Company registration number 00431776 (England and Wales)
G H DEAN & CO. LIMITED
ALSO TRADING AS BLACKBIRD FARMING
Annual Report And Financial Statements
For The Period Ended 31 December 2022
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Company Information
Directors
Mr M W S Bax
Mrs M A Davies
(Appointed 14 June 2022)
Ms A J Dean
(Appointed 14 June 2022)
Mr E G Doubleday
Mr O C Doubleday
(Appointed 14 June 2022)
Mr G L T Reutter
Secretary
Ms J A Hadlow
Company number
00431776
Registered office
Hempstead Farm
Tonge
Sittingbourne
Kent
England
ME9 9BJ
Auditor
Chavereys Audit Limited
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 30
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Strategic Report
For The Period Ended 31 December 2022
- 1 -
The directors present the strategic report for the Period ended 31 December 2022.
Principal activities
The principal activities of the company during the period were that of growing, storing and marketing of tree fruits and combinable crops along with the production and sale of lambs and the management of residential and commercial property. In addition to these revenue streams, the company continues to promote land for residential development, renewables and nature based solutions.
Business review
Top Fruit
Despite encountering record-breaking temperatures again, the majority of fruit trees flourished, resulting in increased yields for both apples and pears. All 5,660 bins of pears and 2,622 bins of apples from the 2021 harvest were successfully sold. In 2022, there were notable increases in yield, with 6,084 bins of pears and 3,726 bins of apples.
Cherries
Favourable growing conditions in 2022, including sufficient winter chill, good blossom, and optimal light levels, led to a high-quality cherry crop. The pre-graded yield of 228 tonnes marked a significant improvement over the prior year, although increased market competition resulted in an average selling price of approximately £3.45/kg.
Arable
Despite challenging summer conditions, including record-breaking temperatures and limited rainfall, grain yields exceeded expectations, totalling 9,514 tonnes. Cabbage Stem Flea Beetle adversely affected oilseed rape, averaging 3.34 tonnes per hectare, while wheat crops yielded just over 11 tonnes per hectare, well above the national average.
Sheep
A warm spring facilitated the quicker finishing of a substantial number of lambs, with most off the farm by mid-August. Despite a decrease of 8% in finished lamb numbers compared to the prior period, increased selling prices, driven by demand, resulted in a nearly 14% rise in sales value, reaching £126.60 per head.
Land
A development related option agreement came to fruition during the period, resulting in proceeds of over £7million. Promotion of land for residential use continues.
Principal risks and uncertainties
Challenges persist in the shortage of seasonal staff due to the lingering effects of Brexit, and anticipated changes in government immigration plans may not alleviate these concerns. Additionally, the need for essential imports for the fruit enterprise, such as trees and support materials, continues to pose challenges.
The Russian invasion of Ukraine has impacted energy costs and other inputs for both arable and fruit, initially benefiting arable sales price, but the subsequent increase in input costs is now adversely impacting farming margins.
The Basic Payment Scheme direct support payments are being phased out during a transition period ending in 2027, with the new Environmental Land Management (ELM) scheme yet to be defined. Farmers must focus on reducing carbon emissions, creating space for wildlife, and improving animal welfare to access government funding post-Brexit.
The impact of climate change poses challenges to the agricultural sector, including shifts in weather patterns, extreme events, and changing pest dynamics. Implementing climate-resilient farming practices, exploring drought-resistant crops, and investing in water management systems can help mitigate risks associated with climate variability. Proactively addressing climate-related challenges will contribute to the long-term viability of the farming enterprise.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Strategic Report (Continued)
For The Period Ended 31 December 2022
- 2 -
Financial key performance indicators
Management costings of every crop by enterprise are produced giving us an historic record of performance and allowing us to adjust our working practices to enhance the business’s financial performance.
Arable
Yields are compared year on year and with other local farmers. Grain marketing data reviewed on a weekly basis informs us on market conditions and proves a useful gauge as and when to make sales.
Fruit
Historic crop yield data helps to provide future crop predictions. Harvest management costings help to understand the costs of production and where savings and improvements can be made.
Sheep
The annual flock health plan helps plan the year in order that the ewes are in good condition for tupping, an age profile determines the number to be culled/breeding sheep to be purchased. The timeliness of vaccinations and fly treatments to ensure good flock health are all encompassed by the plan which in turn has helped to improve our lambing percentage year on year.
