Registered number: SC369372
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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CASTLETON FRUIT LTD.
COMPANY INFORMATION
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CASTLETON FRUIT LTD.
CONTENTS
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CASTLETON FRUIT LTD.
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The directors present the strategic report for the year ended 31 December 2022.
We report a turnover of £19.1m, an increase of over 30% compared to 2021. The increase in sales was across all fruit types, and directly related to better sales performance by our marketing co-operative and also maturing perennial crops such as blueberries and cherries.
Turnover has also increased with the sale of our marketing desk Berry Gardens Limited to Driscolls.
External factors outwith our control continue to affect our business. Despite this, the family are still focussed on growing the business and investing to make this happen.
Labour is the biggest risk facing the business – we are heavily reliant on the Seasonal Agricultural Workers Scheme to provide access to labour from outwith the EU. We rely on this workforce to carry out the labour-intensive tasks of planting, picking and packing of the soft fruit. Due to the war in Ukraine, we were not able to employ the returnee workers we were expecting, which aids productivity. Workers through the scheme have consequently come from further east bringing both cultural and language challenges. Our investments in previous years in sustainable technologies to produce energy have helped to off-set some of the energy cost increases. This year we have increased the quantity of electricity produced on site by investing in more solar panels, as well as battery storage to balance our energy sustainability. Fuel costs continued to increase which we were not able to mitigate against and has therefore impacted profitability.
Despite the external challenges, our team continued to support the business to perform to a good level in terms of overall crop productivity and operational management.
Our geographic location, and thereby crop timing in the marketplace, continues to be an advantage which we will develop further. There is also increased interest in food security and desire from consumers to consider the carbon footprint of the food which they consume; this will become a more significant factor impacting future UK supply chains. Whilst short-term opportunities may still be available, we are confident that the true cost of supply from overseas fruit sources, including sustainability food sourcing, will result in a re-alignment of consumer interest in UK-grown produce and thereby further opportunities for us going forwards.
The business strategy is to continue to focus on fruit crops which require less labour, which will result in a change of fruit mix, whilst at the same time exploring growing systems and potential longer-term automation solutions to mitigate increasing labour costs and reducing labour requirements.
We aim to farm profitably, be environmentally and ethically sustainable and focus on improve positive and long-term mutually beneficial relationships with our team, customers, and suppliers.
This report was approved by the board on 25 September 2023 and signed on its behalf.
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CASTLETON FRUIT LTD.
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
The directors present their report and the financial statements for the year ended 31 December 2022.
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;
∙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 profit for the year, after taxation, amounted to £442,090 (2021 - loss £220,091).
Ordinary dividends were paid amounting to £28,000 (2021 - £56,000). The directors do not recommend payment of a final dividend.
The directors who served during the year were:
Details of future developments can be found within the Strategic Report and form part of this report by the directors.
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CASTLETON FRUIT LTD.
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
The Company's policy is to consult and discuss with employees at team meetings and through one to one meetings, matters likely to affect employees' interests.
Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment within the Company continues and that appropriate training and support is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
There have been no significant events affecting the Company since the year end.
The auditors, EQ Accountants LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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CASTLETON FRUIT LTD.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CASTLETON FRUIT LTD.
We have audited the financial statements of Castleton Fruit Ltd. (the 'Company') for the year ended 31 December 2022, which comprise the Statement of comprehensive income, the Statement of financial position, 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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CASTLETON FRUIT LTD.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CASTLETON FRUIT LTD. (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:
∙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
∙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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CASTLETON FRUIT LTD.
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CASTLETON FRUIT LTD. (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:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.
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 & Statutory Auditors
14 City Quay
DD1 3JA
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CASTLETON FRUIT LTD.
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
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CASTLETON FRUIT LTD.
REGISTERED NUMBER: SC369372
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 12 to 25 form part of these financial statements.
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CASTLETON FRUIT LTD.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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CASTLETON FRUIT LTD.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
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CASTLETON FRUIT LTD.
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Castleton Fruit Ltd. is a private company limited by shares, incorporated in Scotland with registration number SC369372. The registered office and principal place of business is Castleton Farm, Fordoun, Kincardineshire, AB30 1JX.
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 following principal accounting policies have been applied:
Functional and presentation currency
Transactions and balances
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following bases :-
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.
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 reporting 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 Statement of financial position.
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
Those estimates considered to involve a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows – Depreciation Depreciation is provided based on the estimated useful economic life of each class of assets, which is judgement exercised by management. Depreciation is taken to the profit and loss in order to write off the asset over its useful economic life. Stock valuation As set out in note 15, the Company has a year end crops in ground valuation of £570,410 (2021 - £1,008,562). This represents the valuation of crops growing in the ground at the year end and includes the cost of raw materials, labour and equipment for establishing these crops to the balance sheet date. The cost of raw materials is directly attributable to the costs associated with plants, bed polythene and coir. Expenditure incurred in bringing the crop to its current condition includes the labour of cultivating the land, sowing, planting and the husbandry of those crops. The cost of labour is based upon timesheet and payroll data, which is all allocated to developing these crops. Any impairment of the crop is also taken into account whereby any damaged or under-performing crops are removed and the valuation is impaired appropriately. It is not deemed practical to count the exact number of plants removed for these purposes and these plants are impaired over their useful estimated life.
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
The only factors affecting tax charges are those imposed by HMRC.
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £182,148 (2021 - £23,974). Contributions totalling £Nil (2020 - £Nil) were payable to the fund at the reporting date and are included in creditors.
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CASTLETON FRUIT LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
The ultimate controlling party is Mr R J Mitchell.
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