Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2021
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FEED FACTORS LIMITED
COMPANY INFORMATION
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FEED FACTORS LIMITED
CONTENTS
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FEED FACTORS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The Directors present their strategic report on the company for the year ended 31 December 2021.
Feed Factors Limited is a wholly owned subsidiary of The Andersons, Inc. The company's principal activity is the trading, importing and distribution of agricultural commodities for human and animal consumption.
The company’s key performance indicators are Turnover, profit before tax and net assets. Turnover for the year increased by 54.8%, the main reason being a fluctuating market in 2021. Feed Factors has also seen an increase in their international trade. Profit before tax was £5.8m, which together with a debt to equity adjustment from our parent company, has led to an increase in net assets to £27.0m from £19.8m at the end of the previous year.
Future Developments The first two quarters of 2022 have been positive, with robust forward sales due to a significant growth in the market. Strong sales trends look to remain for the rest of the year.
Foreign exchange risk
The Company purchases stock generally in US dollars whilst sales are primarily in pounds sterling with some sales in Euros. It reduces its currency risk by entering into forward contracts on the foreign exchange market. The Company sources its products from numerous origins, and has spent many years nurturing and maintaining a network of high quality, reliable suppliers, who have remained loyal even in the times of poor harvests and political unrest. Credit risk The Company has protected itself against customer default and bad debts by entering into a comprehensive credit insurance policy. Price risk The Company manages price risk by ensuring, where possible, a buyer is found and a price agreed before committing to a purchase. Liquidity and cashflow risk Liquidity and cashflow risk are managed by ensuring there are adequate overdraft facilities in place before committing to a trade.
The company is affected by the scale and profitability of individual contracts, hence turnover and profits may not follow a steady pattern but vary substantially from year to year:
31/12/2021 31/12/2020 31/12/201 9 Turnover £108.1m £69.8m £57.1m Gross Profit (%) 9.1% 6.2% 5.6% Net Assets £27.0m £19.8m £17.9m For the above reason, using KPIs would vary on a year to year basis.
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FEED FACTORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
The likely consequences of any decision in the long term
Feed Factors previous parent company Lansing trade group was acquired by The Andersons Inc, in January 2019. All local UK decisions are now reviewed to consider both the needs of the UK subsidiary and the requirements and expectations of a US Public company. The interest of the company’s employees The Directors believe that the employees serve an integral part in carrying out the strategic direction of the company. Our focus is to maintain a culture that supports and encourages a healthy lifestyle and provide a high-quality affordable benefits package that is truly valued by our employees. For more information on engagement see “Employee involvement” within the Directors’ Report on page 4. The need to foster the company’s business relations with suppliers, customers and others We believe in strong long-term partnerships working closely with suppliers and serving the needs of our buyers. The impact of the company’s operations on the community and environment Our business model is based on promoting organic farming throughout the world and therefore reducing the usage of chemicals in agricultural production. Our consumer clients abide by organic principles of animal welfare, where space and quality of life is of paramount importance. We promote low impact farming, whilst supporting both economically and socially the small farm networks throughout the world. Organic certification synchronises with our fair-trade principles of paying a responsible and sustainable price level to farmers in order to benefit their families and the local economy. The desirability of the company maintaining a reputation for high standards of business conduct Feed Factors is one of the largest organic trading houses in Europe specialising in non-genetically modified, organics and identity preservation. The Company periodically reviews its Sustainability Statement, which details the principals that guide the company to maintain its reputation for high standards. The Board also reviews the Human Rights and Modern Slavery Statement to ensure that high standards are maintained within the business and within business relationships. The business model is based on promoting organic farming throughout the world and therefore reducing the usage of chemicals in agricultural production. We are further guided by standards of the following organizations: • Organic Food Federation (OFF) • Grain and Feed Trade Association (GAFTA) • The GAFTA trade assurance scheme (GTAS) • Human Rights and Modern Slavery Policy • Hazard Analysis and Critical Control Points (HACCP) • Good Trade Practice (GTP)
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FEED FACTORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
The need to act fairly as between members of the company
The directors of the company make decisions based on all relevant information, making the best decision for the Company.
This report was approved by the board
and signed on its behalf.
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FEED FACTORS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
The Directors present their report and the financial statements for the year ended 31 December 2021.
The Directors are responsible for preparing the Strategic Report, the Directors' Report and the
financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year
. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the Directors are required to:
∙
select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙
make judgments and accounting estimates that are reasonable and prudent;
∙
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Directors who served during the year were:
The Company keeps the employees informed of the performance of the Company, their relationships with clients and the principal decisions taken by means of regular briefings, company circulars and other meetings. All employees have opportunities to develop and to progress according to their ability, irrespective of age, marital status, sex, race and creed.
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FEED FACTORS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
The Company consumed less than 40,000kWh in the year under review and therefore information on greenhouse gas emissions has not been reported.
The company has chosen to include several items in the strategic report which would otherwise be required to be disclosed in the Directors' report. These include information on the exposure to price risk, credit risk, liquidity risk and cash flow risk, details of any important events affecting the company since the end of the financial year and an indication of likely future developments in the business of the company.
The auditors, MHA MacIntyre Hudson LLP, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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FEED FACTORS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FEED FACTORS LIMITED
We have audited the financial statements of Feed Factors Limited (the 'Company') for the year ended 31 December 2021, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity
and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
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FEED FACTORS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FEED FACTORS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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FEED FACTORS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FEED FACTORS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and review of accounting estimates for bias; - Reviewing financial statement disclosures and testing supporting documentation to assess compliance with applicable laws and regulations. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' Report.
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FEED FACTORS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FEED FACTORS LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
London, United Kingdom
Date:
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FEED FACTORS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
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FEED FACTORS LIMITED
REGISTERED NUMBER:
02918087
BALANCE SHEET
AS AT
31 DECEMBER 2021
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
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FEED FACTORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 DECEMBER 2021
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FEED FACTORS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
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FEED FACTORS LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2021
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Feed Factors Limited is a private company limited by shares incorporated in England and Wales in the United Kingdom, registration number 02918087. The address of its registered office is detailed in the company information section.
2.
Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The financial statements have been prepared in pounds sterling, the functional currency, rounded to the nearest £1.
The following principal accounting policies have been applied:
Goods are sold under both spot and forward contract terms. Under both scenarios income is recognised upon the physical delivery of goods to the customer, where the responsibility of delivery lies with the Company, or upon collection by the customer where the customer is responsible for collecting the goods from storage.
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
2.
Accounting policies (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
The critical estimate in applying these policies is: Fixed Assets Management apply judgment on the estimated useful life of each class of fixed asset. At each balance sheet date fixed assets are assessed for impairment and written down where appropriate. Stock Stocks are valued at the lower of cost and net realisable value, after allowance for obsolete stock. The Directors are satisfied that the stock is valued on an appropriate basis. Debtors The Directors have considered the recoverability of trade debtors and are satisfied that the debtors are fairly stated.
Analysis of turnover by country of destination:
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
10.
Taxation (continued)
There were no factors that may effect future tax charges.
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
Share premium account
Profit and loss account
The Company operates a defined contribution group personal pension scheme. The pension cost charge represents contributions payable by the Company to the scheme and amounted to £84,936 (2020: £67,222). There were contributions of £5,396 (2020: £5,428) payable to the fund at the balance sheet date.
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FEED FACTORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
The company is under the control of Lansing Trade Group LLC, the immediate parent company.
The ultimate controlling party is The Andersons, Inc, a public company incorporated in and registered in the state of Ohio, USA, whose registered office is 1947 Briarfield Blvd, Maumee, OH 43537, USA.
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