Chalkside Farming Company Limited - Period Ending 2023-01-31

CHALKSIDE FARMING COMPANY LIMITED - Company Information

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REGISTRAR OF COMPANIES

Registration number: 05676582

Chalkside Farming Company Limited

Unaudited Financial Statements

31 January 2023

Chalkside Farming Company Limited

Contents

Accountants' Report	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	4

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Chalkside Farming Company Limited
for the Year Ended 31 January 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Chalkside Farming Company Limited for the year ended 31 January 2023 as set out on pages 2 to 13 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Chalkside Farming Company Limited, as a body, in accordance with the terms of our engagement letter dated 28 September 2022. Our work has been undertaken solely to prepare for your approval the accounts of Chalkside Farming Company Limited and state those matters that we have agreed to state to the Board of Directors of Chalkside Farming Company Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Chalkside Farming Company Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Chalkside Farming Company Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Chalkside Farming Company Limited. You consider that Chalkside Farming Company Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Chalkside Farming Company Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

Dodd & Co Limited
Chartered Accountants
FIFTEEN Rosehill
Montgomery Way
Rosehill Estate
CARLISLE
CA1 2RW

10 October 2023

Chalkside Farming Company Limited

(Registration number: 05676582)
Balance Sheet as at 31 January 2023

	Note	2023 £	2022 £
Fixed assets
Tangible assets	5	2,519,138	2,428,230
Other financial assets	6	174,621	161,964
		2,693,759	2,590,194
Current assets
Stocks		528,233	433,586
Debtors	7	245,611	248,095
Cash at bank and in hand		136,527	17,765
		910,371	699,446
Creditors: Amounts falling due within one year	8	(609,771)	(590,311)
Net current assets		300,600	109,135
Total assets less current liabilities		2,994,359	2,699,329
Creditors: Amounts falling due after more than one year	8	(602,102)	(635,107)
Provisions for liabilities		(424,906)	(310,292)
Net assets		1,967,351	1,753,930
Capital and reserves
Allotted, called up and fully paid share capital		46	46
Profit and loss account		1,967,305	1,753,884
Total equity		1,967,351	1,753,930

Chalkside Farming Company Limited

(Registration number: 05676582)
Balance Sheet as at 31 January 2023 (continued)

For the financial year ending 31 January 2023 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 accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 10 October 2023 and signed on its behalf by:

.........................................

D W Coulthard

Director

.........................................

C T Coulthard

Company secretary and director

Chalkside Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Chalkside Farm
Rosley
WIGTON
Cumbria
CA7 8BZ

2	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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

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.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

Government grants

Government grants such as the basic payment scheme are included in the profit and loss account when all the necessary conditions for receipt have been met.

Other grants
Other grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets on a basis consistent with the depreciation policy.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, 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.

Chalkside Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023 (continued)

The current income 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 in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Basic payment scheme

The amount paid in connection with the purchase of the basic payment scheme entitlement was amortised over the useful economic life of that entitlement, and has now been fully amortised.

Other intangible fixed assets

Other intangible assets represent an investment in AMCo Common Consolidation which is a contractual requirement in order to benefit from the AMCo milk purchasing agreement. This investment is non refundable and is therefore being amortised over its useful life to the business. As there is no fixed period for the contract the directors have considered it appropriate to adopt an amortisation period of 5 years for the asset on a straight line basis. In addition an annual impairment review is performed.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

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	4% straight line
Plant and equipment	15% / 18% reducing balance
Motor vehicles	25% reducing balance

Land and buildings relate to tenant's improvements on land leased by the company from the directors. As the long term intention is for the farming operation to continue, it is deemed a true and fair view to depreciate the assets at 4% straight line over their useful economic life, and not the duration of the lease.

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.

Chalkside Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023 (continued)

Trade debtors

Trade debtors are amounts due from customers for the sale of goods 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.

Stocks

Trading stock is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. The cost of livestock represents the purchase cost plus any additional costs of rearing the animal. Net realisable value is based on selling price less anticipated selling costs. Crop stock is valued at fair value less any anticipated costs to sell.

Herd stock is included in the balance sheet at the original cost of the herd adjusted annually for additions to, or disposals from the herd.

Additions to the herd are included at cost except where there is a reinstatement of disposals to the herd from the prior year. In this case they are reinstated at the prior year disposal value.

Disposals to the herd are disposed of at an average cost except where there have been additions to the herd in the prior year. In this case they are disposed of on a last in first out basis.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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 where due after more than one year.

