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A A Read Farms Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2017

A A Read Farms Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

A A Read Farms Limited

Company Information

Directors

A A Read C J L Read

Company secretary

A A Read

Registered office

Barr Farm Edlington Horncastle Lincolnshire LN9 5NA

Bankers

HSBC Bank plc 25 High Street Horncastle Lincolnshire LN9 5HR

Page 1

A A Read Farms Limited

(Registration number: 05159146)
Balance Sheet as at 31 March 2017

	Note	2017 £	2016 £
Fixed assets
Tangible assets	5	833,057	899,288
Investments	6	11,000	11,000
		844,057	910,288
Current assets
Stocks	7	313,404	436,430
Debtors	8	186,770	62,942
Cash at bank and in hand		6,940	87,870
		507,114	587,242
Creditors: Amounts falling due within one year	9	(126,155)	(58,835)
Net current assets		380,959	528,407
Total assets less current liabilities		1,225,016	1,438,695
Creditors: Amounts falling due after more than one year	9	(306,738)	(299,965)
Provisions for liabilities		(77,828)	(91,549)
Net assets		840,450	1,047,181
Capital and reserves
Called up share capital		7,100	7,100
Profit and loss account		833,350	1,040,081
Total equity		840,450	1,047,181

For the financial year ending 31 March 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 30 November 2017 and signed on its behalf by:
 

.........................................

A A Read

Director

The notes on pages 3 to 9 form an integral part of these financial statements.

Page 2

A A Read Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

1	General information

The company is a private company limited by share capital incorporated in England and Wales and the company registration number is 05159146.

The address of its registered office is:
Barr Farm
Edlington
Horncastle
Lincolnshire
LN9 5NA

These financial statements were authorised for issue by the Board on 30 November 2017.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in Sterling which is the functional currency of the Company and have been expressed rounded to the nearest pound.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Land and buildings	2% straight line
Tractors and combines	20% and 25% reducing balance
Implements and machinery	20% and 25% reducing balance
Motor vehicles	25% reducing balance

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Sugar beet quota	20% straight line
Land payment entitlements	33% straight line

Page 3

A A Read Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

The basis of valuation is as follows:

Raw materials and consumables are stated at the lower of cost or net realisable value,
Tenantright is calculated by a combination of actual costs incurred and standard costs.
Produce on hand is valued at standard cost.
Livestock is valued at the lower of cost or net realisable value.

The basis of valuation is consistent with previous years.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised at the transaction price.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Page 4

A A Read Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 7 (2016 - 9).

4	Intangible assets

	Sugar beet quotas/BPS entitlements £	Total £
Cost or valuation
At 1 April 2016	32,105	32,105
At 31 March 2017	32,105	32,105
Amortisation
At 1 April 2016	32,105	32,105
At 31 March 2017	32,105	32,105
Carrying amount
At 31 March 2017	-	-

Page 5

A A Read Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

5	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 April 2016	389,223	520,852	31,679	792,951	1,734,705
Additions	-	7,107	-	76,186	83,293
Disposals	-	(3,259)	-	(40,161)	(43,420)
At 31 March 2017	389,223	524,700	31,679	828,976	1,774,578
Depreciation
At 1 April 2016	15,880	363,126	19,599	436,812	835,417
Charge for the year	1,574	32,886	3,021	106,320	143,801
Eliminated on disposal	-	(2,897)	-	(34,800)	(37,697)
At 31 March 2017	17,454	393,115	22,620	508,332	941,521
Carrying amount
At 31 March 2017	371,769	131,585	9,059	320,644	833,057
At 31 March 2016	373,343	157,726	12,080	356,139	899,288

Page 6

A A Read Farms Limited

Notes to the Financial Statements for the Year Ended 31 March 2017

6	Investments

	2017 £	2016 £
Investments in subsidiaries	11,000	11,000