Company Registration No. 09560263 (England and Wales)
YAREAL UK LIMITED
GROUP ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
YAREAL UK LIMITED
CONTENTS
Page
Group balance sheet
1 - 2
Company balance sheet
3
Group statement of changes in equity
4
Company statement of changes in equity
5
Notes to the financial statements
6 - 22
YAREAL UK LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
6
767,127
831,114
Tangible assets
7
56,529,373
52,789,921
Investment properties
8
5,759,184
5,022,434
Investments
9
3,001
3,001
63,058,685
58,646,470
Current assets
Stocks
6,539,799
4,900,869
Debtors
11
4,155,158
3,711,598
Cash at bank and in hand
6,309,803
10,899,420
17,004,760
19,511,887
Creditors: amounts falling due within one year
12
(1,999,474)
(38,933,975)
Net current assets/(liabilities)
15,005,286
(19,422,088)
Total assets less current liabilities
78,063,971
39,224,382
Creditors: amounts falling due after more than one year
14
(172,029)
(196,767)
Provisions for liabilities
(1,630,763)
(1,180,485)
Net assets
76,261,179
37,847,130
Capital and reserves
Called up share capital
15
55,424
32,450
Share premium account
81,879,982
43,346,484
Revaluation reserve
2,990,694
2,550,097
Profit and loss reserves
(8,664,921)
(8,081,901)
Total equity
76,261,179
37,847,130
T
he directors of the
group
have elected not to include a copy of the profit and loss account within the financial statements.
These financial statements have been prepared in accordance with the provisions applicable to
groups and
companies subject to the small companies regime.
YAREAL UK LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2022
31 December 2022
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 7 February 2023 and are signed on its behalf by:
07 February 2023
Mr J B Unsworth
Mr R J Taylor
Director
Director
Company registration number 09560263 (England and Wales)
YAREAL UK LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 3 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
7
540,296
546,830
Investments
9
33,827,577
33,827,577
34,367,873
34,374,407
Current assets
Debtors
11
42,421,097
36,741,984
Cash at bank and in hand
3,173,005
9,255,701
45,594,102
45,997,685
Creditors: amounts falling due within one year
12
(123,310)
(37,325,615)
Net current assets
45,470,792
8,672,070
Total assets less current liabilities
79,838,665
43,046,477
Provisions for liabilities
(20,499)
(20,663)
Net assets
79,818,166
43,025,814
Capital and reserves
Called up share capital
15
55,424
32,450
Share premium account
81,879,982
43,346,484
Profit and loss reserves
(2,117,240)
(353,120)
Total equity
79,818,166
43,025,814
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s loss for the year was £1,764,120 (2021 - £2,648,017 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 7 February 2023 and are signed on its behalf by:
07 February 2023
Mr J B Unsworth
Mr R J Taylor
Director
Director
Company registration number 09560263 (England and Wales)
YAREAL UK LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2021
32,450
43,346,484
1,478,142
(10,710,723)
34,146,353
Year ended 31 December 2021:
Profit for the year
-
-
-
2,628,822
2,628,822
Other comprehensive income:
Revaluation of tangible fixed assets and intangible assets
-
-
1,358,438
-
1,358,438
Tax relating to other comprehensive income
-
-
(286,483)
(286,483)
Total comprehensive income for the year
-
-
1,071,955
2,628,822
3,700,777
Balance at 31 December 2021
32,450
43,346,484
2,550,097
(8,081,901)
37,847,130
Year ended 31 December 2022:
Loss for the year
-
-
-
(583,020)
(583,020)
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
746,896
-
746,896
Tax relating to other comprehensive income
-
-
(306,299)
(306,299)
Total comprehensive income for the year
-
-
440,597
(583,020)
(142,423)
Issue of share capital
15
22,974
38,533,498
-
-
38,556,472
Balance at 31 December 2022
55,424
81,879,982
2,990,694
(8,664,921)
76,261,179
YAREAL UK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2021
32,450
43,346,484
(3,001,137)
40,377,797
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
2,648,017
2,648,017
Balance at 31 December 2021
32,450
43,346,484
(353,120)
43,025,814
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(1,764,120)
(1,764,120)
Issue of share capital
15
22,974
38,533,498
-
38,556,472
Balance at 31 December 2022
55,424
81,879,982
(2,117,240)
79,818,166
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
1
Accounting policies
Company information
Yareal UK Limited
(“the company”)
is a
private
limited company by shares, domiciled and incorporated in
England and Wales
.
