REGISTERED NUMBER: 00384216 (England and Wales) |
ELSOMS (SPALDING) LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
REGISTERED NUMBER: 00384216 (England and Wales) |
ELSOMS (SPALDING) LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 | to | 4 |
Report of the Independent Auditors | 5 | to | 8 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 | to | 12 |
Company Statement of Financial Position | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Statement of Cash Flows | 17 |
Notes to the Consolidated Financial Statements | 18 | to | 35 |
ELSOMS (SPALDING) LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Enterprise Way |
Pinchbeck |
Spalding |
Lincolnshire |
PE11 3YR |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
Group turnover for the year to June 2024 increased from £26.8m to £41.4m, whilst profit after tax has increased from £0.2m to £1.9m. The group continues to grow it's strong net asset position which is now £28.5m, and increase of £2.2m on the prior year. |
Our core activities are the trialling, marketing and distribution of our long-term partners' plant varieties in the UK and internationally, whilst investing in research into a range of our own bred crops. |
Our company strategy is based upon building long-term relationships with suppliers, customers and employees. By cultivating these relationships and bringing market leading varieties and seed treatments to the UK we see considerable opportunities for further growth in market share. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have responsibility for implementing a risk management strategy and monitoring compliance. |
Business risk: The main business risks identified are agricultural and horticultural related and are dependent upon the performance of those markets and the competitiveness of the group's products. Some of those risks are outside of the group's control but the directors continually review business procedures and operations to ensure that the company is running as efficiently as possible. The group has also during the year maintained UK ESTA quality assurance scheme accreditation for seed treatment and treated seed. |
There is a risk of reduction of income if market share declines. The company is however well placed with its good vegetable and agricultural seed portfolio together with its seed treatment and pelleting capabilities to increase sales. |
As with many smaller companies there is a risk if there were to be substantial change in the group's relationship with major suppliers and customers. |
Liquidity risk: The group has sufficient cash balances and short term investments to minimise liquidity problems. Cash balances are monitored on a regular basis. |
Currency risk: The group's principal currency risk is in respect of Euro/Sterling exchange rate. Procedures are in place to manage risk exposure with currency hedging arrangements. |
Credit Risk: The credit risk arises from the collection of trade debtors. Procedures have been implemented for the checking of debtors' credit risk and collection of debts in order to manage those risks. Trade debtors are regularly reviewed. |
Insurance: The group has insurance contracts in place for identified risks where possible which are regularly reviewed. |
ON BEHALF OF THE BOARD: |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of plant breeding, trialling, processing and distributing vegetable and combinable crop seeds, as well as property development and the raising and sale of trees. |
DIVIDENDS |
The directors recommend a final dividend of 11.50p (2023 - 10.00p) per ordinary and 'A' ordinary shares amounting respectively to £335,864 and £140,175 (2023 - £292,053 and £121,892). |
RESEARCH AND DEVELOPMENT |
New varieties and improved seed processes and treatments are vital for the group. The company's trading subsidiary Elsoms Seeds Limited therefore undertakes a continuous programme of research and development for new and improved varieties of vegetables, winter wheat and barley as well as into improved seed processes and treatments. It plans to continue these activities. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 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 Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
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 group'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 group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ELSOMS (SPALDING) LIMITED |
Opinion |
We have audited the financial statements of Elsoms (Spalding) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 30 June 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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 directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ELSOMS (SPALDING) LIMITED |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ELSOMS (SPALDING) LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. |
