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Registered number: 02685960
















WESTCOUNTRY GARDEN CENTRES LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2022


































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WESTCOUNTRY GARDEN CENTRES LIMITED

 
COMPANY INFORMATION


DIRECTORS
Mr M I Hassall 
Mrs J R K Hassall 




COMPANY SECRETARY
Mrs J R K Hassall



REGISTERED NUMBER
02685960



REGISTERED OFFICE
Carnon Downs Garden Centre Ltd
Quenchwell Road

Carnon Downs

Truro

TR3 6LN




INDEPENDENT AUDITORS
Bishop Fleming LLP
Chartered Accountants & Statutory Auditors

Chy Nyverow

Newham Road

Truro

Cornwall

TR1 2DP






WESTCOUNTRY GARDEN CENTRES LIMITED


CONTENTS



Page
Group strategic report
 
1
Directors' report
 
2 - 3
Independent auditors' report
 
4 - 7
Consolidated statement of income and retained earnings
 
8
Consolidated statement of financial position
 
9
Company statement of financial position
 
10
Consolidated statement of changes in equity
 
11 - 12
Company statement of changes in equity
 
13 - 14
Consolidated statement of cash flows
 
15
Consolidated analysis of net debt
 
16
Notes to the financial statements
 
17 - 30



WESTCOUNTRY GARDEN CENTRES LIMITED

 
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2022

INTRODUCTION
 
The directors present their strategic review for the group for the period ended 31 December 2022.

BUSINESS REVIEW
 
The group consisted of two Garden Centres in Carnon Downs and West Buckland with the sale of Blackdown Garden Centre on 7 January 2022 at the end of the previous accounting period. The results for the group show a pre-tax profit of £742,250 (7 January 2022: £2,885,686) for the period and sales of £2,987,229 (7 January 2022: £5,049,286). The group has no bank borrowings and is financed by retained earnings.

PRINCIPAL RISKS AND UNCERTAINTIES
 
The main risk to the group is the weather due to the nature of the principal activity of the group which is highly seasonal. The director seeks to mitigate this risk by increasing its investment in its restaurants and concessions which are less weather dependent.

FINANCIAL KEY PERFORMANCE INDICATORS
 
The key performance indicator are the gross profit margin and wages costs as a percentage of sales. These are  monitored by the director on a regular basis.


This report was approved by the board and signed on its behalf.



Mr M I Hassall
Director

Date: 29 September 2023

Page 1


WESTCOUNTRY GARDEN CENTRES LIMITED

 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2022

The Directors present their report and the financial statements for the period ended 31 December 2022.

DIRECTORS' RESPONSIBILITIES STATEMENT

The Directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RESULTS AND DIVIDENDS

The profit for the period, after taxation, amounted to £597,651 (2022: £2,664,778).

No dividends were proposed.

DIRECTORS

The Directors who served during the period were:

Mr M I Hassall 
Mrs J R K Hassall 

PRINCIPAL RISKS AND UNCERTAINTIES

The main risk to the group is the weather due to the nature of the principal activity of the group which is highly seasonal. The director seeks to mitigate this risk by increasing its investment in its restaurants and concessions which are less weather dependent.

FUTURE DEVELOPMENTS

The company will continue to increase investment in its restaurants and concessions which are less weather dependent.

Page 2


WESTCOUNTRY GARDEN CENTRES LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Group since the period end.

AUDITORS

The auditorsBishop Fleming LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 






Mr M I Hassall
Director

Date: 29 September 2023

Carnon Downs Garden Centre Ltd
Quenchwell Road
Carnon Downs
Truro
TR3 6LN

Page 3


WESTCOUNTRY GARDEN CENTRES LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WESTCOUNTRY GARDEN CENTRES LIMITED
OPINION


We have audited the financial statements of Westcountry Garden Centres Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 31 December 2022, which comprise the Consolidated statement of income and retained earnings, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 December 2022 and of the Group's profit for the period 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


CONCLUSIONS RELATING TO GOING CONCERN


In auditing the financial statements, we have concluded that the 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 Group's or the parent 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.


Page 4


WESTCOUNTRY GARDEN CENTRES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WESTCOUNTRY GARDEN CENTRES LIMITED (CONTINUED)

OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the Directors are responsible for assessing the Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 5


WESTCOUNTRY GARDEN CENTRES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WESTCOUNTRY GARDEN CENTRES LIMITED (CONTINUED)

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 an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities

We have considered the nature of the industry and sector, control environment and business performance, key drivers for directors’ remuneration, bonus levels and performance targets;
We have considered the results of our enquiries of management about their own identification and assessment of the risks of irregularities;
Any matters identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to:
°Identifying, evaluation 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 noncompliance with laws and regulations;
We have considered 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 identified the greatest potential for fraud in revenue recognition.
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 regulators frameworks that the Group 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 Companies Act 2006, Financial Reporting Standard 102 and UK 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. These included data protection regulations, occupational health and safety regulations, employment legislation and money laundering legislation.
 
