REGISTERED NUMBER: 00570931 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

MARK H POSKITT LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

8

Statement of Income and Retained Earnings

12

Balance Sheet

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

17

DIRECTORS:

S G Poskitt

B T Poskitt

SECRETARY:

S G Poskitt

REGISTERED OFFICE:

The Firs

Whales Lane

Kellington

Goole

East Yorkshire

DN14 0SB

REGISTERED NUMBER:

00570931 (England and Wales)

INDEPENDENT AUDITORS:

Lloyd Dowson Audit Limited

Chartered Accountants

& Statutory Auditors

Medina House

2 Station Avenue

Bridlington

East Yorkshire

YO16 4LZ

The directors present their strategic report for the year ended 31 December 2024.

The company operates principally as a grower of vegetables and other crops, and has extensive processing and packing facilities to produce attractive produce for customers.

Turnover, and ultimately profits, are generated from commercial contracts with food retailers and wholesalers. Volumes and prices are agreed in advance and remain within contracted terms throughout the contract period. Contracts are negotiated with customers before each growing season and are only entered into where management are confident there is a reasonable expectation that they will generate sufficient profit. Surplus production over and above contracted volumes are traded on the open market.

REVIEW OF BUSINESS

The results for the year and financial position of the company are as shown in the annexed financial statements.

The company's key measurements of financial performance are turnover and net profit percentages. Management continually review operating margins and overall profitability. For the year ended 31 December 2024, the company generated turnover of £36.0m (2023: £35.8 m) - an increase of 0.7%.

The company reports a net profit before tax of £270,173 (0.7% of turnover) compared to a net profit before tax in 2023 of £181,550 (0.5% of turnover).

The company remains in a strong financial position with net assets of £20,040,715 (2023: £19,874,391).

PRINCIPAL RISKS AND UNCERTAINTIES

Management seeks to mitigate key uncertainties in the retail and food service markets by:

- striving to maintain high quality standards to engender loyalty across our customer base;

- continually working towards more efficient production so that products are competitively priced;

- developing new markets for existing products;

- investing in new product development for both existing and new markets.

Management intend to continue to focus the business on servicing the more profitable customer contracts, and moving away from identified less profitable contracts.

Management are concerned about government agricultural policy and the apparent lack of government support for the agricultural industry as a whole. The other major risk factor the company has faced is the changing weather conditions in recent years which is providing challenges and uncertainty for crop growers, increasing the risk of poor performance of crop growth. Farmers are looking to government environmental schemes to earn income as a result of these risks. This is leading to a reduced availability of land for rent which means that it is becoming more difficult for crop rotation requirements to be met.

SECTION 172 (1) STATEMENT

The board of directors consider that they have at all times acted in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole (having regard to the stakeholders and matters set out in Section 172 (1) (a-f) of the Companies Act 2006) when performing their duty as directors during the year.

The company's purpose and strategy have focused on the strive for perfection and this has helped ensure that the company has grown its customer base and developed and strengthened the company's position as one of the leading root vegetable producers in the country.

The company's employees are fundamental to the delivery of our strategy. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in the way we do business.

Our plan considered the impact of the company's operations on the environment and our wider social responsibilities, and how we impact on our local community.

As a board of directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours, and in doing so, will contribute to the delivery of our plan. The intention is to nurture our reputation, through both the development and delivery of our strategy that reflects our responsible behaviour.

As a board of directors, our intention is to behave responsibly towards our shareholders and treat them fairly and equally, so they may benefit from the successful delivery of our strategy.

FUTURE DEVELOPMENTS

The company has endured a slow start to 2025, due to a drop in demand for carrots and parsnips from some of the companies customers, and also due to the extremely dry weather conditions.

The company's management continues to work hard to make efficiency improvements in all departments to control costs and intend to eliminate less profitable contracts which will ease pressures created by the lack of staff availability.

Despite the above issues, the directors are confident in the financial strength of the company, given the reserves accumulated in earlier years, and are confident they can comfortably manage cash flow requirements through the next year.

