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Registered number: 04021155










TRADITIONAL NORFOLK POULTRY LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2024

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

COMPANY INFORMATION


Directors
Mr M R Gorton 
Mr A C Holt (appointed 6 September 2023)
Mr J Lambert (appointed 6 September 2023)
Mr S J McKinney (appointed 6 September 2023)




Registered number
04021155



Registered office
Oak Tree Business Park
Hargham Road

Attleborough

Norfolk

NR17 1DS




Independent auditors
Price Bailey LLP
Chartered Accountants & Statutory Auditors

Anglia House, 6 Central Avenue

St Andrews Business Park

Thorpe St Andrew

Norwich

Norfolk

NR7 0HR





 
TRADITIONAL NORFOLK POULTRY LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 7
Independent Auditors' Report
 
8 - 11
Statement of Comprehensive Income
 
12
Balance Sheet
 
13
Statement of Changes in Equity
 
14
Notes to the Financial Statements
 
15 - 33

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024

Introduction
 
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.

Business review
 
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.   

Principal risks and uncertainties
 
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.
 
Page 1

 
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. 

Financial key performance indicators
 
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.   

Future developments
 
The Company has a continued strategy to grow the farming base and continue to invest in the facilities at Shropham.

Page 2

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Directors' statement of compliance with duty to promote the success of the Company
 
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.



Mr M R Gorton
Director
Page 3

 
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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 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 2006They 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.

Principal activity

The principal activity of the company in the year under review was that of the production and processing of free range chickens and turkeys.

Results and dividends

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.

Directors

The directors who served during the year were:

Mr M R Gorton 
Mr A C Holt (appointed 6 September 2023)
Mr J Lambert (appointed 6 September 2023)
Mr S J McKinney (appointed 6 September 2023)

Page 4

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024

Engagement with 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 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.


 
Page 5

 
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


 

Page 6

 
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.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

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.

Auditors

The auditorsPrice Bailey LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 16 October 2024 and signed on its behalf.
 





Mr M R Gorton
Director

Page 7

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADITIONAL NORFOLK POULTRY LIMITED
 

Opinion


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 policiesThe 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 Company's affairs as at 30 June 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 8

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADITIONAL NORFOLK POULTRY LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the 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.


Matters on which we are required to report by exception
 

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.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 Directors' Responsibilities Statement set out on page 4, 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.


Page 9

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TRADITIONAL NORFOLK POULTRY LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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. 
 
Page 10

 
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.


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 2006Our 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.





Aaron Widdows ACA FCCA (Senior Statutory Auditor)
  
for and on behalf of
Price Bailey LLP
 
Chartered Accountants
Statutory Auditors
  
Anglia House, 6 Central Avenue
St Andrews Business Park
Thorpe St Andrew
Norwich
Norfolk
NR7 0HR

16 October 2024
Page 11

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024

2024
2023
Note
£
£

  

Turnover
 4 
49,082,671
45,319,331

Cost of sales
  
(37,582,287)
(40,104,324)

Gross profit
  
11,500,384
5,215,007

Administrative expenses
  
(8,222,399)
(7,777,081)

Other operating income
 5 
565,503
3,015,919

Operating profit
 8 
3,843,488
453,845

Exceptional items
 9 
(592,029)
-

Interest payable and similar expenses
 10 
(555,898)
(460,933)

Profit/(loss) before tax
  
2,695,561
(7,088)

Tax on profit/(loss)
 11 
(1,108,498)
84,289

Profit for the financial year
  
1,587,063
77,201

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 15 to 33 form part of these financial statements.
Page 12

 
TRADITIONAL NORFOLK POULTRY LIMITED
REGISTERED NUMBER: 04021155

BALANCE SHEET
AS AT 30 JUNE 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
352,155
406,300

Tangible assets
 14 
11,409,029
11,839,612

  
11,761,184
12,245,912

Current assets
  

Stocks
 15 
2,300,497
2,001,426

Debtors: amounts falling due within one year
 16 
7,130,701
7,320,184

Cash at bank and in hand
  
374,516
310,102

  
9,805,714
9,631,712

Creditors: amounts falling due within one year
 17 
(11,127,706)
(12,184,067)

Net current liabilities
  
 
 
(1,321,992)
 
 
(2,552,355)

Total assets less current liabilities
  
10,439,192
9,693,557

Creditors: amounts falling due after more than one year
 18 
(1,436,020)
(1,942,173)

Provisions for liabilities
  

Deferred tax
 12 
(1,336,846)
(878,621)

  
 
 
(1,336,846)
 
 
(878,621)

Net assets
  
7,666,326
6,872,763


Capital and reserves
  

Called up share capital 
 21 
50
50

Profit and loss account
 22 
7,666,276
6,872,713

  
7,666,326
6,872,763


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 October 2024.




