Company Registration No. (England and Wales)
CHESTNUT GROWERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
CHESTNUT GROWERS LIMITED
COMPANY INFORMATION
Directors
Mr S R Eckley
Mrs V J Eckley
Company number
05409973
Registered office
1 Knights Court
Archers Way
Battlefield Enterprise Park
Shrewsbury
Shropshire
SY1 3GA
Auditor
James Holyoak & Parker Limited
1 Knights Court
Archers Way
Battlefield Enterprise Park
Shrewsbury
SY1 3GA
Business address
The Yeld Farm
Lyonshall
Kington
Herefordshire
HR5 3LY
CHESTNUT GROWERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 34
CHESTNUT GROWERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Review of the business
We aim to present a balanced and comprehensive review of the development and performance of our business during the period 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.
As a group we are contracted to grow chickens for Avara Foods Limited though our group companies: Chestnut Growers Ltd, Woodgate Growers Ltd, Hangar Growers Ltd and Shobdon Growers Ltd which are all based at sites in Herefordshaire.
Principal risks and uncertainties
Approach to risk
The group's operations expose it to a variety of risks that include animal health, liquidity risk, cash flow risk and customer concentration risk.
Animal Health
Reportable disease such as avian influenza remains a potential risk to ongoing operations, the Chestnut Group of companies operates bio-security measures to mitigate this risk. The company works alongside Avara Foods Ltd and governmental agencies to ensure disease risks can be controlled and isolated.
Cash flow risk
This is the risk of exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability. The group manages this risk through the fixing of its loan rates and the use of its short term overdraft facility.
Liquidity risk
This arises when an entity encounters difficulty in meeting its obligations. The group aims to mitigate this risk by focusing on its working capital cycle and adjustments to planned spending as and when required. The group also manages liquidity risk via long term debt.
Customer concentration
This is the risk of losing a major customer leading to a significant drop in revenue. The group aims to mitigate this by securing loan term contracts where it is deemed beneficial and by working closely with its customer to ensure high customer satisfaction.
Development and performance
The directors are pleased with the results for the year. The group profit after tax for the year amounted to £330,632 and total net assets increased by £239,632 from £879,255 to £1,118,887. Long term bank debt continues to fall with a number of loans due to be paid in full in the next two years.
Key performance indicators
We consider our key performance indicators to be our total chicken margin as measured by pence/per metre square/per week (p/m2/wk) and our earnings before interest, tax,depreciation and amortisation (EBITDA)
During the year at a group level we achieved an average chicken margin of 129.65 p/m2/wk compared to a budget of 125.00 p/m2/wk and our EBITA was £942,710 compared to our 2023 EBITDA of £541,469.
.
Other information and explanations
Engagement with suppliers, customers and employees
Our behaviours and decision making are focused on growing a strong and stable business and we engage with all suppliers, customers and employees.
We promote our reputation for being a family owned business who listen to all our stakeholders.
We endevour to ensure all payments to suppliers are made on a timely basis and uphold the principles upon which our business is built.
Staff are trained to the levels that are required and any concerns are listened to and dealt with.
CHESTNUT GROWERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Mr S R Eckley
Director
27 June 2025
CHESTNUT GROWERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company and of the group subsidiary companies continued to be that of poultry farming.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £91,000. 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 S R Eckley
Mrs V J Eckley
Auditor
James Holyoak & Parker were appointed as auditor to the group 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 directors' responsibilities
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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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 auditor of the company 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 auditor of the company 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.
CHESTNUT GROWERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
On behalf of the board
Mr S R Eckley
Director
27 June 2025
CHESTNUT GROWERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHESTNUT GROWERS LIMITED
- 5 -
Opinion
We have audited the financial statements of Chestnut Growers Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group's and the parent company's affairs as at 31 March 2024 and of the group's 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 group and parent 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 group's and parent 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.
CHESTNUT GROWERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHESTNUT GROWERS LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 parent 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 parent 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.
The audit team obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS102 and the Companies Act 2006), the relevant tax compliance regulations, employment law, the Animal Welfare Act 2006, Environmental Agency legislation, Health and Safety Regulations and the EU General Data Protection Regulation (GDPR).
