Registered number:
FOR THE YEAR ENDED 30 JUNE 2024
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TRADITIONAL NORFOLK POULTRY LIMITED
COMPANY INFORMATION
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TRADITIONAL NORFOLK POULTRY LIMITED
CONTENTS
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TRADITIONAL NORFOLK POULTRY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
The directors present the company Strategic Report for the year ended 30 June 2024
Principal Activities The principal activity of the Company in the year under review was that of production and processing of free range and organic chickens and turkeys.
A challenging marketplace continued however cost pressures have stabilised which have seen a large improvement in the overall gross margin of the business.
Previous years have been adversely affected by Avian Influenza. In 2023/24 the Company was free from any Avian Influenza outbreaks, and this was also reflective in the improved margins. Despite the continued challenging trading environment, the Company has continued to grow with the demand from its customers.
The principal risks facing the Company are:
Competitive risk There is competition within the poultry production sector and the markets in which the Company operates, which can result in pressure on margins. The Company maintains relationships with customers to ensure it minimises the risk of losing business to competitors. Client dependency Over reliance on large customers not under long term contracts may expose the Company to a significant reduction of turnover and profits if the contract is terminated, or if such a customer does not pay for products in a timely manner, which may have an adverse effect on cash flow. Human resource risk Failure to retain key staff can adversely affect any business. Short lines of communication are maintained between the director and key staff to mitigate the risk. Commodity prices A significant proportion of the Company’s cost is attributable to the ingredients used in feed grain which can be affected by unsettled economic conditions, global supply and demand, weather patterns and government policies. The availability of the feed grain continues to be adversely affected by the war in Ukraine. The Company monitors feed prices carefully working closely with customers to reduce the impact of volatile market movements and agrees feed prices in advance with suppliers to manage the impact of adverse price movements when appropriate. Disease As a responsible agri-business, the health and welfare of our livestock is a high priority. Experienced, trained management are always on hand to monitor bird health with the support of a qualified veterinary advisor. Notifiable diseases such as avian influenza are a risk to the Company as an outbreak may result in some destruction of our livestock and products not infected or contaminated. The Company mitigates against such risk by maintaining robust bio-security measures. The Company has developed contingency plans should an outbreak of Avian Influenza occur in close proximity to any of its operating facilities.
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TRADITIONAL NORFOLK POULTRY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
Food safety
Food safety is a high priority. The risk of food scares is mitigated by ensuring raw materials are traceable to source and manufacturing, storage and distribution systems are continually monitored by experienced and qualified technical staff. These systems will ensure our continued reputation for producing poultry to the highest standards. Operational health and safety Failure to maintain a sufficiently skilled workforce and retain key skills can adversely affect any business. Health and safety issues are reviewed and monitored on a regular basis. Interest risk The Company has structured debt and as such the Director feels that interest rate risk is minimal. The Director has taken steps to ensure the day to day commercial risks are managed comprehensively by the Company. To do this the management review financial performance which will alert them to adverse developments in trading performance and cash management.
The Company uses a range of Key Performance Indicators (KPI’s) to monitor the performance of the business on an ongoing basis. The financial measures include Revenue, Revenue Growth, Gross Profit Margin and Profit before Tax.
2024 2023 Revenue £49,082,671 £45,319,331 Revenue Growth 8.31% -3.67% Gross Profit Margin 23.43% 11.5% Profit/(Loss) before Tax £2,695,561 (£7,088) Revenue growth in the year was a largely due to increased sales volume across our customer base. The input costs have stabilised with feed, the largest single input being less volatile which has helped improve the overall margin. Administration expenses increased throughout the year compared against 2023 largely due to increased farming rental space to cater for the additional volume. The Company also has non-financial KPI measurements in place such as staff retention % and accidents and incidents which are key metrics for the Company. Staff retention % shows how successful the Company is in retaining its workforce. Health & Safety is a vitally important area within the business and daily and weekly KPI’s are reported on any accidents or incidents that have occurred.
The Company has a continued strategy to grow the farming base and continue to invest in the facilities at Shropham.
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TRADITIONAL NORFOLK POULTRY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
Section 172(1) of the Companies Act 2006 requires the directors to take into consideration the interests of the stakeholders in their decision making. The directors continue to have regard to the interests of the Company’s employees and other stakeholders, including the impact of its activities on the community, the environment and the Company’s reputation, when making decisions. By acting in good faith and fairly, the directors consider what is most likely to promote the success of the Company in the long term.
