TERRAVESTA FARMS LIMITED


Director	Mr W Cracroft-Eley


Registered Address	12 Tentercroft Street
	Lincoln
	LN5 7DB


Place of Business	Unit 4
	Riverside Enterprise Park
	Saxilby
	Lincoln
	LM1 5AB


Registered Number	07853045 (England and Wales)

Notes to the Financial Statements
for the year ended 31 December 2024

1.	Accounting policies

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

	Statement of compliance
	The financial statements have been prepared in accordance with the Companies Act 2006 and FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland including Section 1A Small Entities.

	Basis of preparation
	The accounts have been prepared under the historical cost convention and in accordance with FRS 102, the financial reporting standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).

	Functional and presentation currency
	The financial statements are presented in sterling and this is the functional currency of the company.

	Revenue from sale of goods
	Revenue from the sale of goods is recognised when the company has transferred to the buyer the significant risks and rewards of ownership of the goods, usually when goods are delivered and legal title has passed. Providing the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transition can be measured reliably.

Revenue from sale of goods

Revenue from the sale of goods is recognised when the company has transferred to the buyer the significant risks and rewards of ownership of the goods, usually when goods are delivered and legal title has passed. Providing the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transition can be measured reliably.

	Operating leases
	Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

	Borrowing costs
	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 profit and loss account 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 company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Borrowing costs

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 profit and loss account 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 company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

Foreign currency translation

Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

	Current taxation
	Current tax is recognised in profit or loss, except for taxes related to revaluations of land and buildings which are recognised in other comprehensive income. Current tax represents the amount of tax payable (receivable) in respect of taxable profit (loss) for the current, or past, reporting periods. Current tax is measured at the amount expected to be paid (recovered) using the tax rates and laws which have been enacted, or substantively enacted, by the balance sheet date. Where payments to HM Revenue and Customs exceed liabilities owed, an asset is recognised to the extent of the amount of tax recoverable.

Current taxation

Current tax is recognised in profit or loss, except for taxes related to revaluations of land and buildings which are recognised in other comprehensive income.

Current tax represents the amount of tax payable (receivable) in respect of taxable profit (loss) for the current, or past, reporting periods. Current tax is measured at the amount expected to be paid (recovered) using the tax rates and laws which have been enacted, or substantively enacted, by the balance sheet date. Where payments to HM Revenue and Customs exceed liabilities owed, an asset is recognised to the extent of the amount of tax recoverable.

	Tangible fixed assets and depreciation
	All fixed assets are initially recorded at cost. Property, plant and equipment is used in the company's principal activity for the production and supply of goods or for administrative purposes and is stated in the balance sheet under the historic cost model. This model requires the assets to be stated at cost less amounts in respect of depreciation and less any accumulated impairment losses. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value (which is the expected amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life), over the useful economic life of the respective asset as follows:

Tangible fixed assets and depreciation

All fixed assets are initially recorded at cost. Property, plant and equipment is used in the company's principal activity for the production and supply of goods or for administrative purposes and is stated in the balance sheet under the historic cost model. This model requires the assets to be stated at cost less amounts in respect of depreciation and less any accumulated impairment losses. Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value (which is the expected amount that would currently be obtained from disposal of an asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life), over the useful economic life of the respective asset as follows:


		Reducing balance (%)
	Plant and machinery	20

	Trade and other debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

Trade and other debtors

Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Cash and cash equivalents
	Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less. Bank overdrafts are disclosed separately. For the purpose of the cash flow statement, bank overdrafts form an integral part of the company's cash management and are included as a component of cash and cash equivalents.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less.

Bank overdrafts are disclosed separately. For the purpose of the cash flow statement, bank overdrafts form an integral part of the company's cash management and are included as a component of cash and cash equivalents.

	Trade and other creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Share capital
	Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

2.	Average number of employees


		2024		2023
	Average number of employees during the year	1		2

3.	Tangible fixed assets

	Plant & machinery	Total
	£	£
Cost or valuation
At 01 January 24	77,162	77,162
At 31 December 24	77,162	77,162
Depreciation and impairment
At 01 January 24	51,007	51,007
Charge for year	11,650	11,650
At 31 December 24	62,657	62,657
Net book value
At 31 December 24	14,505	14,505
At 31 December 23	26,155	26,155

4.	Debtors: amounts due within one year

	2024	2023
	£	£
Trade debtors / trade receivables	285,403	469,247
Amounts owed by group undertakings	314,973	233,179
Prepayments and accrued income	13,474	26,949
Total	613,850	729,375

5.	Creditors: amounts due within one year

	2024	2023
	£	£
Trade creditors / trade payables	166,505	253,551
Bank borrowings and overdrafts	2	2
Taxation and social security	22,178	15,547
Accrued liabilities and deferred income	249,227	287,777
Total	437,912	556,877


	Other borrowings Other borrowings is denominated in £ with a nominal interest rate of market rate. The carrying amount at year end is £2 (2023 - £2). The other borrowings relate to factoring debt and is by fixed and floating charges over the company.

6.	Related party transactions
	Group companies During the year management fees of £60,000 (2023 - £60,000) were paid to group companies. At the year end £314,973 (2023 - £233,179) was owed to Terravesta Farms Limited by group companies and £Nil (2023 - £Nil) was owed to group companies by Terravesta Farms Limited.

7.	Parent-subsidiary relationships
	The company's immediate parent is Terravesta Limited, incorporated in England. The ultimate parent is Terravesta Holdings Limited, incorporated in England.

8.	Further information regarding the company's financial position
	Going Concern Management have concluded that material uncertainties exist in regard to the going concern of the group controlling this company. The material uncertainty has a direct effect on the going concern of the individual companies of the group and the ability to continue trading. In previous years the group and its subsidiaries have relied on working capital and cash funding from third party funders and direct shareholder or director loans. The material uncertainty has arisen over whether this method of funding will continue into the future. The future of this group and subsidiaries is heavily reliant on the continued support of its third party funders and directors or shareholders funds.

Further information regarding the company's financial position

Going Concern
Management have concluded that material uncertainties exist in regard to the going concern of the group controlling this company. The material uncertainty has a direct effect on the going concern of the individual companies of the group and the ability to continue trading. 
In previous years the group and its subsidiaries have relied on working capital and cash funding from third party funders and direct shareholder or director loans. The material uncertainty has arisen over whether this method of funding will continue into the future. The future of this group and subsidiaries is heavily reliant on the continued support of its third party funders and directors or shareholders funds.

	Notes	2024		2023
		£	£	£	£
Fixed assets
Tangible assets	3		14,505		26,155
			14,505		26,155
Current assets
Debtors	4	613,850		729,375
Cash at bank and on hand		4,004		4,658
		617,854		734,033
Creditors amounts falling due within one year	5	(437,912)		(556,877)
Net current assets (liabilities)			179,942		177,156
Total assets less current liabilities			194,447		203,311
Net assets			194,447		203,311
Capital and reserves
Called up share capital			100		100
Profit and loss account			194,347		203,211
Shareholders' funds			194,447		203,311