FARMSENSE_LTD - Accounts

Company Registration No. 02590151 (England and Wales)

FARMSENSE LTD

ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2021

FARMSENSE LTD

Company information

Farmsense Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Animal House, Boundary Road, Lytham, Lancashire, FY8 5LT.

1.1

Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.

1.2

Going concern

The financial statements have been prepared on a going concern basis. The Company has net current liabilities of £214,127 at 30 June 202true1 (2020: £200,582) and net liabilities of £213,015 at 30 June 2021 (2020: £198,412). The directors have drawn up forecasts covering a period of 12 months from the date of signing the accounts and have considered the impact of COVID-19 on both revenue and costs. Sensitivity analysis has been performed to consider different scenarios. Farmsense Limited has received a letter of support from Tangerine Group Holdings Limited who is under the ultimate control of the same controlling shareholder, D A Haythornthwaite that they can continue to provide financial support to enable the Company to continue trading. The directors are of the opinion that the company can continue as a going concern for the foreseeable future.

1.3

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the product have been transferred to the customer.

1.4

Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment

10% on cost

Fixtures and fittings

10% - 20% on cost

Show equipment

10% on cost

FARMSENSE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2021

Accounting policies

(Continued)

- 5 -

1.5

Stocks

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

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

At each reporting date, an assessment is made for impairment, any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss.

1.6

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities.

Financial assets with no stated interest rate and receivable within one year are stated at transaction price. Any losses arising from impairment are recognised in the income statement in other administrative expenses.

1.7

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business is being amortised over its estimated useful life of ten years. This has now been fully written down.

1.8

Taxation

Taxation for the year 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 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.

1.9

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

FARMSENSE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2021

Accounting policies

(Continued)

- 6 -

1.10

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.

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 basis. Revisions 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 the revision and future periods where the revision affects both current and future periods.

In the directors opinion there are no judgements or key sources of estimation uncertainty in relation to these financial statements.

Turnover

In the year to 30 June 2021 £24,692 (2020: £1,986) of the company's turnover was to markets outside the United Kingdom.

Operating loss

2021

2020

Operating loss for the year is stated after charging:

Auditors remuneration

3,600

Depreciation

1,058

1,068

Research and development

24,268

15,204

Cost of stock

325,170

196,075

Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2021

2020

Number

Total

No directors received remuneration from the Company in respect of services provided in either the current or prior year. Directors' remuneration is paid by Tangerine Holdings Limited.

FARMSENSE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2021

- 7 -

Taxation

2021

2020

Current tax

Adjustments in respect of prior periods

(2,620)

Group tax relief

(1,809)

(2,429)

Total current tax

(4,429)

(2,429)

Deferred tax

Origination and reversal of timing differences

(176)

(34)

Changes in tax rates

(50)

Total deferred tax

(226)

(34)

Total tax credit

(4,655)

(2,463)

UK Corporation tax has been charged at 19%

Factors affecting future tax charges

On 3 March 2021 the UK Chancellor of the Exchequer announced that from 1 April 2023 the main rate of corporation tax will be 25%.

Intangible fixed assets

Goodwill

Cost

At 1 July 2020 and 30 June 2021

4,613

Amortisation and impairment

At 1 July 2020 and 30 June 2021

4,613

Carrying amount

At 30 June 2021

At 30 June 2020

FARMSENSE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2021

- 8 -

Tangible fixed assets

Plant and equipment

Fixtures and fittings

Show equipment

Total

Cost

At 1 July 2020 and 30 June 2021

15,873

48,790

12,955

77,618

Depreciation and impairment

At 1 July 2020

14,382

48,111

12,955

75,448

Depreciation charged in the year

579

479

1,058

At 30 June 2021

14,961

48,590

12,955

76,506

Carrying amount

At 30 June 2021

912

200

1,112

At 30 June 2020

1,491

679

2,170

Stocks

2021

2020

Raw materials and consumables

198,965

59,104

Work in progress

23,371

Finished goods and goods for resale

45,875

198,965

128,350

Debtors

2021

2020

Amounts falling due within one year:

Trade debtors

83,532

133,248

Corporation tax recoverable

2,620

Amounts owed by group undertakings

11,108

59,348

Other debtors

73,156

79,656

Prepayments and accrued income

(977)

2,615

169,439

274,867

Deferred tax asset (note 12)

384

158

169,823

275,025

The amounts owed by group undertakings are interest free and repayable on demand.

FARMSENSE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2021

- 9 -

Creditors: amounts falling due within one year

2021

2020

Trade creditors

5,647

478,668

Amounts owed to group undertakings

87,237

531

Corporation tax

2,620

Other creditors

357,813

135,804

Accruals and deferred income

138,662

51,733

589,359

669,356

The amounts owed to group undertakings are interest free and repayable on demand.

Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets

2021

2020

Balances:

Accelerated capital allowances

269

Timing differences

115

384

158

2021

Movements in the year:

Asset at 1 July 2020

(158)

Credit to profit or loss

(226)

Asset at 30 June 2021

(384)

FARMSENSE LTD

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)

FOR THE YEAR ENDED 30 JUNE 2021

- 10 -

Called up share capital

2021

2020

2021

2020

Ordinary share capital

Number

Issued and fully paid

Ordinary A of £1 each

Ordinary B of £1 each

Ordinary of £1 each

100

110

Ordinary shares have full voting rights and Ordinary A & B Shares have no voting rights.

Profit and loss reserves

This reserve reflects cumulative profits and losses net of distributions to owners

Related party transactions

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

During the year the Company had transactions with companies under the control of D A Haythonrthwaite.

2021

2020

Goods provided

45,547

31,815

Good purchased

201,427

261,922

At the year end the Company had net balances outstanding with companies under the control of D A Haythornthwaite.

2021

2020

Included in Trade debtors/(creditors)

(380,493)

Include in Other debtors/(creditors)

(299,929)

(71,549)

Ultimate controlling party

The Company is a 100% owned subsidiary of Tangerine Agriculture Limited.

The registered office for Tangerine Agriculture Limited is Docklands, Dock Road, Lytham St. Annes, Lancashire, United Kingdom, FY8 5AQ

The Company is under the ultimate control of D A Haythornthwaite, the controlling shareholder of Tangerine Agriculture Limited.