We understood how the company is complying with these frameworks by making enquiries of management and those responsible for legal and compliance procedures.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by meeting with key management to understand where they considered there was a susceptibility to fraud. Based on our understanding, our procedures involved enquiries of management and those charged with governance, manual journal entry testing, cashbook reviews for large and unusual items and the challenge of significant accounting estimates used in preparing the financial statements.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
CHESTNUT GROWERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHESTNUT GROWERS LIMITED
- 7 -
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.
Mr Jonathan Rimmer BSc FCA (Senior Statutory Auditor)
For and on behalf of James Holyoak & Parker Limited, Statutory Auditor
Chartered Accountants
1 Knights Court
Archers Way
Battlefield Enterprise Park
Shrewsbury
SY1 3GA
27 June 2025
CHESTNUT GROWERS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
15,202,612
15,780,627
Cost of sales
(13,182,687)
(14,072,013)
Gross profit
2,019,925
1,708,614
Administrative expenses
(1,489,854)
(1,564,934)
Other operating income
20
17
Operating profit
5
530,091
143,697
Interest receivable and similar income
7
114
Interest payable and similar expenses
8
(399,872)
(344,066)
Profit/(loss) before taxation
130,333
(200,369)
Tax on profit/(loss)
9
200,299
55,487
Profit/(loss) for the financial year
25
330,632
(144,882)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
CHESTNUT GROWERS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
Profit/(loss) for the year
330,632
(144,882)
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
Total comprehensive income for the year
330,632
(144,882)
Total comprehensive income for the year is all attributable to the owners of the parent company.
CHESTNUT GROWERS LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 10 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
13
9,711,484
9,827,656
Current assets
Stocks
15
1,369,403
823,243
Debtors
17
490,866
433,784
Cash at bank and in hand
17,494
6,004
1,877,763
1,263,031
Creditors: amounts falling due within one year
18
(2,762,053)
(2,017,745)
Net current liabilities
(884,290)
(754,714)
Total assets less current liabilities
8,827,194
9,072,942
Creditors: amounts falling due after more than one year
21
(7,451,644)
(7,983,687)
Provisions for liabilities
Deferred tax liability
22
256,663
210,000
(256,663)
(210,000)
Net assets
1,118,887
879,255
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
25
1,118,787
879,155
Total equity
1,118,887
879,255
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 27 June 2025 and are signed on its behalf by:
27 June 2025
Mr S R Eckley
Director
Company registration number 05409973 (England and Wales)
CHESTNUT GROWERS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
13
2,114,392
2,043,288
Investments
12
400
400
2,114,792
2,043,688
Current assets
Stocks
15
545,847
401,560
Debtors
17
554,946
388,542
1,100,793
790,102
Creditors: amounts falling due within one year
18
(1,083,218)
(844,218)
Net current assets/(liabilities)
17,575
(54,116)
Total assets less current liabilities
2,132,367
1,989,572
Creditors: amounts falling due after more than one year
21
(442,754)
(517,956)
Provisions for liabilities
Deferred tax liability
22
154,000
154,000
(154,000)
(154,000)
Net assets
1,535,613
1,317,616
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
25
1,535,513
1,317,516
Total equity
1,535,613
1,317,616
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £308,997 (2023 - £260,477 profit).
