Registered number: 01332670 Charity number: 274605
FARMLAND RESERVE UK LIMITED
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
FARMLAND RESERVE UK LIMITED
CONTENTS
| Page | |
|---|---|
| Reference and Administrative Details of the Charity, its Trustees and Advisers | 1 |
| Trustees' Report | 2 - 10 |
| Independent Auditor's Report on the Financial Statements | 11 - 14 |
| Consolidated Statement of Financial Activities | 15 |
| Consolidated Balance Sheet | 16 - 17 |
| Charity Balance Sheet | 18 - 19 |
| Consolidated Statement of Cash Flows | 20 |
| Notes to the Financial Statements | 21 - 45 |
FARMLAND RESERVE UK LIMITED
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2024
| Trustees | B M Conway, Trustee |
|---|---|
| P A Tolman | |
| D L Rose | |
| Company Registered Number 01332670 Charity Registered Number 274605 Registered Office Manor Farm Church End Wood Walton Huntingdon Cambridgeshire PE28 5YU Independent Auditors MHA Chartered Accountants & Statutory Auditors The Pinnacle 150 Midsummer Boulevard Milton Keynes MK9 1FD Bankers NatWest 92 High Street Huntingdon PE29 3DT Solicitors Devonshires 30 Finsbury Circus London EC2M 7DT Company Secretary B J Garlick |
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FARMLAND RESERVE UK LIMITED
REPORT OF THE TRUSTEES AND DIRECTORS (INCORPORATING THE STRATEGIC REPORT) FOR THE YEAR ENDED 31 DECEMBER 2024
The Trustees, who are also directors for the purposes of the Companies Act of the company (The Charity - Farmland Reserve UK Limited), present their annual report together with the audited financial statements of The Charity and its subsidiary (The Charity and The Group) for the year ended 31 December 2024. The Trustees confirm that the financial statements of The Charity and The Group comply with the current provisions of FRS 102 and the Charities SORP 2019.
Objectives and Activities
- Objectives and principal activities
The object of The Charity is:
To promote and further the religious and other charitable work of The Church Jesus Christ of Latter-day Saints in the United Kingdom and elsewhere and to assist members and other persons who are in conditions of need, hardship, sickness and distress, to all ages and denominations.
The Charity will support charitable organisations, trusts, associations or institutions formed for any of the charitable purposes included in the Objects, through the provision of sponsorship, grants or other financial or inkind contributions.
The Charity holds tangible investments in farming and their associated assets to generate funds for its objectives as previously stated. Details of their performance can be found in the “Financial Review” section and “Subsidiary Undertakings” subsection under the “Structure, Governance and Management” section.
The Trustees regularly interact with representatives of The Church of Jesus Christ of Latter-day Saints, a Utah Corporation Sole ("Church Corporation") (formerly known as The Corporation of the Presiding Bishop of The Church of Jesus Christ of Latter-day Saints “CPB”) to discuss making significant donations to support Church Corporation’s international humanitarian and building projects for religious purpose buildings and other projects which both Church Corporation and the Church had approved around the world. It was decided that this would facilitate the Charity's objectives along with some individual donations to various charitable organisations within the UK and elsewhere.
The Trustees investigated the way in which these projects were identified and approved by internal Church committees, the type of projects and their religious, humanitarian and charitable purposes. Further, they were happy with the infrastructure and controls that Church Corporation had in place to ensure proper implementation of these projects.
• Achievements and Performance
Strategic Land Acquisitions in South Lincolnshire
Overview
In line with the Trustees’ strategic objective to expand and enhance the quality of the agricultural portfolio, two significant land acquisitions were completed in 2024. The Gosberton Estate and the Donington Estate , located in South Lincolnshire, were acquired in two separate transactions during the latter part of the year.
Details of the Acquisitions
The acquisitions add a combined total of 3,500 acres of high-quality arable land to the existing portfolio. The land comprises predominantly Grade 1 and Grade 2 soils , which are among the most fertile and productive in the UK. These soils are capable of supporting intensive commercial agriculture, including high-yield cereal and vegetable cropping systems.
In particular, Grade 1 land facilitates the cultivation of cash crops such as potatoes and, in some instances, supports double cropping of vegetable rotations - enhancing both productivity and profitability. This strategic focus on premium agricultural land reflects the Trustees’ ongoing commitment to delivering strong financial and operational performance.
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FARMLAND RESERVE UK LIMITED
REPORT OF THE TRUSTEES AND DIRECTORS (INCORPORATING THE STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Regional Significance
South Lincolnshire is widely recognised as a hub for the UK fresh produce sector, characterised by its concentration of vertically integrated agribusinesses. These businesses are embedded within various stages of the food supply chain and serve major retailers and other high-volume markets. The region's agricultural capacity and infrastructure make it a highly attractive area for investment. These acquisitions also offer geographic synergy with The Charity’s existing operations at Coldham , providing opportunities for operational integration and scale efficiencies.
Endorsement from Land Agent
The strategic value of the Gosberton Estate was underscored in the acquisition particulars, with the land agent, Hub Rural , stating:
“South Lincolnshire, in which the Gosberton Estate is located, is acknowledged as the centre of the UK fresh produce industry. The area is renowned for intensive food production carried out by typically large, complex and vertically integrated agribusinesses, all of which are embedded in various phases of the food supply chain, typically serving multiple retailers and other customers. The land that characterises the area underpins the ability for these businesses to operate within the supply chain and is a highly sought-after asset as a result. Rarely does an opportunity occur to buy such a large area of some of the most consistent and highest quality soils in the UK.”
Forward Outlook
The Trustees are also pleased to report that a further acquisition of 5,000 acres at the Sutton Bridge Estate — also in South Lincolnshire — with completion in 2025. This transaction represents a continued investment in strategically located, high-quality farmland and reinforces The Charity’s long-term commitment to sustainable land-based income generation and capital appreciation.
Donations and Charitable Activity
Although no donations were made during the year ended 31 December 2024, the Trustees remain committed to supporting charitable activities in line with the Charity’s objectives. The Trustees continue to engage actively with Church Corporation to identify suitable projects to which the Charity may contribute.
A Donation for 2025 is currently under review; £0.5M has been set aside to support several projects.
• Public Benefit
The Trustees have read and given due regard to the guidance on public benefit published by The Charity Commission in exercising their powers and duties.
Financial Review
• Financial results
Each year, The Trustees carry out a detailed review of The Charity. They review the previous year's achievements, and review and approve the budgets for next year.
The end of the year saw a significant increase in Income during 2024 due to two donations from the “Church Corporation” to fund the acquisition of two farming estates. The Gosberton and Donington Estates were purchased in the last quarter of the year adding a further 3,500 acres of land to The Charity ownership.
