J.P. Matthews Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024

1	General information

The company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:
80 Oxford Street
Burnham-On-Sea
Somerset
TA8 1EF

Principal activity

The principal activity of the company is farming, including pig rearing and grass sales.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling which is the functional currency of the entity.

J.P. Matthews Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Revenue recognition

Turnover is measured at the fair value of the consideration net of sale charges received or receivable and represents amounts receivable for livestock supplied, and use of land, stated net of discounts and Value Added Tax.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when 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.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant & Machinery	10% straight line
Equipment	20% straight line
Improvements	10% straight line

J.P. Matthews Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

2	Accounting policies (continued)

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. .

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

J.P. Matthews Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

3	Staff numbers

The average number of persons employed by the company (including the director) during the year, was 1 (2023 - 1).

4	Tangible assets

	Land and buildings £	Improvements £	Plant and machinery £	Total £
Cost or valuation
At 1 January 2024	3,586,442	6,370	8,724	3,601,536
Additions	-	-	7,038	7,038
At 31 December 2024	3,586,442	6,370	15,762	3,608,574
Depreciation
At 1 January 2024	-	6,370	5,612	11,982
Charge for the year	-	-	2,538	2,538
At 31 December 2024	-	6,370	8,150	14,520
Carrying amount
At 31 December 2024	3,586,442	-	7,612	3,594,054
At 31 December 2023	3,586,442	-	3,112	3,589,554

J.P. Matthews Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

4	Tangible assets (continued)

Revaluation

The land and buildings are held at a value of £3,586,442. They have a historical cost of £2,734,417.

At 31 December 2023 the director revalued the agricultural land based on the market values at the time of revaluation. In the opinion of the director, these valuations are still valid at 31 December 2024.

5	Investment properties

	2024 £
At 1 January	1,020,000
At 31 December	1,020,000

Ferndale is held at a value of £400,000. The property has a historical cost of £319,763.

Kierlsgate Cottage is held at a value of £300,000. The property has a historical cost of £3,386.

Old School House is valued at £320,000. The property has a historical cost of £74,705.

At 31 December 2023, the director revalued the investment properties based on the market values at the time of revaluation. In the opinion of the director, these valuations are still valid at 31 December 2024.

The directors have reviewed the presentation and believe that including the properties as investment properties presents the company's activities more fairly.

6

Stocks

	2024 £	2023 £
Other inventories	214,341	216,567

J.P. Matthews Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

7

Debtors

	2024 £	2023 £
Trade debtors	33,205	21,480
Other debtors	38,063	21,189
Prepayments	-	141
	71,268	42,810

8

Creditors

Creditors: amounts falling due within one year

	2024 £	2023 £
Due within one year
Trade creditors	122,439	118,011
Taxation and social security	-	58,769
Accruals and deferred income	3,373	3,008
Other creditors	21,835	21,297
	147,647	201,085

J.P. Matthews Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2024 (continued)

9

Reserves

Profit and loss account:

This reserve records retained earnings and accumulated losses. This reserve includes £1,474,171 of non distributable reserves.

10	Related party transactions

Transactions with the director

2024	At 1 January 2024 £	Repayments by director £	At 31 December 2024 £
Director	(21,295)	(540)	(21,835)

2023	At 1 January 2023 £	Advances to director £	At 31 December 2023 £
Director	(22,195)	900	(21,295)

11	Restatement of prior year

During the preparation of 2024 Accounts, the directors have identified that stock at 31 December 2023 was overstated by £114,582. As the result, the 2023 comparatives have been restated to reflect this overstatement. After the adjustments there was a reduction of tax liability of £28,239.