Audit response to risks identified
 
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having direct effect on the financial statements.
Enquiring of management concerning actual and potential litigation and claims;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries, and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of potential bias; and evaluating the business rationale of any significant
Page 6


WESTCOUNTRY GARDEN CENTRES LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WESTCOUNTRY GARDEN CENTRES LIMITED (CONTINUED)

transactions that are unusual or outside the normal course of the business.

We also communicated relevant identified laws and regulations and potential fraud risk to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. 
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.


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 Auditors' report.


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 2006Our 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 an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.






Alison Oliver, FCA (Senior statutory auditor)
for and on behalf of
Bishop Fleming LLP
Chartered Accountants
Statutory Auditors
Chy Nyverow
Newham Road
Truro
Cornwall
TR1 2DP

29 September 2023
Page 7


WESTCOUNTRY GARDEN CENTRES LIMITED

 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 31 DECEMBER 2022

Continuing operations
Discontinued operations
Total
Continuing operations
Discontinued operations
Total
2022
2022
2022
7 Jan 2022
7 Jan 2022
7 Jan 2022
Note
£
£
£
£
£
£

  

Turnover
 3 
2,987,229
-
2,987,229
3,204,926
1,844,360
5,049,286

Cost of sales
  
(2,141,829)
-
(2,141,829)
(2,278,338)
(1,369,989)
(3,648,327)

Gross profit
  
845,400
-
845,400
926,588
474,371
1,400,959

Administrative expenses
  
(212,523)
-
(212,523)
(154,469)
(689,733)
(844,202)

Other operating income
 4 
109,373
-
109,373
181,584
233,102
414,686

Operating profit
  
742,250
-
742,250
953,703
17,740
971,443

Profit on disposal of subsidiary
  
-
-
-
1,914,243
-
1,914,243

Profit before tax
  
742,250
-
742,250
2,867,946
17,740
2,885,686

Tax on profit
 7 
(144,599)
-
(144,599)
(206,798)
(14,110)
(220,908)

Profit after tax
  
597,651
-
597,651
2,661,148
3,630
2,664,778

  

  

Retained earnings at the beginning of the period
  
3,551,032
5,386,254

Profit for the period attributable to the owners of the parent
  
597,651
2,664,778

Dividends declared and paid
  
(4,300,000)
(4,500,000)

Retained earnings at the end of the period
  
(151,317)
 
3,551,032

  
 

The notes on pages 17 to 30 form part of these financial statements.

Page 8


WESTCOUNTRY GARDEN CENTRES LIMITED
REGISTERED NUMBER:02685960

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

31 December
7 January
2022
2022
Note
£
£

Fixed assets
  

Tangible assets
 9 
1,459,535
1,464,021

  
1,459,535
1,464,021

Current assets
  

Stocks
 11 
1,120,470
969,865

Debtors: amounts falling due within one year
 12 
92,371
4,324,335

Cash at bank and in hand
 13 
515,847
502,139

  
1,728,688
5,796,339

Creditors: amounts falling due within one year
 14 
(3,333,590)
(3,702,488)

Net current (liabilities)/assets
  
 
 
(1,604,902)
 
 
2,093,851

Total assets less current liabilities
  
(145,367)
3,557,872

Provisions for liabilities
  

Deferred taxation
 15 
(5,948)
(6,838)

  
 
 
(5,948)
 
 
(6,838)

Net (liabilities)/assets
  
(151,315)
3,551,034


Capital and reserves
  

Called up share capital 
 16 
2
2

Profit and loss account
  
(151,317)
3,551,032

Equity attributable to owners of the parent Company
  
(151,315)
3,551,034

  
(151,315)
3,551,034


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





Mr M I Hassall
Director

Date: 29 September 2023

The notes on pages 17 to 30 form part of these financial statements.

Page 9


WESTCOUNTRY GARDEN CENTRES LIMITED
REGISTERED NUMBER:02685960

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022

31 December
7 January
2022
2022
Note
£
£

Fixed assets
  

Tangible assets
 9 
1,321,424
1,321,468

Investments
 10 
570,262
570,262

  
1,891,686
1,891,730

Current assets
  

Debtors: amounts falling due within one year
 12 
1,164,768
4,224,987

  
1,164,768
4,224,987

Creditors: amounts falling due within one year
 14 
(2,921,689)
(5,418,463)

Net current liabilities
  
 
 
(1,756,921)
 
 
(1,193,476)

Total assets less current liabilities
  
134,765
698,254

  

  

Net assets excluding pension asset
  
134,765
698,254

Net assets
  
134,765
698,254


Capital and reserves
  

Called up share capital 
 16 
2
2

Profit and loss account brought forward
  
698,252
414,067

Profit for the period
  
3,736,511
4,784,185

Other changes in the profit and loss account

  

(4,300,000)
(4,500,000)

Profit and loss account carried forward
  
134,763
698,252

  
134,765
698,254


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





Mr M I Hassall
Director

Date: 29 September 2023

The notes on pages 17 to 30 form part of these financial statements.

