REGISTERED NUMBER:
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WM.KERR (FARMS) LIMITED |
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UNAUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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REGISTERED NUMBER:
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WM.KERR (FARMS) LIMITED |
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UNAUDITED FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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WM.KERR (FARMS) LIMITED (REGISTERED NUMBER: 00534749) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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Company Information | 1 |
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Statement of Financial Position | 2 | to | 3 |
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Notes to the Financial Statements | 4 | to | 10 |
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WM.KERR (FARMS) LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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3 Castlegate |
Grantham |
Lincolnshire |
NG31 6SF |
WM.KERR (FARMS) LIMITED (REGISTERED NUMBER: 00534749) |
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STATEMENT OF FINANCIAL POSITION |
30 SEPTEMBER 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Property, plant and equipment | 5 |
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Investments | 6 |
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CURRENT ASSETS |
Inventories |
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Debtors | 7 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 8 |
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NET CURRENT ASSETS/(LIABILITIES) |
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TOTAL ASSETS LESS CURRENT LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
9 |
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PROVISIONS FOR LIABILITIES |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 11 |
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Revaluation reserve | 12 |
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Retained earnings | ( |
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SHAREHOLDERS' FUNDS |
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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. |
WM.KERR (FARMS) LIMITED (REGISTERED NUMBER: 00534749) |
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STATEMENT OF FINANCIAL POSITION - continued |
30 SEPTEMBER 2021 |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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WM.KERR (FARMS) LIMITED (REGISTERED NUMBER: 00534749) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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1. | STATUTORY INFORMATION |
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WM.Kerr (Farms) Limited is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Revenue |
Revenue is the total amount receivable by the company for goods supplied and services provided, excluding Value Added Tax and trade discounts. |
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Sales of produce are recognised upon despatch. |
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Intangible fixed assets |
Intangible assets are represented by the cost of purchasing sugar beet contracts. These contracts are amortised evenly over the period for which they may reasonably be expected to be of value to the business. Amortisation at a rate of 33.33% has been charged to the income statement in this respect. |
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Intangible assets include entitlements to the basic payment. The entitlements are recognised at fair value and written off on a straight line basis over the period to 31 December 2019 when the scheme ends. |
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Property, plant and equipment |
Depreciation is calculated to write down the cost of all tangible fixed assets other than freehold land and buildings, by equal annual instalments or by the reducing balance method over their expected useful lives. The rates/periods generally applicable are: |
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Freehold land and buildings | Nil |
Improvements to property | 4% on cost |
Plant and equipment | 15 - 25% reducing balance and 10 - 33% straight line |
Motor vehicles | 15 - 25% reducing balance |
Tractors and harvesters | 15 - 25% reducing balance |
Office equipment | 25 - 33% straight line |
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No depreciation has been provided for freehold property. It is the company's policy to maintain its property in a continual state of sound repair. In the case of freehold buildings, the directors consider that the lives of these buildings and their residual value are such that their depreciation is not significant. |
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Inventories |
Inventories are measured at the lower of cost and fair value less costs to complete and sell after making due allowance for obsolete and slow moving items. |
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WM.KERR (FARMS) LIMITED (REGISTERED NUMBER: 00534749) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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2. | ACCOUNTING POLICIES - continued |
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. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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 statement of financial position date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
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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. |
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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. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
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Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance lease are capitalised in the statement of financial position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
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The interest element of these obligations is charged to the income statement over the relevant period. The capital element of the future payments is treated as a liability. |
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Rentals paid under operating leases are changed to the income statement on a straight line basis over the period of the lease. |
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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 the income statement in the period to which they relate. |
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Fixed asset investments |
Investments are valued at the lower of cost and market value at the year end. |
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Basic farm payment |
The Basic Farm Payment is recognised in the financial statements in accordance with current H.M. Revenue & Customs guidance. |
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Interests in joint ventures |
Joint ventures are recognised at cost less impairment. Shares of profits and losses are recognised in the income statement. |
WM.KERR (FARMS) LIMITED (REGISTERED NUMBER: 00534749) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
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COST |
At 1 October 2020 |
and 30 September 2021 |
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AMORTISATION |
At 1 October 2020 |
and 30 September 2021 |
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NET BOOK VALUE |
At 30 September 2021 |
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At 30 September 2020 |
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5. | PROPERTY, PLANT AND EQUIPMENT |
Freehold | Improvements |
land and | to | Plant and |
buildings | property | equipment |
£ | £ | £ |
COST OR VALUATION |
At 1 October 2020 |
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Additions |
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Disposals | ( |
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At 30 September 2021 |
