Company registration number 12402681 (England and Wales)
HARROWDEN TURF (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
HARROWDEN TURF (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
C S F Ridd-Jones
S B Ridd-Jones
Company number
12402681
Registered office
Colpmans Farm
Islip
Kettering
Northamptonshire
NN14 3LT
Auditor
Moore
Rutland House
Minerva Business Park
Lynch Wood
Peterborough
PE2 6PZ
HARROWDEN TURF (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group statement of comprehensive income
7
Group balance sheet
8
Company balance sheet
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Notes to the financial statements
13 - 33
HARROWDEN TURF (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
Turnover in the period under review was £15,818,731 (2023 - £18,332,254). Trading margins were 41% which was in line with directors' expectations given the difficult trading conditions experienced during the year. The group continues to expand its product range and the directors believe the group is well placed for future growth despite the backdrop of the short term challenges facing the housing market and the wider UK economy.
Principal risks and uncertainties
The group is reliant on continued demand for landscape products, which has tended to be linked to the state of the housing market and wider UK economy.
The group is susceptible to changes in market conditions during the lead times involved in the growing process although the directors believe that the forecasting and production methods used by the group adequately manage this risk.
The group is vulnerable to the impact of UK weather on its operations. The risks are managed through continued investment in world class production systems, and both the geographic spread and diverse nature of its operations.
Price risk
The group is exposed to commodity price risk as a result of its operations. The directors continually review the market position and will enter into forward contracts where appropriate.
Credit risk
The group has implemented appropriate policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Liquidity risk
The group maintains a mix of long-term and short-term funding arrangements that is designed to ensure that the group has sufficient funds available for operations and planned investments.
Interest rate risk
The group is subject to variable rate interest on loan and overdraft facilities.
S B Ridd-Jones
Director
28 May 2025
HARROWDEN TURF (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company is that of a holding company.
The principal activities of the group are the growing and sale of turf and other related landscaping products.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £411,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
C S F Ridd-Jones
S B Ridd-Jones
Auditor
The auditor, Moore, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 group and company, and of the profit or loss of the group 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 group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 auditor of the company 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 auditor of the company is aware of that information.
HARROWDEN TURF (HOLDINGS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
S B Ridd-Jones
Director
28 May 2025
HARROWDEN TURF (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARROWDEN TURF (HOLDINGS) LIMITED
- 4 -
Opinion
We have audited the financial statements of Harrowden Turf (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group's and the parent company's affairs as at 31 December 2024 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 group and parent 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 group's and parent 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 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.
HARROWDEN TURF (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARROWDEN TURF (HOLDINGS) LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 parent 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 parent 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.
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
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the group and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.
We obtained an understanding of how the group complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
HARROWDEN TURF (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARROWDEN TURF (HOLDINGS) LIMITED
- 6 -
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
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.
