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COMPANY REGISTRATION NUMBER: 00651044
Boningale Limited
Filleted Financial Statements
30 September 2021
Boningale Limited
Financial Statements
Year ended 30 September 2021
Contents
Pages
Statement of financial position
1 to 2
Notes to the financial statements
3 to 13
Boningale Limited
Statement of Financial Position
30 September 2021
2021
2020
Note
£
£
Fixed assets
Intangible assets
6
30,417
35,667
Tangible assets
7
955,455
1,039,835
---------
------------
985,872
1,075,502
Current assets
Stocks
8
1,521,027
1,286,694
Debtors
9
1,389,818
1,315,621
Cash at bank and in hand
84,616
40,802
------------
------------
2,995,461
2,643,117
Creditors: amounts falling due within one year
10
2,851,533
2,457,424
------------
------------
Net current assets
143,928
185,693
------------
------------
Total assets less current liabilities
1,129,800
1,261,195
Creditors: amounts falling due after more than one year
11
39,902
82,506
Provisions
Taxation including deferred tax
76,406
55,519
------------
------------
Net assets
1,013,492
1,123,170
------------
------------
Capital and reserves
Called up share capital
13
4,256
4,256
Capital redemption reserve
5,950
5,950
Profit and loss account
1,003,286
1,112,964
------------
------------
Shareholders funds
1,013,492
1,123,170
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
Boningale Limited
Statement of Financial Position (continued)
30 September 2021
These financial statements were approved by the board of directors and authorised for issue on 11 July 2022 , and are signed on behalf of the board by:
T C T Edwards
Director
Company registration number: 00651044
Boningale Limited
Notes to the Financial Statements
Year ended 30 September 2021
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Boningale Nurseries, Holyhead Road, Albrighton, Wolverhampton, WV7 3AT.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
In the preparation of the financial statements, management makes certain judgements and estimates that impact the financial statements. The judgements, estimates and assumptions that have the most significant effect on the carrying value of assets and liabilities of the company as at 30 September 2021 are discussed below:- Carrying value of stocks Allowance for slow moving and loss making stock is based on estimates determined by market knowledge and past experience. Taxation Deferred tax liabilities are generally provided for in full and deferred tax assets are recognised to the extent that it is judged probable that future taxable profit will arise against which the temporary differences will be utilised. Carrying value of trade and other receivables Allowance for doubtful debt and provisions against other receivables, are made on a specific basis, based on estimates or irrecoverability determined by market knowledge and past experience.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the risks and rewards of ownership of the goods have transferred to the buyer, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.
Research and development
Research and development expenditure is written off in the year in which it is incurred.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Foreign currencies
Transactions in foreign currencies are translated at an assumed annual exchange rate which is decided by management at the beginning of the financial year. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the date when the fair value was determined. Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.
Exchange differences arising on the settlement of monetary items and on the retranslation of monetary items are taken to the statement of comprehensive income. Exchange differences arising on non-monetary items, carried at fair value, are included in the statement of comprehensive income, except for the differences arising on the retranslation of non-monetary items in respect of which gains and losses are recorded in equity. For such non-monetary, any exchange component of that gain or loss is also recognised directly in equity.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill
-
10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold Property
-
4 - 10% straight line
Plant and Machinery
-
10 - 20% straight line
Fixtures, Fittings and Equipment
-
10 - 33.33% straight line
Motor Vehicles
-
20 - 25% straight line
Computer Equipment
-
10 - 33.33% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks and work in progress are stated at the lower of cost and net realisable value. In general, cost is determined on a first in first out basis and includes plants, labour and appropriate overheads. Net realisable value is the price at which stocks can be sold in the normal course of business after allowing for the costs of realisation and, where appropriate, the cost of conversion from their existing state to a finished condition. Provision is made where necessary for immature, slow-moving and defective stocks.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. These other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship. Trade receivables Trade receivables do not carry any interest and are stated at their nominal value as reduced by appropriate allowances for estimated irrecoverable amounts. Cash and cash equivalents Cash and cash equivalents comprise cash in hand and demand deposits, and other short term highly liquid investments that are readily recoverable to a known amount of cash and are subject to an insignificant risk of changes in value. Interest-bearing loans and borrowings All loans and borrowings are recognised initially at cost, which is the fair value of the consideration received, net of issue costs associated with the borrowing. After initial recognition, interest-bearing loans and borrowings are measured at amortised cost using the effective interest method. Gains or losses are recognised in the statement of comprehensive income when liabilities are derecognised or impaired, as well as through the amortisation process. Trade payables Trade payables are not interest bearing and are stated at their nominal value.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 107 (2020: 96 ).
