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Registration number: 04351698

Withgill Farm Limited

Directors' Report and Financial Statements

30 September 2024

image-name

 

Withgill Farm Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6

Profit and Loss Account and Statement of Retained Earnings

10

Balance Sheet

11

Notes to the Financial Statements

12

 

Withgill Farm Limited

Company Information

Directors

D G Barnes

A B Barnes

Company secretary

G R Surtees

Registered office

Withgill Farm
Mitton
CLITHEROE
BB7 3LW
 

Auditors

Dodd & Co Audit Limited
Chartered Accountants & Registered Auditors
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

 

Withgill Farm Limited

Strategic Report for the Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

Principal activity

The principal activity of the company is during the year was the operation of a dairy farm.

Fair review of the business

Results continued to grow and improve on the previous year due to a strong milk price. That, coupled with efficient cost controls in place despite nationwide cost increases ensured the additional income generated was reflected right through to profit before tax.

The company's key financial and other performance indicators during the year were as follows:

 

Unit

2024

2023

Turnover

£

16,811,602

13,954,032

Gross profit margin

%

26

45

Profit before tax

£

3,159,922

4,986,151

Net assets

£

11,107,735

8,751,495

Principal risks and uncertainties

The principal commercial risks to the business are the major components of production costs, price per litre of milk sold, legislative changes such as changes in subsidies received and customer requirements. The directors continually assess the position of the business, its operations and the impact of any potential or actual changes in environment. The business is considered to have sufficient working capital to react and adapt to any changes.

Approved by the Board on 26 June 2025 and signed on its behalf by:

.........................................
D G Barnes
Director

 

Withgill Farm Limited

Directors' Report for the Year Ended 30 September 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors of the company

The directors who held office during the year were as follows:

D G Barnes

A B Barnes

G Barnes (resigned 30 June 2024)

F Barnes (resigned 30 June 2024)

G P Barnes (resigned 30 June 2024 and appointed 1 September 2024)

Dividends

The directors recommend a final dividend payment of £5,500,000 be made in respect of the financial year ended 30 September 2024. This dividend has not been recognised as a liability in the financial statements.

Financial instruments

Objectives and policies

The company's directors continually monitor and manage the finances of the company with a view to meeting future financial obligations as and when they become due as well as funding future developments projects. In addition, they aim to manage the company's liquid resources in such a way as to ensure that funds are available to cover any unexpected items of expenditure which may arise. The company has insignificant currency exposure as the majority of executed transactions are carried out in sterling. The company does not use derivative financial instruments for any purpose.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, trade debtors and creditors and certain other debtors and creditors. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining large cash balances. All of the business' cash balances are held in such a way that achieves a competitive rate of interest where possible.

The majority of revenue and trade debtors are derived from milk sales and auction sales which, as is common with such transactions, receive the funds from such transactions relatively quickly after the point of sale. There are no sales transacted in foreign currency and very few on credit terms.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due within the set credit terms offered.

Future developments

The directors do not expect there to be any significant change to the way the company operates in the near future.

 

Withgill Farm Limited

Directors' Report for the Year Ended 30 September 2024 (continued)

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing the annual financial statements.

Further details regarding the adoption of the going concern basis can be found in the accounting policies in note 1 to the financial statements.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 26 June 2025 and signed on its behalf by:
 

.........................................
D G Barnes
Director

 

Withgill Farm Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Withgill Farm Limited

Independent Auditor's Report to the Members of Withgill Farm Limited

Opinion

We have audited the financial statements of Withgill Farm Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its profit for the 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Withgill Farm Limited

Independent Auditor's Report to the Members of Withgill Farm Limited (continued)

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

Withgill Farm Limited

Independent Auditor's Report to the Members of Withgill Farm Limited (continued)

Auditor 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.

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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

the nature of the industry and sector, control environment and business performance including the design of the company’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;

results of our enquiries of management about their own identification and assessment of the risks of irregularities;

any matters we identified having obtained and reviewed the company’s documentation of their policies and procedures relating to:

-

identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

the matters discussed among the audit engagement team and involving relevant internal specialists, including tax and pensions regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud to be in relation to management override which, in common with all audits under ISAs (UK), we are required to perform specific procedures to respond to this risk.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions legislation and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. The key laws and regulations we considered in this context related to the Health and Safety Act and Employment Law.