Robert Pluck
For and on behalf of
2 June 2025
Moore
Chartered Accountants
Statutory Auditor
Rutland House
Minerva Business Park
Lynch Wood
Peterborough
PE2 6PZ
HARROWDEN TURF (HOLDINGS) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
15,818,731
18,332,254
Cost of sales
(9,377,992)
(10,651,715)
Gross profit
6,440,739
7,680,539
Distribution costs
(4,040,608)
(4,748,964)
Administrative expenses
(2,349,648)
(2,175,865)
Other operating income
661,465
490,866
Operating profit
4
711,948
1,246,576
Interest receivable and similar income
8
108,081
10,587
Interest payable and similar expenses
9
(958,108)
(931,767)
Amounts written off investments
10
(72,261)
-
(Loss)/profit before taxation
(210,340)
325,396
Tax on (loss)/profit
11
113,172
(77,832)
(Loss)/profit for the financial year
(97,168)
247,564
(Loss)/profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
HARROWDEN TURF (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
14
28,284,746
27,915,958
Investment property
15
26,650
26,650
Investments
16
70,666
142,930
28,382,062
28,085,538
Current assets
Stocks
19
5,020,956
5,202,515
Debtors
20
2,331,249
3,618,874
Cash at bank and in hand
68,929
82,458
7,421,134
8,903,847
Creditors: amounts falling due within one year
21
(1,854,439)
(2,230,167)
Net current assets
5,566,695
6,673,680
Total assets less current liabilities
33,948,757
34,759,218
Creditors: amounts falling due after more than one year
22
(8,409,497)
(8,617,375)
Provisions for liabilities
Deferred tax liability
25
3,538,600
3,633,015
(3,538,600)
(3,633,015)
Net assets
22,000,660
22,508,828
Capital and reserves
Called up share capital
27
37,500
37,500
Share premium account
20,362,501
20,362,501
Profit and loss reserves
1,600,659
2,108,827
Total equity
22,000,660
22,508,828
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 28 May 2025 and are signed on its behalf by:
28 May 2025
S B Ridd-Jones
Director
Company registration number 12402681 (England and Wales)
HARROWDEN TURF (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
16
20,251,270
20,451,270
Current assets
Cash at bank and in hand
792
611
Creditors: amounts falling due within one year
21
(47,421)
(48,838)
Net current liabilities
(46,629)
(48,227)
Net assets
20,204,641
20,403,043
Capital and reserves
Called up share capital
27
37,500
37,500
Share premium account
20,362,501
20,362,501
Profit and loss reserves
(195,360)
3,042
Total equity
20,204,641
20,403,043
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £212,598 (2023 - £51,627 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 28 May 2025 and are signed on its behalf by:
28 May 2025
S B Ridd-Jones
Director
Company registration number 12402681 (England and Wales)
HARROWDEN TURF (HOLDINGS) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
37,500
20,362,501
1,911,263
22,311,264
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
247,564
247,564
Dividends
12
-
-
(50,000)
(50,000)
Balance at 31 December 2023
37,500
20,362,501
2,108,827
22,508,828
Year ended 31 December 2024:
Loss and total comprehensive income
-
-
(97,168)
(97,168)
Dividends
12
-
-
(411,000)
(411,000)
Balance at 31 December 2024
37,500
20,362,501
1,600,659
22,000,660
HARROWDEN TURF (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
37,500
20,362,501
1,416
20,401,417
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
51,626
51,626
Dividends
12
-
-
(50,000)
(50,000)
Balance at 31 December 2023
37,500
20,362,501
3,042
20,403,043
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
212,598
212,598
Dividends
12
-
-
(411,000)
(411,000)
Balance at 31 December 2024
37,500
20,362,501
(195,360)
20,204,641
HARROWDEN TURF (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
33
2,959,464
2,279,688
Interest paid
(958,108)
(931,767)
Income taxes paid
(96,627)
(38,971)
Net cash inflow from operating activities
1,904,729
1,308,950
Investing activities
Purchase of tangible fixed assets
(1,072,309)
(492,625)
Proceeds on disposal of tangible fixed assets
205,380
95,750
Loans made
154,423
-
Payments arising from loans made
(360,947)
(149,690)
Interest received
28,081
10,587
Dividends received
80,000
Net cash used in investing activities
(965,372)
(535,978)
Financing activities
Repayment of bank loans
(87,936)
(34,501)
Payment of finance leases obligations
(415,850)
(675,944)
Dividends paid to equity shareholders
(411,000)
(50,000)
Net cash used in financing activities
(914,786)
(760,445)
Net increase in cash and cash equivalents
24,571
12,527
Cash and cash equivalents at beginning of year
42,458
29,931
Cash and cash equivalents at end of year
67,029
42,458
Relating to:
Cash at bank and in hand
68,929
82,458
Bank overdrafts included in creditors payable within one year
(1,900)
(40,000)
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information
Harrowden Turf (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Colpmans Farm, Islip, Kettering, Northamptonshire, NN14 3LT.
The group consists of Harrowden Turf (Holdings) Limited and all of its subsidiaries.
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, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Harrowden Turf (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
1.5
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 discounts, settlement discounts and volume rebates.
