Company registration number 3574122 (England and Wales)
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11 - 12
Statement of changes in equity
13
Notes to the financial statements
14 - 31
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 AUGUST 2024
- 1 -
The directors present the strategic report for the Period ended 31 August 2024.
Principal activities
The company’s principal activities during the period continued to be the manufacture and supply of compound animal feed.
Fair review of the business
Turnover decreased by 11% from £187m to £165m, with the majority of the decrease in the period relating to decrease in demand for animal feed and less volatility in the commodities market.
Operating profit margins deteriorated slightly during the period, due principally to reasons stated above and increase energy prices.
The balance sheet further strengthened with £38m of shareholders' funds and a current ratio of 376%.
The key financial and other performance indicators during the period were as follows:
52 week period ended
52 week period ended
31 August 2024
2 September 2023
£'000
£'000
Turnover
165,527
186,724
Operating profit
4,595
5,444
Profit after taxation
3,390
4,404
Shareholders funds
37,713
35,139
Current assets % current liabilities
366%
352%
Average number of employees
188
194
Principal risks and uncertainties
The directors meet regularly to discuss the risks facing the business, the principal risks and uncertainties facing the company are broadly financial instrument and derivative risks:
Financial instruments
The company uses conventional forms of working capital to finance its day to day activities and as such the figures appearing in the accounts reflect the absolute value of amounts recoverable and payable. The directors receive regular reports on these figures in order to manage the company's requirements.
The company does not actively use financial instruments as part of its financial risk management. IT is exposed to the usual credit cash flow risk associated with selling on credit and manages this through credit control procedures.
Commodity price risks
The raw materials used to manufacture the company’s animal feeds are subject to fluctuation as they are actively traded commodities. The company continuously monitors its future raw material requirements and utilises forward contracts to mitigate against fluctuating future raw material prices.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 2 -
Employees
The company has continued to follow the requirements of Health & Safety at Work Act with concern of the welfare of its employees.
The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a handicapped or disabled person.
Policy on payments to creditors
Creditors are paid in accordance with terms of business agreed with suppliers. Given the nature of the company’s activities and agreed terms with supplies, the directors have not calculated an average creditor day figure as a whole on the basis that such a statement would not be beneficial.
Section 172 Statement
The Board of Directors consider they have acted in ways that they believe in good faith to be most likely to promote the success of the company for the benefit of its shareholders as a whole in the decisions they made during the period ended 31 August 2024.
People
We recognise our people as our most important asset and aim to be a responsible employer. The health, safety and wellbeing of our people is of the highest importance. Ensuring a safe working environment is paramount in our day-to-day operations.
Customers
Customers are at the heart of everything we do, as is evidenced by our programmes of engagement and support for UK farmers.
Suppliers
We seek to develop long term partnerships with our suppliers which are mutually beneficial and ultimately deliver our customer value and a high quality product.
As the Board of Directors, our intention is always to behave responsibly and to ensure that the business operates in a responsible manner, adhering to high standards of business conduct and good governance. We recognise that the maintenance of our good reputation, founded on responsible behaviour, is fundamental to our continuing ability to achieve profitable growth for the benefit of all our stakeholders in the future.
G M Blake
Director
27 May 2025
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 AUGUST 2024
- 3 -
The directors present their annual report and financial statements for the Period ended 31 August 2024.
