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REGISTERED NUMBER: 02226704 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024

FOR

PARKHAM FARMS LTD

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 15


PARKHAM FARMS LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 30 NOVEMBER 2024







DIRECTORS: P A Willes
Mrs S J Berry
Mrs E L Beer



SECRETARY: P A Willes



REGISTERED OFFICE: St. John's House
Castle Street
Taunton
Somerset
TA1 4AY



REGISTERED NUMBER: 02226704 (England and Wales)



AUDITORS: MITCHELLS
Chartered Accountants and Statutory Auditors
St. John's House
Castle Street
TAUNTON
Somerset
TA1 4AY



BANKERS: Lloyds Bank plc
5, High Street
BIDEFORD
Devon

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2024

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

REVIEW OF BUSINESS
The company has continued to achieve good results in a competitive market place. During the period under review the UK has seen a reduction in inflation, however, food prices have remained high. As a result the company has maintained a similar level of turnover and operating profits.

Year ended 30 November 2024 30 November 2023

Turnover (£) 55,351,010 55,362,962

Turnover growth (%) (0.02) (0.40)

Gross profit margin (%) 10.1 10.1

Profit before tax (£) 1,511,560 1,275,575


At the end of the year, the net assets totalled £20,965,819 (2023 £19,698,660)

Given the straightforward nature of the business, the company's directors are of the opinion that any further analysis using key performance indicators [KPI's] is not necessary for an understanding of the development, performance or position of the business.

PRINCIPAL RISKS AND UNCERTAINTIES
The company has a good track record for quality produce. The trading performance of the company could, however, be affected if there were to be any significant problems with the quality of cheese stocks either due to production or storage issues. This is no different a position to any other manufacturer in this industry and neither of these factors have increased in likelihood. There are no other risks of sufficient importance to mention in this report. The company's directors are confident that the business will continue to adapt to changing business circumstances.

SECTION 172(1) STATEMENT
The company has a number of stakeholders, including employees; farmers; suppliers; customers; the local community; and its shareholders. The directors recognize the fundamental importance of each of these groups to the company and maintain ongoing dialogues with each on matters relevant to them.

During the period, the company's directors acted in a way that they considered, in good faith, would most likely promote the success of the company for the benefit of its members as a whole and, in doing so, have had regards to the matters set out in section 172(1)(a)-(f) of the Companies Act 2006 when making decisions. In addition, the company's directors also had regard to other factors and matters that they considered relevant to decisions made. When required, the company's directors held board meetings to make key decisions relating to the company, where such matters and factors were considered, as relevant.

ON BEHALF OF THE BOARD:





P A Willes - Secretary


28 August 2025

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 NOVEMBER 2024

The directors present their report with the financial statements of the company for the year ended 30 November 2024.

PRINCIPAL ACTIVITIES
The principal activities of the company in the year under review were those of manufacturing and selling cheese and marketing surplus milk.

DIVIDENDS
No dividends will be distributed for the year ended 30 November 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 December 2023 to the date of this report.

P A Willes
Mrs S J Berry
Mrs E L Beer

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
The directors engage with the members of their milk field who produce the milk which is the primary cost to the company, including holding producer meetings when necessary.

The directors engage directly with their customers at all levels.

DISCLOSURE IN THE STRATEGIC REPORT
The Strategic Report on page 2 sets out a fair review of the business and a description of the principal risks and uncertainties facing the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable 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 company will continue in business.

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

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 NOVEMBER 2024


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:



P A Willes - Secretary


28 August 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PARKHAM FARMS LTD

Opinion
We have audited the financial statements of Parkham Farms Ltd (the 'company') for the year ended 30 November 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 30 November 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PARKHAM FARMS LTD


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

- Enquiry of management and those charged with governance around actual and potential litigation and claims.
- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with
applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments
for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of
business.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities. It is the primary responsibility of management and those charged with governance to ensure that the entity's operations are conducted in accordance with the provisions of the laws and regulations and for the prevention and detection of fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
PARKHAM FARMS LTD


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 a Report of the Auditors 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.




David Mitchell FCA (Senior Statutory Auditor)
for and on behalf of MITCHELLS
Chartered Accountants and Statutory Auditors
St. John's House
Castle Street
TAUNTON
Somerset
TA1 4AY

28 August 2025

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2024

30.11.24 30.11.23
Notes £    £    £    £   

TURNOVER 3 55,351,010 55,362,962

Cost of sales 49,745,741 49,791,581
GROSS PROFIT 5,605,269 5,571,381

Distribution costs 400,891 380,352
Administrative expenses 4,534,376 4,108,593
4,935,267 4,488,945
670,002 1,082,436