The directors are fully aware of their responsibilities to promote the success of the Company in accordance with Section 172 of the Companies Act 2006. To ensure the Company meets this, the directors regularly reflect on how the Company engages with its stakeholders and considers opportunities for enhancements to stakeholder engagement. Such stakeholders include employees, customers, suppliers and the local community. When making decisions, the directors have regard, amongst other matters, to: - The likely consequences of any decision in the long term; - The interests of the Company’s employees; - The need to foster the Company’s business relationships with suppliers, customers and others; - The impact of the Company’s operations on the community and the environment; - The desirability of the company maintaining a reputation for high standards of business conduct; and - The need to act fairly between stakeholders of the Company. Stakeholders Employees: The directors recognise that the Company’s employees are vitally important to the continued success of the business. The Company has continued its policy of informing employees of the matters of concern to them through formal and informal meetings and information notices. The Company ensures the employees are aligned to the business objectives and core values through employee forums, site briefings and award schemes. Customers: Engagement with our customers ensures that we are aligned with their values, strategies and priorities, ensuring we work as strategic partners alongside them in order to ensure the business' sustainability and growth. Suppliers: Suppliers are a critical link to the overall Company supply chain, providing a source of value which meets the overall Company needs. The Company undertakes regular reviews in a two-way engagement to improve performance. Local community: The Company engages within the local community by supporting local events and charities throughout the year.
This report was approved by the board on 16 October 2024 and signed on its behalf.
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TRADITIONAL NORFOLK POULTRY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
The directors present their report and the financial statements for the year ended 30 June 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,587,063 (2023 - £77,201).
Ordinary dividends for the year amounted to £303,500 (2023 - £226,557).
As a result of group restructuring, exceptional dividends were also declared totalling £490,000.
The directors who served during the year were:
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TRADITIONAL NORFOLK POULTRY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
The directors recognise that the Company's employees are vitally important to the continued success of the business. The Company has continued its policy of informing employees of matters of concern to them through formal and informal meetings and information notices.
Impact of operations on the environment The Company is committed to minimising its environmental impact and promoting sustainability in its operations. The Company recognises the importance of addressing emissions associated with its activities and strives to continually improve its environmental performance. Scope of Emissions The Company’s emissions statement encompasses the direct and indirect greenhouse gas (GHG) emissions resulting from its poultry business operations in the United Kingdom. This includes emissions from its facilities, transportation, and supply chain activities. Greenhouse Gas Inventory The Company has conducted a comprehensive inventory of its greenhouse gas emissions based on reliable and validated methodologies. Scope 1&2 energy supplier invoices, sales tonnes, government greenhouse gas conversion factors. The inventory covers the following emission sources: a) Scope 1 Emissions: The Company accounts for direct emissions from sources it controls, such as emissions from on-site energy consumption, fuel combustion, and any refrigerants or chemicals used in its operations. b) Scope 2 Emissions: The Company quantifies indirect emissions resulting from purchased electricity and heat consumed in its facilities. c) Scope 3 Emissions: The Company considers relevant indirect emissions from its value chain, including emissions from purchased goods and services, transportation, and waste disposal. Reduction Targets and Initiatives The Company is committed to reducing its greenhouse gas emissions in line with national and international climate goals. To achieve this, the Company has established reduction targets and implemented initiatives such as: a) Energy Efficiency: The Company continuously evaluates and invests in energy-efficient technologies and equipment to minimize its energy consumption and associated emissions. This is illustrated with the conitnued use of a New Alma Whole bird line which runs using less plastic and more efficiently than the pre-existing model. b) Renewable Energy: The Company actively explores opportunities to transition to renewable energy sources, such as solar or wind power, to reduce its reliance on fossil fuels. The Company has 11 bio-mass boiler across various sites in use generating renewable energy. c) Waste Management: The Company implements waste management practices to minimise waste generation and promotes recycling and composting to reduce emissions from landfill. The reduction of plastic waste due to the new Alma whole bird line and an increased focus on water reduction has been continued during the year. d) Transport Optimisation: The Company optimizes its transportation routes and explores sustainable transportation options to minimize emissions associated with its supply chain. The Company engages with logistic companies to maximise pallet efficiency on all outloads.
