Smith Farms (Clacton) Limited - Limited company accounts 18.1.1

REGISTERED NUMBER: 00439189 (England and Wales)

Report of the Directors and

Financial Statements

for the Year Ended 31 January 2018

for

Smith Farms (Clacton) Limited

Page

Company Information

1

Report of the Directors

2

Income Statement

3

Balance Sheet

4

Notes to the Financial Statements

6

DIRECTORS:

J M Smith

G H Smith

P D Smith

P J Smith

E M Smith

C J Parker

SECRETARY:

G H Smith

REGISTERED OFFICE:

Wigboro Wick Lane

St. Osyth

Clacton-On-Sea

Essex

CO16 8ER

REGISTERED NUMBER:

00439189 (England and Wales)

ACCOUNTANTS:

Strutt & Parker

Coval Hall

Rainsford Road

Chelmsford

Essex

CM1 2QF

BANKERS:

Barclays Bank Plc

44 Station Road

Clacton on Sea

Essex

CO15 1SY

The directors present their report with the financial statements of the company for the year ended 31 January 2018.

PRINCIPAL ACTIVITY

The company is principally engaged in farming and operating a nine hole golf course with a driving range.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 February 2017 to the date

of this report.

J M Smith

G H Smith

P D Smith

P J Smith

E M Smith

C J Parker

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006

relating to small companies.

BY ORDER OF THE BOARD:

G H Smith - Director

19 October 2018

TURNOVER

1,442,315

1,120,315

Cost of sales

(1,468,002

)

(1,108,584

)

GROSS (LOSS)/PROFIT

(25,687

)

11,731

Direct costs

(91,877

)

(79,539

)

Administrative expenses

(345,037

)

(369,302

)

(462,601

)

(437,110

)

Other operating income

495,584

1,231,435

OPERATING PROFIT

4

32,983

794,325

Income from fixed asset investments

242

910

Interest receivable and similar income

239

458

33,464

795,693

Interest payable and similar expenses

(32,812

)

(26,903

)

PROFIT BEFORE TAXATION

652

768,790

Tax on profit

23,519

(87,642

)

PROFIT FOR THE FINANCIAL YEAR

24,171

681,148

FIXED ASSETS

Tangible assets

6

3,739,271

3,683,011

Investment property

7

5,973,625

5,973,625

9,712,896

9,656,636

CURRENT ASSETS

Stocks

8

567,897

479,714

Debtors

9

138,442

111,406

Cash at bank and in hand

903,725

1,185,567

1,610,064

1,776,687

CREDITORS

Amounts falling due within one year

10

244,520

387,585

NET CURRENT ASSETS

1,365,544

1,389,102

TOTAL ASSETS LESS CURRENT LIABILITIES

11,078,440

11,045,738

CREDITORS

Amounts falling due after more than one year

11

(824,762

)

(792,712

)

DEFERRED TAX PROVISION

(871,736

)

(895,255

)

NET ASSETS

9,381,942

9,357,771

CAPITAL AND RESERVES

Called up share capital

5,000

5,000

Share premium

35,000

35,000

Capital redemption reserve

141,202

141,202

Fair value reserve

13

3,581,020

3,581,020

Retained earnings

5,619,720

5,595,549

SHAREHOLDERS' FUNDS

9,381,942

9,357,771

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company 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 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

Approved by the Board and authorised for issue by the Board of Directors on 19 October 2018 and were signed on its behalf by:

J M Smith - Director

G H Smith - Director

1.	STATUTORY INFORMATION

Smith Farms (Clacton) 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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 Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover is the total amount received by the company in the ordinary course of business with outside

customers for goods and sevices provided, excluding VAT and trade discounts.

Tangible fixed assets and depreciation

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

Improvements to property

-

2% on reducing balance

Plant and machinery

-

20% on reducing balance and 15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

20% on reducing balance

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

Consumable stores of seeds, fertiliser, chemicals, fuel and sundry stores are valued at invoice price or

market value if lower.

Livestock have been valued on a "deemed" cost basis, which has been calculated at 60% of market

value.

Crops in store have been valued on a "deemed" cost basis, which has been calculated at 75% of

market value.

Under the heading of Tillages and Growing Crops, the cultivations have been valued on a cost basis

using the CAAV 2016 Guide to Costings and supporting working papers and invoices. Purchased

seeds, fertiliser and chemicals have been valued at actual cost.

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 that have been

enacted or substantively enacted by the balance sheet date.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets

and depreciated over the shorter of the lease term and their useful lives. Obligations under such

agreements are included in creditors net of the finance charge allocated to future periods. The finance

element of the rental payment is charged to the profit and loss account so as to produce a constant

periodic rate of charge on the net obligation outstanding in each period.

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.

Government grants

Grants are credited to deferred revenue. Grants towards capital expenditure are released to the profit

and loss account over the expected useful life of the assets. Grants towards revenue expenditure are

released to the profit and loss account as the related expenditure incurred.

Milking parlour

The asset was brought into use in May 2015 and being depreciated at 2% diminishing value.

