HOB Farms Limited - Limited company accounts 18.1.1

REGISTERED NUMBER: 08330209 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2018

FOR

HOB FARMS LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Profit and loss account

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

P E Osborne

D B Byrd

S J Houghton

REGISTERED OFFICE:

Ascot Road

Pershore

Worcestershire

WR10 2JJ

REGISTERED NUMBER:

08330209 (England and Wales)

AUDITORS:

Kingscott Dix (Cheltenham) Limited

Statutory Auditor

Chartered Accountants

Malvern View Business Park

Stella Way

Bishops Cleeve

Cheltenham

Gloucestershire

GL52 7DQ

The directors present their strategic report of the company and the group for the year ended 31 January 2018.

REVIEW OF BUSINESS

The directors are pleased to report a successful year.

The group achieved a pre-tax profit of £587,140 compared with £470,719 in the previous year. At 31 January 2018

shareholders funds were £715,127 compared with £489,067 last year.

PRINCIPAL RISKS AND UNCERTAINTIES

Principal risks and uncertainties facing the group include the general difficult trading conditions the economy presents,

and uncertainty as to exchange rate variations which affects the acquisition price of some of the group's purchases.

KEY PERFORMANCE INDICATORS

Key performance indicators that are focused on by management include Turnover, Direct costs, and Overheads. Each of

these are reviewed regularly by management against the budget and prior periods. The directors are pleased with the

performance of the group during the year with regard the indicators above.

ON BEHALF OF THE BOARD:

P E Osborne - Director

30 October 2018

The directors present their report with the financial statements of the company and the group for the year ended

31 January 2018.

The company acquired Ferryfast Produce Limited on 12 May 2015. Consequently the comparative results are for the 8.5

month period ended 31 January 2016.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the marketing and distribution of fruit and

vegetables.

DIVIDENDS

Interim dividends per share were paid as follows:

15874

- 1 February 2017

23000

- 1 March 2017

23000

- 1 April 2017

23001

- 1 May 2017

23000

- 1 June 2017

23001

- 1 July 2017

23000

- 1 August 2017

23001

- 1 September 2017

23000

- 1 October 2017

23001

- 1 November 2017

23000

- 1 December 2017

23001

- 1 January 2018

268879

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 January 2018 will be £ 268,879 .

FUTURE DEVELOPMENTS

The directors are pleased to announce that the trading results for the current year continue to reflect strong profitability,

and the group is actively seeking new customers to ensure this continues to be the case.

DIRECTORS

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

report.

P E Osborne

D B Byrd

S J Houghton

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the

company and the group 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 the group 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 group'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

group's auditors are aware of that information.

AUDITORS

The auditors, Kingscott Dix (Cheltenham) Limited, will be proposed for re-appointment at the forthcoming Annual

General Meeting.

ON BEHALF OF THE BOARD:

P E Osborne - Director

30 October 2018

Opinion

We have audited the financial statements of HOB Farms Limited (the 'parent company') and its subsidiaries (the 'group')

for the year ended 31 January 2018 which comprise the Consolidated Profit and loss account, Consolidated Other

Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in

Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated

Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The

financial reporting framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the

UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

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.

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 January 2018 and of the group's 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the group in accordance with the ethical requirements

that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have

fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we

have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group

Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the

Auditors thereon.

Our opinion on the financial statements does not cover the other information and we do not express any form of

assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing

so, consider whether the other information is materially inconsistent with the financial statements or our knowledge

obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we

conclude that there is a material misstatement of this other information, we are required to report that fact. We have

nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group 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

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in

the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the

Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible

for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such

internal control as the directors determine necessary to enable the preparation of financial statements that are free from

material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's

ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going

concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease

operations, or have no realistic alternative but to do so.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs

(UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are

considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Gwyneth Milner (Senior Statutory Auditor)

for and on behalf of Kingscott Dix (Cheltenham) Limited

Statutory Auditor

Chartered Accountants

Malvern View Business Park

Stella Way

Bishops Cleeve

Cheltenham

Gloucestershire

GL52 7DQ

30 October 2018

TURNOVER

3

24,184,811

23,240,350

Cost of sales

(19,888,256

)

(19,165,902

)

GROSS PROFIT

4,296,555

4,074,448

Administrative expenses

(3,630,383

)

(3,519,324

)

666,172

555,124

Other operating income

21,280

19,295

OPERATING PROFIT

5

687,452

574,419

Interest payable and similar expenses

6

(100,312

)

(103,700

)

PROFIT BEFORE TAXATION

587,140

470,719

Tax on profit

7

(92,201

)

(22,801

)

PROFIT FOR THE FINANCIAL YEAR

494,939

447,918

Profit attributable to:

Owners of the parent

494,939

447,918

PROFIT FOR THE YEAR

494,939

447,918

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

494,939

447,918

Total comprehensive income attributable to:

Owners of the parent

494,939

447,918

FIXED ASSETS

Intangible assets

10

315,677

359,219

Tangible assets

11

1,723,204

1,594,333

Investments

12

-

-

2,038,881

1,953,552

CURRENT ASSETS

Stocks

13

172,621

174,086

Debtors

14

3,015,655

2,863,000

Cash at bank and in hand

642,889

401,201

3,831,165

3,438,287

CREDITORS

Amounts falling due within one year

15

(3,698,493

)