RESEARCH AND DEVELOPMENT

Research and development activities continue to play an important role in the development of new production techniques.

ON BEHALF OF THE BOARD:

S G Poskitt - Director

17 July 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of farming and vegetable processing.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

S G Poskitt

B T Poskitt

FINANCIAL INSTRUMENTS

The company's principal financial instruments are bank loans, overdrafts and hire purchase contracts.

Bank loans and hire purchase contracts are taken in order to finance the acquisition of capital assets.

Bank overdrafts are utilised whenever necessary to fulfill working capital requirements.

The company manages liquidity risk by critically analysing cash flow forecasts and the timing of expected receipts and payments, to ensure that the company always has sufficient cash to meet its obligations.

Credit and cash flow risks by assessing the credit offered to customers and the regular monitoring of amounts outstanding at a given time.

The company manages price risk by negotiating volumes and prices are agreed in advance and remain within contracted terms throughout the contract period.

Due to the nature of the financial instruments used by the company there is limited exposure to currency risk.

DISABLED PERSONS

The company gives full consideration to applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the company's policy wherever practical to provide continuing employment under normal terms and conditions, and to provide training, career development and promotion to disabled employees wherever appropriate.

ENGAGEMENT WITH EMPLOYEES

The company's policy is to keep employees informed on matters relevant to them through regular meetings and briefings.

The company ensures that its employees possess the tools and training they need to flourish in their individual roles. The directors recognise the contribution staff members make on a daily basis and encourage them to strive to achieve their full potential.

STATEMENT ON BUSINESS RELATIONSHIPS

The company strives to maintain high levels of customer satisfaction through maintaining regular and open lines of communication with customers, seeking customer feedback and making improvements where necessary.

The company focuses on the production of root vegetables and ensures that a high standard of product is provided by growing, washing, packing and distributing its goods from a single site, enabling the company to control all aspects of production in order to meet the quality standards required by customers. The company agrees prices with customers knowing they can provide the levels of quality and service that customers require and expect.

The ability of the company to comply with appropriate regulation and maintain high standards of business conduct are a valued part of the service that the company provides to its customers.

The company has an experienced administrative team which customers can rely on to discuss any concerns or issues. The company endeavours to resolve any issues arising in a timely and suitable manner.

The company seeks to maintain good working relationships with its suppliers by paying invoices within agreed supplier terms. Outstanding invoices are monitored by the directors on a weekly basis to ensure that supplier invoices are being settled on a timely basis.

The company seeks to support the local community through sponsorship of various community activities.

The company helps to protect the environment through participation in the Countryside Stewardship Scheme. The company has also established an environmentally sensitive area and this area is now a haven for many types of wildlife and bird monitoring schemes. The company also aims to manage its land to ensure that its usage is sustainable for future generations to come.

STREAMLINED ENERGY AND CARBON REPORTING

This section includes our mandatory reporting of energy and greenhouse gas emissions for the period 1 January 2024 to 31 December 2024, pursuant to the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, implementing the government's Streamlined Energy and Carbon Reporting (SECR) policy.

Our methodology to calculate our greenhouse gas emissions is based on the GHG Protocol, using BEIS 2024 conversion factors. In some cases consumption has been extrapolated from available data or direct comparison made to a comparable period.

Previous SECR reports used a fixed base year for comparative reporting, which is deemed no longer an appropriate representation of the company's energy consumption. This year's report has switched to a rolling base year comparison instead. This shifts the focus to highlight incremental improvements and provide more appropriate consumption comparisons.The following table shows the 2024 financial year performance compared to the new rolling base year of 2023:

Financial year 2024

Financial year 2024

Financial year 2023

Financial year 2023

Energy kWh

Emissions tCO2e

Energy kWh

Emissions tCO2e

Red Diesel - Scope 1

9,942,183

2,550

7,484,318

1,920

Biogas - Scope 1

5,993,435

1

6,292,435

1

White Diesel - Scope 1

4,198,062

1,003

5,002,915

1,196

Propane - Scope 1

475,989

102

352,463

75

Grid Electricity - Scope 2

1,594,159

330

1,844,400

382

Solar Electricity - Scope 2

45,195

0

44,194

0

Total

22,249,023

3,986

21,020,725

3,574

-

Red diesel had the highest single fuel usage with 0.9 million litres used as fuel for off-road farm machinery. This was a 33% increase from the previous year, however it is 4% less than financial year 2022 and 16% less than 2021, making financial year 2023 the outlier. This is because of the extreme wet weather the UK faced in 2023, reducing winter crop sowing as fields were too wet to plant.

-

Biogas from onsite anaerobic digestion was the second highest energy usage, fuelling a CHP engine primarily producing electricity, but also providing space heating for several areas onsite. 5% less biogas has been used in the CHP in financial year 2024 than in 2023 but it is up 10% from financial year 2022, demonstrating fluctuations in site demands.

-

Third is DERV white diesel, used for road haulage operations and for staff transport; this fuel saw a decrease of 16% in financial year 2024 compared to 2023. However, consumption was still 8% higher than in 2022.

-

Electricity is both imported, at the main site via a half-hourly metered supply, and generated onsite, by solar panels and by the above mentioned CHP. It is used primarily for refrigeration and food processing at the main site, along with cold storage and irrigation etc. at numerous smaller sites that have non-half-hourly (NHH) supplies. Many of the non-half hourly supplies have now been swapped out to smart meters, which have removed most of the estimated data uncertainties. This has resulted in a reduction of 14% from financial year 2023 and 27% from 2022's estimated consumptions. This is despite intensive irrigation demands from 2024's dry summer, which saw borehole pumps used extensively, however a decrease to the demand of electricity in other areas of the business negated this.

-

Propane is used to power forklift trucks at the main site, where it is stored in bulk. Usage is 35% higher in 2024 compared to 2023 but is 9% lower when compared to financial year 2022.

-

Kerosene is used at one domestic supply, separate from business operations, and is therefore out of scope of SECR.

-

There are no mains gas supplies.

The intensity ratio compares emissions data with an appropriate business metric or financial indicator, such as sales revenue or floor space. This allows comparison of energy efficiency performance over time, and often with other similar types of organisations. The production metric chosen is turnover. For the financial year 2024, this was £36.0m. Comparison is made with all previous reporting years in the table below:

SECR Reporting Year

Turnover

Carbon tCO2e

Intensity Ratio tCO2e/£m

2020 (First Year)

£37.9m

4,964

130.98

2021

£35.5m

4,464

128.56

2022

£36.5m

4,177

114.44

2023 (Base Year)

£35.9m

3,575

99.57

2024 (Reporting Year)

£36.0m

3,987

110.75

The following energy improvement actions have been reported for the financial year 2024:

-

Completion of installation of smart meters for improved energy consumption reporting.

-

Replacement chiller installed with high efficiency rating.

-

Other energy saving actions from the recent ESOS Phase 3 report were considered, however most are currently not commercially viable.

DISCLOSURE IN THE STRATEGIC REPORT

In accordance with Section 414C (11) of the Companies Act 2006, the company has chosen to report details concerning future developments within the strategic report.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Lloyd Dowson Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S G Poskitt - Director

17 July 2025

Opinion

We have audited the financial statements of Mark H Poskitt Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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 31 December 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.

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 seven, 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 the audit was considered capable of detecting irregularities, including fraud

Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.

In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.

However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:

-

obtained an understanding of the nature of the industry and sector, including the legal and regulatory frameworks that the company operates in, including whether the company is complying with those legal and regulatory frameworks;

-

inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;

-

discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.

As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", the Companies Act 2006 and UK tax compliance regulations. We performed audit procedures to detect non-compliance which may have a material impact on the financial statements which included reviewing financial statement disclosures, inspecting correspondence with relevant tax authorities and evaluating advice received from third party advisors.