Total Income improved during the year, increasing from £13,662k in 2023 to £57,850k in 2024. The £57,850k Total Income in 2024 includes the donation from “Church Corporation” totalling £42,550k.
Income from its trading subsidiary increased to £14,230k (2023: £12,049k) and investment income decreased to £138k (2023: £163k).
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FARMLAND RESERVE UK LIMITED
REPORT OF THE TRUSTEES AND DIRECTORS (INCORPORATING THE STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Total Income excluding donations increased during the year from £13,662k in 2023 to £15,300k in 2024.
Costs, excluding tax, increased during the year from £9,540k in 2023 to £12,249k in 2024. A donation to “Church Corporation” was made during 2023 totalling £900k. No donations were made to “Church Corporation” in 2024 due to the investment activities occurring at the end of the year.
The total Net movement in funds increased in the year by £43,698k. This is in contrast to 2023 where we increased by £3,464k. (Increases in 2024, excluding the donation total £1,148k).
Results of The Group were impacted by reduced yields due to adverse weather across the 2024 cropping season. Record rainfall fell across the UK, leading to crop failure in areas of the farm. Efforts were undertaken to redrill the areas worst effect with spring crops planted to replace the failed winter crops. A wet spring also delayed spring planting by 4 weeks. Conditions improved moving into the summer months, but yield performance was lower than average levels. The financial impact of this was 1) a higher production cost per tonne of sold crop and 2) additional stock valuation adjustments at the end of the year, as production costs outweighed the market value of the product on hand.
The wet summer period came with many challenges, leading to a stop-start harvest and additional handling / drying costs. The adverse weather continued into the later months of the year impacting winter plantings and crop establishment, with some crop failure where the weather impacted the hardest.
BPS delink payments continued to fall, with only £360k received in 2024, £490k less than was received during 2023. During the Autumn Budget 2024 an announcement was made to hasten the reduction of the BPS scheme, meaning no further BPS payments are expected in 2025.
Market prices for Cereals were still well above long term average prices during 2024 due to a number of global factors; a continuation of severe disruptions in the agricultural supply chain caused by the Covid-19 pandemic, Brexit and the impact of the war between Russia and the Ukraine threatening the supply of energy, fertiliser and the export of wheat to the world market.
• Investment policy and performance
Under the Articles of Association, the Charity has the authority to invest in any manner deemed to be in its best interests by the Trustees.
Despite receiving a significant donation in 2024, The Charity's cash reserves declined during the year. This reduction reflects The Charity’s continued strategic investment in agricultural assets and efforts to mitigate longterm operational risks.
The recent phasing out of the UK Basic Payment Subsidy Scheme has materially increased the financial risks associated with farming operations. As a result, The Charity’s future financial performance has been significantly impacted. In response, The Charity will continue to pursue opportunities to acquire additional farmland to improve operational efficiency and support expansion into higher-margin crop production. Alongside this, investment in residential property remains a key strategy to diversify income streams and reduce exposure to the inherent risks of agricultural activities.
In line with this strategy, The Charity completed two major farmland acquisitions during 2024:
In September 2024, 1,000 acres of Grade 1 land were acquired at the Gosberton Estate in South Lincolnshire.
In December 2024, a further 2,500 acres were acquired with the completion of the Donington Estate.
These acquisitions support the Charity’s long-term strategy of concentrating land holdings in South Lincolnshire, with further acquisitions planned into 2025. The Trustees are confident that these large, contiguous land blocks will drive future profitability, enhance operational efficiencies, and enable expansion into potato production.
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FARMLAND RESERVE UK LIMITED
REPORT OF THE TRUSTEES AND DIRECTORS (INCORPORATING THE STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
The Trustees no longer consider the Charity’s liquidity position to be high relative to the tangible assets held. However, they continue to manage liquidity prudently. At the year-end, the Charity had invested £5.9 million (2023: £7.3 million) of surplus funds in a high-security rated Instant Access Interest Bearing account, earning an average gross interest rate of 1.90% (2023: 1.90%).
Investment income is recognised on a receivable basis.
• Reserves policy
The Trustees have established the level of reserves (that is those funds that are freely available) to which The Charity and its subsidiary companies ought to have ready access. Reserves are needed to bridge any funding gap between spending and receiving resources through shareholder grants and leasing of farmland.
The Trustees' policy is to hold, as a minimum, the equivalent of approximately 12 months of operating budget in reserves.
The actual reserves reported at 31 December 2024 were £262,090 (2023: £218,392k) which is significantly above the Trustees' target due to retaining a portion for possible future agricultural acquisitions as part of its ongoing consolidation efforts.
It should be noted that of the £262,090 only £9,628k is freely available due to the rest of the reserves figure being held in farming related assets to generate investment income to make current and future donations. The current level of cash reserves held exceeds the 12 months expenditure policy stated, this is due to awaiting to reinvest cash generated from farm sales for redeployment on land assets within the designated area for consolidation, as described in the investment policy section.
In addition, the Trustees wish to observe that during 2024 plans have been made to make a significant charitable donation to causes that meet The Charity’s objectives.
It is the Trustees' view that it is prudent to ensure that there are sufficient reserves to provide financial flexibility.
The reserves policy is reviewed on an annual basis.
Structure, governance and management
• Governing document
The Charity continues to be both a limited company and a registered charity. In conjunction with this, The Charity is governed by its Memorandum and Articles of Association which were last amended on 22 November 2011.
The purpose of The Charity as set out in the government document is laid out in the Objectives and Activities section of this report, with the main activities undertaken in relation to those purposes.
• Appointment of Trustees
As set out in the Articles of Association, new or additional trustees are to be appointed by the shareholder (Farmland Reserve, Inc.) or by decision of the Trustees, providing such persons are willing so to act either to fill a vacancy or as an additional trustee.
• Trustee induction and training
New trustees undergo an orientation day to brief them on their legal obligations under charity and company law, the content of the Memorandum and Articles of Association, the committee and decision-making processes, the business plan and recent financial performance of The Charity.
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FARMLAND RESERVE UK LIMITED
REPORT OF THE TRUSTEES AND DIRECTORS (INCORPORATING THE STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
During the orientation day they meet key employees and other trustees. Trustees are updated and advised on legal issues by Devonshires Claims.
• Organisation
The sole shareholder of The Charity is Farmland Reserve, Inc. a Utah non-profit corporation based in Utah, USA.
Direction is channelled to The Charity via the shareholder and is reflected in the various department budgets/plans which are reviewed and approved by the Trustees annually.
Within this framework, the board of trustees administers the affairs of The Charity. The Trustees monitor progress and achievements throughout the year, and other trustee meetings are held as necessary. The trustees direct the Charity and the operation of the Charity on a day to day basis is delegated to the Senior Management Team. The pay of the Senior Management Team is reviewed annually by Trustees and is benchmarked against the pay of others in similar charitable roles.
