ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

Registered number: 03896568

SUNDOWN PRODUCTS LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

SUNDOWN PRODUCTS LIMITED

COMPANY INFORMATION

DIRECTORS	D A Cubitt
	R M Cubitt


REGISTERED NUMBER	03896568


REGISTERED OFFICE	The Old Mill, Station Road
	Tilbrook
	Huntingdon
	Cambridgeshire
	PE28 0JY


INDEPENDENT AUDITORS	Peters Elworthy & Moore
	Chartered Accountants & Statutory Auditors
	Salisbury House
	Station Road
	Cambridge
	CB1 2LA

SUNDOWN PRODUCTS LIMITED

CONTENTS

	Page
Strategic Report	1
Directors' Report	2 - 3
Independent Auditors' Report	4 - 8
Statement of Comprehensive Income	9
Balance Sheet	10
Statement of Changes in Equity	11
Statement of Cash Flows	12
Notes to the Financial Statements	13 - 27

SUNDOWN PRODUCTS LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

INTRODUCTION

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

BUSINESS REVIEW

The directors are satisfied with the performance of the business in the year despite some problems with the supply of raw materials. Some personnel changes were made during the year and the directors believe that the business is in a strong position for the future.

PRINCIPAL RISKS AND UNCERTAINTIES

Key risks are any impediment to supply of raw materials to manufacture bedding and feed, and the default on debts by customers. The directors have limited thier exposure to key risks with vigilant credit control procedures.

FINANCIAL KEY PERFORMANCE INDICATORS

The company continues to monitor its balance sheet position to ensure it is able to fund its working capital requirements based on expected levels of turnover and customer and supplier credit terms. These factors continue to be reviewed and ensure the company maintains adequate financial headroom.

OTHER KEY PERFORMANCE INDICATORS

The company meausres its non-financial performance by the securing of new business, which is a critical area if the business is to contiue to grow. The value of the contracts won during the year is therefore closeley monitored by the directors.
During the year the level of new business won was considered to be satisfactory.

This report was approved by the board and signed on its behalf by:

D A Cubitt

Director

Date: 30 June 2025

Page 1

SUNDOWN PRODUCTS LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the Company is the production of ruminant feed, and equine and poultry bedding.

DIRECTORS

The directors who served during the year were:

D A Cubitt

R M Cubitt

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

∙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 to 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.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £195,080 (2023 - £549,610).

Dividends of £222,000 were paid during the year (2023 - £267,500). No final dividends have been recommended.

FUTURE DEVELOPMENTS

The directors anticipate the business environment will remain competitive with no significant changes to the core business activities. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. The directors are confident in the company's ability to maintain and build on this position, albeit with cautious growth expectations.

Page 2

SUNDOWN PRODUCTS LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2024

FINANCIAL RISK MANAGEMENT

Risk management objectives and policies
The Company is exposed to a variety of risks in relation to financial instruments. The Company is exposed to two main areas of risk - credit risk, liquidity risk and foreign currency. These risks are described further below.
Credit risk
Credit risk is the risk that a customer will be unable to settle amounts owed to the Company as they fall due. The Company seeks to mitigate this risk by actively managing client relationships, regularly review of debtors and overdue payments, and proactive credit control procedures.
Liquidity risk
Liquidity risk is the risk that cash may not be available to settle financial obligations as they fall due. The Company seeks to manage liquidity risk by ensuring sufficient liquidity is available to meet foreseeable needs. The Company expects to meet its financial obligations as it closely monitors working capital.
Foreign currency risk
The Company is exposed to foreign exchange rate risk as some of its trade is with customers in non- Sterling denominated currencies. Foreign exchange rate risk is mitigated by using conservative rates in planning, forecasting and cash flows.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Company since the year end.

AUDITORS

The auditors, Peters Elworthy & Moore, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf by:

D A Cubitt

Director

Date: 30 June 2025

Page 3

SUNDOWN PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNDOWN PRODUCTS LIMITED

OPINION

We have audited the financial statements of Sundown Products Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, 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 United Kingdom, including the Financial Reporting Council'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.