Financial risk management
Price
For fruit we have long-term relationships with suppliers and customers through our involvement with our Producer Organisation and pre-season prices based on grade out are set.
Credit
We have solid relationships with our customers and have scheduled payments in place and deal with large established companies.
Liquidity
We have a good relationship with our bank and have an overdraft facility readily available.
Cashflow
We take payments on account, we utilise our overdraft facility and monthly cash management. We work constantly in an endeavour to reduce waste and costs.
Environment and Sustainability
Recognising the increasing emphasis on 'natural capital,' the company aligns with the transition towards environmentally focused agricultural practices, aiming to protect the environment and invest in new technology.
Future Developments
Ongoing efforts to realign orchards, positive outcomes from new apple varieties, and progress in numerous land promotion opportunities remain key focus areas. The company seeks to enhance farm facilities, particularly in hostel accommodation for seasonal labour during harvest.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Strategic Report (Continued)
For The Period Ended 31 December 2022
- 3 -
Mr E G Doubleday
Director
20 December 2023
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Directors' Report
For The Period Ended 31 December 2022
- 4 -
The directors present their annual report and financial statements for the Period ended 31 December 2022.
Results and dividends
The results for the Period are set out on page 9.
Ordinary dividends were paid amounting to £512,341. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the Period and up to the date of signature of the financial statements were as follows:
Mr M W S Bax
Mrs M A Davies
(Appointed 14 June 2022)
Ms A J Dean
(Appointed 14 June 2022)
Mr E G Doubleday
Mr O C Doubleday
(Appointed 14 June 2022)
Mr G L T Reutter
Auditor
The auditor, Chavereys Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Directors' Report (Continued)
For The Period Ended 31 December 2022
- 5 -
On behalf of the board
Mr E G Doubleday
Director
20 December 2023
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Independent Auditor's Report
To The Members Of G H Dean & Co. Limited
- 6 -
Opinion
We have audited the financial statements of G H Dean & Co. Limited (the 'company') for the Period ended 31 December 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the Period 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.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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.
Opinions on other matters 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 directors' report for the financial Period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Independent Auditor's Report (Continued)
To The Members Of G H Dean & Co. Limited
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which 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 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 directors' responsibilities statement, 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 is 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 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 company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor's report 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud are detailed below:
The objectives of our audit include:
- to identify and assess the risks of material misstatement of the financial statements due to fraud or error;
- to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error;
- and to respond appropriately to those risks.
Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). This risk increased the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statement, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Independent Auditor's Report (Continued)
To The Members Of G H Dean & Co. Limited
- 8 -
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, our procedures including the following:
We obtained an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate.
We determined that the following laws and regulations were most significant: Companies Act 2006, UK Corporate Tax Laws, Health and Safety legislation and employment law.
We obtained an understanding of how the company is complying with these legal and regulatory frameworks by making inquiries to the management of the company
We corroborated our inquiries through our review of underlying records and third party evidence, as well as through our review of Board minutes.
We assess the susceptibility of the company’s financial statements to material misstatements, including how fraud might occur. Audit procedures performed by the company engagement team included:
Identifying and assessing the design-effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates;
Identifying and testing journal entries, in particular any journal entries posted as unusual amounts, with unusual account combinations, with unusual descriptions or by irregular individuals; and
Assessing the extent of compliance with the relevant laws and regulations
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 an auditor's report 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.