As a result of performing the above, in response to the risks identified, we did not identify any key audit matters related to the potential risk of fraud or non-compliance with laws and regulations.

In addition to the above, our procedures to respond to risks identified included the following:

 

Withgill Farm Limited

Independent Auditor's Report to the Members of Withgill Farm Limited (continued)

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

enquiring of management concerning actual and potential litigation and claims;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

reading minutes of meetings of those charged with governance, reviewing correspondence with HMRC; and

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an 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.

......................................
Steven Barnes FCA (Senior Statutory Auditor)
For and on behalf of Dodd & Co Audit Limited, Statutory Auditor

FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

26 June 2025

 

Withgill Farm Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 September 2024

Note

2024
£

2023
£

Turnover

3

16,811,602

13,954,032

Cost of sales

 

(12,370,302)

(7,636,786)

Gross profit

 

4,441,300

6,317,246

Administrative expenses

 

(1,588,429)

(1,540,831)

Other operating income

4

303,463

155,121

Operating profit

5

3,156,334

4,931,536

Other interest receivable and similar income

6

3,656

55,242

Interest payable and similar charges

7

(68)

(627)

Profit before tax

 

3,159,922

4,986,151

Taxation

11

(803,682)

(1,106,511)

Profit for the financial year

 

2,356,240

3,879,640

Retained earnings brought forward

 

8,741,365

4,861,725

Retained earnings carried forward

 

11,097,605

8,741,365

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

There was no other comprehensive income for 2024 (2023 - £nil).

 

Withgill Farm Limited

(Registration number: 04351698)
Balance Sheet as at 30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

13

1,023,854

1,154,120

Investments

14

2,651,913

2,651,913

 

3,675,767

3,806,033

Current assets

 

Stocks

15

195,249

3,749,517

Debtors

16

11,212,451

5,459,937

Cash at bank and in hand

 

632,930

643,027

 

12,040,630

9,852,481

Creditors: Amounts falling due within one year

18

(4,488,570)

(4,768,496)

Net current assets

 

7,552,060

5,083,985

Total assets less current liabilities

 

11,227,827

8,890,018

Creditors: Amounts falling due after more than one year

18

(11,758)

(13,607)

Provisions for liabilities

19

(108,334)

(124,916)

Net assets

 

11,107,735

8,751,495

Capital and reserves

 

Called up share capital

21

10,130

10,130

Profit and loss account

22

11,097,605

8,741,365

Total equity

 

11,107,735

8,751,495

Approved and authorised by the Board on 26 June 2025 and signed on its behalf by:
 

.........................................

D G Barnes

Director

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Withgill Farm
Mitton
CLITHEROE
BB7 3LW

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

Withgill Farm Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. Withgill Farm Limited is consolidated in the financial statements of its UK registered parent, GFGB Holdings Limited, which may be obtained from Companies House. Exemptions have been taken in these separate company financial statements in relation to financial instruments, presentation of a cash flow statement and remuneration of key management personnel.

Going concern

The company’s business activities, together with the factors likely to affect its future development, performance and position are set out in the strategic report. The directors’ report further describes the financial position of the company; its cash flows, liquidity position and borrowing facilities; the
company’s objectives, policies and processes for managing its capital; its financial risk management objectives; details of its financial instruments and hedging activities; and its exposure to credit risk and liquidity risk.

The company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the company has adequate resources to continue in operational existence for the foreseeable future. Therefore the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Government grants

Government grants such as the basic payment scheme are included in the profit and loss account when all the necessary conditions for receipt have been met.


Other grants
Other grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets on a basis consistent with the depreciation policy.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Buildings

10% reducing balance basis

Plant and equipment

20% and 25% reducing balance basis

Motor vehicles

25% reducing balance basis

Furniture, fittings and office equipment

33% straight line basis

Investments

Fixed asset investments, including investments in joint ventures, are stated at historical cost less provision for any diminution in value.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for the sale of goods or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Biological assets are recognised only when three recognition criteria have been fulfilled:
1. the entity has control over the asset as a result of past events;
2. it is probable that future economic benefits associated with the asset will flow to the entity; and
3. the fair value of cost or the asset can be measured reliably.

