Company registration number 02751833 (England and Wales)
STONEGATE AGRICULTURE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
STONEGATE AGRICULTURE LIMITED
COMPANY INFORMATION
Director
Mr A D Gott
Secretary
Mr S G Morse
Company number
02751833
Registered office
Lacock Green
Corsham Road
Lacock
Chippenham
SN15 2LZ
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
STONEGATE AGRICULTURE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
STONEGATE AGRICULTURE LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 1 -
The director presents the strategic report for the period ended 28 September 2024.
Review of the business
The principal activity of the company is poultry farming for the production of high-quality eggs and pullets.
The company has no caged or barn hens and is fully focussed on free range and organic egg production.
All of our production goes to fellow Group companies who collect, grade and package free range and organic eggs. From these Group companies our eggs are delivered daily to many of the UK’s leading supermarkets and the most exclusive restaurants, as well as first class egg products to some of the biggest names in food manufacturing.
The company experienced 3.4% sales growth with turnover of £17.0m in the 52 weeks ended 28 September 2024 (52 weeks ended 30 September 2023: £16.4m). The company’s operating profit was 52 weeks ended 28 September 2024 £1.4m (52 weeks ended 30 September 2023: £0.5m). The director considers the company to be in a good financial position with net assets of £2.1m as of 28 September 2024.
Principal risks and uncertainties
Sales from the company are primarily to other Group companies which predict, forecast, and manage the demands of customers by having the correct supply and type of egg.
Raw Material & Commodity Risk
The volatility of commodity prices, particularly wheat and soya, is a constant challenge for the company. This risk is mitigated by forward positions taken on key materials, feed tracking within its sales contracts and strong relationships with the customers and suppliers.
Health & Safety Risk
The company ensures that a thorough review of the workplace is carried out with any relevant actions taken to provide a safe working environment for all our employees.
Credit Risk
The company's principal financial assets are receivables and investments.
The company's credit risk is primarily attributable to its receivables. The majority of debtors are from other Group companies and as such the director does not believe there to be any significant risk of default.
Liquidity Risk
In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future developments, the company manages its working capital to ensure an excess of current assets over current liabilities. The majority of short-term creditors of the company are other Group companies.
Market Risk
The company recognises the risk of competition in a highly active market. Through investment in our products, facilities, and people we aim to meet or exceed the demands of our customers and the consumer. Having removed ourselves from caged egg production the business is less at risk from consumer and retail pressure against egg production.
Key performance indicators
Given the straightforward nature of the company's operations, the director is of the opinion that analysis using KPIs other than the financial results, is not necessary for an understanding of the development, performance or position of the business.
STONEGATE AGRICULTURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 2 -
Mr A D Gott
Director
26 June 2025
STONEGATE AGRICULTURE LIMITED
DIRECTOR'S REPORT
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 3 -
The director presents his annual report and financial statements for the period ended 28 September 2024.
Principal activities
The principal activity of the company is poultry farming for the production of high-quality eggs and pullets. The company has no caged hens and is fully focussed on free range and organic egg production.
Results and dividends
The results for the period are set out on page 8.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the period and up to the date of signature of the financial statements was as follows:
Mr A D Gott
Auditor
The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.
MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management objectives and policies, and future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr A D Gott
Director
26 June 2025
STONEGATE AGRICULTURE LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 4 -
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 company and of the profit or loss of the company 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 company will continue in business.
The director is 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. He is 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.
STONEGATE AGRICULTURE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STONEGATE AGRICULTURE LIMITED
- 5 -
Opinion
We have audited the financial statements of Stonegate Agriculture Limited (the 'company') for the period ended 28 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 28 September 2024 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor 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 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 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.
STONEGATE AGRICULTURE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STONEGATE AGRICULTURE LIMITED (CONTINUED)
- 6 -
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 period 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.
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 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 company or to cease operations, or has no realistic alternative but to do so.
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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations;
Enquires with management about any known or suspected instances of fraud;
Review of minutes of meetings of management;
Examination of journal entries and other adjustments to test for appropriateness and identify any instances of management override of controls;
Challenging assumptions and judgements made by management in their accounting estimates;
Review of legal and professional expenditure to identify any evidence of ongoing litigation or enquiries; and
Auditing the risk of fraud in revenue, including through the testing of income cut off at the period end and through sales transaction testing to provide comfort that revenue is completely stated in the financial statements.
STONEGATE AGRICULTURE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STONEGATE AGRICULTURE LIMITED (CONTINUED)
- 7 -
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Joe Sullivan FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
26 June 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
STONEGATE AGRICULTURE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 8 -
52 weeks
52 weeks
ended 28
ended 30
September
September
2024
2023
Notes
£
£
Turnover
3
16,968,743
16,409,992
Cost of sales
(14,283,626)
(16,045,455)
Gross profit
2,685,117
364,537
Administrative expenses
(1,341,822)
(1,230,703)
Other operating income
13,356
1,408,934
Operating profit
4
1,356,651
542,768
Interest receivable and similar income
6
626
Interest payable and similar expenses
7
(23,580)
(29,164)
Profit before taxation
1,333,071
514,230
Tax on profit
8
(332,071)
(98,719)
Profit for the financial period
1,001,000
415,511
The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
STONEGATE AGRICULTURE LIMITED
BALANCE SHEET
AS AT
28 SEPTEMBER 2024
28 September 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,212,326
2,331,769
Current assets
Stocks
12
2,894,074
2,923,981
Debtors
13
4,286,484
3,615,250
Cash at bank and in hand
56,817
76,085
7,237,375
6,615,316
Creditors: amounts falling due within one year
14
(6,785,687)
(7,103,693)
Net current assets/(liabilities)
451,688
(488,377)
Total assets less current liabilities
2,664,014
1,843,392
Creditors: amounts falling due after more than one year
15
(368,592)
(525,015)
Provisions for liabilities
Deferred tax liability
17
236,831
260,786
(236,831)
(260,786)
Net assets
2,058,591
1,057,591
Capital and reserves
Called up share capital
19
1,000
1,000
Profit and loss reserves
2,057,591
1,056,591
Total equity
2,058,591
1,057,591
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 26 June 2025
Mr A D Gott
Director
Company registration number 02751833 (England and Wales)
STONEGATE AGRICULTURE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 2 October 2022
1,000
641,080
642,080
Year ended 30 September 2023:
Profit and total comprehensive income
-
415,511
415,511
Balance at 30 September 2023
1,000
1,056,591
1,057,591
Period ended 28 September 2024:
Profit and total comprehensive income
-
1,001,000
1,001,000
Balance at 28 September 2024
1,000
2,057,591
2,058,591
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 11 -
1
Accounting policies
Company information
Stonegate Agriculture Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lacock Green, Corsham Road, Lacock, Chippenham, SN15 2LZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
The results of the company are included in the consolidated financial statements of Stonegate Food Group Limited, registered office address Lacock Green, Corsham Road, Lacock, Chippenham, Wiltshire, SN15 2LZ.
The company has taken the section 402 exemption from the requirement to prepare group accounts as under section 405 all of its subsidiary undertakings could be excluded from consolidation in Companies Act group accounts. The financial statements present information about the company as an individual entity and not about its group.
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern
Inflationary pressure in commodity crops that constitute a significant element of producers' input costs through feed have subsided from the peaks experienced in 2022/23. Inflationary pressure in employment and energy costs remain a risk, notably because of the UK Autumn Budget in the case of employment cost. The group in which the company is part of continues to invest in automation, renewable energy and feed cost procurement, and the director believes that the company is well placed to minimise any impact.true
Management continuously assess the impact of inflationary pressures on customers and the supply chain with regular contact taking place throughout the supply chain to minimise any disruption.
Where forward positions have been taken the company is protected from that cover in the short to medium term. Costs that are exposed to the current market volatility are being managed pro-actively through sympathetic engagement with our strategic suppliers and customers. The company remains confident of its ability to appropriately manage the short to medium term volatility being generated by these risks. Actions have also been taken in the past to enable the business to establish a strong financial platform, and this together with the current balance sheet strength positions the company well.