Page 10


WESTCOUNTRY GARDEN CENTRES LIMITED


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£

At 8 January 2022
2
3,551,032
3,551,034
3,551,034


Comprehensive income for the period

Profit for the period
-
597,651
597,651
597,651


Contributions by and distributions to owners

Dividends: Equity capital
-
(4,300,000)
(4,300,000)
(4,300,000)


At 31 December 2022
2
(151,317)
(151,315)
(151,315)


The notes on pages 17 to 30 form part of these financial statements.

Page 11


WESTCOUNTRY GARDEN CENTRES LIMITED


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 7 JANUARY 2022


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£

At 1 January 2021
2
5,386,254
5,386,256
5,386,256


Comprehensive income for the period

Profit for the period
-
2,664,778
2,664,778
2,664,778


Contributions by and distributions to owners

Dividends: Equity capital
-
(4,500,000)
(4,500,000)
(4,500,000)


At 7 January 2022
2
3,551,032
3,551,034
3,551,034


The notes on pages 17 to 30 form part of these financial statements.

Page 12


WESTCOUNTRY GARDEN CENTRES LIMITED


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
2
698,252
698,254


Comprehensive income for the period

Profit for the period
-
3,736,511
3,736,511


Contributions by and distributions to owners

Dividends: Equity capital
-
(4,300,000)
(4,300,000)


At 31 December 2022
2
134,763
134,765


The notes on pages 17 to 30 form part of these financial statements.

Page 13


WESTCOUNTRY GARDEN CENTRES LIMITED


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 7 JANUARY 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2021
2
414,067
414,069


Comprehensive income for the period

Profit for the period
-
4,784,185
4,784,185


Contributions by and distributions to owners

Dividends: Equity capital
-
(4,500,000)
(4,500,000)


At 7 January 2022
2
698,252
698,254


The notes on pages 17 to 30 form part of these financial statements.

Page 14


WESTCOUNTRY GARDEN CENTRES LIMITED


CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2022

31 December
7 January
2022
2022
£
£

Cash flows from operating activities

Profit for the financial period
597,651
2,664,778

Adjustments for:

Depreciation of tangible assets
4,486
70,459

Loss on disposal of tangible assets
-
3,035

Taxation charge
144,599
220,908

(Increase)/decrease in stocks
(150,605)
226,407

Decrease/(increase) in debtors
4,231,964
(4,096,265)

(Decrease) in creditors
(308,865)
(54,455)

Corporation tax (paid)
(205,522)
(282,947)

Net cash generated from operating activities

4,313,708
(1,248,080)


Cash flows from investing activities

Purchase of tangible fixed assets
-
(26,783)

Sale of tangible fixed assets
-
3,000

Sale of investment properties
-
450,000

Sale of fixed asset investments
-
2,665,004

Net cash from investing activities

-
3,091,221

Cash flows from financing activities

Dividends paid
(4,300,000)
(4,500,000)

Net cash used in financing activities
(4,300,000)
(4,500,000)

Net increase/(decrease) in cash and cash equivalents
13,708
(2,656,859)

Cash and cash equivalents at beginning of period
502,139
3,158,998

Cash and cash equivalents at the end of period
515,847
502,139


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
515,847
502,139

515,847
502,139


The notes on pages 17 to 30 form part of these financial statements.

Page 15


WESTCOUNTRY GARDEN CENTRES LIMITED


CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 DECEMBER 2022




At 8 January 2022
Cash flows
At 31 December 2022
£

£

£

Cash at bank and in hand

502,139

13,708

515,847

Debt due within 1 year

(3,052,274)

242,085

(2,810,189)



(2,550,135)
255,793
(2,294,342)

The notes on pages 17 to 30 form part of these financial statements.

Page 16


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022

1.


GENERAL INFORMATION

Westcountry Garden Centre Limited is a private company limited by shares, incorporated in England and Wales. The registered office is Carnon Downs Garden Centre Ltd, Quenchwell Road, Carnon Downs, Truro, TR3 6LN.
The principal activity of the group during the year was the selling of plants and garden products.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Companies Act 2006.
The following principal accounting policies have been applied: 

 
2.2

BASIS OF CONSOLIDATION

The consolidated financial statements present the results of Group and its own subsidiaries ("the Group") as they formed a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases. 

