Registration number:
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
for the Year Ended 31 December 2024
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Company Information
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Directors |
W J McArthur S S McArthur |
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Company secretary |
J E McArthur |
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Registered office |
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Auditors |
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McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the group is the design and manufacture of grain handling, storage and processing equipment for its agriculture and industry customers across the UK.
Fair review of the business
The group has continued to successfully design and supply solutions by focusing on providing quality, innovative and effective solutions that are cost effective and meet the needs as agreed with customers.
The group has seen its business follow the contraction in the agricultural market this year resulting in reduction in turnover to £13.2m (2023 - £15.9m). Our view is this is in line if not a better performance that the average across the agri-food sector, where the Inheritance Tax and SFI funding streams when combined with existing industry challenges intensified the barriers to investment for many.
The group’s measures taken in 2023 in terms of expertise investment, efficiency improvements, evolving our customer proposition alongside tight cost control has seen the margin improve to 28.3% (2023 - 25.1%).
This business recognises that the sector will continue to be a challenging market and will continue to drive improved efficiency and operational capability to ensure we remain competitive and offer our customers value- based solutions that deliver for them.
After the balance sheet date, as part of efforts to streamline our operation we have completed a hive up process, whereby all assets and liabilities of BDC Systems Ltd have been acquired by McArthur Agriculture Ltd (t/a McArthur BDC).
Environmental risks and opportunities
The group recognises that it has a responsibility to take all reasonable measures to ensure designers consider the latest and evolving environmental requirements when designing and delivering solutions for customers. As the agriculture sector is at the forefront of the transition to a net zero future, the group recognises this as an opportunity for growth alongside the chance to play a positive role in re-imaging the agricultural supply chain.
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Strategic Report for the Year Ended 31 December 2024
Principal risks and uncertainties
Financial risk management
Risk management is an area where increased resources have been applied during the growth of the group. The Directors monitor this risk through embedded business planning, project control and progress monitoring and control procedures throughout the organization.
An annual risk assessment is undertaken that considers operational and financial risks, with additional analysis of the impact and risks resulting from the cyclical nature of the business.
Legal risk
The group has undertaken a number of significant projects over recent years and has appropriate insurance cover in place that recognises risks that exist in the normal operation of the business. One project has been the subject of an ongoing claim. The group is confident it does not bear liability. We have deemed it prudent make a provision with respect to this claim.
Price risk
In line with industry standards, pricing of parts and equipment are confirmed with suppliers and customers at key points within the sales process with scope and reflect variations in chargeable amounts limiting the exposure to price risk on sales and purchases.
Foreign currency risk
Some imports are traded in foreign currencies, the group where necessary enters forward currency contracts to mitigate this risk.
Liquidity risk
The group utilises a combination of bank and lease purchase debt, along with effective working capital management to ensure sufficient funds are in place to support the current and future needs of the business.
Interest risk
The group has interest bearing liabilities and cash balances that apply interest at a variable rate based on the Bank of England base rate plus a margin.
Operational risk
The group regularly assesses the risk that impacts the business and has a strong commitment to Health and Safety proactively working with employees to ensure every process is developed with “safety ingrained”. This area is a top priority for all managers across the organization including the continual implementation of best practice and improvements.
Through a shared commitment to quality across every aspect of the business, the management team proactively improves controls, processes and regularly undertake risk assessments related to health and safety across all areas of the business.
Customer credit exposure
Standard project phased payment policies ensure this risk is limited on the significant credit levels, whilst ongoing support credit is controlled by strong and on-going customer and industry relationships.
Information security risk
Any disruption to the IT capability of the business would significantly impact on the ability to operate and fulfill customer commitments. The group has a dedicated IT support service harnessing Cloud technology to ensure data is securely stored with cyber security measures in place to restrict the impact of any attempted cyber-attacks.
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Strategic Report for the Year Ended 31 December 2024
Commodity price risk
With an agricultural customer base, the impact on commodity prices can impact the appetite for investment within the marketplace. The impacts that drive these fluctuations are global in nature driven by weather, war harvests and the ever-increasing demand driven by population growth. Price fluctuations are monitored through engagement with customers and the wider sector.
Government tax matters
The group recognises that its core purpose is to operate an effective business that operates on a commercial rationale. The group does not engage in any aggressive tax planning measures and operates in full compliance with all matters regarding rules, regulations disclosures or payments and ensures that it only uses suitably trained employees and external advisors as appropriate to look after its tax affairs.
