The Darlington Farmers Auction Mart Comp - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 00212585 (England and Wales)

Report of the Directors and

Financial Statements for the Year Ended 31 December 2017

for

The Darlington Farmers Auction Mart

Company Limited

Page

Company Information

1

Chairman's Report

2

Report of the Directors

3

Balance Sheet

5

Notes to the Financial Statements

6

DIRECTORS:

J A Ward

J E Beadle

A Armstrong

R Heseltine

P Monkhouse

J A Grieves

T D Johnson

E Blacklock

REGISTERED OFFICE:

Bank Top Mart

Clifton Road

Darlington

Co. Durham

DL1 5DU

REGISTERED NUMBER:

00212585 (England and Wales)

AUDITORS:

Wm Fortune & Son Chartered Accountants

Collingwood House

Church Square

Hartlepool

TS24 7EN

It is hard to believe that I am writing a fourth Chairman's report, but equally it is also hard to believe that Brexit is still a

major bone of contention for all.

What appeared to be an easy decision, has turned out to be a nightmare scenario.

Hopefully the politicians can deliver what the country voted for, and thus provide stability for industry and commerce

across the country.

Trading once again has been in a positive situation, and DfAM once again shows that it is able to perform well. This is

clearly a reflection of all the hard work that Andrew, Tracy, Scott, Will, Stephen and the rest of the team that work

tirelessly to this end.

Equally, Inspire Solutions and Vickers and Barrass continue to operate profitably and are well placed to take advantage

of their growing reputations.

Overall we have continued to increase revenue and strengthen our position as a major player in the livestock market.

Undoubtedly, the burning question will concern the proposed move.

The Directors are still prioritizing that we have everything in place before we instruct Contractors to commence work on

site at Humbleton Farm.

At the time of writing we still require exchange of contracts with the Council before this can take place.

My thanks once again to Andrew, Richard and Adam and all the staff for all their hard work.

J A Ward

Chairman

The directors present their report with the financial statements of the company for the year ended 31 December 2017.

REVIEW OF BUSINESS

The trading results for the 2017 financial year show a loss of £38,430. This is due to the bad debt incurred on Cleveland

Meat of £336,723. Costs have remained stable in 2017 with commissions rising by 5%. Profits pre the bad debt write off

were £298,293.

Credit Insurance costs have fallen in 2017 and as expected pension costs have risen and will continue to rise over the

next few years.

Current year and prior years' key indicators are

2017

2016

2015

£'000

£'000

£'000

Turnover

1,509

1,432

1,339

Net Profit before Tax

(38)

217

185

Shareholders Funds

4,823

4,855

4,813

Net Current Assets

114

754

742

In the Financial Statements shareholders funds have reduced due to the loss incurred and the dividend payments

made.Net current assets have fallen due the amount expended on the Mart relocation project.

The accountancy practice and land agency both have contributed £40,000 each to group profit.

DIVIDENDS

Dividends paid in the period were £14,700 (5p per share).

The Directors recommend that the dividend payable in 2017 is maintained at 5p per share (total £14,700).

FUTURE DEVELOPMENTS

DFAM and Darlington Borough Council are in contract negotiations regarding the Neasham Road site and adjacent

Riding School land. This contract will release the funding required to commence the build at Humbleton Farm with a

start on site expected this autumn.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2017 to the date of this

report.

J A Ward

J E Beadle

A Armstrong

R Heseltine

P Monkhouse

J A Grieves

T D Johnson

Other changes in directors holding office are as follows:

M E Broad - resigned 15 August 2017

J Sunter - resigned 31 December 2017

E Blacklock was appointed as a director after 31 December 2017 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible 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:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken

as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

ON BEHALF OF THE BOARD:

J A Ward - Director

19 July 2018

FIXED ASSETS

Tangible assets

4

3,813,639

3,457,073

Investments

5

187,259

187,259

Investment property

6

1,755,730

1,300,000

5,756,628

4,944,332

CURRENT ASSETS

Stocks

1,100

1,354

Debtors

7

1,701,764

2,214,197

Cash at bank and in hand

16,204

61,446

1,719,068

2,276,997

CREDITORS

Amounts falling due within one year

8

1,604,638

1,523,241

NET CURRENT ASSETS

114,430

753,756

TOTAL ASSETS LESS CURRENT LIABILITIES

5,871,058

5,698,088

CREDITORS

Amounts falling due after more than one year

9

(892,239

)

(689,196

)

