Registered number: 05496521
SOUTH EASTERN PRODUCE LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 30 JUNE 2024
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SOUTH EASTERN PRODUCE LIMITED
REGISTERED NUMBER: 05496521
BALANCE SHEET
AS AT 30 JUNE 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current assets/(liabilities)
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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SOUTH EASTERN PRODUCE LIMITED
REGISTERED NUMBER: 05496521
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2024
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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Mr Robert Brown
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The notes on pages 3 to 10 form part of these financial statements.
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SOUTH EASTERN PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
South Eastern Produce Limited is a private limited company incorporated in England and Wales. The registered office and also principal place of business is Potton Road, Biggleswade, Bedfordshire, SG18 0ER.
The financial statements are presented in GBP, which is also the functional currency of the Company, and figures are rounded to the nearest pound.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
Turnover is the total amount derived from the provision of goods and services, arising in the United Kingdom, which fell within the Company's ordinary activities after deduction of Value Added Tax.
The turnover and profit/(loss) are entirely attributable to the Company's main activity of packing, grading, transporting, and marketing the produce supplied by members of the Company.
The value of produce throughput marketed by this Company (as disclosed in The Directors' Report on page 1) is not recognised as turnover in these financial statements and is therefore disclosed for completeness only.
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SOUTH EASTERN PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis. The Directors have considered the appropriateness of this basis, taking into account the following material uncertainties:
Withdrawal of government funding for Producer Organisation Scheme
A significant proportion of the Company’s trade is derived from activities related to the Producer Organisation Scheme. On 12 March 2025, the UK Government announced its decision to withdraw all funding for English Producer Organisations under the scheme, with funding set to cease from 31 December 2025. This development creates significant uncertainty regarding the Company’s future trading levels beyond this date.
The Directors intend to continue operating the Company; however, they recognise that if the government’s decision remains unchanged, the withdrawal of funding could have a dramatic impact on the level of trade, which may materially affect the future financial performance and strategic direction of the Company. As such, this situation represents a material uncertainty.
No detailed financial forecasts have been prepared at this stage, given the timing and nature of the announcement. However, the Directors have assessed the Company’s current financial position and confirm that it has sufficient funds to continue operating for at least 12 months from the date of approval of these financial statements, even in the absence of income from Producer Organisation activities.
Whilst the Directors remain confident that the Company will be able to continue in operational existence for the foreseeable future, the factors described above represent material uncertainties that may cast significant doubt on the Company’s ability to continue as a going concern. The financial statements do not include the adjustments that would be required should the Company be unable to continue as a going concern.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
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SOUTH EASTERN PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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10% to 25% per annum on a straight-line basis
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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SOUTH EASTERN PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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SOUTH EASTERN PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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The average monthly number of employees, including directors, during the year was 8 (2023 - 9).
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SOUTH EASTERN PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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Charge for the year on owned assets
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SOUTH EASTERN PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.
The bank loan is secured by a debenture granted by the Company.
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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SOUTH EASTERN PRODUCE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
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Capital financial assistance
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Deferred financial assistance income brought forward
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Financial assistance received during the year in respect of current year
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Financial assistance released to the Statement of Comprehensive Income
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Included within notes 6 and 7 are deferred capital financial assistance creditors totalling £482,756 (2023: £518,619). Capital financial assistance is regarded as deferred income and is recognised over the useful economic life of the asset to which it pertains.
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Revenue financial assistance
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Released to the Statement of Comprehensive income
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Related party transactions
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Owing to the nature of the business, all members of the producer organisation are directors of the Company and related parties.
Charges made to related parties during the period for administration, operating fund levy and recharges total £2,451,343 (2023: £2,051,542).
Amounts due to the Company at the year end from related parties is £935,003 (2023: £659,907).
Amounts due by the Company at the year end to related parties is £1,714,708 (2023: £592,347).
During the year £238,774 (2023: £300,432) of financial assistance was paid to related parties.
The company repaid loan amounts to a related party totalling £nil (2023: £100,000). At the year end the balance outstanding was £nil (2023: £nil).
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The auditor's report on the financial statements for the year ended 30 June 2024 was unqualified.
The audit report was signed on 24 June 2025 by Andrew Moyser FCCA FCA (Senior statutory auditor) on behalf of MHA.
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