(3,392,846

)

NET CURRENT ASSETS

132,672

45,441

TOTAL ASSETS LESS CURRENT LIABILITIES

2,171,553

1,998,993

CREDITORS

Amounts falling due after more than one year

16

(1,370,987

)

(1,413,481

)

PROVISIONS FOR LIABILITIES

20

(85,439

)

(96,445

)

NET ASSETS

715,127

489,067

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

715,027

488,967

SHAREHOLDERS' FUNDS

715,127

489,067

The financial statements were approved by the Board of Directors on 30 October 2018 and were signed on its behalf by:

P E Osborne - Director

D B Byrd - Director

S J Houghton - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

1,611,500

1,611,500

1,611,500

1,611,500

CURRENT ASSETS

Cash at bank and in hand

25,947

67,599

CREDITORS

Amounts falling due within one year

15

(289,035

)

(260,976

)

NET CURRENT LIABILITIES

(263,088

)

(193,377

)

TOTAL ASSETS LESS CURRENT LIABILITIES

1,348,412

1,418,123

CREDITORS

Amounts falling due after more than one year

16

(1,151,989

)

(1,311,178

)

NET ASSETS

196,423

106,945

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

196,323

106,845

SHAREHOLDERS' FUNDS

196,423

106,945

Company's profit for the financial year

358,357

285,750

The financial statements were approved by the Board of Directors on 30 October 2018 and were signed on its behalf by:

P E Osborne - Director

D B Byrd - Director

S J Houghton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2016

100

231,531

231,631

Changes in equity

Dividends

-

(190,482

)

(190,482

)

Total comprehensive income

-

447,918

447,918

Balance at 31 January 2017

100

488,967

489,067

Changes in equity

Dividends

-

(268,879

)

(268,879

)

Total comprehensive income

-

494,939

494,939

Balance at 31 January 2018

100

715,027

715,127

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 February 2016

100

11,577

11,677

Changes in equity

Dividends

-

(190,482

)

(190,482

)

Total comprehensive income

-

285,750

285,750

Balance at 31 January 2017

100

106,845

106,945

Changes in equity

Dividends

-

(268,879

)

(268,879

)

Total comprehensive income

-

358,357

358,357

Balance at 31 January 2018

100

196,323

196,423

Cash flows from operating activities

Cash generated from operations

1

1,396,699

1,243,894

Interest paid

(93,362

)

(100,811

)

Interest element of hire purchase payments paid

(6,950

)

(2,889

)

Tax paid

6,377

(57,701

)

Net cash from operating activities

1,302,764

1,082,493

Cash flows from investing activities

Purchase of tangible fixed assets

(266,460

)

(400,590

)

Sale of tangible fixed assets

80,999

46,200

Net cash from investing activities

(185,461

)

(354,390

)

Cash flows from financing activities

Loan repayments in year

(151,800

)

(155,998

)

HP capital repayments in year

(196,665

)

(35,086

)

Equity dividends paid

(268,879

)

(190,482

)

Net cash from financing activities

(617,344

)

(381,566

)

Increase in cash and cash equivalents

499,959

346,537

Cash and cash equivalents at beginning of year

2

142,930

(203,607

)

Cash and cash equivalents at end of year

2

642,889

142,930

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

2018

2017

£

£

Profit before taxation

587,140

470,719

Depreciation charges

515,423

396,678

Loss on disposal of fixed assets

8,824

22,596

Finance costs

100,312

103,700

1,211,699

993,693

Decrease/(increase) in stocks

1,465

(1,049

)

Increase in trade and other debtors

(152,655

)

(317,484

)

Increase in trade and other creditors

336,190

568,734

Cash generated from operations

1,396,699

1,243,894

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 January 2018

31.1.18

1.2.17

£

£

Cash and cash equivalents

642,889

401,201

Bank overdrafts

-

(258,271

)

642,889

142,930

Year ended 31 January 2017

31.1.17

1.2.16

£

£

Cash and cash equivalents

401,201

219,145

Bank overdrafts

(258,271

)

(422,752

)

142,930

(203,607

)

1.	STATUTORY INFORMATION

HOB Farms 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 General 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.

Significant judgements and estimates

The directors are of the opinion that there are no significant judgements or estimations used in preparing the

financial statements.

Turnover

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

value added tax and other sales taxes.

Produce sales are recognised when orders leave the warehouse. Haulage sales are recognised when the delivery

is made.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2016, is being amortised evenly over its estimated useful life of ten 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.

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

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 Consolidated Profit and loss

account, 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.

Hire purchase and leasing commitments

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

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

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial

instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured

at their settlement value.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2018

2017

£

£

Produce wholesale

19,490,883

18,687,153

Transport and logistics

4,693,928

4,553,197

24,184,811

23,240,350

An analysis of turnover by geographical market is given below:

2018

2017

£

£

United Kingdom

24,184,811

23,240,350

24,184,811

23,240,350

4.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

3,841,375

3,672,939

Social security costs

341,316

302,745

Other pension costs

7,446

27,410

4,190,137

4,003,094