Company registration number 04098531 (England and Wales)
YORKSHIRE FARMHOUSE EGGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
YORKSHIRE FARMHOUSE EGGS LIMITED
COMPANY INFORMATION
Directors
Mr A G Potter
Mrs S J Potter
Secretary
Mrs S J Potter
Company number
04098531
Registered office
Village Farm
Catton
Thirsk
North Yorkshire
YO7 4BZ
Auditor
Henton & Co LLP
124 Acomb Road
York
YO24 4EY
Bankers
Virgin Money
21 James Street
Harrogate
HG1 1QU
YORKSHIRE FARMHOUSE EGGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
YORKSHIRE FARMHOUSE EGGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Business Review

The Company is a wholly owned subsidiary of Potters Family Holdings Limited.

 

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

 

We consider the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and profit before tax. In the financial year there was an increase in turnover of £9,858,072 (39.0%) to £35,164,398. Profit before tax decreased by £232,347 (13.0%) to £1,559,146.

Principal risks and uncertainties

The directors monitor the key risks facing the company and have strategies in place to reduce these risks where possible. One of the principal risks is that of a disease pandemic and the associated risks, as seen with the impact of the avian flu pandemic and consequently having to downgrade free range eggs to barn eggs. The other main risk is that of being able to meet the demands of the customers both in terms of price and demand. The company has reduced the impact of this risk by keeping up to date with industry advancements.

 

Financial risk management

The company's operations expose it to a variety of risks. However, given the size of the company, the directors have not delegated the responsibility of monitoring the risks to a sub-committee of the board. The policies set by the directors are implemented by the company's management.

 

Liquidity risk

The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned capital investments.

 

Interest rate risk

The company has both interest bearing assets and interest bearing liabilities. The company's exposure to interest rate risk is regularly evaluated and action would be taken to mitigate any exposure as necessary.

 

Foreign currency risk

The business trades entirely in the UK. Occasional purchases of equipment are made from Europe but not in significant enough volumes to represent a risk.

 

Credit risk

The company has policies in place to credit check potential customers before any sales are made and payment terms are strictly monitored. Relationships with the customers are long term and there has been no historical issues.

 

Price risk

The company looks to agree long term prices with both suppliers and customers in order to protect against significant adverse changes. A large proportion of the company's supplies are produced by related entities and therefore costs are controlled by the directors.

 

Future developments

The Directors are not aware at the date of the report of any likely major changes in the Company's activities in the next year.

YORKSHIRE FARMHOUSE EGGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

On behalf of the board

Mr A G Potter
Director
28 March 2025
YORKSHIRE FARMHOUSE EGGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of grading, packing and selling barn, free range and organic hen eggs in the UK.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £117,320. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A G Potter
Mrs S J Potter
Mr J R Potter
(Deceased 20 December 2024)
Auditor

Henton & Co LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 G Potter
Director
28 March 2025
YORKSHIRE FARMHOUSE EGGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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

YORKSHIRE FARMHOUSE EGGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF YORKSHIRE FARMHOUSE EGGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Yorkshire Farmhouse Eggs Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet, 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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.

Other information

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:

YORKSHIRE FARMHOUSE EGGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF YORKSHIRE FARMHOUSE EGGS LIMITED (CONTINUED)
- 6 -
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:

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 extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

- Enquiry of management, those charged with governance around actual and potential litigation and claims.

- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Brett Davis
Senior Statutory Auditor
For and on behalf of Henton & Co LLP
28 March 2025
Chartered Accountants
Statutory Auditor
124 Acomb Road
York
YO24 4EY
YORKSHIRE FARMHOUSE EGGS LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
35,164,398
25,306,326
Cost of sales
(32,778,596)
(23,526,427)
Gross profit
2,385,802
1,779,899
Administrative expenses
(899,849)
(832,817)
Other operating income
48,299
432,717
Operating profit
4
1,534,252
1,379,799
Interest receivable and similar income
6
53,040
473,120
Interest payable and similar expenses
7
(28,146)
(61,426)
Profit before taxation
1,559,146
1,791,493
Tax on profit
8
(360,558)
(8,603)
Profit for the financial year
1,198,588
1,782,890
Retained earnings brought forward
4,462,846
3,061,699
Dividends
9
(117,320)
(381,743)
Retained earnings carried forward
5,544,114
4,462,846

The profit and loss account has been prepared on the basis that all operations are continuing operations.

