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Registration number: 03873206

Arundel Kerr Produce Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 30 June 2024

 

Arundel Kerr Produce Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Consolidated Profit and Loss Account

9

Consolidated Balance Sheet

10

Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Statement of Cash Flows

15

Notes to the Financial Statements

16 to 38

 

Arundel Kerr Produce Limited

Company Information

Directors

J M Warburton

B W Kerr

R D Arundel

B R Mordue

R Crate

Company secretary

E S Arundel

Registered office

Pegasus House
Pegasus Road
Elsham Wold Ind. Estate
Elsham
North Lincolnshire
DN20 0SQ

Auditors

Forrester Boyd
Chartered Accountants
Waynflete House
139 Eastgate
Louth
Lincolnshire
LN11 9QQ

 

Arundel Kerr Produce Limited

Strategic Report for the Year Ended 30 June 2024

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

Principal activity

The principal activity of the Group is that of marketing agricultural produce

Fair review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the period and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

In 2024, the fresh food market navigated a complex landscape shaped by the many factors that affect demand, including lingering inflationary pressures, shifting consumer behaviors, and evolving demands. The directors believe that the UK potato industry has seen a positive impact of price rises being passed back to farmers, as such, creating more opportunities and appetite within the industry.

The group continues to strive towards its aims of being a fully integrated supply partner in the potato industry, with a strong presence in all sectors of the market. In November 2023 the group acquired 84% share capital in Wolds Produce Holdings Limited, a 100% shareholder of Wolds Produce Limited. The board of directors considered this an exciting opportunity to expand the current team and offerings within the market, strengthening Arundel Kerr Produce Limited and supporting the group in achieving its goals. Now, one year on, the directors feel that this investment is already achieving their aims, integrating teams, knowledge and a wider access to the market for our growers.

Wolds Produce Holdings Limited, and Wolds Produce Limited form part of the consolidated group accounts for 2024.

Sales for the year to June 2024 were £26,922,254 compared to £13,620,251 in 2023, a 97% increase. The group continues with its strategy to secure several major contracts to help ensure that the group remains profitable and protecting it against the risk of a volatile market.

The gross profit for 2024 has increased 141% this year with a profit of £2,696,709 compared to £1,119,304 and we have experienced an increase in the gross profit margin percentage of 10.0% compared to 8.2% in 2023. This is due in part to economies of scales achieved across the group companies.

Administrative expenses have increased in the year by 79%. Finance costs have doubled. The BOE base rate has only increased by 0.25% in Aug 2023, slowing down compared to the previous years rise’s. Finance costs have also increased due to the groups decision to invest in the purchase of another company within the industry, as detailed above.

The directors undergo a continuous review of overheads to assess any savings available and to ensure that these are controlled and correctly apportioned across other companies which use the central services of the group.

The overall outcome for the year is an increase in operating profit due to the new companies acquired in the year with an operating profit of £958,350 compared to £145,941 in 2023.

During the year the business has remained committed to investing in its tangible assets and regularly assesses the need to invest internally to ensure they can continue to provide the high level of service and professional image that stands out with its customers. This has been balanced with the need to ensure the business has adequate working capital.

Due to a period of investment in assets & subsidiary companies, the group increased its long-term borrowings in both hire purchase and bank loan debts due. With borrowings under bank loans increasing to £674,843 from £118,235 and finance leases increasing to £1,227,126 from £607,714.

The bank overdraft at the yearend was of a similar level to the previous year, indicating that the group has managed its working capital during the year, whilst continuing to invest in equipment and future development.

 

Arundel Kerr Produce Limited

Strategic Report for the Year Ended 30 June 2024

Key financial performance indicators

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the group as a whole; these being, but not limited to product sales and transport and storage income, gross margin and return on capital employed.

The directors review the company's KPI's quarterly in comparison to previous periods and budgeted KPI's. As well as sales and profit margins the directors also monitor working capital and EBITDA which at the year end was £661,332 (2023 - £797,580).

Gross profit has increase with this year being £2,696,709 compared to £1,119,304 and the gross margin have increased slightly from 8.2% to 10%.

The company's balance sheet has increased 22.6% in the year with net assets of £2,274,653 at 30 June 2024 compared to net assets of £1,854,701 at 30 June 2023 and the directors expect this to continue to increase.

During the current economic climate the group is keeping a very close control on its trading cycle ensuring debtors are kept to a minimum and creditor terms are utilised fully.

Principal risks and uncertainties

The directors continually assess the market conditions and price volatilities to allow them to make informed decisions when planning for the future of the company.

The business environment in which the company operates continues to be a challenging one and we consider our principle risks and uncertainties to be: market competitiveness, environmental change and interest rates.

The agricultural produce market is extremely competitive with enormous customer power in the shape of the large supermarkets and the weakening position of the UK market due to availability of cheap foreign imports. Environmental change dictates how efficient crop yields are and inevitably the availability of products.

However, the directors feel that the broad depth of the business and its associated companies puts the company in a strong position to mitigate risks and uncertainties as much as possible.

Approved and authorised by the Board on 24 March 2025 and signed on its behalf by:
 

.........................................
R D Arundel
Director

 

Arundel Kerr Produce Limited

Directors' Report for the Year Ended 30 June 2024

The Directors present their report and the for the year ended 30 June 2024.

