Company registration number 09732369 (England and Wales)
A.C. GOATHAM AND SON LIMITED
Annual Report And Financial Statements
For The Year Ended 30 September 2024
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Company Information
Directors
C A Goatham
Mrs P L Goatham
R M Goatham
S W A Goatham
Mrs G A Goatham
C P Bennett
S G Barwick
N E Holmes
N I Stewart
P Bukowski
D D Kraev
Company number
09732369
Registered office
Flanders Farm
Ratcliffe Highway
Hoo
Rochester
Kent
England
ME3 8QE
Auditor
Spurling Cannon Audit Limited
King Arthur's Court
Maidstone Road
Charing
Ashford
Kent
England
TN27 0JS
Accountant
Chavereys Limited
The Goods Shed
Faversham
Kent
ME13 8GD
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Strategic Report
For The Year Ended 30 September 2024
- 1 -
Principal activities
A.C. Goatham and Son Limited is a private limited company whose principal activity is the growing, packing, selling and distribution of British apples and pears. It forms a major part of a wider family of fruit farming entities owned and controlled by the Goatham family working together to provide all the necessary elements of the supply chain for its customers.
Business Review
Results:
The 2023 harvest was a short crop compared to forecasted volumes, brought about by adverse weather conditions particularly in the spring of 2023. Sales of the 2023 harvest crop together with a small amount of the 2024 crop are reflected in the results for the year ended 30 September 2024. The results of the 2024 harvest were comparable to forecasted volumes.
Despite the reduction in crop and general inflationary cost pressures the company maintained its results in a competitive market. The directors are optimistic about the future trading results.
The directors report that the results of the company for the year show an underlying profit before tax of £1,680,218. The company’s net assets on 30 September 2024 were £14,829,489.
Like other horticultural businesses, A C Goatham & Son is highly capital intensive and requires a certain level of profitability to sustain investment. The company undertakes all the downstream packing and distribution elements of the A C Goatham & Son fruit farming business as well as a proportion of the upstream growing activities. The Goatham family look to achieve a blended return on capital ("ROCE") of 4% across the various elements of the UK fruit supply chain. In isolation the company made a return on capital of 3.9% (2023: 3.9%), this decreases to approximately 3.5% (2023: 3%) when blended with the other A C Goatham & Son businesses. A 4% ROCE is what the directors believe is necessary for a sustainable business.
Dividends:
No dividends were declared in the year with all profits being reinvested into the business.
Business Environment:
The Top Fruit sector continues to be highly competitive and in a constant state of evolution. The company continues to invest in new technologies, varieties and most importantly its dedicated team of employees to maintain efficiencies and sustainability.
Strategy:
The company is owned and run by the Goatham family. The company’s aim is to continue to provide the UK with Great British apples and pears using sustainable practices. Sustainable to the Goatham family is an ability to invest, to sustain supply and achieve a minimum 4% blended return on capital across the UK supply chain. The Directors continue to strive to create a cleaner, healthier and more environmentally sustainable planet. The company has invested heavily in studies into its carbon and water footprints and intends to publish the results and set and monitor targets in order to drive further improvements on top of the substantial progress it has already made on its environmental sustainability.
Principal risks and uncertainties
The political and economic uncertainty brought about by changes in government and governmental policy creates potential risks to the company. In order to manage this the company employs various tools and strategies from close working relationships with customers and suppliers to state of the art accommodation for its team of employees.
Climate change and weather variations are constantly being monitored by the company which continually evaluates climatic conditions on its farms to ensure the best growing conditions and practices are used and adapted to maintain the quality of fruit provided to its customers.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Strategic Report (Continued)
For The Year Ended 30 September 2024
- 2 -
Key performance indicators
Due to the fact the business is a primary producer the board monitors the performance of the company and related Goatham family-owned fruit businesses solely by reference to return on capital employed.
Other performance indicators
Non-financial measures include harvest yield, fruit quality, wastage and customer satisfaction reports. These are reviewed frequently by management.
Promoting the success of the company
The Directors are required by the Companies Act 2006 to act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole. The Directors are required by section 172 of the Act to have regard for the following:
1. The likely consequences of any decision in the long term
2. The interests of the company’s employees
3. The need to foster the company’s business relationships with suppliers, customers and others
4. The impact of the company's operations on the community and the environment
5. The desirability of the company maintaining a reputation for high standards of business conduct, and
6. The need to act fairly as between members of the company
The business review section of the strategic report describes the company’s activities, strategy and future prospects including the factors that drive and influence long term decision making.