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 27 June 2025 and are signed on its behalf by:
27 June 2025
Mr S R Eckley
Director
Company registration number 05409973 (England and Wales)
CHESTNUT GROWERS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
100
1,115,037
1,115,137
Year ended 31 March 2023:
Loss and total comprehensive income
-
(144,882)
(144,882)
Dividends
10
-
(91,000)
(91,000)
Balance at 31 March 2023
100
879,155
879,255
Year ended 31 March 2024:
Profit and total comprehensive income
-
330,632
330,632
Dividends
10
-
(91,000)
(91,000)
Balance at 31 March 2024
100
1,118,787
1,118,887
CHESTNUT GROWERS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
100
1,148,039
1,148,139
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
260,477
260,477
Dividends
10
-
(91,000)
(91,000)
Balance at 31 March 2023
100
1,317,516
1,317,616
Year ended 31 March 2024:
Profit and total comprehensive income
-
308,997
308,997
Dividends
10
-
(91,000)
(91,000)
Balance at 31 March 2024
100
1,535,513
1,535,613
CHESTNUT GROWERS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
781,539
1,007,377
Interest paid
(399,872)
(344,066)
Income taxes refunded
226,082
172,425
Net cash inflow from operating activities
607,749
835,736
Investing activities
Purchase of tangible fixed assets
(328,447)
(6,008,618)
Proceeds from disposal of tangible fixed assets
32,000
-
Interest received
114
Net cash used in investing activities
(296,333)
(6,008,618)
Financing activities
Repayment of bank loans
(355,894)
5,372,242
Payment of finance leases obligations
116,890
(15,268)
Dividends paid to equity shareholders
(91,000)
(91,000)
Net cash (used in)/generated from financing activities
(330,004)
5,265,974
Net (decrease)/increase in cash and cash equivalents
(18,588)
93,092
Cash and cash equivalents at beginning of year
(97,775)
(190,867)
Cash and cash equivalents at end of year
(116,363)
(97,775)
Relating to:
Cash at bank and in hand
17,494
6,004
Bank overdrafts included in creditors payable within one year
(133,857)
(103,779)
CHESTNUT GROWERS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
383,656
658,126
Interest paid
(38,196)
(44,425)
Income taxes refunded
31,732
121,133
Net cash inflow from operating activities
377,192
734,834
Investing activities
Purchase of tangible fixed assets
(275,706)
(61,627)
Proceeds from disposal of tangible fixed assets
32,000
Interest received
88
Net cash used in investing activities
(243,618)
(61,627)
Financing activities
Repayment of bank loans
(159,201)
(438,324)
Payment of finance leases obligations
116,890
(15,268)
Dividends paid to equity shareholders
(91,000)
(91,000)
Net cash used in financing activities
(133,311)
(544,592)
Net increase in cash and cash equivalents
263
128,615
Cash and cash equivalents at beginning of year
(90,646)
(219,261)
Cash and cash equivalents at end of year
(90,383)
(90,646)
Relating to:
Bank overdrafts included in creditors payable within one year
(90,383)
(90,646)
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
1
Accounting policies
Company information
Chestnut Growers Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 Knights Court, Archers Way, Battlefield Enterprise Park, Shrewsbury, Shropshire, SY1 3GA.
The group consists of Chestnut Growers Limited and all of its subsidiaries.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Chestnut Growers Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.
1.5
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is three years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
Amortisation 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:
Licenses
over 10 years
1.8
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
over 30 years
Plant and equipment
over 8 years
Solar Farm
over 20 years
Motor vehicles
25% reducing balance
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 recognised in the profit and loss account.
1.9
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. 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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
1.10
Borrowing costs related to fixed assets
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
1.11
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.12
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.13
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.
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
1.14
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
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 group 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 group after deducting all of its liabilities.
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
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.
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 group's contractual obligations expire or are discharged or cancelled.
1.15
Equity instruments
Equity instruments issued by the group 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 group.
1.16
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
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 if, and only if, there is 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.
1.17
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
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 leased asset are consumed.
1.20
Certain prior year comparatives have been restated for disclosure purposes. These restatements do not effect the retained reserves of the company.
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’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
£
£
Turnover analysed by class of business
Farming
14,669,236
15,194,283
Energy
533,376
586,344
15,202,612
15,780,627
2024
2023
£
£
Other revenue
Interest income
114
-
4
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
12
12
4
4
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
333,101
