The Darlington Farmers Auction Mart Company Limited - Period Ending 2019-12-31
The Darlington Farmers Auction Mart Company Limited - Period Ending 2019-12-31
Registration number:
The Darlington Farmers Auction Mart Company Limited
for the Year Ended 31 December 2019
The Darlington Farmers Auction Mart Company Limited
Contents
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Company Information |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Income Statement |
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Statement of Comprehensive Income |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
The Darlington Farmers Auction Mart Company Limited
Company Information
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Directors |
J P P Allison G T Lentilo P A G Monkhouse M P Gilhespy M P Dent S Catterall P Coates S M Ferrie P L Gentry |
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Registered office |
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Auditor |
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The Darlington Farmers Auction Mart Company Limited
Directors' Report for the Year Ended 31 December 2019
The directors present their report and the financial statements for the year ended 31 December 2019.
Directors of the company
The directors who held office during the year were as follows:
A Armstrong (resigned 22 November 2019)
J P P Allison (appointed 3 August 2019)
J E Beadle (resigned 3 August 2019)
E Blacklock (resigned 3 August 2019)
J A Ward (resigned 3 August 2019)
G T Lentilo (appointed 12 August 2019)
P A G Monkhouse (resigned 10 June 2019 and reappointed 20 September 2019)
M P Gilhespy (appointed 1 August 2019)
M P Dent (appointed 1 August 2019)
R Hesseltine (resigned 22 November 2019)
P Coates (appointed 12 August 2019)
J J Allison (appointed 3 August 2019 and resigned 12 September 2019)
J A Grieves (resigned 3 August 2019)
T D Johnson (resigned 3 August 2019)
S M Ferrie (appointed 3 August 2019)
S Catterall (resigned 12 June 2019)
The following directors were reappointed after the year end:
S Catterall (reappointed 10 March 2020)
The following directors were appointed after the year end:
P L Gentry (appointed 20 April 2020)
Principal activity
The principal activity of the company is the auction of cattle and other farm animals and supplies.
The Darlington Farmers Auction Mart Company Limited
Directors' Report for the Year Ended 31 December 2019 (continued)
Going concern
The company meets its day to day working capital requirements through cash generated from operations and the use of an overdraft facility. The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This also considers the effectiveness of available measures to assist in mitigating the impact.
Although the forecasts prepared taking account of the matters above support the ability of the company to remain a going concern and to be able to trade and meets its debts as they fall due, the full impact of COVID-19, the continued level of government support and the underlying trading assumptions used in forecasting are extremely judgemental and difficult to predict and could be subject to significant variation.
Based on the factors set out above the directors believe that there is no material uncertainty in relation to going concern and that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of MHA Tait Walker as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Small companies' provision statement
This report has 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.
Approved by the
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The Darlington Farmers Auction Mart Company Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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:
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• |
select suitable accounting policies and apply them consistently; |
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• |
make judgements and accounting estimates that are reasonable and prudent; |
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• |
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.
The Darlington Farmers Auction Mart Company Limited
Independent Auditor's Report to the Members of The Darlington Farmers Auction Mart Company Limited
Opinion
We were engaged to audit the financial statements of The Darlington Farmers Auction Mart Company Limited (the 'company') for the year ended 31 December 2019, which comprise the Income Statement, Statement of Comprehensive Income, Statement of Financial Position, 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 FRS 102 Section 1A 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We do not express an opinion on the accompanying financial statements of the Company. Because of the significance of the matters described in the Basis for Disclaimer of Opinion section of our report, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
Basis for qualified opinion on financial statements
Qualified opinion on financial statements
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2019 and of its loss for the year 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 Disclaimer of Opinion
During our audit of the Company for the year ended 31 December 2019 the Directors made us aware of allegations and further suspicion of inappropriate financial activity within the company. These allegations potentially involve the misappropriation and misuse of company funds over a number of years. It has also come to our attention that the historical accounting records of the company for the period up to 31 December 2018 may be incomplete owing to data loss. As of the date of our report the directors were investigating this issue and have yet to determine the extent of this alleged / suspected activity and its financial impact on the company. As such we were unable to determine the nature and amount of any adjustment which might be necessary to reflect the full impact of this matter and any loss which may have been sustained by the company in its financial statements.
