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Registration number: 01244279

G.H. Chennells (Farms) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2017

Atkinson Saul Fairholm Limited
21A Newland
Lincoln
LN1 1XP

 

G.H. Chennells (Farms) Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Financial Statements

4 to 10

 

G.H. Chennells (Farms) Limited

Company Information

Directors

M G Chennells

G H Chennells (non-executive)

A C Chennells

P E Chennells

J J Joel (non-executive)

Company secretary

C F Overton

Registered office

Clay Farm
North Scarle
Lincoln
LN6 9ES

Solicitors

Langleys Solicitors
Olympic House
Doddington Road
Lincoln
LN6 3SE

Bankers

HSBC Bank plc
221 High Street
Lincoln
LN2 1TS

Accountants

Atkinson Saul Fairholm Limited
21A Newland
Lincoln
LN1 1XP

 

G.H. Chennells (Farms) Limited

(Registration number: 01244279)
Balance Sheet as at 31 March 2017

Note

2017
£

2016
£

Fixed assets

 

Tangible assets

4

1,476,217

1,581,358

Current assets

 

Stocks

5

2,543,959

2,615,126

Debtors

6

2,371,752

1,891,757

Cash at bank and in hand

 

2,440

495

 

4,918,151

4,507,378

Creditors: Amounts falling due within one year

7

(3,659,616)

(3,171,863)

Net current assets

 

1,258,535

1,335,515

Total assets less current liabilities

 

2,734,752

2,916,873

Creditors: Amounts falling due after more than one year

7

(1,326,771)

(1,498,188)

Provisions for liabilities

(148,766)

(163,614)

Net assets

 

1,259,215

1,255,071

Capital and reserves

 

Called up share capital

8,300

8,300

Share premium reserve

4,800

4,800

Profit and loss account

1,246,115

1,241,971

Total equity

 

1,259,215

1,255,071

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 Directors' Report and Profit and Loss Account has been taken.

 

G.H. Chennells (Farms) Limited

(Registration number: 01244279)
Balance Sheet as at 31 March 2017

Approved and authorised by the Board on 23 June 2017 and signed on its behalf by:
 

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

M G Chennells

Director

 

G.H. Chennells (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.

The address of its registered office is:
Clay Farm
North Scarle
Lincoln
LN6 9ES

These financial statements were authorised for issue by the Board on 23 June 2017.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

These financial statements for the year ended 31 March 2017 are the first financial statements that comply with FRS 102. The date of transition is 1 April 2015. The transition to FRS 102 has resulted in a small number of changes in accounting policies to those used previously.

The nature of these changes and their impact on opening equity and profit for the comparative period are explained in the notes disclosed below.
 

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.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

G.H. Chennells (Farms) Limited

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

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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

Plant and machinery

10% - 25% reducing balance

Motor vehicles

25% reducing balance

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 initially 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

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

G.H. Chennells (Farms) Limited

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

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 initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

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.

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.

Financial instruments


Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability are charged as interest expense in the profit and loss account.
 
 

 

G.H. Chennells (Farms) Limited

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

3

Staff numbers

The average number of persons employed by the company (including directors with contracts of employment) during the year was 26 (2016 - 28).

 

G.H. Chennells (Farms) Limited

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

4

Tangible assets

Motor vehicles
 £

Other property, plant and equipment
 £

Total
£

Cost or valuation

At 1 April 2016

215,711

5,501,389

5,717,100

Additions

4,058

445,048

449,106

Disposals

-

(319,831)

(319,831)

At 31 March 2017

219,769

5,626,606

5,846,375

Depreciation

At 1 April 2016

98,124

4,037,618

4,135,742

Charge for the year

10,539

454,903

465,442

Eliminated on disposal

-

(231,026)

(231,026)

At 31 March 2017

108,663

4,261,495

4,370,158

Carrying amount

At 31 March 2017

111,106

1,365,111

1,476,217

At 31 March 2016

117,587

1,463,771

1,581,358

5

Stocks

2017
£

2016
£

Stocks and growing crop value

2,543,959

2,615,126

6

Debtors

Note

2017
£

2016
£

Trade debtors

 

1,093,708

663,636

Amounts owed by group undertakings and undertakings in which the company has a participating interest

9

957,812

903,449

Other debtors

 

320,232

324,672

Total current trade and other debtors

 

2,371,752

1,891,757

7

Creditors

 

G.H. Chennells (Farms) Limited

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

Note

2017
£

2016
£

Due within one year

 

Loans and borrowings

8

1,899,879

1,615,927

Trade creditors

 

1,171,175

1,029,138

Taxation and social security

 

33,569

10,349

Other creditors

 

554,993

516,449

 

3,659,616

3,171,863

Due after one year

 

Loans and borrowings

8

1,326,771

1,498,188

2017
£

2016
£

After more than five years by instalments

516,333

710,123

8

Loans and borrowings

2017
£

2016
£

Non-current loans and borrowings

Bank borrowings

1,146,333

1,404,891

Finance lease liabilities

180,438

93,297

1,326,771

1,498,188

2017
£

2016
£

Current loans and borrowings

Bank borrowings

250,009

247,000

Bank overdrafts

1,501,068

1,016,010

Finance lease liabilities

148,802

352,917

1,899,879

1,615,927

9

Related party transactions

Summary of transactions with parent

The company benefits from the use of agricultural land and buildings owned by its parent company, Eagle Hall Estates Limited, for a nominal rent due under a Farm Business Tenancy.

A loan account exists between the company and its parent company. At the year end the balance owed from Eagle Hall Estates Limited was £957,812 (2016 - £903,449).

 

 

G.H. Chennells (Farms) Limited

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

10

Parent and ultimate parent undertaking

The company's immediate parent is Eagle Hall Estates Limited, incorporated in England and Wales, whose registered office address is Clay Farm, North Scarle, Lincoln, LN6 9ES.

 

11

Transition to FRS 102

This is the first year that the company has presented its financial statements under Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council. The financial statements for the year ended 31 March 2016 were prepared under previous UK GAAP. The transition date to FRS 102 is 1 April 2015.

No transitional adjustments to prior year figures are required.