Page 4

SUNDOWN PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNDOWN PRODUCTS LIMITED (CONTINUED)

OTHER INFORMATION

The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

OPINION 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Directors' Report 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 Directors' Report.

We have nothing to report in respect of the following matters in relation to which 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 Directors' Responsibilities Statement set out on page 2, 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 is 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.

Page 5

SUNDOWN PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNDOWN PRODUCTS LIMITED (CONTINUED)

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 an Auditors' Report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

∙we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience;

∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;

∙in addition, we considered provisions of other laws and regulations which do not have a direct effect on the financial statements but compliance with which might be fundamental to the company's ability to operate or to avoid material penalties;

∙we obtained an understanding of the entity’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance.

∙we identified which laws and regulations were significant in the context of the entity;

∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

Page 6

SUNDOWN PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNDOWN PRODUCTS LIMITED (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)
To address the risk of fraud through management bias and override of controls, we;

∙assessed whether judgements and assumptions made in determining the accounting estimates set out in note 3 were indicative of potential bias;

∙investigated the rationale behind significant or unusual transactions;

∙we obtained an understanding of the entity’s risk assessment process, including the risk of fraud;

∙we assessed the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur;

∙we designed procedures to identify unexpected and unusual journal entries and performed testing to confirm the validity of such postings;

∙we used Audit Data Analytics to review the client data for unusual trends/anomalies;

∙we evaluated the assumptions and judgements used by management within significant accounting estimates and assessed whether these indicated evidence of management bias; and

∙performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and revieing accounting estimates for bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

∙agreeing financial statement disclosures to underlying supporting documentation; and

∙enquiring of management as to actual and potential litigation and claims.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 Auditors' Report.

Page 7

SUNDOWN PRODUCTS LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUNDOWN PRODUCTS LIMITED (CONTINUED)

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 an Auditors' Report 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.

James Burrett (Senior Statutory Auditor)

for and on behalf of

Peters Elworthy & Moore

Chartered Accountants

Statutory Auditors

Salisbury House

Station Road

Cambridge

CB1 2LA

Date: 30 June 2025

Page 8

SUNDOWN PRODUCTS LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2024

	2024	2023
Note	£	£


Turnover	4	11,547,655	11,704,247
Cost of sales		(9,226,995)	(8,760,994)
GROSS PROFIT		2,320,660	2,943,253
Administrative expenses		(1,856,956)	(1,965,749)
Other operating income	5	23,192	15,430
OPERATING PROFIT	6	486,896	992,934
Interest payable and similar expenses	10	(230,500)	(226,673)
PROFIT BEFORE TAX		256,396	766,261
Tax on profit	11	(61,316)	(216,651)
PROFIT FOR THE FINANCIAL YEAR		195,080	549,610

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 13 to 27 form part of these financial statements.

Page 9

SUNDOWN PRODUCTS LIMITED

REGISTERED NUMBER: 03896568

BALANCE SHEET

AS AT 31 DECEMBER 2024

		2024		2023
Note		£		£

FIXED ASSETS
Tangible assets	13		4,516,948		4,360,525
			4,516,948		4,360,525
CURRENT ASSETS
Stocks	14	657,925		305,822
Debtors: amounts falling due within one year	15	1,617,538		1,494,443
Cash at bank and in hand	16	119,526		129,571
		2,394,989		1,929,836
Creditors: amounts falling due within one year	17	(3,780,778)		(3,417,394)
NET CURRENT LIABILITIES			(1,385,789)		(1,487,558)
TOTAL ASSETS LESS CURRENT LIABILITIES			3,131,159		2,872,967
Creditors: amounts falling due after more than one year	18		(1,422,498)		(1,198,702)
PROVISIONS FOR LIABILITIES
Deferred tax	21	(420,637)		(359,321)
			(420,637)		(359,321)
NET ASSETS			1,288,024		1,314,944

CAPITAL AND RESERVES
Called up share capital	22	400,000	400,000
Revaluation reserve	23	119,225	119,225
Profit and loss account	23	768,799	795,719
		1,288,024	1,314,944

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

D A Cubitt

Director

Date: 30 June 2025

The notes on pages 13 to 27 form part of these financial statements.