• Related parties
The Charity holds 100% of the share capital of its subsidiary company, AgReserves Limited.
• Subsidiary undertakings
AgReserves Limited’s principal activity continued to be that of arable farming and it operates a policy of generating the highest profits feasible from efficient farming techniques that utilise the latest technology.
AgReserves Limited leases all of the farmland owned by Farmland Reserve UK Limited and then farms that land. The Trustees are mindful that the small and somewhat scattered nature of some of the parcels of land do lead to some labour and equipment inefficiencies. The Trustees believe that this weakness in the operations of the farms can be overcome by consolidating land holdings around major farm centres in Cambridgeshire and Yorkshire.
This process of consolidation began in 2008 and has continued through to 2024.
The result for the year of the subsidiary AgReserves Limited included in the statement of financial activities was a loss of £790k (2023 Profit £2,066k). Profit before tax was £1,113k (2023: £2,724k).
• Risk management
The Trustees have assessed the major risks to which The Charity and the group are exposed, in particular those related to the operations and finances of The Charity and the group, and are satisfied that systems and procedures are in place to mitigate our exposure to the major risks. The risk management strategy of the Trustees includes an annual review of the principal risks, The Trustees regularly review the procedures in place to mitigate risk.
• Employees
The Charity ensures that its employees are able to meet the necessary requirements of their position and are up to date on any developments required for their position. This is achieved in a variety of ways:
•Applications for new positions in The Charity are invited from anyone with the relevant qualifications - the key emphasis is on their ability to meet the requirements of the position although the application form requests the applicant mention if they have any illness or medical condition which the employer would need to be aware of in order to make reasonable adjustments should they be successful.
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FARMLAND RESERVE UK LIMITED
REPORT OF THE TRUSTEES AND DIRECTORS (INCORPORATING THE STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
•The Charity utilises regular staff meetings during the year which help to ensure that the employees' input is received regarding any decisions which affect their interests. In addition, there are websites and e-mail facilities available to enable more effective communication and training. This helps to ensure that employees receive systematic updates on matters concerning them as employees and ensures their involvement in relation to the financial and economic factors that affect the performance of The Charity and The Group.
•In addition to the above points, The Charity is mindful of the need to cater for those with disabilities. Where any employees become incapacitated during their employment they are entitled to receive long-term disability benefits from The Charity. Where an employee becomes disabled but not incapacitated the employer will make any reasonable adjustments necessary. The same opportunities are available to all staff, irrespective of disability. The key emphasis is on the technical ability of each employee.
• Key Management Personnel
The Charity does not have any employees, all employees of The Group are employed by the subsidiary of The Charity, AgReserves Ltd. During 2024, no Trustees of The Charity received any remuneration, benefits in kind or reimbursement of expenses from The Charity, nor incurred any expenses.
Of the three Trustees only one is a member of the Key Management Personnel of The Group and is employed by the subsidiary, AgReserves Ltd.
Key Management are paid within the banded salary structure of the subsidiary. Regular benchmarking and independent market reviews are conducted to ensure that pay remains reflective of fair market value and competitive enough to encourage retention of key staff. Benchmarking exercises occur on an annual basis, with an independent market review occurring every 5 to 10 years. During this process, a review is conducted not just for Key Management but all working staff of The Subsidiary.
Reference and administrative details
• Registered name and number
The registered name of The Charity is Farmland Reserve UK Limited. The Charity does not use any other names.
The charity registration number is 274605. The Charity is registered with the Charity Commission in England and Wales. The company registration number is 01332670.
• Office
The principal and registered office address is Manor Farm, Church End, Wood Walton, Huntingdon, Cambridgeshire, PE28 5YU.
• Directors and trustees
The trustees who served during the year and subsequent to the year end and up to the date of signing the report were as follows:
D L Rose B M Conway P A Tolman
None of the trustees have qualifying third party indemnity insurance.
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FARMLAND RESERVE UK LIMITED
REPORT OF THE TRUSTEES AND DIRECTORS (INCORPORATING THE STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Funds held as custodian trustee on behalf of others
The Charity does not hold funds as custodian trustee on behalf of others.
Strategic Report
Principal risks and uncertainties
Financial risk and management
The main risk The Charity faces is that it relies on income from the leasing of all the farmland it owns to its subsidiary undertaking. The Charity has sufficient reserves to meet the needs of its charitable activities for the foreseeable future and has assurances of continuing support from the parent company.
Other forms of risks and the management of these risks are:
Price risk
Salary costs are communicated to staff of The Group during the formal annual review of salaries. Prices of materials purchased are subject to contracts with suppliers, based on current market prices.
As part of the nature of agriculture the company is subject to price variations, but active efforts are made to manage this risk by taking advantage of regular market information, forward contracts, and owning sufficient storage. These storage facilities allow the company to price and deliver products away from the harvest window which is well known to be a period of depressed prices.
Credit risk
Credit risk on amounts owed to The Charity by its customers is low as the main debtor is AgReserves Limited which is a wholly owned subsidiary. During the acquisition of the tenanted estates Gosberton and Donington estates in 2024, credit risk has widened due to the sizeable nature of these parcels. Credit risks on amounts owed to the group are actively monitored.
The Group continues to make every effort to minimise exposure to customer credit risks and all appropriate steps are taken to reduce this risk.
Liquidity risk
The Charity has no long-term borrowings. Assurances of continuing financial support have been received from the parent company, should this be needed.
Interest rate cash flow risk
The Charity is able to place surplus funds on short term deposit with the Charity's bankers. With the present banking interest rates being so low there is a risk that the Charity does not make the best use of surplus cash and therefore every effort is being made to review all options that would bring the highest rates possible.
Currency rate risk
As a result of Brexit, the 2024 BPS Subsidy received from the Rural Payments Agency was paid to the subsidiary in Pounds Sterling. It is therefore highly unlikely that there will be a need to enter into any future forward dealing facilities, this almost entirely eliminates any currency rate risk.
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FARMLAND RESERVE UK LIMITED
REPORT OF THE TRUSTEES AND DIRECTORS (INCORPORATING THE STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
Key performance indicators (KPIs)
To measure the effectiveness of The Charity's strategy and its implementation The Trustees have identified the following KPIs:
| 2024 | 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|---|
| Profitability of Farming Operations |
£1.2M | £4.5M | £2.9M | £2.4M | £1.7M |
| Donations Received | £42.5M | £0.0M | £108.4M | £0.0M | £0.0M |
| Resources expended on charitable activities |
(£0.9M) | (£0.9M) | (£0.7M) | (£2.6M) | (£0.5M) |
| Unrestricted Funds | £262.1M | £218.4M | £214.9M | £104.3M | £104.5M |
| Unrestricted Funds readily available |
£9.6M | £10.8M | £17.1M | £25.3M | £26.5M |
Plans for future periods
The goals for 2025 include plans to:
-
Continue to enhance the profitability and efficiency of the farms through well-reasoned acquisitions to achieve, over time, a concentration of land holdings around major farm locations. Any future acquisitions will be funded from retained reserves or if necessary, donations. Along with well-reasoned acquisitions, a regular operational review of currently held farms occurs. New technology and science are continually reviewed and vetted to see if it warrants integration with daily operations.