The potential impact of different laws and regulations varies considerably. Firstly, the group is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of fixed assets, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates. |
Secondly, the group is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Food Safety regulations, and Employment laws. |
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of any external health and safety audits conducted within the year for any evidence of non-compliance, in addition to an assessment of the company's employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ELSOMS (SPALDING) LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Enterprise Way |
Pinchbeck |
Spalding |
Lincolnshire |
PE11 3YR |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER |
Group and share of joint ventures | 41,372,432 | 26,759,127 |
Less: |
Share of joint ventures' turnover | (714,723 | ) | (753,860 | ) |
GROUP TURNOVER | 4 | 40,657,709 | 26,005,267 |
Cost of sales | 29,525,413 | 17,978,669 |
GROSS PROFIT | 11,132,296 | 8,026,598 |
Distribution costs | 356,832 | 315,389 |
Administrative expenses | 9,704,252 | 8,063,625 |
10,061,084 | 8,379,014 |
1,071,212 | (352,416 | ) |
Other operating income | 12,469 | - |
GROUP OPERATING PROFIT/(LOSS) | 6 | 1,083,681 | (352,416 | ) |
Share of operating (loss)/profit in |
Joint ventures | (120,920 | ) | 27,757 |
Income from other participating interests | 53,895 | 3,886 |
Income from current asset |
investments | 302,895 | (88,443 | ) |
Interest receivable and similar income | 273,755 | 177,728 |
Other finance income | 27 | 75,000 | - |
705,545 | 93,171 |
1,668,306 | (231,488 | ) |
Interest payable and similar expenses |
Group | 7 | 623 | - |
Joint ventures | - | 4,209 |
Other finance costs | 27 | - | 4,000 |
(623 | ) | (8,209 | ) |
PROFIT/(LOSS) BEFORE TAXATION | 1,667,683 | (239,697 | ) |
Tax on profit/(loss) | 8 | (252,763 | ) | (479,156 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 2,105,233 | 360,533 |
Non-controlling interests | (184,787 | ) | (121,074 | ) |
1,920,446 | 239,459 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,920,446 | 239,459 |
OTHER COMPREHENSIVE INCOME |
Remeasurement gain/(loss) on defined |
benefit pension plan | 124,000 | 2,489,000 |
Actual return on defined benefit plan |
assets less interest | 717,000 | (886,000 | ) |
Movement on deferred tax relating to |
defined benefit pension asset | (217,750 | ) | (381,500 | ) |
Income tax relating to components of other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
623,250 |
1,221,500 |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 2,543,696 | 1,460,959 |
Total comprehensive income attributable to: |
Owners of the parent | 2,680,498 | 1,582,033 |
Non-controlling interests | (136,802 | ) | (121,074 | ) |
2,543,696 | 1,460,959 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 315,248 | 337,115 |
Tangible assets | 12 | 6,510,757 | 5,880,312 |
Investments | 13 |
Interest in joint ventures |
Share of gross assets | 677,107 | 623,788 |
Share of gross liabilities | (370,023 | ) | (269,677 | ) |
307,084 | 354,111 |
Other investments | 346,087 | 342,557 |
7,479,176 | 6,914,095 |
CURRENT ASSETS |
Stocks | 14 | 7,902,046 | 6,510,437 |
Debtors | 15 | 18,841,049 | 7,541,634 |
Investments | 16 | 5,336,352 | 4,920,339 |
Cash at bank and in hand | 7,437,534 | 3,471,514 |
39,516,981 | 22,443,924 |
CREDITORS |
Amounts falling due within one year | 17 | 19,762,276 | 3,482,851 |
NET CURRENT ASSETS | 19,754,705 | 18,961,073 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 27,233,881 | 25,875,168 |
CREDITORS |
Amounts falling due after more than one year | 18 | (117,343 | ) | (30,000 | ) |
PROVISIONS FOR LIABILITIES | 22 | (36,033 | ) | (293,939 | ) |
ACCRUALS AND DEFERRED INCOME | 23 | (325,211 | ) | (320,520 | ) |
PENSION ASSET | 27 | 1,749,000 | 1,095,750 |
NET ASSETS | 28,504,294 | 26,326,459 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - continued |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 24 | 41,394 | 41,394 |
Share premium | 25 | 133,146 | 133,146 |
Capital redemption reserve | 25 | 40,813 | 40,813 |
Retained earnings | 25 | 28,566,365 | 26,251,728 |
SHAREHOLDERS' FUNDS | 28,781,718 | 26,467,081 |
NON-CONTROLLING INTERESTS | 26 | (277,424 | ) | (140,622 | ) |
TOTAL EQUITY | 28,504,294 | 26,326,459 |
The financial statements were approved by the Board of Directors and authorised for issue on 22 November 2024 and were signed on its behalf by: |
R A L Keeling - Director |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
