REGISTERED NUMBER: |
Berwick-Upon-Tweed Garden Centre Limited |
Strategic Report, |
Report of the Directors and |
Audited Financial Statements |
for the Year Ended 30th November 2021 |
REGISTERED NUMBER: |
Berwick-Upon-Tweed Garden Centre Limited |
Strategic Report, |
Report of the Directors and |
Audited Financial Statements |
for the Year Ended 30th November 2021 |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Contents of the Financial Statements |
for the year ended 30th November 2021 |
Page |
Company information | 1 |
Strategic report | 2 |
Report of the directors | 3 | to | 4 |
Report of the independent auditors | 5 | to | 8 |
Income statement | 9 |
Other comprehensive income | 10 |
Balance sheet | 11 |
Statement of changes in equity | 12 |
Cash flow statement | 13 |
Notes to the cash flow statement | 14 |
Notes to the financial statements | 15 | to | 24 |
Berwick-Upon-Tweed Garden Centre Limited |
Company Information |
for the year ended 30th November 2021 |
Directors: |
Secretary: |
Registered office: |
Business address: |
Registered number: |
Senior statutory auditor: |
Auditors: |
Academy House |
Shedden Park Road |
Kelso |
Roxburghshire |
TD5 7AL |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Strategic Report |
for the year ended 30th November 2021 |
The directors present their strategic report for the year ended 30th November 2021. |
Review of business |
Despite the Covid 19 pandemic this was another successful year for Berwick-Upon-Tweed Garden Centre Limited. The three garden centres comprising the group saw improving turnover levels. The Berwick Garden Centre saw a 17% rise in turnover, Dunbar achieved a 19% increase in their turnover whilst Plantsplus obtained a 30% increase. With reduced government support and periods of strong trading when operational, the operating profit has decreased by 1% compared to last year, which was somewhat expected with the reduction in support schemes like the Job Retention Scheme's. |
Principal risks and uncertainties |
As usual, the principle risk to the company emanates from local competition. Plantsplus Garden Centre has three Dobbies' garden centres all within a radius of 20 miles while there also remains local competition at the other sites. There is also recognised competition from websites and Berwick-Upon-Tweed Garden Centre Limited have adapted to accept online sales for home delivery and click and collect services. |
The company has continued to make a profit throughout the corona virus pandemic. Restrictions have made operating conditions extremely difficult but the business has enjoyed strong trading when the centres have been operational. Overall financial performance has been good and is expected to be so in the coming 12 months. |
Development and performance |
The results for the year show a profit on ordinary activities before tax of £1,170,726 (2020: £1,165,610). The Board are satisfied with the performance for the financial year considering the COVID disruptions. |
The board monitor the progress of the company by the following KPIs: |
Turnover - 2021 - £8,621,238 2020 - £7,105,392 |
GP - 2021 - 47 % 2020 - 52% |
On behalf of the board: |
16th August 2022 |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Report of the Directors |
for the year ended 30th November 2021 |
The directors present their report with the financial statements of the company for the year ended 30th November 2021. |
Principal activity |
The principal activity of the company in the year under review was that of the operation of garden centres. |
Dividends |
No interim dividend was paid during the year. The directors recommend a final dividend of £7.00 per share. |
The total distribution of dividends for the year ended 30th November 2021 will be £130,122. |
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 1st December 2020 to the date of this report. |
Other changes in directors holding office are as follows: |
Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic report, the Report of the directors 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; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Report of the Directors |
for the year ended 30th November 2021 |
Auditors |
The auditors, Rennie Welch Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Berwick-Upon-Tweed Garden Centre Limited |
Opinion |
We have audited the financial statements of Berwick-Upon-Tweed Garden Centre Limited (the 'company') for the year ended 30th November 2021 which comprise the Income statement, Other comprehensive income, Balance sheet, Statement of changes in equity, Cash flow statement and Notes to the cash flow statement, Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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: |
- | give a true and fair view of the state of the company's affairs as at 30th November 2021 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and 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 directors' 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 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 directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic report and the Report of the directors, but does not include the financial statements and our Report of the auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic report and the Report of the directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic report and the Report of the directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Berwick-Upon-Tweed Garden Centre Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Report of the directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
