GLW Feeds Limited - Limited company accounts 20.1

REGISTERED NUMBER: 00506275 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Period

1 April 2018 to 30 September 2019

for

GLW Feeds Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

6

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

Miss S M White

G L White

G L White

G M Palmer

SECRETARY:

Miss S M White

REGISTERED OFFICE:

Lindum Mill

Shepshed

Loughborough

Leicestershire

LE12 9BS

REGISTERED NUMBER:

00506275 (England and Wales)

SENIOR STATUTORY AUDITOR:

Reza Mohidin ACA

AUDITORS:

Bourne & Co.

Statutory Auditors

3 Charnwood Street

Derby

Derbyshire

DE1 2GY

The directors present their strategic report for the period 1 April 2018 to 30 September 2019.

REVIEW OF BUSINESS

The Directors are extremely satisfied with the performance of the company. For the 12th successive year sales volumes

and values grew, and a net profit was achieved. The Directors consider this to be a tremendous achievement and credit

to our staff.

This period has seen the business install and commission an enhanced blending line which has significantly improved

the manufacturing reliability and tonnage capacity of Lindum Mill. The company still sees potential opportunities within

the market, and the work done to date will help us to satisfy this demand. The completed works are Phase 1 of a 3

Phase development plan which will allow the business to continue to grow.

Substantial Work has been undertaken over the last 18 months to further enhance our ERP system and ensure that we

can make our back-office administration more efficient, whilst enhancing service levels to our customers.

Our Wetherby straights trading division has performed very well, and we have developed new geographic regions for

the business. This growth has allowed us to increase our market share in this sector.

The development of the GLW range of products and market segmentation has ensured that the business has more

market coverage to limit exposure to any one species or sector.

PRINCIPAL RISKS AND UNCERTAINTIES

Raw material costs continue to be volatile, with the business continuing to focus on maintaining its ability to react swiftly

to market changes, which the Directors believe gives the business a positive edge over its competition.

The business is exposed to normal business risks of, credit, liquidity, interest, currency and input price volatility. These

risks are limited by the company's policies described below:

Credit Risk

The company's principal financial assets are stock and trade debtors. The principal credit risk arises therefore from its

trade debtors.

In order to manage credit risk, credit limits are set and reviewed using a combination of third-party references and

payment history. We have enhanced the credit control team with the Commercial Director working in conjunction with

the existing and additional credit control team member.

Significant work has been undertaken and payment terms have been reviewed to reduce the exposure and risk to the

business over the last 12 months.

Liquidity Risk

The directors have ultimate responsibility for liquidity risk management, in maintaining adequate reserves, banking and

borrowing facilities. These are regularly reviewed with the company's bankers.

Interest Rate Risk

The company is exposed to interest rate risk through the impact of rate changes on interest bearing borrowings. The

business has interest bearing assets and liabilities in the form of bank loans and borrowings. Interest rates are fixed

over the term of the loan to mitigate interest rate fluctuations.

Foreign Currency Risk

The company has limited exposure to foreign currency risk, as the majority of all of the company's sales and purchases

are denominated in Sterling.

Input Price Risk

The company operates in a competitive marketplace, with raw material input costs being impacted by world commodity

price fluctuations. This risk is mitigated by a conservative hedging policy of forward buying and selling matched

contracts and constantly monitoring the commodity markets.

Covid-19

Alongside the usual business risks, the start of 2020 has seen a new and unexpected threat in the form of Covid-19.

The pandemic has seen us change the ways in which we operate to ensure that we keep both our staff and customers

safe. We have seen Covid-19 affect the markets in different ways, initially with panic buying and more latterly with

disruption to the dairy markets for those farmers who have contracts supplying the catering industry.

More recently, the markets seem to have stabilised and we have seen demand turn to the pre-Covid-19 levels and more

seasonal norms.

We continue to manage this risk by ensuring that we adhere to government guidelines and monitoring our processes

and procedures on a continual basis. We are working alongside our customers to mitigate any potential risks.

Brexit

Brexit continues to be a risk to the business in terms of what deals may be struck with either the EU / Far East / USA /

Sth America. However, there is potential for further opportunities if the UK strike favourable trade deals with other

nations.

The market for our products is domestic, with minimal exposure to other countries for feed sales. However, we do

purchase Raw Materials which are open to currency fluctuations, as well as potential trade tariffs.

Our customer base produce livestock to enter the domestic and international export markets. The impact on exports for

certain goods is not yet known. There is also potential for an unfavourable trade deal with the USA and other countries

which could allow cheaper foodstuffs, not reared to the same standards to enter our markets.

