REGISTERED NUMBER: SC098093 (Scotland)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2025

FOR

ABERDEEN & NORTHERN EGGS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

17

DIRECTORS:

Robert Burr Chapman

Mrs Ethel Mary Chapman

Iain Robert Chapman

Mrs Deborah Ann Chapman

SECRETARY:

Mrs Ethel Mary Chapman

REGISTERED OFFICE:

Anderson House

9-15 Frithside Street

Fraserburgh

Aberdeenshire

AB43 9AR

REGISTERED NUMBER:

SC098093 (Scotland)

AUDITORS:

Leiper & Summers

Registered Auditors

4 Charlotte Street

Fraserburgh

Aberdeenshire

AB43 9JE

The directors present their strategic report for the year ended 31 May 2025.

REVIEW OF BUSINESS

The principal activities of the company are agriculture and production and sale of fresh eggs.

KPIs

The company uses a number of KPIs to monitor financial as well as operational performance.

Gross profit percentage for the year is 26% with a Net Profit after tax of 14%.

Sales growth in turnover is 18% and in production volume of 3%.

PRINCIPAL RISKS AND UNCERTAINTIES

The company gives appropriate consideration to risk management, objectives and policies. The principal risks and uncertainties facing the company, and the directors' approach to mitigating them, are as follows:-

1. Competitive pressure resulting in the potential loss of key customers to competitors

One of the main risks to the business would be the loss of a major customer; to combat this we have continual two-way dialogue with our customers. We are pleased that we have been able to secure long-term contracts with two of the major discount retailers for sole supply to Scotland. We also maintain the highest production standards on site and provide first class customer service to all. We try not to become complacent and strive to always improve, as is evidenced by the continuing investment upgrade in plant and machinery and operating procedures.

2. Outbreak of disease

The ever-present threat of an Avian Influenza outbreak, and subsequent restrictions would place the supply processes under severe pressure. This year has seen 100 confirmed outbreaks in the UK with the outbreaks spread across all regions. The AI issue in Europe continues to be a concern with migrating birds carrying the disease across Europe with Germany and France recording their highest number of outbreaks. Our biggest threat is from migrating geese and swans and across the country there has been a large number of wild birds and raptors succumbed to the disease. As a company we must remain ever vigilant, keeping our biosecurity at the highest level. Our supply chain of Scottish producers must also exercise a high level of biosecurity so as not to put us and the supply chain at risk. The directors strictly follow all government guidance and advice to keep this risk to a minimum.

3. Supply to the market

Sales orders continue to increase, and we as a company need to ensure that we have sufficient supply to meet these demands. Free range continues to grow with our customer base, and this will be where the company continues to expand production base in coming years. Barn sales have been strong, and we may look to add to this production type too. Colony sales have declined since some customers pledged to stop selling colony eggs by 2025 which has impacted the business. There is still a place for colony eggs in the food service sector, and the directors need to monitor the supply and demand balance at all times, and this applies to all production types, while still growing the number of birds required to meet customer needs.

SECTION 172(1) STATEMENT

During the year the directors have complied with their duty with regards to the matters in section 172 (1) (a)-(f) of the Companies Act 2006. The directors believe that they have acted in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its stakeholders as a whole.

The directors believe it is important that the values and principles which guide the company are clearly defined, both internally and externally, in order to ensure that all company activities are implemented in compliance with the relevant laws and in the context of fair competition, honesty, integrity, fairness and in good faith which would promote the success of the company for the benefit of its owners having regard to the interest of all its stakeholders; shareholders, employees, suppliers, customers, government / tax authorities, community and environment.

The directors anticipate the business environment will remain competitive. They believe that the company is in a good financial position and that the risks that have been identified are being well managed. With careful focus on appropriate diversification and development, as well as continuing review of the market and the activities of competitors, the directors are confident in the company's ability to maintain and build on this position, albeit with cautious growth expectations.

We prioritise building strong partnerships with our producers, and we believe in working together collaboratively to achieve our goals. We see our producers as an extension of our own farm, so they operate to the same strict standards as ourselves. We work closely with our producers to ensure we get the best eggs from the best hens.

Key members of staff remain very loyal, and although staff recruitment and retention could be challenging at times, staff retention is good and we must thank all our staff for the hard work and diligence, which has enabled us to continue to service our customers orders and deliveries. We still have a few members of staff from EU countries, who have been employed with us for a considerable number of years and are very settled in the UK. They have all gained their residency and therefore have a secure future. We have also been able to sponsor and support some Filipino workers with their work visa requirements. This move has worked well for us, and they are very happy with the small community they have become part of at Farmlay.