Non-financial information
Company employees
The group employed an average of 59 (2023 - 63) employees during the year.
The group has stabilized its output operational and design capacity, which along with an increased support function strengthens design function to further enhance our customer offering and the business control department to ensure the continued smooth operation of the business.
The group recognises the need for clear and two-way communication between all employees. This is especially important during periods of change. Employees are kept informed, consulted and proactively encouraged to express their views in areas which will impact their experience as an employee of the company.
It is the policy of the group to consider all applications for employment by less abled persons. Should existing employees encounter changes in circumstances that affect their health the group looks to implement reasonable adjustments where practicable to ensure they can continue their employment.
The development of individuals and teams is a core priority for the group, and so every member of the team is supported personally and professionally to develop them as people and broaden their opportunities for career development.
Approved and authorised by the
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McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Directors' Report for the Year Ended 31 December 2024
The directors present their report and the for the year ended 31 December 2024.
Directors of the group
The directors who held office during the year were as follows:
Dividends
The results for the year are set out on page 10. The directors proposed dividends to be paid of £136,192 (2023 - £136,192)
Information included in the Strategic Report
Information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Report) Regulations 2008 has been included in the Strategic Report.
Financial instruments
Objectives and policies
The Group uses basic financial instruments, comprising cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations.
Price risk, credit risk, liquidity risk and cash flow risk
The Group's principal financial instruments comprise of bank balances and loan agreements, trade debtors and trade creditors.
The liquidity risk is managed by maintaining a balance between the need for continuity of funding and flexibility through the use of loan facilities. All business cash balances are held in such a way that achieves a competitive rate of interest.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to business customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the consolidated balance sheet are net of allowances for trade debtors.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Future developments
The Directors anticipate that demand for agricultural processing equipment in the UK will continue to grow and that the group is well placed to seize opportunities for growth and deliver enhanced profitability in the future.
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Directors' Report for the Year Ended 31 December 2024
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
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McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Independent Auditor's Report to the Members of McArthur Agriculture (t/a McArthur BDC) Ltd
Opinion
We have audited the financial statements of McArthur Agriculture (t/a McArthur BDC) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024, which comprise the Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of 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 December 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. |
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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Independent Auditor's Report to the Members of McArthur Agriculture (t/a McArthur BDC) Ltd
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where 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. |
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we have not received all the information and explnations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 7], 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.
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Independent Auditor's Report to the Members of McArthur Agriculture (t/a McArthur BDC) Ltd
Auditor Responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Discussions with management, including consideration of known or suspected instances of non-compliance held. |
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Challenging assumptions and judgements made within significant accounting estimates and judgements. |
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Identification of laws and regulations relevant to the operations and review of compliance with such laws. |
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Testing of journal entries and other potential areas of management override of the systems. |
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 misstatment 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 occuring 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: 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.
......................................
For and on behalf of
Kingfisher Court
Plaxton Bridge Road
Woodmansey
East Yorkshire
HU17 0RT
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Consolidated Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Turnover |
|
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Cost of sales |
( |
( |
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Gross profit |
|
|
|
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Administrative expenses |
( |
( |
|
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Exceptional expense |
(300,000) |
- |
|
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Other operating income |
|
|
|
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Operating profit |
|
|
|
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Other interest receivable and similar income |
|
|
|
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Interest payable and similar expenses |
( |
( |
|
|
23,206 |
(35,176) |
||
|
Profit before tax |
|
|
|
|
Tax on profit |
( |
( |
|
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Profit for the financial year |
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Profit/(loss) attributable to: |
|||
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Owners of the company |
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McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
(Registration number: 03877827)
Consolidated Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 |
|
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Fixed assets |
|||
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Intangible assets |
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Tangible assets |
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|
|
|
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||
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Current assets |
|||
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Stocks |
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Debtors |
|
|
|
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Cash at bank and in hand |
|
|
|
|
|
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
|
|
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Total assets less current liabilities |
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|
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|
Creditors: Amounts falling due after more than one year |
( |
( |
|
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Provisions for liabilities |
( |
( |
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Net assets |
|
|
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Capital and reserves |
|||
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Called up share capital |
100 |
100 |
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Retained earnings |
1,998,514 |
2,103,326 |
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Equity attributable to owners of the company |
1,998,614 |
2,103,426 |
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Shareholders' funds |
1,998,614 |
2,103,426 |
Approved and authorised by the
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McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
(Registration number: 03877827)
Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
|||
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Tangible assets |
|
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Investments |
- |
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Current assets |
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Stocks |
975,744 |
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Debtors |
|
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Cash at bank and in hand |
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|
|
|
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets/(liabilities) |
|
( |
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Total assets less current liabilities |
|
|
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
|
|
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Capital and reserves |
|||
|
Called up share capital |
100 |
100 |
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Retained earnings |
1,453,536 |
2,064,460 |
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Shareholders' funds |
1,453,636 |
2,064,560 |
As pemitted under section 408 of the Companies Act 2006, no separate company Profit and Loss Account and related notes has been prepared. The company made a loss after tax for the financial year of £474,732 (2023 - profit of £556,007).