Biological assets including livestock is valued at fair value less any anticipated costs to sell. Fair value has been determined by the directors based on market prices, factoring in the aged profile of the flying herd. Changes in fair value less costs to sell are recognises in profit or loss. Crop stock is valued at cost less any impairment.

Other consumables stocks are valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method where due after more than one year.

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Preference shares are classified as debt when the shares are redeemable in the future at the option of the holder.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

3

Turnover

The analysis of the company's revenue (including turnover) by category is as follows:

2024
 £

2023
 £

Sale of goods

16,811,602

13,954,032

Turnover

16,811,602

13,954,032

Grazing income

15,042

17,704

Basic payment scheme

47,480

59,674

Environmental subsidies

79,970

9,885

Government grants

2,199

2,630

Other income

158,772

65,228

Interest income on bank deposits

240

33,074

Other interest receivable

3,416

22,168

 

17,118,721

14,164,395

4

Exceptional items

Included in turnover and cost of sales in the profit and loss account in the current financial year are transactions relating to the sale of the dairy herd as part of a share farming agreement. Total turnover in respect of the sale of the dairy herd was £4,142,095, based on a third party professional market valuation undertaken.

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

197,818

132,833

Foreign exchange losses

49

55

6

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

240

33,074

Other finance income

3,416

22,168

3,656

55,242

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

7

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

42

601

Interest on preference shares

26

26

68

627

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

749,471

681,052

Social security costs

69,199

59,121

Pension costs, defined contribution scheme

267,285

299,691

1,085,955

1,039,864

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

22

21

Administration and support

5

5

27

26

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

48,990

60,977

Contributions paid to money purchase schemes

260,000

292,000

308,990

352,977

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

5

5

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

In respect of the highest paid director:

2024
£

2023
£

Remuneration

9,096

33,689

Company contributions to money purchase pension schemes

100,000

60,000

10

Auditor's remuneration

2024
£

2023
£

Audit of the financial statements

18,000

21,250


 

11

Taxation

Tax charged/(credited) in the income statement

2024
£

2023
£

Current taxation

UK corporation tax

820,264

1,051,680

Deferred taxation

Arising from origination and reversal of timing differences

(16,582)

54,831

Tax expense in the income statement

803,682

1,106,511

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 22%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

3,159,922

4,986,151

Corporation tax at standard rate

789,981

1,096,953

Tax increase from effect of capital allowances and depreciation

8,583

3,715

Tax increase from other short-term timing differences

6

393

Effect of expense not deductible in determining taxable profit (tax loss)

-

256

Deferred tax expense relating to changes in tax rates or laws

-

5,194

Tax increase from other tax effects

5,112

-

Total tax charge

803,682

1,106,511

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated tax depreciation

-

108,334

-

108,334

2023

Asset
£

Liability
£

Accelerated tax depreciation

-

124,916

-

124,916

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £26,414 (2023 - £20,690).

12

Intangible assets

Basic payment scheme
 £

Total
£

Cost or valuation

At 1 October 2023

48,637

48,637

At 30 September 2024

48,637

48,637

Amortisation

At 1 October 2023

48,637

48,637

At 30 September 2024

48,637

48,637

Carrying amount

At 30 September 2024

-

-

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

13

Tangible assets

Land and buildings
£

Plant and equipment
 £

Motor vehicles
 £

Furniture, fittings and office equipment
 £

Total
£

Cost or valuation

At 1 October 2023

2,309,888

1,516,743

49,309

9,364

3,885,304

Additions

-

35,331

31,500

721

67,552

At 30 September 2024

2,309,888

1,552,074

80,809

10,085

3,952,856

Depreciation

At 1 October 2023

1,662,455

1,033,130

27,073

8,526

2,731,184

Charge for the year

64,744

124,008

8,185

881

197,818

At 30 September 2024

1,727,199

1,157,138

35,258

9,407

2,929,002

Carrying amount

At 30 September 2024

582,689

394,936

45,551

678

1,023,854

At 30 September 2023

647,433

483,613

22,236

838

1,154,120

Included within the net book value of land and buildings above is £582,689 (2023 - £647,433) in respect of short leasehold land and buildings.
 

