Company Registration No. 00691996 (England and Wales)
SEWELL HEWITT (FARMS) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
PAGES FOR FILING WITH REGISTRAR
SEWELL HEWITT (FARMS) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
SEWELL HEWITT (FARMS) LIMITED
BALANCE SHEET
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
3
5,335,744
4,493,198
Investment properties
4
2,355,000
1,655,000
7,690,744
6,148,198
Current assets
Stocks
600
2,600
Debtors
5
60,681
66,979
Cash at bank and in hand
290,237
363,534
351,518
433,113
Creditors: amounts falling due within one year
6
(92,615)
(97,335)
Net current assets
258,903
335,778
Total assets less current liabilities
7,949,647
6,483,976
Provisions for liabilities
(1,011,298)
(503,846)
Net assets
6,938,349
5,980,130
Capital and reserves
Called up share capital
73
73
Capital redemption reserve
27
27
Profit and loss reserves
6,938,249
5,980,030
Total equity
6,938,349
5,980,130
SEWELL HEWITT (FARMS) LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
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 31 May 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.
The financial statements were approved by the board of directors and authorised for issue on 22 December 2021 and are signed on its behalf by:
Mr A J King
Director
Company Registration No. 00691996
SEWELL HEWITT (FARMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2021
- 3 -
1
Accounting policies
Company information
Sewell Hewitt (Farms) Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Hill Farm, Chillesford, Woodbridge, Suffolk, IP12 3PY.
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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The
country is currently emerging from a pandemic caused by coronavirus,
though with the company trade being farming and
pig service management
, the trade is of strategic importance to the UK food production process and the agricultural sector is not expected to suffer economically as a result of COVID-19 due to its importance in the food supply chain. The directors have considered the effect on the business thereon and anticipates that the company will be able to continue to meet its liabilities as they fall due.
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.
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 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
and the amount of revenue can be measured reliably
.
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:
Plant and machinery
5 -15 years
Fixtures, fittings & equipment
3 - 5 years
Motor vehicles & tractors
see below
Agri buildings, reservoir & lagoon
20 - 50 years
SEWELL HEWITT (FARMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2021
1
Accounting policies
(Continued)
- 4 -
Motor vehicles and tractors are reviewed annually and any change in market value is recognised as a revaluation gain or loss in the profit and loss account.
No depreciation is provided on land.
Gains and losses on disposal are determined by comparing the proceeds with the carrying amount and are recognised in the Profit and Loss Account.
1.5
Investment properties
Investment property is carried at fair value, determined annually, and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. The directors review the fair value annually and will appoint an external valuer, as required, if they consider the fair value to have materially changed in the period. No depreciation is provided. Changes in fair value are recognised in the Profit and Loss account.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
1.7
Cash at bank and in hand
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.
SEWELL HEWITT (FARMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2021
1
Accounting policies
(Continued)
- 5 -
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
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
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
SEWELL HEWITT (FARMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2021
1
Accounting policies
(Continued)
- 6 -
1.12
Leases
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.
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.
1.13
Recognition of gifted properties
The company was gifted various freehold properties in the year ended 31 May 2001 under the will of the late J T S Hewitt.
The properties were initially recognised at their deemed cost which is the inheritance tax and associated costs connected with the gift. The cost was apportioned between the gifted properties on the basis of market value.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
6
6
SEWELL HEWITT (FARMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2021
- 7 -
3
Tangible fixed assets
Land and buildings
Plant and machinery
Agri buildings, reservoir & lagoon
Total
£
£
£
£
Cost or valuation
At 1 June 2020
4,015,000
921,346
344,207
5,280,553
Additions
191,458
62,876
254,334
Disposals
(95,477)
(95,477)
Revaluation
710,000
710,000
At 31 May 2021
4,725,000
1,017,327
407,083
6,149,410
Depreciation and impairment
At 1 June 2020
514,581
272,774
787,355
Depreciation charged in the year
47,165
7,754
54,919
Eliminated in respect of disposals
(28,608)
(28,608)
At 31 May 2021
533,138
280,528
813,666
Carrying amount
At 31 May 2021
4,725,000
484,189
126,555
5,335,744
At 31 May 2020
4,015,000
406,765
71,433
4,493,198
If land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:
2021
2020
£
£
Cost
276,453
276,453
Accumulated depreciation
-
-
Carrying value
276,453
276,453
SEWELL HEWITT (FARMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2021
3
Tangible fixed assets
(Continued)
- 8 -
The last full valuation of freehold land and properties was undertaken in October 2021 by James Baker MRICS.
If the motor vehicles and tractors had not been included at valuation they would have been included under the historical cost convention as follows:
2021
2020
£
£
Cost
420,704
362,561
Accumulated depreciation
(100,731)
(110,162)
Carrying value
319,973
252,399
4
Investment property
2021
£
Fair value
At 1 June 2020
1,655,000
Revaluations
700,000
At 31 May 2021
2,355,000
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2021
2020
£
£
Cost
697,819
697,819
Accumulated depreciation
-
-
Carrying amount
697,819
697,819
The last full valuation of freehold land and properties was undertaken in October 2021 by James Baker MRICS.
SEWELL HEWITT (FARMS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2021
- 9 -
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
41,170
39,072
Other debtors
19,511
27,907
60,681
66,979
6
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
37,098
42,269
Taxation and social security
13,120
28,257
Other creditors
42,397
26,809
92,615
97,335
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
1,832