Iain D Morris FCA
Senior Statutory Auditor
For and on behalf of Chavereys Audit Limited
29 December 2023
Chartered Accountants
Statutory Auditor
The Goods Shed
Jubilee Way
Faversham
Kent
England
ME13 8GD
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Statement Of Comprehensive Income
For The Period Ended 31 December 2022
- 9 -
Period
Year
ended
ended
31 December
30 September
2022
2021
Notes
£
£
Turnover
3
15,948,985
5,289,926
Cost of sales
(9,179,622)
(4,401,917)
Gross profit
6,769,363
888,009
Administrative expenses
(1,947,133)
(1,740,674)
Other operating income
1,478,402
1,072,340
Operating profit
4
6,300,632
219,675
Interest receivable and similar income
7
1,268
53
Interest payable and similar expenses
8
(175,335)
(81,880)
Amounts written off investments
9
(2)
-
Fair value gains and losses on investment properties
14
701,034
2,948,591
Profit before taxation
6,827,597
3,086,439
Tax on profit
10
(2,399,891)
(556,915)
Profit for the financial Period
4,427,706
2,529,524
The profit and loss account has been prepared on the basis that all operations are continuing operations.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Balance Sheet
As At 31 December 2022
- 10 -
31 December 2022
30 September 2021
Notes
£
£
£
£
Fixed assets
Tangible assets
12
14,887,271
15,343,697
Biological assets
13
703,998
816,234
Investment property
14
23,689,200
23,236,834
Investments
15
30,610
30,613
39,311,079
39,427,378
Current assets
Stocks
18
4,191,030
3,037,085
Debtors
19
10,785,796
1,919,796
Cash at bank and in hand
5,292
493,945
14,982,118
5,450,826
Creditors: amounts falling due within one year
20
(5,030,888)
(2,054,198)
Net current assets
9,951,230
3,396,628
Total assets less current liabilities
49,262,309
42,824,006
Creditors: amounts falling due after more than one year
21
(4,362,584)
(3,109,670)
Provisions for liabilities
Deferred tax liability
24
5,128,201
3,858,177
(5,128,201)
(3,858,177)
Net assets
39,771,524
35,856,159
Capital and reserves
Called up share capital
26
42,695
42,695
Own shares
652
652
Profit and loss reserves
39,728,177
35,812,812
Total equity
39,771,524
35,856,159
The financial statements were approved by the board of directors and authorised for issue on 20 December 2023 and are signed on its behalf by:
Mr E G Doubleday
Director
Company Registration No. 00431776
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Statement Of Changes In Equity
For The Period Ended 31 December 2022
- 11 -
Share capital
Own shares
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2020
42,695
652
33,484,505
33,527,852
Year ended 30 September 2021:
Profit and total comprehensive income for the year
-
-
2,529,524
2,529,524
Dividends
11
-
-
(201,217)
(201,217)
Balance at 30 September 2021
42,695
652
35,812,812
35,856,159
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
-
4,427,706
4,427,706
Dividends
11
-
-
(512,341)
(512,341)
Balance at 31 December 2022
42,695
652
39,728,177
39,771,524
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Statement Of Cash Flows
For The Period Ended 31 December 2022
- 12 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
29
(880,112)
15,367
Interest paid
(175,335)
(81,880)
Income taxes (paid)/refunded
(58,954)
68,339
Net cash (outflow)/inflow from operating activities
(1,114,401)
1,826
Investing activities
Purchase of tangible fixed assets
(420,244)
(266,060)
Proceeds from disposal of tangible fixed assets
159,825
115,270
Purchase of biological assets
(70,210)
(128,898)
Proceeds from disposal of biological assets
81,821
Proceeds from disposal of investment property
272,000
Proceeds from disposal of subsidiaries
1
Interest received
131
18
Dividends received
1,137
35
Net cash generated from/(used in) investing activities
24,461
(279,635)
Financing activities
Repayment of bank loans
445,376
(52,867)
Payment of finance leases obligations
9,618
(74,667)
Dividends paid
(512,341)
(201,217)
Net cash used in financing activities
(57,347)
(328,751)
Net decrease in cash and cash equivalents
(1,147,287)
(606,560)
Cash and cash equivalents at beginning of Period
493,945
1,100,505
Cash and cash equivalents at end of Period
(653,342)
493,945
Relating to:
Cash at bank and in hand
5,292
493,945
Bank overdrafts included in creditors payable within one year
(658,634)
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements
For The Period Ended 31 December 2022
- 13 -
1
Accounting policies
Company information
G H Dean & Co. Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hempstead Farm, Tonge, Sittingbourne, Kent, England, ME9 9BJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Turnover from rental investment property is recognised on a month by month basis in line with the terms of any relevant agreements with tenants.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold and long-term leasehold property
5% straight line
Plant and machinery
5-10% straight line and 5-25% reducing balance
Bulk bins
20% straight line
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
1
Accounting policies
(Continued)
- 14 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Biological assets
Biological assets are recognised only when three recognition criteria have been fulfilled:
the entity has control over the asset as a result of past events;
it is probable that future economic benefits associated with the asset will flow to the entity; and
the fair value or cost of the asset can be measured reliably.
The company measures biological assets at cost less accumulated depreciation and accumulated impairment losses.