Opinion on other matter prescribed by the Companies Act 2006
Notwithstanding our disclaimer of an opinion on the view given by the financial statements, in our opinion, based on the work undertaken in the course of the audit:
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• |
the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Directors' Report has been prepared in accordance with applicable legal requirements. |
The Darlington Farmers Auction Mart Company Limited
Independent Auditor's Report to the Members of The Darlington Farmers Auction Mart Company Limited (continued)
Matters on which we are required to report by exception
Notwithstanding our disclaimer of an opinion on the financial statements, in the light of our knowledge and understanding of the company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the Directors' Report.
Arising from the limitation of our work referred to above:
• we have not obtained all the information and explanation that we considered necessary for the purpose of our audit; and
• we were unable to determine whether adequate accounting records have been kept.
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; or |
• | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities (set out on page 4), 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 is 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.
The Darlington Farmers Auction Mart Company Limited
Independent Auditor's Report to the Members of The Darlington Farmers Auction Mart Company Limited (continued)
Auditor’s 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 an auditor’s report 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.
Our responsibility is to conduct an audit of the company’s financial statements in accordance
with International Standards on Auditing (UK) and to issue an auditor’s report.
However, because of the matter described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements.
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 the provisions available for small entities, in the circumstances set out in note 2 to the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
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 an auditor’s report 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
Chartered Accountants
Statutory Auditor
Bulman House
Regent Centre
Newcastle upon Tyne
NE3 3LS
MHA Tait Walker is a trading name of Tait Walker LLP.
The Darlington Farmers Auction Mart Company Limited
Income Statement for the Year Ended 31 December 2019
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Note |
2019 |
Restated |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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|
|
|
Administrative expenses |
( |
( |
|
|
Profit/(loss) on disposal of freehold property |
- |
5,256,912 |
|
|
Other operating income |
|
|
|
|
Operating (loss)/profit |
( |
|
|
|
Income from shares in group undertakings |
|
|
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar expenses |
( |
( |
|
|
(Loss)/profit before tax |
( |
|
|
|
Taxation |
|
( |
|
|
(Loss)/profit for the financial year |
( |
|
The above results were derived from continuing operations.
The Darlington Farmers Auction Mart Company Limited
Statement of Comprehensive Income for the Year Ended 31 December 2019
|
2019 |
Restated |
|
|
(Loss)/profit for the year |
( |
|
|
Surplus/(deficit) on revaluation of investment property |
( |
- |
|
Surplus/(deficit) on disposal of revaluation reserve |
- |
( |
|
(163,000) |
(174,330) |
|
|
Total comprehensive income for the year |
( |
|
The Darlington Farmers Auction Mart Company Limited
(Registration number: 00212585)
Statement of Financial Position as at 31 December 2019
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Note |
2019 |
Restated |
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Fixed assets |
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Tangible assets |
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Investment property |
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Investments |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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|
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Revaluation reserve |
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Fair value reserve |
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|
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Profit and loss account |
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|
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Total equity |
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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.
