Company registration number 03182160 (England and Wales)
G & M. WESTGARTH LIMITED
CONSOLIDATED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
G & M. WESTGARTH LIMITED
CONSOLIDATED
COMPANY INFORMATION
Director
Mr M A W Westgarth
Secretary
Mr M A W Westgarth
Company number
03182160
Registered office
Newsham Hall
Newsham
Richmond
North Yorkshire
DL11 7RA
Auditor
S&W Partners Audit Limited
17 Queens Lane
Newcastle Upon Tyne
NE1 1RN
Accountant
DMC North Accounting Services Limited
A1 Marquis Court
Team Valley Trading Estate
Gateshead
NE11 0RU
Business address
Newsham Hall
Newsham
Richmond
North Yorkshire
DL11 7RA
G & M. WESTGARTH LIMITED
CONSOLIDATED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
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 - 31
G & M. WESTGARTH LIMITED
CONSOLIDATED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The director presents the strategic report for the year ended 30 June 2024.
Fair review of the business
Turnover has decreased by 9.57% in the year to £27,131,362, whilst the gross profit has risen from 23.8% to 29%.
Even with improved market conditions, the Directors believe that the company has out-performed the sector averages. This has been achieved as a result of significant investments made by the business in recent years.
Principal risks and uncertainties
The following principal risks and uncertainties have been identified.
Industry risk
The keys risks across the sector remain price volatility and the cost of feed. Risks around the availability of abattoir workers appear to have eased, but the sector as a whole remains open to demand and supply-side shocks caused by the global geopolitical environment.
Development and performance
The Directors expect 2025 to deliver similar results to 2024. Market conditions remain favourable and the company has significant contracts in place that will allow it to continue its strong performance.
The company will continue to reinvest in capital projects as it looks to improve efficiency and support future growth.
Key performance indicators
The directors consider key indicators of performance to be; the number of animals going to market, the weights achieved and the price received at market as well as the profit margins attained per item and in total. Due to the increased output per head, the group directors were able to maintain a steady profit margin during the year. The total figures for the group were:
2024 2023
Turnover 27,131,362 29,708,515
Gross margin 29% 23.8%
Other information and explanations
The group continues to explore new business opportunities, including with Freedom Foods Ltd. Other areas in the existing trade have presented themselves but they are at an extremely early stage, The group is also exploring ways to diversify its income to limit the reliance on the pig trade.
Mr M A W Westgarth
Director
27 June 2025
G & M. WESTGARTH LIMITED
CONSOLIDATED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
The director presents his annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company and group continued to be that of pig farming and other related farming activities.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £137,500. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr M A W Westgarth
Auditor
The auditor, S&W Partners Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
On behalf of the board
Mr M A W Westgarth
Director
27 June 2025
G & M. WESTGARTH LIMITED
CONSOLIDATED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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. He is 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.
G & M. WESTGARTH LIMITED
CONSOLIDATED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF G & M. WESTGARTH LIMITED
- 4 -
Opinion
We have audited the financial statements of G&M Westgarth Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group profit and loss account, 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 30 June 2024 and of the group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 director's 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 director 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 director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
G & M. WESTGARTH LIMITED
CONSOLIDATED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF G & M. WESTGARTH 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 director's 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 director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the parent company or to cease operations, or has 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.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtained an understanding of the legal and regulatory framework applicable to both the company itself and industry in which it operates. We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements, through discussions with the director. The most significant were identified as the Companies Act 2006, UK GAAP (FRS102) and relevant tax legislation. We considered the extent of compliance with those laws and regulations as part of our procedures on the related financial statements. Our audit procedures included:
Making enquiries of the director as to whether they have any knowledge or suspicion of fraud;
Obtaining an understanding of the internal controls established to mitigate risks related to fraud;
Assessing the risk of management override by reviewing bank statements and journal entries made for any unusual or significant transactions;
Traced the bookings diary through to the recognition of revenue and ensuring cut-off is accurate.
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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
G & M. WESTGARTH LIMITED
CONSOLIDATED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF G & M. WESTGARTH LIMITED
- 6 -
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.