The registered office is
Third Floor, 20 Old Bailey, London, EC4M 7AN. The head office address is 17 Salop Road, Oswestry, SY11 2NR.
The group consists of Yareal UK Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company
financial statements, t
he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company
Yareal UK Limited
together with
all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates
.
All
financial statements
are made up to 31 December 2022
.
Where necessary, adjustments are made to the
financial statements
of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The group profit and loss account includes the results of Yareal Humby Limited and Yareal Llanforda Limited from incorporation.
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 7 -
1.4
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.
The group has the support of its ultimate parent and t
hus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
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, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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 dispatch 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.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of
a
business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Entitlements
5 years
Shooting rights
see below
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 8 -
Costs directly attributable to the purchase of the shooting rights are amortised over 5 years. However, shooting rights are held under the revaluation model and are carried at a revalued amount, being their fair value (market value) at the reporting end date. As the shooting rights are revalued to their fair value each year, they are not amortised. This departs from a requirement of the Companies Act 2006 which requires all intangible assets to be amortised, this departure from the provisions of the Act is required in order to achieve a fair presentation. Management has concluded that the financial statements present fairly the entity's financial position and financial performance.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.
1.8
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
0-2% Straight line
Plant and equipment
20% Straight line
Fixtures and fittings
20% Straight line
Computers
20% Straight line
Motor vehicles
20% Straight line
Freehold land is not depreciated. Freehold properties are assessed on an individual basis and are either depreciated at 2% straight line or not depreciated as they are recognised on a revaluation basis instead. The land and buildings which are not depreciated, depart from the requirement in the Companies Act 2006 for all fixed assets to be depreciated. This departure from the Act is required in order to achieve a fair presentation. Management has concluded that the financial statements present fairly the entity's financial position and financial performance.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the
profit and loss account
.
1.9
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the
reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.
Due to its restatement to fair value at each reporting date as required under FRS 102, investment property is not depreciated. This departs from a requirement of the Companies Act 2006 which requires all fixed assets to be depreciated. This departure from the provisions of the Act is required in order to achieve a fair presentation. Management has concluded that the financial statements present fairly the entity's financial position and financial performance.
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 9 -
1.10
Fixed asset investments
Equity in
vest
ments are measured at fair value through profit or loss
,
except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably
,
which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I
n the parent company
financial statements,
investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
1.11
Impairment of fixed assets
At each reporting
period
end date, the
group
reviews the carrying amounts of its tangible
and intangible
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). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.12
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
The exception to this being agricultural produce which is measured at fair value less costs to sell at the point of harvest. This valuation is considered to represent its net realisable value.
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.
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 10 -
1.13
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.14
Financial instruments
The group 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 group's
balance sheet
when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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
m
ethod 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 group 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.
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -
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 group 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
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
1.15
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.16
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset
if, and only if, there is
a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.17
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss
so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
d
asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.20
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors 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.
3
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
14,250
10,000
Audit of the financial statements of the company's subsidiaries
24,400
23,500
38,650
33,500
4
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Total
33
34
33
34
5
Directors' remuneration
2022
2021
£
£
Remuneration paid to directors
37,000
37,000
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
6
Intangible fixed assets
Group
Goodwill
Other
Shooting rights
Total
£
£
£
£
Cost or valuation
At 1 January 2022 and 31 December 2022
1,350,000
288,393
662,607
2,301,000
Amortisation and impairment
At 1 January 2022
1,200,000
263,369
6,517
1,469,886
Amortisation charged for the year
50,000
13,987
63,987
At 31 December 2022
1,250,000
277,356
6,517
1,533,873
Carrying amount
At 31 December 2022
100,000
11,037
656,090
767,127
At 31 December 2021
150,000
25,024
656,090
831,114
The company had no intangible fixed assets at 31 December 2022 or 31 December 2021.