280,677
104,454
91,039
Pension costs
18,909
11,953
6,402
6,813
352,010
292,630
110,856
97,852
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
5
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
25,000
-
Depreciation of owned tangible fixed assets
417,926
393,026
Depreciation of tangible fixed assets held under finance leases
21,621
4,746
Profit on disposal of tangible fixed assets
(26,928)
-
Operating lease charges
1,500
6,000
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
15,000
15,000
Company pension contributions to defined contribution schemes
5,000
5,000
20,000
20,000
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
114
-
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
396,952
342,708
Other finance costs:
Interest on finance leases and hire purchase contracts
2,885
1,358
Other interest
35
-
Total finance costs
399,872
344,066
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(76,253)
(55,487)
Adjustments in respect of prior periods
(170,709)
Total current tax
(246,962)
(55,487)
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
2024
2023
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
46,663
Total tax credit
(200,299)
(55,487)
The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
130,333
(200,369)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
32,583
(38,070)
Unutilised tax losses carried forward
59,869
Adjustments in respect of prior years
(170,710)
Research and development tax credit
(76,253)
(55,487)
Tax at marginal rate
10,720
Depreciation in excess of tax allowances
25,303
Tax allowances in excess of depreciation
(2,303)
Deferred tax movement in the year
46,663
Tax loss surrendered for tax credits
137,068
72,708
Over/under provision
-
85,192
Profit on sale of fixed asset
(94,383)
-
R&D Claim
(143,553)
(145,133)
Taxation credit
(200,299)
(55,487)
10
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
91,000
91,000
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
11
Intangible fixed assets
Group
Goodwill
Licenses
Total
£
£
£
Cost
At 1 April 2023 and 31 March 2024
107,924
25,734
133,658
Amortisation and impairment
At 1 April 2023 and 31 March 2024
107,924
25,734
133,658
Carrying amount
At 31 March 2024
At 31 March 2023
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
400
400
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
400
Carrying amount
At 31 March 2024
400
At 31 March 2023
400
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
13
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Solar Farm
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
9,478,184
3,274,868
554,867
120,363
13,428,282
Additions
328,447
328,447
Disposals
(38,000)
(38,000)
At 31 March 2024
9,478,184
3,603,315
554,867
82,363
13,718,729
Depreciation and impairment
At 1 April 2023
1,166,203
2,155,558
192,683
86,182
3,600,626
Depreciation charged in the year
231,739
172,788
27,743
7,277
439,547
Eliminated in respect of disposals
(32,928)
(32,928)
At 31 March 2024
1,397,942
2,328,346
220,426
60,531
4,007,245
Carrying amount
At 31 March 2024
8,080,242
1,274,969
334,441
21,832
9,711,484
At 31 March 2023
8,311,981
1,119,310
362,184
34,181
9,827,656
Company
Freehold land and buildings
Plant and equipment
Solar Farm
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
1,777,394
2,391,411
554,867
120,363
4,844,035
Additions
275,706
275,706
Disposals
(38,000)
(38,000)
At 31 March 2024
1,777,394
2,667,117
554,867
82,363
5,081,741
Depreciation and impairment
At 1 April 2023
704,937
1,816,945
192,683
86,182
2,800,747
Depreciation charged in the year
59,714
104,796
27,743
7,277
199,530
Eliminated in respect of disposals
(32,928)
(32,928)
At 31 March 2024
764,651
1,921,741
220,426
60,531
2,967,349
Carrying amount
At 31 March 2024
1,012,743
745,376
334,441
21,832
2,114,392
At 31 March 2023
1,072,457
574,466
362,184
34,181
2,043,288
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Tangible fixed assets
(Continued)
- 28 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2024
2023
2024
2023
£
£
£
£
Plant and equipment
118,124
118,124
-
Motor vehicles
18,984
14,238
18,984
14,238
137,108
14,238
137,108
14,238
14
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Shobdon Growers Limited
1 Knights Court, Archers Way , Battlefield Enterprise Park, Shrewsbury, SY1 3GA
Ordinary
100.00
Hangar Growers Limited
As above
Ordinary
100.00
Woodgate Growers Limited
As above
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Shobdon Growers Limited
Hangar Growers Limited
19,793
Woodgate Growers Limited
25,075
14,858
15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Poultry stock
1,322,153
785,599
516,957
375,916
Consumables
47,250
37,644
28,890
25,644
1,369,403
823,243
545,847
401,560
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
138,251
52,398
81,982
34,980
Corporation tax recoverable
76,253
55,461
31,820
Amounts owed by group undertakings
-
-
347,136
188,222
Other debtors
203,269
171,479
101,435
72,710
Prepayments and accrued income
73,093
154,446
24,393
60,810
490,866
433,784
554,946
388,542
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
755,803
459,975
255,487
250,148
Obligations under finance leases
20
33,330
6,041
33,330
6,041
Trade creditors
387,685
595,432
129,118
135,977
Corporation tax payable
88
88
Other taxation and social security
10,287
8,509
2,673
2,576
Other creditors
83,111
1,500
53,923
838
Accruals and deferred income
1,491,837
946,200
608,687
448,550
2,762,053
2,017,745
1,083,218
844,218
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
7,973,435
8,329,329
507,703
666,904
Bank overdrafts
133,857
103,779
90,383
90,646
8,107,292
8,433,108
598,086
757,550
Payable within one year
755,803
459,975
255,487
250,148
Payable after one year
7,351,489
7,973,133
342,599
507,402
The long-term loans are secured by fixed charges and floating charges over the land and buildings of all group companies.
