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REGISTERED NUMBER: 02896406 (England and Wales)






















Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 March 2023

for

Vale Garden Houses Limited

Vale Garden Houses Limited (Registered number: 02896406)






Contents of the Financial Statements
for the Year Ended 31 March 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


Vale Garden Houses Limited

Company Information
for the Year Ended 31 March 2023







DIRECTORS: Mrs D L Morton
Ms L C Morton
Mr S A C Morton
Mr D M Cheney
Mr S C J Hall
Mr C J Shelbourne
Mr J G Taylor



SECRETARY: Mrs D L Morton



REGISTERED OFFICE: Belton Park
Londonthorpe Road
Grantham
Lincolnshire
NG31 9SJ



REGISTERED NUMBER: 02896406 (England and Wales)



SENIOR STATUTORY AUDITOR: Matthew Chadwick BA (Hons) FCA



AUDITORS: Wright Vigar Limited
Statutory Auditors
Chartered Accountants & Business Advisers
15 Newland
Lincoln
Lincolnshire
LN1 1XG

Vale Garden Houses Limited (Registered number: 02896406)

Strategic Report
for the Year Ended 31 March 2023

The directors present their strategic report for the year ended 31 March 2023.

REVIEW OF BUSINESS
Vale Garden Houses Limited is a family owned and managed business whose primary activity is the design, manufacture and installation of traditional conservatories and orangeries.

Market Conditions in 2022/23
There is no doubt that general economic conditions were tough during the year. Growth in UK GDP remained flat for the year to March 2023 and the economy did not manage to return to its pre-pandemic levels. Inflation remained consistently high during the year with annual inflation to March 2023 measured at 10.1%. Regular pay, on the other hand, only increased by 6.9% in the year to March so that household incomes diminished in real terms. Meanwhile, in an attempt to control inflation, the Bank of England increased its base lending rate from 0.75% to 4.25% during the course of the year to March with subsequent rises in May, June and August and probably more increases to come. This has further contributed to a reduction in household disposable income and has acted as a drag on economic growth.

We were not alone in experiencing unprecedented increases in the cost of materials and labour during the year. This eased towards the end of the year but the short term outlook remains uncertain with a continuing war in Europe, high inflation and market uncertainty over interest rates. Although we are not able to exert control over these factors, we are better placed than most businesses to approach the coming year with confidence.

Results
Despite the economic conditions, we continued to work hard to secure a strong order book for the year ahead and continued to experience a consistent demand for our products. With a significant order book as we entered the year and with orders in the year of £7.25m, there was a regular supply of work to fully occupy both the factory and site teams throughout the year. At the year-end we had a full schedule of work throughout the rest of the calendar year, allowing us to feel confident about the year ahead.

Our turnover for the year was £8.9m compared with £7.8m in the previous year, an increase of 14.4%. Our trading profits also increased from £871k in 2022 to £986k in 2023, an increase of £115k. Taking into account rental income, interest income and property revaluations our overall pre-tax profits for the year were £1.6m (2022: £1.5m).

We remain focused on controlling overheads and, although overheads increased from £3.18m to £3.46m in the year, an increase of 8.7%, this was well below the rate of inflation.

We carry no debt whatsoever in the company and our overall cash reserves have strengthened again during the year with cash balances at the year-end of £4.7m (2022: £3.9m). Stable cash flow is a good measure of a company's performance and the strong liquidity of the company is an indicator that the company is well placed for the coming year and has the necessary resources to withstand any extended periods of uncertainty or economic instability in the future. Our strong cash position has also allowed us to continue to hold a significant level of stock, providing our clients with long term assurances and confidence in our ability to deliver projects to them.

Similarly, our balance sheet has strengthened in the year and at the year-end our net asset value stood at £17.0m (2022: £16.1m).

A key reason for the strong liquidity and strong balance sheet of the business is our policy to retain and re-invest most of our profits back into the business. With corporate bankruptcies increasing significantly, it is reassuring for our clients to know that they are dealing with a financially resilient, well-run business that will be around over the long term.

Although our focus is on trading, we do hold an investment property portfolio of both commercial and residential buildings valued at £5.7m (our sister company, Vale Property Investments Limited, also holds a portfolio of commercial and residential properties). During 2023 the portfolio generated a net income of £275k and provides another sustainable source of income for the future. Also, with the increase in bank rates, our cash holdings will allow us to earn significantly more income from bank deposit interest in future.

