Corbett Farms Limited - Limited company accounts 18.2

REGISTERED NUMBER: 00633546 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 28 February 2019

for

Corbett Farms Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

Mrs P Corbett

R G U Corbett

Mrs P A Corbett

Mrs S C Hudson

SECRETARY:

R G U Corbett

REGISTERED OFFICE:

Ox House

Shobdon

Leominster

Herefordshire

HR6 9LT

REGISTERED NUMBER:

00633546 (England and Wales)

AUDITORS:

A D Accounts Limited

Rural Enterprise Centre

Vincent Carey Road

Rotherwas

Hereford

Herefordshire

HR2 6FE

The directors present their strategic report for the year ended 28 February 2019.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the

year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and

is written in the context of the risks and uncertainties we face.

As a farming business largely based in poultry, the company continues to provide hatching eggs.This along with the

company's other main activities are organized in the the following three enterprises:-

Poultry

Cereals and Crops

Apples and Blackcurrants

We consider that our key financial performance indicators are those that communicate the financial performance and

strength of the company as a whole, these being turnover, gross margin and return on capital employed.

The turnover of the company by departments was as follows:

2019

2018

£   's

£   's

Poultry

7,050

7,022

Cereals and Crops

266

238

Apples and Blackcurrants

317

432

Miscellaneous sales

22

16

7,655

7,708

Overall operating profit has decreased to £748,323 (9.8%) from £1,255,587 (16.3% 2018) and profit before tax to

£793,733 (£1,273,074 - 2018). Return on capital employed has decreased to 9% (16% - 2018).

PRINCIPAL RISKS AND UNCERTAINTIES

With the prospect of Brexit together with the current economy uncertainties and risks in mind, we are aware that any

plans for the future development of the business may be subject to unforeseen future events outside our control.

ON BEHALF OF THE BOARD:

R G U Corbett - Director

20 November 2019

The directors present their report with the financial statements of the company for the year ended 28 February 2019.

DIVIDENDS

Dividends totalling £300,000 were paid during the year ended 28 February 2019 in relation to the previous financial

year.

The directors recommended dividends per share as follows to be paid during the year ended 28 February 2020 in

relation to the year ended 28 February 2019:-

'A' Ordinary £1 shares

NIL

'B' Ordinary £1 shares

£7.40

The total dividends for the year ended 28 February 2019 payable in the following financial year, are £300,000.

DIRECTORS

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

Mrs P Corbett

R G U Corbett

Mrs P A Corbett

Mrs S C Hudson

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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 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 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company'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

company's auditors are aware of that information.

AUDITORS

The auditors, A D Accounts Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R G U Corbett - Director

20 November 2019

Opinion

We have audited the financial statements of Corbett Farms Limited (the 'company') for the year ended 28 February 2019

which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow

Statement and Notes to the 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 company's affairs as at 28 February 2019 and of its 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 company 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 company'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 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.

Opinions 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 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 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 company and its environment obtained in the course of the audit,

we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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 three, 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 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 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.

Allan James Davies F.C.C.A. (Senior Statutory Auditor)

for and on behalf of A D Accounts Limited

Rural Enterprise Centre

Vincent Carey Road

Rotherwas

Hereford

Herefordshire

HR2 6FE

21 November 2019

TURNOVER

3

7,655,097

7,708,025

Cost of sales

(6,240,312

)

(5,755,662

)

GROSS PROFIT

1,414,785

1,952,363

Administrative expenses

(1,144,154

)

(1,150,031

)

270,631

802,332

Other operating income

477,692

453,255

OPERATING PROFIT

5

748,323

1,255,587

Income from fixed asset investments

30,000

7,500

Interest receivable and similar income

29,596

28,146

807,919

1,291,233

Amounts written off investments

6

-

(5,922

)

807,919

1,285,311

Interest payable and similar expenses

7

(14,186

)

(12,237

)

PROFIT BEFORE TAXATION

793,733

1,273,074

Tax on profit

8

(190,388

)

(254,672

)

PROFIT FOR THE FINANCIAL YEAR

603,345

1,018,402

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

603,345

1,018,402

FIXED ASSETS

Tangible assets

10

4,099,879

3,763,610

Investments

11

290,452

290,452

4,390,331

4,054,062

CURRENT ASSETS

Stocks

12

721,468

824,655

Debtors

13

2,210,599

2,330,331

Cash at bank and in hand

922,685

891,872

3,854,752

4,046,858

CREDITORS

Amounts falling due within one year

14

(1,074,533

)

(1,234,179

)

NET CURRENT ASSETS

2,780,219

2,812,679

TOTAL ASSETS LESS CURRENT LIABILITIES

7,170,550

6,866,741

CREDITORS

Amounts falling due after more than one year

15

(363,241

)

(402,777

)

PROVISIONS FOR LIABILITIES

18

(191,500

)

(151,500

)