Results and dividends
The results for the Period are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the Period and up to the date of signature of the financial statements were as follows:
G M Blake
D E Hewison
(Appointed 5 August 2024)
S G Hughes
R Quinn
(Resigned 29 February 2024)
P W Steeples
S B G Wilkinson
(Resigned 1 January 2024)
Auditor
The auditor, Mitchell Charlesworth (Audit) Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
The company is committed to reducing carbon emissions wherever possible and is working with The Carbon Trust to ensure that the company makes optimum use of energy at the factories. The detailed disclosure requirements of the Streamlined Energy and Carbon Reporting Requirements are covered in the report of the parent undertaking Edward Billington and Son Limited.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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;
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 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.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 4 -
Strategic report
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 is noted in the strategic report on pages 1 and 2.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
G M Blake
Director
27 May 2025
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
- 5 -
Opinion
We have audited the financial statements of Carrs Billington Agriculture (Operations) Limited (the 'company') for the Period ended 31 August 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 31 August 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial Period 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.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED (CONTINUED)
- 6 -
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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED (CONTINUED)
- 7 -
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
(i) The presentation of the Statement of Comprehensive Income, (ii) revenue recognition, (iii) stock existence and valuation and (iv) defined benefit pension assumptions and valuation. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
Audit response to risks identified
Our procedures to respond to risks identified included the following:
reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;
enquiring of management and directors concerning actual and potential litigation and claims;
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
reading minutes of board meetings and reviewing correspondence with relevant authorities where matters identified were significant;
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 indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED (CONTINUED)
- 8 -
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Philip Griffiths
Senior Statutory Auditor
For and on behalf of Mitchell Charlesworth (Audit) Limited
27 May 2025
Accountants
Statutory Auditor
Suites C, D, E & F
14th Floor, The Plaza
100 Old Hall Street
Liverpool
England
L3 9QJ
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 AUGUST 2024
- 9 -
Period
Period
ended
ended
31 August
2 September
2024
2023
Notes
£
£
Turnover
3
165,526,974
186,723,842
Cost of sales
(148,990,856)
(168,605,129)
Gross profit
16,536,118
18,118,713
Distribution costs
(9,036,329)
(9,710,403)
Administrative expenses
(2,862,660)
(2,963,957)
Exceptional item
4
(42,124)
Operating profit
5
4,595,005
5,444,353
Interest receivable and similar income
9
233,000
224,000
Interest payable and similar expenses
10
(4,847)
(56,558)
Profit before taxation
4,823,158
5,611,795
Tax on profit
11
(1,433,000)
(1,208,000)
Profit for the financial Period
3,390,158
4,403,795
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 AUGUST 2024
- 10 -
Period
Period
ended
ended
31 August
2 September
2024
2023
£
£
Profit for the Period
3,390,158
4,403,795
Other comprehensive income
Actuarial loss on defined benefit pension schemes
(1,088,000)
(914,000)
Tax relating to other comprehensive income
272,000
229,000
Total other comprehensive income for the Period
(816,000)
(685,000)
Total comprehensive income for the Period
2,574,158
3,718,795
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
BALANCE SHEET
AS AT
31 AUGUST 2024
31 August 2024
- 11 -
31 August 2024
2 September 2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
61,713
Other intangible assets
12
1,781,254
2,267,126
Total intangible assets
1,781,254
2,328,839
Tangible assets
13
8,110,906
8,870,770
Investments
14
70,000
70,000
9,962,160
11,269,609
Current assets
Stocks
15
3,203,328
3,071,750
Debtors
16
34,382,147
29,090,629
Cash at bank and in hand
14,763
10,199
37,600,238
32,172,578
Creditors: amounts falling due within one year
17
(10,262,540)
(9,148,625)
Net current assets
27,337,698
23,023,953
Total assets less current liabilities
37,299,858
34,293,562
Creditors: amounts falling due after more than one year
18
(1,083,248)
(1,268,110)
Provisions for liabilities
Deferred tax liability
20
1,873,000
2,156,000
(1,873,000)
(2,156,000)
Net assets excluding pension surplus
34,343,610
30,869,452
Defined benefit pension surplus
21
3,369,581
4,269,581
Net assets
37,713,191
35,139,033
Capital and reserves
Called up share capital
22
500,000
500,000
Profit and loss reserves
37,213,191
34,639,033
Total equity
37,713,191
35,139,033
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 AUGUST 2024
31 August 2024
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 27 May 2025 and are signed on its behalf by:
S G Hughes
Director
Company registration number 3574122 (England and Wales)
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 AUGUST 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 4 September 2022
500,000
30,920,238
31,420,238
Period ended 2 September 2023:
Profit
-
4,403,795
4,403,795
Other comprehensive income:
Actuarial gains on defined benefit plans
-
(914,000)
(914,000)
Tax relating to other comprehensive income
-
229,000
229,000
Total comprehensive income
-
3,718,795
3,718,795
Balance at 2 September 2023
500,000
34,639,033
35,139,033
Period ended 31 August 2024:
Profit
-
3,390,158
3,390,158
Other comprehensive income:
Actuarial gains on defined benefit plans
-
(1,088,000)
(1,088,000)
Tax relating to other comprehensive income
-
272,000
272,000
Total comprehensive income
-
2,574,158
2,574,158
Balance at 31 August 2024
500,000
37,213,191
37,713,191
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 AUGUST 2024
- 14 -
1
Accounting policies
Company information
Carrs Billington Agriculture (Operations) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cunard Building, Water Street, Liverpool, Merseyside, L3 1EL.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Edward Billington and Son Limited. These consolidated financial statements are available from its registered office at Cunard Building, Liverpool, Merseyside, L3 1EL.