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TRADITIONAL NORFOLK POULTRY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
Monitoring and Reporting
The Company regularly monitors and assesses its emissions performance using reliable data collection methods. It maintains accurate records of emissions, reviews its progress against reduction targets, and reports its findings transparently. - The period covered Financial year 01/07/23-30/06/24. - Methodology: Scope 1&2 energy supplier invoices, sales tonnes, government greenhouse gas conversion factors. - Measurement: Scope 1&2 tonnes CO2 equivalent per sales tonne. - Monthly breakdown of sales tonnes and energy inputs, electricity, biomass wood pellets, and LPG all reported on the Manufacture2030 TNP worksheet. Submitted base year data for YE 30/06/24. Activity Scope Type Amount Units Total kg Total kg Total tonne Carbon Carbon Carbon dioxide dioxide dioxide equivalent equivalent equivalent per unit Energy Scope1 Biomass wood pellets 65 tonnes 19.804 3,276 3 Liquified petroleum 12,533 tonnes 3,461 37,584 38 gas cylinders Liquified petroleum 47,986 litres 0.578 73,727 74 gas bulk Refrigerant release to air Scope1 HFC-R404A - kg 3,421 - - HFC-R449A - kg 1,267 - - HFC- R452A - kg 2,005 - - Energy Scope2 Grid electricity 2,383,082 kWh 0.422 506,054 506 includes transmission Material use Scope3 Chicken & Turkey 8,960 tonnes 3,213.79 32,139,250 32,139 sales Category3 material 4,899 tonnes 3,213.79 15,540,790 15,541 for rendering Water supply Scope3 Water supply 34,693 m3 0.1315 5,425 5 mains and borehole Waste Scope3 Cardboard recycling 26.25 tonnes 26.310 544 1 disposal Other recycling 8.12 tonnes 26,310 198 - Trade effluent for 24,009 tonnes 0.1952 6,511 6 landspreading Category2 material 144 tonnes 21.280 3,265 3 for combustion Residual waste 114 tonnes 21.280 2,642 2 for combustion Grand total 48,318,093 48,319 In the prior year, the Company had energy consumption and related carbon dioxide emissions as follows: - Scope 1 and 2 energy usage - 16,978 tonnes - Total carbon dioxide equivalent - 47,160 tonnes
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TRADITIONAL NORFOLK POULTRY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
Stakeholder Engagement
The Company engages with its employees, suppliers, customers, and other relevant stakeholders to raise awareness about our emissions reduction efforts and encourage their involvement in sustainable practices. The Company has signed up to the Manufacture 2030 programme with its customers in an attempt to collaboratively reduce its carbon emissions. Continuous Improvement The Company is committed to continuously improving its emissions management practices. It actively seeks innovative solutions and collaborates with industry partners, researchers, and experts to identify and implement best practices in emissions reduction and environmental sustainability. At Traditional Norfolk Poultry Limited, we recognise that our environmental responsibility goes hand in hand with our commitment to delivering high-quality poultry products. Through effective emissions management and sustainable practices, we strive to contribute to a greener and more sustainable future for our business, our stakeholders, and the environment.
Since the year-end dividends totalling £30,000 have been paid.
The Company has made several capital purchases totalling £537,351 of which £249,446 was financed via new Hire Purchase agreements.
