| REGISTERED NUMBER: |
| SKEA EGG FARMS LIMITED |
| Strategic Report, Directors' Report and |
| Financial Statements for the Period 1 January 2024 to 30 September 2024 |
| REGISTERED NUMBER: |
| SKEA EGG FARMS LIMITED |
| Strategic Report, Directors' Report and |
| Financial Statements for the Period 1 January 2024 to 30 September 2024 |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Contents of the Financial Statements |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Directors' Report | 4 |
| Independent Auditors' Report | 8 |
| Income Statement | 12 |
| Statement of Financial Position | 13 |
| Statement of Changes in Equity | 14 |
| Notes to the Financial Statements | 15 |
| SKEA EGG FARMS LIMITED |
| Company Information |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| DIRECTORS: |
| SECRETARY: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| INDEPENDENT AUDITORS: |
| Chartered Accountants and Statutory Auditors |
| 36-38 Northland Row |
| Dungannon |
| Co. Tyrone |
| BT71 6AP |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Strategic Report |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| The directors present their strategic report for the period 1 January 2024 to 30 September 2024. |
| REVIEW OF BUSINESS |
| Skea Egg Farms Limited has delivered a strong trading performance for the period ended 30 September 2024 and the business remains in a strong financial position. |
| In the 9 month period Skea Egg Farms recorded a revenue of £146,180,687, (2023: £159,691,890). Gross profit margin 8.23% (2023: 8.76%). The Company generated profit before tax of £5,583,004 (2023: £7,300,974). |
| The Company's production facilities are located in Dungannon, Co. Tyrone, Northern Ireland. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The Company directors recognise the key business risks and uncertainties relating to the industry, product, pricing and profitability. The directors continue to work closely with suppliers and customers to carefully manage the company's operations. |
| The food production and processing sector is affected by many factors including commodity markets, government and EU legislation, changes in international agricultural practices, competition and disease outbreaks among poultry flocks. The board has put in place systems and procedures which monitor these factors. |
| Competition risk: |
| Competition risk comes from other egg manufacturers. The directors manage this risk by ensuring a quality product is offered to all customers at a competitive price. |
| Business Operations and execution of the Company's strategic plan are subject to several risks and uncertainties: |
| Inflationary cost pressures: manufacturers continue to be exposed to pressures created by Brexit, rising energy costs, supply chain disruption and the war in Ukraine. The business remains vigilant to the potential headwinds experienced by all aspects of the project cycle and seeks to mitigate these risks through robust commercial and risk management, on-going dialogue with key stakeholders, including customers and supply chain. |
| KEY PERFORMANCE INDICATORS |
| Financial key performance indicators: |
| 2024 | 2023 |
| £ | £ |
| Revenue | 146,180,687 | 159,691,890 |
| Gross Profit | 12,025,180 | 13,991,500 |
| Gross Profit Margin | 8.23% | 8.76% |
| Non-financial key performance indicators: |
| 2024 | 2023 |
| Average number of employees | 154 | 150 |
| FUTURE DEVELOPMENTS |
| The Company is committed to long term creation of shareholder value by increasing the Company's market share in the UK and Irish markets. The economic environment continues to evolve and is making a return to relative stability and certainty. Overall in the coming year the Company aims to maintain revenue and operating profits. The Company will continue to develop relations with suppliers, generate new business where possible and increase retention levels while remaining highly competitive. The Company is continually researching and developing new products and services to ensure it continues to provide a strong product to the market. |
| ENVIRONMENT |
| The Company recognises its corporate responsibility to carry out its operations whilst ensuring that there is minimal environmental impact. The directors continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce wastage wherever possible. |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Strategic Report |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| EMPLOYEES |
| Employees are kept as fully informed as practicable about developments within the business. It is the policy of the Company to offer opportunities to all employees having regard to their aptitudes and abilities in relation to jobs available. |
