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Unaudited Financial Statements for the Year Ended 31 July 2021 |
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Truffle Farms Europe Limited |
REGISTERED NUMBER:
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Unaudited Financial Statements for the Year Ended 31 July 2021 |
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for |
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Truffle Farms Europe Limited |
Truffle Farms Europe Limited (Registered number: SC510853) |
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Contents of the Financial Statements |
for the Year Ended 31 July 2021 |
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Page |
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Company Information | 1 |
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Statement of Financial Position | 2 |
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Notes to the Financial Statements | 3 |
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Truffle Farms Europe Limited |
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Company Information |
for the Year Ended 31 July 2021 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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Chartered Management Accountants |
Drumsheugh Toll |
2 Belford Road |
Edinburgh |
Midlothian |
EH4 3BL |
Truffle Farms Europe Limited (Registered number: SC510853) |
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Statement of Financial Position |
31 July 2021 |
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31.7.21 | 31.7.20 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
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CURRENT ASSETS |
Stocks |
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Debtors | 5 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 6 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
7 |
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( |
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PROVISIONS FOR LIABILITIES | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Share premium | 8 |
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Fair value reserve | 8 |
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Retained earnings | 8 | 7,094,853 | 4,274,085 |
SHAREHOLDERS' FUNDS |
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The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
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In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Truffle Farms Europe Limited (Registered number: SC510853) |
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Notes to the Financial Statements |
for the Year Ended 31 July 2021 |
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1. | STATUTORY INFORMATION |
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Truffle Farms Europe Limited is a
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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The company sells an upfront licence right to 80% of the realised sale value of inventory, and for 50% of any sale proceeds of the biological asset. The company retains the right to receive 20% of the realised sale value of inventory, and the remaining 50% of the sale proceeds of the biological asset. |
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Sales of inventory are recognised in the profit and loss account at the date of sale of that inventory. |
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Sales of biological assets are recognised in the profit and loss account at the date of sale of that biological asset. |
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Tangible fixed assets |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Computer equipments | - |
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Truffle Farms Europe Limited (Registered number: SC510853) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2021 |
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2. | ACCOUNTING POLICIES - continued |
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Stocks |
Biological Assets |
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Truffle Trees are classified as Biological Assets in accordance with International Accounting Standard 41 (IAS41 - Agriculture). |
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Treatment of Costs |
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The following costs are capitalised and reported as Biological Assets: |
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- Initial acquisition of truffle trees |
- Planting, development, irrigation, land management and other costs relating to the development of immature trees up to the point where they are productive |
- A proportion of overheads relating to the management of biological assets |
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Once a tree is productive, costs relating to the ongoing management of such trees are expensed as a cost of production in the profit and loss account. |
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The company retains control of the Biological Assets, and such assets can only be sold upon the approval of the Board. |
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Inventory |
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When truffles are harvested, they are recognised as inventory for resale under current assets. |
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Fair Value of Biological Assets |
IAS 41 requires biological assets to be measured at initial recognition (see treatment of costs) and at each balance sheet date at their fair value less costs to sell including estimated selling costs. |
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'Fair Value' is defined as the amount for which the biological asset (Truffle tree) could be exchanged between two knowledgeable, willing parties in an arms length transaction. It represents the market price for the asset based on current expectations. |
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The company will determine a fair value based on the following hierarchy |
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- Price for the asset in an active market, based on the company's own average selling price per biological asset unit in the current accounting period |
- Recent transaction price achieved for the asset if there is no active market |
- Present value of the future cashflows expected to be generated from the asset |
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Financial instruments |
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties. |
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Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable are initially measured at present value of future cash flows and subsequently amortised at cost using the effective interest method. |
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Creditors payable within one year, typically trade payables, are measured, initially and subsequently at the undiscounted amount of the cash or other consideration expected to be paid. |
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Debtors payable within one year, typically trade debtors, are measured initially and subsequently at the undiscounted amount of the cash or other consideration expected to be received. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
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Truffle Farms Europe Limited (Registered number: SC510853) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2021 |
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2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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Government grants |
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the Company will comply with the conditions attaching to them and the grants will be received. Government grants relating to revenue are recognised on a systematic basis over the periods in which the Company recognises the related costs for which the grant is intended to compensate. Grants in relation to tangible fixed assets are credited to the profit and loss account over the useful lives of the related assets. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipments | Totals |
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COST |
At 1 August 2020 |
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Additions |
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At 31 July 2021 |
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DEPRECIATION |
At 1 August 2020 |
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Charge for year |
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At 31 July 2021 |
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NET BOOK VALUE |
At 31 July 2021 |
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At 31 July 2020 |
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Truffle Farms Europe Limited (Registered number: SC510853) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2021 |
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5. | DEBTORS |
31.7.21 | 31.7.20 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
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Other debtors |
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Directors' current accounts | 2,043,794 | 1,205,527 |
VAT |
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Prepayments and accrued income |
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Amounts falling due after more than one year: |
Trade debtors |
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Aggregate amounts |
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6. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.7.21 | 31.7.20 |
£ | £ |
Bank loans and overdrafts |
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Hire purchase contracts |
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Trade creditors |
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Tax |
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Social security and other taxes |
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Other creditors |
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Accrued expenses |
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7. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.7.21 | 31.7.20 |
£ | £ |
Bank loans - 1-2 years |
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Hire purchase contracts |
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Trade creditors |
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8. | RESERVES |
Fair |
Retained | Share | value |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
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At 1 August 2020 | 4,274,085 |
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73,291,494 |
Profit for the year |
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Fair Value reserve transfer | 1,451,307 | - | (1,451,307 | ) | - |
At 31 July 2021 |
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74,660,955 |
Truffle Farms Europe Limited (Registered number: SC510853) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 July 2021 |
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9. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
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The following advances and credits to directors subsisted during the years ended 31 July 2021 and 31 July 2020: |
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31.7.21 | 31.7.20 |
£ | £ |
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Balance outstanding at start of year |
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Amounts advanced |
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Amounts repaid | ( |
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Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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Balance outstanding at start of year |
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Amounts advanced |
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Amounts repaid | ( |
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Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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The above balances have had interest charged at between 2.25% and 2.50% per annum. Directors loans have no fixed repayment date and are unsecured. |
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10. | RELATED PARTY DISCLOSURES |
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Included in other debtors > 1 year is a loan of £2,405,063 to Truffle Farms Estates SL, a company registered in Spain. Mr M Waddell is a Director of both companies. |
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11. | ULTIMATE CONTROLLING PARTY |
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Mr M Waddell is the ultimate controlling party by virtue of his majority shareholding. |