Directors of the Group

The Directors who held office during the year were as follows:

J M Warburton

B W Kerr

R D Arundel

B R Mordue

R Crate

Dividends

The Directors recommend a final dividend payment of £Nil be made in respect of the financial year ended 30 June 2024.

Financial instruments

Objectives and policies

The overall objective of the directors is to ensure that the business is profitable and stable and will continue to be successful for the benefit of the shareholders and employees.

Price risk, credit risk, liquidity risk and cash flow risk

The directors acknowledge responsibility for the company’s system of internal financial control and believe the established systems including the computerisation of the company’s financial accounts are appropriate to the business. No material losses or contingencies have arisen during the twelve months trading period that would require disclosure by the directors.

The business' principle financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors, loans to the business and finance agreements. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

The business funds some fixed asset acquisitions by finance agreements. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.

Disclosure of information to the auditor

Each Director has taken steps that they ought to have taken as a Director in order to make themselves aware of any relevant audit information and to establish that the Company's auditor is aware of that information. The Directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 24 March 2025 and signed on its behalf by:
 

.........................................
R D Arundel
Director

 

Arundel Kerr Produce Limited

Statement of Directors' Responsibilities

The Directors acknowledge their responsibilities 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 the Company 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 Group's and the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and the Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Arundel Kerr Produce Limited

Independent Auditor's Report to the Members of Arundel Kerr Produce Limited

Opinion

We have audited the financial statements of Arundel Kerr Produce Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and 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 the parent Company's 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 auditor 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 Director's 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

 

Arundel Kerr Produce Limited

Independent Auditor's Report to the Members of Arundel Kerr Produce Limited

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 5], 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

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

- testing for management override of controls including journal testing and review accounting estimates for reasonableness
- enquiries of management of actual and potential litigation claims
- enquiries of management including fraud and associated risks
- discussions with management, including consideration of known or suspected instances of non-compliance
- testing focussing on the area of the financial statements most suspectible to material error including completeness of income to ensure correct matching of revenue and costs.

Because of 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 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: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

 

Arundel Kerr Produce Limited

Independent Auditor's Report to the Members of Arundel Kerr Produce Limited

......................................
Adam Millson ACA (Senior Statutory Auditor)
For and on behalf of Forrester Boyd, Statutory Auditor

Waynflete House
139 Eastgate
Louth
Lincolnshire
LN11 9QQ

24 March 2025

 

Arundel Kerr Produce Limited

Consolidated Profit and Loss Account for the Year Ended 30 June 2024

Note

2024
£

2023
£

Turnover

3

26,922,254

13,620,251

Cost of sales

 

(24,225,545)

(12,500,947)

Gross profit

 

2,696,709

1,119,304

Administrative expenses

 

(1,817,658)

(1,016,162)

Other operating income

79,299

42,799

Operating profit

4

958,350

145,941

Other interest receivable and similar income

-

100,000

Amounts written off investments

 

-

750,000

Interest payable and similar expenses

6

(205,689)

(113,673)

   

(205,689)

736,327

Profit before tax

 

752,661

882,268

Tax on profit

10

(91,329)

(84,688)

Profit for the financial year

 

661,332

797,580

Profit/(loss) attributable to:

 

Owners of the Company

 

584,241

797,580

Minority interests

 

77,091

-

 

661,332

797,580

 

Arundel Kerr Produce Limited

(Registration number: 03873206)
Consolidated Balance Sheet as at 30 June 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

11

599,964

-

Tangible assets

12

3,114,013

2,429,482

Investments

13

5,856

-

 

3,719,833

2,429,482

Current assets

 

Stocks

15

186,215

6,175

Debtors

16

6,951,796

4,010,124

Cash at bank and in hand

 

51,939

715,449

 

7,189,950

4,731,748

Creditors: Amounts falling due within one year

18

(6,866,188)

(4,448,933)

Net current assets

 

323,762

282,815

Total assets less current liabilities

 

4,043,595

2,712,297

Creditors: Amounts falling due after more than one year

18

(1,252,863)

(528,587)

Provisions for liabilities

20

(516,079)

(329,009)

Net assets

 

2,274,653

1,854,701

Capital and reserves

 

Called up share capital

22

400

400

Revaluation reserve

488,241

488,207

Retained earnings

1,708,921

1,366,094

Equity attributable to owners of the company

 

2,197,562

1,854,701

Minority interests

 

77,091

-

Shareholders' funds

 

2,274,653

1,854,701

Approved and authorised by the Board on 24 March 2025 and signed on its behalf by:
 

.........................................
R D Arundel
Director

 

Arundel Kerr Produce Limited

(Registration number: 03873206)
Balance Sheet as at 30 June 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

11

596,221

-

Tangible assets

12

2,795,404

2,390,680

Investments

13

641,254

44,845

 

4,032,879

2,435,525

Current assets

 

Stocks

15

139,968

6,175

Debtors

16

4,982,083

3,524,143

Cash at bank and in hand

 

8,684

54,067

 

5,130,735

3,584,385

Creditors: Amounts falling due within one year

18

(6,159,625)

(3,948,809)

Net current liabilities

 

(1,028,890)

(364,424)

Total assets less current liabilities

 

3,003,989

2,071,101

Creditors: Amounts falling due after more than one year

18

(934,411)

(515,962)

Provisions for liabilities

20

(406,255)

(319,308)

Net assets

 

1,663,323

1,235,831

Capital and reserves

 

Called up share capital

22

400

400

Revaluation reserve

488,241

488,207

Retained earnings

1,174,682

747,224

Shareholders' funds

 

1,663,323

1,235,831

The company made a profit after tax for the financial year of £577,522 (2023 - profit of £393,120).