| The Company is aware of its requirements as a large employer in respect of the Modern Slavery Act 2015 in requiring large employers to be transparent about their efforts to eradicate Slavery and Human Trafficking in their supply chain. The Company has a policy in place in respect of same, a copy of which is available on the Company's website. The policy is made in accordance with Section 54(1) of the Modern Slavery Act 2015 and is reviewed on an annual basis. |
| ON BEHALF OF THE BOARD: |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Directors' Report |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| The directors present their report with the financial statements of the Company for the period 1 January 2024 to 30 September 2024. |
| DIVIDENDS |
| An interim dividend amounting to £3,000,000 was paid during 2024 (2023: £4,000,000). The directors do not recommend the payment of a final dividend (2023: £Nil). |
| RESEARCH AND DEVELOPMENT |
| The Company continues to recognise the importance of its research and development programme, which it believes is essential to ensure that the business continues to develop new products and remain in competitive markets. |
| EVENTS SINCE THE END OF THE PERIOD |
| Information relating to events since the end of the period is given in the notes to the financial statements. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report. |
| Other changes in directors holding office are as follows: |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Directors' Report |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| FINANCIAL RISK MANAGEMENT |
| The company's operations expose them to a variety of financial risks that include price risk, foreign exchange risk, credit risk, liquidity risk and interest rate risk. The company have in place a Corporate Risk Register, subject to a regular review, that seeks to limit the adverse effects on the financial performance of the company by monitoring levels of debt finance and the related finance costs. Given the size of the company, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the company's finance department. |
| Price risk |
| The company are exposed to commodity price risk because of its operations, with on-going inflationary pressures due to a myriad of factors. However, given the size of the company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the group's and company's operations change in size or nature. |
| Foreign exchange risk |
| While the greater part of the company's revenues and expenses are denominated in sterling, the company are exposed to some foreign exchange risk in the normal course of business, principally on sales recorded in Euros. The foreign exchange risk for the company extends also to subsidiary companies and branches whose functional currency is Euro which require translation to sterling for reporting purposes. While the company has not used complex financial instruments to date to hedge foreign exchange exposure, this position is kept constantly under review. |
| Credit risk |
| The company operate policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. |
| Liquidity risk |
| The company actively maintain a mixture of long-term and short-term debt finance that is designed to ensure that the company have sufficient available funds for operations and planned expansions. |
| Interest rate risk. |
| The company have both interest-bearing assets and interest-bearing liabilities. Interest bearing assets include cash balances, which carry interest at a variable rate. Interest bearing liabilities relate to shareholder loans and other loans and obligations under finance lease agreements, which bear interest at market rates. |
| Results and dividends |
| The company's profit for the period ended 30 September 2024 is £4,690,355. An interim dividend of £3,000,000 was paid in year and there is no final dividend proposed. |
| DISCLOSURES REQUIRED UNDER SCHEDULE 7 |
| In accordance with Section 414C (11) of Companies Act 2006, the directors have elected to disclose details of the business review, principal risks and uncertainties and future developments in the Company's Strategic Report which would otherwise be required to be disclosed in the Directors' Report. |
| STREAMLINED ENERGY AND CARBON REPORTING |
| Under Streamlined Energy and Carbon Report (SECR) legislation we are mandated to include energy consumption, emissions, intensity metrics, and all energy efficiency improvements implemented in our most recent financial year, for our UK operations. We are proud to say we achieved 100% verifiable data coverage with no estimations required. |
| Skea Egg Farm's Scope 1 and 3 direct emissions (combustion of natural gas and transportation fuels) for this reporting year are 389.14 tCO2e, resulting from the direct combustion of 1,980,894 kWh. This represents a carbon decrease of 9.27% from last year ending December 2023. |