The Directors recognise that the company’s employees are fundamental to the business and the Board’s ability to deliver its strategic ambitions. We strive to ensure AC Goatham and Son is a responsible employer and provides a safe and high quality workplace environment. Appropriate remuneration and incentive schemes including bonuses help ensure
employees' objectives are aligned with those of the Board.
In order to deliver on our strategy and achieve our aims, the relationships we build and maintain with suppliers, customers, growers, regulatory bodies and our banks must be strong and mutually beneficial. We are in regular contact with these groups to ensure excellent relationships are maintained.
The Board recognises that the company has a duty to minimise harm to the environment caused by its activities. The company and the related Goatham family-owned fruit businesses have signed up to Climate Change Agreements and energy use reduction targets and have also further invested in renewable energy schemes on its pack house and cold storage sites. A comprehensive Scope 1, 2 and 3 Greenhouse Gas assessment has been undertaken and is updated regularly so that the group can accurately establish its impact using scientific principles and research.
AC Goatham and Son was established over 75 years ago and is now run by the third generation of the same family proudly growing British apples and pears. The family has built the business on the foundations of honesty and integrity and these values are core in the way in which the Directors conduct business.
The Directors maintain good relationships with the shareholders and aim to treat them equally.
This report was approved by the board and signed on its behalf.
R M Goatham
Director
26 June 2025
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Directors' Report
For The Year Ended 30 September 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2024.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
C A Goatham
Mrs P L Goatham
R M Goatham
S W A Goatham
Mrs G A Goatham
C P Bennett
S G Barwick
N E Holmes
N I Stewart
P Bukowski
D D Kraev
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
Details are provided within the Section 172 statement in the Strategic Report.
Business relationships
Details are provided within the Section 172 statement in the Strategic Report.
Post reporting date events
There have been no significant events affecting the company since the year end.
Future developments
The directors actively seek efficiencies and improvements through staff training, new technology and additional infrastructure to help drive the company forward and ensure the best product and service is provided.
Auditor
The auditors, Spurling Cannon, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Directors' Report (Continued)
For The Year Ended 30 September 2024
- 4 -
Energy and carbon report
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
228,982
177,945
- Electricity purchased
6,636,037
6,750,236
- Fuel consumed for transport
15,095,395
11,288,879
21,960,414
18,217,060
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
52.74
41.37
- Fuel consumed for transport
3,905.61
2,921.28
3,958.35
2,962.65
Scope 2 - indirect emissions
- Electricity purchased (location-based method)
1,373.99
1,397.80
Total gross emissions
5,332.34
4,360.45
Intensity ratio
Tonnes of CO2e per tonne of fruit packed
0.048
0.056
Quantification and reporting methodology
The methodology used for greenhouse gas accounting is the GHG Protocol Corporate Standard; reporting follows the mandatory requirements of HM Government Environmental Reporting Guidance including Streamlined Energy and Carbon Reporting guidance, March 2019. All emissions were calculated using the DEFRA emissions factors for 2024. All input data for fuel and electricity consumption was consistent with 2023 data submission.
Intensity measurement
The Greenhouse Gas intensity of our operations for the year was 0.048 tCO2e/tonne and is calculated as: (gas + transport + electricity emissions) / tonnes of fruit packed.
Measures taken to improve energy efficiency
We are committed to reducing our carbon footprint and improving our sustainability performance. Major investments in on-site solar and energy-efficient cold storage for our fruit have been undertaken in recent years to assist the company in meeting its carbon reduction targets.
The company and related family-owned fruit businesses are participating in the UK government’s voluntary Climate Change Agreement to reduce energy use and carbon dioxide emissions. A complete Scope 1, 2 and 3 GHG assessment has been prepared, and will be updated annually, in order to establish a roadmap to meet the net zero ambitions across government, industry and wider society.
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.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Directors' Report (Continued)
For The Year Ended 30 September 2024
- 5 -
On behalf of the board
R M Goatham
Director
26 June 2025
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Independent Auditor's Report
To The Members Of A.C. Goatham and Son Limited
- 6 -
Opinion
We have audited the financial statements of A.C. Goatham and Son Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Independent Auditor's Report (Continued)
To The Members Of A.C. Goatham and Son Limited
- 7 -
Matters on which we are required to report by exception
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 directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company and management.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedure included the following:
Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgement made by management in its significant accounting estimates;
Identifying and testing journals entries, in particular any journal entries posted with unusual account combinations and for unusual or large amounts;
Assessing the extent of compliance with the relevant laws and regulations.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Independent Auditor's Report (Continued)
To The Members Of A.C. Goatham and Son Limited
- 8 -
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.