In respect of agricultural produce harvested from a biological asset, this is measured at the point of harvest at either;
lower of cost and estimated selling price less costs to complete and sell; or
fair value less costs to sell with any gain or loss arising on initial recognition of agricultural produce at fair value less costs to sell being included in profit or loss.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Sheep flock
carried on a replacement cost basis
Orchards
4-10% straight line
1.6
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
1
Accounting policies
(Continued)
- 15 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.10
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
1
Accounting policies
(Continued)
- 16 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
1
Accounting policies
(Continued)
- 17 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.12
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
1
Accounting policies
(Continued)
- 18 -
1.16
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Tangible fixed assets
Tangible fixed assets are depreciated over their useful economic lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining lives of the assets and projected disposal values.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Investment property
Such properties are included in these financial statements at fair value. These values are obtained from a qualified valuer, however there is significant uncertainty in estimating these values.
Stock
Certain yields are estimated as crops are harvested from the field, with adjustment made for drying. Estimation of yields can differ based upon the approach taken, however the directors believe that their approach takes account of waste, economic and environmental factors and fives a value in line with their expectations.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
- 19 -
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Farm produce
7,486,230
4,344,713
Subsidies
646,712
515,581
Miscellaneous
758,705
429,632
Land sale
7,057,338
-
15,948,985
5,289,926
2022
2021
£
£
Other revenue
Interest income
131
18
Dividends received
1,137
35
All turnover of the company originated in the United Kingdom.
4
Operating profit
2022
2021
Operating profit for the period is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,000
14,000
Depreciation of owned tangible fixed assets
715,136
491,786
Depreciation of tangible fixed assets held under finance leases
1,291
57,622
Profit on disposal of tangible fixed assets
(873)
(10,087)
Profit on disposal of investment property
(23,332)
Operating lease charges
6,031
-
5
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2022
2021
Number
Number
Administration
4
4
Farming
41
55
Total
45
59
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
5
Employees
(Continued)
- 20 -
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
1,778,910
1,297,867
Social security costs
163,114
95,639
Pension costs
57,775
53,398
1,999,799
1,446,904
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
43,500
15,000
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
131
18
Other income from investments
Dividends received
1,137
35
Total income
1,268
53
2022
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
131
18
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
174,768
81,880
Other finance costs:
Interest on finance leases and hire purchase contracts
567
-
175,335
81,880
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
- 21 -
9
Amounts written off investments
2022
2021
£
£
Loss on disposal of financial assets held at cost
(2)
-
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
1,138,225
67,312
Adjustments in respect of prior periods
(8,358)
(68,339)
Total current tax
1,129,867
(1,027)
Deferred tax
Origination and reversal of timing differences
51,703
557,942
Changes in tax rates
1,218,321
Total deferred tax
1,270,024
557,942
Total tax charge
2,399,891
556,915
The actual charge for the Period can be reconciled to the expected charge for the Period based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
6,827,597
3,086,439
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
1,297,243
586,423
Gains not taxable
(133,196)
(560,232)
Tax effect of utilisation of tax losses not previously recognised
(23,542)
Permanent capital allowances in excess of depreciation
48,030
78,098
Other non-reversing timing differences
(73,636)
Under/(over) provided in prior years
(8,358)
(68,339)
Dividend income
(216)
(7)
(13,428)
1,270,024
557,942
Taxation charge for the period
2,399,891
556,915
Unrelieved farming losses of £? are carried forward and are available to reduce the tax liability in respect of future trading profits.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
- 22 -
11
Dividends
2022
2021
£
£
Interim paid
512,341
201,217
12
Tangible fixed assets
Freehold and long-term leasehold property
Plant and machinery
Bulk bins
Total
£
£
£
£
Cost
At 1 October 2021
16,977,243
4,193,303
319,693
21,490,239
Additions
21,192
399,052
-
420,244
Disposals
(148,337)
(50,425)
-
(198,762)
At 31 December 2022
16,850,098
4,541,930
319,693
21,711,721
Depreciation and impairment
At 1 October 2021
3,210,147
2,624,867
311,528
6,146,542
Depreciation on owned assets
394,076
314,186
8,165
716,427
Depreciation on financed assets
1,291
-
1,291
Eliminated in respect of disposals
(39,810)
-
(39,810)
At 31 December 2022
3,604,223
2,900,534
319,693
6,824,450
Carrying amount
At 31 December 2022
13,245,875
1,641,396
-
14,887,271
At 30 September 2021
13,767,096
1,568,436
8,165
15,343,697
The carrying value of freehold land relates to 1,580 hectares (2021: 1,594 hectares) of land comprising farmland, marshland, orchards and land prepared for development. The directors are satisfied that the market value of land is in excess of its carrying value in the financial statements.
