Ben's Farm Shop Limited - Period Ending 2017-06-30

Ben's Farm Shop Limited

Annual Report and Unaudited Financial Statements
Year Ended 30 June 2017

Registration number: 05710308

Ben's Farm Shop Limited

Contents

Company Information	1
Directors' Report	2
Profit and Loss Account	3
Balance Sheet	4 to 5
Statement of Changes in Equity	6
Notes to the Financial Statements	7 to 12

Ben's Farm Shop Limited

Company Information

Directors

J B Watson C E Watson R Watson

Company secretary

C E Watson

Registered office

Hole Farm Buckfastleigh Devon TQ11 0LA

Accountants

Francis Clark LLP Vantage Point Woodwater Park Pynes Hill Exeter EX2 5FD

Page 1

Ben's Farm Shop Limited

Directors' Report

Year Ended 30 June 2017

The directors present their report and the financial statements for the year ended 30 June 2017.

Directors of the company

The directors who held office during the year were as follows:

J B Watson

C E Watson

R Watson (appointed 11 July 2016)

Principal activity

The principal activity of the company is that of manufacturing food, food retail outlets and restaurants.

Business review

The company enjoyed a good year’s trading during which it completed a number of projects and underwent significant changes.

In early 2017 the company rebuilt the shop at Yealmpton whilst at the same time a wine and tapas bar was opened in Totnes. The company has taken a lease on a shop in Exeter, the opening of which is planned for the autumn of 2017.

Trade was hampered significantly at our flagship shop in Staverton when the main road which carries the vast majority of our customers was closed for five weeks during January and February 2017.

The Board feel it right to briefly explain the rationale behind the change in company name which took place at the beginning of September 2016. The company was formerly known as Riverford Farm Shops Limited. As such there was a fundamental difference between this and the other Riverford companies. The other Riverford companies within the same family ownership are wholly organic. Riverford Farm Shops, on the other hand, offered its customers both organic and non-organic food. The primary focus for its customer is on ‘local’ food farmed responsibly whether that be organic or non-organic. Therefore we offer that choice to our customers.

As the Riverford name has become associated with organic food, it was right to make the distinction and so we decided to change the name of the company in an attempt to eliminate any confusion that there may be and put us in a stronger position to build our own brand in the future. The company has undergone a rebrand during the year to 30 June 2017.

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 Board on 30 October 2017 and signed on its behalf by:

.........................................
C E Watson
Company secretary

Page 2

Ben's Farm Shop Limited

Profit and Loss Account

Year Ended 30 June 2017

	Note	2017 £	2016 £
Turnover		6,360,916	6,014,957
Cost of sales		(3,773,449)	(3,542,795)
Gross profit		2,587,467	2,472,162
Administrative expenses		(2,269,436)	(2,177,759)
Operating profit		318,031	294,403
Other exceptional items	4	-	197,000
Other interest receivable and similar income		1,004	1,733
Interest payable and similar expenses		(4,350)	(6,599)
Profit before tax		314,685	486,537
Taxation		(86,310)	(63,722)
Profit for the financial year		228,375	422,815

The notes on pages 7 to 12 form an integral part of these financial statements.

Page 3

Ben's Farm Shop Limited

Balance Sheet

30 June 2017

	Note	2017 £	2016 £
Fixed assets
Intangible assets	5	55,900	-
Tangible assets	6	399,489	354,659
		455,389	354,659
Current assets
Stocks	7	379,370	384,957
Debtors	8	79,990	112,444
Cash at bank and in hand		494,884	542,615
		954,244	1,040,016
Creditors: Amounts falling due within one year	9	(767,645)	(769,942)
Net current assets		186,599	270,074
Total assets less current liabilities		641,988	624,733
Creditors: Amounts falling due after more than one year	9	(66,710)	(87,908)
Provisions for liabilities		(33,500)	(39,000)
Net assets		541,778	497,825
Capital and reserves
Called up share capital		19,778	104,200
Capital redemption reserve		259,322	174,900
Profit and loss account		262,678	218,725
Total equity		541,778	497,825

The notes on pages 7 to 12 form an integral part of these financial statements.

Page 4

Ben's Farm Shop Limited

Balance Sheet

30 June 2017

For the financial year ending 30 June 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 and delivered 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 Board on 30 October 2017 and signed on its behalf by:
 

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

J B Watson

Director

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

C E Watson

Director

Company Registration Number: 05710308

The notes on pages 7 to 12 form an integral part of these financial statements.