COMPANY STATEMENT OF FINANCIAL POSITION |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Investments | 16 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 17 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 18 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 22 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 24 |
Share premium | 25 |
Capital redemption reserve | 25 |
Retained earnings | 25 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,392,112 | 743,386 |
The financial statements were approved by the Board of Directors and authorised for issue on |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 July 2022 | 41,394 | 25,083,640 | 133,146 |
Changes in equity |
Dividends | - | (413,945 | ) | - |
Total comprehensive income | - | 1,582,033 | - |
Balance at 30 June 2023 | 41,394 | 26,251,728 | 133,146 |
Changes in equity |
Dividends | - | (413,846 | ) | - |
Total comprehensive income | - | 2,728,483 | - |
Balance at 30 June 2024 | 41,394 | 28,566,365 | 133,146 |
Capital |
redemption | Non-controlling | Total |
reserve | Total | interests | equity |
£ | £ | £ | £ |
Balance at 1 July 2022 | 40,813 | 25,298,993 | (19,548 | ) | 25,279,445 |
Changes in equity |
Dividends | - | (413,945 | ) | - | (413,945 | ) |
Total comprehensive income | - | 1,582,033 | (121,074 | ) | 1,460,959 |
Balance at 30 June 2023 | 40,813 | 26,467,081 | (140,622 | ) | 26,326,459 |
Changes in equity |
Dividends | - | (413,846 | ) | - | (413,846 | ) |
Total comprehensive income | - | 2,728,483 | (136,802 | ) | 2,591,681 |
Balance at 30 June 2024 | 40,813 | 28,781,718 | (277,424 | ) | 28,504,294 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 June 2023 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 June 2024 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 5,157,812 | (542,263 | ) |
Interest paid | (623 | ) | (4,000 | ) |
Defined benefit pension costs | (30,000 | ) | 77,000 |
Tax paid | 314,769 | 278,061 |
Net cash from operating activities | 5,441,958 | (191,202 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,456,135 | ) | (1,091,804 | ) |
Purchase of fixed asset investments | (3,530 | ) | (49,121 | ) |
Sale of tangible fixed assets | 30,724 | 23,822 |
Withdrawals from investments | - | 2,000,000 |
Income from joint ventures | 47,027 | - |
Interest received | 145,927 | 64,210 |
Dividends received | 53,895 | 53,886 |
Net cash from investing activities | (1,182,092 | ) | 1,000,993 |
Cash flows from financing activities |
New HP | 120,000 | - |
Capital repayments in year | - | (30,000 | ) |
Equity dividends paid | (413,846 | ) | (413,945 | ) |
Net cash from financing activities | (293,846 | ) | (443,945 | ) |
Increase in cash and cash equivalents | 3,966,020 | 365,846 |
Cash and cash equivalents at beginning of year | 2 | 3,471,514 | 3,105,668 |
Cash and cash equivalents at end of year | 2 | 7,437,534 | 3,471,514 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit/(loss) before taxation | 1,667,683 | (239,697 | ) |
Depreciation charges | 806,250 | 792,412 |
(Profit)/loss on disposal of fixed assets | (11,284 | ) | 7,454 |
Investment charges | 28,152 | 34,023 |
Income from joint ventures | 120,920 | (27,757 | ) |
Amortisation | 21,867 | 21,867 |
Finance costs | 623 | 8,209 |
Finance income | (705,545 | ) | (93,171 | ) |
1,928,666 | 503,340 |
Increase in stocks | (1,391,609 | ) | (758,459 | ) |
Increase in trade and other debtors | (11,622,922 | ) | (487,376 | ) |
Increase in trade and other creditors | 16,243,677 | 200,232 |
Cash generated from operations | 5,157,812 | (542,263 | ) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 7,437,534 | 3,471,514 |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 3,471,514 | 3,105,668 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,471,514 | 3,966,020 | 7,437,534 |
3,471,514 | 3,966,020 | 7,437,534 |
Liquid resources |
Current asset investments | 4,920,339 | 416,013 | 5,336,352 |
4,920,339 | 416,013 | 5,336,352 |
Debt |
Hire purchase and finance leases | (60,000 | ) | (120,000 | ) | (180,000 | ) |
(60,000 | ) | (120,000 | ) | (180,000 | ) |
Total | 8,331,853 | 4,262,033 | 12,593,886 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | GENERAL INFORMATION |
Elsoms (Spalding) Limited is a limited company incorporated in England and Wales. The address of the registered office is given in the company information on page one of these financial statements. The nature of the group's operations and principal activities are detailed in the report of the directors on page 3. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
2. | STATUTORY INFORMATION |
Elsoms (Spalding) Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Basis of consolidation |
The group accounts consolidate the financial statements of the company and its subsidiary undertakings. Intra-group profits are eliminated on consolidation. |
Joint ventures |
Joint Ventures are stated at the balance sheet date being the group share of the Joint Ventures net assets. From the date of acquisition an appropriate share of the Joint Ventures profit or loss for the year has been accounted for in the groups consolidated profit and loss account. |
Profits from the sale of assets to joint ventures are only recognised in proportion to third parties' interests in these entities. The remaining profits would be recognised when the asset is sold by joint venture to unrelated parties. |
Significant judgements and estimates |
In the application of the Group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below: |
(i) Defined benefit scheme |
The Group has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the statement of financial position. The assumptions reflect historical experience and current trends. See note 26 for the disclosures relating to the defined benefit pension scheme. |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover represents the invoiced value of goods sold and services provided to customers during the year, excluding value added tax and trade discounts. Sales of seeds are recognised upon delivery of product to the customer. Royalties are recognised for the period in which they are due. Property sales are recognised on completion of the sales contract and conveyance of the land. Turnover is wholly attributable to the principal activities of the company. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Development costs are being amortised evenly over their estimated useful economic life. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write each asset down to its estimated residual value evenly over its expected useful life, as follows: |
Freehold buildings | over 10 or 40 years |
Plant and machinery | over 3, 5 or 10 years |
Motor vehicles | over 4 or 5 years |
Other equipment | over 4, 5 or 10 years |
Computer software | over 3, 4 or 5 years |
Improvements to property | over 10 years |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to sell. Costs include all costs of purchase and other costs incurred in bringing stock to its present location and condition. |
Stocks are valued using the FIFO valuation method. Provision is made for damaged, obsolete and slow moving stock where appropriate. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the income statement over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
Defined Benefit Scheme |
The company operates defined benefit scheme providing benefits paid based on final pensionable pay. The assets of the scheme are held separately from the company in independently administered funds. Contributions to the defined benefit scheme are charged in accordance with section 28 of Financial Reporting Standard 102 "Employee Benefits". |
The defined benefit scheme was closed to new members from 22 May 2003. |
Defined Contribution Scheme |
The company also operates a defined contribution scheme. |
The amount charged to the profit and loss account in respect of pension costs and other post retirement benefits is the contribution payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet. |
Financial instruments |
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cashflows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price,unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are measured at amortised cost using the effective interest method. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss. |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Investments |
Fixed asset investments are held at cost less impairment. |
Current asset investments are held at fair value based on market value at the year end. Changes in fair value are included in the income statement in the period to which they relate. |
4. | TURNOVER |
The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Sales | 38,914,076 | 24,433,631 |
Royalties | 1,291,183 | 1,571,636 |
Sale of development land | 452,450 | - |
40,657,709 | 26,005,267 |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom | 31,021,564 | 26,005,267 |
Europe | 9,636,145 | - |
40,657,709 | 26,005,267 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 5,598,867 | 4,175,188 |
Social security costs | 508,083 | 493,088 |
Other pension costs | 401,776 | 373,858 |
6,508,726 | 5,042,134 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Management, administration and sales | 107 | 91 |
R & D, trials and logistics | 29 | 29 |
Non-executive directors | 5 | 5 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 566,871 | 604,851 |