The auditors, Price Bailey LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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TRADITIONAL NORFOLK POULTRY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADITIONAL NORFOLK POULTRY LIMITED
We have audited the financial statements of Traditional Norfolk Poultry Limited (the 'Company') for the year ended 30 June 2024, which comprise the Strategic Report, Director's Report, Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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TRADITIONAL NORFOLK POULTRY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADITIONAL NORFOLK POULTRY LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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TRADITIONAL NORFOLK POULTRY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADITIONAL NORFOLK POULTRY LIMITED (CONTINUED)
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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
-We reviewed systems and procedures to identify potential areas of management override risk. In particular, we carried out testing of journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions to identify large or unusual transactions. -We critically assessed significant estimates inherent in the financial statements. This involved assessing estimates against post year end actual performance and considering estimates in light of our expectations which are formed on the basis of past experience and our knowledge of the entity and the industry. -We held discussions with those charged with governance, to enquire whether they were aware of any instances of non-compliance with laws & regulations. -We reviewed legal expenses to indentify any instances of non-compliance with laws and regulations. -We obtained inspection reports from key regulatory visits in the year, to identify any instances of non-compliance. -We confirmed the bank balance as at the balance sheet date with the Company’s bankers. -We confirmed the existence of a sample of employees to ensure there are no ficticious employees. -We reviewed a sample of pay rates to ensure minimum wage requirements are being met. We also reviewed a pay run to ensure there were no duplicate bank accounts being paid. -We reviewed the accident log and gained an understanding of the Health & Safety procedures from discussion with the Company’s Health & Safety Champion. We performed the procedures set out above after gaining an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates, and after considering the risk of acts by the Company contrary to applicable laws and regulations including fraud. We obtained this understanding from discussions with those charged with governance, who did not make the engagement team aware of any non-compliance with laws and regulations or instances of fraud throughout the year or since the year end. In performing the above procedures we focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Red Tractor Farm Assurance Poultry Scheme, the RSPCA Farm Assurance Scheme, the Organic Farms & Growers Association accreditation, the BRC accreditation, the Animal Welfare Act 2006, the Welfare of Farmed Animals Regulations 2007, the Companies Act 2006, UK Health & Safety law including RIDDOR (HSE 2013), Employment law and tax legislation. We enquired with those charged with governance as to how they ensure the Company complies with the applicable legal & regulatory framework. -The Company is subject to frequent regulatory audits & inspections, from both key customers and regulatory bodies such as SEDEX and the APHA.
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TRADITIONAL NORFOLK POULTRY LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADITIONAL NORFOLK POULTRY LIMITED (CONTINUED)
-DEFRA keeps a poultry register for any premises on which more than 50 birds are kept. The Company have a specific DEFRA license number, and are in regular communication with DEFRA, passing over key information in order to maintain the license. -The Company also has a health and safety committee which is comprised of several members of the companies management personel who meet monthly to discuss key risks and any issues surrounding health and safety. Following detailed team briefings, the responsible individual has assessed that the audit engagement team collectively has the appropriate competence and capabilities to identify or recognise non-compliance with applicable laws and regulation. Nonetheless, because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities 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 Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Anglia House, 6 Central Avenue
St Andrews Business Park
Thorpe St Andrew
Norfolk
NR7 0HR
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TRADITIONAL NORFOLK POULTRY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
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TRADITIONAL NORFOLK POULTRY LIMITED
REGISTERED NUMBER: 04021155
BALANCE SHEET
AS AT 30 JUNE 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 33 form part of these financial statements.
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TRADITIONAL NORFOLK POULTRY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Traditional Norfolk Poultry Limited is a private company, limited by shares, registered in England and Wales. The registered number is 04021155. The company's registered office is Oak Tree Business Park, Hargham Road, Shropham, Attleborough, Norfolk, NR17 1DS.
The Company's principal activity is the production and processing of free range chickens and turkeys. These financial statements are presented in Sterling, which is the Company's functional currency. Monetary amounts are rounded to the nearest £1.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of M.R. Gorton Limited as at 30 June 2024 and these financial statements may be obtained from Companies House.
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
As at 30 June 2024, the Company had net current liabilities of £1,321,992 (2023: £2,552,355), including creditors of £4,708,205 (2023: £4,723,676) relating to invoice discounting advances. The day to day funding requirements are met through the invoice discounting facility which has been agreed on a rolling basis and no matters have been drawn to the directors' attention to suggest that the facility will not be renewed on acceptable terms.
The directors carry out a periodic forecasting exercise covering the operations of the Company and as a result of this and considering possible sensitivities, the director has a reasonable expectation that the Company has adequate resources to continue to meet the obligations of the company as they fall due. The directors will continue to monitor the situation closely, but at the date of signing the accounts, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The directors have therefore prepared the financial statements on a going concern basis.
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
Amortisation is provided on the following bases:
Contract intangible assets represent the independent valuation attributable to RHI contracts incorporated into the company. This being written off to profit or loss over the life of the contracts of 18 years.
The assets residual values, useful lives and amortisation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
The recoverable amount of the asset (or asset's cash generating unit) is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset's (or asset's cash generating unit) continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market risk-free rate and the risks inherent in the asset. If the recoverable amount of the asset (or asset's cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the statement of comprehensive income, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in the statement of comprehensive income. If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the statement of comprehensive income. Stock consists predominantly of biological assets which are accounted for using the cost model as set out above. The significant assumptions applied are set out in note 3.