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To carefully monitor the balance of unrestricted funds while striving to achieve the concentration efforts identified in goal one, so that funds can be put to the use of The Charity's objectives as swiftly as possible.
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Identify other charitable organisations, trusts, associations or institutions formed for any of the charitable purposes included in the Objects, to support through the provision of sponsorship, grants or other financial or in-kind contributions.
Trustees' responsibilities statement
The trustees (who are also directors of Farmland Reserve UK Limited for the purposes of company law) are responsible for preparing the report of the trustees (incorporating the strategic report) and the financial statements in accordance with applicable law and regulations.
Company law requires the trustees to prepare financial statements for each financial year. Under that law, the trustees have elected to prepare financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. Under company law the trustees 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 charitable company and the group and of the incoming resources and application of resources, including the income and expenditure, of the charitable group for that period. In preparing these financial statements, the trustees are required to:
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select suitable accounting policies and then apply them consistently;
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observe the methods and principles in the Charities SORP (FRS 102);
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make judgments 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 charitable group will continue in business.
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FARMLAND RESERVE UK LIMITED
REPORT OF THE TRUSTEES AND DIRECTORS (INCORPORATING THE STRATEGIC REPORT) (CONTINUED) FOR THE YEAR ENDED 31 DECEMBER 2024
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company and the group'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 charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Trustees confirm that:
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So far as each Trustee is aware, there is no relevant audit information of which the charitable company's auditor is unaware, and
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The Trustees have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that the charitable company's auditor is aware of that information.
Auditors
The auditor, MHA, has indicated its willingness to continue in office. MHA, previously traded through the legal entity McIntyre Hudson LLP. In response to regulatory changes, McIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP. The Designated Trustees will propose a motion re-appointing the auditor at a meeting of the Trustees.
This report, incorporating the strategic report, was approved by the Trustees, in their capacity as company directors and signed on their behalf by:
................................................
B M Conway Trustee
Date:
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FARMLAND RESERVE UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FARMLAND RESERVE UK LIMITED
Opinion
We have audited the Financial Statements of Farmland Reserve UK Limited (the 'parent charitable company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Financial Activities, the Consolidated Balance Sheet, the Charity Balance Sheet, the Consolidated Statement of Cash Flows and the related notes, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the Financial Statements:
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give a true and fair view of the state of the Group's and of the parent charitable company's affairs as at 31 December 2024 and of the Group's incoming resources and application of resources, including its income and expenditure for the year then ended;
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
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have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the Financial Statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.
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FARMLAND RESERVE UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FARMLAND RESERVE UK LIMITED (CONTINUED)
Other information
The other information comprises the information included in the Annual Report other than the Financial Statements and our Auditor's Report thereon. The Trustees are responsible for the other information contained within the Annual Report. Our opinion on the Financial Statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Financial Statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the Financial Statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Trustees' Report for the financial year for which the Financial Statements are prepared is consistent with the Financial Statements.
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the Directors' Report included within the Trustees' Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.
We have nothing to report in respect of the following matters in relation to which Companies Act 2006 requires us to report to you if, in our opinion:
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the parent charitable company has not kept adequate and sufficient accounting records, or returns adequate for our audit have not been received from branches not visited by us; or
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the parent charitable company Financial Statements are not in agreement with the accounting records and returns; or
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certain disclosures of Trustees' remuneration specified by law are not made; or
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we have not received all the information and explanations we require for our audit.
Responsibilities of Trustees
As explained more fully in the Trustees' Responsibilities Statement set out on pages 10, the Trustees (who are also the Directors of the charitable company for the purposes of company law) 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 Trustees 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 Trustees are responsible for assessing the Group's and the parent charitable 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 Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or have no realistic alternative but to do so.
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FARMLAND RESERVE UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FARMLAND RESERVE UK 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
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Enquiry of management and those charged with governance around actual and potential litigation and claims;
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Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;
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Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and reviewing accounting estimates for bias;
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Reviewing minutes of meetings of those charged with governance;
-
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the Financial Statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the Financial Statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the Financial Statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
Page 13
FARMLAND RESERVE UK LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FARMLAND RESERVE UK LIMITED (CONTINUED)
Use of our report
This report is made solely to the charitable 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 charitable 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 charitable company and its members, as a body, for our audit work, for this report, or for the opinions we have formed.
Rebecca Hughes BSc(Hons) FCCA (Senior Statutory Auditor)
for and on behalf of MHA, Statutory Auditor Milton Keynes, United Kingdom
Date:
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
Page 14
FARMLAND RESERVE UK LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 DECEMBER 2024
| Note Income from: Donations 3 Other trading activities: Income from trading subsidiaries 4 Investments 5 Other income 6 Total income Expenditure on: Raising funds: 7 Trading activities Other Charitable donation Total expenditure Net income before taxation Taxation 12 Net movement in funds Reconciliation of funds: Total funds brought forward Net movement in funds Total funds carried forward 19 |
Unrestricted funds 2024 £000 42,550 14,230 138 932 57,850 11,084 1,165 - 12,249 45,601 (1,903) 43,698 218,392 43,698 262,090 |
Total funds 2024 £000 42,550 14,230 138 932 57,850 11,084 1,165 - 12,249 45,601 (1,903) 43,698 218,392 43,698 262,090 |
Total funds 2023 £000 - 12,049 163 1,450 13,662 7,782 858 900 9,540 4,122 (658) 3,464 214,928 3,464 218,392 |
|---|---|---|---|
The Consolidated Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 21 to 45 form part of these financial statements.
Page 15
FARMLAND RESERVE UK LIMITED REGISTERED NUMBER: 01332670
CONSOLIDATED BALANCE SHEET AS AT 31 DECEMBER 2024
| Note Fixed assets Tangible assets 13 Current assets Stocks 15 Debtors 16 Cash at bank and in hand 23 Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Deferred tax 18 Total net assets Charity funds Unrestricted funds Share Capital Unrestricted funds 19 Total unrestricted funds 19 Total funds |
13,419 2,979 9,628 26,026 (1,739) 10,000 252,090 |
2024 £000 241,110 241,110 24,287 265,397 (3,307) 262,090 262,090 262,090 |
13,609 8,705 10,797 33,111 (2,099) 10,000 208,392 |
2023 £000 188,784 188,784 31,012 219,796 (1,404) 218,392 218,392 218,392 |
|---|---|---|---|---|
Page 16
FARMLAND RESERVE UK LIMITED REGISTERED NUMBER: 01332670
CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2024
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
B M Conway Trustee
Date:
The notes on pages 21 to 45 form part of these financial statements.
