Feedmark Limited
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Notes to the Accounts |
for the year ended 31 December 2017
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1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102 Section 1A, the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
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Central Services |
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The Parent company provides and manages funds for all group companies through a central treasury; the cost of this and other centrally provided services is recharged to the relevant group company. Specific services are recharged to the relevant group company. Bank loans and overdraft interest is recharged to group companies that have borrowed or lent funds through the central treasury calculated on intercompany indebtedness at the relevant bank rate of interest. General services are recharged in proprtion to turnover. Amounts owed by group companies are repayable on demand.
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset over its expected useful life, as follows:
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Websites, plant & machinery |
20% reducing balance |
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Computers and related equipment |
33% straight line |
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Office furniture and equipment |
15% reducing balance |
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Motor vehicles |
25% reducing balance |
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Website development costs are capitalised on launch of a new website. The net book value of a previous website's capitalised cost is written off if a new website is launched that substantially replaces a previous website. Ongoing enhancements to a website are treated as repairs and are expensed as incurred. |
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At each balance sheet date the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items 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. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax assets relating to group relieved tax losses are transferred to group company benefiting from the group relief. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
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Research and development |
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Cost incurred on research and development of new products is written off in the P&L in the period incurred |
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Employee remuneration |
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Bonuses, holiday pay and other unpaid elements of employee remuneration are accrued in the period to which they relate. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate.
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2 |
Employees |
2017 |
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2016 |
Number |
Number |
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Average number of persons employed by the company |
15 |
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14 |
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3 |
Tangible fixed assets |
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Plant and machinery etc |
£ |
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Cost |
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At 1 January 2017 |
200,504 |
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Additions |
57,774 |
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Disposals |
(680) |
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At 31 December 2017 |
257,598 |
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Depreciation |
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At 1 January 2017 |
126,854 |
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Charge for the year |
21,160 |
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On disposals |
(680) |
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At 31 December 2017 |
147,334 |
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Net book value |
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At 31 December 2017 |
110,264 |
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At 31 December 2016 |
73,650 |
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The company launched a new website in 2016. It capitalised £52,000 of new website development costs and wrote off the £1,751 NBV of the old website in 2016. The company has been devoloping a new innovative product for launch in 2018. This new product has an associated bespoke computer system and the company has capitalised £49,482 in 2017 relating to developement costs for this new computer system. |
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No provisions have been made in the current financial year of in any previous year for impairment losses on tangible fixed assets. |
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4 |
Debtors |
2017 |
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2016 |
£ |
£ |
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Trade debtors |
19,885 |
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27,762 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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45,785 |
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- |
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Other debtors |
6,848 |
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15,096 |
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72,518 |
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42,858 |
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5 |
Creditors: amounts falling due within one year |
2017 |
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2016 |
£ |
£ |
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Trade creditors |
181,951 |
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215,572 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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- |
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74,088 |
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Other taxes and social security costs |
9,675 |
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8,823 |
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Other creditors |
1,317 |
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849 |
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192,943 |
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299,332 |
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6 |
Pension commitments |
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The company operated a voluntary defined contribution stakeholder pension scheme for its employees with Standard Life until it reached its auto-enrolment staging date in October 2016. At that date it established a new defined contribution pension scheme with NEST and ceased contributing to the Standard Life scheme. The assets of both schemes are held separately from those of the company by the relevant pension provider. At the balance sheet date unpaid contributions of £539 (£432 in 2016) were due to the fund. They are included in other taxes and social security costs in creditors. |
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7 |
Off-balance sheet arrangements |
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A number of years ago the company, a sister company and the Parent company entered into an arrangement with Barclays Bank PLC to provide an overdraft facility to all acceding group companies under a composite accounting scheme. The acceding companies have also entered into a form of Guarantee and Debenture with Barclays Bank PLC under which the acceding companies guarantee the liabilities of all acceeding group companies and charge all assets and undertakings both present and future as security. The overdraft facility was cancelled in 2017. |
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8 |
Related party transactions |
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The company is a 100% owned subsidiary of its Parent company so is exempt from disclosure of related party transactions made in the normal course of business that are not significant. The Parent company leases the company's business premises from a related party and conducts marketing, quality control and product testing activities on behalf of the company. The cost of these and other specific and general services is recharged to the company by its Parent and is included in the £489,694 cost recharge for all such central services in 2016. This year the Parent company recharged £198,036 for general central services plus individual recharges for certain specific costs (£100,000 for advertising and marketing, £60,000 for product testing and quality control, £4,800 for rent and £5,481 for maintenance).
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9 |
Controlling party |
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The Parent company is Langley Abbey Estates Limited. The ultimate controlling party is Mr C J W Townsend.
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10 |
Other information |
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Feedmark Limited is a private company limited by shares and incorporated in England. Its registered office and the registered office of its Parent company is: |
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Langley Abbey Estate |
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Langley |
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Norwich |
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Norfolk |
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NR14 6DG |