- the directors were not entitled to prepare the financial statements in accordance with the small companies |
regime and take advantage of the small companies' exemption from the requirement to prepare a |
Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of directors' responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Berwick-Upon-Tweed Garden Centre Limited |
Auditors' 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 a Report of the auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
Audit response to risks identified |
- The nature of the industry and sector, control environment and business performance. |
- Any matters we identified having obtained and reviewed the company's documentation of their policies and |
procedures relating to: |
-- Identifying, evaluating and complying with laws and regulations and whether they were aware of any |
instances of non-compliance. |
-- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected |
or alleged fraud. |
-- The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations. |
- The matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and have not identified any significant areas with potential fraud to occur. We hold this basis on that the company is classified under the Companies Act 2006 as a medium company for reporting anomalies would be detected. |
Further to this no non-routine financial accounting has taken place from which we would expect an increase of fraud or error to occur. |
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty. |
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 Report of the auditors. |
Report of the Independent Auditors to the Members of |
Berwick-Upon-Tweed Garden Centre Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Academy House |
Shedden Park Road |
Kelso |
Roxburghshire |
TD5 7AL |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Income Statement |
for the year ended 30th November 2021 |
2021 | 2020 |
Notes | £ | £ |
Turnover | 3 |
Cost of sales | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) |
1,175,705 | 1,110,072 |
Other operating income |
Operating profit | 5 |
Interest receivable and similar income |
1,236,104 | 1,245,817 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
Profit before taxation |
Tax on profit | 7 | ( |
) | ( |
) |
Profit for the financial year |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Other Comprehensive Income |
for the year ended 30th November 2021 |
2021 | 2020 |
Notes | £ | £ |
Profit for the year |
Other comprehensive income | - | - |
Total comprehensive income for the year |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Balance Sheet |
30th November 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 9 |
Tangible assets | 10 |
Current assets |
Stocks | 11 |
Debtors | 12 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 13 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
Provisions for liabilities | 18 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 19 |
Share premium | 20 |
Retained earnings | 20 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Statement of Changes in Equity |
for the year ended 30th November 2021 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1st December 2019 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30th November 2020 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30th November 2021 |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Cash Flow Statement |
for the year ended 30th November 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
448,190 |
Cash and cash equivalents at end of year |
2 |
1,419,384 |
1,809,710 |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Notes to the Cash Flow Statement |
for the year ended 30th November 2021 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2021 | 2020 |
£ | £ |
Profit before taxation |
Depreciation charges |
Government grants | ( |
) | ( |
) |
Finance costs | 65,378 | 80,207 |
Finance income | (7,933 | ) | (3,628 | ) |
1,585,968 | 1,568,894 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | Cash and cash equivalents |
The amounts disclosed on the Cash flow statement in respect of cash and cash equivalents are in respect of these Balance sheet amounts: |
Year ended 30th November 2021 |
30.11.21 | 1.12.20 |
£ | £ |
Cash and cash equivalents | 1,419,384 | 1,809,710 |
Year ended 30th November 2020 |
30.11.20 | 1.12.19 |
£ | £ |
Cash and cash equivalents | 1,809,710 | 448,190 |
3. | Analysis of changes in net debt |
At 1.12.20 | Cash flow | At 30.11.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,809,710 | (390,326 | ) | 1,419,384 |
1,809,710 | ( |
) | 1,419,384 |
Debt |
Finance leases | (56,312 | ) | 16,860 | (39,452 | ) |
Debts falling due within 1 year | (158,169 | ) | (23,802 | ) | (181,971 | ) |
Debts falling due after 1 year | (3,435,629 | ) | 904,923 | (2,530,706 | ) |