Approved and authorised by the
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The Darlington Farmers Auction Mart Company Limited
Statement of Changes in Equity for the Year Ended 31 December 2019
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Share capital |
Share premium |
Revaluation reserve |
Other reserves |
Profit and loss account |
|
|
At 1 January 2018 |
|
|
|
|
|
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Prior period adjustment |
- |
- |
|
- |
( |
|
At 1 January 2018 (As restated) |
|
|
|
|
|
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Profit for the year |
- |
- |
- |
- |
|
|
Other comprehensive income |
- |
- |
( |
- |
- |
|
Total comprehensive income |
- |
- |
( |
- |
|
|
Dividends |
- |
- |
- |
- |
( |
|
At 31 December 2018 |
|
|
|
|
|
|
Total |
|
|
At 1 January 2018 |
|
|
Prior period adjustment |
( |
|
At 1 January 2018 (As restated) |
|
|
Profit for the year |
|
|
Other comprehensive income |
( |
|
Total comprehensive income |
|
|
Dividends |
( |
|
At 31 December 2018 |
|
|
Share capital |
Share premium |
Revaluation reserve |
Other reserves |
Profit and loss account |
|
|
At 1 January 2019 |
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
- |
( |
|
Other comprehensive income |
- |
- |
- |
( |
- |
|
Total comprehensive income |
- |
- |
- |
( |
( |
|
Dividends |
- |
- |
- |
- |
( |
|
At 31 December 2019 |
|
|
|
|
|
The Darlington Farmers Auction Mart Company Limited
Statement of Changes in Equity for the Year Ended 31 December 2019 (continued)
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Total |
|
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At 1 January 2019 |
|
|
Loss for the year |
( |
|
Other comprehensive income |
( |
|
Total comprehensive income |
( |
|
Dividends |
( |
|
At 31 December 2019 |
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The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is
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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.
These financial statements are prepared in sterling which is the functional currency of the entity.
Group accounts not prepared
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
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2 |
Accounting policies (continued) |
Going concern
The company meets its day to day working capital requirements through cash generated from operations and the use of an overdraft facility. The company’s forecasts and projections for the next twelve months show that the company should be able to continue in operational existence for that period, taking into account reasonable possible changes in trading performance and the potential impact on the business of possible future scenarios arising from the impact of COVID-19. This also considers the effectiveness of available measures to assist in mitigating the impact.
Although the forecasts prepared taking account of the matters above support the ability of the company to remain a going concern and to be able to trade and meets its debts as they fall due, the full impact of COVID-19, the continued level of government support and the underlying trading assumptions used in forecasting are extremely judgemental and difficult to predict and could be subject to significant variation.
Based on the factors set out above the directors believe that there is no material uncertainty in relation to going concern and that the company has adequate financial resources to continue in operational existence for at least twelve months from the date of signing the financial statements and therefore the directors believe it remains appropriate to prepare the financial statements on a going concern basis.
Revenue recognition
Turnover represents the invoiced amount of commissions (stated net of value added tax).
Tax
The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a charge 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.
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
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2 |
Accounting policies (continued) |
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. For freehold and leasehold property, cost refers to the 'deemed cost' on the date of transition to FRS 102 (1 October 2013). From this date revaluations were no longer performed.
On the subsequent sale of a revalued asset, the attributable revaluation surplus remaining in the revaluation reserve is transferred directly to retained earnings. The movement in deferred tax arising from the revaluation of properties will be included in other comprehensive income.
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:
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Asset class |
Depreciation method and rate |
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Freehold property |
5% straight line |
|
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Leasehold property |
5% straight line |
|
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Plant and machinery |
10% straight line |
|
|
Fixtures and fittings |
25% straight line |
|
|
Motor vehicles |
25% straight line |
Investment property
Deferred taxation is provided on the future gains on investment properties at the rate expected to apply when the properties are sold.
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
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2 |
Accounting policies (continued) |
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.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs.
The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
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 valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.
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.
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
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2 |
Accounting policies (continued) |
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 Income Statement 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 in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
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 Statement of Financial Position as a finance lease obligation.
Lease payments are apportioned between finance costs in the Income Statement 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.
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
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2 |
Accounting policies (continued) |
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.
|
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
|
Auditors' remuneration |
|
2019 |
Restated |
|
|
Audit of the financial statements |
|
|
|
Loss/profit before tax |
Arrived at after charging/(crediting)
|
2019 |
Restated |
|
|
Depreciation expense |
|
|
|
Operating lease expense - plant and machinery |
|
|
|
Operating lease expense - other |
9,835 |
11,783 |
|
Loss on disposal of property, plant and equipment |
|
|
|
Profit/(loss) on disposal of freehold property |
- |
(5,256,912) |
The profit in 2019 relates to the disposal of land at Neasham Road to Darlington Borough Council. The profit also includes income from surrendering the tenancy at Clifton Road.