Shooting rights with a carrying amount of £
6
56
,0
9
0
were revalued at 31 December 2022 by Knight Frank, independent chartered valuers not connected with the group, on the basis of market value.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
Group
Company
2022
2021
2022
2021
£
£
£
£
Cost
376,670
376,670
-
-
Accumulated amortisation
-
-
-
-
Carrying value
376,670
376,670
-
-
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
7
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2022
50,783,643
3,780,899
95,754
17,366
114,590
54,792,252
Additions
2,412,916
685,828
39,488
1,733
55,443
3,195,408
Disposals
(815,000)
(51,200)
(400)
(33,000)
(899,600)
Revaluation
2,260,786
2,260,786
Transfers
(200,000)
-
-
-
-
(200,000)
At 31 December 2022
54,442,345
4,415,527
135,242
18,699
137,033
59,148,846
Depreciation and impairment
At 1 January 2022
219,985
1,651,501
58,314
13,359
59,172
2,002,331
Depreciation charged in the year
55,717
587,944
17,336
1,551
26,718
689,266
Eliminated in respect of disposals
(48,307)
(167)
(23,650)
(72,124)
At 31 December 2022
275,702
2,191,138
75,650
14,743
62,240
2,619,473
Carrying amount
At 31 December 2022
54,166,643
2,224,389
59,592
3,956
74,793
56,529,373
At 31 December 2021
50,563,658
2,129,398
37,440
4,007
55,418
52,789,921
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
7
Tangible fixed assets
(Continued)
- 16 -
Company
Freehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2022
532,061
48,783
17,366
17,479
615,689
Additions
235
1,733
1,968
Disposals
(400)
(17,000)
(17,400)
At 31 December 2022
532,061
49,018
18,699
479
600,257
Depreciation and impairment
At 1 January 2022
3,655
36,712
13,359
15,133
68,859
Depreciation charged in the year
1,041
3,331
1,551
2,063
7,986
Eliminated in respect of disposals
(167)
(16,717)
(16,884)
At 31 December 2022
4,696
40,043
14,743
479
59,961
Carrying amount
At 31 December 2022
527,365
8,975
3,956
540,296
At 31 December 2021
528,406
12,071
4,007
2,346
546,830
Out of the total carrying amount of £2,224,389 (2021 - £2,129,398), plant and machinery with a carrying amount of
£713,189
(
2021 - £619,871
) have been pledged to secure borrowings of the group. The group is not allowed to pledge these assets as security for other borrowings or to sell them to another entity. The company had no assets pledged as security for the current or prior year.
For the group out of the total carrying amount of £54,166,643, land and buildings with a carrying amount of
£
4
7
,
676
,
344
were revalued at
31 December 2022
by
Knight Frank
, independent
chartered
valuers not connected with the
group
on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
For the company out of the total carrying amount of £527,365, land and buildings with a carrying amount of
£
480
,
0
00
were revalued at
31 December 2022
by
Knight Frank
, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.
For the
assets
that
are carried at
their revalued amount,
i
f the
se
assets were measured using the cost model, the carrying amounts would be as follows:
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
7
Tangible fixed assets
(Continued)
- 17 -
2022
2021
£
£
Group
Cost
47,220,118
46,544,114
Accumulated depreciation
(4,696)
(3,655)
Carrying value
47,215,422
46,540,459
Company
Cost
940,238
940,238
Accumulated depreciation
(4,696)
(3,655)
Carrying value
935,542
936,583
8
Investment property
Group
Company
2022
2022
£
£
Fair value
At 1 January 2022 and 31 December 2022
5,022,434
-
Additions
420,836
-
Transfers
200,000
-
Revaluations
115,914
-
At 31 December 2022
5,759,184
-
Investment property comprises various UK properties. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2022 by Knight Frank Chartered Surveyors, who are not connected with the group. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
9
Fixed asset investments
Group
Company
2022
2021
2022
2021
£
£
£
£
Investments in subsidiaries
10
33,827,577
33,827,577
Unlisted investments
3,001
3,001
3,001
3,001
33,827,577
33,827,577
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Fixed asset investments
(Continued)
- 18 -
Fixed asset investments not carried at market value
Investments are held at cost less impairment as they are not publically traded, and therefore their market value cannot be measured reliably.
