Rackham Group Ltd - Limited company accounts 20.1

REGISTERED NUMBER: 05388109 (England and Wales)

Directors' Report and

Audited Consolidated Financial Statements

for the Year Ended 31 December 2021

for

Rackham Group Ltd

Page

Company Information

1

Directors' Report

2

Report of the Independent Auditors

4

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

P A Rackham

S A Rackham

S R Stuteley

P A Rackham Jnr

J Williams

SECRETARY:

S R Stuteley

REGISTERED OFFICE:

Manor Farm

122 The Street

Bridgham

Norwich

Norfolk

NR16 2RX

REGISTERED NUMBER:

05388109 (England and Wales)

INDEPENDENT AUDITORS:

Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2021.

PRINCIPAL ACTIVITIES

The principal activities of the group in the year under review were those of agriculture, property investment and property dealing and development.

DIVIDENDS

Interim dividends were paid during the year on each class of share at different rates as follows:

Share class

Amount per share

"A"

£18.349

"B"

£4.070

"C"

£5.215

"D"

£4.581

In aggregate the amount paid during the year was £872,043 (2020: £383,960).

The directors do not propose a final dividend. (2020: nil).

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

P A Rackham

S A Rackham

S R Stuteley

P A Rackham Jnr

J Williams

POLITICAL DONATIONS AND EXPENDITURE

Donations made in the year totalling £1,746 (2020: £13,031) all related to charity donations.

There were no donations made in respect of political parties.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Directors' Report 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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, Knights Lowe Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S R Stuteley - Director

30 June 2022

Opinion

We have audited the financial statements of Rackham Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity and 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 December 2021 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Directors' Report, 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 this gives rise to a material misstatement in the financial statements themselves. 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Directors' Report has 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 Directors' Report.

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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report.

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on pages two and 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the companies operating sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias;

- investigated the rationale behind significant or unusual transactions; and

- investigated the company's basis for making accounting estimates and tested the amounts presented for accuracy. This includes depreciation, valuation of traded investments, valuation of investment properties, and the revaluation of freehold property which took place in the financial year.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims;

- reviewing correspondence with HMRC, relevant regulators [include details] and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

James Knights ACA BSc (Senior Statutory Auditor)

for and on behalf of Knights Lowe Limited

Eldo House

Kempson Way

Suffolk Business Park

Bury St Edmunds

Suffolk

IP32 7AR

30 June 2022

TURNOVER

4

15,966,761

4,458,379

Cost of sales

3,458,850

2,519,404

GROSS PROFIT

12,507,911

1,938,975

Administrative expenses

1,983,977

1,342,430

OPERATING PROFIT

6

10,523,934

596,545

Interest receivable and similar income

7

153,953

10,006

10,677,887

606,551

(Loss)/gain on revaluation of investments

1,052

1,942

10,678,939

608,493

Interest payable and similar charges

8

207,937

16,110

PROFIT BEFORE TAXATION

10,471,002

592,383

Tax on profit

9

2,036,497

112,709

PROFIT FOR THE FINANCIAL YEAR

8,434,505

479,674

Profit attributable to:

Owners of the parent

8,098,191

533,135

Non-controlling interests

336,314

(53,461

)

8,434,505

479,674

PROFIT FOR THE YEAR

8,434,505

479,674

OTHER COMPREHENSIVE INCOME

Freehold property revaluation

-

14,052,565

Deferred tax on revaluation

(440,723

)

(1,395,622

)

Fixed asset investment

-

3,008

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(440,723

)

12,659,951

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

7,993,782

13,139,625

Total comprehensive income attributable to:

Owners of the parent

7,657,468

13,193,086

Non-controlling interests

336,314

(53,461

)

7,993,782

13,139,625

FIXED ASSETS

Intangible assets

12

(5,424,385

)

(5,424,385

)

Tangible assets

13

40,881,694

40,667,333

Investments

14

-

-

Investment property

15

6,727,551

6,727,551

42,184,860

41,970,499

CURRENT ASSETS

Stocks

16

9,127,232

7,798,387

Debtors

17

12,091,800

1,710,966

Investments

18

57,398

56,346

Cash at bank

1,273,539

568,856

22,549,969

10,134,555

CREDITORS

Amounts falling due within one year

19

13,693,795

8,617,416

NET CURRENT ASSETS

8,856,174

1,517,139

TOTAL ASSETS LESS CURRENT LIABILITIES

51,041,034

43,487,638

CREDITORS

Amounts falling due after more than one year

20

(13,000

)

(30,000

)

PROVISIONS FOR LIABILITIES

23

(2,131,746

)

(1,626,549

)