Nicola Scarr ACA (Senior Statutory Auditor)
For and on behalf of S&W Partners Audit Limited
27 June 2025
Chartered Accountants
Statutory Auditor
G & M. WESTGARTH LIMITED
CONSOLIDATED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
27,131,362
29,726,892
Cost of sales
(19,274,151)
(22,648,761)
Gross profit
7,857,211
7,078,131
Administrative expenses
(4,446,709)
(3,923,741)
Other operating income
21,296
83,999
Operating profit
4
3,431,798
3,238,389
Interest receivable and similar income
8
284,867
9,631
Interest payable and similar expenses
9
(295,323)
(161,864)
Impairment of Investment
(1,000,000)
Profit before taxation
2,421,342
3,086,156
Tax on profit
10
294,852
(241,620)
Profit for the financial year
2,716,194
2,844,536
Profit for the financial year is all attributable to the owners of the parent company.
G & M. WESTGARTH LIMITED
CONSOLIDATED
GROUP BALANCE SHEET
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
7,673,240
6,964,191
Investments
13
248,997
500,000
7,922,237
7,464,191
Current assets
Stocks
16
5,200,960
4,405,491
Debtors
17
8,684,641
7,913,837
Cash at bank and in hand
896,236
276,771
14,781,837
12,596,099
Creditors: amounts falling due within one year
18
(5,401,998)
(5,300,767)
Net current assets
9,379,839
7,295,332
Total assets less current liabilities
17,302,076
14,759,523
Creditors: amounts falling due after more than one year
19
(4,453,013)
(4,373,218)
Provisions for liabilities
Deferred tax liability
22
891,025
1,006,961
(891,025)
(1,006,961)
Net assets
11,958,038
9,379,344
Capital and reserves
Called up share capital
24
1,000
1,000
Revaluation reserve
516,037
516,037
Profit and loss reserves
11,441,001
8,862,307
Total equity
11,958,038
9,379,344
The financial statements were approved and signed by the director and authorised for issue on 27 June 2025
27 June 2025
Mr M A W Westgarth
Director
Company registration number 03182160 (England and Wales)
G & M. WESTGARTH LIMITED
CONSOLIDATED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
7,673,240
6,964,191
Investments
13
249,197
500,200
7,922,437
7,464,391
Current assets
Stocks
16
5,200,960
4,405,491
Debtors
17
8,667,746
8,032,010
Cash at bank and in hand
891,496
276,771
14,760,202
12,714,272
Creditors: amounts falling due within one year
18
(6,561,159)
(6,612,648)
Net current assets
8,199,043
6,101,624
Total assets less current liabilities
16,121,480
13,566,015
Creditors: amounts falling due after more than one year
19
(4,442,180)
(4,353,218)
Provisions for liabilities
Deferred tax liability
22
891,025
1,006,961
(891,025)
(1,006,961)
Net assets
10,788,275
8,205,836
Capital and reserves
Called up share capital
24
1,000
1,000
Revaluation reserve
516,037
516,037
Profit and loss reserves
10,271,238
7,688,799
Total equity
10,788,275
8,205,836
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 £2,719,939 (2023 - £2,970,844 profit).