1.2
Going concern
Atruet the time of approving the financial statements, the directors are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade and settlement discounts.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of businesses acquired over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
Up to 10 years straight line (10%)
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Freehold and long leasehold buildings
50 years straight line (2%)
Plant and machinery
Up to 20 years straight liine (5%)
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 16 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 18 -
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the Balance Sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less tax.
Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax is measured on an undiscounted basis at the rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the Balance Sheet date.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Contributions in respect of defined contribution pension schemes are charged to the Profit and Loss Account when they become payable.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 19 -
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The defined benefit pension asset is determined on an actuarial basis using a variety of assumptions. Any changes in these assumptions, which are disclosed in note 22, will impact on the carrying amount of the pension asset. The directors have considered the advice of the actuary in determining the basis of these assumptions.
Useful economic lives of tangible fixed assets
The company depreciates tangible fixed assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. Judgement is applied by the directors when determining the residual values for plant, machinery and equipment. When determining the residual value management assesses the amount that the company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.
Useful economic lives of intangible fixed assets
The company amortises intangible fixed assets over their estimated useful lives. The estimation of useful lives is based on historic performance as well as expectations about future performance and therefore requires assumptions to be made by management. The actual lives of these assets can depend on a variety of factors including technological innovation and continuing maintenance and development.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 20 -
3
Turnover and other revenue
An analysis of the company's turnover (all within the United Kingdom) is as follows:
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
165,526,974
186,723,842
2024
2023
£
£
Other revenue
Interest income
233,000
224,000
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional item - Reorganisation
42,124
-
The charge relates to the costs of equalising Guaranteed Minimum Pension payments as detailed in note 2.
5
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
1,855,004
2,011,413
Depreciation of tangible fixed assets held under finance leases
346,434
298,795
Profit on disposal of tangible fixed assets
(42,073)
(12,596)
Amortisation of intangible assets
388,424
299,977
Operating lease charges
65,755
5,814
Remuneration paid to the company's auditor for services other than the statutory audit of the company are not analysed in these accounts, since the consolidated accounts of the ultimate parent undertaking, Edward Billington and Son Limited are required to disclose non-audit fees on a consolidated basis.
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
19,500
18,800
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 21 -
7
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2024
2023
Number
Number
Production
164
168
Administration
20
22
Sales
4
4
Total
188
194
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
6,612,516
6,747,338
Social security costs
736,469
746,641
Pension costs
689,846
649,026
8,038,831
8,143,005
Pension costs are amounts charged to operating profit, in respect of defined contribution schemes and do not include amounts credited to other finance costs/gains (see note 9), or amounts recognised in the Statement of Other Comprehensive Income in respect of the defined benefit pension scheme.
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
286,696
285,260
Company pension contributions to defined contribution schemes
13,026
33,000
299,722
318,260
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 1 (2023 - 1).
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
8
Directors' remuneration
(Continued)
- 22 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
214,882
186,863
The total remuneration above is in respect of two directors. All of the other directors are remunerated by the respective investing companies. Charges are raised to reflect the proportionate amount of time spent in the management of the company.
