HOB Farms Limited - Limited company accounts 18.2

REGISTERED NUMBER: 08330209 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2019

FOR

HOB FARMS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Profit and Loss Account

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

P E Osborne

D B Byrd

S J Houghton

REGISTERED OFFICE:

Ascot Road

Pershore

Worcestershire

WR10 2JJ

REGISTERED NUMBER:

08330209 (England and Wales)

AUDITORS:

Kingscott Dix (Cheltenham) Limited

Statutory Auditor

Chartered Accountants

Malvern View Business Park

Stella Way

Bishops Cleeve

Cheltenham

Gloucestershire

GL52 7DQ

The directors present their strategic report of the company and the group for the year ended 31 January 2019.

REVIEW OF BUSINESS

The directors are pleased to report a successful year.

The group achieved a pre-tax profit of £625,785 compared with £587,140 in the previous year. At 31 January 2019 shareholders

funds were £980,225 compared with £715,127 last year.

PRINCIPAL RISKS AND UNCERTAINTIES

Principal risks and uncertainties facing the group include the general difficult trading conditions the economy presents, and

uncertainty as to exchange rate variations which affects the acquisition price of some of the group's purchases.

KEY PERFORMANCE INDICATORS

Key performance indicators that are focused on by management include Turnover, Direct costs, and Overheads. Each of these are

reviewed regularly by management against the budget and prior periods. The directors are pleased with the performance of the

group during the year with regard the indicators above.

ON BEHALF OF THE BOARD:

P E Osborne - Director

1 October 2019

The directors present their report with the financial statements of the company and the group for the year ended 31 January 2019.

The company acquired Ferryfast Produce Limited on 12 May 2015. Consequently the comparative results are for the 8.5 month

period ended 31 January 2016.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the marketing and distribution of fruit and vegetables.

DIVIDENDS

Interim dividends per share were paid as follows:

23000

- 1 February 2018

23000

- 1 March 2018

23001

- 1 April 2018

23000

- 1 May 2018

23000

- 1 June 2018

23001

- 1 July 2018

23000

- 1 August 2018

23000

- 1 September 2018

23001

- 1 October 2018

23000

- 1 November 2018

23000

- 1 December 2018

23001

- 1 January 2019

276004

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 January 2019 will be £ 276,004 .

FUTURE DEVELOPMENTS

The directors are pleased to announce that the trading results for the current year continue to reflect strong profitability, and the

group is actively seeking new customers to ensure this continues to be the case.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 February 2018 to the date of this report.

P E Osborne

D B Byrd

S J Houghton

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United

Kingdom Accounting Standards and applicable law). 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 the group and of the profit or

loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements 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 and the

group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and

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 the group and hence for taking reasonable steps for the prevention and detection of

fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of

which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in

order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that

information.

AUDITORS

The auditors, Kingscott Dix (Cheltenham) Limited, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

P E Osborne - Director

1 October 2019

Opinion

We have audited the financial statements of HOB Farms Limited (the 'parent company') and its subsidiaries (the 'group') for the year

ended 31 January 2019 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income,

Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of

Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial

Statements, 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).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 January 2019 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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 group in accordance with the ethical requirements that are relevant to our audit of

the financial statements in the UK, including the FRC'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.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or

otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are

required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other

information. 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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of

the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our

opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the

directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due

to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to

continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of

accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic

alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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.

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 Report of the Auditors.

Use of our 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 a Report of the Auditors 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.

Gwyneth Milner (Senior Statutory Auditor)

for and on behalf of Kingscott Dix (Cheltenham) Limited

Statutory Auditor

Chartered Accountants

Malvern View Business Park

Stella Way

Bishops Cleeve

Cheltenham

Gloucestershire

GL52 7DQ

11 October 2019

TURNOVER

3

27,018,449

24,184,811

Cost of sales

(22,361,807

)

(19,888,256

)

GROSS PROFIT

4,656,642

4,296,555

Administrative expenses

(3,958,609

)

(3,630,383

)

698,033

666,172

Other operating income

20,259

21,280

OPERATING PROFIT

5

718,292

687,452

Interest payable and similar expenses

6

(92,507

)

(100,312

)

PROFIT BEFORE TAXATION

625,785

587,140

Tax on profit

7

(84,683

)

(92,201

)

PROFIT FOR THE FINANCIAL YEAR

541,102

494,939

Profit attributable to:

Owners of the parent

541,102

494,939

PROFIT FOR THE YEAR

541,102

494,939

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

541,102

494,939

Total comprehensive income attributable to:

Owners of the parent

541,102

494,939

FIXED ASSETS

Intangible assets

10

272,135

315,677

Tangible assets

11

1,731,208

1,723,204

Investments

12

-

-

2,003,343

2,038,881

CURRENT ASSETS

Stocks

13

229,710

172,621

Debtors

14

3,743,919

3,015,655

Cash at bank and in hand

388,407

642,889

4,362,036

3,831,165

CREDITORS

Amounts falling due within one year

15

(4,319,065

)