Directors' pension contributions to money purchase schemes | 41,112 | 39,508 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 4 | 4 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 135,097 | 145,304 |
Pension contributions to money purchase schemes | 14,004 | 13,668 |
6. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases | 54,869 | 30,959 |
Depreciation - owned assets | 806,250 | 792,412 |
(Profit)/loss on disposal of fixed assets | (11,284 | ) | 7,454 |
Development costs amortisation | 21,867 | 21,867 |
Auditors' remuneration | 36,644 | 22,478 |
Auditors' remuneration for |
other services | 27,985 | 12,339 |
Foreign exchange differences | (12,719 | ) | - |
Research and development costs | 1,867,663 | 2,001,124 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 623 | - |
8. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 30,422 | (270,329 | ) |
Adjustments re prior year tax | (25,279 | ) | 7,701 |
Joint ventures corporation tax | - | (39,746 | ) |
Total current tax | 5,143 | (302,374 | ) |
Deferred tax | (257,906 | ) | (176,782 | ) |
Tax on profit/(loss) | (252,763 | ) | (479,156 | ) |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
8. | TAXATION - continued |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit/(loss) before tax | 1,667,683 | (239,697 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
416,921 |
(59,924 |
) |
Effects of: |
Expenses not deductible for tax purposes | 170,797 | 56,098 |
Income not taxable for tax purposes | (95,034 | ) | (972 | ) |
Capital allowances in excess of depreciation | - | (28,778 | ) |
Depreciation in excess of capital allowances | 7,693 | - |
Adjustments to tax charge in respect of previous periods | (85,226 | ) | (194,061 | ) |
Additional tax relief on research and development | (401,548 | ) | (454,609 | ) |
Tax losses carried forward | 121,265 | 204,413 |
Prior year adjustment on deferred tax | (387,038 | ) | - |
Change in rate and marginal relief | (593 | ) | (1,323 | ) |
Total tax credit | (252,763 | ) | (479,156 | ) |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Remeasurement gain/(loss) on defined |
benefit pension plan | 124,000 | - | 124,000 |
Actual return on defined benefit plan |
assets less interest | 717,000 | - | 717,000 |
Movement on deferred tax relating to |
defined benefit pension asset | (217,750 | ) | - | (217,750 | ) |
623,250 | - | 623,250 |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Remeasurement gain/(loss) on defined |
benefit pension plan | 2,489,000 | - | 2,489,000 |
Actual return on defined benefit plan |
assets less interest | (886,000 | ) | - | (886,000 | ) |
Movement on deferred tax relating to |
defined benefit pension asset | (381,500 | ) | - | (381,500 | ) |
1,221,500 | - | 1,221,500 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of 1p each |
Final | 293,338 | 292,053 |
A Ordinary shares of 1p each |
Final | 120,508 | 121,892 |
413,846 | 413,945 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Development |
costs |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 437,339 |
AMORTISATION |
At 1 July 2023 | 100,224 |
Amortisation for year | 21,867 |
At 30 June 2024 | 122,091 |
NET BOOK VALUE |
At 30 June 2024 | 315,248 |
At 30 June 2023 | 337,115 |
12. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 July 2023 | 4,688,618 | 173,452 | 3,805,390 |
Additions | - | 44,743 | 284,812 |
Disposals | - | - | (2,850 | ) |
Reclassification/transfer | - | (173,452 | ) | (35,381 | ) |
At 30 June 2024 | 4,688,618 | 44,743 | 4,051,971 |
DEPRECIATION |
At 1 July 2023 | 1,947,190 | - | 3,152,169 |
Charge for year | 126,541 | - | 165,282 |
Eliminated on disposal | - | - | (2,565 | ) |
Reclassification/transfer | - | - | (201,960 | ) |
At 30 June 2024 | 2,073,731 | - | 3,112,926 |
NET BOOK VALUE |
At 30 June 2024 | 2,614,887 | 44,743 | 939,045 |
At 30 June 2023 | 2,741,428 | 173,452 | 653,221 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Other | Motor |
equipment | vehicles | Totals |
£ | £ | £ |
COST |
At 1 July 2023 | 7,041,021 | 326,125 | 16,034,606 |
Additions | 1,075,254 | 51,326 | 1,456,135 |
Disposals | (249,062 | ) | (101,387 | ) | (353,299 | ) |
Reclassification/transfer | 208,833 | - | - |
At 30 June 2024 | 8,076,046 | 276,064 | 17,137,442 |
DEPRECIATION |
At 1 July 2023 | 4,788,911 | 266,024 | 10,154,294 |
Charge for year | 488,034 | 26,393 | 806,250 |
Eliminated on disposal | (233,807 | ) | (97,487 | ) | (333,859 | ) |
Reclassification/transfer | 201,960 | - | - |
At 30 June 2024 | 5,245,098 | 194,930 | 10,626,685 |
NET BOOK VALUE |
At 30 June 2024 | 2,830,948 | 81,134 | 6,510,757 |
At 30 June 2023 | 2,252,110 | 60,101 | 5,880,312 |
Included in cost of freehold property is freehold land of £1,339,414 (2023 - £1,339,414) which is not depreciated. |
Company |
Freehold |