The financial statements were approved and signed by the director and authorised for issue on 27 June 2025
27 June 2025
Mr M A W Westgarth
Director
Company registration number 03182160 (England and Wales)
G & M. WESTGARTH LIMITED
CONSOLIDATED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
1,000
516,037
6,105,271
6,622,308
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
2,844,536
2,844,536
Dividends
11
-
-
(87,500)
(87,500)
Balance at 30 June 2023
1,000
516,037
8,862,307
9,379,344
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
2,716,194
2,716,194
Dividends
11
-
-
(137,500)
(137,500)
Balance at 30 June 2024
1,000
516,037
11,441,001
11,958,038
G & M. WESTGARTH LIMITED
CONSOLIDATED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
1,000
516,037
4,805,455
5,322,492
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
2,970,844
2,970,844
Dividends
11
-
-
(87,500)
(87,500)
Balance at 30 June 2023
1,000
516,037
7,688,799
8,205,836
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
2,719,939
2,719,939
Dividends
11
-
-
(137,500)
(137,500)
Balance at 30 June 2024
1,000
516,037
10,271,238
10,788,275
G & M. WESTGARTH LIMITED
CONSOLIDATED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
3,164,968
1,558,995
Interest paid
(295,323)
(161,864)
Income taxes (paid)/refunded
(1,938)
1,378,119
Net cash inflow from operating activities
2,867,707
2,775,250
Investing activities
Proceeds from disposal of intangibles
(23,124)
-
Purchase of tangible fixed assets
(1,629,721)
(1,207,265)
Proceeds from disposal of tangible fixed assets
172,500
269,500
Proceeds from disposal of investments
251,003
-
Repayment of loans
(310,561)
(437,667)
Interest received
32,174
9,631
Dividends received
3,898
Other income received from investments
248,795
Net cash used in investing activities
(1,255,036)
(1,365,801)
Financing activities
Repayment of bank loans
44,158
(94,261)
Payment of finance leases obligations
101,800
16,597
Dividends paid to equity shareholders
(137,500)
(87,500)
Net cash generated from/(used in) financing activities
8,458
(165,164)
Net increase in cash and cash equivalents
1,621,129
1,244,285
Cash and cash equivalents at beginning of year
275,107
(969,178)
Impairment of Investment
(1,000,000)
Cash and cash equivalents at end of year
896,236
275,107
Relating to:
Cash at bank and in hand
896,236
276,771
Bank overdrafts included in creditors payable within one year
-
(1,664)
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information
G&M Westgarth Limited (“the company”) is a private, limited by shares, company domiciled and incorporated in England and Wales. The registered office Newsham Hall, Newsham, Richmond, North Yorkshire, DL11 7RA.
The group consists of G&M Westgarth Limited and it's subsidiary's; M W Fresh Foods Limited and Long Green Pigs Limited.
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 the revaluation of land and buildings at fair value. The principal accounting policies adopted are set out below.
The 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 for parent company information presented within the consolidated financial statements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
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.
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company G&M Westgarth 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 30 June 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.
1.4
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements. The company has the continued support of the director and fellow connected companies which is not expected to be withdrawn within 12 months from approving these 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.
Revenue from the sale of swine is recognised upon slaughter of the animals by the customer, which is when the risks and rewards transfer.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation 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:
Freehold land and buildings
5% reducing balance
Plant and equipment
10% reducing balance
Fixtures and fittings
10% reducing balance
Motor vehicles
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.
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.7
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.
1.8
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible 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.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises of animal costs (including purchase price and vet fees) and feed, seed, fertiliser. Where applicable direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition are also included.
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.
1.10
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.
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.11
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.
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.
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.12
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.
1.13
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 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.
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
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.
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.
1.15
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.
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is 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.
Closing stock is a material judgement due to the fluctuation in direct costs surrounding the year end. As the costs relating to stock held are volatile in the current economic environment it is difficult to determine a true value.