Investment in our business
We continue to invest in state-of-the-art technology, machinery and equipment and remain focused on improving systems, manufacturing processes and streamlining production, to create greater efficiencies throughout the whole of the business.


Vale Garden Houses Limited (Registered number: 02896406)

Strategic Report
for the Year Ended 31 March 2023

PRINCIPAL RISKS AND UNCERTAINTIES
With ongoing economic challenges and geopolitical turbulence around the world we have identified the supply of materials to the business as an ongoing risk. We have mitigated such risks by making sure our stock levels are sufficiently high and making sure that we have in place more than one supplier for our key materials.

There are some ongoing risks of skilled labour shortages which we have mitigated by paying competitive rates for our workers, multi-skilling our teams and continuing to train and develop people.

We continually monitor the market and, where appropriate, undertake forward buying to take advantage of favourable market conditions and minimise the risk posed by adverse swings in the exchange rate.

We have invested in our IT security infrastructure to ensure that we have resilient systems in the face of any IT failures or cyber attacks, through a full disaster recovery plan and off site back up processes.

ON BEHALF OF THE BOARD:





Mr S A C Morton - Director


12 October 2023

Vale Garden Houses Limited (Registered number: 02896406)

Report of the Directors
for the Year Ended 31 March 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITIES
The principal activities of the company in the year under review were those of the design, manufacture and sales of conservatories and bronze window casements, and the development and sale of residential properties.

DIVIDENDS
An interim dividend of £1,428.571 per share on the A Ordinary £1 shares was paid on 31 March 2023. The directors recommend that no final dividend be paid on these shares.

An interim dividend of £3,750 per share on the B Ordinary £1 shares was paid on 31 March 2023. The directors recommend that no final dividend be paid on these shares.

An interim dividend of £6,000 per share on the C Ordinary £1 shares was paid on 31 March 2023. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 March 2023 was £350,000.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Mrs D L Morton
Ms L C Morton
Mr S A C Morton
Mr D M Cheney
Mr S C J Hall
Mr C J Shelbourne
Mr J G Taylor

CHARITABLE DONATIONS
During the year, the company made charitable donations of £2,162 (2022: £1,164).

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.

Vale Garden Houses Limited (Registered number: 02896406)

Report of the Directors
for the Year Ended 31 March 2023


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.

ON BEHALF OF THE BOARD:



Mr S A C Morton - Director


12 October 2023

Report of the Independent Auditors to the Members of
Vale Garden Houses Limited

Opinion
We have audited the financial statements of Vale Garden Houses Limited (the 'company') for the year ended 31 March 2023 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 31 March 2023 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.

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.

Report of the Independent Auditors to the Members of
Vale Garden Houses Limited


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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.

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:

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

- We plan our work to gain an understanding of the significant laws and regulations that are of significance to the
entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its
legal and regulatory framework.
- We obtained an understanding of how the company is complying with those legal and regulatory frameworks by
making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

- Substantive procedures performed in accordance with the ISAs (UK).
- Challenging assumptions and judgments made by management in its significant accounting estimates.
- Identifying and testing journal entries, in particular material journal entries and an assessment of year end
journals.
- Assessing the extent of compliance with the relevant laws and regulations.

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.

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.




Matthew Chadwick BA (Hons) FCA (Senior Statutory Auditor)
for and on behalf of Wright Vigar Limited
Statutory Auditors
Chartered Accountants & Business Advisers
15 Newland
Lincoln
Lincolnshire
LN1 1XG

12 October 2023

Vale Garden Houses Limited (Registered number: 02896406)

Income Statement
for the Year Ended 31 March 2023

2023 2022
Notes £    £    £    £   

TURNOVER 8,944,631 7,820,789

Cost of sales 3,721,887 2,966,288
GROSS PROFIT 5,222,744 4,854,501

Selling costs 780,211 801,901
Administrative expenses 3,456,739 3,181,396
4,236,950 3,983,297
985,794 871,204

Other operating income 399,758 361,698
Gain/loss on revaluation of investment
property