property |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Included in cost of freehold property is freehold land of £1,339,414 (2023 - £1,339,414) which is not depreciated. |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | FIXED ASSET INVESTMENTS |
Group |
Shares in | Interest |
group | in joint | Unlisted |
undertakings | ventures | investments | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2023 | 69,839 | 354,111 | 272,718 | 696,668 |
Additions | 3,530 | - | - | 3,530 |
Share of profit | - | (47,027 | ) | - | (47,027 | ) |
At 30 June 2024 | 73,369 | 307,084 | 272,718 | 653,171 |
NET BOOK VALUE |
At 30 June 2024 | 73,369 | 307,084 | 272,718 | 653,171 |
At 30 June 2023 | 69,839 | 354,111 | 272,718 | 696,668 |
Interest in joint ventures |
Elsoms Wheat Limited and Elsoms Ackermann Barley Limited |
The group's share of Elsoms Wheat Limited and Elsoms Ackermann Barley Limited is as follows: |
2024 | 2023 |
£ | £ |
Turnover | 714,723 | 735,860 |
(Loss)/profit before tax | (70,920 | ) | 23,548 |
Taxation | 73,893 | 39,746 |
Profit after tax | 2,973 | 63,294 |
Share of assets |
Fixed assets | 490,766 | 541,630 |
Current assets | 186,342 | 82,157 |
Share of liabilities |
Liabilities due within one year | (346,195 | ) | (244,045 | ) |
Liabilities due after one year or more | (23,830 | ) | (25,632 | ) |
Share of net assets | 307,083 | 354,110 |
Company |
Shares in |
group | Unlisted |
undertakings | investments | Totals |
£ | £ | £ |
COST |
At 1 July 2023 |
and 30 June 2024 | 791,130 |
NET BOOK VALUE |
At 30 June 2024 | 791,130 |
At 30 June 2023 | 791,130 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Pinchbeck Road, Spalding, Lincolnshire, England, PE11 1QG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: C/O Elsoms Seeds Limited, Pinchbeck Road, Spalding, Lincolnshire, England, PE11 1QG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: C/O Elsoms Seeds Limited, Pinchbeck Road, Spalding, Lincolnshire, England, PE11 1QG |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 9a High Street, Haddington, EH41 3ES |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Industriestrasse 2a, 38350, Helmstedt, Germany |
Nature of business: |
% |
Class of shares: | holding |
Joint ventures |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | FIXED ASSET INVESTMENTS - continued |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Shares in group undertakings include shares in the holding company of £69,937 (2023 - £69,937) which are an investment in an Employee Benefit Trust. The shares may be issued to employees as part of any entitlement to shares under the rules of the profit sharing scheme, which has ceased accepting further contributions. Under the rules of the employee benefit trust the shares may be held until 2078. |
The figures for the year ended 30 June 2024 for Elsoms Seeds Limited, Elsoms Developments Limited, Elsoms Trees Limited and Elsoms International GmbH are included within the consolidated financial statements. |
14. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Seeds | 4,785,614 | 4,672,156 |
Consumables and sundries | 678,415 | 825,762 | - | - |
Work in progress - land development costs | - | 447,894 |
Work in progress - crops | 1,302,696 | - | - | - |
Finished goods | 1,135,321 | 564,625 |
7,902,046 | 6,510,437 |
There is no material difference between the carrying cost of stocks and its replacement value. |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 16,427,372 | 5,548,963 |
Amounts owed by group undertakings | - | - |
Amounts owed by participating interests | 333,515 | 91,861 | - | - |
Other debtors | 677,110 | 141,142 |
Tax | 245,120 | 565,032 |
VAT | 90,156 | 126,782 |
Prepayments and accrued income | 1,067,776 | 1,067,854 |
18,841,049 | 7,541,634 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
16. | CURRENT ASSET INVESTMENTS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Listed investments | 5,336,352 | 4,920,339 | 5,336,352 | 4,920,339 |
Market value of listed investments at 30 June 2024 held by the group and the company - £ (5,336,352) (2023 - £ (4,920,339) ). |
17. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts and finance leases (see note 19) | 62,657 |
30,000 |
Trade creditors | 18,194,884 | 2,861,215 |
Taxation | 7,782 | - |
Other taxes and social security | 173,829 | 143,180 |
Other creditors | 282,947 | 117,361 |
Accruals and deferred income | 1,040,177 | 331,095 |
19,762,276 | 3,482,851 |
18. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Hire purchase contracts and finance leases (see note 19) | 117,343 |
30,000 |
Amounts owed to group undertakings | - | - | 326,227 | 326,227 |
117,343 | 30,000 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts | Finance leases |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Net obligations repayable: |
Within one year | 32,657 | - | 30,000 | 30,000 |
Between one and five years | 117,343 | - | - | 30,000 |
150,000 | - | 30,000 | 60,000 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
19. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 180,241 | 169,890 |
Between one and five years | 347,704 | 407,690 |
527,945 | 577,580 |
Operating lease payments recognised as an expense in the year amounted to £176,258 (2023 - £135,019) |
20. | SECURED DEBTS |
The bank facilities are secured by an unlimited guarantee from Elsoms (Spalding) Limited, Elsoms Seeds Limited and Elsoms Developments Limited. |
21. | FINANCIAL INSTRUMENTS |
Group |
The group has the following financial instruments: |
2024 | 2023 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Trade debtors | 16,427,372 | 5,548,963 |
Other debtors | 677,110 | 141,142 |
Financial liabilities measured at amortised cost |
Trade creditors | 18,194,884 | 2,861,215 |
Other creditors | 282,947 | 117,361 |
Company |
The company has the following financial instruments: |
2024 | 2023 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Amounts owed from group | 3,157,714 | 2,662,653 |
Other debtors | 50,000 | 50,000 |
Financial liabilities measured at amortised cost |
Other creditors | 14,019 | 14,019 |
Amounts owed to group | 326,227 | 326,227 |
There is no interest income or expense for financial assets and liabilities that are not measured at fair value through profit and loss. |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
22. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 412,615 | 548,397 | 27,747 | 250,028 |
Other timing differences | (11,496 | ) | (6,366 | ) | - | - |
Losses | (365,086 | ) | (248,092 | ) | - | - |
36,033 | 293,939 | 27,747 | 250,028 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2023 | 293,939 |
Provided during year | (257,906 | ) |
Balance at 30 June 2024 | 36,033 |
Company |
Deferred |
tax |
£ |
Balance at 1 July 2023 |
Credit to Income Statement during year | ( |
) |
Balance at 30 June 2024 |
23. | ACCRUALS AND DEFERRED INCOME |
Group |
2024 | 2023 |
£ | £ |
Accruals and deferred income | 325,211 | 320,520 |
24. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | 1p | 29,205 | 29,204 |
A Ordinary | 1p | 12,189 | 12,190 |
41,394 | 41,394 |
Shareholders rights |
Both ordinary and 'A' ordinary shares confer the right to receive notice of and attend general meetings but only ordinary shares confer the right to vote. |
The amount of dividend paid to the ordinary shares must not exceed by more than 10% pari passu the amount of dividend paid to the 'A' ordinary shares during any consecutive period of five years. |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
25. | RESERVES |
Group |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 July 2023 | 26,251,728 | 133,146 | 40,813 | 26,425,687 |
Profit for the year | 2,105,233 | - | - | 2,105,233 |
Dividends | (413,846 | ) | - | - | (413,846 | ) |
Other comprehensive income | 623,250 | - | - | 623,250 |
At 30 June 2024 | 28,566,365 | 133,146 | 40,813 | 28,740,324 |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 July 2023 | 12,562,111 |
Profit for the year | - | - |
Dividends | ( |
) | - | - | ( |
) |
At 30 June 2024 | 13,540,377 |
Share premium |
Share premium represents amounts paid above the nominal value for shares. |
Capital redemption reserve |
The capital redemption reserve relates to amounts paid following a redemption or share buyback. |
Retained earnings |
Retained earnings represents cumulative profit and losses net of dividends and other adjustments. |
26. | NON-CONTROLLING INTERESTS |
Movements to non-controlling interests are as set out in the consolidated statement of changes in equity. |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
27. | EMPLOYEE BENEFIT OBLIGATIONS |
DEFINED CONTRIBUTION SCHEME |
The company operates a defined contribution scheme whose assets are held separately from those of the company in independently administered funds. The pension charge represents contributions payable by the group and amounted to £401,776 (2023 - £374,137). Contributions totalling £47,730 (2023 - £46,668) were payable to the schemes at the year end. |
DEFINED BENEFIT SCHEME |
The company operates a defined benefit pension scheme in the UK. The disclosures set out below are based on calculations carried out as at 30 June 2024 by a qualified independent actuary. |
The Scheme's assets are held in a separate trustee-administered fund to meet long-term pension liabilities to past and present employees. The trustees of the Scheme are required to act in the best interests of the Scheme's beneficiaries. The appointment of members of the trustee board is determined by the trust documentation. |
The liabilities of the defined benefit scheme are measured by discounting the best estimate of future cash flows to be paid out of the Scheme using the projected unit method. This amount is reflected in the deficit in the balance sheet. The projected unit method is an accrued benefits valuation method in which the Scheme's liabilities make allowance for projected earnings. |
The liabilities set out in this note have been calculated based on the actuarial valuation as at 31 December 2020, updated to 30 June 2024. The results of the calculations and the assumptions adopted are shown below. |
As at 30 June 2024, contributions are payable to the Scheme by the company at the rates set out in the schedule of contributions dated 25 August 2021. The company contributions expected to be made in the year commencing 1 July 2024 are approximately £41,000. |
The amounts recognised in profit or loss are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Current service cost | 83,000 | 109,000 |
Net interest from net defined benefit asset/liability |
(75,000 |
) |
4,000 |
Past service cost | - | - |
8,000 | 113,000 |
Actual return on plan assets | 1,415,000 | (339,000 | ) |
Of the total amounts recognised in the profit and loss account £75,000 (2023 - £4,000) has been debited to other finance costs and £83,000 (2023 - £109,000) has been debited to operating profit. |
Changes in the present value of the defined benefit obligation are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Opening defined benefit obligation | 12,357,000 | 14,710,000 |
Current service cost | 83,000 | 109,000 |
Contributions by scheme participants | 20,000 | 19,000 |
Interest cost | 623,000 | 551,000 |
Actuarial losses/(gains) | (124,000 | ) | (2,489,000 | ) |
Benefits paid | (864,000 | ) | (543,000 | ) |
12,095,000 | 12,357,000 |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
27. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Changes in the fair value of scheme assets are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Opening fair value of scheme assets | 13,818,000 | 14,645,000 |
Contributions by employer | 38,000 | 36,000 |
Contributions by scheme participants | 20,000 | 19,000 |
Expected return | 698,000 | 547,000 |
Actuarial gains/(losses) | 717,000 | (886,000 | ) |
Benefits paid | (864,000 | ) | (543,000 | ) |
14,427,000 | 13,818,000 |
The amounts recognised in other comprehensive income are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
£ | £ |
Gain/(loss) on scheme assets and liabilities | 124,000 | 2,489,000 |
124,000 | 2,489,000 |
The major categories of scheme assets as a percentage of total scheme assets are as follows: |
Defined benefit |
pension plans |
2024 | 2023 |
Equities | 33.50% | 32.00% |
Bonds | 5.39% | 6.00% |
Other | 61.11% | 62.00% |
100.00% | 100.00% |
Principal actuarial assumptions at the balance sheet date (expressed as weighted averages): |
2024 | 2023 |
Discount rate | 5.20% | 5.20% |
Future salary increases | 3.70% | 3.70% |
Future pension increases | 2.80% | 2.80% |
Increases in deferment (non-GMP) | 3.20% | 3.20% |
Inflation | 3.20% | 3.20% |
ELSOMS (SPALDING) LIMITED (REGISTERED NUMBER: 00384216) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
27. | EMPLOYEE BENEFIT OBLIGATIONS - continued |
Increases in pensions in payment (in respect of service after 5 April 1997) , and deferred pensions subject to statutory revaluation, have been assumed to increase in line with future price inflation. |
The mortality assumption adopted for the purposes of the calculations as at 30 June 2024 is as follows: |
- S4PFA base table |
- Future mortality improvements: CMI 2023 projections subject to a long term rate of improvement of 1.25%pa. |
Average life expectancies | 2024 | 2023 |
Male retiring at reporting date at age 65 (in years) | 21.2 | 21.4 |
Male retiring at age 65 in 20 years | 22.5 | 22.6 |
Female retiring at reporting date at age 65 | 23.7 | 23.9 |
Female retiring at age 65 in 20 years | 25.2 | 25.3 |
Members are assumed to retire at the earliest age at which they can take their full pension unreduced. It is assumed that members commute 60% of the maximum allowable at retirement. |
28. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Entities over which the entity has control, joint control or significant influence |
2024 | 2023 |
£ | £ |
Charged | 1,266,564 | 767,279 |
Covered expenditure per the owner agreement | 1,416,886 | 735,009 |
Amount due from related party | 3,230,741 | 1,888,898 |
Amount due to related party | - | 166,000 |
Entities with common directors |
2024 | 2023 |
£ | £ |
Purchases | 30,751 | 183,318 |
Transfers | - | 20,216 |
Amount due to related party | 5,960 | - |
29. | ULTIMATE CONTROLLING PARTY |
There is no ultimate controlling party. |