NET ASSETS

48,896,288

41,831,089

CAPITAL AND RESERVES

Called up share capital

24

113,776

113,776

Share premium

25

2,338,021

2,338,021

Fair value reserve

25

13,053,281

13,494,004

Retained earnings

25

32,108,469

24,786,557

SHAREHOLDERS' FUNDS

47,613,547

40,732,358

NON-CONTROLLING INTERESTS

26

1,282,741

1,098,731

TOTAL EQUITY

48,896,288

41,831,089

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 30 June 2022 and were signed on its behalf by:

S R Stuteley - Director

FIXED ASSETS

Intangible assets

12

-

-

Tangible assets

13

-

-

Investments

14

2,463,567

2,463,567

Investment property

15

-

-

2,463,567

2,463,567

CURRENT ASSETS

Debtors

17

1,496

1,496

NET CURRENT ASSETS

1,496

1,496

TOTAL ASSETS LESS CURRENT LIABILITIES

2,465,063

2,465,063

CAPITAL AND RESERVES

Called up share capital

24

113,776

113,776

Share premium

2,338,021

2,338,021

Retained earnings

13,266

13,266

SHAREHOLDERS' FUNDS

2,465,063

2,465,063

Company's profit for the financial year

758,083

383,960

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 30 June 2022 and were signed on its behalf by:

S R Stuteley - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Balance at 1 January 2020

113,776

22,538,610

2,338,021

Changes in equity

Increase in share capital

-

20,173

-

Dividends

-

(383,960

)

-

Total comprehensive income

-

536,143

-

Transfer between reserves

-

2,075,591

-

Balance at 31 December 2020

113,776

24,786,557

2,338,021

Changes in equity

Increase in share capital

-

95,625

-

Dividends

-

(871,904

)

-

Total comprehensive income

-

8,098,191

-

Balance at 31 December 2021

113,776

32,108,469

2,338,021

Fair

value

Non-controlling

Total

reserve

Total

interests

equity

£

£

£

£

Balance at 1 January 2020

2,912,652

27,903,059

1,183,120

29,086,179

Changes in equity

Increase in share capital

-

20,173

(30,928

)

(10,755

)

Dividends

-

(383,960

)

-

(383,960

)

Total comprehensive income

12,656,943

13,193,086

(53,461

)

13,139,625

Transfer between reserves

(2,075,591

)

-

-

-

Balance at 31 December 2020

13,494,004

40,732,358

1,098,731

41,831,089

Changes in equity

Increase in share capital

-

95,625

(152,304

)

(56,679

)

Dividends

-

(871,904

)

-

(871,904

)

Total comprehensive income

(440,723

)

7,657,468

336,314

7,993,782

Balance at 31 December 2021

13,053,281

47,613,547

1,282,741

48,896,288

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2020

113,776

13,266

2,338,021

2,465,063

Changes in equity

Dividends

-

(383,960

)

-

(383,960

)

Total comprehensive income

-

383,960

-

383,960

Balance at 31 December 2020

113,776

13,266

2,338,021

2,465,063

Changes in equity

Dividends

-

(758,083

)

-

(758,083

)

Total comprehensive income

-

758,083

-

758,083

Balance at 31 December 2021

113,776

13,266

2,338,021

2,465,063

1.	STATUTORY INFORMATION

Rackham Group Ltd 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 the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. There were no material departures from those standards. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets.

Basis of consolidation

The consolidated financial statements incorporate the results of the Company and entities controlled by the Company (its subsidiaries) made up to 31 December each year. Control is achieved where the Company has the power to govern the financial and operating policies of the investee entity. Minority interest are accounted for in accordance with section 9 of Financial Reporting Standard 102 whereby the results and net assets of an investee are wholly consolidated and minority interests are disclosed on the profit and loss account and balance sheet in proportion to the share of the equity held in the investee.

Upon acquisition, adjustments are made as required to subsidiaries financial statements so as to align accounting policies with those of the Group. Goodwill is recognised and treated as stated below.

All intra-group transactions, balances, income and expenses are eliminated on consolidation.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover

Turnover represents amounts receivable derived from the Group's ordinary activities, net of discounts and excluding value added tax. Revenue is recognised as follows:

Rental and similar income is accrued on a time basis in the period to which it relates by reference to underlying contracts.

Income from the sale of land and buildings is recognised at the date of unconditional exchange of contract.

Livestock and produce revenue is recognised at the point legal title to stock passes to the customer, normally at collection or delivery.

Interest income is accrued on a time basis by reference to the underlying capital sum and applicable interest rate.

Dividend income from investments is recognised at the date of receipt.

Goodwill

Goodwill arising on consolidation is included in the accounts based on the fair value of net assets of the subsidiary acquired at the date of acquisition. Amortisation is charged over the estimated life of goodwill.

Negative goodwill is written back to the profit and loss account upon disposal of the underlying investment in the subsidiary.

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 the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

not provided

Plant and machinery

-

5 years straight line

Fixtures and fittings

-

5 years straight line

Motor vehicles

-

4 years straight line

The measurement basis for freehold land and buildings is at fair value, on a revaluation basis.