Cash flow projections have been prepared for the company to cover at least twelve months following the approval of the financial statements, which indicate that the company will generate sufficient resources to meet their obligations as they fall due.
After considering the impact of the above, 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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for livestock and egg 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 livestock and egg is recognised when the significant risks and rewards of ownership of the livestock and egg have passed to the buyer (usually on dispatch of the livestock and egg), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
2% per annum
Plant and machinery
6% to 15% per annum
Fixtures, fittings & equipment
5% per annum
Motor vehicles
25% per annum
Assets in the course of construction are not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.5
Impairment of fixed assets
At each reporting period end date, the company 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.
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises the original purchase cost and, where applicable, direct labour costs that have been incurred in bringing the stocks to their present location and condition. Livestock comprises rearing birds where the cost represents any costs of rearing to the year end date, and laying birds where the total rearing cost is reduced on a straight line basis over the expected laying period.
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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
All of the company's assets are basic financial instruments.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
All of the company's liabilities are basic financial instruments.
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax 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.
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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Impairment of trade debtors
At each balance sheet date, management undertake an assessment of the recoverability of trade debtors based upon their knowledge of the customers, ageing of the balances outstanding and previous write off history. Where necessary, an impairment is recorded as a doubtful debt.
The actual level of debt collected may differ from the estimated level of recovery.
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 17 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Attributable to the principal activity
16,968,743
16,409,992
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
16,968,743
16,409,992
2024
2023
£
£
Other revenue
Interest income
-
626
4
Operating profit
2024
2023
Operating profit for the period is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,450
13,650
Depreciation of owned tangible fixed assets
260,290
305,043
Depreciation of tangible fixed assets held under finance leases
115,263
115,263
Impairment of owned tangible fixed assets
659,391
(Profit)/loss on disposal of tangible fixed assets
-
2,125
Operating lease charges
968,529
1,009,816
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
2023
Number
Number
Production
68
67
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
5
Employees
(Continued)
- 18 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,919,876
1,736,615
Social security costs
165,456
141,411
Pension costs
28,044
26,083
2,113,376
1,904,109
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
626
7
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
23,580
29,164
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
356,026
110,478
Adjustments in respect of prior periods
(50,378)
Total current tax
356,026
60,100
Deferred tax
Origination and reversal of timing differences
(22,133)
35,178
Changes in tax rates
4,782
Adjustment in respect of prior periods
(1,822)
(1,341)
Total deferred tax
(23,955)
38,619
Total tax charge
332,071
98,719
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
8
Taxation
(Continued)
- 19 -
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,333,071
514,230
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
333,268
113,131
Tax effect of expenses that are not deductible in determining taxable profit
625
195,514
Adjustments in respect of prior years
(50,378)
Effect of change in corporation tax rate
4,782
Group relief
(162,989)
Deferred tax adjustments in respect of prior years
(1,822)
(1,341)
Taxation charge for the period
332,071
98,719
Factors affecting future tax and charges
In March 2021 the Chancellor confirmed, in the budget, an increase in the corporation tax rate from 19% to 25%. The Finance Bill 2021 had its third reading on 24 May 2021 and became substantively enacted. There were announcements to the contrary in the mini-budget of October 2022, but these announcements have since been reversed and so the new rate of 25% remains substantively enacted. Therefore, the timing differences expected to reverse on or after 1 April 2023 have been accounted for at 25% and therefore deferred tax has been provided for at 25% (2023: 25%).