Approved and authorised by the Board on 24 March 2025 and signed on its behalf by:
 

.........................................
R D Arundel
Director

 

Arundel Kerr Produce Limited

Consolidated Statement of Changes in Equity for the Year Ended 30 June 2024
Equity attributable to the parent company

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

Non-controlling interests - Equity
£

Total equity
£

At 1 July 2023

400

488,207

1,366,094

1,854,701

-

1,854,701

Profit for the year

-

-

584,241

584,241

77,091

661,332

Other comprehensive income

-

5,970

-

5,970

-

5,970

Total comprehensive income

-

5,970

584,241

590,211

77,091

667,302

Dividends

-

-

(247,350)

(247,350)

-

(247,350)

Transfers

-

(5,936)

5,936

-

-

-

At 30 June 2024

400

488,241

1,708,921

2,197,562

77,091

2,274,653

 

Arundel Kerr Produce Limited

Statement of Changes in Equity for the Year Ended 30 June 2024

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 July 2023

400

488,207

747,224

1,235,831

Profit for the year

-

-

577,522

577,522

Other comprehensive income

-

5,970

-

5,970

Total comprehensive income

-

5,970

577,522

583,492

Dividends

-

-

(156,000)

(156,000)

Transfers

-

(5,936)

5,936

-

At 30 June 2024

400

488,241

1,174,682

1,663,323

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 July 2022

400

494,141

504,168

998,709

Profit for the year

-

-

393,120

393,120

Other comprehensive income

-

2

-

2

Total comprehensive income

-

2

393,120

393,122

Dividends

-

-

(156,000)

(156,000)

Transfers

-

(5,936)

5,936

-

At 30 June 2023

400

488,207

747,224

1,235,831

 

Arundel Kerr Produce Limited

Consolidated Statement of Cash Flows for the Year Ended 30 June 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

661,332

797,580

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

458,759

293,417

Profit on disposal of tangible assets

(14,756)

(7,599)

Loss/(profit) from disposals of investments

100,001

(750,000)

Finance income

-

(100,000)

Finance costs

6

203,157

113,673

Income tax expense

10

91,329

84,688

 

1,499,822

431,759

Working capital adjustments

 

(Increase)/decrease in stocks

15

(76,800)

154,376

Increase in trade debtors

16

(1,708,076)

(182,819)

Increase/(decrease) in trade creditors

18

172,488

(329,118)

Decrease in deferred income, including government grants

 

(42,802)

(42,799)

Cash generated from operations

 

(155,368)

31,399

Income taxes paid

10

(13,255)

(65,036)

Net cash flow from operating activities

 

(168,623)

(33,637)

Cash flows from investing activities

 

Acquisitions of tangible assets

(226,737)

(53,897)

Proceeds from sale of tangible assets

 

274,215

281,724

Acquisition of intangible assets

11

(196,344)

-

Dividend income

-

100,000

Acquisition of investments in joint ventures and associates

13

(5,856)

-

Proceeds from disposal of investments in joint ventures and associates

 

-

850,000

Acquisition of subsidiary net of cash acquired

 

(491,842)

-

Net cash flows from investing activities

 

(646,564)

1,177,827

Cash flows from financing activities

 

Interest paid

6

(203,157)

(113,673)

Proceeds from bank borrowing draw downs

 

480,000

-

Repayment of bank borrowing

 

(123,392)

(44,813)

Proceeds from other borrowing draw downs

 

514,596

-

Repayment of other borrowing

 

(9,986)

-

Payments to finance lease creditors

 

(401,455)

(378,878)

Dividends paid

(247,350)

(156,000)

Net cash flows from financing activities

 

9,256

(693,364)

Net (decrease)/increase in cash and cash equivalents

 

(805,931)

450,826

Cash and cash equivalents at 1 July

 

(1,066,055)

(1,516,881)

Cash and cash equivalents at 30 June

 

(1,871,986)

(1,066,055)

 

Arundel Kerr Produce Limited

Statement of Cash Flows for the Year Ended 30 June 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

577,522

393,120

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

360,093

288,911

Loss/(profit) on disposal of tangible assets

12,448

(5,044)

Finance income

(490,000)

(400,000)

Finance costs

169,419

112,178

Income tax expense

10

92,917

78,208

 

722,399

467,373

Working capital adjustments

 

Increase in stocks

15

(133,793)

(35)

Increase in trade debtors

16

(1,469,787)

(478,897)

Increase in trade creditors

18

1,775,400

26,259

Decrease in deferred income, including government grants

 

(42,802)

(42,799)

Cash generated from operations

 

851,417

(28,099)

Income taxes received/(paid)

10

11,847

(52,536)

Net cash flow from operating activities

 

863,264

(80,635)

Cash flows from investing activities

 

Acquisition of subsidiaries

13

(590,553)

-

Acquisitions of tangible assets

(222,066)

(53,897)

Proceeds from sale of tangible assets

 

86,601

264,074

Acquisition of intangible assets

11

(634,882)

-

Dividend income

490,000

400,000

Acquisition of investments in joint ventures and associates

13

(5,856)