Approved and authorised by the
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McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2024
Equity attributable to the parent company
|
Share capital |
Retained earnings |
Total |
Total equity |
|
|
At 1 January 2024 |
|
|
|
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Profit for the year |
- |
|
|
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Dividends |
- |
( |
( |
( |
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At 31 December 2024 |
|
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|
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Share capital |
Retained earnings |
Total |
Total equity |
|
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At 1 January 2023 |
|
|
|
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Profit for the year |
- |
|
|
|
|
Dividends |
- |
( |
( |
( |
|
At 31 December 2023 |
100 |
2,103,326 |
2,103,426 |
2,103,426 |
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Statement of Changes in Equity for the Year Ended 31 December 2024
|
Share capital |
Retained earnings |
Total |
|
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At 1 January 2024 |
|
|
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Loss for the year |
- |
( |
( |
|
Dividends |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Share capital |
Retained earnings |
Total |
|
|
At 1 January 2023 |
|
|
|
|
Profit for the year |
- |
|
|
|
Dividends |
- |
( |
( |
|
At 31 December 2023 |
100 |
2,064,460 |
2,064,560 |
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Consolidated Statement of Cash Flows for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
|
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Cash flows from operating activities |
|||
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Profit for the year |
|
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Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
(Profit)/loss on disposal of tangible assets |
( |
|
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Income tax expense |
|
118,038 |
|
|
|
|
||
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Working capital adjustments |
|||
|
Decrease in stocks |
|
|
|
|
Decrease in trade debtors |
|
|
|
|
Decrease in trade creditors |
( |
( |
|
|
Cash generated from operations |
|
|
|
|
Income taxes received/(paid) |
|
( |
|
|
Net cash flow from operating activities |
|
( |
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Net cash flows from investing activities |
|
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Repayment of other borrowing |
( |
( |
|
|
Payments to finance lease creditors |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
|
Cash and cash equivalents at 1 January |
|
|
|
|
Cash and cash equivalents at 31 December |
1,436,223 |
1,650,537 |
|
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital incorporated in England and the company registration number is 03877827.
The company was formerly known as McArthur Agriculture Ltd.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Summary of disclosure exemptions
The Parent Company has taken advantage of the reduced disclosure exemption from preparing a cash flow statement as described in section 1.12 of FRS 102.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements cover a group of entities, made of of McArthur Agriculture Ltd and B D C Systems Limited.
The financial statements are presented in sterling which is the functional currency of the Group and are rounded to the nearest pound.
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2024.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Key sources of estimation uncertainty
The directors make estimates and assumptions about the future. These estimates and assumptions impact recognised assets and liabilities, as well as revenue and expenses and other disclosures. Estimates are based on historical experience and on various assumptions considered reasonable under prevailing conditions. The actual outcome may diverge from these estimates if other assumptions are made, or other condition s arise. The estimates and assumptions that may have a significant effect on the amounts of assets and liabilities within each financial year include:
Useful economic lives of intangible and tangible fixed assets:
Intangible and tangible fixed assets are recognised at cost less accumulated depreciation, amortisation and any impairment. Depreciation and amortisation write down the value of an asset to its assessed residual value over the estimated useful lives of assets. The carrying amount of fixed assets is tested as soon as changed conditions show that a need for impairment has arisen.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the Group.
The Group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the Group's activities.
