GLW Feeds Limited - Limited company accounts 17.3

REGISTERED NUMBER: 00506275 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2017

for

GLW Feeds Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

5

Other Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Cash Flow Statement

9

Notes to the Cash Flow Statement

10

Notes to the Financial Statements

11

DIRECTORS:

Miss S M White

G L White

K M Kinsey

G L White

SECRETARY:

Miss S M White

REGISTERED OFFICE:

Lindum Mill

Shepshed

Loughborough

Leicestershire

LE12 9BS

REGISTERED NUMBER:

00506275 (England and Wales)

SENIOR STATUTORY AUDITOR:

John Joseph Delaney

AUDITORS:

Bourne & Co.

Statutory Auditors

3 Charnwood Street

Derby

Derbyshire

DE1 2GY

The directors present their strategic report for the year ended 31 March 2017.

REVIEW OF BUSINESS

The Directors are extremely satisfied with the performance of the company for the year ended 31st March 2017. The

company's sales volumes exceeded budgets and previous year's sales volumes, leading to a rise in turnover. The

company continues to acquire new sales contracts and is heavily investing in its production facilities. For the 11th

consecutive year, the company achieved a profit before taxation and the Directors consider this to be a tremendous

achievement and a credit to our staff.

Major investment in plant and machinery continues in order to ensure that the company moves forward confidently,

albeit in unpredictable market conditions. The Directors are confident that sales volumes will continue to increase in the

current year.

PRINCIPAL RISKS AND UNCERTAINTIES

Raw material prices continue to be volatile. The company continues to focus on maintaining its ability to react swiftly to

market changes which the Directors believe gives the company a significant edge on its competition.

The company is affected by the foreign exchange markets and the continual change in the oil and commodity markets

which in turn are affected by the worldwide economy.

The company attempts to manage these fluctuations by a conservative hedging policy involving forward buying and

selling contracts and constantly monitoring the commodity markets

ON BEHALF OF THE BOARD:

Miss S M White - Secretary

18 December 2017

The directors present their report with the financial statements of the company for the year ended 31 March 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of agricultural merchants and consultants, and

general hauliers.

DIVIDENDS

A dividend of 37.975 pence per share was paid on 1 December 2016.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2016 to the date of this report.

Miss S M White

G L White

K M Kinsey

G L White

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements

in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors

have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not

approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

company and of the profit or loss of the company for that period. In preparing these financial statements, the directors

are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

company's transactions and disclose with reasonable accuracy at any time the financial position of the company and

enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for

safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to

have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that

the company's auditors are aware of that information.

AUDITORS

The auditors, Bourne & Co., will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Miss S M White - Secretary

18 December 2017

We have audited the financial statements of GLW Feeds Limited for the year ended 31 March 2017 on pages five to

eighteen. The financial reporting framework that has been applied in their preparation is applicable law and United

Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial

Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those

matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent

permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's

members as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or

error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances

and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates

made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and

non-financial information in the Strategic Report and the Report of the Directors to identify material inconsistencies with

the audited financial statements and to identify any information that is apparently materially incorrect based on, or

materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of

any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2017 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit, the information given in the Strategic Report

and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with

the financial statements, and has been prepared in accordance with applicable legal requirements. In the light of the

knowledge and understanding of the company and its environment, we have not identified any material misstatements in

the Strategic Report or the Report of the Directors.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you

if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

John Joseph Delaney (Senior Statutory Auditor)

for and on behalf of Bourne & Co.

Statutory Auditors

3 Charnwood Street

Derby

Derbyshire

DE1 2GY

18 December 2017

TURNOVER

71,316,443

68,156,043

Cost of sales

64,856,217

62,077,102

GROSS PROFIT

6,460,226

6,078,941

Administrative expenses

5,880,850

5,315,491

579,376

763,450

Other operating income

1,539

8,853

OPERATING PROFIT

4

580,915

772,303

Income from shares in group undertakings

-

20,394

Interest receivable and similar income

38,847

36,246

38,847

56,640

619,762

828,943

Interest payable and similar expenses

5

60,559

110,906

PROFIT BEFORE TAXATION

559,203

718,037

Tax on profit

6

88,547

85,393

PROFIT FOR THE FINANCIAL YEAR

470,656

632,644

PROFIT FOR THE YEAR

470,656

632,644

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

470,656

632,644

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

4,398,148

4,484,850

Investments

10

-

200

4,398,148

4,485,050

CURRENT ASSETS

Stocks

11

1,078,946

1,211,225

Debtors

12

12,042,822

10,710,015

Cash in hand

1,782

1,607

13,123,550

11,922,847

CREDITORS

Amounts falling due within one year

13

8,036,953

6,939,430

NET CURRENT ASSETS

5,086,597

4,983,417

TOTAL ASSETS LESS CURRENT LIABILITIES

9,484,745

9,468,467

CREDITORS

Amounts falling due after more than one year

14

(692,322

)

(929,403

)

PROVISIONS FOR LIABILITIES

17

(1,076,033

)

(1,262,951

)

NET ASSETS

7,716,390

7,276,113

CAPITAL AND RESERVES

Called up share capital

18

80,000

80,000

Retained earnings

19

7,636,390

7,196,113

SHAREHOLDERS' FUNDS

7,716,390

7,276,113

The financial statements were approved by the Board of Directors on 18 December 2017 and were signed on its behalf by:

G L White - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2015

80,000

6,593,849

6,673,849

Changes in equity

Dividends

-

(30,380

)

(30,380

)

Total comprehensive income

-

632,644

632,644

Balance at 31 March 2016

80,000

7,196,113

7,276,113

Changes in equity

Dividends

-

(30,379

)