Jonathan Spurling (senior statutory auditor)
For and on behalf of Spurling Cannon Audit Limited
26 June 2025
Chartered Accountants
Statutory Auditor
King Arthur's Court
Maidstone Road
Charing
Ashford
Kent
England
TN27 0JS
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Statement Of Comprehensive Income
For The Year Ended 30 September 2024
- 9 -
2024
2023
Notes
£
£
Turnover
2
69,718,589
63,000,376
Cost of sales
(59,686,968)
(53,521,628)
Gross profit
10,031,621
9,478,748
Administrative expenses
(7,170,851)
(6,417,220)
Other operating income
7,757
78,206
Operating profit
3
2,868,527
3,139,734
Interest payable and similar expenses
7
(1,188,309)
(1,271,517)
Profit before taxation
1,680,218
1,868,217
Tax on profit
8
(625,725)
(1,132,550)
Profit for the financial year
1,054,493
735,667
The notes on pages 13 to 25 form part of these financial statements.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Balance Sheet
As At 30 September 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
9
41,856,602
44,411,689
Current assets
Stocks
12
7,517,717
6,402,302
Debtors
11
6,974,466
5,830,978
Cash at bank and in hand
430,573
402,811
14,922,756
12,636,091
Creditors: amounts falling due within one year
13
(24,664,499)
(20,013,089)
Net current liabilities
(9,741,743)
(7,376,998)
Total assets less current liabilities
32,114,859
37,034,691
Creditors: amounts falling due after more than one year
14
(14,146,264)
(20,746,314)
Provisions for liabilities
Deferred tax liability
16
3,139,106
2,513,381
(3,139,106)
(2,513,381)
Net assets
14,829,489
13,774,996
Capital and reserves
Called up share capital
17
100
100
Share premium account
3,430,519
3,430,519
Profit and loss reserves
11,398,870
10,344,377
Total equity
14,829,489
13,774,996
The notes on pages 13 to 25 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 26 June 2025 and are signed on its behalf by:
R M Goatham
Director
Company registration number 09732369 (England and Wales)
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Statement Of Changes In Equity
For The Year Ended 30 September 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 October 2022
100
3,430,519
9,608,710
13,039,329
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
735,667
735,667
Balance at 30 September 2023
100
3,430,519
10,344,377
13,774,996
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
1,054,493
1,054,493
Balance at 30 September 2024
100
3,430,519
11,398,870
14,829,489
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Statement Of Cash Flows
For The Year Ended 30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
5,688,771
6,754,873
Investing activities
Purchase of tangible fixed assets
(2,210,005)
(1,280,766)
Proceeds from disposal of tangible fixed assets
145,126
16,000
Net cash used in investing activities
(2,064,879)
(1,264,766)
Financing activities
Repayment of bank loans
(1,017,480)
(2,882,077)
Payment of finance leases obligations
(1,390,341)
(1,560,892)
Interest paid
(1,188,309)
(1,271,517)
Net cash used in financing activities
(3,596,130)
(5,714,486)
Net increase/(decrease) in cash and cash equivalents
27,762
(224,379)
Cash and cash equivalents at beginning of year
402,811
627,190
Cash and cash equivalents at end of year
430,573
402,811
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements
For The Year Ended 30 September 2024
- 13 -
1
Accounting policies
Company information
A.C. Goatham and Son Limited is a private company limited by shares incorporated in England and Wales. The registered office is Flanders Farm, Ratcliffe Highway, Hoo, Rochester, Kent, England, ME3 8QE.
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.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover represents the net invoiced sales of fruit, packing, haulage and other income excluding discounts, rebates, value added tax and other sale taxes.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold buildings
Straight line over 25 years
Leasehold property
Straight line over 25 years
Plant and machinery
5-15% reducing balance
Office equipment
Straight line over 3 years or 15% reducing balance
Motor vehicles
25% reducing balance
Orchards (biological assets)
Straight line over 12.5-15 years
Freehold land is 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.
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.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stock. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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.
1.9
Retirement benefits
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 the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
1
Accounting policies
(Continued)
- 16 -
1.10
Leases
As lessee
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.