Our spread of market coverage and ability to move between sectors allows us to mitigate these risks.

ANALYSIS OF DEVELOPMENT AND PERFORMANCE

The company's overriding strategy is to continue its growth and profitability by providing its current and potential

customers with the highest quality products, continuing product development and innovation, together with excellent

technical service and back up.

The key performance indicators (KPI's) used in monitoring the company's performance are:

1. Sales Growth

2. Gross Profit on Sales

3. Net return in Assets

KEY PERFORMANCE INDICATORS

2019

2018

Sales Growth

16.7%

16.0%

Gross Profit on sales

8.6%

9.8%

Net return on Assets

11.8%

8.5%

ON BEHALF OF THE BOARD:

G L White - Director

30 June 2020

The directors present their report with the financial statements of the company for the period 1 April 2018 to 30 September 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the period under review was that of agricultural feed merchants with ancillary

services of consultancy and transport.

DIVIDENDS

A dividend of 50.6325 pence per share was paid on 31 December 2018.

DIRECTORS

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

Miss S M White

G L White

G L White

Other changes in directors holding office are as follows:

K M Kinsey - resigned 17 October 2018

G M Palmer - appointed 17 October 2018

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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, Bourne & Co., will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G L White - Director

30 June 2020

Opinion

We have audited the financial statements of GLW Feeds Limited (the 'company') for the period ended

30 September 2019 which comprise the Income Statement, Other 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 30 September 2019 and of its profit for the period 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 five, 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.

Reza Mohidin ACA (Senior Statutory Auditor)

for and on behalf of Bourne & Co.

Statutory Auditors

3 Charnwood Street

Derby

Derbyshire

DE1 2GY

30 June 2020

TURNOVER

144,777,782

82,709,575

Cost of sales

132,383,839

74,612,205

GROSS PROFIT

12,393,943

8,097,370

Administrative expenses

10,853,254

7,258,900

OPERATING PROFIT

4

1,540,689

838,470

Loan to related party

written off

5

-

66,081

1,540,689

772,389

Interest receivable and similar income

-

27,546

1,540,689

799,935

Interest payable and similar expenses

6

245,521

75,720

PROFIT BEFORE TAXATION

1,295,168

724,215

Tax on profit

7

207,259

86,518

PROFIT FOR THE FINANCIAL PERIOD

1,087,909

637,697

PROFIT FOR THE PERIOD

1,087,909

637,697

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

1,087,909

637,697

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

7,020,641

4,901,159

7,020,641

4,901,159

CURRENT ASSETS

Stocks

11

1,122,865

1,345,162

Debtors

12

18,746,288

12,899,931

Cash at bank and in hand

126,285

2,403

19,995,438

14,247,496

CREDITORS

Amounts falling due within one year

13

13,706,268

9,897,054

NET CURRENT ASSETS

6,289,170

4,350,442

TOTAL ASSETS LESS CURRENT LIABILITIES

13,309,811

9,251,601

CREDITORS

Amounts falling due after more than one year

14

(3,244,001

)

(317,453

)

PROVISIONS FOR LIABILITIES

17

(694,700

)

(610,441

)

NET ASSETS

9,371,110

8,323,707

CAPITAL AND RESERVES

Called up share capital

18

80,000

80,000

Retained earnings

19

9,291,110

8,243,707

SHAREHOLDERS' FUNDS

9,371,110

8,323,707

The financial statements were approved by the Board of Directors and authorised for issue on 30 June 2020 and were signed on its behalf by:

G L White - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2017

80,000

7,636,390

7,716,390

Changes in equity

Dividends

-

(30,380

)

(30,380

)

Total comprehensive income

-

637,697

637,697

Balance at 31 March 2018

80,000

8,243,707

8,323,707

Changes in equity

Dividends

-

(40,506

)

(40,506

)

Total comprehensive income

-

1,087,909

1,087,909

Balance at 30 September 2019

80,000

9,291,110

9,371,110

Cash flows from operating activities

Cash generated from operations

1

(289,170

)

151,856

Interest paid

(207,778

)

(57,031

)

Interest element of hire purchase payments paid

(37,743

)

(18,689

)

Tax paid

(127,643

)

(19,065

)

Net cash from operating activities

(662,334

)

57,071

Cash flows from investing activities

Purchase of tangible fixed assets

(2,619,142

)

(699,730

)

Sale of tangible fixed assets

235,429

51,917

Interest received

-

27,546

Net cash from investing activities

(2,383,713

)

(620,267

)

Cash flows from financing activities

New loans in year

2,989,685

-

Loan repayments in year

(541,281

)

(152,228

)

Factor Loan received

1,127,141

-

Capital repayments in year

(711,769

)

(484,142

)

Amount introduced by directors

32,301

379

Equity dividends paid

(40,506

)

(30,380

)

Net cash from financing activities

2,855,571

(666,371

)

Decrease in cash and cash equivalents

(190,476

)

(1,229,567

)

Cash and cash equivalents at beginning of period

2

(2,185,419

)

(955,852

)

Cash and cash equivalents at end of period

2

(2,375,895

)

(2,185,419

)

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

Period

1.4.18

to

Year Ended

30.9.19

31.3.18

£

£

Profit before taxation

1,295,168

724,215

Depreciation charges

1,429,124

691,676

Profit on disposal of fixed assets

(70,855

)

(29,061

)

Movement in provison of onerous contract

-

(462,817

)

Finance costs

245,521

75,720

Finance income

-

(27,546

)

2,898,958

972,187

Decrease/(increase) in stocks

222,297

(266,216

)

Increase in trade and other debtors

(5,882,710

)

(857,109

)

Increase in trade and other creditors

2,472,285

302,994

Cash generated from operations

(289,170

)

151,856

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:

Period ended 30 September 2019

30.9.19

1.4.18

£

£

Cash and cash equivalents

126,285

2,403

Bank overdrafts

(2,502,180

)

(2,187,822

)

(2,375,895

)

(2,185,419

)

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

2,403

1,782

Bank overdrafts

(2,187,822

)

(957,634

)

(2,185,419

)

(955,852

)

1.	STATUTORY INFORMATION

GLW Feeds 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.

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

These accounts represent an 18 month period up to 30 September 2019 and the comparatives are for a year

ended 31 March 2018. As a result they are not directly comparable.

The accounting reference date was changed for commercial reasons.

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.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements,

estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from

other sources. The estimates and associated assumptions are based on historical experience and other factors

that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing bases. Revision to accounting estimates

are recognised in the period in which the estimate is revised where the revision affects only that period, or in the

period of revision and future periods where the revision affects both current and future periods.

The main judgement area concerns the valuation of stock. The directors are happy that their extensive

experience and knowledge in this area will ensure that stock is correctly and accurately valued.

Turnover

Turnover represents net invoiced sales of goods and services excluding value added tax and is recognised at

the fair value of the consideration received or receivable for sale of goods to external customers in the ordinary

course of business. Turnover is recognised at the date of despatch where the company is contracted to

undertake the transportation of goods to the customer's place of business. The fair value of consideration takes

into account returns, discounts and rebates.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2003, is being amortised evenly over its estimated useful life of four 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

Tangible fixed are initially measured at cost and subsequently measured at cost, net of depreciation and any

impairment losses.

Depreciation is recognised so as to write off the cost of assets over their useful economic lives on the following

bases:

Freehold property - 2% on cost

Plant and machinery - 25% reducing balance and at variable rates on reducing balance

Fixtures and fittings - 25% reducing balance

Motor vehicles - 25% reducing balance

Computer equipment - 20% on cost

Stocks

Stocks are stated at their lower of cost and estimated selling price less costs to complete and sell. Cost is based

on the weighted average principle or conversion costs and other costs in bringing them to their existing location

and condition. In the case of manufactured stock and work in progress, cost included an appropriate share of

overheads based on normal operating capacity.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, 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 period 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.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and

rewards of ownership of the leased asset to the company. All other leases are classified as operating leases.

Assets held under finance leases are recognised initially at the fair value of the leased asset (or if lower the

present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor

is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned

between finance charges and reduction of the lease obligation using the effective interst method so a to achieve

a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring

profit or loss. Assets held under finance leases are included in tangible fixed assets and depreciated and

assessed for impairment losses in the same way as owned assets.

Rentals paid under operating leases are charged to profit and loss on a straight line basis over the lease term

unless the rental payments are structured to increase in lone with expected general inflation, in which case the

company recognises annual rent expense equal to amounts owed to the lessor.

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 assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured

at transaction price and are subsequently carried at amortised cost using the effective interest method unless

the arrangement constitutes a financing transaction, where the financial asset is measured at the present value

of the future receipts discounted at a market rate of interest.

Impairment of financial assets

Financial assets. other than those held at fair value through profit and loss, are assessed for indicators of

impairment at each reporting date.

Financial liabilities

Basic financial liabilities, including trade, other creditors and bank loans, 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 payments discounted at a market rate of interest.

Foreign currencies

Assets and liabilities in foreign currencies are translated into Sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into Sterling at the rate of exchange ruling

at the date of the transaction. Exchange differences are taken into account in arriving at the operating result.