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on the net defined benefit asset
233,000
224,000
10
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
4,847
56,558
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,187,000
1,048,000
Adjustments in respect of prior periods
257,000
(64,000)
Total current tax
1,444,000
984,000
Deferred tax
Origination and reversal of timing differences
(11,000)
224,000
Total tax charge
1,433,000
1,208,000
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
11
Taxation
(Continued)
- 23 -
The actual charge for the Period can be reconciled to the expected charge for the Period based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
4,823,158
5,611,795
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.50%)
1,205,790
1,206,536
Adjustments in respect of prior years
257,000
(64,000)
Depreciation on assets not qualifying for tax allowances
18,000
25,000
Adjustment to reflect effective tax rate
(47,790)
40,464
Taxation charge for the period
1,433,000
1,208,000
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
(272,000)
(229,000)
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 24 -
12
Intangible fixed assets
Goodwill and amortisation
Software
Total
£
£
£
Cost
At 3 September 2023
1,562,794
2,764,385
4,327,179
Additions
4,250
4,250
Disposals
(163,411)
(163,411)
At 31 August 2024
1,562,794
2,605,224
4,168,018
Amortisation and impairment
At 3 September 2023
1,501,081
497,259
1,998,340
Amortisation charged for the Period
61,713
326,711
388,424
At 31 August 2024
1,562,794
823,970
2,386,764
Carrying amount
At 31 August 2024
1,781,254
1,781,254
At 2 September 2023
61,713
2,267,126
2,328,839
13
Tangible fixed assets
Freehold and long leasehold buildings
Assets under construction
Plant and machinery
Total
£
£
£
£
Cost
At 3 September 2023
21,302,630
20,878,117
42,180,747
Additions
16,504
190,328
1,334,419
1,541,251
Disposals
(1,552,174)
(1,552,174)
At 31 August 2024
21,319,134
190,328
20,660,362
42,169,824
Depreciation and impairment
At 3 September 2023
19,334,982
13,974,995
33,309,977
Depreciation charged in the Period
706,655
1,494,783
2,201,438
Eliminated in respect of disposals
(1,452,497)
(1,452,497)
At 31 August 2024
20,041,637
14,017,281
34,058,918
Carrying amount
At 31 August 2024
1,277,497
190,328
6,643,081
8,110,906
At 2 September 2023
1,967,648
6,903,122
8,870,770
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
13
Tangible fixed assets
(Continued)
- 25 -
Land and buildings is analysed as follows:
2024
2023
£
£
Freehold
1,160,396
1,850,547
Long leasehold
117,101
117,101
1,277,497
1,967,648
Land and buildings includes, where applicable, fixed plant which forms an integral part of the building structure.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases.
2024
2023
£
£
Motor vehicles
1,819,556
1,567,842
14
Fixed asset investments
2024
2023
£
£
Investment in subsidiary undertaking - Carrs Billington Agriculture (Properties) Limited
70,000
70,000
Carrs Billington Agriculture (Properties) Limited which is registered in England and Wales is dormant. It has aggregate capital and reserves of £70,000 (2023 £70,000).
In addition the company holds 100% of the shares of four dormant companies, three of which are registered in England and Wales and one in Scotland. The aggregate capital and reserves of these companies is £Nil (2023 £Nil).
15
Stocks
2024
2023
£
£
Raw materials and consumables
1,866,090
2,048,475
Finished goods and goods for resale
1,337,238
1,023,275
3,203,328
3,071,750
Amounts recognised in cost of sales during the period for stock losses and gains were £167,903 (2023 credit £10,994).
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 26 -
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
46,885
212,173
Amounts due from fellow subsidiary undertakings
33,061,670
26,732,559
Other debtors
544,811
1,485,574
Prepayments and accrued income
728,781
660,323
34,382,147
29,090,629
Trade debtors are stated after a provision for impairment of £11,685 (2023: £11,395). The movement in the provision of £290 is recognised as a charge within administrative expenses in the profit and loss account.
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
19
709,683
791,550
Trade creditors
2,245,963
2,031,427
Amount due to parent undertaking
35,513
15,793
Amounts due to fellow subsidiary undertakings
4,048,196
4,380,159
Corporation tax
2,536,761
1,471,761
Other creditors
231,266
106,459
Accruals and deferred income
455,158
351,476
10,262,540
9,148,625
The company has given a debenture incorporating a fixed and floating charge over all the assets of the undertaking together with a cross guarantee with Carrs Billington Agriculture (Sales) Limited and Carrs Billington Agriculture (Properties) Limited as security for the collective bank facilities of these companies, including offset interest arrangements between these companies.
The obligations under finance leases are secured against the related assets.