Mr M R Gorton
Director

The notes on pages 15 to 33 form part of these financial statements.
Page 13

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 July 2022
50
7,022,069
7,022,119


Comprehensive income for the year

Profit for the year
-
77,201
77,201

Dividends: Equity capital
-
(226,557)
(226,557)



At 1 July 2023
50
6,872,713
6,872,763


Comprehensive income for the year

Profit for the year
-
1,587,063
1,587,063

Exceptional dividends: Equity capital
-
(490,000)
(490,000)

Ordinary dividends: Equity capital
-
(303,500)
(303,500)


At 30 June 2024
50
7,666,276
7,666,326


The notes on pages 15 to 33 form part of these financial statements.

Page 14

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

1.


General information

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

 
2.1

Basis of preparation of financial statements

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:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

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.

Page 15

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.3

Going concern

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.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

These conditions are typically met upon delivery.

  
2.5

Employee benefits

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.

Page 16

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.6

Intangible assets

 Amortisation is provided on the following bases:

RHI contracts
-
18 years straight line
Website
-
10% reducing balance

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.

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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:

Freehold property
-
2% and 20% straight line
Property Improvements
-
10% - 20% reducing balance and 2% SL
Motor vehicles
-
25% on reducing balance
Plant and machinery
-
15% reducing balance and 50% straight line
Office equipment
-
20% on reducing balance

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.

Page 17

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

 
2.8

Impairment

At each balance sheet date non-financial assets not carried at fair value are assessed to determine  whether  there is an indication that the asset (or asset's cash generating unit) may be impaired. If there is such an indication the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying amount of the asset (or asset's cash generating unit).
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.

 
2.9

Stocks

Stocks and work in progress are valued at the lower of cost, calculated on a first in first out basis, and estimated net realisable value. The cost of work in progress and finished goods comprises materials, direct labour and attributable production overheads. Net realisable value is based on estimated selling price after allowing for all further costs of completion and disposal. Provision is made for obsolete, slow moving or defective stock where appropriate.
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.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the statement of comprehensive income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Page 18

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)


2.10
Current and deferred taxation (continued)

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
  
2.11

Invoice discounting

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.

  
2.12

Hire purchase and leasing commitments

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.

 
2.13

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.14

Finance costs

Finance costs are charged to the statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.15

Borrowing costs

All borrowing costs are recognised in the Statement of Comprehensive Income in the year in which they are incurred.

  
2.16

Dividends

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.

Page 19

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

2.Accounting policies (continued)

  
2.17

Pensions - defined contribution pension plan

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.

 
2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.20

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

  
2.21

Provisions for liabilities

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.

 
2.22

Financial instruments

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.

Page 20

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that the actual outcomes could differ from those estimates. Estimates and judgments are continually evaluated and are based  on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the process of applying the company’s accounting policies, management has made the following judgements and estimates which have the most significant effect on the amounts recognised in the financial statements:
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.

Page 21

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

4.


Turnover

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.


5.


Other operating income

2024
2023
£
£

RHI income
175,766
158,714

Net rents receivable
55,807
54,708

Government grants receivable
293,674
-

Insurance claims receivable
(16,147)
139,893

Sundry income
56,403
106,416

Income from business interruption claims
-
2,556,188

565,503
3,015,919



6.


Employees

2024
2023
£
£

Wages and salaries
8,060,584
7,333,710

Social security costs
760,317
727,194

Pension costs - defined contribution schemes
210,185
116,227

9,031,086
8,177,131


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Administrative
13
10



Management
41
42



Production
133
138



Farms
47
41

234
231

Page 22

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

7.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
299,177
19,304

Company contributions to private pension schemes
90,000
-


During the year retirement benefits were accruing to 2 directors (2023 - NIL) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £93,549 (2023 - £19,304).
The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £nil (2023 - £nil).
All key management personnel are considered to be the directors. As such, the key management  compensation is equivalent to the directors' emoluments above.


