Company Registration No. 06470409 (England and Wales)
Abbotsley Farms Limited
Unaudited financial statements
for the year ended 30 September 2020
Pages for filing with the Registrar
Abbotsley Farms Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 15
Abbotsley Farms Limited
Statement of financial position
As at 30 September 2020
Page 1
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
3
168
251
Tangible assets
4
13,565,839
14,122,018
Investment properties
5
1,341,410
1,341,410
Investments
6
46,361
46,361
14,953,778
15,510,040
Current assets
Stocks
510,912
554,114
Debtors
7
185,718
489,881
Cash at bank and in hand
5,280
4,296
701,910
1,048,291
Creditors: amounts falling due within one year
8
(4,655,942)
(4,779,236)
Net current liabilities
(3,954,032)
(3,730,945)
Total assets less current liabilities
10,999,746
11,779,095
Creditors: amounts falling due after more than one year
9
(3,068,255)
(3,159,569)
Provisions for liabilities
11
(118,942)
(150,077)
Net assets
7,812,549
8,469,449
Capital and reserves
Called up share capital
16
16
Share premium account
7,444,586
7,444,586
Profit and loss reserves
367,947
1,024,847
Total equity
7,812,549
8,469,449
Abbotsley Farms Limited
Statement of financial position (continued)
As at 30 September 2020
Page 2
The directors of the company have elected not to include a copy of the income statement within the financial statements.
true
For the financial year ended 30 September 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered 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 25 June 2021 and are signed on its behalf by:
J M Topham
Director
Company Registration No. 06470409
Abbotsley Farms Limited
Notes to the financial statements
For the year ended 30 September 2020
Page 3
1
Accounting policies
Company information
Abbotsley Farms Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Suite C, Unex House, Bourges Boulevard, Peterborough, Cambridgeshire, PE1 1NG.
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.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The
financial statements
present information about the company as an individual entity and not about its group
.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future.
The directors have had due regard to the impact of the COVID-19 pandemic on the financial performance and position of the company and concluded that they are not experiencing COVID-19 related issues and continue to have the ability to meet its liabilities as they fall due for the foreseeable future
Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents sales to customers in respect of crops and is stated net of value added tax.
1.4
Intangible fixed assets - goodwill
Goodwill arising on the acquisition
of
trade and assets represents the excess of the fair value of the consideration over the fair value of the identifiable assets and liabilities 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.
Abbotsley Farms Limited
Notes to the financial statements (continued)
For the year ended 30 September 2020
1
Accounting policies (continued)
Page 4
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.
1.5
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:
Basic Payment Scheme Entitlements
Over 5 years straight line
1.6
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 buildings
2% on cost
Plant and machinery
10% - 20% on written down value
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 credited or charged to profit or loss
.
1.7
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 a
t
the reporting end date.
The surplus or deficit on revaluation is recognised in profit or loss.
Abbotsley Farms Limited
Notes to the financial statements (continued)
For the year ended 30 September 2020
1
Accounting policies (continued)
Page 5
Investment properties are included in the balance sheet at their open market value. Depreciation is provided only on those investment properties which are leasehold and where the unexpired term is less than 20 years.
No depreciation is provided on freehold investment properties. The requirement of the Companies Act 2006 is to depreciate all fixed assets which have a useful economic life but that requirement conflicts with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland, for the financial statements to give a true and fair view.
1.8
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in
profit
or
loss
.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.9
Impairment of fixed assets
At each reporting
period
end date, the
company
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.
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.
Abbotsley Farms Limited
Notes to the financial statements (continued)
For the year ended 30 September 2020
1
Accounting policies (continued)
Page 6
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.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises
the cost of seeds, fertilisers and sprays, plus a proportion of labour, machinery costs, machinery depreciation and other relevant indirect costs
that have been incurred in bringing the stocks to their present location and condition.
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.
1.11
Cash at bank and in hand
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.
1.12
Financial instruments
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
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, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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.
Abbotsley Farms Limited
Notes to the financial statements (continued)
For the year ended 30 September 2020
1
Accounting policies (continued)
Page 7
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 company 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. A
m
ounts 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.
1.13
Equity instruments
Equity instruments issued by the company 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 company.
1.14
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
income statement
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
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Abbotsley Farms Limited
Notes to the financial statements (continued)
For the year ended 30 September 2020
1
Accounting policies (continued)
Page 8
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. Deferred tax assets and liabilities are offset when the company has 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.
1.15
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.
1.16
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 statement of financial position 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.