(3,650,110 | ) | 897,981 | (2,752,129 | ) |
Total | (1,840,400 | ) | 507,655 | (1,332,745 | ) |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Notes to the Financial Statements |
for the year ended 30th November 2021 |
1. | Statutory information |
Berwick-Upon-Tweed Garden Centre Limited is a |
2. | Accounting policies |
Basis of preparing the financial statements |
Turnover |
Turnover is the amount derived from ordinary activities, and is measured at the fair value of the consideration received or receivable. Turnover is reduced for estimated customer returns, rebates and other similar allowances, and is stated net of VAT. |
Revenue from sale of goods is recognised when all the following conditions are satisfied: |
- the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; |
- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the economic benefits associated with the transaction will flow to the company; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over it's estimated useful life or, if held under a finance lease, over the lease term, whichever is shorter. |
Land and buildings - 5% on cost, 3% on cost and 2% on cost |
Plant and machinery - 33.33% on cost, 25% on reducing balance, 10% on cost |
Fixtures and fittings - 20% on cost and 10% on cost |
Motor vehicles - 25% on reducing balance |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
Government grants |
Government grants in respect of Coronavirus assistance schemes are recognised in the period they are received and are charged through the income statement in that year. |
Other government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met. |
These grants are credited to deferred government grants. Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets. Grants towards revenue expenditure are released to the income statement as the related expenditure is incurred. |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Notes to the Financial Statements - continued |
for the year ended 30th November 2021 |
2. | Accounting policies - continued |
Stocks |
Stock is valued at the lower of cost and estimated selling price less costs to sell. In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of completion. |
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down of loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised as an expense in the period in which the reversal occurs. |
Financial instruments |
The following assets and liabilities are classified as financial instruments - trade debtors, other debtors, trade creditors, other creditors, accruals, bank loans and directors' loans. |
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction cost, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing. Interest expenses is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. |
Hire purchase contracts are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method. |
Trade debtors and other debtors are amounts due from customers for goods sold or services performed in the ordinary course of business. Trade debtors with no stated interest rate are recognised initially at the transaction price. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables. |
Trade creditors, other creditors and accruals are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditors for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities. Trade creditors with no stated interest rate are recognised at the transaction price. |
Directors' loans (being repayable on demand) are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. |
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. |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Notes to the Financial Statements - continued |
for the year ended 30th November 2021 |
2. | Accounting policies - continued |
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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Provisions |
Provisions are set up only where it is probable that a present obligation exists as a result of an event prior to the balance sheet date and that a payment will be required in settlement that can be estimated reliably. Where material, provisions are calculated on a discounted basis. |
Employee benefits |
Short term employee benefits, including holiday pay, are recognised as an expense in the Income Statement in the period in which they are incurred. |
Going concern |
Despite the very unpredictable development of the Covid-19 pandemic, the director of the company has after extensive planning derived at a conclusion that this event should not have a material impact on the business therefore the going concern of the company is currently not at risk. |
3. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2021 | 2020 |
£ | £ |
United Kingdom | 8,621,238 | 7,105,392 |
8,621,238 | 7,105,392 |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Notes to the Financial Statements - continued |
for the year ended 30th November 2021 |
4. | Employees and directors |
2021 | 2020 |
£ | £ |
Wages and salaries | 1,859,296 | 1,614,414 |
Social security costs | 136,683 | 111,991 |
Other pension costs | 1,323 | 1,039 |
1,997,302 | 1,727,444 |
The average number of employees during the year was as follows: |
2021 | 2020 |
150 | 142 |