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
|
Tangible assets |
|
Land and buildings |
Long leasehold land and buildings |
Properties under construction |
Fixtures and fittings |
Plant and machinery |
|||
|
Cost or valuation |
|||||||
|
At 1 January 2019 |
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|
|
|
|
||
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Additions |
- |
- |
|
|
|
||
|
Disposals |
- |
- |
- |
- |
( |
||
|
Transfers |
- |
- |
- |
- |
( |
||
|
At 31 December 2019 |
|
|
|
|
|
||
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Depreciation |
|||||||
|
At 1 January 2019 |
|
|
- |
|
|
||
|
Charge for the year |
|
|
- |
|
|
||
|
Eliminated on disposal |
- |
- |
- |
- |
( |
||
|
Transfers |
- |
- |
- |
- |
( |
||
|
At 31 December 2019 |
|
|
- |
|
|
||
|
Carrying amount |
|||||||
|
At 31 December 2019 |
|
|
|
|
|
||
|
At 31 December 2018 |
|
|
|
|
|
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The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
|
6 |
Tangible assets (continued) |
|
Motor vehicles |
Restated |
||||||
|
Cost or valuation |
|||||||
|
At 1 January 2019 |
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|
|||||
|
Additions |
|
|
|||||
|
Disposals |
( |
( |
|||||
|
Transfers |
|
- |
|||||
|
At 31 December 2019 |
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|
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Depreciation |
|||||||
|
At 1 January 2019 |
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|
|||||
|
Charge for the year |
|
|
|||||
|
Eliminated on disposal |
( |
( |
|||||
|
Transfers |
|
- |
|||||
|
At 31 December 2019 |
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|
|||||
|
Carrying amount |
|||||||
|
At 31 December 2019 |
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|
|||||
|
At 31 December 2018 |
|
|
|||||
Included in the cost or valuation of the freehold land and buildings is freehold land of £1,481,250 (2018 - £1,481,250) which is not depreciated.
Revaluation
The fair value of the company's Freehold property was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
|
Investment properties |
|
2019 |
|
|
At 1 January |
|
|
Fair value adjustments |
( |
|
At 31 December |
|
The fair value of the company's investment property was revalued on 31 December 2019 by GSC Grays, an independent valuer.
The valuations have been carried out in accordance with the Royal Institution of Chartered Surveyors Valuation Guidance as set out within the 2019 Global Standards and with particular reference to the local Professional Standards - UK, also known as the "Red Book".
|
Investments |
|
2019 |
Restated |
|
|
Investments in subsidiaries |
|
|
|
Subsidiaries |
£ |
|
Cost or valuation |
|
|
At 1 January 2019 |
|
|
Disposals |
( |
|
At 31 December 2019 |
|
|
Provision |
|
|
Carrying amount |
|
|
At 31 December 2019 |
|
|
At 31 December 2018 |
|
On 15 November 2019, the company disposed of its investment in Inspire Solutions Limited. The value of this investment at the date of disposal was £100.