Chalkside Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023 (continued)

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.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Chalkside Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023 (continued)

Financial instruments

Classification
Equity shares and debt securities
Recognition and measurement
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.
Impairment
For instruments measured at cost less impairment the impairment is the difference between the assets' carrying amount and the best estimate the entity would receive for the asset if it were sold at the reporting date.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 5 (2022 - 5).

Chalkside Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023 (continued)

4	Intangible assets

	Basic payment scheme £	Other intangible assets £	Total £
Cost or valuation
At 1 February 2022	160,323	82,912	243,235
At 31 January 2023	160,323	82,912	243,235
Amortisation
At 1 February 2022	160,323	82,912	243,235
At 31 January 2023	160,323	82,912	243,235
Carrying amount
At 31 January 2023	-	-	-

5	Tangible assets

	Land and buildings £	Plant and equipment £	Motor vehicles £	Total £
Cost or valuation
At 1 February 2022	906,153	3,330,952	27,899	4,265,004
Additions	113,535	305,034	-	418,569
Disposals	-	(98,848)	-	(98,848)
At 31 January 2023	1,019,688	3,537,138	27,899	4,584,725
Depreciation
At 1 February 2022	203,147	1,612,909	20,718	1,836,774
Charge for the year	39,042	234,714	1,795	275,551
Eliminated on disposal	-	(46,738)	-	(46,738)
At 31 January 2023	242,189	1,800,885	22,513	2,065,587
Carrying amount
At 31 January 2023	777,499	1,736,253	5,386	2,519,138
At 31 January 2022	703,006	1,718,043	7,181	2,428,230

Chalkside Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023 (continued)

6	Other financial assets (current and non-current)

	2023 £	2022 £
Non-current financial assets
Financial assets at cost less impairment	174,621	161,964

	Financial assets at cost less impairment £	Total £
Non-current financial assets
Cost or valuation
At 1 February 2022	161,964	161,964
Additions	12,657	12,657
At 31 January 2023	174,621	174,621
Carrying amount
At 31 January 2023	174,621	174,621
At 31 January 2022	161,964	161,964

Debtors

	2023 £	2022 £
Trade debtors	137,394	63,862
Other debtors	108,217	184,233
	245,611	248,095

Chalkside Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023 (continued)

Creditors

	Note	2023 £	2022 £
Due within one year
Loans and borrowings	9	142,064	435,628
Trade creditors		333,787	122,137
Taxation and social security		152	119
Corporation tax liability		94,218	-
Other creditors		39,550	32,427
		609,771	590,311
Due after one year
Loans and borrowings	9	551,519	575,975
Other creditors		50,583	59,132
		602,102	635,107

	2023 £	2022 £
After more than five years by instalments	426,014	381,126
	426,014	381,126

9	Loans and borrowings

	2023 £	2022 £
Current loans and borrowings
Bank borrowings	28,273	71,028
Bank overdrafts	-	307,345
Finance lease liabilities	-	28,895
Other borrowings	113,791	28,360
	142,064	435,628

Chalkside Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023 (continued)

Current loans and borrowings includes the following liabilities, on which security has been given by the company:

	2023 £	2022 £
Bank borrowings	28,273	71,028
Bank overdrafts	-	307,345
Finance lease liabilities	-	28,895
	28,273	407,268

Bank borrowings are secured by fixed and floating charges over the company's assets together with charges over land owned personally by the directors.

Bank overdrafts are secured by fixed and floating charges over the company's assets together with charges over land owned personally by the directors.

Finance lease liabilities are secured on the assets to which they relate.

	2023 £	2022 £
Non-current loans and borrowings
Bank borrowings	551,519	575,975

Non-current loans and borrowings includes the following liabilities, on which security has been given by the company:

	2023 £	2022 £
Bank borrowings	551,519	575,975

Bank borrowings are secured by fixed and floating charges over the company's assets together with charges over land owned personally by the directors.

Chalkside Farming Company Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 January 2023 (continued)

10	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 £36,627 (2022 - £35,240).

11	Related party transactions

Transactions with directors

2023	At 1 February 2022 £	Advances £	Repayments £	Other payments £	Dividends credited £	Interest £	At 31 January 2023 £
D W Coulthard
Loan	-	45,298	(477)	-	(45,000)	179	-


C T Coulthard
Loan	-	45,298	(477)	-	(45,000)	179	-

2022	At 1 February 2021 £	Advances £	Repayments £	Other payments £	Dividends credited £	Interest £	At 31 January 2022 £
D W Coulthard
Loan	101,575	115,252	(172,720)	-	(45,000)	893	-


C T Coulthard
Loan	101,575	115,252	(172,720)	-	(45,000)	893	-

Directors' advances are repayable on demand.

Interest has been charged at a rate of 2% p.a on advances to directors.