Company Registration No. 00614997 (England and Wales)
HAM MANOR FARMS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
PAGES FOR FILING WITH REGISTRAR
HAM MANOR FARMS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
HAM MANOR FARMS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2021
30 April 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
741,331
816,179
Investment properties
4
685,000
665,000
Investments
5
11
11
1,426,342
1,481,190
Current assets
Stocks
353,626
290,017
Debtors
6
47,473
38,555
Cash at bank and in hand
1,044
1,175
402,143
329,747
Creditors: amounts falling due within one year
7
(1,611,177)
(1,590,062)
Net current liabilities
(1,209,034)
(1,260,315)
Total assets less current liabilities
217,308
220,875
Creditors: amounts falling due after more than one year
8
(17,892)
Provisions for liabilities
(106,288)
(43,895)
Net assets
111,020
159,088
Capital and reserves
Called up share capital
10,000
10,000
Revaluation reserve
543,377
585,770
Profit and loss reserves
(442,357)
(436,682)
Total equity
111,020
159,088
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 30 April 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
HAM MANOR FARMS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2021
30 April 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 3 December 2021 and are signed on its behalf by:
Mr P Langmead
Director
Company Registration No. 00614997
HAM MANOR FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2021
- 3 -
1
Accounting policies
Company information
Ham Manor Farms Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Roundstone Farm, Littlehampton Road, Ferring, Worthing, West Sussex, United Kingdom, BN12 6PW.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties at fair value. The principal accounting policies adopted are set out below.
The financial statements relate to Ham Manor Farms Limited as an individual entity.
1.2
Going concern
The cash balance at the year end and the current level of trading and profitability would not appear to be adequate enough to cover another year's trading. The company's principal creditor is the directors. As at the year end amounts owed to the directors totalled £1,378,161. They have confirmed that they will continue to provide financial support to the company and thus considers the going concern basis to continue to be applicable to the preparation of the company's accounts.
1.3
Turnover
Turnover represents the amount derived from ordinary activities, stated net of value added tax. Farming income is recognised upon despatch of goods. Rental income, included within other income, is recognised in respect of the period to which it relates.
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 land and buildings
not provided
Plant and equipment
12.5% on reducing balance
Fixtures and fittings
25% on cost
Office equipment
33% on cost and 10% on reducing balance
Tractors & motor vehicles
25% on reducing balance
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
Investment properties
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.
HAM MANOR FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 4 -
1.6
Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
Included within stock are biological assets which are included at the lower of cost and estimated selling price less costs to sell.
1.7
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.
1.8
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.
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
paymen
ts 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. A
m
ounts 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.
1.9
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.
HAM MANOR FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 5 -
1.10
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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 lease
s
asset are consumed.
HAM MANOR FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
1
Accounting policies
(Continued)
- 6 -
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.
1.14
As a result of COVID-19 Ham Manor Farms Limited have incurred additional expenses to comply with safety requirements and social distancing both on the farm and the PYO farm, which reopened to the public in the current trading year.
1.15
Transfer to revaluation reserve
Gains or losses on fair value of investment property have been transferred from retained earnings to a specific non-distributable reserve; a revaluation reserve. Similarly all deferred tax relating to these fair value movements have been transferred to the same reserve.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
13
12
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 May 2020
500,505
804,677
1,305,182
Additions
59,311
59,311
Disposals
(105,677)
(105,677)
At 30 April 2021
500,505
758,311
1,258,816
Depreciation and impairment
At 1 May 2020
489,003
489,003
Depreciation charged in the year
66,403
66,403
Eliminated in respect of disposals
(37,921)
(37,921)
At 30 April 2021
517,485
517,485
Carrying amount
At 30 April 2021
500,505
240,826
741,331
At 30 April 2020
500,505
315,674
816,179
HAM MANOR FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
3
Tangible fixed assets
(Continued)
- 7 -
Freehold land and buildings includes certain land and buildings which have previously been valued. On a
historical cost basis, land and buildings would have been included at £459,987 (20
20
- £459,987)
.
The company has adopted the transitional exemptions of FRS 102 allowing for a previous revaluation to be used
as deemed cost.
4
Investment property
2021
£
Fair value
At 1 May 2020
665,000
Revaluations
20,000
At 30 April 2021
685,000
If investment property had not been revalued it would have been included at historical cost as at 30 April 202
1
of
£51,191 (20
20
: £51,191).
The investment properties were valued on an open market basis on 30 April 2021 by P Langmead.
5
Fixed asset investments
2021
2020
£
£
Other investments other than loans
11
11
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 May 2020 & 30 April 2021
11
Carrying amount
At 30 April 2021
11
At 30 April 2020
11
HAM MANOR FARMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2021
- 8 -
6
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
896
1,321
Other debtors
46,577
37,234
47,473
38,555
7
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
128,583
159,938
Trade creditors
66,413
12,757
Taxation and social security
3,243
3,210
Other creditors
1,412,938
1,414,157
1,611,177
1,590,062
The following secured debts are included within creditors:
Bank overdrafts of £128,583 (2020 - 159,938).
Hire purchase contracts of £17,892. (2020 - 35,783).
The bank overdraft is secured by a legal charge over certain freehold property.
The hire purchase contract is secured by the asset in which it relates to.
8
Creditors: amounts falling due after more than one year
2021
2020
£
£
Other creditors
17,892
9
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
17,892
17,891
In two to five years
17,892
17,892
35,783