CAPITAL INVESTMENT AND SIGNIFICANT CHANGES

We continue to invest heavily in our business and over the past year we have spent nearly £5.2M in improvements with further expansion in production, additional dispatch space in the packing centre and the installation of a second egg grading machine to give us flexibility and options to handle niche product for our customers. The new staff area facilities are now all complete and the office extension and revamp has also been finished. We have also purchased additional land with a total spend of £253K. We continue to grow our own bird numbers with the addition of a new henhouse and significant property improvements of older buildings, repurposing them for rearing pullets and laying birds.

SALES AND PROFIT

Turnover was up on last year by 18% from £44.7M to £52.7M, gross profit was up from £10.8M to £13.9M and profit before tax was up from £5.0M to £9.0M for the year ended 31st May 2025.

The directors are pleased with the results for this year considering the continued uncertainty of the current economic climate and a scarcity of product on the general egg market. The long-term agreements we have with our customers is strengthening the confidence in the egg markets and we are seeing a keen interest from potential new producers as well as robust growth plans from our existing producer base to expand their businesses going forward. This is all very positive for the egg sector and with egg consumption still growing, especially with the younger generations, it can only be good news for the industry. The strategy of keeping all aspects of rearing and production, along with distribution under the control of the company, will continue to keep the business competitive.

BALANCE SHEET

The balance sheet is strong and continues to strengthen. With total equity of £38.7M compared to £31.5M in 2024. Most of the investments this year have been financed by using retained profits. Any future investments planned would continue to be funded from a mix of the company's own resources, and bank loan/overdraft facility when required.

ENVIRONMENT

Aberdeen & Northern Eggs recognises the importance of their environmental responsibilities, and as a company have already invested heavily in renewable energy as a means of cutting our carbon footprint. Wind Turbines, Solar Panels and Bio-mass boilers have all been part of helping to reduce energy costs. A further 500Kw of Solar panels have been fitted in this financial year, bringing us to 1Mw of solar production, this is helping to further cut our carbon footprint. All these measures demonstrate the positive steps being made to see an improvement in the environment, and the use of sustainable energy. We also keep our fleet of lorries and trailers up to the latest emission standards. A further 2 double deck trailers were purchased to reduce fuel usage, optimise journey routes and reduce food miles and emissions.

As farmers we are involved in several Land Management Schemes on our farms, once again we have planted over 4000 trees this year, a great achievement and something we are immensely proud of. Part of this strategy has included planting trees as part of the King's Forest initiative. We always farm the land with the environment very much in mind for the wildlife and supporting pasture and habitat areas to enhance the countryside.

EMPLOYEES

Wage costs during this financial year have increased, due to an above inflation wage increase to all employees. Although the number of eggs packed has increased, staff numbers are only slightly up and our investment in automation within the pack house means we have been able to control costs. The split of office staff, drivers and packing staff remaining similar. All members of staff are on or above the living wage introduced in April 2023. The company continue to operate the Auto Enrolment pension scheme with most staff enrolling in the scheme.

The directors recognise the environmental impact of the use of energy, water and waste. The Company's main area of energy usage was the purchase of fuel used for the operation of machinery. The company consider energy consumption on an ongoing basis, and we continue to look for improvements where possible. The company monitors closely its energy usage and changes were made where appropriate.

ON BEHALF OF THE BOARD:

Iain Robert Chapman - Director

27 May 2026

The directors present their report with the financial statements of the company for the year ended 31 May 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of agriculture and production of eggs.

DIVIDENDS

No dividends will be distributed for the year ended 31 May 2025.

RESEARCH AND DEVELOPMENT

The company is currently undertaking research and development to improve the performance of the company.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2024 to the date of this report.

Robert Burr Chapman

Mrs Ethel Mary Chapman

Iain Robert Chapman

Mrs Deborah Ann Chapman

DONATIONS

The company made charitable donations during the year of £3,000.