Page 10

SUNDOWN PRODUCTS LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2024

	Called up share capital	Revaluation reserve	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2023	400,000	119,225	513,609	1,032,834
COMPREHENSIVE INCOME FOR THE YEAR
Profit for the year	-	-	549,610	549,610
Dividends paid	-	-	(267,500)	(267,500)

At 1 January 2024	400,000	119,225	795,719	1,314,944
COMPREHENSIVE INCOME FOR THE YEAR
Profit for the year	-	-	195,080	195,080
CONTRIBUTIONS BY AND DISTRIBUTIONS TO OWNERS
Dividends paid	-	-	(222,000)	(222,000)
AT 31 DECEMBER 2024	400,000	119,225	768,799	1,288,024

The notes on pages 13 to 27 form part of these financial statements.

Page 11

SUNDOWN PRODUCTS LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2024

			2024	2023
			£	£

CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the financial year	195,080	549,610
ADJUSTMENTS FOR:
Depreciation of tangible assets	529,195	383,949
(Profit)/Loss on disposal of tangible assets	13,222	(24,029)
Interest paid	230,500	226,673
Taxation charge	61,316	216,651
(Increase)/decrease in stocks	(352,103)	191,410
(Increase)/decrease in debtors	(123,095)	631,024
Increase/(decrease) in creditors	117,476	(233,641)
NET CASH GENERATED FROM OPERATING ACTIVITIES	671,591	1,941,647

CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of tangible fixed assets	(411,925)	(1,506,057)
Sale of tangible fixed assets	186,165	68,047
Net cash used in investing activities	(225,760)	(1,438,010)
CASH FLOWS FROM FINANCING ACTIVITIES
New secured loans	400,000	137,000
Repayment of loans	(87,133)	(87,188)
Repayment of finance leases	(415,983)	155,123
Dividends paid	(222,000)	(267,500)
Interest paid	(164,231)	(190,388)
HP interest paid	(66,269)	(36,285)
NET CASH USED IN FINANCING ACTIVITIES	(555,616)	(289,238)
(DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS	(109,785)	214,399
Cash and cash equivalents at beginning of year	(838,743)	(1,053,142)
CASH AND CASH EQUIVALENTS AT THE END OF YEAR	(948,528)	(838,743)

CASH AND CASH EQUIVALENTS AT THE END OF YEAR COMPRISE:
Cash at bank and in hand	119,526	129,571
Bank overdrafts	(1,068,054)	(968,314)
	(948,528)	(838,743)

Page 12

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

1.	GENERAL INFORMATION

The Company is limited by shares and incorporated in England and Wales. The address of the registered office is The Old Mill, Station Road, Tilbrook, Huntingdon, Cambridgeshire, PE28 0JY.
The functional and presentational currency is GBP.

2.ACCOUNTING POLICIES

2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

GOING CONCERN

Management are confident based upon forecasts that the company has adequate resources to continue in operational existence for the foreseeable future being a period of no less than 12 months from the date of approval of these financial statements. They continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3

FOREIGN CURRENCY TRANSLATION

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 13

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.4

TURNOVER

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:

∙the Company has transferred the significant risks and rewards of ownership to the buyer;

∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

∙the amount of turnover can be measured reliably;

∙it is probable that the Company will receive the consideration due under the transaction; and

∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.

2.5

FINANCE COSTS

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.6

BORROWING COSTS

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.7

PENSIONS

Defined contribution pension plan

The Company operates a defined contribution pension scheme for its employees. A defined contribution pension scheme is one under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 14

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.8

CURRENT AND DEFERRED TAXATION

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 15

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.9

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property	-	2% straight line
Plant and machinery	-	Between 10% and 20% straight line
Motor vehicles	-	20% straight line
Fixtures and fittings	-	Between 10% and 20% straight line

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 disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.10

REVALUATION OF TANGIBLE FIXED ASSETS

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

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SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.11

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

2.12

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.13

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.14

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.15

PROVISIONS FOR LIABILITIES

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.16

FINANCIAL INSTRUMENTS

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from banks and other third parties and loans to related parties.