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to food hygiene regulations, health and safety, data protection and employment law. We performed audit procedures to inquire of management whether the company is in compliance with these laws. This work included evaluating correspondence with third party consultants.

The audit engagement team identified the risk of management override of controls and the risk of fraud in revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to;

-

testing material journal entries throughout the year and evaluating their business rationale;

-

reviewing key controls and account reconciliations;

-

testing material bank transactions for business rationale;

-

on a sample basis, reviewing authorisation procedures of business expenditure, including review of supporting documentation.

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.

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.

Rebecca Sygrove FCCA (Senior Statutory Auditor)

for and on behalf of Lloyd Dowson Audit Limited

Chartered Accountants

& Statutory Auditors

Medina House

2 Station Avenue

Bridlington

East Yorkshire

YO16 4LZ

23 July 2025

TURNOVER

3

35,995,895

35,753,952

Cost of sales

35,252,453

34,555,029

GROSS PROFIT

743,442

1,198,923

Administrative expenses

679,829

1,307,410

63,613

(108,487

)

Other operating income

174,199

32,626

OPERATING PROFIT/(LOSS)

5

237,812

(75,861

)

Income from participating interests

164,122

319,743

Interest receivable and similar income

6

14,244

3,235

178,366

322,978

416,178

247,117

Interest payable and similar expenses

7

146,005

65,567

PROFIT BEFORE TAXATION

270,173

181,550

Tax on profit

8

103,849

(170,757

)

PROFIT FOR THE FINANCIAL YEAR

166,324

352,307

Retained earnings at beginning of year

19,865,391

19,513,084

RETAINED EARNINGS AT END OF YEAR

20,031,715

19,865,391

FIXED ASSETS

Intangible assets

9

35,625

40,125

Tangible assets

10

11,920,526

10,311,850

Investments

11

6,405,971

5,779,441

18,362,122

16,131,416

CURRENT ASSETS

Stocks

12

6,233,069

6,061,026

Debtors

13

5,357,938

5,801,676

Cash at bank

3,306

1,336

11,594,313

11,864,038

CREDITORS

Amounts falling due within one year

14

6,534,673

6,482,458

NET CURRENT ASSETS

5,059,640

5,381,580

TOTAL ASSETS LESS CURRENT LIABILITIES

23,421,762

21,512,996

CREDITORS

Amounts falling due after more than one year

15

(2,828,930

)

(1,190,337

)

PROVISIONS FOR LIABILITIES

19

(552,117

)

(448,268

)

NET ASSETS

20,040,715

19,874,391

CAPITAL AND RESERVES

Called up share capital

20

2,000

2,000

Capital redemption reserve

21

7,000

7,000

Retained earnings

21

20,031,715

19,865,391

SHAREHOLDERS' FUNDS

20,040,715

19,874,391

The financial statements were approved by the Board of Directors and authorised for issue on 17 July 2025 and were signed on its behalf by:

S G Poskitt - Director

Cash flows from operating activities

Cash generated from operations

1

1,269,492

1,039,420

Interest paid

(89,691

)

(44,661

)

Interest element of hire purchase payments paid

(56,314

)

(20,906

)

Tax refunded

196,816

-

Net cash from operating activities

1,320,303

973,853

Cash flows from investing activities

Purchase of tangible fixed assets

(2,365,327

)

(857,445

)

Purchase of fixed asset investments

(2,300

)

-

Sale of tangible fixed assets

1,199,404

698,081

Capital drawn from LLP

(460,108

)

(342,914

)

Interest received

14,244

2,640

Net cash from investing activities

(1,614,087

)

(499,638

)

Cash flows from financing activities

New bank loans in year

1,500,000

-

Bank loan repayments in year

(106,435

)

(112,101

)

Hire purchase contracts capital payments

(674,637

)

(757,412

)

Amount (drawn) / introduced by directors

(4,711

)

17,118

Net cash from financing activities

714,217

(852,395

)

Increase/(decrease) in cash and cash equivalents

420,433

(378,180

)