Page 5

Ben's Farm Shop Limited

Statement of Changes in Equity

Year Ended 30 June 2017

	Share capital £	Capital redemption reserve £	Profit and loss account £	Total £
At 1 July 2016	104,200	174,900	218,725	497,825
Profit for the year	-	-	228,375	228,375
Total comprehensive income	-	-	228,375	228,375
Dividends	-	-	(100,000)	(100,000)
Purchase of own share capital	-	84,422	(84,422)	-
Other share capital movements	(84,422)	-	-	(84,422)
At 30 June 2017	19,778	259,322	262,678	541,778

	Share capital £	Capital redemption reserve £	Profit and loss account £	Total £
At 1 July 2015	279,100	-	193,190	472,290
Profit for the year	-	-	422,815	422,815
Total comprehensive income	-	-	422,815	422,815
Dividends	-	-	(100,000)	(100,000)
Purchase of own share capital	(322)	174,900	(297,280)	(122,702)
Other share capital movements	(174,578)	-	-	(174,578)
At 30 June 2016	104,200	174,900	218,725	497,825

The notes on pages 7 to 12 form an integral part of these financial statements.

Page 6

Ben's Farm Shop Limited

Notes to the Financial Statements

Year Ended 30 June 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:
Hole Farm
Buckfastleigh
Devon
TQ11 0LA

These financial statements were authorised for issue by the Board on 30 October 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 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', including Section 1A, and the Companies Act 2006. There are no material departures from FRS102.

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.

Change in basis of accounting

The company's financial statements have been prepared in accordance with FRS102 - the Financial Reporting Standard applicable in the UK and Republic of Ireland. The company has transferred from previously extant UK GAAP to FRS102 as at 1 July 2015. There is no material impact on the reported financial position and financial performance.

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 value added tax, returns and discounts.

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.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 7

Ben's Farm Shop Limited

Notes to the Financial Statements

Year Ended 30 June 2017

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
Leasehold property	Straight line over the life of the lease
Equipment	10% and 20% straight line
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
Goodwill	Straight line over 10 years

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. 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.

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.

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.

Page 8

Ben's Farm Shop Limited

Notes to the Financial Statements

Year Ended 30 June 2017

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 84 (2016 - 78).

4	Exceptional items

During the prior year the company sold its name for £197,000.

Page 9

Ben's Farm Shop Limited

Notes to the Financial Statements

Year Ended 30 June 2017

5	Intangible assets

	Goodwill  £	Website costs  £	Total £
Cost or valuation
Additions acquired separately	50,000	8,000	58,000
At 30 June 2017	50,000	8,000	58,000
Amortisation
Amortisation charge	250	1,850	2,100
At 30 June 2017	250	1,850	2,100
Carrying amount
At 30 June 2017	49,750	6,150	55,900

6	Tangible assets

	Short leasehold land and buildings £	Equipment  £	Motor vehicles  £	Total £
Cost or valuation
At 1 July 2016	25,088	1,272,272	33,102	1,330,462
Additions	143,787	105,924	-	249,711
At 30 June 2017	168,875	1,378,196	33,102	1,580,173
Depreciation
At 1 July 2016	24,575	923,177	28,050	975,802
Charge for the year	2,846	198,035	4,001	204,882
At 30 June 2017	27,421	1,121,212	32,051	1,180,684
Carrying amount
At 30 June 2017	141,454	256,984	1,051	399,489
At 30 June 2016	512	349,095	5,052	354,659

7

Stocks

	2017 £	2016 £
Other inventories	379,370	384,957

Page 10

Ben's Farm Shop Limited

Notes to the Financial Statements

Year Ended 30 June 2017

8

Debtors

	2017  £	2016  £
Trade debtors	1,218	66,936
Other debtors	1,155	1,525
Prepayments	77,617	43,983
	79,990	112,444

9

Creditors

	Note	2017  £	2016  £
Due within one year
Loans and borrowings	10	20,505	46,516
Trade creditors		415,096	348,969
Social security and other taxes		41,421	31,962
Other creditors		124,691	49,850
Accrued expenses		74,132	212,345
Corporation tax		91,800	80,300
		767,645	769,942
Due after one year
Loans and borrowings	10	66,710	87,908

	2017 £	2016 £
After more than five years by instalments	17,602	27,810

Page 11

Ben's Farm Shop Limited

Notes to the Financial Statements

Year Ended 30 June 2017

10	Loans and borrowings

	2017 £	2016 £
Current loans and borrowings
Bank borrowings	20,505	19,811
Finance lease liabilities (secured on the assets concerned)	-	26,705
	20,505	46,516

	2017 £	2016 £
Non-current loans and borrowings
Bank borrowings	66,710	87,908

Bank borrowings

Included in the total bank borrowings at the year end is £87,215 (2016 - £107,719) on which the following security has been provided: Fixed and floating charge over the assets of the company. Personal guarantee by Mr J B Watson.

11	Share capital

Allotted, called up and fully paid shares

	2017		2016
	No.	£	No.	£
Ordinary A shares of £1 each	474	474	403	403
Ordinary C shares of £1 each	234	234	275	275
Ordinary D shares of £1 each	70	70	100	100
Redeemable Preference shares of £1 each	19,000	19,000	103,422	103,422
	19,778	19,778	104,200	104,200

12	Financial commitments, guarantees and contingencies

The total amount of financial commitments not included in the balance sheet is £788,750 (2016 - £633,000).

Page 12