| Scope 2 indirect emissions (purchased electricity) for this reporting year are 96.28 tCO2e, resulting from the consumption of 602,740 kWh of electricity purchased and consumed in day-to-day business operations. This represents a carbon decrease of 15.09% from last year ending December 2023. |
| Skea Egg Farm's operations have an intensity metric of 0.01260 tCO2e/finished product tonnes for this reporting year. This represents an decrease of 5.75% from last year ending December 2023. |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Directors' Report |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| We are committed to year-on-year improvements in our operational energy efficiency. A register of energy efficiency measures has been compiled, with a view to implementing these measures in the next five years. |
Measure |
For the period ended 30 September 2024 |
For the year ended 31 December 2023 |
Units |
| Energy consumption used to calculate emissions |
2,583,633 |
2,928,708 |
kWh |
| Emissions from purchased electricity |
96.28 |
113.39 |
tCO2e |
| Emissions from gas, fuels and transportation |
389.14 |
446.84 |
tCO2e |
| Total Gross tCO2e | 485.42 | 560.23 | tCO2e |
| Intensity ratio | 0.01260 | 0.01337 | Gross tCO2e/production tonne |
| Human Rights, Modern Slavery and Human Trafficking |
| As the world is grappling with the challenges of human nature and climate change, it is vitally important that we continue to identify, prevent, mitigate, and account for how we address adverse human rights impacts within our business and supply chain. |
| We have a responsibility to respect international human rights standards (by not infringing on people's rights), and to address adverse human rights impacts that we cause or contribute to. |
| Modern slavery is a crime and a violation of fundamental human rights. It takes various forms, such as slavery, servitude, forced and compulsory labour and human trafficking, all of which have in common the deprivation of a person's liberty by another in order to exploit them for personal or commercial gain. We have a zero-tolerance approach to modern slavery and we are committed to acting ethically and with integrity in all our business dealings and relationships and to implementing and enforcing effective systems and controls to ensure modern slavery is not taking place anywhere in our own business or in any of our supply chain. |
| From 2021 Skea Egg Farms has added its annual modern slavery statement to the UK government's Modern Slavery statement registry online. Please refer to this, or visit www.skeaeggs.com for our full statement. |
| 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Directors' Report |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| DIRECTORS' RESPONSIBILITIES STATEMENT - continued |
| 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 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. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Company's auditors are aware of that information. |
| AUDITORS |
| The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006. |
| ON BEHALF OF THE BOARD: |
| Independent Auditors' Report to the Members of |
| Skea Egg Farms Limited |
| Opinion |
| We have audited the financial statements of Skea Egg Farms Limited (the 'Company') for the period ended 30 September 2024 which comprise the Income Statement, Statement of Financial Position, 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). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the Company's affairs as at 30 September 2024 and of its profit for the period 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the 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. |
| Independent Auditors' Report to the Members of |
| Skea Egg Farms Limited |
| 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 where 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 pages six and seven, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the 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. |
| Independent Auditors' Report to the Members of |
| Skea Egg Farms Limited |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company. |
| In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
| - | We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation; |
| - | We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
| - | We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
| - | Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
| - | Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override. |
| The audit response to risks identified included: |
| - | Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
| - | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
| - | In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
| 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. |
| Independent Auditors' Report to the Members of |
| Skea Egg Farms Limited |
| Use of our report |
| This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in 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 and Statutory Auditors |
| 36-38 Northland Row |
| Dungannon |
| Co. Tyrone |
| BT71 6AP |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Income Statement |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| Period |
| 1/1/24 |
| to | Year ended |
| 30/9/24 | 31/12/23 |
| Notes | £ | £ |
| TURNOVER |
| Cost of sales | ( |
) | ( |
) |
| GROSS PROFIT |
| Distribution costs | ( |
) | ( |
) |
| Administrative expenses | ( |
) | ( |
) |
| 5,568,136 | 7,293,735 |
| Other operating income |
| OPERATING PROFIT | 5 |
| Finance costs | 6 | ( |
) | ( |
) |
| PROFIT BEFORE TAXATION |
| Tax on profit | 7 | ( |
) | ( |
) |
| PROFIT FOR THE FINANCIAL PERIOD |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Statement of Financial Position |
| 30 SEPTEMBER 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| NON-CURRENT ASSETS |
| Tangible assets | 9 |
| CURRENT ASSETS |
| Stocks | 10 |
| Receivables: amounts falling due within one year |
11 |
| Cash at bank |
| PAYABLES |
| Amounts falling due within one year | 12 | ( |
) | ( |
) |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| PAYABLES |
| Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
| GOVERNMENT GRANTS | 16 | ( |
) | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 17 |
| Share premium | 18 |
| Capital redemption reserve | 18 |
| Retained earnings | 18 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Statement of Changes in Equity |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| Called up | Capital |
| share | Retained | Share | redemption | Total |
| capital | earnings | premium | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 January 2023 |
| Changes in equity |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - | - |
| Balance at 31 December 2023 |
| Changes in equity |
| Dividends | - | ( |
) | - | - | ( |
) |
| Total comprehensive income | - | - |
| Balance at 30 September 2024 |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Notes to the Financial Statements |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| 1. | STATUTORY INFORMATION |
| Skea Egg Farms Limited is a |
| 2. | STATEMENT OF COMPLIANCE |
| 3. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements have been prepared under the historical cost convention, modified when necessary to include the revaluation of certain fixed assets. |
| Financial Reporting Standard 102 - reduced disclosure exemptions |
| FRS 102 allows a qualifying entity certain disclosure exemptions, subject to certain conditions, which have complied with, including notification of, and no objection to, the use of exemptions by the Company's shareholders. |
| The Company has taken advantage of the following exemptions: |
| - from preparing a Statement of cash flows on the basis that it is a qualifying entity and its ultimate parent Company, Lough Erne Investments Limited, includes the Company's cash flow in its own consolidated financial statements; |
| - from the financial instrument disclosures, required under FRS 102 paragraphs 11.41(b) to 11.48(c) and 12.26 to 12.29 as the information is provided in the consolidated statement disclosure; and |
| - from disclosing the Company's key management personnel compensation as required by FRS 102 paragraph 33.7. |
| Related party exemption |
| The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
| Skea Egg Farms Limited is a wholly owned subsidiary of Ready Egg Products Limited and the company has taken this exemption. |
| Significant judgements and estimates |
| Estimates and judgements are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
| a) Critical judgements in applying the entity's accounting policies |
| There are no critical judgements in applying the entity's accounting policies. |
| b) Key accounting estimates and assumptions |
| There are no critical accounting estimates and assumptions. |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| 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 significant risks and rewards of ownership have been transferred to the buyer; |
| - the company retains no continuing involvement or control over the goods; |
| - the amount of revenue can be measured reliably; |
| - it is probable that future economic benefits will flow to the company |
| - the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
| Property, plant and equipment |
| Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
| The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows: |
| Freehold buildings | 4% Straight Line |
| Plant and Machinery | 10% - 20% Straight line |
| Fixtures and fittings | 20% Straight line |
| Motor Vehicles | 20% Reducing balance |
| The carrying values of property, plant and equipment are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable and is charged to the Income Statement. |