Page 17

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

2.ACCOUNTING POLICIES (CONTINUED)

2.17

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

3.	JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Company's accounting policies, the directors may be 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 associated 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.
Valuation of land
Management judgement is applied in determining the value in use of the land. Judgements are supported by cashflows generated by the land and accompanying buildings.

	Pellets and Bedding	11,547,655	11,704,247

Analysis of turnover by country of destination:

					2024	2023
					£	£

United Kingdom	11,073,278	11,020,427
Rest of Europe	474,377	683,820
	11,547,655	11,704,247

Page 18

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

5.	OTHER OPERATING INCOME
		2024	2023
		£	£

Miscellaneous sales	884	15,430
Sundry income	22,308	-

Research & development charged as an expense	2,164	-
Net foreign exchange (gains) / losses	(3,859)	103,427
Depreciation on fixed assets	529,195	383,949
Loss/(profit) on disposal of tangible fixed assets	13,222	24,029

Fees payable to the Company's auditors for the audit of the Company's financial statements

19,750

17,500

Page 19

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Wages and salaries	1,490,127	1,443,397
Social security costs	155,892	152,607
Cost of defined contribution scheme	33,851	32,644
	1,679,870	1,628,648

The average monthly number of employees, including the directors, during the year was as follows:

	2024	2023
	No.	No.

Administration including Directors	13	11
Production	14	15
Engineers	3	3
Drivers	3	2
Harvest	2	2

	35	33

9.	DIRECTORS' REMUNERATION
		2024	2023
		£	£

	Directors' emoluments	22,204	24,249

There were no retirement benefits accruing to the directors of the Company for the year ended 31 December 2024 or the year ended 31 December 2023.

10.	INTEREST PAYABLE AND SIMILAR EXPENSES
		2024	2023
		£	£

Loan interest payable	69,225	102,322
Interest payable on finance leases and hire purchase contracts	66,269	36,285
Interest payable on factored debts	95,006	88,066
	230,500	226,673

Page 20

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Deferred tax
Origination and reversal of timing differences	61,316	216,651
Total deferred tax	61,316	216,651

Profit on ordinary activities before tax

256,396

766,261

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)	64,099	180,225
Effects of:
Expenses not deductible for tax purposes	3,526	8,537
Adjustments to tax charge in respect of prior periods	(15,000)	-
Short-term timing differences	8,691	3,106
Remeasurement of deferred tax for changes in tax rates	-	12,956
Deferred tax not recognised	-	11,827
Total tax charge for the year	61,316	216,651

FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.

12.	DIVIDENDS
		2024	2023
		£	£

Dividends paid

222,000

267,500

Page 21

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

13.	TANGIBLE FIXED ASSETS

	Freehold property	Plant and machinery	Motor vehicles	Fixtures and fittings	Total
	£	£	£	£	£
Cost or valuation
At 1 January 2024	1,840,145	6,246,691	1,219,515	71,676	9,378,027
Additions	238,146	469,061	176,840	958	885,005
Disposals	-	(209,000)	-	-	(209,000)
At 31 December 2024	2,078,291	6,506,752	1,396,355	72,634	10,054,032
Depreciation
At 1 January 2024	382,491	3,567,414	1,013,311	54,286	5,017,502
Charge for the year on owned assets	35,065	267,976	51,250	7,552	361,843
Charge for the year on financed assets	-	134,132	33,220	-	167,352
Disposals	-	(9,613)	-	-	(9,613)
At 31 December 2024	417,556	3,959,909	1,097,781	61,838	5,537,084
Net book value
At 31 December 2024	1,660,735	2,546,843	298,574	10,796	4,516,948
At 31 December 2023	1,457,654	2,679,277	206,204	17,390	4,360,525

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2024	2023
	£	£


Plant and machinery	908,441	1,090,396
Motor vehicles	153,581	33,960
Furniture, fittings and equipment	84	1,090
	1,062,106	1,125,446

Page 22

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

14.	STOCKS
		2024	2023
		£	£

Raw materials and consumables	268,755	216,819
Finished goods and goods for resale	389,170	89,003
	657,925	305,822

15.