100,708

203,618
OPERATING PROFIT 4 1,486,260 1,436,520

Interest receivable and similar income 84,202 68,129
PROFIT BEFORE TAXATION 1,570,462 1,504,649

Tax on profit 5 267,622 384,553
PROFIT FOR THE FINANCIAL YEAR 1,302,840 1,120,096

Vale Garden Houses Limited (Registered number: 02896406)

Other Comprehensive Income
for the Year Ended 31 March 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,302,840 1,120,096


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

1,302,840

1,120,096

Vale Garden Houses Limited (Registered number: 02896406)

Balance Sheet
31 March 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 3,906,521 3,942,980
Investments 8 94,876 100,000
Investment property 9 5,687,250 5,132,250
9,688,647 9,175,230

CURRENT ASSETS
Stocks 10 1,189,336 1,503,704
Debtors 11 5,370,046 5,338,530
Cash at bank and in hand 4,745,163 3,857,368
11,304,545 10,699,602
CREDITORS
Amounts falling due within one year 12 3,618,347 3,437,347
NET CURRENT ASSETS 7,686,198 7,262,255
TOTAL ASSETS LESS CURRENT
LIABILITIES

17,374,845

16,437,485

PROVISIONS FOR LIABILITIES 14 347,777 363,257
NET ASSETS 17,027,068 16,074,228

CAPITAL AND RESERVES
Called up share capital 15 5,400 5,400
Revaluation reserve 561,483 561,483
Retained earnings - undistributable 1,352,884 1,269,551
Retained earnings 15,107,301 14,237,794
SHAREHOLDERS' FUNDS 17,027,068 16,074,228

The financial statements were approved by the Board of Directors and authorised for issue on 12 October 2023 and were signed on its behalf by:





Mr S A C Morton - Director


Vale Garden Houses Limited (Registered number: 02896406)

Statement of Changes in Equity
for the Year Ended 31 March 2023

Called up Retained
share Retained Revaluation earnings Total
capital earnings reserve - undistributable equity
£    £    £    £    £   

Balance at 1 April 2021 5,400 13,518,263 561,483 1,168,986 15,254,132

Changes in equity
Dividends - (300,000 ) - - (300,000 )
Total comprehensive income - 1,019,531 - 100,565 1,120,096
Balance at 31 March 2022 5,400 14,237,794 561,483 1,269,551 16,074,228

Changes in equity
Dividends - (350,000 ) - - (350,000 )
Total comprehensive income - 1,219,507 - 83,333 1,302,840
Balance at 31 March 2023 5,400 15,107,301 561,483 1,352,884 17,027,068

Vale Garden Houses Limited (Registered number: 02896406)

Cash Flow Statement
for the Year Ended 31 March 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,311,336 1,646,338
Tax paid (119,714 ) (65,975 )
Net cash from operating activities 1,191,622 1,580,363

Cash flows from investing activities
Purchase of tangible fixed assets (195,370 ) (362,854 )
Purchase of investment property (2,826 ) (45,114 )
Sale of tangible fixed assets 16,266 23,251
Sale of fixed asset investments 5,124 -
Sale of investment property - 33,286
Interest received 84,202 68,129
Net cash from investing activities (92,604 ) (283,302 )

Cash flows from financing activities
Amount introduced by directors 452,069 90,451
Amount withdrawn by directors (313,292 ) (54,353 )
Equity dividends paid (350,000 ) (300,000 )
Net cash from financing activities (211,223 ) (263,902 )

Increase in cash and cash equivalents 887,795 1,033,159
Cash and cash equivalents at beginning
of year

2

3,857,368

2,824,209

Cash and cash equivalents at end of year 2 4,745,163 3,857,368

Vale Garden Houses Limited (Registered number: 02896406)

Notes to the Cash Flow Statement
for the Year Ended 31 March 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 1,570,462 1,504,649
Depreciation charges 231,829 196,890
Profit on disposal of fixed assets (16,266 ) (35,586 )
Gain on revaluation of fixed assets (100,708 ) (215,236 )
Transfer to investment property (451,466 ) -
Finance income (84,202 ) (68,129 )
1,149,649 1,382,588
Decrease/(increase) in stocks 314,368 (232,634 )
(Increase)/decrease in trade and other debtors (31,516 ) 448,341
(Decrease)/increase in trade and other creditors (121,165 ) 48,043
Cash generated from operations 1,311,336 1,646,338

