Company registration number SC176353 (Scotland)
CYGNET POTATO BREEDERS LTD.
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PAGES FOR FILING WITH REGISTRAR
CYGNET POTATO BREEDERS LTD.
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
CYGNET POTATO BREEDERS LTD.
BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
9
9
Tangible assets
4
161,346
151,877
Investments
5
20,858
20,858
182,213
172,744
Current assets
Stocks
98,584
138,193
Debtors
6
2,237,087
2,008,736
Cash at bank and in hand
176,871
12,091
2,512,542
2,159,020
Creditors: amounts falling due within one year
7
(1,396,739)
(1,510,849)
Net current assets
1,115,803
648,171
Net assets
1,298,016
820,915
Capital and reserves
Called up share capital
8
1,000,000
1,000,000
Profit and loss reserves
298,016
(179,085)
Total equity
1,298,016
820,915
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
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:
D J Harley
Director
Company registration number SC176353 (Scotland)
CYGNET POTATO BREEDERS LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
1
Accounting policies
Company information
Cygnet Potato Breeders Ltd. is a private company limited by shares incorporated in Scotland. The registered office is Thomanean, Milnathort, Kinross, KY13 0RF.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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. The principal accounting policies adopted are set out below.
Cygnet Potato Breeders Ltd. is a wholly owned subsidiary of Alexander Harley Seeds Limited and the results of Cygnet Potato Breeders Ltd. are included in the consolidated financial statements of Alexander Harley Seeds Limited which are available from Thomanean, Milnathort, Kinross, KY13 0RF.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
1.3
Turnover
The turnover shown in the profit and loss account represents amounts invoiced in respect of potatoes sold during the year, exclusive of Value Added Tax.
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.
1.4
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.
1.5
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
CYGNET POTATO BREEDERS LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 3 -
1.6
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
2% straight line
Plant and equipment
15% straight line
Fixtures and fittings
20% reducing balance
Motor vehicles
25% reducing balance
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 credited or charged to profit or loss.
The carrying value of tangible fixed assets are reviewed for impairment when events or changes in the circumstances indicate the carrying value may not be recoverable.
1.7
Fixed asset investments
Equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, are recognised at cost less impairment until a reliable measure of fair value becomes available.
1.8
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.
1.9
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.
1.10
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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 or receivable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
CYGNET POTATO BREEDERS LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 4 -
Creditors
Creditors with no stated interest rate and payable within one year are recorded at transaction price.
All interest bearing loans and borrowing which are basic financial instruments are initially recorded at the present value of cash payable. After initial recognition they are measured at amortised cost.
1.11
Equity instruments
Equity instruments issued by the company 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 company.
1.12
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 company’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 when the company has 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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
CYGNET POTATO BREEDERS LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
7
8
3
Intangible fixed assets
Manufacturing know-how
Germplasm
Total
£
£
£
Cost
At 1 July 2023 and 30 June 2024
180,007
350,000
530,007
Amortisation and impairment
At 1 July 2023 and 30 June 2024
179,999
349,999
529,998
Carrying amount
At 30 June 2024
8
1
9
At 30 June 2023
8
1
9
4
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
107,810
164,286
30,115
92,602
394,813
Additions
32,290
32,290
At 30 June 2024
107,810
196,576
30,115
92,602
427,103
Depreciation and impairment
At 1 July 2023
27,491
134,502
26,029
54,914
242,936
Depreciation charged in the year
2,156
10,426
817
9,422
22,821
At 30 June 2024
29,647
144,928
26,846
64,336
265,757
Carrying amount
At 30 June 2024
78,163
51,648
3,269
28,266
161,346
At 30 June 2023
80,319
29,784
4,086
37,688
151,877
CYGNET POTATO BREEDERS LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
5
Fixed asset investments
2024
2023
£
£
Unlisted investments
20,858
20,858
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,368,652
773,269
Corporation tax recoverable
3,074
27,053
Amounts owed by group undertakings
800,000
1,200,000
Other debtors
65,361
8,414
2,237,087
2,008,736
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
20,716
726,191
Trade creditors
1,155,224
681,151
Taxation and social security
7,273
7,264
Accruals and deferred income
213,526
96,243
1,396,739
1,510,849
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000,000
1,000,000
1,000,000
1,000,000
9
Financial commitments, guarantees and contingent liabilities
The company is party to a cross guarantee between Senova Ltd, Alexander Harley Seeds (Milnathort) Limited, Gentech Propagation Ltd, Cygnet Potato Breeders Ltd, George Colliar Ltd and Alexander Harley Seeds Limited 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.
10
Related party transactions
The directors are of the opinion that transactions with the parent company and fellow group subsidiaries are
conducted under normal market conditions and on an arm's length basis and therefore do not need to be
disclosed under FRS 102 section 1A appendix C.
CYGNET POTATO BREEDERS LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Iain Binnie
Statutory Auditor:
MHA
Date of audit report:
20 December 2024