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.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business 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 5 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
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.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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
2 years straight line
Other intangible assets
Over the period income is expected to be derived
1.8
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 recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings
5% per annum straight line (land not depreciated)
Building improvements
5% reducing balance / 15% straight line
Plant and equipment
15% reducing balance
Fixtures and fittings
15% reducing balance
Computers
50% reducing balance
Motor vehicles
15%/25% reducing balance
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 recognised in the profit and loss account.
1.9
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.10
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.11
Impairment of fixed assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.12
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
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.
1.13
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.
1.14
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
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.
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.
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
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 group 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 group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 payments 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.
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.15
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.16
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 group’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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.17
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.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
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.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.19
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 leased asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.20
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the group’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.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
15,631,881
18,120,243
Basic Payment Scheme
186,850
212,011
15,818,731
18,332,254
2024
2023
£
£
Other revenue
Interest income
28,081
10,587
Dividends received
80,000
-
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
364,114
389,714
Depreciation of tangible fixed assets held under finance leases
443,587
354,796
Loss/(profit) on disposal of tangible fixed assets
29,253
(19,015)
Operating lease charges
1,213,642
1,285,664
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,625
5,350
Audit of the financial statements of the company's subsidiaries
36,200
34,525
41,825
39,875
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Admin and support
31
31
-
-
Production
63
64
-
-
Directors
2
2
2
2
Total
96
97
2
2
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,323,957
3,173,952
Social security costs
307,191
299,210
-
-
Pension costs
139,661
141,463
3,770,809
3,614,625
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
211,977
206,531
Company pension contributions to defined contribution schemes
18,000
18,000
229,977
224,531
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
105,988
103,265
Company pension contributions to defined contribution schemes
9,000
9,000
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
20,120
Other interest income
7,961
10,587
Total interest revenue
28,081
10,587
Other income from investments
Dividends received
80,000
Total income
108,081
10,587
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
20,120
-
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
812,394
779,679
Other finance costs:
Interest on finance leases and hire purchase contracts
145,714
152,088
Total finance costs
958,108
931,767
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
10
Amounts written off investments
2024
2023
£
£
Other gains and losses
(72,261)
-
Impairment is in relation to investments in associates which have ceased trading during the period.
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(2,166)
Adjustments in respect of prior periods
(16,590)
(4,794)
Total current tax
(18,756)
(4,794)
Deferred tax
Origination and reversal of timing differences
(94,416)
82,626
Total tax (credit)/charge
(113,172)
77,832
The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
(Loss)/profit before taxation
(210,340)
325,396
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(52,585)
81,349
Tax effect of expenses that are not deductible in determining taxable profit
22,617
1,234
Adjustments in respect of prior years
(16,590)
(4,794)
Effect of change in corporation tax rate
684
(616)
Group relief
(193)
Permanent capital allowances in excess of depreciation
(2,454)
(717)
Depreciation on assets not qualifying for tax allowances
10,874
11,536
Other permanent differences
(55,718)
(9,967)
Dividend income
(20,000)
-
Taxation (credit)/charge
(113,172)
77,832
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
12
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
411,000
50,000
13
Intangible fixed assets
Group
Goodwill
Software
Other intangible assets
Total
£
£
£
£
Cost
At 1 January 2024
461,000
196,813
3,210
661,023
Disposals
(461,000)
(2,220)
(463,220)
At 31 December 2024
196,813
990
197,803
Amortisation and impairment
At 1 January 2024
461,000
196,813
3,210
661,023
Disposals
(461,000)
(2,220)
(463,220)
At 31 December 2024
196,813
990
197,803
Carrying amount
At 31 December 2024
At 31 December 2023
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
14
Tangible fixed assets
Group
Land and buildings
Building improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2024
23,448,185
160,056
9,100,539
272,545
17,384
831,152
33,829,861
Additions
216,529
658,745
23,173
512,675
1,411,122
Disposals
(280,528)
(57,556)
(338,084)
At 31 December 2024
23,664,714
160,056
9,478,756
295,718
17,384
1,286,271
34,902,899
Depreciation and impairment
At 1 January 2024
947,732
92,679
4,192,279
171,821
17,295
492,097
5,913,903
Depreciation charged in the year
76,949
3,492
563,045
18,525
45
145,645
807,701
Eliminated in respect of disposals
(59,178)
(44,273)
(103,451)
At 31 December 2024
1,024,681
96,171
4,696,146
190,346
17,340
593,469
6,618,153
Carrying amount
At 31 December 2024
22,640,033
63,885
4,782,610
105,372
44
692,802
28,284,746
At 31 December 2023
22,500,453
67,377
4,908,260
100,724
89
339,055
27,915,958
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
14
Tangible fixed assets
(Continued)
- 26 -
The carrying value of land and buildings comprises:
Group
Company
2024
2023
2024
2023
£
£
£
£
Freehold
22,640,033
22,500,453
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
3,044,135
3,023,733
Motor vehicles
494,536
91,369
3,538,671
3,115,102
-
-
Freehold land and buildings with a carrying amount of £9,742,512 (2023 - £9,757,169) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.