5. Tax on loss
Major components of tax income
2021
2020
£
£
Current tax:
UK current tax income
( 6,199)
( 67,496)
Adjustments in respect of prior periods
( 59,903)
---------
---------
Total current tax
( 66,102)
( 67,496)
---------
---------
Deferred tax:
Origination and reversal of timing differences
20,887
1,390
---------
---------
Tax on loss
( 45,215)
( 66,106)
---------
---------
Reconciliation of tax income
The tax assessed on the loss on ordinary activities for the year is lower than (2020: higher than) the standard rate of corporation tax in the UK of 19 % (2020: 19 %).
2021
2020
£
£
Loss on ordinary activities before taxation
( 27,012)
( 404,443)
---------
---------
Loss on ordinary activities by rate of tax
( 5,132)
( 76,844)
Adjustment to tax charge in respect of prior periods
( 59,903)
Effect of expenses not deductible for tax purposes
8,407
4,056
Effect of capital allowances and depreciation
( 26,541)
1,019
Deferred tax
20,887
1,390
Chargeable gain
17,067
Losses carried back
4,273
---------
---------
Tax on loss
( 45,215)
( 66,106)
---------
---------
6. Intangible assets
Goodwill
Website
Total
£
£
£
Cost
At 1 October 2020
60,000
60,000
Additions
750
750
---------
---------
---------
At 30 September 2021
60,000
750
60,750
---------
---------
---------
Amortisation
At 1 October 2020
24,333
24,333
Charge for the year
6,000
6,000
---------
---------
---------
At 30 September 2021
30,333
30,333
---------
---------
---------
Carrying amount
At 30 September 2021
29,667
750
30,417
---------
---------
---------
At 30 September 2020
35,667
35,667
---------
---------
---------
7. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Computer Equipment
Total
£
£
£
£
£
£
Cost
At 1 Oct 2020
1,400,786
1,206,869
146,860
130,542
776,700
3,661,757
Additions
25,180
79,409
4,859
25,787
89,948
225,183
Disposals
( 129,999)
( 1,750)
( 21,091)
( 152,840)
------------
------------
---------
---------
---------
------------
At 30 Sep 2021
1,295,967
1,284,528
151,719
135,238
866,648
3,734,100
------------
------------
---------
---------
---------
------------
Depreciation
At 1 Oct 2020
737,922
1,003,376
127,988
118,296
634,340
2,621,922
Charge for the year
34,529
84,832
3,928
16,747
39,528
179,564
Disposals
( 1,750)
( 21,091)
( 22,841)
------------
------------
---------
---------
---------
------------
At 30 Sep 2021
772,451
1,086,458
131,916
113,952
673,868
2,778,645
------------
------------
---------
---------
---------
------------
Carrying amount
At 30 Sep 2021
523,516
198,070
19,803
21,286
192,780
955,455
------------
------------
---------
---------
---------
------------
At 30 Sep 2020
662,864
203,493
18,872
12,246
142,360
1,039,835
------------
------------
---------
---------
---------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
Computer Equipment
Total
£
£
£
At 30 September 2021
32,507
1,491
33,998
---------
---------
---------
At 30 September 2020
79,991
7,522
87,513
---------
---------
---------
8. Stocks
2021
2020
£
£
Growing plants
1,521,027
1,286,694
------------
------------
Stock recognised in cost of sales during the year as an expense was £4,770,727 (2020 £4,273,603).