Page 17
FARMLAND RESERVE UK LIMITED REGISTERED NUMBER: 01332670
CHARITY BALANCE SHEET AS AT 31 DECEMBER 2024
| Note Fixed assets Tangible assets 13 Investments 14 Current assets Debtors 16 Cash at bank and in hand 23 Creditors: amounts falling due within one year 17 Net current assets Total assets less current liabilities Total net assets Charity funds Unrestricted funds Share capital 19 Unrestricted income funds 19 Total unrestricted funds 19 Total funds |
5,291 2,217 7,508 (741) 10,000 235,626 |
2024 £000 229,409 9,450 238,859 6,767 245,626 245,626 245,626 245,626 |
4,904 3,229 8,133 (423) 10,000 191,138 |
2023 £000 183,978 9,450 |
|---|---|---|---|---|
| 193,428 7,710 |
||||
| 201,138 | ||||
| 201,138 | ||||
| 201,138 | ||||
| 201,138 |
Page 18
FARMLAND RESERVE UK LIMITED REGISTERED NUMBER: 01332670
CHARITY BALANCE SHEET (CONTINUED) AS AT 31 DECEMBER 2024
The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
................................................
B M Conway Trustee
Date:
The notes on pages 21 to 45 form part of these financial statements.
Page 19
FARMLAND RESERVE UK LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2024
| Note Cash flows from operating activities Net cash used in operating activities 22 Cash flows from investing activities Proceeds from the sale of tangible fixed assets Purchase of intangible assets Purchase of tangible fixed assets 13 Interest received 5 Net cash used in investing activities Change in cash and cash equivalents in the year Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 23 |
2024 £000 53,683 932 - (55,922) 138 (54,852) (1,169) 10,797 9,628 |
2023 £000 (646) 2,348 (14) (8,131) 163 (5,634) (6,280) 17,077 10,797 |
|---|---|---|
The notes on pages 21 to 45 form part of these financial statements
Page 20
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
1. Company information
Farmland Reserve UK Limited is a charitable company limited by shares, incorporated in England and Wales in the United Kingdom, and the address of its registered office is Manor Farm, Church End, Wood Walton, Huntingdon, Cambridgeshire, PE28 5YU.
2. Accounting policies
2.1 Basis of preparation of Financial Statements
Farmland Reserve UK Limited is an incorporated Charity registered with the Charity Commission for England and Wales registration number 274605. The Company is registered in the UK, registration number 01332670.
The Financial Statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.
Farmland Reserve UK Limited meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.
The Consolidated Statement of Financial Activities (SOFA) and Consolidated Balance Sheet consolidate the Financial Statements of the Company and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.
The Charity has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Financial Activities in these Financial Statements.
The Charity's functional and presentational currency is British Pound Sterling (£) and is rounded to the nearest £1,000.
The following principal accounting policies have been applied.
2.2 Going concern
The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements.
The budgeted income and expenditure is sufficient with the level of reserves for the Group to be able to continue as a going concern.
Page 21
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
2. Accounting policies (continued)
2.3 Income
All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.
Donations are included in the Consolidated Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the period is shown in the relevant funds on the Balance Sheet. Where income is received in advance of entitlement of receipt, its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.
Rental income is recognised on a straight line basis over the period of the lease.
Income from subsidiaries represents revenue recognised in respect of goods and services. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Charity and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue from crop sales is recognised upon receipt of the goods by the customers. Whilst goods are in transit, the risk and reward of ownership remain with the Charity.
Single farm payments are receivable on an annual basis. The annual payment is recognised in the year that the application applies to. Due to the regular variation in when the payment occurs, this is recognised either by accrual or upon receipt of payment.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
Costs of raising funds: trading activities comprise the expenses of the trading subsidiary in undertaking its income generating activities.
Other expenditure represents the expenses of parent company in renting the tangible fixed assets. These expenses are not considered to be directly attributable to either costs of raising funds or charitable expenditure to further the Charity's aims.
Where costs cannot be reliably attributed to particular activities they have been allocated on a basis consistent with the use of the resources. Direct charitable expenditure comprises expenditure directly relating to the objects of the Charity.
Governance costs incorporate those costs of governance arrangements which relate to the general running of the Charity as opposed to the direct management functions. The costs relating to these activities provide the governance infrastructure which allows the Charity to operate and to generate the information required for public accountability. An analysis of these costs is disclosed in note 8.
Support costs are those functions that assist the work of the Charity but do not directly undertake charitable activities. Support costs include finance, professional and governance costs which support the Charity's activities. As there is only one activity in the Charity, the support costs have been allocated there in full.
Page 22
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
2. Accounting policies (continued)
2.4 Expenditure (continued)
Expenditure on charitable activities is incurred on directly undertaking the activities which further the Group's objectives, as well as any associated support costs.
2.5 Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the Group; this is normally upon notification of the interest paid or payable by the institution with whom the funds are deposited.
2.6 Taxation
The Charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
Tax is payable on profits in the subsidiary company.
2.7 Tangible fixed assets and depreciation
Tangible fixed assets costing £10,000 or more are capitalised and recognised when future economic benefits are probable and the cost or value of the asset can be measured reliably.
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of Financial Activities.
Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.
Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
Freehold land - not depreciated - Land improvements over 10 to 40 years Assets under construction - not depreciated until brought into use - Plant and machinery over 3 to 10 years - Equipment fixtures and fittings over 5 to 10 years Farm houses and farm buildings- over 25 to 40 years
Page 23
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
2. Accounting policies (continued)
2.7 Tangible fixed assets and depreciation (continued)
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Financial Activities.
2.8 Investments
Investments in subsidiaries are valued at cost less provision for impairment.
2.9 Stocks
Agriculture produce is held under cost model, being stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on an allocation of costs.
Cultivations cost is determined on an overhead allocation basis. Cultivations are in the early stages of growth at the year end and therefore their market value cannot be determined.
Crop in store are valued at the lower of cost and net realisable value, with reference to market value and contracted future sales.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised in profit and loss.
2.10 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
2.11 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.
2.12 Liabilities
Liabilities are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.
Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.
Page 24
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
2. Accounting policies (continued)
2.13 Deferred taxation
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable surpluses from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse.
Deferred tax assets and liabilities are not discounted.