PROVISIONS FOR LIABILITIES

11

(156,167

)

(153,465

)

NET ASSETS

4,822,652

4,855,427

CAPITAL AND RESERVES

Called up share capital

12

294,000

294,000

Share premium

13

84,450

84,450

Revaluation reserve

13

544,620

544,620

Fair value reserve

13

1,099,439

1,099,439

Retained earnings

13

2,800,143

2,832,918

SHAREHOLDERS' FUNDS

4,822,652

4,855,427

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved and authorised for issue by the Board of Directors on 19 July 2018 and were signed on its behalf by:

J A Ward - Director

1.	STATUTORY INFORMATION

The Darlington Farmers Auction Mart Company Limited is a private company, limited by shares, registered in

England and Wales. The company's registered number is 00212585 and the registered office address is Bank

Top Mart, Clifton Road, Darlington, County Durham. DL1 5DU.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover represents the invoiced amount of commissions (stated net of value added tax).

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

5% on cost

Leasehold Property

-

5% on cost

Plant and machinery

-

10% on cost

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Assets under the course of construction

Costs incurred on the project at Humbleton are shown at the actual cost incurred. Once the project is complete

and occupation taken at Humbleton a valuation exercise will be carried out with the resultant profit or loss taken

to the profit and loss account.

Investment property

Investment properties are stated at fair value. In accordance with section 16 FRS 102 Investment properties are

not depreciated.

Deferred taxation is provided on the future gains on investment properties at the rate expected to apply when the

properties are sold.

Pensions

Contributions payable to the company's pension scheme are charged to the profit and loss account so as to spread

the cost of pension over the service lives of the employees in the scheme. The pension charge is calculated on the

basis of actuarial advice.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the

period of the lease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 38 (2016 - 37 ) .

4.	TANGIBLE FIXED ASSETS

Assets

under the

Freehold

Leasehold

course of

property

Property

construction

£

£

£

COST OR VALUATION

At 1 January 2017

1,960,399

110,348

1,361,895

Additions

311,596

-

47,077

At 31 December 2017

2,271,995

110,348

1,408,972

DEPRECIATION

At 1 January 2017

1,107

83,570

-

Charge for year

16,559

5,516

-

At 31 December 2017

17,666

89,086

-

NET BOOK VALUE

At 31 December 2017

2,254,329

21,262

1,408,972

At 31 December 2016

1,959,292

26,778

1,361,895

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

COST OR VALUATION

At 1 January 2017

349,239

59,255

17,875

3,859,011

Additions

44,257

2,640

-

405,570

At 31 December 2017

393,496

61,895

17,875

4,264,581

DEPRECIATION

At 1 January 2017

255,658

43,728

17,875

401,938

Charge for year

19,985

6,944

-

49,004

At 31 December 2017

275,643

50,672

17,875

450,942

NET BOOK VALUE

At 31 December 2017

117,853

11,223

-

3,813,639

At 31 December 2016

93,581

15,527

-

3,457,073

Included in cost or valuation of land and buildings is freehold land of £ 1,676,250 (2016 - £ 1,676,250 ) which is

not depreciated.

Cost or valuation at 31 December 2017 is represented by:

Assets

under the

Freehold

Leasehold

course of

property

Property

construction

£

£

£

Valuation in 2004

25,699

12,190

-

Valuation in 2009

16,510

-

(168,889

)

Valuation in 2014

659,110

-

-

Cost

1,570,676

98,158

1,577,861

2,271,995

110,348

1,408,972

Fixtures

Plant and

and

Motor

machinery

fittings

vehicles

Totals

£

£

£

£

Valuation in 2004

-

-

-

37,889

Valuation in 2009

-

-

-

(152,379

)

Valuation in 2014

-

-

-

659,110

Cost

393,496

61,895

17,875

3,719,961

393,496

61,895

17,875

4,264,581

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2017

and 31 December 2017

187,259

NET BOOK VALUE

At 31 December 2017

187,259

At 31 December 2016

187,259

The company's investments at the Balance Sheet date in the share capital of companies include the following:

T H Vickers Limited

Registered office:

Nature of business: Chartered Surveyors

%

Class of shares:

holding

Ordinary

100.00

31.12.17

31.12.16

£

£

Aggregate capital and reserves

114,827

116,004

Profit for the year

38,823

41,912

Inspire Solutions Limited

Registered office:

Nature of business: Accountancy practice

%

Class of shares:

holding

Ordinary

100.00

31.12.17

31.12.16

£

£

Aggregate capital and reserves

6,296

328

Profit for the year

45,968

40,208

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2017

1,300,000

Additions

455,730

At 31 December 2017

1,755,730

NET BOOK VALUE

At 31 December 2017

1,755,730

At 31 December 2016

1,300,000

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.17

31.12.16

£

£

Trade debtors

1,502,764

2,065,944

Other debtors

23,057

-

Prepayments and accrued income

80,943

36,265

Amounts due from subsidiary

95,000

111,988

1,701,764

2,214,197

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.17

31.12.16

£

£

Bank loans and overdrafts

1,354,106

1,353,328

Other loans

80,000

-

Hire purchase contracts

6,014

12,500

Trade creditors

79,158

34,513

Tax

-

28,462

Social security and other taxes

66,762

66,812

Accrued expenses

18,598

27,626

1,604,638

1,523,241

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.17

31.12.16

£

£

Bank loans - 1-2 years

47,500

50,000

Bank loans - 2-5 years

142,500

157,500

Bank loans more 5 yr by instal

450,212

481,696

Other loans - 1-2 years

80,000

-

Other loans - 2-5 years

160,000

-

Hire purchase contracts

12,027

-

892,239

689,196

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

450,212

481,696

10.	SECURED DEBTS

The following secured debts are included within creditors:

31.12.17

31.12.16

£

£

Bank overdrafts

1,306,610

1,307,314

Bank loans

687,708

735,210

Other loans

320,000

-

2,314,318

2,042,524

The bank loan and overdraft are secured by legal charges over Holdforth Grange Farm, 44 Clifton Road and

Humbleton Farm West Auckland Road Darlington. A debenture is also in place dated 19th June 2015.

The other loans are secured by a legal charge over Newstead Farm, Snipe Lane, Hurworth Moor, Darlington,

DL2 1QB.

11.	PROVISIONS FOR LIABILITIES

31.12.17

31.12.16

£

£

Deferred tax

156,167

153,465

Deferred

tax

£

Balance at 1 January 2017

153,465

Accelerated Capital Allowances

2,702

Balance at 31 December 2017

156,167

Deferred tax has been provided on the investment properties shown in note 9. This is in accordance with FRS

102.

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.17

31.12.16

value:

£

£

294,000

Ordinary

£1

294,000

294,000

13.

RESERVES

Fair

Retained

Share

Revaluation

value

earnings

premium

reserve

reserve

Totals

£

£

£

£

£

At 1 January 2017

2,832,918

84,450

544,620

1,099,439

4,561,427

Deficit for the year

(18,075

)

(18,075

)

Dividends

(14,700

)

(14,700

)

At 31 December 2017

2,800,143

84,450

544,620

1,099,439

4,528,652

14.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

T ATKINSON (Senior Statutory Auditor)

for and on behalf of Wm Fortune & Son Chartered Accountants

15.	RELATED PARTY DISCLOSURES

The following transactions and balances existed with trading entities connected to directors of the company.

2017

2016

W Johnson & Son

Commissions

4,338

4,500

J E Beadle & Son

Commissions

5,254

4,957

T Ward Ltd

Purchases

53,332

1,000

P Monkhouse Haulage

Commissions

3,916

4,932

Purchases

14,868

20,138

E W Grieves

Commissions

5,131

9,730

Event and Show Solutions Ltd

Commissions

491

1,266

Inspire Solutions Limited provided services of £2,500 and received services of £15,000.It also voted a dividend

to DFAM of £40,000 in the year. The year end balance due to DFAM was £55,000(2016 £40,000).

TH Vickers Limited owed £40,000 to DFAM at the year end (2016:£70,000) and it also voted a dividend to

DFAM of £40,000.

Event and Show Solutions Limited provided services totalling £5,610 (2016:£6,290) in the period. This company

is under the control of A Armstrong. There was no outstanding balance at the year end (2016:£nil).

All transactions are at arms length and on a commercial basis.

16.	POST BALANCE SHEET EVENTS

DJ Developments (North East) Limited acquired in January 2018 the freehold property at The Abattoir, Yarm

Road, Stockton on Tees, Cleveland, TS18 3RU - the former Cleveland Meat Company site. DFAM own 45% of

the issued share capital.

17.	ULTIMATE CONTROLLING PARTY

The company is controlled by its shareholders. No individual shareholder, or connected group of shareholders,

has majority ownership of the shares.