15
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 January 2024
26,650
-
Investment property comprises a single commercial property. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2024 by the directors.
The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. No changes to the valuation is expected for the current year.
16
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
17
20,251,270
20,451,270
Investments in associates
18
72,264
Unlisted investments
70,666
70,666
70,666
142,930
20,251,270
20,451,270
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
16
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Group
Shares in associates
Other investments
Total
£
£
£
Cost or valuation
At 1 January 2024
72,264
70,666
142,930
Disposals
(3)
-
(3)
At 31 December 2024
72,261
70,666
142,927
Impairment
At 1 January 2024
-
-
-
Impairment losses
72,261
-
72,261
At 31 December 2024
72,261
-
72,261
Carrying amount
At 31 December 2024
-
70,666
70,666
At 31 December 2023
72,264
70,666
142,930
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
20,451,270
Impairment
At 1 January 2024
-
Impairment losses
200,000
At 31 December 2024
200,000
Carrying amount
At 31 December 2024
20,251,270
At 31 December 2023
20,451,270
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
17
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Harrowden Turf Limited
Colpmans Farm, Islip, Kettering, NN14 3LT
Ordinary shares
100.00
Turfland Farms Limited
Colpmans Farm, Islip, Kettering, NN14 3LT
Ordinary shares
100.00
Shrubhill Farms Limited
Colpmans Farm, Islip, Kettering, NN14 3LT
Ordinary shares
100.00
Spearhead Turf Limited
Colpmans Farm, Islip, Kettering, NN14 3LT
Ordinary shares
100.00
18
Associates
Details of associates at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Harrowden Farms Developments Limited
Colpmans Farm, Islip, Kettering, NN14 3LT
Ordinary shares
0
50
19
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
1,032,974
1,102,960
-
-
Work in progress
3,227,609
3,639,256
-
-
Finished goods and goods for resale
760,373
460,299
5,020,956
5,202,515
-
-
20
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,444,087
2,313,728
Corporation tax recoverable
70,101
5,237
Other debtors
246,064
803,112
Prepayments and accrued income
570,997
496,797
2,331,249
3,618,874
-
-
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
21
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
23
86,536
124,636
Obligations under finance leases
24
741,302
698,397
Trade creditors
672,014
870,911
9
8
Amounts owed to group undertakings
16,242
8,029
Corporation tax payable
50,520
Other taxation and social security
236,825
356,420
400
400
Other creditors
25,000
46,819
25,000
35,000
Accruals and deferred income
92,762
82,464
5,770
5,401
1,854,439
2,230,167
47,421
48,838
22
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
23
7,506,177
7,594,113
Obligations under finance leases
24
903,320
1,023,262
8,409,497
8,617,375
-
-
Amounts included above which fall due after five years are as follows:
Payable by instalments
6,886,483
7,066,991
-
-
23
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
7,590,813
7,678,749
Bank overdrafts
1,900
40,000
7,592,713
7,718,749
-
-
Payable within one year
86,536
124,636
Payable after one year
7,506,177
7,594,113
Bank loans of £7,590,813 (2023: £7,678,750) are secured by a fixed charge over specific properties.