DEBTORS

					2024	2023
					£	£


Factored debts	1,514,878	1,296,670
Other debtors	83,719	181,668
Prepayments and accrued income	18,941	16,105
	1,617,538	1,494,443

16.	CASH AND CASH EQUIVALENTS
		2024	2023
		£	£

Cash at bank and in hand	119,526	129,571
Less: bank overdrafts	(1,068,054)	(968,314)
	(948,528)	(838,743)

Page 23

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

17.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
		2024	2023
		£	£

Bank overdrafts	1,068,054	968,314
Bank loans (note 17)	127,342	65,134
Trade creditors	1,398,686	1,381,195
Other taxation and social security	66,158	78,633
Obligations under finance lease and hire purchase contracts (note 18)	387,289	303,329
Other creditors	326,840	307,770
Accruals and deferred income	406,409	313,019
	3,780,778	3,417,394

Bank overdrafts of £1,068,054 (2023 - £968,314) outstanding at 31 December 2024 are secured by a charge over the Company's factored debts, as disclosed in note 15. Interest paid in relation to this facility being £95,006 (2023 - £88,066).
Lloyds Bank Plc holds fixed charges secured over the site at Station Road, Tilbrook, Huntingdon and the land at Manor Farm, Old Western Huntingdon and a floating debenture over the wider assets of the company.

18.	CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
		2024	2023
		£	£

Bank loans (note 17)	763,233	512,574
Obligations under finance lease and hire purchase contracts (note 18)	659,265	686,128
	1,422,498	1,198,702

Page 24

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Bank loans falling due within one year	127,342	65,134
Bank loans falling due 1-2 years	638,958	344,956
Bank loans falling due 2-5 years	124,275	167,618
	890,575	577,708

Bank loans comprise a Coronavirus Business Interruption Loan Scheme (CBILS) loans, which was drawn down in September 2020. Fees and interest incurred within the first 12 months were paid by the UK Government. After this 12 month period, interest has been charged at 2.5%.

Within one year	387,289	303,329
Between 1-5 years	659,265	686,128
	1,046,554	989,457

Obligations under finance leases and hire purchase contracts are secured on the assets that they relate to.

21.	DEFERRED TAXATION

	2024	2023
	£	£

At beginning of year	359,321	142,670
Charged to profit or loss	61,316	216,651
At end of year	420,637	359,321

Page 25

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

21.DEFERRED TAXATION (CONTINUED)

The provision for deferred taxation is made up as follows:
	2024	2023
	£	£

Short term timing differences	(584,608)	(589,530)
Tax losses carried forward	163,971	230,209
	420,637	359,321

22.	SHARE CAPITAL
		2024	2023
		£	£

Allotted, called up and fully paid

400,000 (2023 - 400,000) Ordinary shares of £1.00 each	400,000	400,000

23.

RESERVES

Revaluation reserve

This includes all current and prior periods revaluation of land and buildings.

Profit and loss account

This includes all current and prior period retained profits and losses.

24.	ANALYSIS OF NET DEBT

		At 1 January 2024	Cash flows	New finance leases	At 31 December 2024
		£	£	£	£

Cash at bank and in hand	129,571	(10,045)	-	119,526
Bank overdrafts	(968,314)	(99,740)	-	(1,068,054)
Debt due after 1 year	(512,574)	(250,659)	-	(763,233)
Debt due within 1 year	(372,904)	(81,278)	-	(454,182)
Finance leases	(989,457)	(417,793)	360,696	(1,046,554)
	(2,713,678)	(859,515)	360,696	(3,212,497)

Page 26

SUNDOWN PRODUCTS LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

25.	PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £33,851 (2023 - £32,644). Contributions totalling £7,626 (2023 - £6,600) were payable to the fund at the balance sheet date and are included in other creditors.

26.	TRANSACTIONS WITH DIRECTORS
	As at 31 December 2024 the directors had a loan owing to the company for £116,937 (2023 - £48,437). This loan is interest free and repayable on demand.

27.	CONTROLLING PARTY

The ultimate controling party of the Company is Mr & Mrs Cubitt by virtue of thier majority shareholding.

Page 27