G.H. Chennells (Farms) Limited


Directors	M G Chennells
	P E Chennells
	K J Leddington-Hill
	B T Wills


Company Secretary	C F Overton


Registered Address	The Estate Office Eagle Hall
	Swinderby
	Lincoln
	LN6 9HZ


Registered Number	01244279 (England and Wales)

Notes to the Financial Statements
for the year ended 31 March 2025

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.

	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.

	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.

	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
	Intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. Amortisation is included in 'administrative expenses' in the profit and loss account.

	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	17

	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.

Investments

Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value where the difference between cost and fair value is material. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.

	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 balance sheet. They are depreciated over the shorter of their useful lives or the term of the lease.

	Stocks and work in progress
	Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. The cost methodology employed by the entity is the first-in first-out method. Estimated selling price less costs to complete and sell are derived from the selling price which the goods would fetch in an open market transaction with established customers less the costs expected to be incurred to enable the sale to complete. Provision is made for slow-moving and obsolete items of stock. Such provisions are recognised in profit or loss. Work in progress is valued using the percentage of completion method and values are calculated using the lower of cost and estimated selling price less costs to complete and sell. When stocks are sold, the carrying amount of those stocks is recognised as an expense within cost of sales. This takes place in the same period that the associated revenue is recognised.

Stocks and work in progress

Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. The cost methodology employed by the entity is the first-in first-out method. Estimated selling price less costs to complete and sell are derived from the selling price which the goods would fetch in an open market transaction with established customers less the costs expected to be incurred to enable the sale to complete. Provision is made for slow-moving and obsolete items of stock. Such provisions are recognised in profit or loss.

Work in progress is valued using the percentage of completion method and values are calculated using the lower of cost and estimated selling price less costs to complete and sell. When stocks are sold, the carrying amount of those stocks is recognised as an expense within cost of sales. This takes place in the same period that the associated revenue is recognised.

2.	Average number of employees


		2025		2024
	Average number of employees during the year	22		28

3.	Intangible assets

	Other	Total
	£	£
Cost or valuation
At 01 April 24	3,474	3,474
At 31 March 25	3,474	3,474
Amortisation and impairment
At 01 April 24	3,474	3,474
At 31 March 25	3,474	3,474
Net book value
At 31 March 25	-	-
At 31 March 24	-	-

4.	Tangible fixed assets

	Plant & machinery	Total
	£	£
Cost or valuation
At 01 April 24	10,775,471	10,775,471
Additions	789,576	789,576
Disposals	(298,091)	(298,091)
At 31 March 25	11,266,956	11,266,956
Depreciation and impairment
At 01 April 24	6,963,338	6,963,338
Charge for year	683,494	683,494
On disposals	(229,022)	(229,022)
At 31 March 25	7,417,810	7,417,810
Net book value
At 31 March 25	3,849,146	3,849,146
At 31 March 24	3,812,133	3,812,133

5.	Fixed asset investments

	Other investments¹	Total
	£	£
Cost or valuation
At 01 April 24	9,323	9,323
Revaluations	(5,734)	(5,734)
At 31 March 25	3,589	3,589
Net book value
At 31 March 25	3,589	3,589
At 31 March 24	9,323	9,323

	Notes
	¹Other investments other than loans

6.	Stocks

	2025	2024
	£	£
Other stocks	2,745,390	3,048,711
Total	2,745,390	3,048,711

7.	Debtors: amounts due within one year

	2025	2024
	£	£
Trade debtors / trade receivables	766,710	645,370
Amounts owed by group undertakings	67,764	95,022
Other debtors	670,712	1,051,882
Prepayments and accrued income	43,924	186,630
Total	1,549,110	1,978,904

8.	Creditors: amounts due within one year

	2025	2024
	£	£
Trade creditors / trade payables	867,184	784,026
Bank borrowings and overdrafts	1,840,403	3,471,812
Taxation and social security	14,015	9,795
Finance lease and HP contracts	588,589	539,479
Other creditors	643,601	977,446
Accrued liabilities and deferred income	163,488	70,839
Total	4,117,280	5,853,397


	The bank borrowings and overdrafts and the finance lease liabilities are secured creditors.

9.	Creditors: amounts due after one year

	2025	2024
	£	£
Bank borrowings and overdrafts	1,219,067	406,450
Other creditors	477,117	592,186
Total	1,696,184	998,636


	The bank borrowings and overdrafts and the other creditors are secured creditors.

10.	Obligations under finance leases

		2025		2024
		£		£
	Finance lease and HP contracts	477,117		592,186

11.	Provisions for liabilities

	2025	2024
	£	£
Net deferred tax liability (asset)	935,140	864,064
Total	935,140	864,064

12.	Related party transactions
	Summary of transactions with parent The company benefits from the use of land and buildings owned by its parent company, Eagle Hall Estates Limited, for a nominal rent due under a Farm Business Tenancy. A loan account exists between the company and its parent. At the year end, the amount due from Eagle Hall Estates Limited was £67,764 (2024 - £95,022). Summary of transactions with other related parties MC2 London Ltd During the year under review sales invoices of £152,951 were issued in the normal course of business to MC2 London Ltd, a company of which M G Chennells, one of the directors of this company is also a director.

12.

Related party transactions

Summary of transactions with parent

The company benefits from the use of land and buildings owned by its parent company, Eagle Hall Estates Limited, for a nominal rent due under a Farm Business Tenancy.

A loan account exists between the company and its parent. At the year end, the amount due from Eagle Hall Estates Limited was £67,764 (2024 - £95,022).

Summary of transactions with other related parties

MC2 London Ltd
During the year under review sales invoices of £152,951 were issued in the normal course of business to MC2 London Ltd, a company of which M G Chennells, one of the directors of this company is also a director.

	Notes	2025		2024
		£	£	£	£
Fixed assets
Tangible assets	4		3,849,146		3,812,133
Investments	5		3,589		9,323
			3,852,735		3,821,456
Current assets
Stocks	6	2,745,390		3,048,711
Debtors	7	1,549,110		1,978,904
Cash at bank and on hand		5,131		5,976
		4,299,631		5,033,591
Creditors amounts falling due within one year	8	(4,117,280)		(5,853,397)
Net current assets (liabilities)			182,351		(819,806)
Total assets less current liabilities			4,035,086		3,001,650
Creditors amounts falling due after one year	9		(1,696,184)		(998,636)
Provisions for liabilities	11		(935,140)		(864,064)
Net assets			1,403,762		1,138,950
Capital and reserves
Called up share capital			8,300		8,300
Share premium			4,800		4,800
Profit and loss account			1,390,662		1,125,850
Shareholders' funds			1,403,762		1,138,950