(30,379

)

Total comprehensive income

-

470,656

470,656

Balance at 31 March 2017

80,000

7,636,390

7,716,390

Cash flows from operating activities

Cash generated from operations

1

1,268,873

1,716,211

Interest paid

(33,753

)

(77,494

)

Interest element of hire purchase payments paid

(26,806

)

(33,412

)

Tax paid

(76,989

)

(59,549

)

Net cash from operating activities

1,131,325

1,545,756

Cash flows from investing activities

Purchase of intangible fixed assets

-

(99,703

)

Purchase of tangible fixed assets

(153,715

)

(167,333

)

Sale of tangible fixed assets

137,900

75,351

Sale of fixed asset investments

200

-

Interest received

38,847

36,246

Dividends received

-

20,394

Net cash from investing activities

23,232

(135,045

)

Cash flows from financing activities

Loan repayments in year

(149,954

)

(130,059

)

Capital repayments in year

(574,690

)

(608,328

)

Amount introduced by directors

11,887

-

Amount withdrawn by directors

-

(7,992

)

Equity dividends paid

(30,379

)

(30,380

)

Net cash from financing activities

(743,136

)

(776,759

)

Increase in cash and cash equivalents

411,421

633,952

Cash and cash equivalents at beginning of year

2

(1,367,273

)

(2,001,225

)

Cash and cash equivalents at end of year

2

(955,852

)

(1,367,273

)

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2017

2016

£

£

Profit before taxation

559,203

718,037

Depreciation charges

594,086

574,075

Profit on disposal of fixed assets

(16,769

)

(21,168

)

Movement in provison of onerous contract

(146,165

)

508,182

Finance costs

60,559

110,906

Finance income

(38,847

)

(56,640

)

1,012,067

1,833,392

Decrease in stocks

132,279

10,610

(Increase)/decrease in trade and other debtors

(1,334,685

)

1,668,258

Increase/(decrease) in trade and other creditors

1,459,212

(1,796,049

)

Cash generated from operations

1,268,873

1,716,211

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of

these Balance Sheet amounts:

Year ended 31 March 2017

31.3.17

1.4.16

£

£

Cash and cash equivalents

1,782

1,607

Bank overdrafts

(957,634

)

(1,368,880

)

(955,852

)

(1,367,273

)

Year ended 31 March 2016

31.3.16

1.4.15

£

£

Cash and cash equivalents

1,607

3,895

Bank overdrafts

(1,368,880

)

(2,005,120

)

(1,367,273

)

(2,001,225

)

1.	STATUTORY INFORMATION

GLW Feeds Limited is a private company, limited by shares , registered in England and Wales. The company's

registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover represents net invoiced sales of goods and services excluding value added tax.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2003, is being amortised evenly over its estimated useful life of four years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

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.

Freehold property

-

2% on cost

Plant and machinery

-

25% on reducing balance and at variable rates on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

20% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost less any provision for impairment.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

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.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and

rewards of ownership of the leased asset to the company. All other leases are classified as operating leases.

Assets held under finance leases are recognised initially at the fair value of the leased asset (or if lower the

present value of minimum lease payments) at the inception of the lease. The corresponding liability to the lessor

is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned

between finance charges and reduction of the lease obligation using the effective interst method so a to achieve

a constant rate of interest on the remaining balance of the liability. Finance charges are deducted in measuring

profit or loss. Assets held under finance leases are included in tangible fixed assets and depreciated and

assessed for impairment losses in the same way as owned assets.

Rentals paid under operating leases are charged to profit and loss on a straight line basis over the lease term

unless the rental payments are structured to increase in lone with expected general inflation, in which case the

company recognises annual rent expense equal to amounts owed to the lessor.

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.

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

3.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

3,622,406

3,279,147

Social security costs

369,975

337,372

Other pension costs

143,252

141,393

4,135,633

3,757,912

The average monthly number of employees during the year was as follows:

2017

2016

Production and delivery

86

76

Administration

29

29

Sales and marketing

11

11

126

116

2017

2016

£

£

Directors' remuneration

189,196

181,422

Directors' pension contributions to money purchase schemes

10,367

11,273

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

4

4

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2017

2016

£

£

Hire of plant and machinery

23,452

33,813

Depreciation - owned assets

351,650

310,785

Depreciation - assets on hire purchase contracts

242,436

276,087

Profit on disposal of fixed assets

(16,769

)

(21,168

)

Goodwill amortisation

-

(12,797

)

Audit fees

22,250

21,500

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2017

2016

£

£

Bank interest

33,753

77,494

Hire purchase

26,806

33,412

60,559

110,906

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2017

2016

£

£

Current tax:

UK corporation tax

129,300

91,100

Under/(over)provided

-

(45,383

)

Total current tax

129,300

45,717

Deferred tax

(40,753

)

39,676

Tax on profit

88,547

85,393

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is

explained below:

2017

2016

£

£

Profit before tax

559,203

718,037

Profit multiplied by the standard rate of corporation tax in the UK of 20% (2016 - 20%)

111,841

143,607

Effects of:

Expenses not deductible for tax purposes

4,552

(13,183

)

Income not taxable for tax purposes

-

(4,078

)

Capital allowances in excess of depreciation

-

(35,246

)

Depreciation in excess of capital allowances

12,907

-

Adjustments to tax charge in respect of previous periods

-

(45,383

)

Deferred Taxation

(40,753

)

39,676

Total tax charge

88,547

85,393

7.

DIVIDENDS

2017

2016

£

£

Ordinary shares of £1 each

Interim dividend on £1 Ordinary Shares

30,379

30,380