9
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2024
2023
Notes
£
£
In respect of:
Property, plant and equipment
10
-
659,391
Recognised in:
Cost of sales
-
659,391
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 20 -
10
Tangible fixed assets
Leasehold land and buildings
Assets under construction
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 October 2023
1,007,550
3,824,478
295,681
226,758
5,354,467
Additions
124,993
85,622
45,495
256,110
At 28 September 2024
1,007,550
124,993
3,910,100
295,681
272,253
5,610,577
Depreciation and impairment
At 1 October 2023
846,882
1,954,031
37,053
184,732
3,022,698
Depreciation charged in the period
20,150
313,850
14,784
26,769
375,553
At 28 September 2024
867,032
2,267,881
51,837
211,501
3,398,251
Carrying amount
At 28 September 2024
140,518
124,993
1,642,219
243,844
60,752
2,212,326
At 30 September 2023
160,668
1,870,447
258,628
42,026
2,331,769
The net carrying value of tangible fixed assets includes the following in respect of assets held under hire purchase contracts:
2024
2023
£
£
Plant and machinery
826,276
941,539
11
Subsidiaries
Details of the company's subsidiaries at 28 September 2024 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Thames Valley Eggs (Production) Limited
1
Dormant
Ordinary
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Lacock Green, Corsham Road, Lacock, Chippenham, Wiltshire, SN15 2LZ
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 21 -
12
Stocks
2024
2023
£
£
Eggs, egg products and packaging
132,768
140,311
Livestock
2,159,462
2,156,927
Feed and raw materials
601,844
626,743
2,894,074
2,923,981
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,067,391
985,172
Amounts owed by group undertakings
2,459,400
2,183,534
Other debtors
142,959
131,777
Prepayments and accrued income
616,734
314,767
4,286,484
3,615,250
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
156,423
150,612
Trade creditors
914,648
763,384
Amounts owed to group undertakings
4,406,163
5,185,004
Corporation tax
356,072
110,478
Other taxation and social security
44,530
45,283
Other creditors
94,241
29,876
Accruals and deferred income
813,610
819,056
6,785,687
7,103,693
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
368,592
525,015
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 22 -
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
156,423
150,612
In two to five years
368,592
525,015
525,015
675,627
Finance lease payments represent rentals payable by the company for certain items within tangible fixed assets held under hire purchase. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 6 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The creditor is secured on the assets to which it relates.
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
247,205
262,901
Other timing differences
(10,374)
(2,115)
236,831
260,786
2024
Movements in the period:
£
Liability at 1 October 2023
260,786
Credit to profit or loss
(23,955)
Liability at 28 September 2024
236,831
As at the signing date of these financial statements, the company has not finalised its capital expenditure programme for the forthcoming year, and therefore an assessment as to the likely movement of the related timing differences cannot be made.
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 23 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
28,044
26,083
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 70p each
1,428
1,428
1,000
1,000
20
Financial commitments, guarantees and contingent liabilities
The company is party to a cross guarantee in favour of HSBC UK Bank plc. As part of the cross composite guarantee between the companies under common control, a mortgage debenture exists which provides HSBC UK Bank plc with charges over all company assets, as security against its exposure to debt. The total liability under this guarantee across these companies is limited to £1,400,000 (2023: £1,400,000).
The company is party to a cross guarantee in favour of HSBC UK Bank plc. As part of the cross composite guarantee between the group companies, an unlimited multilateral guarantee exists which provides HSBC UK Bank plc with charges over all company assets, as security against its exposure to debt. The total liability under this guarantee across these companies is £8,878,139 (2023: £6,241,320).
The company is party to a cross guarantee in favour of HSBC Equipment Finance (UK) Limited in relation to the financing arrangements for various assets in group companies. The total liability under this guarantee across these companies is £5,207,516 (2023: £5,083,029).
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
975,678
975,678
Between two and five years
3,786,697
3,815,700
In over five years
4,078,031
5,024,706
8,840,406
9,816,084
STONEGATE AGRICULTURE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 SEPTEMBER 2024
- 24 -
22
Related party transactions
Transactions with related parties
During the period the company entered into the following transactions with related parties:
Purchases
Purchases
2024
2023
£
£
Other related parties
991,914
1,064,482
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
503
-
Other information
In accordance with FRS102, Section 33 'Related Party Transactions', transactions with other group undertakings owned 100% within the group have not been disclosed in these financial statements.
23
Ultimate controlling party
The immediate parent company is Stonegate Farmers Limited.
The largest and smallest group in which the results of the company are consolidated is that headed by Stonegate Food Group Limited, registered office Lacock Green, Corsham Road, Lacock, Chippenham, Wiltshire, SN15 2LZ. The consolidated financial statements of this group are available to the public and may be obtained from Companies House, Cardiff.
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