Crow Hall Farms Limited
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Notes to the Accounts |
For the year ended 30 November 2017
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1 |
Accounting policies |
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Statutory information |
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The company is a private company, limited by shares, domiciled in England and Wales and whose registered number is 01269154. The registered office is located at Crow Hall Farm, Bardon Mill, Hexham, Northumberland, NE47 7BJ. |
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Compliance with accounting standards |
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The financial statements are prepared in accordance with the provisions of FRS102 Section1A small entities. There were no material departures from that standard. |
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The principal accounting policies adopted in the presentation of the financial statements are set out below. |
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These financial statements for the year ended 30th November 2017 are the first financial statements that comply with FRS 102 Section 1A small entities. The date of transition is 1 December 2016. The transition to FRS 102 Section 1A small entities has resulted in changes in the accounting policies to those used previously. The nature of these changes and their impact on opening equity and profit for the comparative period are explained in the notes to the accounts. |
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The financial statements have been prepared under the historical cost convention as modified for the revaluation of certain fixed assets. |
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Intangible assets |
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Intangible assets which comprise basic farm payment entitlements are included at fair value. Fair value is considered at each reporting date and any changes in fair value are recognised in the profit and loss account. The entitlements are being amortised over four years. Deferred tax is provided on these gains at the rate expected to apply when the entitlements are sold. |
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Property, plant and equipment assets and depreciation |
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Property, plant and equipment assets are stated at cost less depreciation and impairment. Depreciation is provided at the rates calculated to write off the cost of fixed assets over their expected useful lives on the following bases:
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Freehold land & woodlands |
No depreciation |
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Buildings and improvements |
4% reducing balance |
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Plant and machinery |
15% reducing balance |
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Investment property |
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Investment properties are included at fair value. Fair value is considered at each reporting date and any changes in fair value are recognised in the profit and loss account. Deferred tax is provided on these gains at the rate expected to apply when the property is sold.
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Finance leases or hire purchase contracts and leasing |
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Assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of finance charges, are included in creditors. Finance charges are charged to profits using the effective interest method or similar bases.
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Rental payments under operating lease are charged to the profit and loss account on a straight line basis over the period of the lease. |
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Inventories |
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Inventories have been valued at the lower of cost and estimated selling price less costs to sell.
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1 |
Accounting policies ~ continued |
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Biological assets |
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Biological assets, being living plants and animals, are included at the lower of cost and estimated selling price less costs to sell. Depreciation is provided at rates calculated to write off the cost of breeding animals over their expected productive lives on the following bases:
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Breeding cattle |
10% reducing balance |
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Breeding sheep |
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4% reducing balance |
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Income recognition |
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Income is recognised when goods have been delivered to customers such that the risks and rewards of ownership have been transferred to them.
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Deferred tax |
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Deferred taxation is provided on the liability method to take account of the timing differences between the treatment of certain items for financial statements and their tax treatment for tax purposes. Tax deferred or accelerated is accounted for in respect of material timing differences.
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Government grants |
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Income grants are recognised on an accruals basis.
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate.
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2 |
Employees |
2017 |
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2016 |
Number |
Number |
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Average number of persons employed by the company |
4 |
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4 |
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3 |
Intangible fixed assets |
£ |
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Basic farm payment entitlements |
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Cost |
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At 1 December 2015 |
13,158 |
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Fair Value movement |
110,350 |
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At 30 November 2016 |
123,508 |
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Amortisation |
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At 1 December 2015 |
(3,347) |
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Provided during the year |
(30,877) |
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At 30 November 2016 |
(34,224) |
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Net book value |
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At 30 November 2016 |
89,284 |
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Cost |
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At 1 December 2016 |
123,508 |
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Additions |
- |
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Impairment |
(10,494) |
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At 30 November 2017 |
113,014 |
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Amortisation |
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At 1 December 2016 |
(34,224) |
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Provided during the year |
- |
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On impairment |
5,970 |
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At 30 November 2017 |
(28,254) |
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Net book value |
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At 30 November 2017 |
84,760 |
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4 |
Tangible fixed assets |
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Freehold land |
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Buildings & improvements |
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Plant and machinery |
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Total |
£ |
£ |
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Cost |
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At 1 December 2016 |
1,292,900 |
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482,494 |
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338,914 |
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2,114,308 |
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Additions |
- |
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31,733 |
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79,818 |
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111,551 |
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Disposals |
- |
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(9,803) |
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(53,217) |
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(63,020) |
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At 30 November 2017 |
1,292,900 |
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504,424 |
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365,515 |
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2,162,839 |
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Depreciation |
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At 1 December 2016 |
- |
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210,802 |
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129,904 |
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340,706 |
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Charge for the year |
- |
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10,989 |
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34,420 |
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45,409 |
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On disposals |
- |
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(5,170) |
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(36,871) |
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(42,041) |
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At 30 November 2017 |