Plant, machinery and all other tangible fixed assets are held at historic cost, less accumulated depreciation.The directors estimate residual values on an asset by asset basis and apply depreciation accordingly.

During the year a full review has been made of non-investment freehold property and the directors considered the values for all properties and have considered the valuation for each individual asset and that the revaluation method is the most appropriate recognition method going forward. Therefore these are recognised at current fair value.

The directors consider freehold land and buildings on a group basis for impairment, and should the recoverable amount be below valuation or cost an impairment review is carried out and recognised as required.The position will be reviewed annually.

Investment property

Investment property held to earn rental income and/or capital appreciation is included in the balance sheet at fair value where such value can be measured reliably without undue cost or effort on an ongoing basis. Fair value adjustments are taken to the profit and loss account.The property is not depreciated which is a treatment contrary to the Companies Act 2006 however in the opinion of the Directors the policy adopted by the Company provides a true and fair view.

The majority of such properties are on the main farming estate and are thus difficult to independently value. In accordance with Section 16 of FRS 102 such properties are accounted for under the principles applying to property plant and equipment as described above.

Stocks

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

For stock properties, cost comprises the cost of acquisition of property, professional and planning fees and construction and infrastructure costs, but excludes overheads. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing and selling the properties.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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.

Taxation

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 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.

Derivative financial instruments

The company uses derivative financial instruments to reduce exposure to interest rate movements. The company does not hold or issue derivative financial instruments for speculative reasons.

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognised in the profit and loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in the profit or loss depends on the nature of the hedge relationship.

The best evidence of fair value is quoted price for an identical asset in an active market. When quoted prices are unavailable, the price of a recent transaction for an identical asset provides evidence of fair value as long as there has not been a significant change in economic circumstances or a significant lapse of time since the transaction took place. If the market is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the fair value is estimated by using a valuation technique.

Current asset investments

Investments comprise current asset investments which are originally recognised at cost. Where the fair value can be reliably determined, the investments are subsequently stated at fair value at each balance sheet date with change to values being recognised in the profit and loss account. Those current investments where fair values cannot be reliably determined are stated at cost.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group's accounting policies, which are described below, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 estimated and underlying assumptions are reviewed on an ongoing basis. Revision to accounting estimates are recognised in the period in which the estimate is revised if revision affects only that and future periods.

The following are critical judgements including those involving estimations, that the directors have made in the process of applying the Group's accounting policies and that have the most significant effect on the amounts recognised in the financial statements.

Depreciation of tangible fixed assets - property, plant and machinery

Tangible fixed assets are recognised at cost and depreciated on the basis appropriate to charge to the profit and loss the economic consumption of those assets during the accounting period. The charge is calculated as described below and is based on the directors knowledge of the reduction in the residual value of trading assets and estate property on average over the investment cycle of each class of asset. The rates of depreciation are kept under review such that assets are written down to residual value at the end of the economic lives of the assets.

Revaluation of investment properties

The Group carries investment properties at fair value, with changes in fair value being recognised in the profit or loss. The Directors have determined fair values on a property by property basis at open market value based on assumptions on expected yield given the location and nature of the property comparable to other known sales or potential sales in the region. Where considered appropriate, the directors seek formal or informal valuations by land and estate agents.

4.

TURNOVER

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

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

2021

2020

£

£

Farming income

2,785,229

2,105,435

Property development and sales

10,211,105

-

Serviced warehousing income

1,236,125

1,014,017

Letting and lease income

1,350,012

1,118,737

Other operating income

384,290

220,190

15,966,761

4,458,379

5.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2020 - 13 ) .

The average number of employees by undertakings that were proportionately consolidated during the year was 3 (2020 - 3 ) .

6.	OPERATING PROFIT

The operating profit is stated after charging:

2021

2020

£

£

Depreciation - owned assets

243,202

178,279

Depreciation - assets on hire purchase contracts

51,133

61,746

Audit fees for group companies

35,267

34,675

Other non- audit services

18,827

11,285

7.

INTEREST RECEIVABLE AND SIMILAR INCOME

2021

2020

£

£

Deposit account interest

4

6

Bank account interest

103,949

-

Other interest receivable

50,000

10,000

153,953

10,006

8.

INTEREST PAYABLE AND SIMILAR CHARGES

2021

2020

£

£

Bank loan interest payable

207,937

210,478

Other interest

-

(194,368

)

207,937

16,110

9.

TAXATION

Analysis of the tax charge

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

2021

2020

£

£

Current tax:

UK corporation tax

1,972,020

314,196

Prior period tax adjustment

-

(262,453

)

Total current tax

1,972,020

51,743

Deferred tax

64,477

60,966

Tax on profit

2,036,497

112,709

UK corporation tax has been charged at 19 % (2020 - 19 %).