Company No: 03446782 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2021		2020
		£		£
Fixed assets
Tangible assets	3	494,436		324,868
		494,436		324,868
Current assets
Stocks	4	54,199		25,162
Debtors	5	80,333		57,928
Cash at bank and in hand	6	120,020		61,700
		254,552		144,790
Creditors
Amounts falling due within one year	7	( 1,435,472)		( 780,847)
Net current liabilities		(1,180,920)		(636,057)
Total assets less current liabilities		(686,484)		(311,189)
Creditors
Amounts falling due after more than one year	8	( 535,876)		( 518,387)
Net liabilities		( 1,222,360)		( 829,576)
Capital and reserves
Called-up share capital	9	333,637		333,637
Profit and loss account		( 1,555,997 )		( 1,163,213 )
Total shareholder's deficit		( 1,222,360)		( 829,576)

For the financial year ending 31 March 2021 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• 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; and
• These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of Cherry Orchard Farm Limited (registered number: 03446782) were approved and authorised for issue by the Director on 28 March 2022. They were signed on its behalf by:

Sir C A Gladstone 8th Baronet AA of Fasque and Balfour Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Cherry Orchard Farm Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Hawarden Estate Office,Glynne Way, Hawarden,Flintshire,CH5 3NX, United Kingdom.

The financial statements have been prepared under the historical cost convention and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Going concern

The company incurred a loss for the year ended 31 March 2021 of £392,784 and has net liabilities of £1,222,360 (2020 - £829,576).

The directors are satisfied that financial support will continue to be available as required from related parties and that the loans advanced from related parties will not be repayable until the company has sufficient funds to do so.

At the time of approving the financial statements, the directors are satisfied that the company has adequate resources to continue in operational existence for the foreseeable future. As a result the directors consider it appropriate to prepare the financial statements on the going concern basis.

Foreign currency

Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Employee benefits

Short term benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

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

Tangible fixed assets

Tangible fixed assets are stated at cost, net of depreciation and any provision for impairment. Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	50 years straight line
Plant and machinery etc.	2 - 5 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Leases

The Company as lessee
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Profit and Loss Account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.

Impairment of assets

Assets are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Non-financial assets
At each balance sheet date, the company reviews its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials that have been incurred in bringing the stocks to their present location and condition.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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 Company after deducting all of its liabilities.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities
Basic financial liabilities, including creditors and bank loans are recognised at transaction price where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised.

2. Employees

	2021		2020
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	52		76

3. Tangible assets

	Land and buildings		Plant and machinery etc.		Total
	£		£		£
Cost
At 01 April 2020	253,485		478,801		732,286
Additions	47,265		198,072		245,337
At 31 March 2021	300,750		676,873		977,623
Accumulated depreciation
At 01 April 2020	76,195		331,223		407,418
Charge for the financial year	5,161		70,608		75,769
At 31 March 2021	81,356		401,831		483,187
Net book value
At 31 March 2021	219,394		275,042		494,436
At 31 March 2020	177,290		147,578		324,868

4. Stocks

	2021		2020
	£		£
Stocks	54,199		25,162

5. Debtors

	2021		2020
	£		£
Trade debtors	12,486		12,738
Corporation tax	18,333		18,333
Other debtors	49,514		26,857
	80,333		57,928

6. Cash and cash equivalents

	2021		2020
	£		£
Cash at bank and in hand	120,020		61,700

7. Creditors: amounts falling due within one year

	2021		2020
	£		£
Bank loans (secured)	35,552		24,245
Trade creditors	165,786		239,052
Other creditors	1,185,054		437,427
Corporation tax	0		8,592
Other taxation and social security	4,232		50,213
Obligations under finance leases and hire purchase contracts (secured)	44,848		21,318
	1,435,472		780,847

The bank loan and overdraft are secured by a personal guarantee in the name of Sir C A Gladstone.

Obligations under finance leases and hire purchase contracts are secured against the relevant assets.

8. Creditors: amounts falling due after more than one year

	2021		2020
	£		£
Bank loans (secured)	465,478		501,119
Obligations under finance leases and hire purchase contracts (secured)	70,398		17,268
	535,876		518,387

The bank loan is secured by guarantee in the name of Sir C A Gladstone, together with a first legal charge over land (approx 113 acres) of Rake Lane, Hawarden.

Obligations under finance leases and hire purchase contracts are secured against the relevant assets.

9. Called-up share capital

	2021		2020
	£		£
Allotted, called-up and fully-paid
333,637 Ordinary shares of £ 1.00 each	333,637		333,637

10. Financial commitments

Commitments

Capital commitments are as follows:

	2021		2020
	£		£
Contracted for but not provided for:
	21,522		0

11. Related party transactions

Transactions with related parties.
Cherry Orchard Farm Limited occupies land, which is owned by Lady Rosamund Gladstone's 1987 Settlement and appointed to C A Gladstone for life, on a rent free basis by way of a Trustees' resolution.

At the year end the company was in receipt of a loan from Lady Rosamund Gladstone's 1987 Settlement in the sum of £1,040,000 (2020 - £246,000), which is included within other creditors due within one year.

During the year the company made sales of £7,269 and purchases of £10,553 from a company in which a director is also a director and shareholder. The balance due to the company at the year end was £5,766 (2020 - £1,884).

During the year the company made sales of £189,967 and purchases of £3,129 from a company in which a director is also a director and shareholder. The balance due to the company at the year end was £7,768 (2020 - £10,325). Furthermore a loan balance of £64,435 (2020 - £64,435) due by the company is included within other creditors.

At the year end, a balance of £19,812 (2020 - £53,467) was due to a director.