2022
2021
£
£
Freehold
9,077,352
9,225,689
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2022
2021
£
£
Plant and machinery
153,667
271,646
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
- 23 -
13
Biological assets
Sheep flock
Orchards
Total
£
£
£
Cost
At 1 October 2021
233,461
1,756,405
1,989,866
Additions - purchases
70,210
70,210
Disposals
(81,821)
(81,821)
At 31 December 2022
221,850
1,756,405
1,978,255
Depreciation and impairment
At 1 October 2021
1,173,632
1,173,632
Depreciation charged for the Period
100,625
100,625
At 31 December 2022
1,274,257
1,274,257
Carrying amount
At 31 December 2022
221,850
482,148
703,998
At 30 September 2021
233,461
582,773
816,234
14
Investment property
2022
£
Fair value
At 1 October 2021
23,236,834
Disposals
(248,668)
Net gains or losses through fair value adjustments
701,034
At 31 December 2022
23,689,200
The 2022 valuations were made by Mr MWS Bax FRICS FAAV (Director), on an open market value for existing use basis.
The historic cost of individual investments properties is unknown as they have been acquired from 1947 onwards in combination with other property used in the trade of the company.
All of the property of the company is used to secure borrowing by way of debentures, fixed charges, floating charges and negative pledges.
15
Fixed asset investments
2022
2021
Notes
£
£
Investments in subsidiaries
16
30,099
30,100
Unlisted investments
511
513
30,610
30,613
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
15
Fixed asset investments
(Continued)
- 24 -
Fixed asset investments not carried at market value
The investments are relating to the PO and therefore are carried at cost.
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 October 2021
30,100
513
30,613
Additions
9
-
9
Correction to shareholding
(10)
(2)
(12)
At 31 December 2022
30,099
511
30,610
Carrying amount
At 31 December 2022
30,099
511
30,610
At 30 September 2021
30,100
513
30,613
16
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
G.H. Dean (1920) Limited
Hempstead Farm, Bapchild, Sittingbourne, Kent, ME9 9BH
Dormant
Ordinary Share
99.97
Blackbird Farming Limited
Hempstead Farm, Bapchild, Sittingbourne, Kent, ME9 9BH
Dormant
Ordinary Share
100.00
Machere Ltd
Hempstead Farm, Bapchild, Sittingbourne, Kent, ME9 9BH
Farming
Ordinary Share
90.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
G.H. Dean (1920) Limited
30,000
Blackbird Farming Limited
100
Machere Ltd
10
(45,000)
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
- 25 -
17
Financial instruments
2022
2021
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
23,544
750,114
Equity instruments measured at cost less impairment
30,099
30,100
Instruments measured at fair value through profit or loss
513
513
Carrying amount of financial liabilities
Measured at amortised cost
- Other financial liabilities
(6,932,436)
(5,030,706)
Financial assets measured at fair value through profit and loss account comprise unlisted investments.
Financial assets that are debt instruments measured at amortised cost comprise trade debtors and cash.
Financial assets that are equity instruments measured at cost less impairment comprise investments in subsidiary companies.