-

Net cash flows from investing activities

 

(876,756)

610,177

Cash flows from financing activities

 

Interest paid

(169,419)

(112,178)

Proceeds from bank borrowing draw downs

 

480,000

-

Repayment of bank borrowing

 

(83,392)

(44,813)

Payments to finance lease creditors

 

(245,501)

(352,150)

Dividends paid

(156,000)

(156,000)

Net cash flows from financing activities

 

(174,312)

(665,141)

Net decrease in cash and cash equivalents

 

(187,804)

(135,599)

Cash and cash equivalents at 1 July

 

(1,727,437)

(1,591,838)

Cash and cash equivalents at 30 June

 

(1,915,241)

(1,727,437)

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

1

General information

The company is a private company limited by share capital incorporated in England and Wales and the company registration number is 03873206.

The address of its registered office is:
Pegasus House
Pegasus Road
Elsham Wold Ind. Estate
Elsham
North Lincolnshire
DN20 0SQ

These financial statements were authorised for issue by the Board on 24 March 2025.

These financial statements cover the group entity, Arundel Kerr Produce Limited.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 30 June 2024.

No Profit and Loss Account is presented for the Company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £577,522 (2023 - profit of £393,120).

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

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

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the Group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the Company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the Group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the Group.

The Group recognises revenue when:
The amount of revenue can be reliably measured;
and it is probable that future economic benefits will flow to the entity.

Government grants

Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the profit and loss account as the related expenditure is incurred.

Foreign currency transactions and balances

Profit and loss account transactions in foreign currencies are translated into sterling at the exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the closing rates at the balance sheet and the exchange differences are included in the profit and loss account.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Freehold land and buildings is measured at fair value at each reporting date with changes in fair value recognised in the revaluation reserve. The fair value is based on the estimated open market value with vacant possession.

Depreciation

Depreciation is charged so as to write off the cost or valuation of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land - freehold

No depreciation is charged

Buildings - freehold

2% straight line

Plant and machinery

15% - 25% reducing balance or 4 - 15 years straight line

Fixtures, fittings and equipment

4 - 5 years straight line

Motor vehicles

15% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the Group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 year straight line

Investments

Investments in subsidiaries and joint ventures are carried at cost less any impairment in net recoverable value recognised in the profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised at the transaction price less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Finished stocks are stated at the lower of cost and estimated selling price less costs to complete and sell whereby cost is valued at the last purchase price.

Trade creditors

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 the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised at the transaction price.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the Group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Turnover

The analysis of the Group's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

23,837,814

11,459,942

Rendering of services

3,084,440

2,160,309

26,922,254

13,620,251

The analysis of the Group's Turnover for the year by market is as follows:

2024
£

2023
£

UK

26,917,634

13,569,632

Rest of world

4,620

50,619

26,922,254

13,620,251

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

412,920

293,417

Amortisation expense

45,839

-

Operating lease expense - plant and machinery

166,273

180,333

Profit on disposal of property, plant and equipment

(14,756)

(7,599)

5

Government grants

Grant received for the purchase of fixed assets.

The amount of grants recognised in the financial statements was £42,799 (2023 - £42,799).

6

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

99,658

74,100

Interest on obligations under finance leases and hire purchase contracts

77,910

33,171

Interest expense on other finance liabilities

25,589

6,402

Foreign exchange gains

2,532

-

205,689

113,673

7

Staff costs

The aggregate payroll costs (including Directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

1,383,128

779,360

Social security costs

129,577

79,362

Pension costs, defined contribution scheme

46,444

26,079

Other employee expense

2,754

-

1,561,903

884,801

The average number of persons employed by the Group (including Directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

47

15

Administration and support

8

7

55

22

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

8

Directors' remuneration

The Directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

152,640

124,100

Contributions paid to money purchase schemes

14,190

4,840

166,830

128,940

9

Auditors' remuneration

2024
£

2023
£

Audit of these financial statements

6,000

3,000


 

10

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2024
£

2023
£

Deferred taxation

Arising from origination and reversal of timing differences

91,329

13,491

Arising from changes in tax rates and laws

-

71,197

Total deferred taxation

91,329

84,688

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 25% (2023 - 20.5%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

752,661

882,268

Corporation tax at standard rate

188,165

180,865

Tax increase/(decrease) from effect of capital allowances and depreciation

16,144

(1,086)

Effect of revenues exempt from taxation

(10,700)

(162,524)

Effect of expense not deductible in determining taxable profit (tax loss)

5,314

10,321

Effect of tax losses

(7,823)

-

Increase from tax losses for which no deferred tax asset was recognised

-

6,415

Tax increase arising from group relief

20,684

-

Deferred tax expense relating to changes in tax rates or laws

-

71,197

Tax decrease from effect of dividends from UK companies

-

(20,500)

Tax decrease from other tax effects

(120,455)

-

Total tax charge

91,329

84,688

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Deferred tax

Group

Deferred tax assets and liabilities

2024

Liability
£

Difference between accumulated depreciation and capital allowances

505,100

Pension creditor

(1,914)

Revaluation of property

12,893

516,079

2023

Liability
£

Difference between accumulated depreciation and capital allowances

311,996

Pension creditor

(1,850)

