R & P Farming Ltd - Period Ending 2022-08-31
R & P Farming Ltd - Period Ending 2022-08-31
Company registration number:
for the Year Ended
R & P Farming Ltd
(Registration number: 04911933)
Balance Sheet as at 31 August 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Trade and other receivables |
18,120 |
18,240 |
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Biological assets |
197,475 |
127,815 |
|
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
|||
Deferred tax liabilities |
(206,410) |
(199,481) |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
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Profit and loss account |
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Total equity |
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R & P Farming Ltd
(Registration number: 04911933)
Balance Sheet as at 31 August 2022
For the financial year ending 31 August 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.
Approved and authorised by the
|
R & P Farming Ltd
(Registration number: 04911933)
Balance Sheet as at 31 August 2022
Directors' responsibilities:
• |
|
• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
R & P Farming Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2022
General information |
The company is a private company limited by share capital, incorporated in United Kingdom.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
These financial statements are presented in Sterling (£).
Turnover recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of crop and livestock, the provision of contracting services and the receipt of government grants. Turnover is shown net of VAT and is recognised at the point of dispatch for the sale of crops and livestock, straight line over the period in which services are provided to customers and in the period to which the government grant relates.
Government grants
Income from grants is recognised within turnover when the conditions for receipt have been complied with and there is reasonable assurance that the grant will be received.
R & P Farming Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2022
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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.
Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.
Tangible assets
Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation of tangible assets
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Land and buildings |
2% - 7.5% straight line |
Furniture, fittings and equipment |
25% reducing balance |
Motor vehicles |
25% reducing balance |
Plant and machinery |
15% reducing balance |
Biological non-current assets
Biological assets held for continuing use within the business are classified as fixed assets. Such assets are measured at cost less accumulated depreciation and impairment. Assets within the classification comprise breeding ewes.
Depreciation of biological non-current assets
Depreciation is charged so as to write off the cost of assets, less their estimated selling price less costs to sale, over their estimated useful economic life as follows:
Asset class |
Depreciation method and rate |
Flock |
Straight line over 5 years |
R & P Farming Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2022
Biological current assets
Biological assets not held for continuing use within the business are classified as current assets. Such assets are measured at cost less accumulated impairment. Assets within this classification comprise growing crops, beef youngstock and sheep youngstock.
Basic Payment Scheme
Basic payment scheme (BPS) entitlements are initially recognised at cost. Cost for originally granted BPS entitlements, is the fair value on transition to FRS102 and has been recognised through a debit to intangible assets and a credit to deferred income. Both purchased and granted entitlements are subsequently measured at cost less accumulated amortisation and impairment losses. For granted BPS, deferred income is released to the profit and loss as other operating income at the same rate at which the intangible asset is amortised.
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Basic Payment Scheme entitlements |
Straight line over 7 years |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
R & P Farming Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2022
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Other debtors are amounts due from customers where the work has been completed during the year but not yet invoiced. The income has been recognised in the year in which the work took place as the accounts have been prepared under the accruals basis. Similarly, Prepayments are included, whereby payments have been made by the company within the year for services that have not yet been received, along with the VAT balance owed to HMRC as at the year end.
Stocks
Stocks comprising agricultural produce (i.e crops in store) and deadstock such as fuel are stated at the lower of cost and estimated selling price less costs to complete and sell. Agricultural produce (i.e crops in store) harvested from biological assets are measured at the point of harvest.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Other creditors are amounts due to suppliers where the work has been completed during the year but no invoice received. The expense has been recognised in the year in which the work took place as the accounts have been prepared under the accruals basis. Loans to directors are also included within this balance, as is the Deferred Income balance in relation to the release of the Basic Payment Scheme Entitlements, which is an Intangible Asset revalued on the transition to FRS102 Section 1A.
R & P Farming Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2022
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.
Reserves
Called up share capital represents the nominal value of shares that have been issued.