| Inventories |
| Stocks are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The company have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
| (i) Financial assets |
| Basic financial assets, including trade and other receivables, and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. |
| At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
| If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the Income Statement. |
| Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
| (ii) Financial liabilities |
| Basic financial liabilities, including trade and other payables, bank loans and overdrafts and hire purchase contracts are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
| Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
| Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
| (iii) Offsetting |
| Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| 3. | ACCOUNTING POLICIES - continued |
| Taxation |
| Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
| Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
| Deferred tax |
| Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
| Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference. |
| Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
| Pension costs and other post-retirement benefits |
| The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
| Distributions to equity holders |
| Dividends and other distributions to the Company's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the Company's shareholders. These amounts are recognised in the statement of changes in equity. |
| Foreign currencies |
| Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange prevailing at the accounting date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transactions or at the contracted date. All differences are taken to the profit and loss account. |
| Share capital |
| Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
| Government Grants |
| Grants received in respect of capital equipment purchases are credited to a deferred income account and released to the profit and loss accounts over the useful life of the asset. |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| 4. | EMPLOYEES AND DIRECTORS |
| Staff costs, including directors' remunerations, were as follows: |
| Period 1/1/24 to 30/9/24 | Year ended 31/12/23 |
| £ | £ |
| Wages and salaries | 3,776,859 | 5,024,880 |
| Social security costs | 417,895 | 372,523 |
| Other pension costs | 60,376 | 166,940 |
| 4,245,130 | 5,564,343 |
| The average number of employees during the period was as follows: |
| Period 1/1/24 to 30/9/24 | Year ended 31/12/23 |
| Production | 135 | 105 |
| Selling and distribution | 9 | 18 |
| Administration | 10 | 27 |
| 154 | 150 |
| During the year retirement benefits were accruing to two directors (2023: two) in respect of defined benefit pension schemes. |
| Period 1/1/24 to 30/9/24 | Year ended 31/12/23 |
| £ | £ |
| Remuneration | 497,023 | 1,289,726 |
| Pension contributions | 6,983 | 5,954 |
| 504,006 | 1,295,680 |
| The amounts in respect of the highest paid director are as follows: |
| Period 1/1/24 to 30/9/24 | Year ended 31/12/23 |
| £ | £ |
| Remuneration | 319,485 | 616,877 |
| Pension contributions | 4,108 | 1,087 |
| 323,593 | 617,964 |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| Period to 30/9/24 | Year ended 31/12/23 |
| £ | £ |
| Hire of plant and machinery | - | 1,940 |
| Depreciation - owned assets | 942,668 | 951,534 |
| Loss/(Profit) on disposal of fixed assets | (6,391 | ) | (208,358 | ) |
| Amortisation of government capital grants | (2,081 | ) | (2,081 | ) |
| Foreign exchange differences | (3,988 | ) | (2,270 | ) |
| Auditor's remuneration - audit services | 15,000 | 12,500 |
| Auditor's remuneration - non audit services | 1,750 | 6,143 |
| 6. | FINANCE COSTS |
| Period |
| 1/1/24 |
| to | Year ended |
| 30/9/24 | 31/12/23 |
| £ | £ |
| Hire purchase interest |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the period was as follows: |
| Period |
| 1/1/24 |
| to | Year ended |
| 30/9/24 | 31/12/23 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Adjustment in respect of prior periods | (268,930 | ) | - |
| Total current tax |
| Deferred tax | ( |
) |
| Tax on profit |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| 7. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
| Period |
| 1/1/24 |
| to | Year ended |
| 30/9/24 | 31/12/23 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of |
| Effects of: |
| Expenses not deductible for tax purposes |
| Income not taxable for tax purposes | ( |
) |
| Non-relevant depreciation | 20,979 | 27,843 |
| Adjustments in respect of prior periods | (524,171 | ) | (180,626 | ) |
| Difference in tax rates used for current and deferred tax | - | 90,810 |
| Additional tax relief from superdeduction | - | (18,187 | ) |