STREAMLINED ENERGY AND CARBON REPORTING

UK Greenhouse gas emissions and energy use data for the period 1 June 2024 to 31 May 2025

2024/25

2023/24

Total annual energy consumption (mWh)

9,411

8,214

Scope 1 emissions

Emissions from combustion of gas and fuel for transport purposes (tC02e)

1,860

1,563

Scope 2 emissions

Emissions from purchase of electricity (tC02e)

270

335

Total gross tC02e

2,130

1,898

Intensity Ratio: tC02e gross figure / £m turnover)

40

42

Total net tC02e

967

1,222

Intensity Ratio net: tC02e net figure / £m turnover)

18

27

The company have calculated the annual consumption of energy using GHG reporting protocols. The energy emissions is calculated using the UK Government GHG conversion factors for company reporting.

The chosen intensity measurement ratio is total gross emissions in metric tonnes C02e per £million turnover.

Energy Efficiency Actions

We are committed to reducing our carbon emissions in line with government targets and our own strategy.

The company take their responsibilities very seriously and to that end have invested heavily in the renewable sector.

We have installed an 800kWh Wind turbine which supplies the main production site at Strichen with electricity and all surplus electricity is fed into the National Grid. The company also operate 6 Bio-mass boilers which generates heat for poultry sheds, packing facility, grain drying at harvest and drying hen manure prior to storage. The fuel used is wood chippings which is felled from our company owed woodlands. There has also been a large investment in Solar panels, which are situated on many buildings and all new production facilities have panels installed to utilise the extra long day light hours during the summer months in North-East Scotland.

We also run a fleet of lorries which are all Category E6 for carbon emissions. We also operate 6 double deck trailer units which enables us to carry more product in comparison to a normal single deck lorry for longer distance work.

All of the above helps us with our carbon compliance.

DIRECTORS' RESPONSIBILITIES STATEMENT

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

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

Leiper & Summers is deemed to be reappointed under section 487(2) of the Companies Act 2006.

ON BEHALF OF THE BOARD:

Iain Robert Chapman - Director

27 May 2026

Opinion

We have audited the financial statements of Aberdeen & Northern Eggs Limited (the 'company') for the year ended 31 May 2025 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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 May 2025 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 UK, including the FRC'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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 six, 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 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.

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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

- UK GAAP

- Companies Act 2006

- Corporation Tax legislation

- VAT legislation

- Employment law

- Food safety & hygiene regulations

- Animal welfare regulations

We gained an understanding of how the company is complying with these laws and regulations by making enquiries of management. We corroborated these enquiries through our review of submitted returns, external inspections and relevant correspondence with regulatory bodies.

We assessed the susceptibility of the company's financial statements to material misstatement, whether due to fraud or error, by meeting with management to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk.

The following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

- Reviewing level and reasoning behind the company's procurement of legal and professional services; and

- Performing audit work procedures 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 reviewing judgements made by management in their calculation of accounting estimates for potential management bias.

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Susan M Hepburn CA ATT (Senior Statutory Auditor)

for and on behalf of Leiper & Summers

Registered Auditors

4 Charlotte Street

Fraserburgh

Aberdeenshire

AB43 9JE

27 May 2026

TURNOVER

4

52,699,274

44,662,445

Cost of sales

38,796,578

33,876,663

GROSS PROFIT

13,902,696

10,785,782

Administrative expenses

5,471,019

6,870,708

8,431,677

3,915,074

Other operating income

631,179

1,208,513

OPERATING PROFIT

6

9,062,856

5,123,587

Income from participating interests

122,800

100,968

Interest receivable and similar income

7

136,304

95,894

259,104

196,862

9,321,960

5,320,449

Interest payable and similar expenses

8

283,214

360,302

PROFIT BEFORE TAXATION

9,038,746

4,960,147

Tax on profit

9

1,916,124

830,443

PROFIT FOR THE FINANCIAL YEAR

7,122,622

4,129,704

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

7,122,622

4,129,704

FIXED ASSETS

Intangible assets

11

30,000

-

Tangible assets

12

34,742,771

32,626,315

Investments

13

278,344

310,544

35,051,115

32,936,859

CURRENT ASSETS

Stocks

14

2,026,545

2,824,632

Debtors

15

6,527,848

4,468,814

Biological assets

16

1,095,066

1,279,278

Cash at bank

7,711,343

6,174,682

17,360,802

14,747,406

CREDITORS

Amounts falling due within one year

17

7,722,855

8,372,394

NET CURRENT ASSETS

9,637,947

6,375,012

TOTAL ASSETS LESS CURRENT LIABILITIES

44,689,062

39,311,871

CREDITORS

Amounts falling due after more than one year

18

(2,119,589

)

(4,445,994

)

PROVISIONS FOR LIABILITIES

22

(2,195,899

)

(1,410,376

)