Revaluation of property

18,863

329,009

Company

Deferred tax assets and liabilities

2024

Liability
£

Difference between accumlated depreciation and capital allowances

395,276

Pension creditor

(1,914)

Revaluation of property

12,893

406,255

2023

Liability
£

Difference between accumlated depreciation and capital allowances

302,295

Pension creditor

(1,850)

Revaluation of property

18,863

319,308

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

11

Intangible assets

Group

Goodwill
 £

Restructuring fees
 £

Website costs
 £

STAG system
 £

Total
£

Cost or valuation

At 1 July 2023

-

-

1,500

-

1,500

Additions acquired separately

634,882

-

-

1,200

636,082

Acquired through business combinations

-

17,670

-

24,300

41,970

At 30 June 2024

634,882

17,670

1,500

25,500

679,552

Amortisation

At 1 July 2023

-

15,087

1,500

17,162

33,749

Amortisation charge

38,661

2,368

-

4,810

45,839

At 30 June 2024

38,661

17,455

1,500

21,972

79,588

Carrying amount

At 30 June 2024

596,221

215

-

3,528

599,964

Company

Goodwill
 £

Total
£

Cost or valuation

Additions acquired separately

634,882

634,882

At 30 June 2024

634,882

634,882

Amortisation

Amortisation charge

38,661

38,661

At 30 June 2024

38,661

38,661

Carrying amount

At 30 June 2024

596,221

596,221

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

12

Tangible assets

Group

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2023

1,252,285

188,482

2,917,870

1,605

518,716

4,878,958

Additions

-

10,674

653,276

4,031

203,649

871,630

Acquired through business combinations

29,958

375,523

166,969

45,876

283,336

901,662

Disposals

-

(170,375)

(120,363)

-

(294,903)

(585,641)

At 30 June 2024

1,282,243

404,304

3,617,752

51,512

710,798

6,066,609

Depreciation

At 1 July 2023

25,709

314,793

2,191,467

37,261

296,628

2,865,858

Charge for the year

24,430

58,856

231,544

2,379

95,711

412,920

Eliminated on disposal

-

(133,168)

(68,055)

-

(124,959)

(326,182)

At 30 June 2024

50,139

240,481

2,354,956

39,640

267,380

2,952,596

Carrying amount

At 30 June 2024

1,232,104

163,823

1,262,796

11,872

443,418

3,114,013

At 30 June 2023

1,228,449

38,054

818,288

2,322

342,369

2,429,482

Revaluation

The fair value of the Group's land and buildings was revalued on 30 June 2022 by an independent valuer, Savills (UK) Limited. The basis of the valuation was an open market value.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £703,438 (2023 - £721,384). The depreciation on this historical cost is £250,040 (2023 - £234,094). The historical cost at 30 June 2024 was £955,478 (2023 - £955,478).
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Plant and machinery

986,735

409,815

Motor vehicles

375,127

295,229

1,361,862

705,044

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Restriction on title and pledged as security

Land and buildings with a carrying amount of £1,232,104 (2023 - £1,228,449) has been pledged as security for bank loans, the bank overdraft and the factor liability.

Fixtures and fittings with a carrying amount of £163,823 (2023 - £38,054) has been pledged as security for bank loans, the bank overdraft and the factor liability.

Plant and machinery with a carrying amount of £1,262,796 (2023 - £818,288) has been pledged as security for bank loans, the bank overdraft and the factor liability.

Office equipment with a carrying amount of £11,872 (2023 - £2,322) has been pledged as security for bank loans, the bank overdraft and the factor liability.

Motor vehicles with a carrying amount of £443,418 (2023 - £342,369) has been pledged as security for bank loans, the bank overdraft and the factor liability.

Company

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2023

1,252,285

188,482

2,915,070

478,252

4,834,089

Additions

-

10,674

652,636

161,895

825,205

Disposals

-

-

(104,863)

(71,639)

(176,502)

At 30 June 2024

1,252,285

199,156

3,462,843

568,508

5,482,792

Depreciation

At 1 July 2023

23,836

150,428

2,096,782

172,363

2,443,409

Charge for the year

23,881

15,046

214,650

67,855

321,432

Eliminated on disposal

-

-

(56,222)

(21,231)

(77,453)

At 30 June 2024

47,717

165,474

2,255,210

218,987

2,687,388

Carrying amount

At 30 June 2024

1,204,568

33,682

1,207,633

349,521

2,795,404

At 30 June 2023

1,228,449

38,054

818,288

305,889

2,390,680

Revaluation

The fair value of the Company's land and buildings was revalued on 30 June 2022 by an independent valuer, Savills (UK) Limited. The basis of this valuation was an open market value.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £703,438 (2023 - £721,384). The depreciation on this historical cost is £250,040 (2023 - £234,094). The historical cost at 30 June 2024 was £955,478 (2023 - £955,478).
 

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Plant and machinery

845,635

409,815

Motor vehicles

296,516

258,749

1,142,151

668,564

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Restriction on title and pledged as security

Land and buildings with a carrying amount of £1,204,568 (2023 - £1,228,449) has been pledged as security for bank loans and the bank overdraft.

Motor vehicles with a carrying amount of £349,521 (2023 - £305,889) has been pledged as security for hire purchase agreements, bank loans and the bank overdraft.

Plant and machinery with a carrying amount of £1,207,633 (2023 - £818,288) has been pledged as security for hire purchase agreements, bank loans and the bank overdraft.