Cash and cash equivalents at beginning of year

2

(1,267,962

)

(889,782

)

Cash and cash equivalents at end of year

2

(847,529

)

(1,267,962

)

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

31.12.24

31.12.23

£

£

Profit before taxation

270,173

181,550

Depreciation charges

1,321,187

1,163,872

Profit on disposal of fixed assets

(801,940

)

(91,346

)

Government grants

(11,112

)

(11,108

)

Finance costs

146,005

65,567

Finance income

(178,366

)

(322,978

)

745,947

985,557

(Increase)/decrease in stocks

(172,043

)

76,044

Decrease/(increase) in trade and other debtors

265,137

(499,370

)

Increase in trade and other creditors

430,451

477,189

Cash generated from operations

1,269,492

1,039,420

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 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

3,306

1,336

Bank overdrafts

(850,835

)

(1,269,298

)

(847,529

)

(1,267,962

)

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,336

59,637

Bank overdrafts

(1,269,298

)

(949,419

)

(1,267,962

)

(889,782

)

3.	ANALYSIS OF CHANGES IN NET DEBT

Other

non-cash

At 1.1.24

Cash flow

changes

At 31.12.24

£

£

£

£

Net cash

Cash at bank

and in hand

1,336

1,970

3,306

Bank overdrafts

(1,269,298

)

418,463

(850,835

)

(1,267,962

)

420,433

(847,529

)

Debt

Finance leases

(1,708,084

)

674,637

(957,500

)

(1,990,947

)

Debts falling due

within 1 year

(110,942

)

44,816

-

(66,126

)

Debts falling due

after 1 year

(70,786

)

(1,438,381

)

-

(1,509,167

)

(1,889,812

)

(718,928

)

(957,500

)

(3,566,240

)

Total

(3,157,774

)

(298,495

)

(957,500

)

(4,413,769

)

1.	STATUTORY INFORMATION

Mark H Poskitt Limited 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.

Significant judgements and estimates

In the application of the company's accounting policies, which are described further in this note, management are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation and uncertainty

The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.

Useful economic lives of intangible and tangible assets

The annual amortisation and depreciation charges for intangible and tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See the notes to the financial statements for the carrying amount of the intangible assets, the carrying amount of the property, plant and equipment and the useful economic lives of each class of assets.

Stock provisioning

The company farms and processes vegetables and is sometimes subject to deflationary retail prices. As a result it is necessary to consider the recoverability of the cost of stocks and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods and future usage of raw materials.

Impairment of debtors

The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for the sale of goods in the ordinary nature of the business and is recognised net of trade discounts, customer allowances and Value Added Tax. Income is recognised when the customer is in receipt of the relevant goods or services and when the risks and rewards of ownership have transferred to the customer.

Intangible assets

Intangible assets purchased are recognised when future economic benefits are probable and the cost of the asset can be measured reliably.

Amortisation is calculated so as to write off the cost of an intangible fixed asset, less its estimated residual value, over the useful economic life of that asset of 10 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

4% on cost - excluding the land element

Leasehold property

-

4% on cost - excluding the land element

Plant and machinery

-

4% to 25% of net book value or cost

Motor vehicles

-

10% to 25 % of net book value or cost

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Basic financial instruments

Trade and other debtors / creditors

Trade and other debtors are recognised initially at transaction price plus attributable transaction costs. Trade and other creditors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of interest for a similar debt instrument.

Interest-bearing borrowings classified as basic financial instruments

Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition , interest -bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.

Investments in equity instruments

Investments in equity instruments are measured initially at fair value, which is normally the transaction price. Transaction costs are excluded if the investments are subsequently measured at fair value through profit and loss. Subsequent to initial recognition, investments that can be measured reliably are measured at fair value with changes recognised in the profit and loss. Other investments are measured at cost less impairment in profit or loss.

Cash and cash equivalents

Cash and cash equivalents comprise of cash balances. Bank overdrafts that are repayable on demand and form an integral part of the Company's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement.

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.