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 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 4,745,163 3,857,368
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 3,857,368 2,824,209


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank and in hand 3,857,368 887,795 4,745,163
3,857,368 887,795 4,745,163
Total 3,857,368 887,795 4,745,163

Vale Garden Houses Limited (Registered number: 02896406)

Notes to the Financial Statements
for the Year Ended 31 March 2023

1. STATUTORY INFORMATION

Vale Garden Houses Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2. ACCOUNTING POLICIES

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

Changes in accounting policies
During the year land and buildings were subject to professional valuations, as a result of which they are now recognised under the revaluation method.

Turnover
Turnover represents the value of conservatories manufactured and installed, related building work, ancillary products and properties sold during the year, excluding value added tax. Turnover on conservatories and building work is represented by the value of work done on contracts during the year, where the value includes both direct costs and overheads absorbed into contracts. No profit is taken on contracts until they are complete but if a contract is showing a loss then it is recognised immediately.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Land and buildings - Nil to 1% on cost
Plant and machinery - 20% on cost
Fixtures and fittings - 6.7% - 33% on cost
Motor vehicles - 20% on cost

Freehold land is not depreciated.

Land and buildings are revalued to fair value less any subsequent accumulated depreciation and subsequent impairment losses.

Investment property
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.

Stocks and work in progress
Work in progress is valued at the lower of cost and net realisable value and stock is valued at the average cost, after making due allowance for obsolete and slow moving items.

Cost includes all direct expenditure and an appropriate proportion of production overheads.

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.


Vale Garden Houses Limited (Registered number: 02896406)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Investments
Investments are shown at the lower of cost or net realisable value and any impairment of value will be recognised in the income statement. The difference between the fair value of the investments and their cost is not considered material.

Amounts recoverable on contracts
The amount by which recorded turnover on long term contracts is in excess of payments on account is classified as amounts recoverable on contracts under debtors.

Payments on account
The balance of payments on account in excess of amounts offset against amounts recoverable on contracts and long term contract balances is classified as payments received on account under creditors,where applicable.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,325,741 2,980,886
Social security costs 406,622 352,870
Other pension costs 163,610 164,516
3,895,973 3,498,272

The average number of employees during the year was as follows:
2023 2022

Administration 47 49
Production 65 65
Directors 7 7
119 121

2023 2022
£    £   
Directors' remuneration 741,063 644,269
Directors' pension contributions to money purchase schemes 50,784 50,040

Vale Garden Houses Limited (Registered number: 02896406)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

3. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 4 4

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 154,450 153,000

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Hire of plant and machinery 16,823 16,040
Depreciation - owned assets 231,829 196,890
Profit on disposal of fixed assets (16,266 ) (35,586 )
Auditors' remuneration 18,925 17,995
Foreign exchange differences (4,440 ) (4,828 )

5. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 283,102 189,336

Deferred tax (15,480 ) 195,217
Tax on profit 267,622 384,553

UK corporation tax has been charged at 19% (2022 - 19%).

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,570,462 1,504,649
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

298,388

285,883

Effects of:
Expenses not deductible for tax purposes 855 891
Gain/Loss on fair value adjustment (19,134 ) (38,688 )
Deferred tax (15,480 ) 195,217
Capital gain on sale of property - 1,704

Capital allowances in excess of depreciation 2,993 (60,454 )
Total tax charge 267,622 384,553

Vale Garden Houses Limited (Registered number: 02896406)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

6. DIVIDENDS

2023 2022
£ £
Interim 350,000 300,000

7. TANGIBLE FIXED ASSETS
Fixtures
Land and Plant and and Motor
buildings machinery fittings vehicles Totals
£    £    £    £    £   
COST OR VALUATION
At 1 April 2022 3,819,194 2,241,157 503,814 625,391 7,189,556
Additions - 76,711 60,423 58,236 195,370
Disposals - - - (77,508 ) (77,508 )
At 31 March 2023 3,819,194 2,317,868 564,237 606,119 7,307,418
DEPRECIATION
At 1 April 2022 424,784 2,027,666 392,872 401,254 3,246,576
Charge for year 30,392 72,179 50,847 78,411 231,829
Eliminated on disposal - - - (77,508 ) (77,508 )
At 31 March 2023 455,176 2,099,845 443,719 402,157 3,400,897
NET BOOK VALUE
At 31 March 2023 3,364,018 218,023 120,518 203,962 3,906,521
At 31 March 2022 3,394,410 213,491 110,942 224,137 3,942,980

Included in cost or valuation of land and buildings is freehold land of £ 516,397 (2022 - £ 516,397 ) which is not depreciated.


8. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST OR VALUATION
At 1 April 2022 100,000
Disposals (5,124 )
At 31 March 2023 94,876
NET BOOK VALUE
At 31 March 2023 94,876
At 31 March 2022 100,000

Cost or valuation at 31 March 2023 is represented by:

Unlisted
investments
£   
Cost 94,876

Vale Garden Houses Limited (Registered number: 02896406)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

9. INVESTMENT PROPERTY
Total
£   
FAIR VALUE
At 1 April 2022 5,132,250
Additions 2,826
Fair value adjustments 100,708
Reclassification/transfer 451,466
At 31 March 2023 5,687,250
NET BOOK VALUE
At 31 March 2023 5,687,250
At 31 March 2022 5,132,250

Cost or valuation of investment properties at 31 March 2023 is represented by:

£
Valuations 1,404,245
Cost 4,283,005
5,687,250

An analysis of the properties, categorised by the firm undertaking their valuation is as follows:

£
Wood Moore & Co Ltd 1,389,500
Winkworth 2,495,000
Bickford Limited 577,750
Fine & Country 1,225,000
5,687,250

Wood Moore & Co Ltd has valued the investment properties based on comparable and investment methods of valuation and analysed recent transactions of similar properties within the vicinity and, where, required, capitalised a projected leasehold value in order to reach a freehold/capital value. The firm has relevant professional qualifications and recent experience in the location and category of the investment property.

Winkworth has valued the investment properties on an open market basis where the firm has relevant professional qualifications and recent experience in the location and category of the investment property.

Bickford Limited has valued the investment properties on an open market basis where the individual has no relevant professional qualification but has recent and long term experience of the geographical location where the properties are held and in the type of properties held.

Fine & Country has valued the investment properties on an open market basis where the firm has relevant professional qualifications and recent experience in the location and category of the investment property.

10. STOCKS
2023 2022
£    £   
Stocks 1,044,079 1,312,242
Work-in-progress 145,257 191,462
1,189,336 1,503,704

Vale Garden Houses Limited (Registered number: 02896406)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

11. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 532,392 619,322
Amounts recoverable on contracts 42,731 69,068
Other debtors 3,482,296 3,350,832
Prepayments and accrued income 312,627 299,308
4,370,046 4,338,530

Amounts falling due after more than one year:
Other debtors 1,000,000 1,000,000

Aggregate amounts 5,370,046 5,338,530

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 444,865 537,330
Corporation tax 271,976 108,588
Social security and other taxes 85,372 86,739
VAT 194,394 101,655
Other creditors 185,742 148,915
Payments on account 1,581,616 1,930,059
Directors' loan accounts 361,477 222,700
Accruals and deferred income 492,905 301,361
3,618,347 3,437,347

13. LEASING AGREEMENTS
Minimum lease receipts fall due as follows:

Non-cancellable operating
leases
2023 2022
£ £

Within one year 158,155 160,000
Between one and five years 240,144 382,833
More than five years - -
398,299 542,833

14. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 347,777 363,257

Deferred
tax
£   
Balance at 1 April 2022 363,257
Property valuation 17,375
Accelerated capital allowances (32,855 )
Balance at 31 March 2023 347,777

Vale Garden Houses Limited (Registered number: 02896406)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2023

15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
35 A Ordinary £1 35 35
40 B Ordinary £1 40 40
25 C Ordinary £1 25 25
100 100

Allotted and issued:
Number: Class: Nominal 2023 2022
value: £ £
530,000 E Ordinary £1 5,300 5,300
Only 1p in the £1 is paid up in relation to the E shares.

16. RELATED PARTY DISCLOSURES

Other related parties
2023 2022
£    £   
Sales 1,274,632 1,228,438
Purchases - 35,707
Amount due from related party 2,826,414 2,736,538
Amount due to related party 3,622 87,463