YORKSHIRE FARMHOUSE EGGS LIMITED
BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,843,249
2,582,684
Investments
11
101
101
1,843,350
2,582,785
Current assets
Stocks
14
741,859
680,806
Debtors
15
5,790,476
4,584,493
Cash at bank and in hand
871,017
616,617
7,403,352
5,881,916
Creditors: amounts falling due within one year
16
(3,050,983)
(3,198,676)
Net current assets
4,352,369
2,683,240
Total assets less current liabilities
6,195,719
5,266,025
Creditors: amounts falling due after more than one year
17
(465,447)
(563,133)
Provisions for liabilities
Deferred tax liability
19
184,658
238,546
(184,658)
(238,546)
Net assets
5,545,614
4,464,346
Capital and reserves
Called up share capital
22
1,500
1,500
Profit and loss reserves
5,544,114
4,462,846
Total equity
5,545,614
4,464,346

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
Mr A G Potter
Director
Company registration number 04098531 (England and Wales)
YORKSHIRE FARMHOUSE EGGS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
158,100
1,602,024
Interest paid
(28,146)
(61,426)
Income taxes (paid)/refunded
(41,749)
86,664
Net cash inflow from operating activities
88,205
1,627,262
Investing activities
Purchase of tangible fixed assets
(145,058)
(578,746)
Proceeds from disposal of tangible fixed assets
460,114
2,000
Interest received
40
-
0
Dividends received
53,000
473,120
Net cash generated from/(used in) investing activities
368,096
(103,626)
Financing activities
Payment of finance leases obligations
(84,581)
197,864
Dividends paid
(117,320)
(381,743)
Net cash used in financing activities
(201,901)
(183,879)
Net increase in cash and cash equivalents
254,400
1,339,757
Cash and cash equivalents at beginning of year
616,617
(723,140)
Cash and cash equivalents at end of year
871,017
616,617
YORKSHIRE FARMHOUSE EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
1
Accounting policies
Company information

Yorkshire Farmhouse Eggs Limited is a private company limited by shares incorporated in England and Wales. The registered office is Village Farm, Catton, Thirsk, North Yorkshire, YO7 4BZ.

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

The directors continue to adopt the going concern basis of accounting in preparing the financial statements based on the following.true

At the year end the company had net assets of £5,545,614 and net current assets of £4,352,369, after making a profit of £1,198,588. Trading results for the months following the year end show that the company continues to make a profit.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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 land and buildings
2% straight line
Property improvements
4% straight line
Plant and equipment
10% straight line
Motor vehicles
25% reducing balance

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.

YORKSHIRE FARMHOUSE EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 11 -
1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held with banks. Bank overdrafts are shown within borrowings in current liabilities.

1.9
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.

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.

YORKSHIRE FARMHOUSE EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
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.

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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

YORKSHIRE FARMHOUSE EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
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.

1.10
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.

1.11
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.

1.12
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

YORKSHIRE FARMHOUSE EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.14
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.

1.15
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are 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.

3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
40
-
Dividends received
53,000
473,120
Grants received
20,994
20,994
YORKSHIRE FARMHOUSE EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
-
0
3,980
Government grants
(20,994)
(20,994)
Fees payable to the company's auditor for the audit of the company's financial statements
11,545
10,995
Depreciation of owned tangible fixed assets
400,591
382,439
Loss/(profit) on disposal of tangible fixed assets
23,788
(1,565)
Operating lease charges
3,037
12,105
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Office and management
13
12
Drivers
5
5
Production
36
31
Total
54
48

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,303,622
1,121,599
Social security costs
112,901
98,065
Pension costs
23,821
15,354
1,440,344
1,235,018
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
40
-
0
Income from fixed asset investments
Income from shares in group undertakings
53,000
473,120
Total income
53,040
473,120
YORKSHIRE FARMHOUSE EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
7
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
28,146
61,038
Other interest
-
0
388
28,146
61,426
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
414,446
41,709
Deferred tax
Origination and reversal of timing differences
(53,888)
(33,106)
Total tax charge
360,558
8,603

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
1,559,146
1,791,493
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
389,787
367,182
Group relief
(35,646)
(160,304)
Permanent capital allowances in excess of depreciation
73,555
(68,199)
Dividend income
(13,250)
(96,970)
Movement in deferred tax
(53,888)
(33,106)
Taxation charge for the year
360,558
8,603
9
Dividends
2024
2023
£
£
Final paid
117,320
381,743
YORKSHIRE FARMHOUSE EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
10
Tangible fixed assets
Freehold land and buildings
Property improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
8,389
1,887,421
3,403,039
342,143
5,640,992
Additions
-
0
93,790
32,810
18,458
145,058
Disposals
(8,389)
(982,696)
(304,924)
(159,085)
(1,455,094)
At 30 June 2024
-
0
998,515
3,130,925
201,516
4,330,956
Depreciation and impairment
At 1 July 2023
-
0
732,008
2,072,582
253,718
3,058,308
Depreciation charged in the year
-
0
76,877
304,620
19,094
400,591
Eliminated in respect of disposals
-
0
(542,637)
(280,947)
(147,608)
(971,192)
At 30 June 2024
-
0
266,248
2,096,255
125,204
2,487,707
Carrying amount
At 30 June 2024
-
0
732,267
1,034,670
76,312
1,843,249
At 30 June 2023
8,389
1,155,413
1,330,457
88,425
2,582,684
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
100
100
Investments in joint ventures
13
1
1
101
101
12
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Hoads Farm Limited
Village Farm, Catton, Thirsk, North Yorkshire, YO7 4SQ
Ordinary
100.00
13
Joint ventures

