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Registration number: 01244279

G.H. Chennells (Farms) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2018

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 9

 

G.H. Chennells (Farms) Limited

Company Information

Directors

M G Chennells

A C Chennells

P E Chennells

G H Chennells (non-executive)

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

Accountants

Atkinson Saul Fairholm Limited
21A Newland
Lincoln
LN1 1XP

 

G.H. Chennells (Farms) Limited

(Registration number: 01244279)
Balance Sheet as at 31 March 2018

Note

2018
£

2017
£

Fixed assets

 

Tangible assets

4

1,335,327

1,476,217

Current assets

 

Stocks

5

2,676,976

2,543,959

Debtors

6

2,033,722

2,371,752

Cash at bank and in hand

 

3,041

2,440

 

4,713,739

4,918,151

Creditors: Amounts falling due within one year

7

(3,677,559)

(3,659,616)

Net current assets

 

1,036,180

1,258,535

Total assets less current liabilities

 

2,371,507

2,734,752

Creditors: Amounts falling due after more than one year

7

(1,199,110)

(1,326,771)

Provisions for liabilities

(132,893)

(148,766)

Net assets

 

1,039,504

1,259,215

Capital and reserves

 

Called up share capital

8,300

8,300

Share premium reserve

4,800

4,800

Profit and loss account

1,026,404

1,246,115

Total equity

 

1,039,504

1,259,215

For the financial year ending 31 March 2018 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 2018

Approved and authorised by the Board on 7 June 2018 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 2018

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 7 June 2018.

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.

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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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.

 

G.H. Chennells (Farms) Limited

Notes to the Financial Statements for the Year Ended 31 March 2018

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.

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.

 

G.H. Chennells (Farms) Limited

Notes to the Financial Statements for the Year Ended 31 March 2018

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.
 
 

3

Staff numbers

The average number of persons employed by the company (including directors with contracts of employment) during the year was 24 (2017 - 26).

 

G.H. Chennells (Farms) Limited

Notes to the Financial Statements for the Year Ended 31 March 2018

4

Tangible assets

Motor vehicles
 £

Other property, plant and equipment
 £

Total
£

Cost or valuation

At 1 April 2017

219,769

5,626,606

5,846,375

Additions

-

465,456

465,456

Disposals

-

(344,844)

(344,844)

At 31 March 2018

219,769

5,747,218

5,966,987

Depreciation

At 1 April 2017

108,663

4,261,495

4,370,158

Charge for the year

7,431

446,827

454,258

Eliminated on disposal

-

(192,756)

(192,756)

At 31 March 2018

116,094

4,515,566

4,631,660

Carrying amount

At 31 March 2018

103,675

1,231,652

1,335,327

At 31 March 2017

111,106

1,365,111

1,476,217

5

Stocks

2018
£

2017
£

Stocks and growing crop value

2,676,976

2,543,959

6

Debtors

Note

2018
£

2017
£

Trade debtors

 

561,477

1,093,708

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

9

1,103,693

957,812

Prepayments

 

180,045

88,262

Other debtors

 

188,507

231,970

 

2,033,722

2,371,752

 

G.H. Chennells (Farms) Limited

Notes to the Financial Statements for the Year Ended 31 March 2018

7

Creditors

Creditors: amounts falling due within one year

Note

2018
£

2017
£

Due within one year

 

Loans and borrowings

8

1,843,797

1,899,879

Trade creditors

 

1,153,537

1,171,175

Taxation and social security

 

13,522

33,569

Other creditors

 

666,703

554,993

 

3,677,559

3,659,616

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £1,843,797 (2017 - £1,899,879).

Creditors: amounts falling due after more than one year

Note

2018
£

2017
£

Due after one year

 

Loans and borrowings

8

1,199,110

1,326,771

2018
£

2017
£

Due after more than five years

After more than five years by instalments

327,171

516,333

-

-

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £1,199,110 (2017 - £1,326,771).

8

Loans and borrowings

2018
£

2017
£

Non-current loans and borrowings

Bank borrowings

985,171

1,146,333

Finance lease liabilities

213,939

180,438

1,199,110

1,326,771

 

G.H. Chennells (Farms) Limited

Notes to the Financial Statements for the Year Ended 31 March 2018

2018
£

2017
£

Current loans and borrowings

Bank borrowings

159,000

250,009

Bank overdrafts

1,490,304

1,501,068

Finance lease liabilities

194,493

148,802

1,843,797

1,899,879

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 £1,103,693 (2017 - £957,812).

 

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.