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.
Abbotsley Farms Limited
Notes to the financial statements (continued)
For the year ended 30 September 2020
1
Accounting policies (continued)
Page 9
1.17
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.18
Revenue Recognition - Basic Payment Scheme
In
any Scheme Year, the right to the Basic Payment Scheme entitlement is recognised if there is a reasonable certainty over the existence of the right to the Basic Payment Scheme for that Scheme Year and once all conditions attached to the Basic Payment Scheme have been met.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
6
6
Abbotsley Farms Limited
Notes to the financial statements (continued)
For the year ended 30 September 2020
Page 10
3
Intangible fixed assets
Goodwill
Basic Payment Scheme Entitlements
Total
£
£
£
Cost
At 1 October 2019 and 30 September 2020
97,768
163,040
260,808
Amortisation and impairment
At 1 October 2019
97,768
162,789
260,557
Amortisation charged for the year
-
83
83
At 30 September 2020
97,768
162,872
260,640
Carrying amount
At 30 September 2020
-
168
168
At 30 September 2019
-
251
251
Abbotsley Farms Limited
Notes to the financial statements (continued)
For the year ended 30 September 2020
Page 11
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 October 2019
14,247,413
420,699
14,668,112
Additions
-
41,639
41,639
At 30 September 2020
14,247,413
462,338
14,709,751
Depreciation and impairment
At 1 October 2019
417,884
128,210
546,094
Depreciation charged in the year
72,277
29,042
101,319
Impairment losses
496,499
-
496,499
At 30 September 2020
986,660
157,252
1,143,912
Carrying amount
At 30 September 2020
13,260,753
305,086
13,565,839
At 30 September 2019
13,829,529
292,489
14,122,018
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2020
2019
£
£
Plant and machinery
-
35,481
-
35,481
Depreciation charge for the year in respect of leased assets
-
8,870
Abbotsley Farms Limited
Notes to the financial statements (continued)
For the year ended 30 September 2020
Page 12
5
Investment property
2020
£
Fair value
At 1 October 2019 and 30 September 2020
1,341,410
The fair value of investment properties has been arrived at on an open market value basis by reference to market evidence of transaction prices for similar properties. No depreciation is provided in respect of these properties.
6
Fixed asset investments
2020
2019
£
£
Investments
46,361
46,361
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 October 2019 and 30 September 2020
46,361
Carrying amount
At 30 September 2020
46,361
At 30 September 2019
46,361
7
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
40,991
252,850
Corporation tax recoverable
2,971
-
Amounts owed by group undertakings
900
2,678
Other debtors
140,856
234,353
185,718
489,881
Abbotsley Farms Limited
Notes to the financial statements (continued)
For the year ended 30 September 2020
Page 13
8
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
441,401
445,991
Trade creditors
65,214
101,172
Amounts owed to group undertakings
3,781,775
3,781,775
Corporation tax
-
6,897
Other creditors
367,552
443,401
4,655,942
4,779,236
A fixed and floating charge has been given in respect of the bank loans and overdraft.
Abbotsley Farms Limited
Notes to the financial statements (continued)
For the year ended 30 September 2020
Page 14
9
Creditors: amounts falling due after more than one year
2020
2019
£
£
Bank loans and overdrafts
2,468,255
2,559,569
Other creditors
600,000
600,000
3,068,255
3,159,569
A fixed and floating charge has been given in respect of the bank loans and other creditors.
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,944,962
90,287
Payable other than by instalments
400,000
400,000
2,344,962
490,287
10
Provisions for liabilities
2020
2019
£
£
Deferred tax liabilities
11
118,942
150,077
11
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2020
2019
Balances:
£
£
Accelerated capital allowances
55,538
43,655
Tax losses
(55,538)
-
Investment property
118,942
106,422
118,942
150,077
Abbotsley Farms Limited
Notes to the financial statements (continued)
For the year ended 30 September 2020
11
Deferred taxation (continued)
Page 15
2020
Movements in the year:
£
Liability at 1 October 2019
150,077
Credit to profit or loss
(31,135)
Liability at 30 September 2020
118,942
12
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
2020
2019
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
63,773
84,974
Entities over which the entity has control, joint control or significant influence
-
100
Key management personnel
228,694
233,203
Other related parties
400,000
425,000
2020-09-30
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false
25 June 2021
CCH Software
CCH Accounts Production 2020.310
No description of principal activity
M R Topham
J M Topham
S Topham
L Santry
J M Topham
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