As lessor
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.11
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.12
Foreign exchange
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the profit and loss account within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
1.13
Biological assets are living plants controlled by the company from which it expects to derive future economic benefit. These are measured at the lower of cost less any accumulated depreciation and impairment losses.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
- 17 -
2
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Fruit sales
50,957,361
49,942,488
Packing charges
15,916,257
11,720,178
Transport and haulage
2,844,971
1,337,710
69,718,589
63,000,376
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
60,895,755
59,216,113
Rest of Europe
2,165,145
1,802,443
Rest of the world
6,657,689
1,981,820
69,718,589
63,000,376
2024
2023
£
£
Other revenue
Net rents receivable
7,973
78,206
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
5,068
120
Depreciation of owned tangible fixed assets
3,814,519
3,905,215
Depreciation of tangible fixed assets held under finance leases
843,766
941,552
Profit on disposal of tangible fixed assets
(38,319)
(12,237)
Operating lease charges
211,821
205,391
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
12,500
15,907
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Employees
462
387
Directors
11
11
Total
473
398
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
16,706,000
13,508,819
Social security costs
1,653,652
1,344,002
Pension costs
133,247
124,048
18,492,899
14,976,869
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
1,057,397
865,997
Company pension contributions to defined contribution schemes
29,283
9,283
1,086,680
875,280
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
167,840
151,746
Company pension contributions to defined contribution schemes
1,321
1,321
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
- 19 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
1,013,171
1,064,559
Other finance costs:
Interest on finance leases and hire purchase contracts
175,138
204,756
Other interest
2,202
1,188,309
1,271,517
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
625,725
1,132,550
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,680,218
1,868,217
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
420,055
467,054
Tax effect of expenses that are not deductible in determining taxable profit
722
(32,761)
Tax effect of utilisation of tax losses not previously recognised
(576,560)
(744,668)
Depreciation in excess of capital allowances
155,783
310,375
Deferred tax movement
625,725
1,132,550
Taxation charge for the year
625,725
1,132,550
At the year end the company had tax losses of £5,104,546 (2023: £7,052,215) available for future relief.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
- 20 -
9
Tangible fixed assets
Freehold buildings
Leasehold property
Plant and machinery
Office equipment
Motor vehicles
Orchards (biological assets)
Total
£
£
£
£
£
£
£
Cost
At 1 October 2023
27,820,033
6,575,799
17,145,173
396,799
5,001,536
13,121,533
70,060,873
Additions
894,684
14,624
1,232,246
48,696
19,755
2,210,005
Disposals
(5,450)
(85,000)
(131,101)
(221,551)
At 30 September 2024
28,714,717
6,584,973
18,292,419
445,495
4,870,435
13,141,288
72,049,327
Depreciation and impairment
At 1 October 2023
10,935,051
466,329
7,755,157
290,084
2,789,932
3,412,631
25,649,184
Depreciation charged in the year
1,128,621
262,814
1,482,789
37,931
478,213
1,267,917
4,658,285
Eliminated in respect of disposals
(45,241)
(69,503)
(114,744)
At 30 September 2024
12,063,672
729,143
9,192,705
328,015
3,198,642
4,680,548
30,192,725
Carrying amount
At 30 September 2024
16,651,045
5,855,830
9,099,714
117,480
1,671,793
8,460,740
41,856,602
At 30 September 2023
16,884,982
6,109,470
9,390,016
106,715
2,211,604
9,708,902
44,411,689
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
9
Tangible fixed assets
(Continued)
- 21 -
Tangible fixed assets includes assets held under finance leases or hire purchase contracts, as follows:
2024
2023
£
£
Plant and machinery
3,337,292
3,939,505
Motor vehicles
865,121
1,118,625
4,202,413
5,058,130
10
Financial instruments
2024
2023
£
£
Carrying amount of financial assets include:
Instruments measured at fair value through profit or loss
6,180,469
5,139,746
Carrying amount of financial liabilities include:
Measured at fair value through profit or loss
- Other financial liabilities
(37,442,208)
(39,459,988)
Financial assets that are debt instruments measured at amortised cost comprise trade debtors, other debtors and intercompany balances.