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using rates and allowances that apply to the sale of the asset.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
|
Furniture, fittings and equipment |
10%, 20% and 33% straight line |
|
Motor vehicles |
10% straight line |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
10 years straight line |
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised at the transaction price, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised at the transaction price.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of income and retained earnings over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the Group's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Government grants |
|
|
|
Miscellaneous other operating income |
|
|
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
Write-down of stocks to net realisable value |
( |
|
|
Operating lease expense - property |
|
|
|
Operating lease expense - plant and machinery |
|
- |
|
(Profit)/loss on disposal of property, plant and equipment |
( |
|
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
|
|
|
Other finance income |
|
- |
|
|
|
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
Interest expense on other finance liabilities |
|
- |
|
Foreign exchange losses |
( |
( |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Other short-term employee benefits |
|
|
|
Pension costs, defined contribution scheme |
135,886 |
|
|
Other employee expense |
- |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Production |
|
|
|
Administration and support |
|
|
|
|
|
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
108,783 |
159,239 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of these financial statements |
10,750 |
9,650 |
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
|
|
Tax expense in the income statement |
|
|
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Tax decrease from effect of capital allowances and depreciation |
- |
( |
|
Decrease from effect of different UK tax rates on some earnings |
( |
- |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Deferred tax expense relating to changes in tax rates or laws |
- |
|
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
|
2024 |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
|
|
|
|
2023 |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
|
|
|
The amount of the net reversal of deferred tax liabilities expected to occur during the year beginning after the reporting period is £
Company
Deferred tax assets and liabilities
|
2024 |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
|
|
|
|
2023 |
Liability |
|
Difference between accumulated depreciation and amortisation and capital allowances |
|
|
|
The amount of the net reversal of deferred tax liabilities expected to occur during the year beginning after the reporting period is £
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Intangible assets |
Group
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 January 2024 |
|
|
|
At 31 December 2024 |
|
|
|
Amortisation |
||
|
At 1 January 2024 |
|
|
|
Amortisation charge |
|
|
|
At 31 December 2024 |
|
|
|
Carrying amount |
||
|
At 31 December 2024 |
|
|
|
At 31 December 2023 |
|
|
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Tangible assets |
Group
|
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||
|
At 1 January 2024 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Depreciation |
|||
|
At 1 January 2024 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Carrying amount |
|||
|
At 31 December 2024 |
|
|
|
|
At 31 December 2023 |
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2024 |
2023 |
|
|
Motor vehicles |
154,304 |
295,727 |
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
Company
|
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
|||
|
At 1 January 2024 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Depreciation |
|||
|
At 1 January 2024 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
|
At 31 December 2024 |
|
|
|
|
Carrying amount |
|||
|
At 31 December 2024 |
|
|
|
|
At 31 December 2023 |
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2024 |
2023 |
|
|
Motor vehicles |
154,304 |
198,556 |
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Investments |
Company
|
2024 |
2023 |
|
|
Investments in subsidiaries |
- |
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 January 2024 |
|
|
Provision |
|
|
Provision |
|
|
Carrying amount |
|
|
At 31 December 2024 |
- |
|
At 31 December 2023 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2024 |
2023 |
|||
|
Subsidiary undertakings |
||||
|
|
Grafton Road, Burbage, Marlborough, Wiltshire, SN8 3BA England |
|
|
|
|
Stocks |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Work in progress |
|
|
|
|
|
Finished goods and goods for resale |
|
|
|
|
|
|
|
|
|
|
Stocks are stated after provisions for impairment of £17,249 (2023 - £43,969).
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Debtors |
|
Group |
Company |
||||
|
Current |
Note |
2024 |
2023 |
2024 |
2023 |
|
Trade debtors |
|
|
|
|
|
|
Amounts owed by related parties |
- |
- |
|
- |
|
|
Other debtors |
|
|
|
|
|
|
Prepayments |
|
|
|
|
|
|
Income tax asset |
- |
|
- |
- |
|
|
|
|
|
|
||
Trade debtors are stated after provisions for impairment of £71,278 (2023 - £63,603).