FFIS grant £18,495 was received on 22 January 2015 relating to the milking parlour. It will be released

to the profit and loss account over the expected useful life of the asset (50 years) starting from 2016.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 23 (2017 - 29 ) .

4.	OPERATING PROFIT

The operating profit is stated after charging:

2018

2017

£

£

Depreciation - owned assets

80,711

86,459

5.	EXCEPTIONAL ITEMS

2018

2017

£

£

Overage re sale of development

land

-

801,442

6.	TANGIBLE FIXED ASSETS

Improvements

Freehold

Milking

to

Plant and

property

parlour

property

machinery

£

£

£

£

COST

At 1 February 2017

1,603,342

748,721

1,139,320

1,266,547

Additions

30,874

-

90,138

200,676

Disposals

(67,495

)

-

(27,297

)

(272,886

)

At 31 January 2018

1,566,721

748,721

1,202,161

1,194,337

DEPRECIATION

At 1 February 2017

-

25,562

142,433

918,351

Charge for year

-

14,463

20,088

83,110

Eliminated on disposal

-

-

(7,607

)

(216,100

)

At 31 January 2018

-

40,025

154,914

785,361

NET BOOK VALUE

At 31 January 2018

1,566,721

708,696

1,047,247

408,976

At 31 January 2017

1,603,342

723,159

996,887

348,196

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST

At 1 February 2017

27,978

17,500

3,642

4,807,050

Additions

-

-

-

321,688

Disposals

-

(7,500

)

(501

)

(375,679

)

At 31 January 2018

27,978

10,000

3,141

4,753,059

DEPRECIATION

At 1 February 2017

23,033

11,149

3,511

1,124,039

Charge for year

742

1,588

26

120,017

Eliminated on disposal

-

(6,165

)

(396

)

(230,268

)

At 31 January 2018

23,775

6,572

3,141

1,013,788

NET BOOK VALUE

At 31 January 2018

4,203

3,428

-

3,739,271

At 31 January 2017

4,945

6,351

131

3,683,011

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

£

COST

At 1 February 2017

135,633

Additions

190,850

At 31 January 2018

326,483

DEPRECIATION

At 1 February 2017

36,137

Charge for year

39,306

At 31 January 2018

75,443

NET BOOK VALUE

At 31 January 2018

251,040

At 31 January 2017

99,496

7.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 February 2017

and 31 January 2018

5,973,625

NET BOOK VALUE

At 31 January 2018

5,973,625

At 31 January 2017

5,973,625

Fair value at 31 January 2018 is represented by:

£

Valuation in 2016

4,476,275

Cost

1,497,350

5,973,625

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

cost:

2018

2017

£

£

Cost

1,497,350

-

Investment property was valued on an open market basis on 28 September 2017 by the Directors .

8.

STOCKS

2018

2017

£

£

Valuation

330,960

299,910

Stocks

137,739

110,184

Cultivations

99,198

69,620

567,897

479,714

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

87,192

73,244

VAT

22,584

21,701

Prepayments and accrued income

28,666

16,461

138,442

111,406

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Hire purchase contracts

56,019

28,550

Trade creditors

95,749

122,333

Tax

-

115,659

Social security and other taxes

15,192

11,363

Tenant deposits

750

750

Directors' current accounts

56,920

90,988

Accruals and deferred income

19,890

17,942

244,520

387,585

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

AMC loan

720,742

744,475

Hire purchase contracts

78,870

22,450

Deferred government grants

25,150

25,787

824,762

792,712

Amounts falling due in more than five years:

Repayable otherwise than by instalments

AMC loan

720,742

744,475

Two AMC loans were incepted 29.09.14. The loans were taken for a period of 22 years.

Loan 1 - £250,000 interest only for 2 years payable in monthly instalments, then annuity. Margin of

1.80% over money market price. This is equivalent to a fixed rate interest of 4.14% for the first 10

years.

Loan 2 - £257,500 interest only for 2 years payable in monthly installments, then annuity. Margin of

1.80% over AMC's base rate for the first 10 years.This is equivalent to a variable rate of interest of

2.3%. Thereafter at a margin of 2.60% over AMC's base rate.

Additional loan £60,900 was taken on 24.03.15. The loan term is 21 years 5 months. This is an interest

only loan. Margin 3.50% over AMC's base rate.

Additional loan £192,250 was incepted 26.01.16 for the period of 10 years. It is a fixed rate loan at

4.19%.

12.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

AMC loan

594,565

568,400

AMC loan

126,177

176,075

720,742

744,475

1. Secured charge is held over the freehold property known as Land on the west side of Wigboro Lane,

St Osyth, Clacton-on-Sea. The charge was registered on 15 October 2014.

2. Security charge is held over the freehold property being approximately 47.96 acres of land at Alton

Park West Road, Clacton-on-Sea. The charge was registered 26 January 2016.

13.

RESERVES

Fair

value

reserve

£

At 1 February 2017

and 31 January 2018

3,581,020