10
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Yareal Humby Limited
Third Floor, 20 Old Bailey, London, EC4M 7AN
Agriculture
Ordinary
100
Yareal Llanforda Limited
Third Floor, 20 Old Bailey, London, EC4M 7AN
Agriculture
Ordinary
100
11
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,513,371
1,450,944
Amounts owed by group
5,706
5,706
42,296,672
36,621,871
Other debtors
576,779
781,354
15,216
15,064
3,095,856
2,238,004
42,311,888
36,636,935
Amounts falling due after more than one year:
Deferred tax asset
1,059,302
1,473,594
109,209
105,049
Total debtors
4,155,158
3,711,598
42,421,097
36,741,984
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 19 -
12
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
£
£
£
£
Trade creditors
1,293,069
924,842
10,136
9,325
Amounts owed to group undertakings
8,841
37,219,127
8,841
37,219,127
Taxation and social security
37,339
41,869
37,339
41,869
Other creditors
660,225
748,137
66,994
55,294
1,999,474
38,933,975
123,310
37,325,615
Included within group other creditors is £
2
21,143 (20
2
1 - £209,544) relating to an outstanding hire purchase liability which is secured against fixed assets.
13
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
221,143
209,543
In two to five years
172,029
196,768
393,172
406,311
-
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is two years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
14
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Other creditors
172,029
196,767
172,029
196,767
-
-
Included within group other creditors is £172,029
(20
2
1 - £196,767) relating to an outstanding hire purchase liability which is secured against fixed assets.
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED
31 DECEMBER 2022
2023-02-15
- 20 -
15
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
55,424
32,450
55,424
32,450
All issued shares are ordinary shares and rank equally for voting, dividend and distribution purposes.
16
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report
was unqualified
.
The auditor was Mitchell Charlesworth (Audit) Limited.
17
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2022
2021
£
£
Aggregate compensation
241,193
219,581
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Interest charge
2022
2021
£
£
Group
Interest on YURA loan
255,508
176,369
Company
Interest on YURA loan
255,508
176,369
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
17
Related party transactions
(Continued)
- 21 -
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2022
2021
£
£
Group
Entities with control, joint control or significant influence over the group
8,841
37,219,127
Company
Entities with control, joint control or significant influence over the company
8,841
37,219,127
The above amount relates to amounts due to YURA. The current year balance relates to the final interest charges before the loan was converted into share capital, this was repaid shortly after the year end.
Interest relates to interest payable on a loan held with the company's parent, YURA. Interest was charged at a rate of 0.5% per annum until September 2022, and 1.69% from October 2022.
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2022
2021
Balance
Balance
£
£
Group
Other related parties
5,705
5,705
Company
Other related parties
5,705
5,705
The above amount is made up of various balances due from group companies, the split for the current and prior year are as follows:
Vittoria £2,252, Yafa £1,368 and YAM £2,085.
YAREAL UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
17
Related party transactions
(Continued)
- 22 -
Other information
During the year there have been transactions
between the group and
Blodwell Farm, Mr R J Taylor
's personal farm
.
There have been electricity recharges made to Blodwell Farm totalling £nil (20
2
1 - £26,463).
Sales of straw and maize were also made totalling £
13,216 (2021-£45,586)
The balance outstanding at the year end was £13,216 which is included in trade debtors (20
2
1 - £72,049).
There have been charges made to Blodwell Farm for the supply of labour and other services totalling £3,000 (202
1
- £
3,000
). The balance outstanding at the year end was £
6,705
which is included in trade debtors (202
1
- £
49,279
).
There have been monies collected by Blodwell Farm on behalf of the group which total £
2,664,696
(202
1
- £
1,131,887
). The balance of £
2,028,364
(202
1
: £
1,258,149
) is outstanding at year end and is included in trade debtors.
The balances with Blodwell Farm are to be settled within nine months of the year end.
2022-12-31
2022-01-01
false
CCH Software
CCH Accounts Production 2022.300
No description of principal activity
Mr J B Unsworth
Mr R J Taylor
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