Other operating income 4 573,006 197,559
OPERATING PROFIT 7 1,243,008 1,279,995

Interest receivable and similar income 8 315,201 53,605
1,558,209 1,333,600

Interest payable and similar expenses 9 46,649 58,025
PROFIT BEFORE TAXATION 1,511,560 1,275,575

Tax on profit 10 244,401 101,251
PROFIT FOR THE FINANCIAL YEAR 1,267,159 1,174,324

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,267,159

1,174,324

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

BALANCE SHEET
30 NOVEMBER 2024

30.11.24 30.11.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 2,180,129 2,884,393

CURRENT ASSETS
Stocks 12 14,362,325 15,507,226
Debtors 13 9,440,260 3,574,373
Cash at bank and in hand 2,500,669 5,720,054
26,303,254 24,801,653
CREDITORS
Amounts falling due within one year 14 7,060,002 7,352,803
NET CURRENT ASSETS 19,243,252 17,448,850
TOTAL ASSETS LESS CURRENT
LIABILITIES

21,423,381

20,333,243

PROVISIONS FOR LIABILITIES 17 457,562 634,583
NET ASSETS 20,965,819 19,698,660

CAPITAL AND RESERVES
Called up share capital 18 100,001 100,001
Share premium 19 4 4
Fair value reserve 19 22,610 22,610
Retained earnings 19 20,843,204 19,576,045
SHAREHOLDERS' FUNDS 20,965,819 19,698,660

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

BALANCE SHEET - continued
30 NOVEMBER 2024



The financial statements were approved by the Board of Directors and authorised for issue on 28 August 2025 and were signed on its behalf by:





P A Willes - Director


PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2024

Called up Fair
share Retained Share value Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 December 2022 100,001 18,401,721 4 22,610 18,524,336

Changes in equity
Total comprehensive income - 1,174,324 - - 1,174,324
Balance at 30 November 2023 100,001 19,576,045 4 22,610 19,698,660

Changes in equity
Total comprehensive income - 1,267,159 - - 1,267,159
Balance at 30 November 2024 100,001 20,843,204 4 22,610 20,965,819

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2024

30.11.24 30.11.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,769,427 1,989,910
Interest paid (49,333 ) (15,729 )
Tax paid 97,533 (998,285 )
Net cash from operating activities 2,817,627 975,896

Cash flows from investing activities
Purchase of tangible fixed assets (221,621 ) (1,873,463 )
Sale of tangible fixed assets - 14,000
Loans made in year (4,442,448 ) -
Loan repayments in year - 1,245,818
Interest received 354,018 36,755
Net cash from investing activities (4,310,051 ) (576,890 )

Cash flows from financing activities
New loans in year - 1,754,228
Loan repayments in year (1,705,923 ) -
Net cash from financing activities (1,705,923 ) 1,754,228

(Decrease)/increase in cash and cash equivalents (3,198,347 ) 2,153,234
Cash and cash equivalents at beginning of
year

2

5,665,577

3,512,343

Cash and cash equivalents at end of year 2 2,467,230 5,665,577

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

30.11.24 30.11.23
£    £   
Profit before taxation 1,511,560 1,275,575
Depreciation charges 925,885 1,266,380
Profit on disposal of fixed assets - (12,451 )
Finance costs 46,649 58,025
Finance income (315,201 ) (53,605 )
2,168,893 2,533,924
Decrease in stocks 1,144,901 1,813,506
(Increase)/decrease in trade and other debtors (1,707,289 ) 2,401,971
Increase/(decrease) in trade and other creditors 1,162,922 (4,759,491 )
Cash generated from operations 2,769,427 1,989,910

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 November 2024
30.11.24 1.12.23
£    £   
Cash and cash equivalents 2,500,669 5,720,054
Bank overdrafts (33,439 ) (54,477 )
2,467,230 5,665,577
Year ended 30 November 2023
30.11.23 1.12.22
£    £   
Cash and cash equivalents 5,720,054 3,648,276
Bank overdrafts (54,477 ) (135,933 )
5,665,577 3,512,343


PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2024

3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.12.23 Cash flow At 30.11.24
£    £    £   
Net cash
Cash at bank and in hand 5,720,054 (3,219,385 ) 2,500,669
Bank overdrafts (54,477 ) 21,038 (33,439 )
5,665,577 (3,198,347 ) 2,467,230
Debt
Debts falling due within 1 year (1,754,228 ) 1,705,923 (48,305 )
(1,754,228 ) 1,705,923 (48,305 )
Total 3,911,349 (1,492,424 ) 2,418,925

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024

1. STATUTORY INFORMATION

Parkham Farms Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Tangible fixed assets are initially recorded at cost.

Depreciation is calculated in order to write down the cost of fixed assets over their expected useful lives.