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DEPRECIATION |
At 1 October 2020 |
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Charge for year |
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Eliminated on disposal |
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At 30 September 2021 |
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NET BOOK VALUE |
At 30 September 2021 |
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At 30 September 2020 |
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WM.KERR (FARMS) LIMITED (REGISTERED NUMBER: 00534749) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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5. | PROPERTY, PLANT AND EQUIPMENT - continued |
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Tractors |
Motor | and | Office |
vehicles | harvesters | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 October 2020 |
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Additions |
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Disposals | ( |
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At 30 September 2021 |
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DEPRECIATION |
At 1 October 2020 |
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Charge for year |
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Eliminated on disposal | ( |
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At 30 September 2021 |
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NET BOOK VALUE |
At 30 September 2021 |
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At 30 September 2020 |
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Cost or valuation at 30 September 2021 is represented by: |
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Freehold | Improvements |
land and | to | Plant and |
buildings | property | equipment |
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Valuation in 2021 | 3,844,764 | 224,974 | 999,306 |
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Tractors |
Motor | and | Office |
vehicles | harvesters | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2021 | 97,753 | 504,786 | 37,866 | 5,709,449 |
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If freehold land and buildings had not been revalued they would have been included at the following historical cost: |
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2021 | 2020 |
£ | £ |
Cost | 1,476,960 | 1,476,960 |
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Freehold land and buildings were valued on an open market basis on 18 January 2012 by Cheffins Chartered Surveyors . |
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The company has taken advantage of exemption, under section 35.10 of Financial Reporting Standard 102, to use a previous GAAP revaluation as deemed cost. |
WM.KERR (FARMS) LIMITED (REGISTERED NUMBER: 00534749) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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6. | FIXED ASSET INVESTMENTS |
Other |
investments |
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COST |
At 1 October 2020 |
and 30 September 2021 |
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NET BOOK VALUE |
At 30 September 2021 |
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At 30 September 2020 |
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7. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
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Other debtors |
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Directors' current accounts | 712,486 | 678,474 |
VAT |
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Prepayments and accrued income |
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Included within debtors is an amount of £239,675 owed by LFWMK LLP as at the balance sheet date with further amounts accruing on an ongoing basis. The company is in legal dispute with its partner in LFWMK LLP alleging multiple breaches of contact in respect of the conduct of the business of LFWMK LLP and will be seeking damages and compensation in addition to the above. As the amounts due are currently being withheld by LFWMK LLP pending the outcome of the legal action, the timing and ultimate amounts of income receivable are uncertain. |
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8. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts |
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Hire purchase contracts |
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Trade creditors |
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Corporation tax |
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Other taxes and social security |
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VAT | - | 52,197 |
Other creditors |
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Accruals and deferred income |
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9. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans |
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Hire purchase contracts |
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WM.KERR (FARMS) LIMITED (REGISTERED NUMBER: 00534749) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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10. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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2021 | 2020 |
£ | £ |
Hire purchase contracts | 22,148 | 82,092 |
Bank loans and overdraft | 3,491,801 | 3,227,776 |
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The bank loans and overdraft are secured on the freehold land and buildings of the company. The hire purchase liabilities are secured on the assets to which they relate. |
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11. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
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Ordinary shares of £1 each | £1 | 89,925 | 89,925 |
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Deferred Ordinary shares of £1 |
each | £1 | 3,500 | 3,500 |
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Redeemable preference shares |
of £1 each | £1 | 3,000 | 3,000 |
96,425 | 96,425 |
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12. | RESERVES |
Revaluation |
reserve |
£ |
At 1 October 2020 |
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Realised revaluation surplus on disposal | 304,674 |
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At 30 September 2021 |
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The aggregate surplus on re-measurement of freehold properties, net of associated deferred tax, is transferred to a separate non-distributable revaluation reserve in order to assist with the identification of profits available for distribution. |
WM.KERR (FARMS) LIMITED (REGISTERED NUMBER: 00534749) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 SEPTEMBER 2021 |
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13. | OTHER FINANCIAL COMMITMENTS |
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At the year end the company has commitments due as follows: |
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2021 | 2020 |
£ | £ |
Within one year | 716 | 716 |
Between one and five years | 859 | 1,575 |
In more than five years | - | - |
1,575 | 2,291 |
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14. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
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The following advances and credits to a director subsisted during the years ended 30 September 2021 and 30 September 2020: |
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2021 | 2020 |
£ | £ |
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Balance outstanding at start of year |
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Amounts advanced |
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Amounts repaid | ( |
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Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
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The loans made to the directors were unsecured, interest free and repayable on demand. |