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
|
8 |
Investments (continued) |
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
|
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
|
2019 |
2018 |
|||
|
Subsidiary undertakings |
||||
|
|
Bank Top Mart, Clifton Road, Darlington, County Durham, DL1 5DU |
Ordinary |
|
|
|
England and Wales |
||||
|
|
7 Newgate, Barnard Castle, DL12 8NQ |
Ordinary |
|
|
|
England and Wales |
||||
|
|
Victoria Building, 14 Elwin Lane, Darlington, United Kingdom, DL1 5RX |
Ordinary |
|
|
|
England and Wales |
||||
|
Subsidiary undertakings |
|
T H Vickers Limited The principal activity of T H Vickers Limited is |
|
Inspire Solutions Limited The principal activity of Inspire Solutions Limited is |
|
D J Developments (North East) Limited The principal activity of D J Developments (North East) Limited is |
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
|
Stocks |
|
2019 |
Restated |
|
|
Other inventories |
|
|
|
Debtors |
|
Note |
2019 |
Restated |
|
|
Trade debtors |
|
|
|
|
Amounts owed by group undertakings |
|
|
|
|
Prepayments |
|
|
|
|
Other debtors |
|
- |
|
|
|
|
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
|
Creditors |
Creditors: amounts falling due within one year
|
Note |
2019 |
Restated |
|
|
Due within one year |
|||
|
Bank loans and overdrafts |
|
|
|
|
Trade creditors |
|
|
|
|
Taxation and social security |
|
|
|
|
Accruals and deferred income |
|
|
|
|
Other creditors |
|
|
|
|
Corporation tax liability |
- |
93,406 |
|
|
|
|
Creditors: amounts falling due after more than one year
|
Note |
2019 |
Restated |
|
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
2019 |
Restated |
|
|
After more than five years by instalments |
212,870 |
402,090 |
|
- |
- |
|
Loans and borrowings |
|
2019 |
Restated |
|
|
Current loans and borrowings |
||
|
Bank borrowings |
|
|
|
Bank overdrafts |
|
- |
|
Hire Purchase and finance lease liabilities |
22,094 |
20,101 |
|
|
|
|
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
|
12 |
Loans and borrowings (continued) |
|
2019 |
Restated |
|
|
Non-current loans and borrowings |
||
|
Bank borrowings |
|
|
|
Hire purchase and finance lease liabilities |
25,359 |
22,382 |
|
|
|
|
Bank borrowings
|
A first legal charge from the the Darlington Farmers Auction Mart Company Limited over freehold property at Humbleton Farm, Darlington; a first legal charge from the the Darlington Farmers Auction Mart Company Limited over freehold property at Holdforth Grange & Neesham Rd; a first legal charge from the the Darlington Farmers Auction Mart Company Limited over freehold property at 44 Clifton Road, Darlington; and an unlimited debenture from The Darlington Farmers Auction Mart Company Limited. |
Included in the loans and borrowings are the following amounts due after more than five years:
Bank loans and overdrafts after five years
Business loan agreement is denominated in sterling with a nominal interest rate of base rate +1.75%, and the final instalment is due on 1 June 2030.
|
Reserves |
The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:
|
Other reserves |
Total |
|
|
Surplus/(deficit) on revaluation of investment property |
( |
( |
The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:
|
Revaluation reserve |
Total |
|
|
Surplus/(deficit) on disposal of revaluation reserve |
( |
( |
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
|
Dividends |
Interim dividends paid
|
2019 |
Restated |
|||
|
Interim dividend of £ |
|
|
||
|
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the statement of financial position is £
|
Related party transactions |
A J Armstrong is a related party by virtue of being a director. During the year A J Armstrong paid commissions totalling £33 (2018 - £nil). At the year end the balance outstanding, included in debtors, was £nil (2018 - £nil).
Allison Devereux Farms is a related party by virtue of being under the control of director, J P P Allison. During the year Allison Devereux Farms paid commissions totalling £2,789 (2018 - £nil). At the year end the balance outstanding, included in debtors, was £nil (2018 - £nil).
E Blacklock is a related party by virtue of being a director. During the year E Blacklock paid commissions totalling £nil (2018 - £7,990). At the year end the balance outstanding, included in debtors, was £nil (2018 - £nil).
E W Grieves is a related party by virtue of being under the control of a director, J A Grieves. During the year E W Grieves paid commissions totalling £2,401 (2018 - £4,463). At the year end the balance outstanding, included in debtors, was £nil (2018 - £nil).
Event and Show Solutions Ltd is a related party by virtue of being under the control of a director, A Armstrong. During the year Event and Show Solutions Ltd paid commissions totalling £228 (2018 - £570) and purchases totalling £5,537 (2018 - £7,610). At the year end the balance outstanding, included in debtors, was £nil (2018 - £nil).
Gerard Ti Lentilo is a related party by virtue of being a director. During the year Gerard Ti Lentilo paid commissions totalling £208 (2018 - £nil). At the year end the balance outstanding, included in debtors, was £nil (2018 - £nil).
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
|
16 |
Related party transactions (continued) |
J E Beadle & Son is a related party by virtue of being under the control of director, J E Beadle. During the year J E Beadle paid commissions totalling £7,216 (2018 - £nil). At the year end the balance outstanding, included in debtors, was £nil (2018 - £nil).