|
Cash and cash equivalents |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Cash on hand |
|
|
|
|
|
Cash at bank |
|
|
|
|
|
|
|
|
|
|
|
Creditors |
|
Group |
Company |
||||
|
Note |
2024 |
2023 |
2024 |
2023 |
|
|
Due within one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Trade creditors |
|
|
|
|
|
|
Amounts due to related parties |
- |
- |
- |
|
|
|
Social security and other taxes |
|
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
|
Other payables |
|
|
|
|
|
|
Accruals |
|
|
|
|
|
|
Income tax liability |
67,283 |
59,463 |
44,165 |
59,463 |
|
|
Gross amount due to customers for contract work |
|
|
|
|
|
|
|
|
|
|
||
|
Due after one year |
|||||
|
Loans and borrowings |
|
|
|
|
|
|
Provisions for liabilities |
Group
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase / (decrease) in existing provisions |
( |
( |
|
At 31 December 2024 |
|
|
|
|
||
Company
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Increase / (decrease) in existing provisions |
|
|
|
At 31 December 2024 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
20 |
|
20 |
|
|
|
20 |
|
20 |
|
|
|
30 |
|
30 |
|
|
|
30 |
|
30 |
|
|
|
|
|
|
Rights, preferences and restrictions
|
Ordinary shares have the following rights, preferences and restrictions: |
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Reserves |
Group
Share capital
Share capital comprises of the value of issued share capital at par in the parent company.
Retained earnings
The retained earnings consists of profits made by the group attributable to the shareholders of the parent company.
Company
Share capital
Share capital comprises of the value of issued share capital at par.
Retained earnings
The retained earnings consists of profits made by the company attributable to the shareholders.
|
Loans and borrowings |
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Non-current loans and borrowings |
||||
|
Bank borrowings |
150,000 |
250,000 |
150,000 |
250,000 |
|
Hire purchase contracts |
38,153 |
72,953 |
38,153 |
28,649 |
|
188,153 |
322,953 |
188,153 |
278,649 |
|
|
Group |
Company |
|||
|
2024 |
2023 |
2024 |
2023 |
|
|
Current loans and borrowings |
||||
|
Bank borrowings |
100,000 |
100,000 |
100,000 |
100,000 |
|
Hire purchase contracts |
50,011 |
108,159 |
50,011 |
68,426 |
|
Other borrowings |
- |
722,023 |
- |
721,817 |
|
150,011 |
930,182 |
150,011 |
890,243 |
|
Group
Bank borrowings
|
Bank borrowings are secured by fixed and floating charges over company assets with a cross guarantee and debenture between the company and its subsidiary undertaking. |
Secured creditors
Hire purchase contracts are secured against the assets to which they relate.
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
Company
Bank borrowings
|
Bank borrowings are secured by fixed and floating charges over company assets with a cross guarantee and debenture between the company and its subsidiary undertaking. |
Secured creditors
Hire purchase contracts are secured against the assets to which they relate.
|
Obligations under leases and hire purchase contracts |
Group
Hire purchase contracts
The total of future minimum payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
- |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
Company
Hire purchase contracts
The total of future minimum payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
- |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
|
Commitments |
Group
Capital commitments
The total amount contracted for but not provided in the financial statements was £Nil (2023 - £
Company
Capital commitments
The total amount contracted for but not provided in the financial statements was £Nil (2023 - £
McArthur Agriculture (t/a McArthur BDC) Ltd
(formerly
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Analysis of changes in net debt |
Group
|
At 1 January 2024 |
Cash flows |
New hire purchase contracts |
Other non-cash changes |
At 31 December 2024 |
|
|
Cash and cash equivalents |
|||||
|
Cash |
1,650,537 |
(214,150) |
- |
- |
1,436,387 |
|
Borrowings |
|||||
|
Long term borrowings |
(250,000) |
- |
- |
100,000 |
(150,000) |
|
Short term borrowings |
(822,023) |
822,023 |
- |
(100,000) |
(100,000) |
|
Hire purchase contracts |
(181,112) |
148,441 |
(55,493) |
- |
(88,164) |
|
(1,253,135) |
970,464 |
(55,493) |
- |
(338,164) |
|
|
|
|||||
|
|
|
( |
- |
|
|
|
Related party transactions |
Group
Key management compensation
|
2024 |
2023 |
|
|
Salaries and other short term employee benefits |
|
|
|
Other transactions with directors |
The directors have provided a limited guarantee in respect of the loans.
|
Parent and ultimate parent undertaking |
The ultimate controlling party is