REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Period |
27 February 2022 to 25 February 2023 |
for |
Hammond Produce Limited |
REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Period |
27 February 2022 to 25 February 2023 |
for |
Hammond Produce Limited |
Hammond Produce Limited (Registered number: 03776727) |
Contents of the Financial Statements |
for the Period 27 February 2022 to 25 February 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 |
Income Statement | 7 |
Balance Sheet | 8 |
Statement of Changes in Equity | 9 |
Notes to the Financial Statements | 10 |
Hammond Produce Limited |
Company Information |
for the Period 27 February 2022 to 25 February 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants & Business Advisers |
15 Newland |
Lincoln |
Lincolnshire |
LN1 1XG |
Hammond Produce Limited (Registered number: 03776727) |
Strategic Report |
for the Period 27 February 2022 to 25 February 2023 |
The directors present their strategic report for the 52-week period from 27 February 2022 to 25 February 2023. |
OPERATIONAL AND FINANCIAL OVERVIEW |
The company supplies fresh produce to a mixed customer base, including supermarkets, wholesale food suppliers to various UK sectors, and other food producers. Key suppliers include produce growers, packaging distributors, agency labour providers and suppliers of fuel and energy. The invasion of Ukraine by Russia coincided with the start of the company's financial year and caused increased input costs for most of these suppliers, together with shortages of some raw materials. In turn, this led to increases in both direct and indirect costs. |
The company's transport fleet is used mainly for customer deliveries, with spare capacity sold to third parties when possible. External demand saw an improvement compared with last year and the additional income covered much of the increased costs of fuel and other fleet operating expenses. |
There were continuing difficulties in recruiting direct labour operatives and in obtaining agency labour. To attract and retain talented direct labour, the bonus schemes introduced last year were extended where possible, giving the opportunity for experienced operatives to earn significantly more than the national minimum wage. |
Overall, the company achieved an EBITDA of £43,000 (negative), compared with £89,000 (positive) last year. This is considered to be an acceptable performance in the circumstances. |
The company has maintained tight control of cash and working capital throughout the year. A weekly cash forecast, with a 13-week time horizon, is monitored daily and updated every week. As a result of these controls, the company has continued to operate with in-hand cash balances throughout the year. |
NORMAL BUSINESS RISKS AND UNCERTAINTIES |
Extremes of weather can have a significant impact on the quality and availability of fresh produce processed by the company. To mitigate this risk and the potential impact on financial performance, the company uses a number of produce growers, both in the UK and overseas. A key supplier is a related company, T Hammond Farms Limited, which grows fresh produce on a number of separate areas of farmland, each with different growing characteristics, and it has extensive irrigation facilities for periods of low rainfall. In addition, Hammond Produce Limited operates medium-term cold storage facilities. |
Customer demand fluctuates depending upon the season of the year, any supermarket promotional activities, changes in the weather and any changes in the needs of end-consumers. The business works in partnership with its customers to understand their requirements and to manage demand where feasible. The company sells a range of fresh produce to spread demand across the year and to avoid over-reliance on a single type of produce. |
The production process is labour intensive and requires suitably skilled people. The business employs a core workforce of directly employed staff and works in partnership with agency labour providers which supply additional staff during periods of high demand. |
DEVELOPMENT, PERFORMANCE AND POSITION |
During the year, the company has introduced additional bonus schemes, with the aim of both improving productivity and improving the take home pay of both employees and agency workers. These bonus schemes have been supported by improved systems to monitor and record production volumes, both with field harvest operatives and staff working on the main production lines. |
Throughout the year the business has continued to develop and improve the knowledge and skills of the senior management team, through training, recruitment, external coaching and mentoring. The business continues to be focused on improving profitability whilst strengthening key relationships with both customers and suppliers. |
KEY PERFORMANCE INDICATORS |
Produce yields and the financial margin per tonne are monitored each month, together with direct labour utilisation and labour costs per tonne. This is used to ensure the company is achieving consistently high output and efficiencies, together with acceptable margins. Customer quality issues are also monitored to ensure the company's products meet the demands of the end-consumer. |
Hammond Produce Limited (Registered number: 03776727) |
Strategic Report |
for the Period 27 February 2022 to 25 February 2023 |
FUTURE PROSPECTS |
The cost of fuel, energy, packaging and most key raw materials have stabilised in recent months, although remaining higher than before the invasion of Ukraine. UK crops of carrot and savoy were damaged by heavy spring frosts, reducing the availability of fresh produce. From April, the company has been importing more fresh produce than in the past. Sales of rhubarb have been buoyant. |