The rates applied to the fixed assets are as follows:

Property Improvements5% Straight Line
Plant and Machinery owned and acquired on hire purchase33% Reducing Balance
Leased Equipment10% Straight Line

No depreciation is charged on the freehold property. There is a residential property which was transferred from investment property on 1 December 2021 at its fair value representing deemed cost. This property is not depreciated because the directors consider that, as with the majority of such assets that value is likely to increase over time to the extent that residual value will be at least this fair value. The remainder of the freehold property represents 4.573 Acres of land only. The cost of the buildings sited on this land are included in other categories of fixed assets and are depreciated accordingly.

Stocks
Cheese stocks on hand are stated at the cost of raw materials plus manufacturing costs less provisions where it is anticipated these costs will not be recoverable. Other stocks on hand are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price less all further costs to completion and all costs to be incurred on disposal.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2024

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Government grants
The government grants historically related to expenditure on fixed assets but for the current year relate to Covid business rates relief and cost of living support payments. The company's policy is to treat capital grants as deferred income and they are then credited to the profit and loss account over the expected useful life of the asset. The basis of calculating the amounts to be credited to the profit and loss account is consistent with the depreciation policy applied to the asset. Revenue grants are treated as income and are credited to the profit and loss account as they are received.

3. TURNOVER

The turnover and profit before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

30.11.24 30.11.23
£    £   
Sale of goods 55,351,010 55,358,124
Grants and subsidies - 4,838
55,351,010 55,362,962

4. OTHER OPERATING INCOME
30.11.24 30.11.23
£    £   
Rents Received 474,385 99,660
Contracting and Work Done 95,512 95,576
Wayleaves 496 488
Government grants - 835
Exchange gains 2,613 1,000
573,006 197,559

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2024

5. EMPLOYEES AND DIRECTORS
30.11.24 30.11.23
£    £   
Wages and salaries 897,740 868,713
Social security costs 284,696 265,629
Other pension costs 122,349 187,328
1,304,785 1,321,670

The average number of employees during the year was as follows:
30.11.24 30.11.23

Directors 3 3
Production, storage and handling 27 30
Milk collection lorry drivers 6 5
Administration 3 3
39 41

6. DIRECTORS' EMOLUMENTS

30.11.24 30.11.23
£ £
Directors' remuneration 28,874 27,134
Directors' pension contributions to money purchase schemes 102,434 168,865


The number of directors to whom retirement benefits were accruing was as
follows:


Money purchase schemes 3 3


7. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.11.24 30.11.23
£    £   
Hire of plant and machinery on
operating leases 1,240 1,548
Depreciation - owned assets 925,885 1,266,380
Profit on disposal of fixed assets - (12,451 )
Auditors' remuneration 6,215 6,015
Foreign exchange differences (2,613 ) (1,000 )
Hire of plant and machinery 47,029 59,205
Accountancy and tax services provided by Auditors Firm 40,612 40,924
Professional services provided by Auditors Firm 139 22,008

8. INTEREST RECEIVABLE AND SIMILAR INCOME
30.11.24 30.11.23
£    £   
Interest received gross 315,201 53,605

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2024

9. INTEREST PAYABLE AND SIMILAR EXPENSES
30.11.24 30.11.23
£    £   
Bank interest 7,037 15,729
Loan Interest 39,612 42,296
46,649 58,025

10. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
30.11.24 30.11.23
£    £   
Current tax:
UK corporation tax 421,422 (97,533 )

Deferred tax (177,021 ) 198,784
Tax on profit 244,401 101,251

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30.11.24 30.11.23
£    £   
Profit before tax 1,511,560 1,275,575
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 23.010%)

377,890

293,510

Effects of:
Expenses not deductible for tax purposes 15,851 300
Income not taxable for tax purposes - (30,400 )
Capital allowances in excess of depreciation - (115,910 )
Depreciation in excess of capital allowances 167,345 -
Utilisation of tax losses (139,664 ) -
Adjustments to tax charge in respect of previous periods - (245,033 )
Deferred tax movement re capital allowances (164,562 ) 162,492
Deferred tax movement re freehold property - 1,675
investment property
Deferred tax movement re stock valuation adjustments (12,459 ) 34,617
Total tax charge 244,401 101,251

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2024

11. TANGIBLE FIXED ASSETS
Improvements
Freehold to Plant and
property property machinery Totals
£    £    £    £   
COST OR VALUATION
At 1 December 2023 255,556 522,226 11,071,908 11,849,690
Additions - - 221,621 221,621
At 30 November 2024 255,556 522,226 11,293,529 12,071,311
DEPRECIATION
At 1 December 2023 - 435,417 8,529,880 8,965,297
Charge for year - 13,783 912,102 925,885
At 30 November 2024 - 449,200 9,441,982 9,891,182
NET BOOK VALUE
At 30 November 2024 255,556 73,026 1,851,547 2,180,129
At 30 November 2023 255,556 86,809 2,542,028 2,884,393

Freehold property includes 4.573 Acres of land on which no depreciation has been charged. The buildings erected on this land are included within improvements to property and the cold stores that stand on this land are included within plant and equipment. The buildings and plant are all being depreciated within those separate categories of fixed assets.