P Monkhouse Haulage LLP is a related party by virtue of being under the control of a director, P A G Monkhouse. During the year P Monkhouse Haulage paid commissions totalling £1,973 (2018 - £3,868) and purchases totalling £6,954 (2018 - £8,780). At the year end the balance outstanding was £827 (2018 - £nil) included in debtors and £217 (2018 - £nil) included in creditors.
PJ & MP Gilhespy is a related party by virtue of being under the control of director, M P Gilhespy During the year PJ & MP Gilhespy paid commissions totalling £7,216 (2018 - £nil). At the year end the balance outstanding, included in debtors, was £nil (2018 - £nil).
Parking Only Limited is a related party by virtue of being under the control of former directors, A Armstrong and R Hesseltine. During the year Parking Only Limited provided services totalling £nil (2018 - £200,000). At the year end the balance outstanding, included in debtors, was £nil (2018 - £nil).
Phillip Coates LTD is a related party by virtue of being under the control of a director, P Coates. During the year Phillip Coates LTD provided services totalling £17,550 (2018 - £nil). At the year end the balance outstanding, included in creditors, was £5,130 (2018 - £nil).
S & D Ferrie is a related party by virtue of being under the control of director, S M Ferrie. During the year S & D Ferrie paid commissions totalling £771 (2018 - £nil). At the year end the balance outstanding, included in debtors, was £nil (2018 - £nil).
S & J Dent & Sons is a related party by virtue of being under the control of director, M Dent. During the year S & J Dent & Sons paid commissions totalling £2,595 (2018 - £nil). At the year end the balance outstanding, included in debtors, was £nil (2018 - £nil).
T M Ward (Darlington) Ltd is a related party by virtue of being under the control of a director, J A Ward. During the year T Ward Ltd made purchases totalling £32,092 (2018 - £74,833). At the year end the balance outstanding, included in debtors, was £nil (2018 - £nil).
D J Developments (North East) Limited is an associate by virtue of The Darlington Farmers Auction Mart Company Limited owning 45% of the shareholding. During the year, D J Developments (North East) Limited received working capital of £67,148 (2018 - £290,499). At the year end, the balance included in other debtors was £357,647 (2018 - £290,499).
|
Parent and ultimate parent undertaking |
The company is controlled by its shareholders. No individual shareholder, or connected group of shareholders, has majority ownership of the shares.
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
|
Prior year adjustment |
Investment in subsidiary entity
During the year, the company reviewed the accounting treatment in relation to the recognition of the investment in D J Developments (North East) Limited.
The substance of the investment in D J Developments (North East) Limited is that The Darlington Farmers Auction Mart Company Limited provided an interest free, repayable on demand, loan of £291,139 and the investment was the value of the share capital of £45.
In the 2018 accounts the loan was included within investments and the investment in the share capital was not included within the financial statements. The directors believe it is correct to recogise the loan within debtors due within one year.
Impairment of assets under construction
During the year, the company reviewed the assets under construction to identify any incorrectly capitalised costs.
It was identified that costs prior to the year ending 31 December 2017 had been incorrectly classified as assets under construction, and instead should have been shown as a cost in the year they were incurred. The assets under construction costs relate to the new Mart at Humbleton, for which planning permission was not obtained until the year ending 31 December 2018. Therefore, costs incurred before this time should not have been capitalised as, until this date, the project could not have been considered viable.
The directors believe that costs of £1,361,895 should have been expensed in previous years. They therefore believe it is correct to remove these costs from assets under construction and recognise in expenditure.
In a prior year an impairment of assets in the course of construction of £168,889 was incorrectly taken against the revaluation reserve instead of the profit and loss account. Accordingly at 1 January 2018 this has been corrected via a reserves transfer.
Recognition of deferred tax
In prior years deferred tax was not recognised on revaluations of freehold property. Accordingly at 1 January 2018 a deferred tax liability of £21,165 has been recognised, with a corresponding debit being taken to the revaluation reserve.