| Total tax charge | 892,649 | 1,876,065 |
| 8. | DIVIDENDS |
| Period |
| 1/1/24 |
| to | Year ended |
| 30/9/24 | 31/12/23 |
| £ | £ |
| Allotted, called up and fully paid shares of £1.00 each |
| Interim |
| 9. | PROPERTY, PLANT AND EQUIPMENT |
| Freehold | Plant and |
| Land | Buildings | machinery |
| £ | £ | £ |
| COST |
| At 1 January 2024 |
| Additions |
| Disposals |
| At 30 September 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for period |
| Eliminated on disposal |
| At 30 September 2024 |
| NET BOOK VALUE |
| At 30 September 2024 | 1,249,614 | 1,800,674 | 5,227,001 |
| At 31 December 2023 |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| 9. | PROPERTY, PLANT AND EQUIPMENT - continued |
| Fixtures |
| and | Motor |
| fittings | vehicles | Totals |
| £ | £ | £ |
| COST |
| At 1 January 2024 |
| Additions |
| Disposals | ( |
) | ( |
) |
| At 30 September 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for period |
| Eliminated on disposal | ( |
) | ( |
) |
| At 30 September 2024 |
| NET BOOK VALUE |
| At 30 September 2024 | 107,449 | 836,313 | 9,221,051 |
| At 31 December 2023 |
| 10. | STOCKS |
| 2024 | 2023 |
| £ | £ |
| Egg stocks |
| Packaging stocks |
| Fuel stocks | 20,122 | 21,564 |
| 11. | RECEIVABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Trade receivables |
| Other receivables | 2,801,484 | 1,819,202 |
| Amounts owed by group undertakings |
| Amounts owed by related parties |
| Prepayments and accrued income |
| The amounts owed by group undertakings and related parties are unsecured, interest free and payable on demand. |
| 12. | PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts (see note 14) |
| Trade payables |
| Amounts owed to group undertakings |
| Corporation tax |
| Social security and other taxes |
| Other payables |
| Accruals and deferred income |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| 12. | PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued |
| The amount owed to group undertakings are interest free and repayable on demand. |
| 13. | PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR |
| 2024 | 2023 |
| £ | £ |
| Hire purchase contracts (see note 14) |
| 14. | LEASING AGREEMENTS |
| Minimum lease payments under hire purchase fall due as follows: |
| 2024 | 2023 |
| £ | £ |
| Net obligations repayable: |
| Within one year |
| Between one and five years |
| 15. | PROVISIONS FOR LIABILITIES |
| 2024 | 2023 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances |
| Other timing differences | (255,242 | ) | - |
| 1,012,892 | 1,234,537 |
| Deferred tax |
| £ |
| Balance at 1 January 2024 |
| Movement during the period | (221,645 | ) |
| Balance at 30 September 2024 |
| 16. | GOVERNMENT GRANTS |
| 2024 | 2023 |
| £ | £ |
| Deferred government grants | 10,884 | 12,484 |
| 17. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Allotted, called up and fully |
| paid | £1.00 | 510 | 510 |
| SKEA EGG FARMS LIMITED (REGISTERED NUMBER: NI031124) |
| Notes to the Financial Statements - continued |
| FOR THE PERIOD 1 JANUARY 2024 TO 30 SEPTEMBER 2024 |
| 18. | RESERVES |
| Capital |
| Retained | Share | redemption |
| earnings | premium | reserve | Totals |
| £ | £ | £ | £ |
| At 1 January 2024 | 15,014,287 |
| Profit for the period |
| Dividends | ( |
) | ( |
) |
| At 30 September 2024 | 16,704,642 |
| 19. | PENSION COMMITMENTS |
| The company makes contributions to a defined contribution scheme, the assets of the scheme being held separately from the assets of the company. The pension cost charge represents contributions payable to the scheme and amount to £60,376 (2023: £166,940). Contributions were payable to the scheme at the year end amounting to £6,966 (2023: £6,590). |
| 20. | PARENT COMPANY |
| The Company regards Ready Egg Products Limited as its parent Company |
| Mr Charles Crawford is the ultimate controlling party. |
| 21. | RELATED PARTY DISCLOSURES |
| The following have been identified as related parties due to their interest in the share capital of the company. |
| Fane Valley Stores Limited, a Company established in Northern Ireland, owns 49% of the issued |
| share capital of Ready Egg Products Limited which is the parent company of Skea Egg Farms Limited, and the companies have common directors. |
| Lough Erne Investments Limited, a Company established in Northern Ireland, owns 51% of the |
| issued share capital of Ready Egg Products which is the parent company of Skea Egg Farms Limited and the companies have common directors. |
| Hayes Farms is also regarded as a related party due to common directors. |
| The total transactions with these entities during the year are as detailed below: |
| 2024 | 2023 |
| £ | £ |
| Sales | 415,348 | - |
| Purchases | 21,495,479 | 1,454,439 |
| Balance | (8,834,372) | 320,192 |
| 22. | POST BALANCE SHEET EVENTS |
| There were no post balance sheet events. |