Financial liabilities measured at amortised cost comprise trade creditors, bank loan, amounts owed to group undertakings, other creditors, finance lease and accruals.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
- 26 -
18
Stocks
2022
2021
£
£
Livestock
-
551
Growing crop
289,276
108,954
Crop in store
1,705,101
2,392,648
Consumables
686,448
534,932
Property related work in progress
1,510,205
4,191,030
3,037,085
Biological assets included within stock are as follows:
Biological assets - livestock
2022
2021
£
£
As at 1 October
551
36,225
Net movement from births, deaths, sales, purchases and transfers
(551)
(35,674)
As at 31 December
-
551
Biological assets - growing crop
2022
2021
£
£
As at 1 October
108,954
155,530
Net movement on cultivations
180,322
(46,576)
As at 31 December
289,276
108,954
19
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
218,252
256,169
Other debtors
9,320,501
1,663,627
Prepayments and accrued income
1,247,043
10,785,796
1,919,796
All of the debtors of the company are used to secure borrowing by way of debentures, fixed charges, floating charges and negative pledges.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
- 27 -
20
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans and overdrafts
22
702,333
807,542
Obligations under finance leases
23
40,590
74,667
Trade creditors
350,318
892,157
Amounts owed to group undertakings
30,109
30,100
Corporation tax
1,138,225
67,312
Other taxation and social security
1,291,108
65,849
Other creditors
155,394
15,176
Accruals and deferred income
1,322,811
101,395
5,030,888
2,054,198
21
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
22
4,284,786
3,075,567
Obligations under finance leases
23
77,798
34,103
4,362,584
3,109,670
22
Loans and overdrafts
2022
2021
£
£
Bank loans
4,328,485
3,883,109
Bank overdrafts
658,634
4,987,119
3,883,109
Payable within one year
702,333
807,542
Payable after one year
4,284,786
3,075,567
The company has multiple loans with, ultimately the Royal Bank of Scotland Group plc. These loans total £4,328,485 (2021 £3,883,110) at the year end. The schedule of loan repayments is disclosed in the note, with the final repayment due in 2032. The applicable interest rate for the loans is a mix of 2% and 2.5% above the Bank of England base rate.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
- 28 -
23
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
40,590
74,667
In two to five years
77,798
34,103
118,388
108,770
24
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
694,538
579,928
Tax losses
-
(5,261)
Revaluations
4,433,663
3,283,510
5,128,201
3,858,177
2022
Movements in the Period:
£
Liability at 1 October 2021
3,858,177
Charge to profit or loss
51,703
Effect of change in tax rate - profit or loss
1,218,321
Liability at 31 December 2022
5,128,201
25
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
32,496
26,699
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
- 29 -
26
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
426,954
426,954
42,695
42,695
27
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2022
2021
£
£
Aggregate compensation
147,412
103,412
A company which is under the control of the board of directors was granted a 29 year lease in 2017. The lease was granted on an arms length basis with an annual rent of £12,200. At the balance sheet date, the amount due to the related party was £148,501 (2021: £116,910).
28
Ultimate controlling party
The company is controlled by the shareholders. There is no ultimate controlling party.
29
Cash (absorbed by)/generated from operations
2022
2021
£
£
Profit for the Period after tax
4,427,706
2,529,524
Adjustments for:
Taxation charged
2,399,891
556,915
Finance costs
175,335
81,880
Investment income
(1,268)
(53)
Gain on disposal of tangible fixed assets
(873)
(10,087)
Gain on disposal of investment property
(23,332)
Fair value gain on investment properties
(701,034)
(2,948,591)
Depreciation and impairment of tangible fixed assets
818,343
704,432
Other gains and losses
2
-
Movements in working capital:
Increase in stocks
(1,153,945)
(768,370)
Increase in debtors
(8,866,000)
(67,112)
Increase/(decrease) in creditors
2,045,063
(63,170)
Cash (absorbed by)/generated from operations
(880,112)
15,368
G H Dean & Co. Limited
G H DEAN & CO. LIMITED
also trading as Blackbird Farming
Notes To The Financial Statements (Continued)
For The Period Ended 31 December 2022
- 30 -
30
Analysis of changes in net debt
1 October 2021
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
493,945
(488,653)
5,292
Bank overdrafts
-
(658,634)
(658,634)
