Crow Hall Farms Limited
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Notes to the Accounts |
For the year ended 30 November 2018
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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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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 from 1st December 2016. 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 |
Interest payable |
2018 |
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2017 |
£ |
£ |
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Bank overdraft and other short term borrowings |
4,557 |
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3,132 |
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Finance leases and hire purchase contracts |
1,401 |
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1,374 |
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5,958 |
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4,506 |
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3 |
Other operating income |
2018 |
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2017 |
£ |
£ |
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Wayleaves |
2,845 |
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3,682 |
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Fair value gains on investment properties |
- |
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- |
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Fair value gains on intangible assets |
- |
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- |
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2,845 |
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3,682 |
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4 |
Employees |
2018 |
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2017 |
Number |
Number |
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Average number of persons employed by the company |
4 |
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4 |
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5 |
Tax on ordinary activities |
2018 |
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2017 |
£ |
£ |
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Tax on ordinary profits |
(1,744) |
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- |
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Deferred tax |
(3,789) |
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(5,525) |
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(5,533) |
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(5,525) |
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The company has tax losses of £299,955 ( 2017 : £269,703 ) and capital losses of £123,685 (2017: £123,685) available to carry forward to offset future profits and gains. |
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6 |
Intangible fixed assets |
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Basic farm payment entitlements |
£ |
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Cost |
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At 1 December 2017 |
113,014 |
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Additions |
- |
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Impairment |
(6,793) |
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At 30 November 2018 |
106,221 |
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Amortisation |
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At 1 December 2017 |
(28,254) |
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Provided during the year |
(24,856) |
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On impairment |
- |
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At 30 November 2018 |
(53,110) |
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Net book value |
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At 30 November 2018 |
53,111 |
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At 30 November 2017 |
84,760 |
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7 |
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 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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Additions |
- |
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17,563 |
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31,665 |
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49,228 |
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Disposals |
- |
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0 |
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(35,350) |
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(35,350) |
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At 30 November 2018 |
1,292,900 |
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521,987 |
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361,830 |
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2,176,717 |
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Depreciation |
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At 1 December 2017 |
- |
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216,621 |
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127,453 |
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344,074 |
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Charge for the year |
- |
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11,512 |
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36,287 |
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47,799 |
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On disposals |
- |
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0 |
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(22,182) |
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(22,182) |
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At 30 November 2018 |
- |
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228,133 |
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141,558 |
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369,691 |
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Net book value |
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At 30 November 2018 |
1,292,900 |
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293,854 |
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220,272 |
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1,807,026 |
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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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The net book value of assets held under finance leases or hire purchase contracts, included in plant and machinery, amounts to £87,472 (2017: £102,908). |
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8 |
Investment Properties |
£ |
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Fair value at 1 December 2017 |
600,000 |
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Additions at cost |
10,240 |
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Net gains from fair vale adjustments |
- |
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Fair value impairment |
(5,240) |
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Fair value at 30 November 2018 |
605,000 |
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The historical cost of the investment properties as at 30th November 2018 has been estimated as £197,740. |
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9 |
Biological Assets |
£ |
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Breeding livestock |
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Cost |
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As at 1 December 2017 |
247,020 |
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Net changes in the year |
19,826 |
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As at 30 November 2018 |
266,846 |
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Depreciation |
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As at 1 December 2017 |
(65,193) |
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Recoveries on disposals in the year |
13,598 |
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Charge for the year |
(33,136) |
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As at 30 November 2018 |
(84,731) |
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Net book value |
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As at 30 November 2018 |
182,115 |
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As at 30 November 2017 |
181,827 |
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10 |
Inventories |
2018 |
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2017 |
£ |
£ |
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Biological assets being trading livestock |
44,249 |
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27,570 |
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Deadstock & other stocks |
43,346 |
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50,826 |
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87,595 |
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78,396 |
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11 |
Debtors |
2018 |
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2017 |
£ |
£ |
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Trade debtors |
182,933 |
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202,054 |
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Value added tax |
- |
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8,712 |
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182,933 |
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210,766 |
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12 |
Creditors: amounts falling due within one year |
2018 |
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2017 |
£ |
£ |
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Bank loans and overdrafts |
195,063 |
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226,265 |
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Obligations under finance lease and hire purchase contracts |
15,563 |
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6,350 |
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Trade creditors |
37,625 |
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35,970 |
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Value added tax |
6,124 |
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- |
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Other creditors |
23,078 |
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8,216 |
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277,453 |
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276,801 |
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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 Bank 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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13 |
Creditors: amounts falling due after one year |
2018 |
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2017 |
£ |
£ |
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Obligations under finance lease and hire purchase contracts |
2,594 |
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37,830 |
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Other creditors |
1,063,101 |
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1,050,120 |
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1,065,695 |
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1,087,950 |
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The amounts due under hire purchase obligations are secured on the assets to which they relate. |
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14 |
Deferred taxation |
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2018 |
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2017 |
£ |
£ |
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As at 1 December 2017 |
18,043 |
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23,568 |
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Credit to profit or loss |
(3,789) |
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(5,525) |
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As at 30 November 2018 |
14,254 |
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18,043 |
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The provision for deferred tax is made up as follows: |
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2018 |
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2017 |
£ |
£ |
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Potential gains on investment properties and basic farm payment entitlements |
37,754 |
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41,543 |
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Tax losses carried forward |
(23,500) |
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(23,500) |
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14,254 |
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18,043 |
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15 |
Share capital |
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2018 |
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2017 |
£ |
£ |
£ |
£ |
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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16 |
Control |
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The company is under the control of the trustees of a number of settlements whose beneficiaries are the members of the Dickinson family. |
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17 |
Other financial commitments |
2018 |
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2017 |
£ |
£ |
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Total future minimum payments under non-cancellable operating leases |
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9,900 |
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9,900 |
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18 |
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 12 and 13. 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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19 |
Unrealised profits |
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Unrealised profits arising from FRS102 adjustments included in the profit and loss account reserve are noted below. |
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2018 |
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2017 |
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£ |
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£ |
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Unrealised profits |
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354,819 |
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408,613 |
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354,819 |
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408,613 |
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