Additions
On 12 December 2023, the company transferred the majority of its mussel farming business, including plant and machinery, stock and leasehold interests, to West Country Mussels of Fowey Limited, a company in which it subsequently acquired a minority shareholding.
The transfer was completed under an asset purchase agreement in exchange for 8 B ordinary shares in West Country Mussels of Fowey Limited. The assets disposed of had a total net book value of £1,519,136. No individual consideration was assigned to the assets in the agreement, and the consideration was satisfied entirely by the issue of shares.
Impairment
The company recognised an impairment loss of £1,177,252 in respect of its investment in West Country Mussels of Fowey Limited during the year.
The investment was initially recognised at a value of £1,519,136 representing the carrying amount of assets transferred to West Country Mussels in exchange for 8 B ordinary shares, plus acquisition costs, on 12 December 2023. At the year end, the directors assessed the fair value of the investment to be £341,884, based on the company’s shareholding and the net asset position of West Country Mussels as at 31 March 2024.
As a result, an impairment charge of £1,208,786 has been recognised in the profit and loss account.