Impairment of Investment
The company has invested funds during the year. This investment has then been pooled with those of other third party investors. As these funds are pooled, there is a potential risk around the companies right to this asset. The director has concluded that the valuation of this investment should be impaired.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Livestock sales
20,993,063
23,393,451
Arable produce sales
5,449,079
5,653,557
Solar & biomass energy sales
219,348
200,296
Contracting
148,108
307,442
Subsidies
58,360
70,948
Management fees
-
20,000
Haulage
244,794
28,879
Use of trial unit
18,610
52,319
27,131,362
29,726,892
2024
2023
£
£
Turnover analysed by geographical market
UK markets
27,131,362
29,726,892
2024
2023
£
£
Other revenue
Interest income
280,969
9,631
Dividends received
3,898
-
Grants received
704
-
Insurance proceeds
-
127,850
Rent receieved
20,592
40,148
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(704)
-
Depreciation of owned tangible fixed assets
729,959
583,553
Loss on disposal of tangible fixed assets
18,213
21,034
Loss on disposal of intangible assets
23,124
-
Operating lease charges
179,449
204,063
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
14,500
18,000
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
Farm workers
28
29
27
25
Managers and administration
5
5
5
5
Total
33
34
32
30
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,244,715
1,185,694
1,244,715
1,121,668
Social security costs
118,124
97,895
118,124
97,895
Pension costs
223,968
23,002
223,968
20,912
1,586,807
1,306,591
1,586,807
1,240,475
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
7
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
8,688
8,688
Company pension contributions to defined contribution schemes
100,000
-
108,688
8,688
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
32,174
9,631
Other income from investments
Dividends received
3,898
Gains on financial instruments measured at fair value through profit or loss
248,795
Total income
284,867
9,631
2024
2023
Investment income includes the following:
£
£
Interest on financial assets measured at fair value through profit or loss
248,795
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
245,296
155,166
Interest on finance leases and hire purchase contracts
50,027
6,698
Total finance costs
295,323
161,864
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
24,464
Adjustments in respect of prior periods
(64,576)
Benefit arising from a previously unrecognised tax loss or credit
(114,340)
(749,012)
Total current tax
(178,916)
(724,548)
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
2024
2023
£
£
(Continued)
- 22 -
Deferred tax
Origination and reversal of timing differences
(115,936)
966,168
Total tax (credit)/charge
(294,852)
241,620
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,421,342
3,086,156
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.56%)
605,336
634,396
Tax effect of expenses that are not deductible in determining taxable profit
5,435
Tax effect of utilisation of tax losses not previously recognised
(459,620)
Unutilised tax losses carried forward
936
Adjustments in respect of prior years
(64,575)
Group relief
(2,013)
Depreciation on assets not qualifying for tax allowances
182,490
119,604
Research and development tax credit
(910,103)
(749,012)
Capital allowances
(257,794)
(273,095)
Profit on disposal of fixed assets
10,334
4,311
Other tax adjustments
(975)
881
Deferred tax charge
(115,936)
966,168
Impairment of Investment
250,000
-
Taxation (credit)/charge
(294,852)
241,620
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
137,500
87,500
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
12
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
4,540,117
7,642,379
823,353
727,775
13,733,624
Additions
30,810
1,348,773
250,138
1,629,721
Disposals
(283,400)
(24,000)
(307,400)
At 30 June 2024
4,570,927
8,707,752
823,353
953,913
15,055,945
Depreciation and impairment
At 1 July 2023
1,681,762
4,184,103
547,552
356,016
6,769,433
Depreciation charged in the year
144,458
426,769
27,580
131,152
729,959
Eliminated in respect of disposals
(113,249)
(3,438)
(116,687)
At 30 June 2024
1,826,220
4,497,623
575,132
483,730
7,382,705
Carrying amount
At 30 June 2024
2,744,707
4,210,129
248,221
470,183
7,673,240
At 30 June 2023
2,858,355
3,458,276
275,801
371,759
6,964,191
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
4,540,117
7,642,379
823,353
727,775
13,733,624
Additions
30,810
1,348,773
250,138
1,629,721
Disposals
(283,400)
(24,000)
(307,400)
At 30 June 2024
4,570,927
8,707,752
823,353
953,913
15,055,945
Depreciation and impairment
At 1 July 2023
1,681,762
4,184,103
547,552
356,016
6,769,433
Depreciation charged in the year
144,458
426,769
27,580
131,152
729,959