2.14 Financial instruments
The Group also enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
2.15 Operating leases
Rentals paid under operating leases are charged to the Consolidated Statement of Financial Activities on a straight line basis over the lease term.
Page 25
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
2. Accounting policies (continued)
2.16 Operating leases - lessor
Rental income is recognised on a straight line basis over the period of the lease, unless the rental payments are structured to increase in line with expected inflation, in which case the annual rental income equals the amounts owed to the lessor.
The aggregate benefit of lease incentives are recognised as a reduction to the income recognised over the lease term on a straight line basis.
2.17 Pensions
The Group is part of a defined benefit pension scheme operated by The Church of Jesus Christ of Latter-day Saints (Great Britain), the Deseret UK Benefit Plan. The fund is valued every three years by a professionally qualified independent actuary, with rates of contributions payable being determined by the actuary. In intervening years the actuary reviews the continuing appropriateness of the rates. Pension costs are accounted for on the basis of contributions made in the year or accrued at the year end, on a defined contribution basis, as requested by FRS 102 as the Charity is unable to identify its share of the underlying assets and liabilities of the scheme. Full details of the plan are provided in the financial statements of The Church of Jesus Christ of Latter-day Saints (Great Britain).
The Group is not liable to the plan for other entities obligations under the terms and conditions of the multi employer pension plan.
The Group also operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.
2.18 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the Financial Statements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the Financial Statements.
Investment income, gains and losses are allocated to the appropriate fund.
Page 26
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
2. Accounting policies (continued)
2.19 Critical accounting estimates and areas of judgment
The following judgements (apart from those involving estimates) have been made in the process of applying the above accounting policies that have had the most significant effect on amounts recognised in the financial statements:
Trade debtors
Trade debtors consist of amounts due from customers. An allowance for doubtful debts is maintained for estimated losses resulting from the inability of The Group's customers to make required payments. The allowance is based on the company's regular assessment of the credit worthiness and financial conditions of the customer.
Stock
Stock is valued at the lower of cost and net realisable value. Cost is determined on an overhead allocation basis. Net realisable value is determined by management with reference to market value, consideration of contracted future sales. Certain factors could affect the net realisable value of The Group's stocks, including customer demand and market conditions.
Tangible and intangible assets
Depreciation and amortisation are provided on fixed assets based on the estimated useful economic life of those assets. This is based on management's knowledge of the business, assets and prior experience.
There are no key assumptions concerning the future, and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Page 27
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
3. Income from donations
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2024 | 2024 | 2023 | |
| £000 | £000 | £000 | |
| Donations | 42,550 | 42,550 | - |
4. Income from other trading activities
Income from non charitable trading activities
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2024 | 2024 | 2023 | |
| £000 | £000 | £000 | |
| Trading subsidiary | 14,230 | 14,230 | 12,049 |
In 2023, income from the trading subsidiary was unrestricted income.
5. Investment income
| Unrestricted | Total | Total | |
|---|---|---|---|
| funds | funds | funds | |
| 2024 | 2024 | 2023 | |
| £000 | £000 | £000 | |
| Interest receivable from interest bearing accounts | 138 | 138 | 163 |
Page 28
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
6. Other incoming resources
| Other incoming resources Profit on disposal of tangible fixed assets |
Unrestricted funds 2024 £000 792 140 932 |
Total funds 2024 £000 792 140 932 |
Total funds 2023 £000 656 794 |
|---|---|---|---|
| 1,450 |
7. Analysis of expenditure on charitable activities
Summary by fund type
| Operating costs of parent company Trading of subsidiary Charitable donation |
Unrestricted funds 2024 £000 1,165 11,084 - 12,249 |
Total 2024 £000 1,165 11,084 - 12,249 |
Total 2023 £000 858 7,782 900 |
|---|---|---|---|
| 9,540 |
Summary by expenditure type
| Operating costs of parent company Trading of subsidiary Charitable donation Total 2024 Total 2023 |
Staff costs 2024 Depreciation 2024 £000 £000 - 901 2,135 1,879 - - 2,135 2,780 1,787 1,704 |
Other costs 2024 £000 264 7,070 - 7,334 6,049 |
Total 2024 £000 1,165 11,084 - 12,249 9,540 |
Tota 2023 £000 858 7,782 900 |
|---|---|---|---|---|
| 9,540 | ||||
Page 29
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
8. Analysis of expenditure by activities
| Operating costs of parent company Trading of subsidiary Charitable donation Total 2024 Total 2023 |
Activities undertaken directly 2024 £000 1,151 11,056 - 12,207 9,412 |
Support costs 2024 £000 14 28 - 42 128 |
Total funds 2024 £000 1,165 11,084 - 12,249 9,540 |
Total funds 2023 £000 858 7,782 900 |
|---|---|---|---|---|
| 9,540 | ||||
Analysis of direct costs
| Staff costs Depreciation Charitable donation Trading activities Total 2024 Total 2023 |
Operating costs of parent 2024 £000 - 901 - 250 1,151 714 |
Trading of subsidiary 2024 £000 2,135 1,879 - 7,042 11,056 7,798 |
Charitable donation 2024 £000 - - - - - 900 |
Total funds 2024 £000 2,135 2,780 - 7,292 12,207 9,412 |
Total funds 2023 £000 1,787 1,704 900 5,021 |
|---|---|---|---|---|---|
| 9,412 | |||||
Page 30
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
8. Analysis of expenditure by activities (continued)
Analysis of support costs
| Audit of Subsidiary Legal Audit of Parent Settlement Expenses Total 2024 Total 2023 |
Operating costs of parent 2024 £000 - 10 17 (13) 14 103 |
Trading of subsidiary 2024 £000 28 - - - 28 25 |
Total funds 2024 £000 28 10 17 (13) 42 128 |
Total funds 2023 £000 25 30 15 58 |
|---|---|---|---|---|
| 128 | ||||
During the year ended 31 December 2024, the company incurred the following Governance costs:
The Charity only auditor remuneration - £17k (2023: £15k) Subsidiary company auditor remuneration - £28k (2023: £25k) Taxation services - £6k (2023: £3k)
9. Net income
This is stated after charging/(crediting):
| 2024 | 2023 | |
|---|---|---|
| £000 | £000 | |
| Depreciation of tangible fixed assets owned by the charitable Group | 2,780 | 1,748 |
| Amortisation of intangible assets | - | 217 |
| Auditor's remuneration - audit | 36 | 32 |
| Auditor's remuneration - other financial services | 15 | 11 |
| Operating lease rentals | - | - |
| Profit on disposal of fixed assets | (140) | (794) |
| Pension cost | 319 | 298 |
Page 31
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
10. Staff costs
| Wages and salaries Social security costs Other pension costs |
Group 2024 £000 1,632 184 319 2,135 |
Group 2023 £000 1,346 143 298 |
|---|---|---|
| 1,787 |
The average number of persons employed by the Charity during the year was as follows:
| Group | Group | |
|---|---|---|
| 2024 | 2023 | |
| No. | No. | |
| Production and administration | 30 | 29 |
The average headcount expressed as full-time equivalents was:
| Group | Group | |
|---|---|---|
| 2024 | 2023 | |
| No. | No. | |
| Production and administration | 30 | 29 |
The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:
| Group | Group | |
|---|---|---|
| 2024 | 2023 | |
| No. | No. | |
| In the band £60,001 - £70,000 | 7 | - |
| In the band £70,001 - £80,000 | 1 | - |
| In the band £90,001 - £100,000 | - | 1 |
| In the band £100,001 - £110,000 | 1 | 1 |
| In the band £120,001 - £130,000 | 1 | - |
| In the band £130,001 - £140,000 | - | 1 |
| In the band £160,001 - £170,000 | 1 | - |
Page 32
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
11. Trustees' remuneration and expenses
One trustee who is also a director of the subsidiary company, received remuneration from the subsidiary company in relation to services provided as the general manager of the subsidiary company. No other Trustees received remuneration or pension contributions. The remuneration paid is outlined below:
| 2024 | 2023 | ||
|---|---|---|---|
| £000 | £000 | ||
| B M Conway | Remuneration | 168 | 135 |
| Company pension contributions | |||
| to defined contribution pension | |||
| schemes | 48 | 39 |
Payment is made to the Trustee as agreed with the Charity Commission.