8.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Hire of plant and machinery
192,988
173,441

Depreciation of tangible assets
957,230
948,618

Depreciation-assets on hire purchase contracts
108,025
198,066

Loss on sale of tangible assets
-
17,485

Amortisation of intangible assets
36,516
37,443

Loss on disposal of intangible assets
17,629
-

Auditors' remuneration
35,500
34,000

Auditors' remuneration - non audit services
6,300
6,000

Defined contribution pension costs
210,185
116,227

Government capital grants
(63,857)
(55,016)


9.


Exceptional items

2024
2023
£
£



Amounts written off intercompany loans
(592,029)
-

Page 23

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
50,182
46,856

Hire purchase interest payable
48,561
99,581

Interest on factored debts
457,155
314,496

555,898
460,933


11.


Taxation


2024
2023
£
£

Current tax


Current tax on profits for the year
688,015
-


Total current tax
688,015
-

Deferred tax


Origination and reversal of timing differences
225,412
(84,289)

Adjustments in respect of previous periods
195,071
-

Total deferred tax
420,483
(84,289)


Tax on profit/(loss)
1,108,498
(84,289)
Page 24

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 19%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
2,695,561
(7,088)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
673,890
(1,453)

Effects of:


Expenses not deductible for tax purposes
148,252
603

Adjustments to tax charge in respect of prior periods
195,071
-

Other timing differences leading to an increase (decrease) in taxation
107,249
(10,310)

Non-taxable income
(15,964)
(20,412)

Effect of changes in corporation tax rate
-
(52,717)

Total tax charge for the year
1,108,498
(84,289)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 25

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

12.


Deferred taxation




2024


£






At beginning of year
(878,621)


Charged to profit or loss
(420,483)


Transferred from connected companies
(37,742)



At end of year
(1,336,846)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
1,338,028
1,027,184

Tax losses carried forward
-
(148,104)

Pension surplus
(1,182)
(459)

1,336,846
878,621

Page 26

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

13.


Intangible assets




Website
RHI Contracts
Total

£
£
£



Cost


At 1 July 2023
21,454
637,628
659,082


Disposals
(21,454)
-
(21,454)



At 30 June 2024

-
637,628
637,628



Amortisation


At 1 July 2023
2,732
250,050
252,782


Charge for the year on owned assets
1,093
35,423
36,516


On disposals
(3,825)
-
(3,825)



At 30 June 2024

-
285,473
285,473



Net book value



At 30 June 2024
-
352,155
352,155



At 30 June 2023
18,722
387,578
406,300



Page 27

 


 
TRADITIONAL NORFOLK POULTRY LIMITED


 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024


14.


Tangible fixed assets






Freehold property
Plant and machinery
Motor vehicles
Office equipment
Property Improvements
Total

£
£
£
£
£
£



Cost or valuation


At 1 July 2023
4,268,368
13,033,502
615,466
201,958
3,644,625
21,763,919


Additions
-
774,492
31,195
16,829
62,156
884,672


Disposals
(250,000)
-
-
-
-
(250,000)



At 30 June 2024

4,018,368
13,807,994
646,661
218,787
3,706,781
22,398,591



Depreciation


At 1 July 2023
623,798
7,914,188
454,520
147,510
784,291
9,924,307


Charge for the year
71,529
788,674
41,996
12,651
150,405
1,065,255



At 30 June 2024

695,327
8,702,862
496,516
160,161
934,696
10,989,562



Net book value



At 30 June 2024
3,323,041
5,105,132
150,145
58,626
2,772,085
11,409,029



At 30 June 2023
3,644,570
5,119,314
160,946
54,448
2,860,334
11,839,612

Included in cost of freehold property is freehold land of £287,058 (2023: £537,058) which is not depreciated.

Page 28

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

           14.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2024
2023
£
£



Plant and machinery
612,145
1,096,023

Motor vehicles
-
53,578

612,145
1,149,601


15.


Stocks

2024
2023
£
£

Raw materials
219,051
200,579

Work in progress
2,065,851
1,778,426

Finished goods and goods for resale
15,595
22,421

2,300,497
2,001,426


No provision for impairment has been made against stock or work in progress (2022: £Nil).
The replacement value of stock is not materially different to the carrying value.