Details of the company's joint ventures at 30 June 2024 are as follows:

Name of undertaking
Registered office
Interest
% Held
held
Direct
Wood Farm Freerange Eggs Limited
Wood Farm, Vicarage Road, Waresley, Sandy, Bedfordshire, SG19 3DA
Ordinary
50.00
YORKSHIRE FARMHOUSE EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
741,859
680,806
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
5,409,659
4,114,570
Corporation tax recoverable
276,645
276,645
Amounts owed by group undertakings
55
62,803
Other debtors
74,057
92,254
Prepayments and accrued income
30,060
38,221
5,790,476
4,584,493
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
18
76,692
84,581
Trade creditors
1,285,514
1,055,169
Amounts owed to group undertakings
6,900
2,000
Corporation tax
414,406
41,709
Other taxation and social security
35,804
34,154
Government grants
20
20,994
20,994
Other creditors
1,162,713
1,899,276
Accruals and deferred income
47,960
60,793
3,050,983
3,198,676
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
18
402,464
479,156
Government grants
20
62,983
83,977
465,447
563,133
YORKSHIRE FARMHOUSE EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
76,692
84,581
In two to five years
402,464
479,156
479,156
563,737

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets.

19
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
184,658
238,546
2024
Movements in the year:
£
Liability at 1 July 2023
238,546
Credit to profit or loss
(53,888)
Liability at 30 June 2024
184,658

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

20
Government grants
2024
2023
£
£
Arising from government grants
83,977
104,971
Included in the financial statements as follows:
Current liabilities
20,994
20,994
Non-current liabilities
62,983
83,977
83,977
104,971
YORKSHIRE FARMHOUSE EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
23,821
15,354

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.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
1,500
1,500
1,500
1,500
23
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

The company made sales of £46,995 (2023: £39,990) to, purchases of £13,415,259 (2023: £11,112,553) from and sold land, buildings and machinery of £423,351 (2023: NIL) to Potters Farm Production LLP, a limited liability partnership in which the directors are designated members. At the year end £(1,001,129) (2023: £972) was included in other creditors, £2,165,387 (2023: £1,905,665) was included in trade creditors and £1,687 (2023: £8,443) was included in trade debtors.

 

The company made sales of £56,782 (2023: £47,711) to and purchases of £94,582 (2023: £80,424) from Wood Farm Freerange Eggs Limited, a company in which there is a 50% investment. At the year end £5,859 (2023: £8,688) was included in trade debtors and £5,760 (2023: £NIL) was included in trade creditors.

 

The company made sales of £NIL (2023: £NIL) to J R & S J Potter, a partnership in which J R Potter and S J Potter are partners. At the year end £NIL (2023: £678) was included in trade debtors.

 

The company made use of land owned by Potters Farm Production LLP for which no rent was paid.

 

All transactions took place on normal commercial terms. the outstanding balances are unsecured, interest free and repayable on demand.

24
Ultimate controlling party

The parent company is Potter Family Holdings Limited by virtue of their ownership of 100% of the issued share capital. Their registered office address is: Village Farm, Catton, Thirsk, North Yorkshire, YO7 4SQ.

 

The ultimate controlling party is Mr A G Potter by virtue of owning 33.3% of the issued share capital of Potter Family Holdings Limited.

YORKSHIRE FARMHOUSE EGGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
25
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,198,588
1,782,890
Adjustments for:
Taxation charged
360,558
8,603
Finance costs
28,146
61,426
Investment income
(53,040)
(473,120)
Loss/(gain) on disposal of tangible fixed assets
23,788
(1,565)
Depreciation and impairment of tangible fixed assets
400,591
382,439
Movements in working capital:
Increase in stocks
(61,053)
(342,825)
Increase in debtors
(1,205,983)
(1,026,304)
(Decrease)/increase in creditors
(512,501)
1,231,475
Decrease in deferred income
(20,994)
(20,995)
Cash generated from operations
158,100
1,602,024
26
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
616,617
254,400
871,017
Obligations under finance leases
(563,737)
84,581
(479,156)
52,880
338,981
391,861
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