Eliminated in respect of disposals
(113,249)
(3,438)
(116,687)
At 30 June 2024
1,826,220
4,497,623
575,132
483,730
7,382,705
Carrying amount
At 30 June 2024
2,744,707
4,210,129
248,221
470,183
7,673,240
At 30 June 2023
2,858,355
3,458,276
275,801
371,759
6,964,191
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Tangible fixed assets
(Continued)
- 24 -
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
1,274,577
1,014,552
1,274,577
1,014,552
Motor vehicles
331,896
304,944
331,896
304,944
1,606,473
1,319,496
1,606,473
1,319,496
13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
200
200
Unlisted investments
248,997
500,000
248,997
500,000
248,997
500,000
249,197
500,200
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 July 2023
500,000
Additions
1,000,000
Valuation changes
248,795
Disposals
(499,798)
At 30 June 2024
1,248,997
Impairment
At 1 July 2023
-
Impairment losses
1,000,000
At 30 June 2024
1,000,000
Carrying amount
At 30 June 2024
248,997
At 30 June 2023
500,000
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
13
Fixed asset investments
(Continued)
- 25 -
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 July 2023
200
500,000
500,200
Additions
-
1,000,000
1,000,000
Valuation changes
-
248,795
248,795
Disposals
-
(499,798)
(499,798)
At 30 June 2024
200
1,248,997
1,249,197
Impairment
At 1 July 2023
-
-
-
Impairment losses
-
1,000,000
1,000,000
At 30 June 2024
-
1,000,000
1,000,000
Carrying amount
At 30 June 2024
200
248,997
249,197
At 30 June 2023
200
500,000
500,200
14
Subsidiaries
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
M W Fresh Foods Limited
England
Pig farming
Ordinary
100.00
Long Green Pigs Limited
England
Pig farming
Ordinary
100.00
Registered office address of both subsidiaries (UK unless otherwise indicated):
1
A1 Marquis Court, Team Valley Trading Estate, Gateshead, NE11 0RU
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
6,538,483
6,120,374
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
9,759,981
9,502,120
n/a
n/a
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Crops, produce and livestock
5,200,960
4,405,491
5,200,960
4,405,491
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,302,901
1,650,153
1,302,602
1,803,067
Corporation tax recoverable
661,317
557,484
661,317
557,484
Other debtors
968,457
1,434,890
968,001
1,434,177
Prepayments and accrued income
1,264,612
987,768
1,264,612
987,768
4,197,287
4,630,295
4,196,532
4,782,496
Amounts falling due after more than one year:
Related parties
4,487,354
3,283,542
4,471,214
3,249,514
Total debtors
8,684,641
7,913,837
8,667,746
8,032,010
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
279,701
281,485
269,701
269,821
Obligations under finance leases
21
334,742
269,162
334,742
269,162
Trade creditors
2,793,956
3,720,709
2,826,653
3,904,378
Amounts owed to group undertakings
1,139,464
1,154,065
Corporation tax payable
61,783
138,804
61,783
136,866
Other taxation and social security
26,912
26,023
26,912
26,023
Accruals and deferred income
1,904,904
864,584
1,901,904
852,333
5,401,998
5,300,767
6,561,159
6,612,648
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
3,772,357
3,728,079
3,761,524
3,708,079
Obligations under finance leases
21
674,321
638,101
674,321
638,101
Government grants
6,335
7,038
6,335
7,038
4,453,013
4,373,218
4,442,180
4,353,218
Bank loans and hire purchase are secured against the assets they relate to.
Debenture on the banks standard form dated 15 April 2005.
Limited Guarantee given by Mr Mark Andrew William Westgarth and Mrs Lily Dorothy Westgarth for GBP 100,000.00 dated 18 July 2007.
Unlimited Guarantee given by G. & M. Westgarth Limited and Long Green Farm Limited dated 23 July 2020.
Unlimited Guarantee given by G. & M. Westgarth Limited and Long Green Farm Limited and Long Green Pigs Limited dated 01 March 2022.
Amounts included above which fall due after five years are as follows:
Payable by instalments
5,944,838
2,908,615
2,972,419
2,908,615
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
4,052,058
4,007,900
4,031,225
3,977,900
Bank overdrafts
1,664
4,052,058
4,009,564
4,031,225
3,977,900
Payable within one year
279,701
281,485
269,701
269,821
Payable after one year
3,772,357
3,728,079
3,761,524
3,708,079
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
20
Loans and overdrafts
(Continued)
- 28 -
The bank loans and overdraft are secured by a standard bank debenture, together with a joint personal guarantees by M Westgarth and Mrs D Westgarth of £7,000,000. The company has a bank loan of £1,214,667 that is secured on an asset owned by Long Green Farm Limited. Long Green Farm Limited is owned 100% by M Westgarth.
Other fixed interest bank loans are secured on the assets to which they relate, these have varying interest rates and repayment terms.