Fixture and fittings with a carrying amount of £33,682 (2023 - £38,054) has been pledged as security for bank loans and the bank overdraft.

13

Investments

Company

2024
£

2023
£

Investments in subsidiaries

635,398

44,845

Investments in joint ventures

5,856

-

641,254

44,845

Subsidiaries

£

Cost or valuation

At 1 July 2023

44,845

Additions

590,553

At 30 June 2024

635,398

Carrying amount

At 30 June 2024

635,398

At 30 June 2023

44,845

Joint ventures

£

Cost

Additions

5,856

Carrying amount

At 30 June 2024

5,856

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the Company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Pride of Anglia Growers Limited

Pegasus House
Pegasus Road
Elsham Wold Industrial Estate

United Kingdom

Ordinary

100%

100%

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

Wolds Produce (Holdings) Limited

The Airfield
York Road
Pocklington

United Kingdom

Ordinary shares

84%

0%

Wolds Produce Limited

The Airfield
York Road
Pocklington

United Kingdom

Ordinary shares

84%

0%

Joint ventures

The Humble Potato Company Limited

Pegasus House
Pegasus Road
Elsham Wold Industrial Estate

Ordinary shares

50%

0%

United Kingdom

Subsidiary undertakings

Wolds Produce (Holdings) Limited

Its financial period end is 31 July.

Wolds Produce Limited

Its financial period end is 31 July.

Joint ventures

The Humble Potato Company Limited

Its financial period end is 31 July.
The profit for the financial period of The Humble Potato Company Limited was £427,987 and the aggregate amount of Capital and reserves at the end of the period was £310,609.

14

Business combinations

On 3 November 2023, Arundel Kerr Produce Limited acquired 84% of the issued share capital of Wolds Produce Holdings Limited, obtaining control.

Wolds Produce Holdings Limited contributed £11,098,093 revenue and £481,821 to the Group's profit for the period between the date of acquisition and the Balance Sheet date, which has been accounted for under the acquisition method.

The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below:

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Book value
2024
£

Fair value
2024
£

Assets and liabilities acquired

Financial assets

1,323,750

1,323,750

Stocks

86,720

86,720

Tangible assets

383,675

383,675

Identifiable intangible assets

136,137

136,137

Financial liabilities

(1,389,342)

(1,389,342)

Total identifiable assets

540,940

540,940

Goodwill

439,738

439,738

Total consideration

980,678

980,678

Satisfied by:

Cash

980,678

980,678

15

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Finished goods and goods for resale

139,968

6,175

139,968

6,175

Other inventories

46,247

-

-

-

186,215

6,175

139,968

6,175

Group

Company

16

Debtors

   

Group

Company

Current

Note

2024
£

2023
£

2024
£

2023
£

Trade debtors

 

5,846,944

2,832,503

3,929,145

2,406,942

Amounts owed by related parties

27

-

-

-

391,749

Other debtors

 

955,796

1,108,592

920,076

656,423

Prepayments and accrued income

 

148,142

56,268

131,948

56,268

Income tax asset

10

914

12,761

914

12,761

   

6,951,796

4,010,124

4,982,083

3,524,143

17

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash on hand

486

40

69

40

Cash at bank

51,453

715,409

8,615

54,027

51,939

715,449

8,684

54,067

Bank overdrafts

(1,923,925)

(1,781,504)

(1,923,925)

(1,781,504)

Cash and cash equivalents in statement of cash flows

(1,871,986)

(1,066,055)

(1,915,241)

(1,727,437)

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Non-cash transactions excluded from the consolidated cash flow statement

Group

2024
£

2023
£

Cost of new tangible assets acquired under finance leases

640,380

301,964

Non-cash transactions excluded from the cash flow statement

Company

2024
£

2023
£

Cost of new tangible assets acquired under finance leases

603,139

261,500

18

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Bank loans and overdraft

19

2,187,374

1,826,317

2,122,374

1,826,317

Trade creditors

 

3,251,482

2,146,535

2,232,189

1,710,337

Amounts due to related parties

27

-

-

1,002,206

-

Social security and other taxes

 

44,199

22,155

29,989

22,155

Outstanding defined contribution pension costs

 

7,655

13,789

7,655

13,789

Other payables

 

1,175,930

322,358

581,766

261,263

Accruals and deferred income

 

199,548

117,779

183,446

114,948

 

6,866,188

4,448,933

6,159,625

3,948,809

Due after one year

 

Loans and borrowings

19

411,394

73,422

316,394

73,422

Deferred income

 

-

42,802

-

42,802

Other creditors

 

841,469

412,363

618,017

399,738

 

1,252,863

528,587

934,411

515,962

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

19

Loans and borrowings

Non-current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

411,394

73,422

316,394

73,422

Finance lease liabilities

840,194

412,363

618,017

399,738

Other borrowings

1,275

-

-

-

1,252,863

485,785

934,411

473,160

Current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

263,449

44,813

198,449

44,813

Bank overdrafts

1,923,925

1,781,504

1,923,925

1,781,504

Finance lease liabilities

386,932

195,351

321,936

182,577

Other borrowings

532,311

-

-

-

3,106,617

2,021,668

2,444,310

2,008,894

Group

Creditor amounts falling due within one year on which security has been given includes bank loans of £263,449 (2023 - £44,813), bank overdraft of £1,923,925 (2023 - £1,781,504) and hire purchase of £386,932 (2023 - £195,351).