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
Where debts are invoice discounted the separate presentation treatment has been adopted. In accordance with this, the gross amount of the debts is included within trade debtors with advances received from invoice discounting being shown as a liability included within creditors.
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. 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 profit or loss 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 Statement of Comprehensive Income on a straight line basis over the period of the lease. Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. Increases in provisions are generally charged as an expense to the Statement of Comprehensive Income.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Depreciation of tangible assets An allowance for depreciation is made against tangible assets and charged to the statement of comprehensive income over the useful economic lives of the assets. The useful economic life assessment of an asset is based on the time in which benefits of the asset are realised to the company. See note 14 for the net carrying value of the tangible assets, and note 2.7 for the useful economic lives for each class of asset. Impairment of debtors The directors make an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, the directors consider factors including the credit worthiness and financial conditions of customers. See note 16 for the net carrying amount of the debtors and associated impairment provision. Valuation of stocks The directors make an estimate of the recoverable value of stocks. When calculating the stock provision, management considers the nature and condition of the stock as well as applying assumptions around anticipated saleability of goods held for resale. See note 15 for the net carrying amount of stocks and the related movement in impairment provision. Management have estimated costs directly attributable to the valuation of livestock. These estimates include a proportion of overheads absorbed into the stock valuation. For gas, shavings and vet & medical costs in relation to chicks, a unit price is calculated by dividing the total cost for the year by the number of birds processed. This unit cost is then multiplied by the quantity of chicks in a given batch at the year end. This cost is also split evenly between the time chicks spend on a Brood/day old to death farm and time spent on a finish farm. Contract rearing costs are calculated as a cost per bird per day. The contract rearing cost per bird used is calculated as the total cost for the contract rearing per the rate agreed with the contract rearer divided by the number of batches per farm. The cost absorbed into the year-end stock value is then calculated by multiplying the cost per bird by the quantity of chicks in a batch at the year-end multiplied by the number of days they have spent on the farm. For rent, a cost per bird is calculated based on the annual rent charge per farm divided by the total number of batches of chickens that are sent to that farm in the period. Farms will provide monthly rental invoices which remain consistent throughout the year, therefore a monthly invoice will be multiplied by 12 to give an annual rental amount that is applied in the calculation. The rent cost per batch is then multiplied by the total quantity in stock at year-end. Labour costs are absorbed based on the total wages in relation to workers in the weekly paid catching, farm building and farming departments. Using the total of these wage costs a cost per bird for the year is calculated by dividing the labour cost by birds processed. A cost per chick per day is then calculated based on an assumed life cycle of 63 days per chick, which is based on an average of all kill days for the various types of chickens bred per industry standards. The cost per bird per day is then applied to the number of birds in stock at the year-end.
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
The directors are of the opinion that there is only one category of business, as set out in note 1. All income was earned in the UK.
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Page 23
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Page 24
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
Page 25
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Page 26
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Page 27
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
14.Tangible fixed assets (continued)
Page 29
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Page 30
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Page 31
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
Profit and loss account
The company operates a defined contribution pension scheme. The assets of the scheme are held in an independently administered fund. The pension cost and charge for the year represents contributions payable by the company to the fund and amounted to £210,185 (2023 - £116,227). At the year-end, contributions totalling £49,101 (2023 - £38,074) were payable to the fund and are included in creditors.
The Company has made several capital purchases totalling £537,351 of which £249,446 was financed via new Hire Purchase agreements.
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TRADITIONAL NORFOLK POULTRY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
The Directors have identified that deferred income pertaining to grants were inaccurately aged in the prior year. Consequently, the 2023 comparatives have been corrected to move £771,818 from accruals and deferred income due within one year to accruals and deferred income due after one year.
The immediate and ultimate parent undertaking is M. R. Gorton Limited.
The ultimate controlling party is Mr M R Gorton. M. R. Gorton Limited is the company of the smallest and largest group of undertakings for which group financial statements are drawn up. Copies of the consolidated financial statements of M. R. Gorton Limited are publicly available from Companies House, Crown Way, Cardiff, CF14 3UZ.
Page 33
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