Lower Hope Farms LLP - Accounts to registrar (filleted) - small 18.1

REGISTERED NUMBER: OC413499 (England and Wales)

Lower Hope Farms LLP

Unaudited Financial Statements

for the Year Ended 31 March 2018

Page

General Information

1

Chartered Accountants' Report

2

Balance Sheet

3

Notes to the Financial Statements

5

DESIGNATED MEMBERS:

WSC Richards OBE KSG DL

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 year ended 31 March 2018 which comprise the

Profit and Loss Account, Balance Sheet, Reconciliation of Members' Interests 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 and its 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 profit of Lower Hope Farms LLP. You consider that Lower Hope Farms LLP 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 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

12 July 2018

FIXED ASSETS

Tangible assets

4

8,166,138

1,198,095

Investment property

5

1,595,000

-

9,761,138

1,198,095

CURRENT ASSETS

Stocks

286,890

398,065

Debtors

6

529,678

2,290,498

Cash at bank and in hand

28,253

2,919

844,821

2,691,482

CREDITORS

Amounts falling due within one year

7

1,308,512

1,332,773

NET CURRENT (LIABILITIES)/ASSETS

(463,691

)

1,358,709

TOTAL ASSETS LESS CURRENT LIABILITIES

9,297,447

2,556,804

CREDITORS

Amounts falling due after more than one year

8

2,431,902

2,556,802

NET ASSETS ATTRIBUTABLE TO MEMBERS

6,865,545

2

LOANS AND OTHER DEBTS DUE TO MEMBERS

12

6,865,543

-

MEMBERS' OTHER INTERESTS

Capital accounts

2

2

6,865,545

2

TOTAL MEMBERS' INTERESTS

Loans and other debts due to members

12

6,865,543

-

Members' other interests

2

2

Amounts due from members

6

-

(1,793,058

)

6,865,545

(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 year ended 31 March 2018.

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 Profit and Loss Account has not been delivered.

The financial statements were approved for issue by the members of the LLP on 8 July 2018 and were signed by:

WSC Richards OBE KSG DL - 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.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Sanction 1A "Small Entities"

of 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.

Going concern

At the period end the LLP has net current liabilities. The members are aware of this and 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 and have agreed to introduce further funds if necessary. The members therefore consider

it appropriate to prepare the accounts on the going concern 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

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in

fair value is recognised in profit or loss.

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.

3.	EMPLOYEE INFORMATION

The average number of employees during the year was 10 (2017 - 9 ) .

4.	TANGIBLE FIXED ASSETS

Tractors

Freehold

Plant and

and

property

machinery

harvesters

Totals

£

£

£

£

COST

At 1 April 2017

-

1,140,148

1,087,137

2,227,285

Additions

7,060,530

84,523

44,579

7,189,632

Disposals

-

(12,764

)

(57,877

)

(70,641

)

At 31 March 2018

7,060,530

1,211,907

1,073,839

9,346,276

DEPRECIATION

At 1 April 2017

-

416,220

612,970

1,029,190

Charge for year

1,521

93,891

105,933

201,345

Eliminated on disposal

-

(10,659

)

(39,738

)

(50,397

)

At 31 March 2018

1,521

499,452

679,165

1,180,138

NET BOOK VALUE

At 31 March 2018

7,059,009

712,455

394,674

8,166,138

At 31 March 2017

-

723,928

474,167

1,198,095

There is a debenture over all of the fixed assets.

The plant and machinery and tractors and harvesters were introduced in the prior period at their net book value

on the cessation of the un-incorporated partnership, Lower Hope Farms. This year the cost of the assets has been

increased to the original cost to Lower Hope Farms and the corresponding entry has increased the depreciation

brought forward. Cost and depreciation brought forward for plant and machinery has increased by £381,795 and

for tractors and harvesters by £553,176.

Freehold property additions includes £7,028,334 of assets introduced by the members.

The net book value of tangible fixed assets includes £405,057 (2017 £450,001) in respect of assets held under

hire purchase contracts.

5.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

Additions

833,301

Revaluations

761,699

At 31 March 2018

1,595,000

NET BOOK VALUE

At 31 March 2018

1,595,000

There is a debenture over the investment property.

Investment property additions include ££781,106 of assets introduced by members.

Fair value at 31 March 2018 is represented by:

£

Valuation in 2018

761,699

Cost

833,301

1,595,000

If investment property had not been revalued it would have been included at the following historical cost:

2018

2017

£

£

Cost

833,301

-

Investment property was valued on an open market basis on 31 March 2018 by the members .

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

101,660

44,436

Prepayments and accrued income

7,115

15,026

Lower Hope Fruit Ltd current

account

219,208

216,551

Related party loan debtors

197,000

197,000

Amounts due from members

-

1,793,058

VAT

4,695

24,427

529,678

2,290,498

There is a debenture over all debtors.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts (see note 9)

1,026,947

1,034,899

Hire purchase contracts (see note 10)

92,877

98,363

Trade creditors

58,794

116,274

Social security and other taxes

9,219

10,075

Pension control

1,268

910

Accruals and deferred income

61,667

16,218

Intercompany loans

57,740

56,034

1,308,512

1,332,773

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Bank loans (see note 9)

2,285,473

2,383,732

Hire purchase contracts (see note 10)

146,429

173,070

2,431,902

2,556,802

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Bank loans

1,192,625

1,192,625

Repayable by instalments

Bank loans

662,327

705,998

9.

LOANS

The principal terms of the loans are -

Year final repayment due by

Balance

Interest rate

Type

2019

£300,000

2.45% over base

Repayment

2022

£39,631

2.5% over base

Repayment

2030

£123,775

2.8% over base

Repayment

2030

£1,015,000

2.5% over base

Interest only

2033

£198,058

3.3% over base

Repayment

2036

£177,625

2% over base

Interest only

2038

£521,451

4% over base

Repayment

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2018

2017

£

£

Net obligations repayable:

Within one year

92,877

98,363

Between one and five years

146,429

173,070

239,306

271,433

Non-cancellable operating

leases

2018

2017

£

£

Between one and five years

161,355

-

11.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Bank overdrafts

936,880

946,050

Bank loans

2,375,540

2,472,581

Hire purchase contracts

239,306

271,433

3,551,726

3,690,064

The AMC loans are secured by a first charge over land and property at Lower Hope Farm.

The bank borrowings with HSBC are secured by a second charge over land and properly at Lower Hope Farm.

Hire purchase liabilities are secured against the relevant asset.

12.

LOANS AND OTHER DEBTS DUE TO MEMBERS

Loans and other debts due to members (other than members' capital classified as debt) rank after other creditors

on winding up.

13.	RELATED PARTY DISCLOSURES

The members own land and property that is utilised by the LLP.