Creditor amounts falling due after one year on which security has been given includes bank loans of £411,394 (2023 - £73,422) and hire purchase of £840,194 (2023 - £412,363).

The hire purchase balances are secured on the assets to which they relate.

The bank loans and bank overdrafts are secured by a charge over the properties owned by the group, guarantees from Arundel Kerr Produce (East Anglia) Limited and Healthfresh Properties Limited.

There is a fixed and floating charge on all of the assets by the bank.

Group

Bank borrowings

The bank loan is denominated in sterling with a nominal interest rate of 2.27%, and the final instalment is due on 31 December 2024. The carrying amount at year end is £11,482 (2023 - £33,694).

The bank loan is denominated in sterling with a nominal interest rate of 2.31%, and the final instalment is due on 27 September 2026. The carrying amount at the year end is £60,688 (2023 - £84,541).

The bank loan is denominated in sterling with a nominal interest rate of 2.31% over the Bank of England Base Rate, and the final instalment is due on 30 November 2028. The carrying amount at the year end is £342,672 (2023 - £nil).

The bank loan is denominated in sterling with a nominal interest rate of 2.31% over the Bank of England Base Rate, and the final instalment is due on 30 June 2025. The carrying amount at the year end is £100,000 (2023 - £nil).

The bank loan is denominated in sterling with a nominal interest rate of 3.49% over the Bank of England Base Rate, and the final instalment is due on 31 January 2027. The carrying amount at the year end is £160,000 (2023 - £nil).

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Other borrowings

The finance lease liabilities are made up of 41 agreements and are denominated in sterling with a variable nominal interest rate and the final instalments are between July 2024 and May 2030. The carrying amount at year end is £1,227,126 (2023 - £607,714).

Company

Bank borrowings

The bank loan is denominated in sterling with a nominal interest rate of 2.27%, and the final instalment is due on 31 December 2024. The carrying amount at year end is £11,483 (2023 - £33,694).

The bank loan is denominated in sterling with a nominal interest rate of 2.31%, and the final instalment is due on 27 September 2026. The carrying amount at the year end is £60,688 (2023 - £84,541).

The bank loan is denominated in sterling with a nominal interest rate of 2.31% over the Bank of England Base Rate, and the final instalment is due on 30 November 2028. The carrying amount at the year end is £342,672 (2023 - £nil).

The bank loan is denominated in sterling with a nominal interest rate of 2.31% over the Bank of England Base Rate, and the final instalment is due on 30 June 2025. The carrying amount at the year end is £100,000 (2023 - £nil).

Other borrowings

The finance lease liabilities are made up of 18 agreements and are denominated in sterling with a variable nominal interest rate and the final instalments are between July 2024 and October 2029. The carrying amount at year end is £939,953 (2023 - £582,315).

20

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 July 2023

329,009

329,009

Increase (decrease) in existing provisions

85,359

85,359

Increase (decrease) through business combinations

101,711

101,711

At 30 June 2024

516,079

516,079

Company

Deferred tax
£

Total
£

At 1 July 2023

319,308

319,308

Increase (decrease) in existing provisions

86,947

86,947

At 30 June 2024

406,255

406,255

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

21

Pension and other schemes

Defined contribution pension scheme

The Group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Group to the scheme and amounted to £46,444 (2023 - £26,079).

Contributions totalling £7,655 (2023 - £13,789) were payable to the scheme at the end of the year and are included in creditors.

22

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary A Shares of £1 each

100

100

100

100

Ordinary B Shares of £1 each

200

200

200

200

Ordinary C Shares of £1 each

100

100

100

100

400

400

400

400

Rights, preferences and restrictions

Ordinary A shares have the following rights, preferences and restrictions:
Normal voting and participation rights

Ordinary B shares have the following rights, preferences and restrictions:
No voting rights

Ordinary C shares have the following rights, preferences and restrictions:
No voting rights

23

Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

386,932

195,351

Later than one year and not later than five years

840,194

412,363

1,227,126

607,714

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

180,906

52,310

Later than one year and not later than five years

427,408

8,325

608,314

60,635

The amount of non-cancellable operating lease payments recognised as an expense during the year was £169,318 (2023 - £180,333).

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Company

Finance leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

321,936

182,577

Later than one year and not later than five years

618,017

399,738

939,953

582,315

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

150,525

63,143

Later than one year and not later than five years

405,036

25,658

555,561

88,801

The amount of non-cancellable operating lease payments recognised as an expense during the year was £132,597 (2023 - £180,333).

24

Dividends

Interim dividends paid

2024
£

2023
£

Interim dividend of £780.00 per each Ordinary B share

156,000

156,000

 

 

25

Contingent liabilities

Group

The company has entered into an unlimited cross guarantee with its bankers in respect of Arundel Kerr Produce Limited, Arundel Kerr Produce (East Anglia) Limited and Healthfresh Properties Limited to secure liabilities of each other. There are no tax implications with regards to this guarantee. The uncertainties which are expected to affect the future outcome are the future liquidity and profitability of the two companies whose debts are secured by Arundel Kerr Produce Limited. The financial effect due to this guarantee is dependent upon the amount of debt secured by Arundel Kerr Produce Limited in respect of the two companies.