- |
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216,621 |
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127,453 |
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344,074 |
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Net book value |
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At 30 November 2017 |
1,292,900 |
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287,803 |
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238,062 |
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1,818,765 |
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At 30 November 2016 |
1,292,900 |
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271,692 |
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209,010 |
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1,773,602 |
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5 |
Investment Properties |
£ |
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Additions at cost |
179,651 |
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Net gains from fair vale adjustments |
416,370 |
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Fair value at 30 November 2016 |
596,021 |
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Net gains from fair vale adjustments |
3,979 |
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Fair value at 30 November 2017 |
600,000 |
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The historical cost of the investment properties has been estimated as £179,651 and has been transferred out of freehold land. |
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6 |
Biological Assets |
£ |
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Breeding livestock |
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Cost |
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As at 1 December 2016 |
249,256 |
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Net changes in the year |
(2,236) |
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As at 30 November 2017 |
247,020 |
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Depreciation |
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As at 1 December 2016 |
(43,043) |
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Recoveries on disposals in the year |
14,177 |
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Charge for the year |
(36,327) |
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As at 30 November 2017 |
(65,193) |
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Net book value |
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As at 30 November 2017 |
181,827 |
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As at 30 November 2016 |
206,213 |
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7 |
Inventories |
2017 |
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2016 |
£ |
£ |
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Biological assets being trading livestock |
27,570 |
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37,140 |
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Deadstock & other stocks |
50,826 |
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37,798 |
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78,396 |
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74,938 |
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8 |
Debtors |
2017 |
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2016 |
£ |
£ |
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Trade debtors |
202,054 |
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138,034 |
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Value added tax |
8,712 |
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8,206 |
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Other debtors |
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19,013 |
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210,766 |
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165,253 |
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9 |
Creditors: amounts falling due within one year |
2017 |
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2016 |
£ |
£ |
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Bank loans and overdrafts |
226,265 |
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3,342 |
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Obligations under finance lease and hire purchase contracts |
6,350 |
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16,551 |
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Trade creditors |
35,970 |
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22,893 |
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Taxation and social security costs |
- |
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1,744 |
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Other creditors |
8,216 |
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188,000 |
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276,801 |
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232,530 |
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A mortgage dated 10th July 2009 over the company's assets was created by the company for securing all monies due or to become due from the company to Lloyds TSB plc on any account whatsoever. |
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The amounts due under hire purchase obligations are secured on the assets to which they relate. |
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10 |
Creditors: amounts falling due after one year |
2017 |
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2016 |
£ |
£ |
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Obligations under finance lease and hire purchase contracts |
37,830 |
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21,584 |
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Other creditors |
1,050,120 |
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1,070,265 |
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1,087,950 |
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1,091,849 |
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The amounts due under hire purchase obligations are secured on the assets to which they relate. |
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11 |
Share capital |
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2017 |
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2016 |
£ |
£ |
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£ |
Authorised |
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Allotted and fully paid |
Authorised |
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Allotted and fully paid |
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Ordinary shares of £1 each |
10,000 |
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111 |
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10,000 |
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111 |
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12 |
Related party transactions |
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Finance for the company is provided by the directors of the company by way of loans on an interest free basis with the amounts owing to and by the directors being disclosed in notes 8 (within other debtors), 9 and 10 (within other creditors). There is no set date for the repayment of these loans. No amounts have been written off or waived. Should any loan become overdrawn the deficit amount is repayable to the company at the earliest opportunity.
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Included within other debtors is a loan to a director of £nil (2016: £19,013). During the year the amount advanced in 2016 was repaid. |
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13 |
Reconciliation of equity |
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30th November 2016 |
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As previously stated |
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Effect of transition |
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FRS102 (as restated) |
£ |
£ |
£ |
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Fixed assets |
2,210,358 |
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454,762 |
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2,665,120 |
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Current assets |
274,597 |
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- |
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274,597 |
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Creditors - amounts falling due within one year |
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(232,530) |
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(232,530) |
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Net current assets |
42,067 |
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0 |
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42,067 |
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Total assets less current liabilities |
2,252,425 |
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454,762 |
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2,707,187 |
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Creditors - amounts falling due after more than one year |
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(1,091,849) |
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(23,568) |
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(1,115,417) |
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Net assets |
1,160,576 |
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431,194 |
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1,591,770 |
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Capital and reserves |
1,160,576 |
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431,194 |
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1,591,770 |
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14 |
Notes to reconciliation |
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The company has restated the figures for the year ended 30th November 2016 to comply with the provisions of FRS102 in so far as they are applicable. Where adjustments have been judged to make no material difference to the company's equity position no adjustment has been made. |