There is an unlimited cross company guarantee between G&M Westgarth Limited, MW Fresh Foods Limited, Long Green Pigs Limited and Long Green Farms Limited. Mr Mark Westgarth has control over all of these companies.
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
334,742
269,162
334,742
269,162
In two to five years
674,321
638,101
674,321
638,101
1,009,063
907,263
1,009,063
907,263
Finance lease obligations represent rentals payable by the group for certain items of fixed assets. No restrictions are placed on the use of the assets. The average lease term is four years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
22
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
891,025
1,006,961
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
891,025
1,006,961
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
22
Deferred taxation
(Continued)
- 29 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
1,006,961
1,006,961
Credit to profit or loss
(115,936)
(115,936)
Liability at 30 June 2024
891,025
891,025
The deferred tax asset set out above relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse in due course as related assets are sold and relates to accelerated capital allowances that are expected to mature with the sale of the assets.
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
223,968
23,002
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.
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
950
950
1,000
1,000
Ordinary A shares of £1 each
50
50
-
-
25
Operating lease commitments
Amounts recognised in profit and loss as an expense during the period is respect of operating lease arrangements are rents of farm land agreed on an annual basis without fixed forward commitments.
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
26
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
8,688
8,688
At the year end the company was owed £1,524,241 (2023 - £1,524,241) by GW Westgarth and Partners, £1,481,857 by Saunders House Farm Ltd (2023 - £296,182), and £1,407,886 (2023 - £1,389,748) from Long Green Farm Limited, business's in which the director has a key management control.
The bank loans and overdraft are secured by a standard bank debenture, together with a joint personal guarantee by M Westgarth and Mrs D Westgarth of £7,000,000.
There is an unlimited cross company guarantee between G&M Westgarth Limited, MW Fresh Foods Limited, Long Green Pigs Limited and Long Green Farms Limited. Mr Mark Westgarth has control over all of these companies.
£100,000 was paid into the pension scheme of an employed related party.
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
4,487,354
3,039,905
Company
Other related parties
4,413,984
2,835,116
4,413,984
2,835,116
27
Directors' transactions
Dividends totalling £50,000 (2023 - £2,500) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Closing balance
£
£
£
£
Directors loan account
2.25
437,667
294,096
16,465
748,228
437,667
294,096
16,465
748,228
G & M. WESTGARTH LIMITED
CONSOLIDATED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
28
Controlling party
The ultimate controlling party is Mr M Westgarth who is a director and holds the majority of the issued share capital.
29
Audit exemption of subsidiary companies
Having received a parental guarantee, the following subsidiary companies of the group have taken advantage of exemption from audit under section 479A of the Companies Act 2006.
Long Green Pigs Limited UK 100% 12692222
M W Fresh Foods Limited UK 100% 04051119
30
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
2,716,194
2,844,536
Adjustments for:
Taxation (credited)/charged
(294,852)
241,620
Finance costs
295,323
161,864
Investment income
(284,867)
(9,631)
Loss on disposal of tangible fixed assets
18,213
21,034
Loss on disposal of investment
23,124
-
Impairment of Investment
1,000,000
Depreciation and impairment of tangible fixed assets
729,959
583,553
Movements in working capital:
(Increase)/decrease in stocks
(795,469)
428,583
Increase in debtors
(356,410)
(1,530,155)
Increase/(decrease) in creditors
114,456
(1,181,627)
Decrease in deferred income
(703)
(782)
Cash generated from operations
3,164,968
1,558,995
31
Analysis of changes in net debt - group
1 July 2023
Cash flows
Impairment of Investment
30 June 2024
£
£
£
£
Cash at bank and in hand
276,771
1,619,465
(1,000,000)
896,236
Bank overdrafts
(1,664)
1,664
-
275,107
1,621,129
(1,000,000)
896,236
Borrowings excluding overdrafts
(4,007,900)
(44,158)
-
(4,052,058)
Obligations under finance leases
(907,263)
(101,800)
-
(1,009,063)
(4,640,056)
1,475,171
(1,000,000)
(4,164,885)
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