The remainder represents a former investment property included at its fair value as determined at 30 November 2021 when it was transferred to freehold property. The directors do not consider that the residual value of this property is likely to be lower than this value so no depreciation is provided.

The bank has a first legal charge over the freehold property.

Cost or valuation at 30 November 2024 is represented by:

Improvements
Freehold to Plant and
property property machinery Totals
£    £    £    £   
Valuation in 2019 (7,086 ) - - (7,086 )
Valuation in 2021 35,000 - - 35,000
Cost 227,642 522,226 11,293,529 12,043,397
255,556 522,226 11,293,529 12,071,311

12. STOCKS
30.11.24 30.11.23
£    £   
Cheese, Butter and Cream 14,045,168 15,133,008
Raw Materials and Sundry Stock 317,157 374,218
14,362,325 15,507,226

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2024

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.11.24 30.11.23
£    £   
Trade debtors 4,707,376 3,097,173
Other debtors 233,831 142,838
Beckland Dairy Loan 4,442,448 -
Tax - 245,033
Prepayments and accrued income 56,605 89,329
9,440,260 3,574,373

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30.11.24 30.11.23
£    £   
Bank loans and overdrafts (see note 15) 33,439 54,477
Other loans (see note 15) 48,305 1,754,228
Trade creditors 6,376,686 5,134,729
Tax 421,422 147,500
Social security and other taxes 12,556 11,820
Other creditors 81,341 80,073
Amounts owed to Willes
Farming Limited 4,168 2,685
Amounts owed to Beckland Dairy - 57,704
Accrued expenses 82,085 109,587
7,060,002 7,352,803

15. LOANS

An analysis of the maturity of loans is given below:

30.11.24 30.11.23
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 33,439 54,477
Willes Farming Ltd Loan 48,305 1,754,228
81,744 1,808,705

16. SECURED DEBTS

The following secured debts are included within creditors:

30.11.24 30.11.23
£    £   
Bank overdrafts 33,439 54,477

Bank overdrafts are secured by an unlimited debenture over the company's assets dated 18.8.1989 including the right of set-off, an unlimited guarantee dated 17.12.2001 and a first legal charge over the freehold property known as Cheese Plant, Higher Alminstone Farm, Woolfardisworthy, Devon dated 22.5.2003.

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2024

17. PROVISIONS FOR LIABILITIES
30.11.24 30.11.23
£    £   
Deferred tax
Freehold property 6,979 6,979
Accelerated/(decelerated) capital allowances
re plant & equipment

424,970

589,267
Stock valuation adjustment 27,167 39,626
Accelerated capital allowances re industrial
buildings

(1,554

)

(1,289

)
457,562 634,583

Deferred
tax
£   
Balance at 1 December 2023 634,583
Credit to Statement of Comprehensive Income during year (177,021 )
Balance at 30 November 2024 457,562

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.11.24 30.11.23
value: £    £   
100,001 Ordinary £1 100,001 100,001

The ordinary shares carry full rights to vote, to participate in dividends and on a winding up of the company.

19. RESERVES
Fair
Retained Share value
earnings premium reserve Totals
£    £    £    £   

At 1 December 2023 19,576,045 4 22,610 19,598,659
Profit for the year 1,267,159 - - 1,267,159
At 30 November 2024 20,843,204 4 22,610 20,865,818

20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

P. A. Willes is a director and the controlling shareholder of Willes Farming Ltd. He also owns the farms in Wales which the company occupies rent free and is the proprietor of the business known as Beckland Dairy. The company has been involved in several arms length transactions with the director and these businesses as summarised in the related party disclosures note.

As highlighted in the secured debts note, P. A. Willes has given an unlimited guarantee to the bank dated 17.12.2001. The bank have granted an overall overdraft facility to Mr Willes' businesses: Parkham Farms Ltd; Willes Farming Ltd and Beckland Dairy with a limit of £3m. A guarantee for this amount has been given by Parkham Farms Ltd.

PARKHAM FARMS LTD (REGISTERED NUMBER: 02226704)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 NOVEMBER 2024

21. RELATED PARTY DISCLOSURES

Key management personnel compensation is disclosed in Note 6 on page 17.

Other related parties
30.11.24 30.11.23
£    £   
Sales 485,201 109,913
Purchases (21,471,893 ) (16,279,882 )
Interest 189,207 (3,139 )
Amount due from related party 1,193,992 -
Amount due to related party - (3,930,474 )

22. ULTIMATE CONTROLLING PARTY

The controlling party is P A Willes.