In the prior year the company recognised a significant profit on disposal of freehold property. Under FRS 102 a deferred tax liability should have been recognised on this disposal but was not. Accordingly a deferred tax liability of £900,183 has been recognised in the prior year - reflected as a charge to the income statement and recognition of a liability.
The net effect of the adjustments made is a reduction in net assets of £1,383,060 at 1 January 2018 and a reduction in net assets of £2,283,243 at 31 December 2018.
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
|
18 |
Prior year adjustment (continued) |
The line by line impact of these adjustments on the prior year balance sheet is shown below.
|
At 1 January |
Adjustment |
Restated |
|
|
Fixed assets |
|||
|
Tangible fixed assets |
3,813,639 |
(1,361,895) |
2,451,744 |
|
Investments |
187,259 |
- |
187,259 |
|
Investment property |
1,755,730 |
- |
1,755,730 |
|
5,756,628 |
(1,361,895) |
4,394,733 |
|
|
Current assets |
|||
|
Stocks |
1,100 |
- |
1,100 |
|
Debtors |
1,701,764 |
- |
1,701,764 |
|
Cash at bank and in hand |
16,204 |
- |
16,204 |
|
1,719,068 |
- |
1,719,068 |
|
|
Creditors: Amounts falling due within one year |
(1,604,638) |
- |
(1,604,638) |
|
Net current assets |
114,430 |
- |
114,430 |
|
Total assets less current liabilities |
5,871,058 |
(1,361,895) |
4,509,163 |
|
Creditors: Amounts falling due after more than one year |
(892,239) |
- |
(892,239) |
|
Provisions for liabilities |
(156,167) |
(21,165) |
(177,332) |
|
Net assets/(liabilities) |
4,822,652 |
(1,383,060) |
3,439,592 |
|
Capital and reserves |
|||
|
Called up share capital |
294,000 |
- |
294,000 |
|
Share premium |
84,450 |
- |
84,450 |
|
Revaluation reserve |
544,620 |
147,724 |
692,344 |
|
Fair value reserve |
1,099,439 |
- |
1,099,439 |
|
Retained earnings |
2,800,143 |
(1,530,784) |
1,269,359 |
|
Total equity |
4,822,652 |
(1,383,060) |
3,439,592 |
The Darlington Farmers Auction Mart Company Limited
Notes to the Financial Statements for the Year Ended 31 December 2019 (continued)
|
18 |
Prior year adjustment (continued) |
|
At 31 December |
Adjustment |
Restated |
|
|
Fixed assets |
|||
|
Tangible fixed assets |
3,709,857 |
(1,361,895) |
2,347,962 |
|
Investments |
477,758 |
(291,094) |
186,664 |
|
Investment property |
1,300,000 |
- |
1,300,000 |
|
5,487,615 |
(1,652,989) |
3,834,626 |
|
|
Current assets |
|||
|
Stocks |
771 |
- |
771 |
|
Debtors |
1,216,824 |
291,139 |
1,507,963 |
|
Cash at bank and in hand |
6,156,137 |
- |
6,156,137 |
|
7,373,732 |
291,139 |
7,664,871 |
|
|
Creditors: Amounts falling due within one year |
(2,116,455) |
(45) |
(2,116,500) |
|
Net current assets |
5,257,277 |
291,094 |
5,548,371 |
|
Total assets less current liabilities |
10,744,892 |
(1,361,895) |
9,382,997 |
|
Creditors: Amounts falling due after more than one year |
(614,884) |
- |
(614,884) |
|
Provisions for liabilities |
(147,884) |
(921,348) |
(1,069,232) |
|
Net assets/(liabilities) |
9,982,124 |
(2,283,243) |
7,698,881 |
|
Capital and reserves |
|||
|
Called up share capital |
294,000 |
- |
294,000 |
|
Share premium |
84,450 |
- |
84,450 |
|
Revaluation reserve |
370,290 |
147,724 |
518,014 |
|
Fair value reserve |
1,099,439 |
- |
1,099,439 |
|
Retained earnings |
8,133,945 |
(2,430,967) |
5,702,978 |
|
Total equity |
9,982,124 |
(2,283,243) |
7,698,881 |