DEFERRED INCOME

23

(1,712,575

)

(1,917,124

)

NET ASSETS

38,660,999

31,538,377

CAPITAL AND RESERVES

Called up share capital

24

50,000

50,000

Retained earnings

25

38,610,999

31,488,377

SHAREHOLDERS' FUNDS

38,660,999

31,538,377

The financial statements were approved by the Board of Directors and authorised for issue on 27 May 2026 and were signed on its behalf by:

Iain Robert Chapman - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2023

50,000

27,363,936

27,413,936

Changes in equity

Dividends

-

(5,263

)

(5,263

)

Total comprehensive income

-

4,129,704

4,129,704

Balance at 31 May 2024

50,000

31,488,377

31,538,377

Changes in equity

Total comprehensive income

-

7,122,622

7,122,622

Balance at 31 May 2025

50,000

38,610,999

38,660,999

Cash flows from operating activities

Cash generated from operations

1

9,205,699

10,466,030

Interest paid

(223,088

)

(257,775

)

Interest element of hire purchase payments paid

(60,126

)

(102,527

)

Net cash from operating activities

8,922,485

10,105,728

Cash flows from investing activities

Purchase of intangible fixed assets

(30,000

)

-

Purchase of tangible fixed assets

(5,237,652

)

(4,569,597

)

Sale of tangible fixed assets

277,000

172,850

Fixed asset investments withdrawal

155,000

100,000

Interest received

136,304

95,894

Net cash from investing activities

(4,699,348

)

(4,200,853

)

Cash flows from financing activities

Loan repayments in year

(1,850,778

)

(444,688

)

New hire purchase in year

-

176,624

New grants in year

-

249,966

Capital repayments in year

(835,698

)

(1,110,964

)

Equity dividends paid

-

(5,263

)

Net cash from financing activities

(2,686,476

)

(1,134,325

)

Increase in cash and cash equivalents

1,536,661

4,770,550

Cash and cash equivalents at beginning of year

2

6,174,682

1,404,132

Cash and cash equivalents at end of year

2

7,711,343

6,174,682

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

9,038,746

4,960,147

Depreciation charges

2,992,010

2,882,475

Profit on disposal of fixed assets

(147,814

)

(76,083

)

Government grants

(204,550

)

(243,590

)

Finance costs

283,214

360,302

Finance income

(259,104

)

(196,862

)

11,702,502

7,686,389

Decrease/(increase) in stocks

982,299

(641,071

)

Increase in trade and other debtors

(2,059,034

)

(51,681

)

(Decrease)/increase in trade and other creditors

(1,420,068

)

3,472,393

Cash generated from operations

9,205,699

10,466,030

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2025

31.5.25

1.6.24

£

£

Cash and cash equivalents

7,711,343

6,174,682

Year ended 31 May 2024

31.5.24

1.6.23

£

£

Cash and cash equivalents

6,174,682

1,404,132

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.24

Cash flow

At 31.5.25

£

£

£

Net cash

Cash at bank

6,174,682

1,536,661

7,711,343

6,174,682

1,536,661

7,711,343

Liquid resources

Current asset investments

1,279,278

(184,212

)

1,095,066

1,279,278

(184,212

)

1,095,066

Debt

Finance leases

(1,921,598

)

835,699

(1,085,899

)

Debts falling due within 1 year

(588,713

)

87,888

(500,825

)

Debts falling due after 1 year

(3,358,189

)

1,762,890

(1,595,299

)

(5,868,500

)

2,686,477

(3,182,023

)

Total

1,585,460

4,038,926

5,624,386

1.	STATUTORY INFORMATION

Aberdeen & Northern Eggs Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Significant judgements and estimates

In the application of the company's accounting policies, the director are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Useful lives and depreciation of fixed assets

Depreciation rates are based on the estimated useful lives of assets, which is judgement exercised by management taking into account actual experience.

Bird stock valuation

The number of birds at the year end is calculated by looking at the age of the birds at the year end taking into account typical mortality rates. The value of bird stock is calculated by taking the purchase price of a bird and the cost of its feed.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts. Turnover is recognised at the point of dispatch.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

nil and 4% straight line

Assets under construction

-

not depreciated

Plant and machinery

-

5% straight line & 10% and 20% reducing

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

20% on reducing balance

The directors consider it inappropriate to depreciate land as the market value of the land exceeds the cost per the accounts.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Bird stock is valued at cost and depreciated over its expected useful life and chick stock is valued at cost.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.