Sally Farms Limited


Director	Dr Leon Roger Furlong


Registered Address	York House Thornfield Business Park
	Standard Way Business Park
	Northallerton
	DL6 2XQ


Registered Number	10357778 (England and Wales)

Notes to the Financial Statements
for the year ended 30 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.

	Basis of preparation
	The financial statements have been prepared under the historical cost convention on a going concern basis unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

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

	Turnover policy
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

Turnover policy

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and/or the rendering of services.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. 

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Employee benefits
	The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. Contributions to defined contribution plans are expensed in the period to which they relate. Amounts not paid are shown in accruals in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Employee benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further obligation. 

Contributions to defined contribution plans are expensed in the period to which they relate.  Amounts not paid are shown in accruals in the Statement of Financial Position.  The assets of the plan are held separately from the company in independently administered funds.

	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 the Income Statement

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 the Income Statement

	Current taxation
	Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

	Deferred tax
	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

Deferred tax

Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Intangible assets
	Other intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

	Tangible fixed assets and depreciation
	Tangible fixed assets are stated at cost or valuation less depreciation. The assets residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement Depreciation is provided on all tangible fixed assets as follows:

Tangible fixed assets and depreciation

Tangible fixed assets are stated at cost or valuation less depreciation. 

The assets residual values, useful lives and depreciation methods are reviewed and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Income Statement

Depreciation is provided on all tangible fixed assets as follows:


	Reducing balance (%)	Straight line (years)
Land and buildings	-	50
Plant and machinery	-	20
Fixtures and fittings	10	-
Vehicles	25	-
Office Equipment	25	-

	Investment property
	Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

	Finance leases and hire purchase contracts
	Assets held under finance leases which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease Payments made under operating leases are charged to the Income Statement on a straight line basis over the lease term.

Finance leases and hire purchase contracts

Assets held under finance leases which are leases where substantially all the risks and rewards of ownership of the asset have passed to the company, and hire purchase contracts are capitalised in the Statement of Financial Position. They are depreciated over the shorter of their useful lives or the term of the lease. All other lease arrangements are classified as an operating lease

Payments made under operating leases are charged to the Income Statement on a straight line basis over the lease term.

	Stocks and work in progress
	Stocks are valued at the lower of cost and estimated selling price (less any associated costs to enable such sales to complete). At each date of Statement of Financial Position, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete the sale. The impairment loss is recognised immediately in the Income Statement

	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.

	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.

	Financial instruments
	The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

2.	Average number of employees


		2024		2023
	Average number of employees during the year	6		6

3.	Intangible assets

	Other	Total
	£	£
Cost or valuation
At 31 December 23	46,474	46,474
At 30 December 24	46,474	46,474
Amortisation and impairment
At 31 December 23	46,474	46,474
At 30 December 24	46,474	46,474
Net book value
At 30 December 24	-	-
At 30 December 23	-	-

4.	Tangible fixed assets

	Land & buildings	Plant & machinery	Vehicles	Fixtures & fittings	Office Equipment	Total
	£	£	£	£	£	£
Cost or valuation
At 31 December 23	7,556,196	2,429,048	31,250	23,252	4,610	10,044,356
Additions	188,238	59,277	19,375	-	6,187	273,077
At 30 December 24	7,744,434	2,488,325	50,625	23,252	10,797	10,317,433
Depreciation and impairment
At 31 December 23	60,978	599,195	15,729	3,289	2,219	681,410
Charge for year	9,013	126,561	7,109	1,998	1,960	146,641
At 30 December 24	69,991	725,756	22,838	5,287	4,179	828,051
Net book value
At 30 December 24	7,674,443	1,762,569	27,787	17,965	6,618	9,489,382
At 30 December 23	7,495,218	1,829,853	15,521	19,963	2,391	9,362,946


	Within Land and Buildings there is no depreciation on the land of Broomfield Farm. There is also no depreciation on the land at Thornton Manor Farm.

5.	Revaluation of property, plant and equipment
	Land and investment properties were revalued in the year by George F White. A revaluation surplus of £3,590,026 has been recognised accordingly. If the Investment Properties had not been included at valuation they would have been included under the historical cost as follows 2024 £1,401,994 (2023: £1,401,944)

6.	Investment property
	Investment property is carried at fair value determined annually by the directors and derived from the current market rents and investment property yields for comparable real estate. These values are adjusted if necessary for any difference in the nature, location and condition of the specific asset.


		£
	Fair value at 31 December 23	2,315,001
	At 30 December 24	2,315,001

7.	Stocks

	2024	2023
	£	£
Other stocks	24,094	166,864
Total	24,094	166,864

8.	Debtors: amounts due within one year

	2024	2023
	£	£
Trade debtors / trade receivables	162,165	139,770
Other debtors	290,993	317,069
Prepayments and accrued income	19,717	37,032
Deferred tax asset, debtors	-	51,266
Total	472,875	545,137

9.	Creditors: amounts due within one year

	2024	2023
	£	£
Trade creditors / trade payables	257,375	220,619
Bank borrowings and overdrafts	160,954	296,649
Other creditors	5,663,904	5,419,372
Accrued liabilities and deferred income	10,452	10,823
Total	6,092,685	5,947,463


	Bank borrowings are secured by fixed and floating charges over the company's assets.

10.	Creditors: amounts due after one year

	2024	2023
	£	£
Bank borrowings and overdrafts	2,700,042	3,389,409
Total	2,700,042	3,389,409


	Bank borrowing are secured by fixed and floating charges over the company's assets. Included in the bank loans falling due after more than one year are amounts payable after more than five years of £2,003,653 (2023: £2,427,390).

11.	Provisions for liabilities

	2024	2023
	£	£
Net deferred tax liability (asset)	1,018,805	897,506
Total	1,018,805	897,506

12.	Other commitments
	The total amount of guarantees not included in the balance sheet is £2,700,042 (2023: £3,389,547). Lloyds Bank PLC hold fixed and floating charges in respect of the company's assets. The security relates to cross company guarantee against bank loans obtained by Oakdale Farms Ltd amounting to £2,700,042 (2023: £3,389,547).

13.	Revaluation reserve
	The revaluation reserve represents the amount of unrealised surplus created when the investment properties were revalued, less any deferred tax provision. The reserve is non-distributable funds.


		£
	Reserve at 31 December 23	2,692,520
	At 30 December 24	2,692,520

14.	Related party transactions
	The Company has taken advantage of the exemption contained in Section 33 of FRS 102 "Related Party Disclosures" from disclosing transactions with related parties which are on an arms length basis.

	Notes	2024		2023
		£	£	£	£
Fixed assets
Tangible assets	4		9,489,382		9,362,946
Investment property	6		2,315,001		2,315,001
			11,804,383		11,677,947
Current assets
Stocks	7	24,094		166,864
Debtors	8	472,875		545,137
Cash at bank and on hand		38,422		200
		535,391		712,201
Creditors amounts falling due within one year	9	(6,092,685)		(5,947,463)
Net current assets (liabilities)			(5,557,294)		(5,235,262)
Total assets less current liabilities			6,247,089		6,442,685
Creditors amounts falling due after one year	10		(2,700,042)		(3,389,409)
Provisions for liabilities	11		(1,018,805)		(897,506)
Net assets			2,528,242		2,155,770
Capital and reserves
Called up share capital			100		100
Revaluation reserve			2,692,520		2,692,520
Profit and loss account			(164,378)		(536,850)
Shareholders' funds	13		2,528,242		2,155,770