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

14

Investments in subsidiaries, joint ventures and associates

2024
£

2023
£

Investments in joint ventures

2,651,913

2,651,913

Joint ventures

£

Cost

At 1 October 2023

2,651,913

At 30 September 2024

2,651,913

Provision

Carrying amount

At 30 September 2024

2,651,913

At 30 September 2023

2,651,913

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of shares held

     

2024

2023

Joint ventures

Pelpusztai Mezogazdasagi Korlatolt Felelossegu Tarsasag

8139 Szabadhídvég Pélpuszta puszta 10, Hungary

Ordinary

49.97%

49.97%

 

     

AGRO-PROFIT Novenytermeszto es Kereskedelmi Kolatolt Felelossegu Tarsasag

8139 Szabadhídvég Pélpuszta puszta 10, Hungary

Ordinary

12.5%

12.5%

 

     

Voting rights

Shares held in AGRO-PROFIT Novenytermeszto es Kereskedelmi Kolatolt Felelossegu Tarsasag represent 50% of the voting rights in the company.

Shares held in Pelpusztai Mezogazdasagi Korlatolt Felelossegu Tarsasag represent 50% of the voting rights in the company.

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

Joint ventures

Pelpusztai Mezogazdasagi Korlatolt Felelossegu Tarsasag

The principal activity of Pelpusztai Mezogazdasagi Korlatolt Felelossegu Tarsasag is dairy farming.

AGRO-PROFIT Novenytermeszto es Kereskedelmi Kolatolt Felelossegu Tarsasag

The principal activity of AGRO-PROFIT Novenytermeszto es Kereskedelmi Kolatolt Felelossegu Tarsasag is arable farming.

15

Stocks

2024
£

2023
£

Livestock

-

3,551,268

Crop

120,000

120,000

Consumables

75,249

78,249

195,249

3,749,517


Reconciliation of stock movements - biological assets (livestock):

£

At 1 October 2023

3,551,268

Purchase of livestock

1,146,926

Birth of livestock

-

Sales of livestock

(4,805,337)

Death of livestock

-

Valuation changes

107,143

At 30 September 2024

-

16

Debtors

Current

2024
£

2023
£

Trade debtors

5,236,270

979,632

Amounts owed by parent undertaking

5,611,881

4,254,381

Other debtors

250,089

199,756

Prepayments

33,282

26,168

Accrued income

80,929

-

 

11,212,451

5,459,937

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

17

Cash and cash equivalents

2024
£

2023
£

Cash at bank

632,930

643,027

18

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

23

2,694,495

2,689,495

Trade creditors

 

1,006,578

863,727

Other payables

 

61,528

59,219

Accrued expenses

 

317,045

536,545

Corporation tax liability

11

407,075

617,311

Deferred income

 

1,849

2,199

 

4,488,570

4,768,496

Due after one year

 

Deferred income

 

11,758

13,607

Included in other payables are arrears of fixed cumulative dividends of £77 (2022 - £51), arising following the issue of redeemable preference shares in 2015.

19

Provisions for liabilities

Deferred tax
£

Total
£

At 1 October 2023

124,916

124,916

Increase (decrease) in existing provisions

(16,582)

(16,582)

At 30 September 2024

108,334

108,334

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £267,285 (2023 - £299,691).

Contributions totalling £Nil (2023 - £Nil) were payable to the scheme at the end of the year and are included in creditors.

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

21

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary A shares of £1 each

10,100

10,100

10,100

10,100

Ordinary B shares of £1 each

10

10

10

10

Ordinary C shares of £1 each

10

10

10

10

Ordinary D shares of £1 each

10

10

10

10

Redeemable preference shares of £1 each

2,569,495

2,569,495

2,569,495

2,569,495

2,579,625

2,579,625

2,579,625

2,579,625

Redeemable preference shares

 

Redeemable preference shares are redeemable at the option of both the company and the shareholder. They are redeemable at £1 per share and have rights to capital on a winding up. The Redeemable Preference shares have the rights to a fixed annual cumulative dividend of 0.001% on the nominal value of each share. If the cumulative dividend is 6 months in arrears, the holders are entitled to attend and vote at the company AGM. The holders are entitled to redeem the whole or part of the Redeemable Preference shares after 6 months of the issue date. Redeemable Preference shares are classified as a liability.