During the year ended 31 December 2024, no Trustee expenses have been incurred (2023: £NIL).
Other related party transactions involving the Trustees are set out in note 30.
Page 33
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
12. Taxation
| Corporation tax Tax charge Total current tax Deferred tax Origination and reversal of timing differences Total deferred tax Taxation on net income |
2024 £000 - - 1,903 1,903 1,903 |
2023 £000 177 |
|---|---|---|
| 177 | ||
| 481 | ||
| 481 | ||
| 658 |
The tax assessed for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25% (2023: 25 % ). The differences are explained below:
| Effects of: Surplus on ordinary activities multiplied by the standard rate of corporation tax in the UK of 25% (2023: 25%) Expenses not deductible for tax purposes, other than goodwill amortisation and impairment Capital allowances for year in excess of depreciation Utilisation of tax losses Adjustments to tax charge in respect of prior periods Origination and reversal of timing differences Other differences leading to an increase/(decrease) in the tax charge Total tax charge for the year Surplus on ordinary activities before tax - AgReserves Limited |
2024 £000 278 233 (1,921) - - 1,903 1,410 1,903 1,113 |
2023 £000 2,724 |
|---|---|---|
| 681 46 (245) (137) (29) 481 (139) |
||
| 658 |
There were no factors that may affect future tax charges.
Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.
Page 34
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
13. Tangible fixed assets
Group
| Cost At 1 January 2024 Additions Disposals Transfers between classes At 31 December 2024 Depreciation At 1 January 2024 Charge for the year On disposals At 31 December 2024 Net book value At 31 December 2024 At 31 December 2023 |
Freehold land £000 156,471 - - 40,051 196,522 - - - - 196,522 156,471 |
Farm houses & Farm buildings £000 29,801 - - 4,809 34,610 5,824 850 - 6,674 27,936 23,977 |
Plant and machinery £000 8,129 9,562 (1,453) - 16,238 3,343 1,874 (661) 4,556 11,682 4,786 |
Land improv. Equipment and fixtures and fittings Assets in the course of construction £000 £000 1,369 2,532 - 46,360 - (25) 285 (45,145) 1,654 3,722 351 - 55 - - - 406 - 1,248 3,722 1,018 2,532 |
Total £000 198,302 55,922 (1,478) - 252,746 9,518 2,779 (661) 11,636 241,110 188,784 |
|---|---|---|---|---|---|
Page 35
FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
13. Tangible fixed assets (continued)
Charity
| Cost At 1 January 2024 Additions Disposals Transfers between classes At 31 December 2024 Depreciation At 1 January 2024 Charge for the year At 31 December 2024 Net book value At 31 December 2024 At 31 December 2023 |
Freehold land £000 156,472 - - 40,051 196,523 - - - 196,523 156,472 |
Farm houses & Farm buildings £000 30,993 - - 3,531 34,524 6,055 553 6,608 27,916 24,938 |
Land improv. Equipment and fixtures and fittings Assets in the course of construction £000 £000 91 2,532 - 46,360 - (25) 1,563 (45,145) 1,654 3,722 55 - 351 - 406 - 1,248 3,722 36 2,532 |
Total £000 190,088 46,360 (25) - 236,423 6,110 904 7,014 229,409 183,978 |
|---|---|---|---|---|
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FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
14. Fixed asset investments
| Charity Cost At 1 January 2024 At 31 December 2024 Net book value At 31 December 2024 At 31 December 2023 |
Investments in subsidiary companies £000 9,450 |
|---|---|
| 9,450 | |
| 9,450 | |
| 9,450 |
Principal subsidiaries
The following was a subsidiary undertaking of the Charity:
| Name | Company | Class of | Holding | |
|---|---|---|---|---|
| number | shares | |||
| AgReserves Limited | 02947030 | Ordinary | 100% | |
| The financial results of the subsidiary for the period were: | ||||
| Name | Income | Expenditure | Loss for the | Net assets |
| £000 | £000 | year | £000 | |
| £000 | ||||
| AgReserves Limited | 14,451 | 15,241 | 790 | 25,914 |
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FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
15. Stocks
| Cultivations Crops |
Group 2024 £000 5,752 7,667 13,419 |
Group 2023 £000 5,506 8,103 |
|---|---|---|
| 13,609 |
An impairment write-back of £818,378 (2023: £578,964) was recognised against stock during the year.