16.


Debtors

2024
2023
£
£


Trade debtors
6,485,831
5,460,627

Amounts owed by group undertakings
-
1,047,309

Other debtors
371,675
480,719

Prepayments and accrued income
273,195
331,529

7,130,701
7,320,184


Included within trade debtors are amounts totalling £5,963,987 (2023 - £5,460,627) that are subject to an invoice discounting agreement. These assets have not been derecognised from the balance sheet because the Company remains ultimately responsible for any unpaid balance, so the directors consider significant risks to have been retained.
Amounts due from group undertakings are unsecured, interest free, and have no fixed date of repayment.

Page 29

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

17.


Creditors: Amounts falling due within one year

As restated
2024
2023
£
£

Bank loans
243,937
252,573

Trade creditors
4,501,821
5,177,428

Amounts owed to group undertakings
-
743,898

Corporation tax
789,569
97,318

Other taxation and social security
203,624
129,250

Obligations under finance lease and hire purchase contracts
204,441
377,693

Proceeds of factored debts
4,708,205
4,723,676

Other creditors
134,516
206,895

Accruals and deferred income
341,593
475,336

11,127,706
12,184,067


The proceeds of factored debts relate to amounts advanced under invoice discounting. The balance is measured on the trading debts for which the Company has received monies in advance of trading debt settlement.
Amounts owed to group undertakings are unsecured, interest free, and have no fixed date of repayment.
The hire purchase contracts are secured against the relevant assets. Repayments are made on a monthly basis. Interest is charged at rates between 1.35% and 4.55%.


18.


Creditors: Amounts falling due after more than one year

As restated
2024
2023
£
£

Bank loans
514,530
758,466

Net obligations under finance leases and hire purchase contracts
186,583
411,889

Accruals and deferred income
734,907
771,818

1,436,020
1,942,173


Bank loans are secured by charges over all assets of the Company. Hire purchase contracts are secured by the assets concerned.
The Company has guaranteed bank borrowings of its ultimate parent company. At the year end the liabilities covered by these guarantees totalled £3,050,804 (2023 - £3,290,524).

Page 30

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

19.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
243,937
252,573

Amounts falling due 1-2 years

Bank loans
244,852
231,346

Amounts falling due 2-5 years

Bank loans
243,789
440,246

Amounts falling due after more than 5 years

Bank loans
25,889
86,874

758,467
1,011,039


At the end of the year, the Company had four loans outstanding as follows:
Loan 1 - This is an ongoing loan with Paragon Business Finance plc. The loan is repayable by 60 equal monthly instalments of £2,467, incurring interest at 3.90% and is due to expire in September 2024.
Loan 2 - This is an ongoing loan with HSBC Bank plc. The loan is repayable by 120 equal monthly instalments  of £5,211, incurring interest at 2.60% and is due to expire in November 2029.
Loan 3 - This is an ongoing loan with Paragon Business Finance plc. This loan is repayable by 60 equal monthly instalments of £9,945, incurring interest at 3.87% and is due to expire in July 2026.
Loan 4 - This is an ongoing loan with Investec. The loan is repayable by 60 equal monthly instalments of £6,790, incurring interest at 4.08% and is due to expire in March 2027.


20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2024
2023
£
£


Within one year
204,441
377,693

Between 1-5 years
186,583
411,887

391,024
789,580

Page 31

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

21.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



50 (2023 - 50) Ordinary shares of £1.00 each
50
50



22.


Reserves

Profit and loss account

This is the accumulated distributable reserves of the Company.


23.


Pension commitments

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.


24.


Related party transactions


Directors
Companies associated with a common director
Close family of the directors
£
£
£

Net balance outstanding at start of the year
-
(12,000)
-
Sales in year
11,000
-
-
Salaries in the year
(299,177)
-
(45,994)
Purchases in year
-
(114,115)
-
Amounts paid in year
299,177
108,373
45,994
Amounts received in year
(11,000)
-
-
Net balance outstanding at year end
-
(17,742)
-


25.


Post balance sheet events

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.

Page 32

 
TRADITIONAL NORFOLK POULTRY LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024

26.


Prior year adjustment

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.


27.


Controlling party

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