Pryor Dairying Limited - Period Ending 2019-12-31

Pryor Dairying Limited

Annual Report and Unaudited Financial Statements
Year Ended 31 December 2019

Registration number: 08503487

Pryor Dairying Limited

Contents

Balance Sheet	1 to 2
Notes to the Unaudited Financial Statements	3 to 10

Pryor Dairying Limited

Balance Sheet

31 December 2019

	Note	2019 £	2018 £
Fixed assets
Intangible assets	4	-	5,668
Tangible assets	5	734,123	712,674
Other financial assets	6	57,653	57,653
		791,776	775,995
Current assets
Stocks	7	612,190	537,700
Debtors	8	21,344	27,601
		633,534	565,301
Creditors: Amounts falling due within one year	9	(473,738)	(375,897)
Net current assets		159,796	189,404
Total assets less current liabilities		951,572	965,399
Creditors: Amounts falling due after more than one year	9	(876,409)	(910,716)
Provisions for liabilities		(52,562)	(46,919)
Net assets		22,601	7,764
Capital and reserves
Called up share capital	11	200	200
Profit and loss account		22,401	7,564
Total equity		22,601	7,764

The notes on pages 3 to 10 form an integral part of these financial statements.

Page 1

Pryor Dairying Limited

Balance Sheet

31 December 2019

For the financial year ending 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 16 June 2020 and signed on its behalf by:
 

......................................... Mr Nathan Pryor Director

Company Registration Number: 08503487

The notes on pages 3 to 10 form an integral part of these financial statements.

Page 2

Pryor Dairying Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2019

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

The principal place of business is:
Menherion
Carnmenellis
Redruth
Cornwall
TR16 6NW

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Page 3

Pryor Dairying Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2019

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold improvements	10% and 5% straight line basis
Plant and machinery	10% straight line basis
Tractors	10% straight line basis
Motor vehicles	20% straight line basis

Intangible assets

Entitlements assets acquired in a business combination are recognised at fair value at the acquisition date.

Entitlements and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Entitlements	Straight line over 5 years

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of stocks held comprises direct livestock costs and, where applicable, those overheads that have been incurred in bringing the livestock to their present location and condition.

Page 4

Pryor Dairying Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2019

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 7 (2018 - 7).

Page 5

Pryor Dairying Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2019

4	Intangible assets

	Entitlements  £	Total £
Cost or valuation
At 1 January 2019	28,340	28,340
At 31 December 2019	28,340	28,340
Amortisation
At 1 January 2019	22,672	22,672
Amortisation charge	5,668	5,668
At 31 December 2019	28,340	28,340
Carrying amount
At 31 December 2019	-	-
At 31 December 2018	5,668	5,668

Page 6

Pryor Dairying Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2019

5	Tangible assets

	Land and buildings £	Tractors  £	Motor vehicles  £	Plant and equipment  £	Total £
Cost or valuation
At 1 January 2019	701,305	57,048	17,723	142,638	918,714
Additions	32,048	11,500	-	50,920	94,468
At 31 December 2019	733,353	68,548	17,723	193,558	1,013,182
Depreciation
At 1 January 2019	118,703	29,001	7,375	50,961	206,040
Charge for the year	43,358	6,855	3,450	19,356	73,019
At 31 December 2019	162,061	35,856	10,825	70,317	279,059
Carrying amount
At 31 December 2019	571,292	32,692	6,898	123,241	734,123
At 31 December 2018	582,602	28,047	10,348	91,677	712,674

Included within the net book value of land and buildings above is £151,366 (2018 - £151,366) in respect of freehold land and buildings.
 

Included within the net book value of tangible fixed assets is £41,678 (2018 - £28,448) in respect of assets held under finance leases and similar hire purchase contracts. Depreciation for the year on these assets was £4,874 (2018 - £3,438).

Page 7

Pryor Dairying Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2019

6	Other financial assets (current and non-current)

	Financial assets at amortised cost £	Total £
Non-current financial assets
Cost or valuation
At 1 January 2019	57,653	57,653
At 31 December 2019	57,653	57,653
Carrying amount
At 31 December 2019	57,653	57,653

7

Stocks

	2019 £	2018 £
Other inventories	612,190	537,700

8

Debtors

	2019 £	2018 £
Trade debtors	8,912	15,403
Other debtors	11,557	12,198
Prepayments	875	-
	21,344	27,601

Page 8

Pryor Dairying Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2019

9

Creditors

Creditors: amounts falling due within one year

	Note	2019 £	2018  £
Due within one year
Loans and borrowings	10	296,796	285,535
Trade creditors		21,480	45,210
Corporation tax		23,017	1,737
Social security and other taxes		978	1,792
Other creditors		127,511	27,799
Accrued expenses		3,956	11,888
Deferred income		-	1,936
		473,738	375,897

Page 9

Pryor Dairying Limited

Notes to the Unaudited Financial Statements

Year Ended 31 December 2019

10	Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Bank borrowings	47,497	45,560
Bank overdrafts	236,363	233,086
Finance lease liabilities	12,936	6,889
	296,796	285,535

	2019 £	2018 £
Loans and borrowings due after one year
Bank borrowings	859,538	903,397
HP and finance lease liabilities	16,871	7,319
	876,409	910,716

The company borrowing is secured by a fixed and floating charge over land and property owned by the company.

11	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary A of £1 each	100	100	100	100
Ordinary B of £1 each	100	100	100	100
	200	200	200	200

12	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £11,000 (2018 - £11,000). The company rents farm land under a farm business tenancy agreement. The rental term is year to year unless and until terminated by either party.

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