16. Debtors
| Trade debtors Amounts owed by Group undertakings Other debtors Prepayments and accrued income |
Group 2024 £000 1,990 - 388 601 2,979 |
Group 2023 £000 7,719 - 261 725 8,705 |
Charity 2024 £000 168 4,595 159 369 5,291 |
Charity 2023 £000 50 4,591 114 149 |
|---|---|---|---|---|
| 4,904 |
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
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FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
17. Creditors: Amounts falling due within one year
| Trade creditors Amounts owed to Group undertakings Other taxation and social security Other creditors Accruals and deferred income |
Group 2024 £000 978 - 131 51 579 1,739 |
Group 2023 £000 296 - 1,097 178 528 2,099 |
Charity 2024 £000 194 266 - - 281 741 |
Charity 2023 £000 57 239 5 - 122 |
|---|---|---|---|---|
| 423 |
Amounts due to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
18. Deferred taxation
Group and Charity
| 2024 | 2023 | |
|---|---|---|
| £000 | £000 | |
| At the beginning of the period | 1,404 | 923 |
| Charge for the year (SOFA) | 1,903 | 481 |
| 3,307 | 1,404 | |
| The deferred tax liability is made up as follows: |
| Group | Group | |
|---|---|---|
| 2024 | 2023 | |
| £000 | £000 | |
| Accelerated capital allowances | 2,923 | 1,200 |
| Short term timing differences | 384 | 204 |
| 3,307 | 1,404 | |
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FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
19. Statement of funds
Statement of funds - current year
| Unrestricted funds Share capital Reserves |
Balance at 1 January 2024 £000 10,000 208,392 218,392 |
Income £000 - 57,850 57,850 |
Expenditure £000 - (12,249) (12,249) |
Taxation £000 - (1,903) (1,903) |
Balance at 31 December 2024 £000 10,000 252,090 |
|---|---|---|---|---|---|
| 262,090 |
Unrestricted funds
Charitable funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the charitable company and which have not been designated for other purposes.
The Charity has taken advantage of the exemption contained within section 408 of the Companies Act 2006 not to present its own Statement of Financial Activities.
The net income for the year dealt with in the accounts of the parent charitable company was £44.5m (2023: £1.4m).
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FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
19. Statement of funds (continued)
Statement of funds - prior year
| Unrestricted funds Share capital Reserves |
Balance at 1 January 2023 £000 10,000 204,927 214,927 |
Income £000 - 13,663 13,663 |
Expenditure £000 - (9,540) (9,540) |
Taxation £000 - (658) (658) |
Balance at 31 December 2023 £000 10,000 208,392 |
|---|---|---|---|---|---|
| 218,392 |
20. Summary of funds
Summary of funds - current year
| Balance at | |||||
|---|---|---|---|---|---|
| Balance at 1 | 31 | ||||
| January | December | ||||
| 2024 | Income | Expenditure | Taxation | 2024 | |
| £000 | £000 | £000 | £000 | £000 | |
| General funds | 218,392 | 57,850 | (12,249) | (1,903) | 262,090 |
| Summary of funds - prior year | |||||
| Balance at | |||||
| Balance at | 31 | ||||
| 1 January | December | ||||
| 2023 | Income | Expenditure | Taxation | 2023 | |
| £000 | £000 | £000 | £000 | £000 | |
| General funds | 214,927 | 13,663 | (9,540) | (658) | 218,392 |
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FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
21. Analysis of net assets between funds
Analysis of net assets between funds - current period
| Unrestricted funds 2024 £000 Tangible fixed assets 241,110 Current assets 26,026 Creditors due within one year (1,739) Deferred tax (3,307) Total 2023 262,090 |
Total funds 2024 £000 241,110 26,026 (1,739) (3,307) 262,090 |
|---|---|
Analysis of net assets between funds - prior period
| Tangible fixed assets Current assets Creditors due within one year Deferred tax Total 2022 |
Unrestricted funds 2023 £000 188,784 33,111 (2,099) (1,404) 218,392 |
Total funds 2023 £000 188,784 33,111 (2,099) (1,404) 218,392 |
|---|---|---|
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FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
22. Reconciliation of net movement in funds to net cash flow from operating activities
| Net income for the period (as per Statement of Financial Activities) Adjustments for: Depreciation charges (Note 13) Amortisation of intangible assets Decrease/(Increase) in stocks (Note 15) Decrease in debtors (Note 16) Decrease in creditors (Note 17) Interest received (Note 5) Profit on disposal of fixed assets (Note 9) Taxation (Note 12) Income taxes paid Net cash provided by/(used in) operating activities 23. Analysis of cash and cash equivalents Cash in hand Total cash and cash equivalents 24. Analysis of changes in net debt At 1 January 2024 £000 Cash at bank and in hand 10,797 |
Group 2024 £000 43,698 2,779 - 190 5,726 (265) (138) (140) 1,903 (70) 53,683 Group 2024 £000 9,628 9,628 Cash flows £000 (1,169) |
Group 2023 £000 3,464 1,748 217 (3,465) 16,143 (18,307) (163) (794) 658 (147) (646) Group 2023 £000 10,797 10,797 At 31 December 2024 £000 9,628 |
|---|---|---|
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FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
25. Share capital
Allotted, called up and fully paid 10,000,000 Ordinary shares of £1 each.
26. Pension commitments
The Group participates in a pension scheme operated by The Church of Jesus Christ of Latter-day Saints (Great Britain), the Deseret UK Benefit Plans ("the Plan"). The scheme is of the defined benefit type and is funded by contributions from the participating companies and their employees at rates determined by independent actuaries in the light of regular valuations. Such contributions are held in trusteeadministered funds completely independent of group finances. Full disclosure of the valuation is shown in the accounts of The Church of Jesus Christ of Latter-day Saints (Great Britain). The group has accounted for the scheme as if it was a defined contribution scheme because it is not feasible to split the assets and liabilities of the scheme between all the companies whose employees are members.
The Group also operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
Contributions to the two schemes for the year were £319k (2023: £298k).
27. Financial risk management
The risks arising from financial instruments to which the entity is exposed at the year end are as follows:
Credit risk
In view of the recent economic downturn the Charity is making every effort to minimise exposure to customer credit risks and all appropriate steps are taken to reduce this risk.
Price risk
As part of the nature of agriculture the Charity is subject to price variations, but active efforts are made to manage this risk by taking advantage of regular market information, forward contracts, and owning sufficient storage. These storage facilities allow the Charity to price and deliver products away from the harvest window which is well known to be a period of depressed prices.
Market risk
The year end valuation, and resulting gain or loss in the Statement of Financial Activities, of financial instruments measured at fair value through income and expenditure, is subject to changes in the market value of the listed investments in which shares are held.
28. Unrestricted income funds - Charity
This reserve represents cumulative net income on unrestricted income streams. Please refer to note 20 for further details.
29. Turnover
All turnover arose within the United Kingdom.
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FARMLAND RESERVE UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2024
30. Related party transactions
The Charity has taken advantage of disclosure exemptions available within FRS 102 section 33 and not included details of any transactions with wholly owned Group companies that are included in these consolidated accounts.
31. Post balance sheet events
After the balance sheet date, the Group has entered into a contract to acquire assets for consideration of £50.9m.
32. Controlling party
The immediate and ultimate parent company of the Group is Farmland Reserve Inc, a not for profit company incorporated in the United States of America. This is the largest and smallest Group of undertakings for which Group accounts are drawn up. The Charity is directed by Farmland Reserve Inc, through budgets and plans reviewed by the Charity Trustees.
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