493,945
(1,147,287)
(653,342)
Borrowings excluding overdrafts
(3,883,109)
(445,376)
(4,328,485)
Obligations under finance leases
(108,770)
(9,618)
(118,388)
(3,497,934)
(1,602,281)
(5,100,215)
2022-12-312021-10-01falseCCH SoftwareCCH Accounts Production 2023.300Mr M W S BaxMrs M A DaviesMs A J DeanMr E G DoubledayMr O C DoubledayMr G L T ReutterMs J A Hadlowfalse004317762021-10-012022-12-3100431776bus:Director12021-10-012022-12-3100431776bus:Director22021-10-012022-12-3100431776bus:Director32021-10-012022-12-3100431776bus:Director42021-10-012022-12-3100431776bus:Director52021-10-012022-12-3100431776bus:Director62021-10-012022-12-3100431776bus:CompanySecretary12021-10-012022-12-3100431776bus:RegisteredOffice2021-10-012022-12-31004317762022-12-31004317762020-10-012021-09-3000431776core:RetainedEarningsAccumulatedLosses2020-10-012021-09-3000431776core:RetainedEarningsAccumulatedLosses2021-10-012022-12-31004317762021-09-3000431776core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-3100431776core:PlantMachinery2022-12-3100431776core:LandBuildingscore:OwnedOrFreeholdAssets2021-09-3000431776core:PlantMachinery2021-09-3000431776core:Non-standardPPEClass3ComponentTotalPropertyPlantEquipment2021-09-3000431776core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3100431776core:CurrentFinancialInstrumentscore:WithinOneYear2021-09-3000431776core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3100431776core:Non-currentFinancialInstrumentscore:AfterOneYear2021-09-3000431776core:CurrentFinancialInstruments2022-12-3100431776core:CurrentFinancialInstruments2021-09-3000431776core:Non-currentFinancialInstruments2022-12-3100431776core:Non-currentFinancialInstruments2021-09-3000431776core:ShareCapital2022-12-3100431776core:ShareCapital2021-09-3000431776core:OtherMiscellaneousReserve2022-12-3100431776core:OtherMiscellaneousReserve2021-09-3000431776core:RetainedEarningsAccumulatedLosses2022-12-3100431776core:RetainedEarningsAccumulatedLosses2021-09-3000431776core:ShareCapital2020-09-3000431776core:TreasurySharesOwnSharesReserve2020-09-3000431776core:RetainedEarningsAccumulatedLosses2020-09-3000431776core:TreasurySharesOwnSharesReserve2021-09-3000431776core:TreasurySharesOwnSharesReserve2022-12-310043177612021-10-012022-12-310043177612020-10-012021-09-30004317762021-09-30004317762020-09-3000431776core:WithinOneYear2022-12-3100431776core:WithinOneYear2021-09-3000431776core:LandBuildingscore:OwnedOrFreeholdAssets2021-10-012022-12-3100431776core:PlantMachinery2021-10-012022-12-3100431776core:Non-standardPPEClass3ComponentTotalPropertyPlantEquipment2021-10-012022-12-3100431776core:BearerBiologicalAssetClass22021-10-012022-12-3100431776core:BearerBiologicalAssetClass42021-10-012022-12-3100431776dpl:Item12021-10-012022-12-3100431776dpl:Item12020-10-012021-09-3000431776dpl:Item22021-10-012022-12-3100431776dpl:Item22020-10-012021-09-3000431776core:UKTax2021-10-012022-12-3100431776core:UKTax2020-10-012021-09-300043177622021-10-012022-12-310043177622020-10-012021-09-300043177632021-10-012022-12-310043177632020-10-012021-09-300043177642021-10-012022-12-310043177642020-10-012021-09-3000431776core:LandBuildingscore:OwnedOrFreeholdAssets2021-09-3000431776core:PlantMachinery2021-09-3000431776core:Non-standardPPEClass3ComponentTotalPropertyPlantEquipment2021-09-3000431776core:Non-standardPPEClass3ComponentTotalPropertyPlantEquipment2022-12-3100431776core:BearerBiologicalAssetClass22021-09-3000431776core:BearerBiologicalAssetClass42021-09-3000431776core:BearerBiologicalAssetClass22022-12-3100431776core:BearerBiologicalAssetClass42022-12-3100431776core:BearerBiologicalAssetClass22021-09-3000431776core:BearerBiologicalAssetClass42021-09-3000431776core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2022-12-3100431776core:Non-currentFinancialInstrumentscore:UnlistedNon-exchangeTraded2021-09-3000431776core:Subsidiary12021-10-012022-12-3100431776core:Subsidiary22021-10-012022-12-3100431776core:Subsidiary32021-10-012022-12-3100431776core:Subsidiary112021-10-012022-12-3100431776core:Subsidiary212021-10-012022-12-3100431776core:Subsidiary312021-10-012022-12-3100431776core:Subsidiary12022-12-3100431776core:Subsidiary22022-12-3100431776core:Subsidiary32022-12-3100431776dpl:Item12021-09-3000431776dpl:Item22022-12-3100431776dpl:Item12022-12-3100431776core:BetweenTwoFiveYears2022-12-3100431776core:BetweenTwoFiveYears2021-09-3000431776bus:PrivateLimitedCompanyLtd2021-10-012022-12-3100431776bus:FRS1022021-10-012022-12-3100431776bus:Audited2021-10-012022-12-3100431776bus:FullAccounts2021-10-012022-12-31xbrli:purexbrli:sharesiso4217:GBP