The company's assets are also charged to secure the bank overdrafts and loans of the other group undertakings, totalling £7,509,206 (2023: £7,675,558).
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
20
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
33,330
6,041
33,330
6,041
In two to five years
100,155
10,554
100,155
10,554
133,485
16,595
133,485
16,595
Finance lease payments represent rentals payable by the company or group 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. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
7,351,489
7,973,133
342,599
507,402
Obligations under finance leases
20
100,155
10,554
100,155
10,554
7,451,644
7,983,687
442,754
517,956
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,839,083
2,342,706
16,637
44,504
Payable other than by instalments
2,885,150
2,885,150
-
-
4,724,233
5,227,856
16,637
44,504
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
256,663
210,000
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Deferred taxation
(Continued)
- 31 -
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
154,000
154,000
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
210,000
154,000
Charge to profit or loss
46,663
-
Liability at 31 March 2024
256,663
154,000
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
18,909
11,953
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
25
Profit and loss reserves
Group
Company
2024
2023
2024
2023
£
£
£
£
At the beginning of the year
879,155
1,115,037
1,317,516
1,148,039
Profit/(loss) for the year
330,632
(144,882)
308,997
260,477
Dividends
(91,000)
(91,000)
(91,000)
(91,000)
At the end of the year
1,118,787
879,155
1,535,513
1,317,516
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
26
Financial commitments, guarantees and contingent liabilities
At 31 March 2024 there is an unlimited guarantee between the company and all companies within the Chestnut Growers Limited group in respect of the bank loans and overdrafts. The contingent liability of the company in respect of the guarantee as at 31 March 2024 was £7,509,206 (2023 - £7,675,558).
28
Directors' transactions
Dividends totalling £91,000 (2023 - £91,000) were paid in the year in respect of shares held by the company's directors.
29
Cash generated from group operations
2024
2023
£
£
Profit/(loss) after taxation
330,632
(144,882)
Adjustments for:
Taxation credited
(200,299)
(55,487)
Finance costs
399,872
344,066
Investment income
(114)
Gain on disposal of tangible fixed assets
(26,928)
-
Depreciation and impairment of tangible fixed assets
439,547
397,772
Movements in working capital:
Increase in stocks
(546,160)
(760,060)
(Increase)/decrease in debtors
(36,290)
184,520
Increase in creditors
421,279
1,041,448
Cash generated from operations
781,539
1,007,377
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
30
Cash generated from operations - company
2024
2023
£
£
Profit after taxation
308,997
260,477
Adjustments for:
Taxation charged/(credited)
(31,820)
Finance costs
38,196
44,425
Investment income
(88)
Gain on disposal of tangible fixed assets
(26,928)
-
Depreciation and impairment of tangible fixed assets
199,530
164,350
Movements in working capital:
Increase in stocks
(144,287)
(350,377)
(Increase)/decrease in debtors
(198,224)
138,687
Increase in creditors
206,460
432,384
Cash generated from operations
383,656
658,126
Difference
1
(38,496)
Per cash flow statement page
383,657
619,630
31
Analysis of changes in net debt - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
6,004
11,490
17,494
Bank overdrafts
(103,779)
(30,078)
(133,857)
(97,775)
(18,588)
(116,363)
Borrowings excluding overdrafts
(8,329,329)
355,894
(7,973,435)
Obligations under finance leases
(16,595)
(116,890)
(133,485)
(8,443,699)
220,416
(8,223,283)
32
Analysis of changes in net debt - company
1 April 2023
Cash flows
31 March 2024
£
£
£
Bank overdrafts
(90,646)
263
(90,383)
Borrowings excluding overdrafts
(666,904)
159,201
(507,703)
Obligations under finance leases
(16,595)
(116,890)
(133,485)
(774,145)
42,574
(731,571)
CHESTNUT GROWERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
33
Auditor's liability limitation agreement
A resolution was passed dated 15th January 2024 which limits the liability of the auditor to £1m for any loss or damage suffered by Chestnut Growers Limited arising out of or in connection with the provision of the services provided by the auditor.
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