The company started the current financial year with in-hand cash balances of £336,000 (last year: £365,000) and net current assets of £949,000 (last year: £996,000). The business is funded by a combination of cash generated through operations and seasonal borrowings from other members of the Grovetree group These funding lines have proven to be sufficient in the past, with adequate headroom to deal with seasonal cash requirements. There is no indication that headroom will worsen significantly in the coming year. |
In preparing the accounts for the year ended 25 February 2023, the directors have considered the trading and financial position of the company since the end of the period and are confident that the company will have a sufficient level of activity and sufficient cash resources to remain a going concern for the following 12 months. |
ON BEHALF OF THE BOARD: |
Hammond Produce Limited (Registered number: 03776727) |
Report of the Directors |
for the Period 27 February 2022 to 25 February 2023 |
The directors present their report with the financial statements of the company for the 52-week period from 27 February 2022 to 25 February 2023. |
DIVIDENDS |
No dividends will be distributed for the period ended 25 February 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 27 February 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Hammond Produce Limited |
Opinion |
We have audited the financial statements of Hammond Produce Limited (the 'company') for the period ended 25 February 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 25 February 2023 and of its loss 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. |
Basis for opinion |
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 Auditors' 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Hammond Produce Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. 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). |
In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework. |
- We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance. |
We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
- Substantive procedures performed in accordance with the ISAs (UK). |
- Challenging assumptions and judgments made by management in its significant accounting estimates. |
- Identifying and testing journal entries, in particular material journal entries and an assessment of year end journals. |
- Assessing the extent of compliance with the relevant laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our 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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants & Business Advisers |
15 Newland |
Lincoln |
Lincolnshire |
LN1 1XG |
Hammond Produce Limited (Registered number: 03776727) |
Income Statement |
for the Period 27 February 2022 to 25 February 2023 |
Period | Period |
27.2.22 to 25.2.23 | 28.2.21 to 26.2.22 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
2,261,462 | 1,969,729 |
OPERATING (LOSS)/PROFIT | 4 | ( |
) |
Interest payable and similar expenses | 5 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 6 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL PERIOD | ( |
) |
Hammond Produce Limited (Registered number: 03776727) |
Balance Sheet |
25 February 2023 |
2023 | 2022 |
Notes | £ | £ |
CURRENT ASSETS |
Stocks | 7 |
Debtors | 8 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 9 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 10 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Hammond Produce Limited (Registered number: 03776727) |
Statement of Changes in Equity |
for the Period 27 February 2022 to 25 February 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 28 February 2021 | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 26 February 2022 | ( |
) |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 25 February 2023 | ( |
) |
Hammond Produce Limited (Registered number: 03776727) |
Notes to the Financial Statements |
for the Period 27 February 2022 to 25 February 2023 |
1. | STATUTORY INFORMATION |
Hammond Produce Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with the Financial Reporting Standard 102. 'The Financial Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
At 25 February 2023, the Company had negative retained earnings of £1,276,000 (2022: £1,239,000) but positive shareholders funds of £924,000 (2022: £961,000). The directors are satisfied that the going concern basis used to prepare the accounts is appropriate, as the Company has the financial and operational support of the Parent entity and its shareholders. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the period 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. |
Current or deferred taxation assets and liabilities are not discounted. |
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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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 period end and that are expected to apply to the reversal of the timing difference. |
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. |
Foreign currencies |
Monetary assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet 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 profit. |
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. |
Hammond Produce Limited (Registered number: 03776727) |
Notes to the Financial Statements - continued |
for the Period 27 February 2022 to 25 February 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