Profit and loss account includes all current and prior period profits and losses.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
R & P Farming Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2022
Defined contribution pension obligation
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Staff numbers |
The average number of persons employed by the company (including directors) during the year was
Intangible assets |
Basic payment scheme entitlements |
Total |
|
Cost or valuation |
||
At 1 September 2021 |
|
|
Disposals |
( |
( |
At 31 August 2022 |
|
|
Amortisation |
||
At 1 September 2021 |
|
|
Amortisation charge |
|
|
Amortisation eliminated on disposals |
( |
( |
At 31 August 2022 |
|
|
Carrying amount |
||
At 31 August 2022 |
|
|
At 31 August 2021 |
|
|
Basic Payment Scheme Entitlements
The amortisation charge for the year is recognised within depreciation in the profit and loss. Deferred income has been released to the profit and loss and is recognised as other operating income. The net effect in the profit and loss for the year is £237, being the amortisation charge on purchased entitlements.
R & P Farming Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2022
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Plant and machinery |
Total |
|
Cost or valuation |
|||||
At 1 September 2021 |
|
|
|
|
|
Additions |
|
- |
- |
|
|
Disposals |
- |
- |
- |
( |
( |
At 31 August 2022 |
|
|
|
|
|
Depreciation |
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At 1 September 2021 |
|
|
|
|
|
Charge for the year |
|
- |
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
At 31 August 2022 |
|
|
|
|
|
Carrying amount |
|||||
At 31 August 2022 |
|
- |
|
|
|
At 31 August 2021 |
|
- |
|
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|
Included within the net book value of land and buildings above is £927,613 (2021 - £923,628) in respect of freehold land and buildings and £372,146 (2021 - £383,141) in respect of long leasehold land and buildings.
R & P Farming Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2022
Biological assets |
Flock |
Total non- current assets |
Lambs |
Beef young stock |
Total current assets |
|
Cost or valuation |
|||||
At 1 September 2021 |
17,917 |
17,917 |
22,215 |
105,600 |
127,815 |
Purchases/transfers in |
- |
- |
- |
71,550 |
71,550 |
Sales/transfers out |
(120) |
(120) |
(1,890) |
- |
(1,890) |
At 31 August 2022 |
17,797 |
17,797 |
20,325 |
177,150 |
197,475 |
Depreciation |
|||||
At 1 September 2021 |
(323) |
(323) |
- |
- |
- |
At 31 August 2022 |
(323) |
(323) |
- |
- |
- |
Carrying amount |
|||||
At 31 August 2022 |
18,120 |
18,120 |
20,325 |
177,150 |
197,475 |
At 31 August 2021 |
18,240 |
18,240 |
22,215 |
105,600 |
127,815 |
R & P Farming Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2022
Investments |
2022 |
2021 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 September 2021 |
|
Additions |
|
At 31 August 2022 |
|
Provision |
|
Carrying amount |
|
At 31 August 2022 |
|
At 31 August 2021 |
|
Stocks |
2022 |
2021 |
|
Other stocks |
|
|
Debtors |
Current |
2022 |
2021 |
Trade debtors |
|
|
Prepayments |
|
|
Other debtors |
|
|
|
|
R & P Farming Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2022
Creditors |
Creditors: amounts falling due within one year
Note |
2022 |
2021 |
|
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Taxation and social security |
|
|
|
Corporation tax |
33,784 |
21,387 |
|
Other creditors |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Creditors: amounts falling due after more than one year
Note |
2022 |
2021 |
|
Due after one year |
|||
Loans and borrowings |
|
|
2022 |
2021 |
|
Due after more than five years |
||
After more than five years by instalments |
|
|
- |
- |
Loans and borrowings |
2022 |
2021 |
|
Current loans and borrowings |
||
Bank borrowings |
|
|
Bank overdrafts |
|
|
Hire purchase contracts |
|
|
Other borrowings |
|
|
|
|
R & P Farming Ltd
Notes to the Unaudited Financial Statements
for the Year Ended 31 August 2022
2022 |
2021 |
|
Non-current loans and borrowings |
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Bank borrowings |
|
|
Hire purchase contracts |
|
|
|
|
Bank borrowings and hire purchase contracts
Bank loans and overdrafts are secured on land owned by the company and on land owned outside of the company by Mr and Mrs R Cotton by way of a debenture. Net obligations under finance lease and hire purchase contracts are secured by fixed charges over the assets to which they relate. |
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
|||
No. |
£ |
No. |
£ |
|
|
|
2,000 |
|
2,000 |
|
|
400 |
|
400 |
|
|
169 |
|
169 |
|
|
|
|
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £