184

The group is party to a cross guarantee between Alexander Harley Seeds Limited and its subsidiaries with respect to the group overdraft facility. Clydesdale Bank PLC holds a floating charge across all assets of the group, as well as a standard security over the group properties at Blairfield and Easter Balgedie Farm in Kinross and Scooniehill and East Carngour in St Andrews.

24
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
32,227
-
0
3,842

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Finance leases are secured over the assets for which the finance was provided.

25
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
383,804
252,232

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
26
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
403,823
409,823
403,823
409,823

On 14 June 2024, the company bought back 6,000 £1 Ordinary shares for £30 per share. The shares were cancelled on purchase.

27
Directors and related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
513,057
671,278

Included within other creditors is £655,612 (2023 - £150,577 debtor) in respect of directors loan accounts. There is no interest charged on the outstanding balance and there are no fixed terms for repayment. Any directors loan balances due to the company will be repaid in full within nine months of the year end.

 

Included within other creditors due within one year and other creditors due after more than one year are shareholders loans of £263,260 (2023 - £129,587). There is no interest charged on the outstanding balance and there are no fixed terms for repayment.

28
Cash generated from/(absorbed by) group operations
2024
2023
£
£
Profit for the year after tax
2,054,384
1,136,865
Adjustments for:
Share of results of associates and joint ventures
(1,010,795)
(981,441)
Taxation credited
(12,002)
(34,758)
Finance costs
379,145
334,346
Investment income
(8,592)
-
0
Loss/(gain) on disposal of tangible fixed assets
17,505
(11,825)
Amortisation and impairment of intangible assets
(5,381)
(5,381)
Depreciation and impairment of tangible fixed assets
706,469
747,523
Movements in working capital:
Increase in stocks
(333,828)
(555,966)
Increase in debtors
(52,668)
(207,913)
Increase/(decrease) in creditors
973,927
(540,485)
Cash generated from/(absorbed by) operations
2,708,164
(119,035)
ALEXANDER HARLEY SEEDS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 32 -
29
Analysis of changes in net debt - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
177,658
33,677
211,335
Bank overdrafts
(6,531,952)
1,974,413
(4,557,539)
(6,354,294)
2,008,090
(4,346,204)
Borrowings excluding overdrafts
(215,184)
3,433
(211,751)
Obligations under finance leases
(32,227)
32,227
-
(6,601,705)
2,043,750
(4,557,955)
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