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
19
1,083,248
1,268,110
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 27 -
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
709,683
791,550
In two to five years
1,083,248
1,268,110
1,792,931
2,059,660
20
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,023,000
1,080,000
Retirement benefit obligations
843,000
1,067,000
Capital gains
7,000
9,000
1,873,000
2,156,000
2024
Movements in the Period:
£
Liability at 3 September 2023
2,156,000
Credit to profit or loss
(11,000)
Credit to other comprehensive income
(272,000)
Liability at 31 August 2024
1,873,000
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 28 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
689,846
649,026
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Defined benefit schemes
Carrs Billington Agriculture (Operations) Limited is the principal employer of the Carrs Billington Agriculture pension scheme, a funded defined benefit scheme. The assets of the scheme are held separately from those of the company, and are invested with financial institutions. The scheme ceased to accrue further benefits for its active members with effect from 1 December 2007.
The contributions are determined by qualified actuaries on the basis of triennial valuations using the attained age method of valuation. Contributions paid into the scheme during the period amounted to £nil. In line with the schedule of contributions dated 31 October 2022 the company has agreed to make no contributions to the scheme during the period to 30 August 2025, except for administration and other scheme expenses.
The liabilities of the scheme have been calculated by reference to the results of the 31 December 2021 full actuarial valuation.
2024
2023
Key assumptions
%
%
Discount rate
4.9
5.5
Price inflation (RPI)
3.1
3.3
Price inflation (CPI)
2.7
2.8
Pension increases - RPI max 5%
2.9
3.0
Pension increases - RPI max 3%
2.3
2.3
Pension increases - RPI max 2.5%
2.0
2.0
Mortality assumptions
2024
2023
Assumed life expectations on retirement at age 65:
Years
Years
Retiring today
- Males
22.3
22.2
- Females
24.1
24.0
Retiring in 20 years
- Males
23.6
23.6
- Females
25.6
25.5
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
21
Retirement benefit schemes
(Continued)
- 29 -
2024
2023
Amounts recognised in the profit and loss account
£
£
Net interest income on net defined benefit asset
(233,000)
(224,000)
Other costs and income
45,000
32,000
Total (income)/costs
(188,000)
(192,000)
2024
2023
Amounts taken to other comprehensive income
£
£
Actual (return)/loss on scheme assets
(1,825,000)
2,173,000
Less: calculated interest element
1,469,000
1,374,000
Return on scheme assets excluding interest income
(356,000)
3,547,000
Actuarial changes related to obligations
1,444,000
(2,633,000)
Total costs
1,088,000
914,000
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
2024
2023
£
£
Present value of defined benefit obligations
24,517,000
23,249,000
Fair value of plan assets
(27,886,581)
(27,518,581)
Surplus in scheme
(3,369,581)
(4,269,581)
2024
Movements in the present value of defined benefit obligations
£
Liabilities at 3 September 2023
23,249,000
Benefits paid
(1,412,000)
Actuarial gains and losses
1,444,000
Interest cost
1,236,000
At 31 August 2024
24,517,000
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
21
Retirement benefit schemes
(Continued)
- 30 -
2024
Movements in the fair value of plan assets
£
Fair value of assets at 3 September 2023
27,518,581
Interest income
1,469,000
Gain on plan assets (excluding amounts included in net interest)
356,000
Benefits paid
(1,412,000)
Other
(45,000)
At 31 August 2024
27,886,581
The actual loss/(return) on plan assets was £1,825,000 (2023 - (£2,173,000)).
2024
2023
Fair value of plan assets at the reporting period end
£
£
Equity instruments
2,545,000
3,554,000
Debt instruments
21,824,000
19,895,000
Other
3,517,581
4,069,581
27,886,581
27,518,581
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
500,000
500,000
500,000
500,000
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
109,764
109,764
Between two and five years
180,000
270,000
289,764
379,764
CARRS BILLINGTON AGRICULTURE (OPERATIONS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 AUGUST 2024
- 31 -
24
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
2,400,000
1,500,000
25
Related party transactions
Bibby Agriculture Limited, a company in which the group has 50% interest in, entered into the following material transactions with the company during the period as follows:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Bibby Agriculture Limited
21,090,056
24,403,893
17,223
4,385
Other amounts recharged
2024
2023
£
£
Bibby Agriculture Limited
304,890
-
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Bibby Agriculture Limited
140,539
456,201
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