Lower Hope Farms LLP - Accounts to registrar (filleted) - small 17.3

REGISTERED NUMBER: OC413499 (England and Wales)

Lower Hope Farms LLP

Unaudited Financial Statements

for the Period

1 September 2016 to 31 March 2017

Page

General Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DESIGNATED MEMBERS:

WSC Richards OBE DL FCA FCMA

Mrs SA Richards

REGISTERED OFFICE:

Lower Hope

Ullingswick

Hereford

HR1 3JF

REGISTERED NUMBER:

OC413499 (England and Wales)

ACCOUNTANTS:

The Hutchinson Partnership Limited

trading as The Hutchinson Partnership

Chartered Accountants

The Bull Pen

Amberley Court

Sutton St Nicholas

Hereford

Herefordshire

HR1 3BX

The following reproduces the text of the report prepared for the members in respect of the LLP's annual

unaudited financial statements. In accordance with the Companies Act 2006, the LLP is only required to file a

Balance Sheet. Readers are cautioned that the Profit and Loss Account and certain other primary statements

and the Report of the Members are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006 as applied to LLPs by the Limited Liability

Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, we have prepared for your

approval the financial statements of Lower Hope Farms LLP for the period ended 31 March 2017 which comprise the

Income Statement, Balance Sheet, and the related notes from the LLP'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 within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance.

This report is made solely to the members of Lower Hope Farms LLP, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Lower Hope Farms LLP and state those matters that we have agreed to state to the members of Lower Hope Farms LLP, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Lower Hope Farms LLP members, as a body, for our work or for this report.

It is your duty to ensure that Lower Hope Farms LLP has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Lower Hope Farms LLP. You consider that Lower Hope Farms LLP is exempt from the statutory audit requirement for the period.

We have not been instructed to carry out an audit or a review of the financial statements of Lower Hope Farms LLP. 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 financial statements.

The Hutchinson Partnership Limited

trading as The Hutchinson Partnership

Chartered Accountants

The Bull Pen

Amberley Court

Sutton St Nicholas

Hereford

Herefordshire

HR1 3BX

8 December 2017

FIXED ASSETS

Tangible assets

5

1,198,095

CURRENT ASSETS

Stocks

398,065

Debtors

6

2,290,498

Cash at bank and in hand

2,919

2,691,482

CREDITORS

Amounts falling due within one year

7

1,332,773

NET CURRENT ASSETS

1,358,709

TOTAL ASSETS LESS CURRENT LIABILITIES

2,556,804

CREDITORS

Amounts falling due after more than one year

8

2,556,802

NET ASSETS ATTRIBUTABLE TO MEMBERS

2

LOANS AND OTHER DEBTS DUE TO MEMBERS

-

MEMBERS' OTHER INTERESTS

Capital accounts

2

2

TOTAL MEMBERS' INTERESTS

Members' other interests

2

Amounts due from members

6

(1,793,058

)

(1,793,056

)

The LLP is entitled to exemption from audit under Section 477 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 for the period ended 31 March 2017.

The members acknowledge their responsibilities for:

(a)	ensuring that the LLP keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the LLP as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 relating to financial statements, so far as applicable to the LLP.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 relating to small LLPs.

In accordance with Section 444 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, the Income Statement has not been delivered.

The financial statements were approved for issue by the members of the LLP on 8 December 2017 and were signed by:

WSC Richards OBE DL FCA FCMA - Designated member

1.	STATUTORY INFORMATION

Lower Hope Farms LLP is registered in England and Wales. The LLP's registered number and registered office

address can be found on the General Information page.

2.	STATEMENT OF COMPLIANCE

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 requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Going concern

At the period end the LLP has negative members' interests. This has arisen following the transfer of the trade

from Lower Hope Farms partnership on 1 October 2016. All partnership assets and liabilities have been

transferred with the exception of investments and land and property. This will take place in the next financial

year which will restore the balance sheet to a positive members' interest position. The land and buildings are

owned by the members and are still in use by the LLP. They are also used as security against the LLP's

borrowings. Based on this the members believe that it is appropriate to prepare the financial statements on the

going concern

The members have considered the financial requirements of the LLP and consider that it will be able to

operate within its agreed finance facilities for the next 12 months. The members therefore consider it appropriate

to prepare the accounts on the going concern basis.basis.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

33% on cost, 20% on cost, 14% on cost and 4% on cost

Tractors and harvesters

-

33% on cost, 25% on cost and 14% on cost

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.

The LLP has the following biological assets which are valued as disclosed :-

Livestock - valued at their estimated cost with reference to current market values

Crops in store - valued at their current market value

Growing crop - valued at the cost of inputs and cultivations up to the period end

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.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The LLP operates a defined contribution pension scheme. Contributions payable to the LLP's pension scheme

are charged to profit or loss in the period to which they relate.

4.	EMPLOYEE INFORMATION

The average number of employees during the period was 9 .

5.	TANGIBLE FIXED ASSETS

Tractors

Plant and

and

machinery

harvesters

Totals

£

£

£

COST

Additions

758,353

533,961

1,292,314

At 31 March 2017

758,353

533,961

1,292,314

DEPRECIATION

Charge for period

34,425

59,794

94,219

At 31 March 2017

34,425

59,794

94,219

NET BOOK VALUE

At 31 March 2017

723,928

474,167

1,198,095

There is a debenture over all of the fixed assets.

The net book value of tangible fixed assets includes £450,001 in respect of assets held under hire purchase

contracts.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Trade debtors

44,436

Prepayments and accrued income

15,026

Lower Hope Fruit Ltd current

account

216,551

Related party loan debtors

197,000

Amounts due from members

1,793,058

VAT

24,427

2,290,498

There is a debenture over all debtors.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Bank loans and overdrafts (see note 9)

1,034,899

Hire purchase contracts

98,363

Trade creditors

116,274

Social security and other taxes

10,075

Pension control

910

Accruals and deferred income

16,218

Intercompany loans

56,034

1,332,773

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

£

Bank loans (see note 9)

2,383,732

Hire purchase contracts

173,070

2,556,802

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Bank loans

1,192,625

Repayable by instalments

Bank loans

705,998

9.

LOANS

An analysis of the maturity of loans is given below:

£

Amounts falling due within one year or on demand:

Bank overdrafts

946,050

Bank loans

88,849

1,034,899

Amounts falling due between one and two years:

Bank loans

41,821

Amounts falling due between two and five years:

Bank loans

443,288

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Bank loans

1,192,625

Repayable by instalments

Bank loans

705,998

The principal terms of the loans are -

Year repayment due

Balance

Interest rate

Type

2019

£350,000

2.45% over base

Repayment

2022

£51,103

2.5% over base

Repayment

2030

£132,513

2.8% over base

Repayment

2030

£1,015,000

2.5% over base

Interest only

2033

£208,380

3.3% over base

Repayment

2036

£177,625

2% over base

Interest only

2038

£537,960

4% over base

Repayment

10.	SECURED DEBTS

The following secured debts are included within creditors:

£

Bank overdraft

946,050

Bank loans

2,472,581

Hire purchase contracts

271,433

3,690,064

The bank borrowings with HSBC are secured by a fixed and floating charge over all asset of the LLP.

Hire purchase liabilities are secured against the relevant asset.

11.	RELATED PARTY DISCLOSURES

The members own land and property that is utilised by the LLP. This land and property is also used as security

against the LLP's bank loans.