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Registered number: 04781534
GREENSHOOTS LIMITED
FILLETED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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GREENSHOOTS LIMITED
REGISTERED NUMBER: 04781534
BALANCE SHEET
AS AT 30 JUNE 2021
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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GREENSHOOTS LIMITED
REGISTERED NUMBER: 04781534
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2021
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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N L Allpress (Chairman)
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The notes on pages 3 to 11 form part of these financial statements.
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GREENSHOOTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
Greenshoots Limited is a company incorporated in England and Wales, registration number 04781534. The registered office is Hollyhouse Farm, Horseway, Chatteris, Cambridgeshire, PE16 6XQ.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
The financial statements do not include a cash flow statement because the company, as a small reporting entity, is exempt from the requirement under Section 1A of Financial Reporting Standard 102.
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Member’s levies are credited to the revenue account in the period in which the expenditure to which it relates is debited.
Where the levies relate to expenditure the benefit of which will be received over a period of more than one year an amount of the levies is carried forward to be credited in future years as deferred income.
In a similar manner EU Financial Assistance is credited to the revenue account as "other operating income" in the same period in which expenditure to which it relates is charged. Grant relating to fixed assets is released on a straight line basis over 5 years as after that period no grant is repayable even if the assets are sold.
Member’s levies in respect of capital items subject to depreciation are spread over the useful life of the asset as set out in 2.4 below.
Greenshoots Limited markets produce on behalf of its members. The ownership of the produce is retained by the member until it is sold and thus these accounts do not reflect the value of produce sold on behalf of members or any charges relating to the marketing of the produce.
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GREENSHOOTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using straight-line or reducing balance methods.
Depreciation is provided on the following basis:
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General plant and machinery
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20% reducing balance/straight line
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33%/20% reducing balance/straight line
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Fixed plant and equipment
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20% reducing balance/straight line
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33%/20% reducing balance/straight line
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20% reducing balance/straight line
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
From 1st July 2015 all additions have been depreciated on a straight line basis over 5 years to align the depreciation policy with the amortisation of government grants.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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GREENSHOOTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
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 the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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GREENSHOOTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Government grants relating to tangible fixed assets are treated as deferred income and released to the profit and loss account on a straight line basis over 5 years. Other grants are credited to the profit and loss account as the related expenditure is incurred.
Levies received from members relating to tangible fixed assets are treated as deferred income and released to the profit and loss account over the expected useful lives of the assets concerned. Other levies are credited to the profit and loss account as the related expenditure is incurred. Levies received during the year in excess of expenditure incurred are carried forward as deferred income.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight line basis over the lease term.
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GREENSHOOTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
2.Accounting policies (continued)
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Leased assets: the Company as lessee
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Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date.
Interest income is recognised in profit or loss using the effective interest method.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
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GREENSHOOTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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The average monthly number of employees, including directors, during the year was 25 (2020 - 26).
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General plant and machinery
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Fixed plant and equipment
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Charge for the year on owned assets
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The net book value of land and buildings may be further analysed as follows:
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Land is not depreciated, freehold buildings are depreciated using the straight-line method.
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GREENSHOOTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
4.Tangible fixed assets (continued)
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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Freehold buildings - Solar PV
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Prepayments and accrued income
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Included in Other Debtors and Other Creditors in the prior year are amounts that were incorrectly invoiced by third parties, which were corrected by them during the current year.
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Cash and cash equivalents
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GREENSHOOTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Trade creditors exclude amounts due to members for produce sold by the company as agents amounting to £3,242,434 (2020: £4,913,700).
Other Creditors includes £1,113,603 due to members, representing levies paid by them in excess of expenditure incurred by the company as at 30 June 2021 (2020: £1,196,115 due to members).
Included in Other Debtors and Other Creditors in the prior year are amounts that were incorrectly invoiced by third parties, which were corrected by them during the current year.
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The following liabilities were secured:
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Obligations under finance lease and hire purchase contracts
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Details of security provided:
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The bank overdraft is secured by fixed and floating charges over land and property owned by the company.
Hire purchase agreements are secured against the assets to which they relate.
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Creditors: Amounts falling due after more than one year
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Accruals and deferred income
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GREENSHOOTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
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Allotted, called up and fully paid
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14 (2020 - 14) Ordinary Shares shares of £1.00 each
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Profit and loss account
The profit and loss account includes all current and prior period retained profits and losses.
There is a potential liability arising in the event of the Rural Payments Agency, who are responsible for the administration of the EU Fresh Fruit and Vegetable Aid Scheme, determining that Greenshoots Limited has failed to comply with the requirements of the scheme, which may result in the funds being repaid to them. Further there is a potential contingent liability if it is determined that Greenshoots Limited has failed to comply with the terms of the agreement for marketing the members produce.
At the time of signing these accounts, Greenshoots Limited has not received any indication that any grant received to date will need to be repaid.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £17,072 (2020: £19,545). Contributions totalling £442 (2020: £468) were payable to the fund at the balance sheet date
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Related party transactions
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The company is a mutual trading company. All levy income is from business represented by the directors and/or shareholders on normal commercial terms. No transactions have been undertaken with the directors and/or shareholders themselves other than directors remuneration detailed above.
Total marketed production on behalf of members amounted to £33,183,289 in the year ended 30 June 2021 (2020: £33,540,557).
Key management personnel remuneration in the period amounted to £28,450 (2020: £28,450).
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The company is controlled by its directors, details of these can be found in the directors report.
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