9. Debtors
2021
2020
£
£
Trade debtors
1,025,758
1,125,879
Other debtors
364,060
189,742
------------
------------
1,389,818
1,315,621
------------
------------
10. Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans and overdrafts
22,671
124,927
Trade creditors
1,497,655
1,110,262
Corporation tax
3
Social security and other taxes
283,765
457,578
Other creditors
1,047,442
764,654
------------
------------
2,851,533
2,457,424
------------
------------
Bank loans, overdraft and pension loan of £22,671 (2020: £74,927) and the advances against book debts of £919,312 (2020: £606,129) are secured by the company.
The bank loan and overdraft are secured by a fixed charge on freehold land and buildings, fixed plant and machinery together with a floating charge over all other assets except book debts which the advances against book debts is secured by.
The pension loan is secured on a specific tranche of land.
Interest is payable on the bank loan at 2.4% above the HSBC Bank base rate.
Bank loan of £Nil (2020: £50,000) is a bounceback loan that was unsecured by the company but guaranteed by the government. This loan was repaid in November 2020.
11. Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
36,131
58,837
Other creditors
3,771
23,669
---------
---------
39,902
82,506
---------
---------
The bank loans and overdraft of £36,131 (2020: £58,837) are secured by the company.
The bank loan and overdraft are secured by a fixed charge on freehold land and buildings, fixed plant and machinery together with a floating charge over all other assets except book debts.
Interest is payable on the bank loan at 2.4% above the HSBC Bank base rate.
12. Financial instruments
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or income as appropriate. The company does not currently apply hedge accounting for interest rate and foreign exchange derivatives. Within other creditors: amounts falling due within one year is derivative financial liability of £Nil (2020: £Nil).
13. Called up share capital
Issued, called up and fully paid
2021
2020
No
£
No
£
Ordinary shares of £ 1 each
4,200
4,200
4,200
4,200
"B" Ordinary shares of £ 1 each
56
56
56
56
---------
---------
---------
---------
4,256
4,256
4,256
4,256
---------
---------
---------
---------
The ordinary shares entitle the holders to vote at general meetings of the company and rank pari passu on dissolution. The shares have no restrictions on the distribution of dividends and the repayment of capital. The "B" ordinary shares do not entitle the holders to vote at general meetings of the company and do not rank pari passu on dissolution. The shares have no restrictions on the distribution of dividends and the repayment of capital.
14. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2021
2020
£
£
Not later than 1 year
117,481
52,268
Later than 1 year and not later than 5 years
330,797
48,520
Later than 5 years
552,333
------------
---------
1,000,611
100,788
------------
---------
15. Financial risk management objectives and policies
The company holds or issues financial instruments in order to achieve three main objectives, being:
(a) to finance its operations;
(b) to manage its exposure to interest and currency risks arising from its operations and from its sources of finance; and
(c) for trading purposes.
In addition, various financial instruments (e.g. trade debtors, trade creditors, accruals and prepayments) arise directly from the company's operations.
Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.
Credit risk
The company monitors credit risk closely and considers that its current policies of credit checks meets its objectives of managing exposure to credit risk.
The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments.
Liquidity risk
The company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and debentures.
Cash flow risk
The company monitors cash flow closely by producing forecasts to monitor cash flow requirements. The forecasts are reviewed and updated regularly.
Price risk
The company's objective is to maintain an acceptable commercial margin on jobs by monitoring sales and cost prices regularly.
16. Summary audit opinion
The auditor's report for the year dated 11 July 2022 was unqualified .
The senior statutory auditor was John Hitchen BA FCA , for and on behalf of Garratts Wolverhampton Limited .
17. Directors' advances, credits and guarantees
During the year, the company advanced £322 (2020: £121) to directors which has no main conditions or interest rates in place. The amount of the advance repaid during the year amounted to £Nil (2020: £Nil). Amounts due from directors at the year end amounted to £18,206 (2020: £17,501).
18. Related party transactions
The company was under the control of the directors throughout the current and previous year.