Company

The company has entered into an unlimited cross guarantee with its bankers in respect of Arundel Kerr Produce Limited, Arundel Kerr Produce (East Anglia) Limited and Healthfresh Properties Limited to secure liabilities of each other. There are no tax implications with regards to this guarantee. The uncertainties which are expected to affect the future outcome are the future liquidity and profitability of the two companies whose debts are secured by Arundel Kerr Produce Limited. The financial effect due to this guarantee is dependent upon the amount of debt secured by Arundel Kerr Produce Limited in respect of the two companies.

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

26

Analysis of changes in net debt

Group

At 1 July 2023
£

Financing cash flows
£

Acquisition of subsidiaries
£

New finance leases
£

At 30 June 2024
£

Cash and cash equivalents

Cash

715,449

(1,202,645)

539,135

-

51,939

Overdrafts

(1,781,504)

(142,421)

-

-

(1,923,925)

(1,066,055)

(1,345,066)

539,135

-

(1,871,986)

Borrowings

Long term borrowings

(73,422)

(137,972)

(200,000)

-

(411,394)

Short term borrowings

(44,813)

(218,636)

-

-

(263,449)

Lease liabilities

(607,714)

396,942

(375,974)

(640,380)

(1,227,126)

(725,949)

40,334

(575,974)

(640,380)

(1,901,969)

 

(1,792,004)

(1,304,732)

(36,839)

(640,380)

(3,773,955)

Company

At 1 July 2023
£

Financing cash flows
£

New finance leases
£

At 30 June 2024
£

Cash and cash equivalents

Cash

54,067

(45,383)

-

8,684

Overdrafts

(1,781,504)

(142,421)

-

(1,923,925)

(1,727,437)

(187,804)

-

(1,915,241)

Borrowings

Long term borrowing

(73,422)

(242,972)

-

(316,394)

Short term borrowings

(44,813)

(153,636)

-

(198,449)

Lease liabilities

(582,315)

245,501

(603,139)

(939,953)

(700,550)

(151,107)

(603,139)

(1,454,796)

 

(2,427,987)

(338,911)

(603,139)

(3,370,037)

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

27

Related party transactions

Group

Key management compensation

2024
£

2023
£

Salaries and other short term employee benefits

176,007

136,233

Post-employment benefits

5,040

4,840

181,047

141,073

Transactions with Directors

2024

At 1 July 2023
£

Advances to Director
£

Repayments by Director
£

At 30 June 2024
£

R D Arundel

Director's interest free loan account - no formal repayment terms

35,047

201,797

(217,909)

18,935

2023

At 1 July 2022
£

Advances to Director
£

Repayments by Director
£

At 30 June 2023
£

R D Arundel

Director's interest free loan account - no formal repayment terms

2,812

32,962

(727)

35,047

Dividends paid to Directors

2024
£

2023
£

Dividends

156,000

156,000

 

 

Income and receivables from related parties

2024

Other related parties
£

Sale of goods

4,606,652

Receipt of services

81,382

4,688,034

Amounts receivable from related party

2,664,429

2023

Associates
£

Other related parties
£

Sale of goods

2,103,441

2,074,295

Receipt of services

-

61,342

Sale of property or other assets

850,000

-

2,953,441

2,135,637

Amounts receivable from related party

-

1,766,403

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Expenditure with and payables to related parties

2024

Other related parties
£

Purchase of goods

4,400,796

Amounts payable to related party

230,150

2023

Associates
£

Other related parties
£

Purchase of goods

52,966

4,939,352

Amounts payable to related party

-

1,103,675

Company

Key management compensation

2024
£

2023
£

Salaries and other short term employee benefits

131,100

136,233

Post-employment benefits

5,040

4,840

136,140

141,073

Transactions with Directors

2024

At 1 July 2023
£

Advances to Director
£

Repayments by Director
£

At 30 June 2024
£

R D Arundel

Director's interest free loan account - no formal repayment terms

35,047

201,797

(217,909)

18,935

2023

At 1 July 2022
£

Advances to Director
£

Repayments by Director
£

At 30 June 2023
£

R D Arundel

Director's interest free loan account - no formal repayment terms

2,812

32,962

(727)

35,047

Dividends paid to Directors

2024
£

2023
£

Dividends

156,000

156,000

 

 

Summary of transactions with other related parties

Other related parties are companies under the same control of Arundel Kerr Produce Limited.
 Amounts receivable from and to related parties have no formal repayments and no interest is payable.
 

 

Arundel Kerr Produce Limited

Notes to the Financial Statements for the Year Ended 30 June 2024

Income and receivables from related parties

2024

Other related parties
£

Sale of goods

4,251,204

Receipt of services

81,382

4,332,586

Amounts receivable from related party

2,580,230

2023

Other related parties
£

Sale of goods

1,680,297

Receipt of services

61,342

1,741,639

Amounts receivable from related party

1,749,473

Expenditure with and payables to related parties

2024

Other related parties
£

Purchase of goods

4,213,029

Amounts payable to related party

138,586

2023

Other related parties
£

Purchase of goods

3,977,228

Amounts payable to related party

923,602

28

Parent and ultimate parent undertaking

The ultimate controlling party is the directors and close family members who own 87.5% of the called up share capital.

29

Non adjusting events after the financial period

On 22nd January 2025 the group acquired 100% of the issued share capital of Whole Crop Marketing Limited.