Directors' emoluments |
2021 | 2020 |
£ | £ |
Directors' remuneration | 116,131 | 79,000 |
Directors' social security costs | 13,567 | 8,484 |
Directors' pension contributions to money purchase schemes | 1,323 | 1,039 |
131,021 | 88,523 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 1 |
5. | Operating profit |
The operating profit is stated after charging: |
2021 | 2020 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Goodwill amortisation |
Auditors' remuneration |
Cost of stocks recognised as an expense |
6. | Interest payable and similar expenses |
2021 | 2020 |
£ | £ |
Bank interest |
Hire purchase interest |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Notes to the Financial Statements - continued |
for the year ended 30th November 2021 |
7. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax |
Corporation tax adjustment re previous year | (373 | ) | 2,180 |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Adjustments to tax charge in respect of previous periods | ( |
) |
Deferred tax expense | 44,347 | (108,824 | ) |
Total tax charge | 232,722 | 120,123 |
8. | Dividends |
2021 | 2020 |
£ | £ |
Final |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Notes to the Financial Statements - continued |
for the year ended 30th November 2021 |
9. | Intangible fixed assets |
Goodwill |
£ |
Cost |
At 1st December 2020 |
and 30th November 2021 |
Amortisation |
At 1st December 2020 |
Amortisation for year |
At 30th November 2021 |
Net book value |
At 30th November 2021 |
At 30th November 2020 |
10. | Tangible fixed assets |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Cost |
At 1st December 2020 |
Additions |
At 30th November 2021 |
Depreciation |
At 1st December 2020 |
Charge for year |
At 30th November 2021 |
Net book value |
At 30th November 2021 |
At 30th November 2020 |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Notes to the Financial Statements - continued |
for the year ended 30th November 2021 |
10. | Tangible fixed assets - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
Cost |
At 1st December 2020 |
and 30th November 2021 |
Depreciation |
At 1st December 2020 |
Charge for year |
At 30th November 2021 |
Net book value |
At 30th November 2021 |
At 30th November 2020 |
11. | Stocks |
2021 | 2020 |
£ | £ |
Stocks |
12. | Debtors: amounts falling due within one year |
2021 | 2020 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
13. | Creditors: amounts falling due within one year |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Tax |
VAT |
Other creditors |
Directors' current accounts |
Accrued expenses |
Deferred government grants |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Notes to the Financial Statements - continued |
for the year ended 30th November 2021 |
14. | Creditors: amounts falling due after more than one year |
2021 | 2020 |
£ | £ |
Bank loans (see note 15) |
Hire purchase contracts (see note 16) |
Deferred government grants |
15. | Loans |
An analysis of the maturity of loans is given below: |
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Covid loan | - | 700,000 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans due after five years |
16. | Leasing agreements |
Minimum lease payments under hire purchase fall due as follows: |
2021 | 2020 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Notes to the Financial Statements - continued |
for the year ended 30th November 2021 |
17. | Secured debts |
The following secured debts are included within creditors: |
2021 | 2020 |
£ | £ |
Bank loans |
Hire purchase contracts | 39,452 | 56,312 |
Hallhill Development Limited hold security over all and whole the subjects lying to the east of Spott Road, Hallhill, Dunbar. |
Royal Bank of Scotland PLC hold security over all and whole the subjects lying to the east of Spott Road, Hallhill, Dunbar. |
Clydesdale Bank PLC hold security over the below noted assets: |
- A floating charge over all of the assets in the business. |
- All the property comprised in the freehold land known as Horton Grange, Berwick Hill Road, Newcastle-Upon-Tyne. |
- All the property comprised in the freehold land lying to the north west of Millfield Place, East Ord, Berwick. |
- All and whole the subjects lying to the east of Spott Road, Hallhill, Dunbar. |
Hire purchase contracts are secured against the assets to which they relate. |
18. | Provisions for liabilities |
2021 | 2020 |
£ | £ |
Deferred tax | 93,116 | 48,769 |
Deferred |
tax |
£ |
Balance at 1st December 2020 |
Charge to Income statement during year |
Balance at 30th November 2021 |
19. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary | £1 | 28,916 | 28,916 |
Berwick-Upon-Tweed Garden Centre Limited (Registered number: SC079988) |
Notes to the Financial Statements - continued |
for the year ended 30th November 2021 |
20. | Reserves |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1st December 2020 | 4,445,860 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30th November 2021 | 5,253,742 |
21. | Capital commitments |
2021 | 2020 |
£ | £ |
Contracted but not provided for in the |
financial statements |
22. | Post balance sheet events |
Since the year end, on 19th July 2022, a dividend of £7.00 per share has been declared and paid. |