(3,698,493

)

NET CURRENT ASSETS

42,971

132,672

TOTAL ASSETS LESS CURRENT LIABILITIES

2,046,314

2,171,553

CREDITORS

Amounts falling due after more than one year

16

(1,008,219

)

(1,370,987

)

PROVISIONS FOR LIABILITIES

20

(57,870

)

(85,439

)

NET ASSETS

980,225

715,127

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

980,125

715,027

SHAREHOLDERS' FUNDS

980,225

715,127

The financial statements were approved by the Board of Directors on 1 October 2019 and were signed on its behalf by:

P E Osborne - Director

D B Byrd - Director

S J Houghton - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

1,611,500

1,611,500

1,611,500

1,611,500

CURRENT ASSETS

Cash at bank and in hand

57,056

25,947

CREDITORS

Amounts falling due within one year

15

(326,496

)

(289,035

)

NET CURRENT LIABILITIES

(269,440

)

(263,088

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,342,060

1,348,412

CREDITORS

Amounts falling due after more than one year

16

(984,657

)

(1,151,989

)

NET ASSETS

357,403

196,423

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

357,303

196,323

SHAREHOLDERS' FUNDS

357,403

196,423

Company's profit for the financial year

436,984

358,357

The financial statements were approved by the Board of Directors on 1 October 2019 and were signed on its behalf by:

P E Osborne - Director

D B Byrd - Director

S J Houghton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2017

100

488,967

489,067

Changes in equity

Dividends

-

(268,879

)

(268,879

)

Total comprehensive income

-

494,939

494,939

Balance at 31 January 2018

100

715,027

715,127

Changes in equity

Dividends

-

(276,004

)

(276,004

)

Total comprehensive income

-

541,102

541,102

Balance at 31 January 2019

100

980,125

980,225

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2017

100

106,845

106,945

Changes in equity

Dividends

-

(268,879

)

(268,879

)

Total comprehensive income

-

358,357

358,357

Balance at 31 January 2018

100

196,323

196,423

Changes in equity

Dividends

-

(276,004

)

(276,004

)

Total comprehensive income

-

436,984

436,984

Balance at 31 January 2019

100

357,303

357,403

Cash flows from operating activities

Cash generated from operations

1

521,573

1,396,699

Interest paid

(86,324

)

(93,362

)

Interest element of hire purchase payments paid

(6,183

)

(6,950

)

Tax paid

(129,330

)

6,377

Net cash from operating activities

299,736

1,302,764

Cash flows from investing activities

Purchase of tangible fixed assets

(637,405

)

(266,460

)

Sale of tangible fixed assets

146,291

80,999

Net cash from investing activities

(491,114

)

(185,461

)

Cash flows from financing activities

Loan repayments in year

(159,566

)

(151,800

)

HP capital repayments in year

(184,523

)

(196,665

)

Equity dividends paid

(276,004

)

(268,879

)

Net cash from financing activities

(620,093

)

(617,344

)

(Decrease)/increase in cash and cash equivalents

(811,471

)

499,959

Cash and cash equivalents at beginning of year

2

642,889

142,930

Cash and cash equivalents at end of year

2

(168,582

)

642,889

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2019

2018

£

£

Profit before taxation

625,785

587,140

Depreciation charges

486,231

515,423

Loss on disposal of fixed assets

40,421

8,824

Finance costs

92,507

100,312

1,244,944

1,211,699

(Increase)/decrease in stocks

(57,089

)

1,465

Increase in trade and other debtors

(728,264

)

(152,655

)

Increase in trade and other creditors

61,982

336,190

Cash generated from operations

521,573

1,396,699

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance

Sheet amounts:

Year ended 31 January 2019

31.1.19

1.2.18

£

£

Cash and cash equivalents

388,407

642,889

Bank overdrafts

(556,989

)

-

(168,582

)

642,889

Year ended 31 January 2018

31.1.18

1.2.17

£

£

Cash and cash equivalents

642,889

401,201

Bank overdrafts

-

(258,271

)

642,889

142,930

1.	STATUTORY INFORMATION

HOB Farms Limited is a private company, limited by shares , registered in England and Wales. The company's registered

number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates

The directors are of the opinion that there are no significant judgements or estimations used in preparing the financial

statements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added

tax and other sales taxes.

Produce sales are recognised when orders leave the warehouse. Haulage sales are recognised when the delivery is made.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2016, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any

accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving

items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account,

except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are

charged to profit or loss in the period to which they relate.

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic

financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2019

2018

£

£

Produce wholesale

21,801,139

19,490,883

Transport and logistics

5,217,310

4,693,928

27,018,449

24,184,811

An analysis of turnover by geographical market is given below:

2019

2018

£

£

United Kingdom

27,018,449

24,184,811

27,018,449

24,184,811

4.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

4,502,679

3,841,375

Social security costs

382,271

341,316

Other pension costs

9,013

7,446

4,893,963

4,190,137