NET ASSETS

6,615,809

6,312,464

CAPITAL AND RESERVES

Called up share capital

19

58,039

58,039

Share premium

20

58,565

58,565

Capital redemption reserve

20

19,970

19,970

Retained earnings

20

6,479,235

6,175,890

SHAREHOLDERS' FUNDS

6,615,809

6,312,464

The financial statements were approved by the Board of Directors on 20 November 2019 and were signed on its behalf by:

R G U Corbett - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 March 2017

58,039

5,457,488

58,565

19,970

5,594,062

Changes in equity

Dividends

-

(300,000

)

-

-

(300,000

)

Total comprehensive income

-

1,018,402

-

-

1,018,402

Balance at 28 February 2018

58,039

6,175,890

58,565

19,970

6,312,464

Changes in equity

Dividends

-

(300,000

)

-

-

(300,000

)

Total comprehensive income

-

603,345

-

-

603,345

Balance at 28 February 2019

58,039

6,479,235

58,565

19,970

6,615,809

Cash flows from operating activities

Cash generated from operations

1

1,513,110

1,472,126

Interest paid

(10,398

)

(10,491

)

Interest element of hire purchase payments paid

(3,788

)

(1,746

)

Tax paid

(271,888

)

(229,194

)

Net cash from operating activities

1,227,036

1,230,695

Cash flows from investing activities

Purchase of tangible fixed assets

(731,123

)

(194,386

)

Purchase of fixed asset investments

-

(290,000

)

Sale of tangible fixed assets

47,100

28,558

Sale of fixed asset investments

-

5,922

Interest received

29,596

28,146

Dividends received

30,000

7,500

Net cash from investing activities

(624,427

)

(414,260

)

Cash flows from financing activities

Loan repayments in year

(67,820

)

(67,788

)

Capital repayments in year

31,346

(19,991

)

Amount introduced by directors

191,600

538,429

Amount withdrawn by directors

(426,922

)

(371,117

)

Equity dividends paid

(300,000

)

(300,000

)

Net cash from financing activities

(571,796

)

(220,467

)

Increase in cash and cash equivalents

30,813

595,968

Cash and cash equivalents at beginning of year

2

891,872

295,904

Cash and cash equivalents at end of year

2

922,685

891,872

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

2019

2018

£

£

Profit before taxation

793,733

1,273,074

Depreciation charges

361,712

369,382

Profit on disposal of fixed assets

(13,958

)

(12,693

)

Finance costs

14,186

12,237

Finance income

(59,596

)

(35,646

)

1,096,077

1,606,354

Decrease/(increase) in stocks

103,187

(27,305

)

Decrease in trade and other debtors

355,054

50,494

Decrease in trade and other creditors

(41,208

)

(157,417

)

Cash generated from operations

1,513,110

1,472,126

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 28 February 2019

28.2.19

1.3.18

£

£

Cash and cash equivalents

922,685

891,872

Year ended 28 February 2018

28.2.18

1.3.17

£

£

Cash and cash equivalents

891,872

295,904

1.	STATUTORY INFORMATION

Corbett 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 Company Information page.

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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value

added taxes. Turnover includes revenue earned from the sale of goods.

Turnover from the sale of eggs and other goods is recognised when the significant risks and rewards of the

ownership of them has transferred to the buyer. For the sale of eggs, this is usually at the point of hatching. For

the sale of other goods, this is usually at the point that the customer has signed for the delivery of the goods.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

4% on cost

Improvements to property

-

16.67% per annum of net book value

Plant and machinery

-

10% on cost

Stocks

Stock is valued using various methods that are intended to estimate the value at the lower of cost or net realisable

value, after making due allowances for obsolete and slow moving items. In respect of livestock an estimate of the

current cost less provision for reduction in market value is used.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive

Income, 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

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.

Pension costs and other post-retirement benefits

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

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

Financial instruments

Financial instruments are classified and accounted for according to the substance of the contractual arrangement.

They are classified as financial assets, financial liabilities or equity instruments. An equity instrument is any

contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

3.

TURNOVER

The analysis of turnover by activity is as follows:

2019

2018

£

£

Sale of goods

7,655,097

7,708,025

4.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

1,131,447

1,084,714

Social security costs

100,057

93,836

1,231,504

1,178,550

The average number of employees during the year was as follows:

2019

2018

Farming

54

50

Office

2

2

Management

4

4

60

56

2019

2018

£

£

Directors' remuneration

161,770

146,968

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2019

2018

£

£

Depreciation - owned assets

357,279

355,974

Depreciation - assets on hire purchase contracts

4,433

13,406

Profit on disposal of fixed assets

(13,958

)

(12,693

)

Auditors' remuneration

6,500

5,500

6.

AMOUNTS WRITTEN OFF INVESTMENTS

2019

2018

£

£

Investments written off

-

5,922

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Bank loan interest

10,398

10,491

Hire purchase charges

358

79

Leasing

3,430

1,667

14,186

12,237

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2019

2018

£

£

Current tax:

UK corporation tax

150,388

269,572

Deferred tax

40,000

(14,900

)

Tax on profit

190,388

254,672

UK corporation tax has been charged at 19% (2018 - 19.08%).