Bank loans are repayable by instalments over 25 years from February 2021. The first 2 years were interest only. Interest is charged at a margin of 5.45% above the Bank of England base rate.
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
24
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
741,302
698,397
In two to five years
903,320
1,023,262
1,644,622
1,721,659
-
-
Finance lease liabilities are secured on the assets concerned. Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
25
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,380,738
1,260,501
Tax losses
(752,682)
(526,052)
Other temporary differences
66,311
54,333
Gains held over
2,844,233
2,844,233
3,538,600
3,633,015
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
3,633,015
-
Credit to profit or loss
(244,696)
-
Effect of change in tax rate - profit or loss
150,281
-
Liability at 31 December 2024
3,538,600
-
The deferred tax liability set out above is not expected to change significantly within the next 12 months.
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 31 -
26
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
139,661
141,463
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
27
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
22,500
22,500
22,500
22,500
C1 Ordinary Shares of £1 each
7,500
7,500
7,500
7,500
B Ordinary Shares of £1 each
7,500
7,500
7,500
7,500
37,500
37,500
37,500
37,500
Ordinary Shares and B Ordinary Shares are fully participating in dividends and in capital on winding up and carry the right to vote.
C1 Ordinary Shares do not entitle the holders to receive notice or to attend or vote at any general meeting. Return of capital in the event of winding up is restricted to a maximum of £200 per share.
28
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
1,148,192
1,132,166
-
-
Between two and five years
643,266
772,223
-
-
1,791,458
1,904,389
-
-
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
29
Capital commitments
Amounts contracted for but not provided in the financial statements:
Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
-
93,000
-
-
30
Related party transactions
Transactions with related parties
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Entities over which the group has control, joint control or significant influence
-
11,819
Company
Entities with control, joint control or significant influence over the company
15,710
8,029
Amounts due from related parties
2024
2023
£
£
Group
Entities over which the group has control, joint control or significant influence
2,166
-
31
Controlling party
The ultimate controlling party is C S F Ridd-Jones.
32
Directors' transactions
Advances or credits have been granted by the group to its directors as follows:
Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
Directors' Loan
2.25
360,948
7,696
(239,261)
129,383
360,948
7,696
(239,261)
129,383
Advances to directors are unsecured and repayable on demand.
HARROWDEN TURF (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
33
Cash generated from group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(97,168)
247,564
Adjustments for:
Taxation (credited)/charged
(113,172)
77,832
Finance costs
958,108
931,767
Investment income
(108,081)
(10,587)
Loss/(gain) on disposal of tangible fixed assets
29,253
(19,015)
Depreciation and impairment of tangible fixed assets
807,701
744,510
Other gains and losses
72,261
-
Movements in working capital:
Decrease in stocks
181,559
959,331
Decrease/(increase) in debtors
1,559,016
(614,327)
Decrease in creditors
(330,013)
(37,387)
Cash generated from operations
2,959,464
2,279,688
34
Analysis of changes in net debt - group
1 January 2024
Cash flows
New finance leases
31 December 2024
£
£
£
£
Cash at bank and in hand
82,458
(13,529)
-
68,929
Bank overdrafts
(40,000)
38,100
-
(1,900)
42,458
24,571
-
67,029
Borrowings excluding overdrafts
(7,678,749)
87,936
-
(7,590,813)
Obligations under finance leases
(1,721,659)
415,850
(338,813)
(1,644,622)
(9,357,950)
528,357
(338,813)
(9,168,406)
35
Events after the reporting date
Subsequent to the year end an incident occurred at one of the sites operated by the group resulting in injuries to an employee of a third party. The Health and Safety Executive have been informed. The group does not believe it is at fault and will defend its position. Should any breaches of health and safety legislation be identified it could result in a fine. No adjustments have been made to the financial statements in respect of this matter.
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