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,620,392
4,629,963
Other debtors
560,077
509,786
Prepayments and accrued income
793,997
691,229
6,974,466
5,830,978
12
Stocks
2024
2023
£
£
Fruit
6,880,984
5,736,623
Consumables
636,733
665,679
7,517,717
6,402,302
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
- 22 -
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
15
7,312,481
2,909,314
Obligations under finance lease and hire purchase contracts
1,189,269
1,476,115
Invoice discounting
1,895,874
2,114,204
Trade creditors
3,501,901
2,523,024
Taxation and social security
329,050
184,003
Government grants
75,907
75,907
Other creditors
3,143,984
4,727,495
Accruals and deferred income
7,216,033
6,003,027
24,664,499
20,013,089
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
11,390,870
16,811,517
Obligations under finance leases
1,791,796
2,895,291
Government grants
963,598
1,039,506
14,146,264
20,746,314
Creditors which fall due after five years are payable as follows:
Payable by instalments
7,345,946
8,874,260
15
Loans and overdrafts
2024
2023
£
£
Bank loans
18,703,351
19,720,831
Payable within one year
7,312,481
2,909,314
Payable after one year
11,390,870
16,811,517
Details of security provided:
The bank loans are secured by way of a fixed and floating charge over the land and property assets of the company. Finance lease and hire purchase balances are secured against the assets to which they relate.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
15
Loans and overdrafts
(Continued)
- 23 -
The above balances not wholly repayable within five years comprise the following:
Bank loan of £2,666,173 repayable by annual repayments up to maturity in September 2036 and bearing a fixed interest rate at 3.08% per annum.
Bank loan of £2,939,739 repayable by annual repayments up to maturity in May 2033 and bearing a fixed interest rate at 3.52% per annum.
Bank loan of £1,735,034 repayable by annual instalments up to maturity in May 2033 and bearing a variable interest rate with 2.2% margin.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
4,414,124
4,276,435
Tax losses
(1,275,018)
(1,763,054)
3,139,106
2,513,381
2024
Movements in the year:
£
Liability at 1 October 2023
2,513,381
Charge to profit or loss
625,725
Liability at 30 September 2024
3,139,106
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to the profit and loss account in respect of defined contribution schemes
133,247
124,048
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.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
18
Retirement benefit schemes
(Continued)
- 24 -
Contributions totalling £2,140 (2023 - £1,871) were payable at the balance sheet date and are included in creditors.
19
Operating lease commitments
As lessee
Lease commitments are in respect of agreements concerning vehicles and equipment used within the company's trade.
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 1 year
942,904
964,443
Years 2-5
949,416
962,856
1,892,320
1,927,299
20
Related party transactions
Transactions with related parties
During the year the company has traded with A C Goatham and Son, a partnership in which some of the directors are partners. All transactions were undertaken on an arms length transaction basis and at the year end £157,666 was owed to the partnership (2023: £1,761,494 was owed to the partnership).
The company has traded with ACG&S Farming Limited, a company in which some of the directors are directors. All transactions were undertaken on an arms length transaction basis and at the year end £425,321 (2023: £402,321) was owed by ACG&S Farming Limited.
The company has traded with A&S Growers, an unlimited company in which some of the directors are directors. All transactions were undertaken on an arms length transaction basis and at the year end £2,981,558 (2023: £2,964,954) was owed to A&S Growers.
Accountancy fees totalling £43,000 were charged to the company by Chavereys, a limited company in which one of the directors is a director and shareholder.
Consultancy fees totalling £65,000 were charged to the company by Begur Ltd, a company in which one of the directors is a director and shareholder. At the year end no amounts were outstanding.
A.C. Goatham and Son Limited
A.C. GOATHAM AND SON LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 30 September 2024
- 25 -
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
1,054,493
735,667
Adjustments for:
Taxation charged
625,725
1,132,550
Finance costs
1,188,309
1,271,517
Gain on disposal of tangible fixed assets
(38,319)
(12,237)
Depreciation and impairment of tangible fixed assets
4,658,285
4,846,767
Movements in working capital:
Increase in stocks
(1,115,415)
(591,422)
Increase in debtors
(1,143,488)
(1,676,345)
Increase in creditors
535,089
1,124,284
Decrease in deferred income
(75,908)
(75,908)
Cash generated from operations
5,688,771
6,754,873
22
Analysis of changes in net debt
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
402,811
27,762
430,573
Borrowings excluding overdrafts
(19,720,831)
1,017,480
(18,703,351)
Obligations under finance leases
(4,371,406)
1,390,341
(2,981,065)
(23,689,426)
2,435,583
(21,253,843)
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