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 entity after deducting all of its financial liabilities. |
Where the contractual obligation of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited to equity. |
Leasing commitments |
Rentals applicable to operating leases where substantially all the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. |
3. | EMPLOYEES AND DIRECTORS |
Period | Period |
27.2.22 | 28.2.21 |
to | to |
25.2.23 | 26.2.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period | Period |
27.2.22 | 28.2.21 |
to | to |
25.2.23 | 26.2.22 |
Production | 60 | 56 |
Administration | 15 | 15 |
Period | Period |
27.2.22 | 28.2.21 |
to | to |
25.2.23 | 26.2.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Hammond Produce Limited (Registered number: 03776727) |
Notes to the Financial Statements - continued |
for the Period 27 February 2022 to 25 February 2023 |
4. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging: |
Period | Period |
27.2.22 | 28.2.21 |
to | to |
25.2.23 | 26.2.22 |
£ | £ |
Auditors' remuneration |
Operating leases |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period | Period |
27.2.22 | 28.2.21 |
to | to |
25.2.23 | 26.2.22 |
£ | £ |
Other interest |
6. | TAXATION |
Analysis of the tax credit |
The tax credit on the loss for the period was as follows: |
Period | Period |
27.2.22 | 28.2.21 |
to | to |
25.2.23 | 26.2.22 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Tax on (loss)/profit | ( |
) |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period | Period |
27.2.22 | 28.2.21 |
to | to |
25.2.23 | 26.2.22 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Adjustment in respect of tax losses carried forward | - | (16,905 | ) |
Total tax credit | (8,054 | ) | - |
Hammond Produce Limited (Registered number: 03776727) |
Notes to the Financial Statements - continued |
for the Period 27 February 2022 to 25 February 2023 |
7. | STOCKS |
2023 | 2022 |
£ | £ |
Stocks |
Raw materials |
8. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
VAT |
Deferred tax asset |
Prepayments and accrued income |
9. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 11) |
Trade creditors |
Social security and other taxes |
Other creditors |
Directors' current accounts | 29,275 | 19,488 |
Accruals and deferred income |
10. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 11) |
11. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between two and five years: |
Bank loans |
Hammond Produce Limited (Registered number: 03776727) |
Notes to the Financial Statements - continued |
for the Period 27 February 2022 to 25 February 2023 |
12. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
13. | DEFERRED TAX |
£ |
Balance at 27 February 2022 | ( |
) |
Balance at 25 February 2023 | ( |
) |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100,002 | 100,002 |
Preference share | £1 | 2,100,000 | 2,100,000 |
2,200,002 | 2,200,002 |
15. | RESERVES |
Retained |
earnings |
£ |
At 27 February 2022 | ( |
) |
Deficit for the period | ( |
) |
At 25 February 2023 | ( |
) |
Hammond Produce Limited (Registered number: 03776727) |
Notes to the Financial Statements - continued |
for the Period 27 February 2022 to 25 February 2023 |
16. | RELATED PARTY DISCLOSURES |
Nature of related parties |
Hammond Produce Limited (the "Company") is a wholly-owned subsidiary of Grovetree Limited ("Grovetree"). Grovetree owns 90.4% of the ordinary shares in Phoenix Farm Group Limited ("PFGL"), which in turn owns and controls all the ordinary shares in Phoenix Speciality Oils Limited ("PSOL") and Hammond Food Oils Limited ("HFOL"). Mr J W Hammond and Mr A E Hammond, directors and owners of the ordinary shares in Grovetree, also own all the ordinary shares in T Hammond Farms Limited ("THFL"), which farms on approximately 2,400 acres in Nottinghamshire, growing vegetables, potatoes, wheat, maize, barley and oilseed rape. In accordance with paragraph 33.1A of FRS102, no disclosure is given in relation to transactions between the Company and Grovetree or those subsidiaries that were wholly-owned by Grovetree throughout the period. |
Sales made between related parties |
The following sales have been made during the period: |
- The Company has sold goods and services to PSOL and HFOL, amounting in total to £173,439 (2022: £211,427). |
- The Company has also sold goods and services to THFL, amounting in total to £447,450 (2022: £368,110). |
- PSOL and HFOL have sold goods and services to the Company, amounting in total to £985 (2022: £26,062). |
- THFL has sold fresh produce, other items and services to the Company amounting in total to £2,131,388 (2022: £1,438,537). THFL has also rented plant and sub-let certain buildings to the Company, charging a total rent of £258,403 (2022: £229,824). |
Outstanding balances at 25 February 2023 |
The following intercompany balances existed as at 25 February 2023, deriving both from the above transactions and from transactions entered into in previous years: |
- The Company was owed £28,302 (2022: £32,584) in total by PSOL and HFOL. |
- The Company owed £149,676 to THFL (2022: £92,115). |
17. | ULTIMATE CONTROLLING PARTY |
The directors consider that the Ultimate controlling party of this company is its parent company Grovetree Limited. |
Grovetree Limited is the company's controlling related party by virtue of its ownership of the entire issued share capital of Hammond Produce Limited. The ultimate controlling related parties of the company are the directors JW Hammond and AE Hammond by virtue of their respective shareholdings in Grovetree Limited. |