Rights, preferences and restrictions
 

All Ordinary alphabet shares have the following rights, preferences and restrictions:
Voting rights, rights to dividend to the extent declared in the class, rights to capital and are non-redeemable.

22

Reserves

Called up share capital

Represents the nominal value of shares which have been issued

Profit and loss account

Includes all prior and current period accumulated retained profits and losses

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

23

Loans and borrowings

2024
£

2023
£

Current loans and borrowings

Redeemable preference shares

2,569,495

2,569,495

Other borrowings

125,000

120,000

2,694,495

2,689,495

24

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

91,200

91,200

91,200

91,200

This commitment relates to a farm business tenancy which is currently on a rolling one-year term between the company and its directors.

The amount of non-cancellable operating lease payments recognised as an expense during the year was £91,200 (2023 - £91,200).

25

Dividends

The directors are recommending a final dividend of £544.5545 (2023 - £Nil) per Ordinary A share totalling £5,500,000.00 (2023 - £Nil). This dividend has not been accrued in the balance sheet.

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

26

Related party transactions

Key management personnel

The directors

Key management compensation

2024
£

2023
£

Salaries and other short term employee benefits

48,990

60,977

Post-employment benefits

260,000

292,000

308,990

352,977

Transactions with directors

2024

At 1 October 2023
£

Advances to director
£

Repayments by director
£

Interest
£

At 30 September 2024
£

D G Barnes

Loan

97,357

196,003

(122,250)

3,076

174,186

           

2023

At 1 October 2022
£

Advances to director
£

Repayments by director
£

Interest
£

At 30 September 2023
£

D G Barnes

Loan

1,570,363

195,486

(1,690,623)

22,131

97,357

           
       

 

Directors' advances are repayable on demand.

Interest has been charged at a rate of 2.25% (2% to March 2023 and 2.25% from April 2023) on advances to directors.

Summary of transactions with joint ventures

Jointly controlled company with shares held by Withgill Farm Limited.

 Provision of consultancy services from jointly controlled company.
 

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

Summary of transactions with other related parties

A farming partnership in which two of the directors are partners. The company is party to a Farming Business Tenancy with the partnership.

A farming partnership in which close family members of the director are partners. Sale of the dairy herd to the farming partnership during the year and subsequent commencement of share farming agreement in which the farming partnership receives a percentage of gross milk sales output.

A company under significant influence from two directors. The provision of finance facilities from the company.

Income and receivables from related parties

2024

Other related parties
£

Sale of property or other assets

4,142,095

Amounts receivable from related party

115,721

Expenditure with and payables to related parties

2024

Joint ventures
£

Other related parties
£

Rendering of services

547,460

521,229

Leases

-

91,200

547,460

612,429

Amounts payable to related party

215,631

-

2023

Joint ventures
£

Other related parties
£

Rendering of services

440,198

-

Leases

-

91,200

440,198

91,200

Amounts payable to related party

440,198

-

 

Withgill Farm Limited

Notes to the Financial Statements for the Year Ended 30 September 2024 (continued)

Loans from related parties

2024

Other related parties
£

Total
£

At start of period

120,000

120,000

Advanced

5,000

5,000

At end of period

125,000

125,000

2023

Other related parties
£

Total
£

At start of period

120,000

120,000

At end of period

120,000

120,000

Terms of loans from related parties

Loan repayable on demand with no interest charged on balances.
 

27

Parent and ultimate parent undertaking

The company's immediate parent is GFGB Holdings Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is GFGB Holdings Limited. These financial statements are available upon request from Companies House

 The ultimate controlling party is David George Barnes.

The parent of the largest group in which these financial statements are consolidated is GFGB Holdings Limited, incorporated in England and Wales.

The address of GFGB Holdings Limited is:
Withgill Farm, Mitton, Clitheroe, Lancashire, England, BB7 3LW