 
2.3

GOING CONCERN

The directors have considered the expected future profitability and positive cash flows of the group as well as its current strong cash position. As such the directors have reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus continue to adopt the going concern basis of accounting in preparing the financial statements.

 
2.4

REVENUE

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group 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 Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Page 17


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022

2.ACCOUNTING POLICIES (continued)

 
2.5

GOVERNMENT GRANTS

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated statement of income and retained earnings in the same period as the related expenditure.

 
2.6

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.7

CURRENT AND DEFERRED TAXATION

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 18


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022

2.ACCOUNTING POLICIES (continued)

 
2.8

INTANGIBLE ASSETS

GOODWILL
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Income statement over its useful economic life.

 
2.9

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, depending on the category of asset.

Depreciation is provided on the following basis:

Freehold property
-
Not depreciated & 2% straight line
Alterations to premises
-
20% straight line
Plant and machinery
-
15% reducing balance
Motor vehicles
-
25% reducing balance
Fixtures and fittings, tools and equipment
-
10%-15% reducing balance
Office equipment
-
20%-25% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

VALUATION OF INVESTMENTS

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.11

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.12

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Page 19


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022

2.ACCOUNTING POLICIES (continued)

 
2.13

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.14

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

 
2.16

FINANCIAL INSTRUMENTS

The company only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from third parties and
balances with related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans
and other accounts receivable and payable, are initially measured at present value of the future cash
flows and subsequently at amortised cost using the effective interest method. Debt instruments that
are payable or receivable within one year, typically trade debtors and creditors, are measured, initially
and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid
or received.
Financial assets that are measured at cost and amortised cost are assessed at the end of each
reporting period for objective evidence of impairment. If objective evidence of impairment is found, an
impairment loss is recognised in the Statement of Comprehensive Income.
For financial assets measured at cost less impairment, the impairment loss is measured as the
difference between an asset's carrying amount and best estimate of the recoverable amount, which is
an approximation of the amount that the company would receive for the asset if it were to be sold at
the reporting date.

 
2.17

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 20


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022

3.


TURNOVER

All turnover arose within the United Kingdom.


4.


OTHER OPERATING INCOME

2022
2022
£
£

Net rents receivable
108,771
300,229

Government grants receivable
602
114,457

109,373
414,686



5.


AUDITORS' REMUNERATION

During the period, the Group obtained the following services from the Company's auditors:


2022
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
20,400
12,800


6.


EMPLOYEES

Staff costs were as follows:


Group
31 December
Group
7 January
2022
2022
£
£


Wages and salaries
567,116
873,415

National insurance
33,394
49,970

Staff pension costs
7,866
11,636

608,376
935,021


Page 21


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
The average monthly number of employees, including the Directors, during the period was as follows:



Group
Group
Company
Company
        2022
        2022
        2022
        2022
            No.
            No.
            No.
            No.









Carnon Downs Garden Centre
47
43
-
-



Blackdown Garden Centre
-
29
-
-



Westcountry Garden Centres Limited
2
2
2
2

49
74
2
2


7.


TAXATION


2022
2022
£
£

CORPORATION TAX


Current tax on profits for the year
145,489
277,994


TOTAL CURRENT TAX
145,489
277,994

DEFERRED TAX


Origination and reversal of timing differences
(890)
(57,086)

TOTAL DEFERRED TAX
(890)
(57,086)


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
144,599
220,908

FACTORS AFFECTING TAX CHARGE FOR THE PERIOD

The tax assessed for the period is higher than (2022: lower than) the standard rate of corporation tax in the UK of 19% (2022: 19%). The differences are explained below:

2022
2022
£
£


Profit on ordinary activities before tax
742,250
2,885,686


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022: 19%)
141,028
548,280

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,553
49,070

Other differences leading to an increase (decrease) in the tax charge
18
(376,442)

TOTAL TAX CHARGE FOR THE PERIOD
144,599
220,908

Page 22


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022

8.


INTANGIBLE ASSETS

Group







Goodwill

£



COST


At 8 January 2022
369,396



At 31 December 2022

369,396



AMORTISATION


At 8 January 2022
369,396



At 31 December 2022

369,396



NET BOOK VALUE



At 31 December 2022
-



At 7 January 2022
-



Page 23


WESTCOUNTRY GARDEN CENTRES LIMITED



 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
 
  



9.


TANGIBLE FIXED ASSETS


Group










Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment

£
£
£
£
£



COST OR VALUATION


At 8 January 2022
1,430,462
407,097
21,929
79,882
59,010



At 31 December 2022

1,430,462
407,097
21,929
79,882
59,010



DEPRECIATION


At 8 January 2022
-
389,918
21,308
67,438
55,986


Charge for the period on owned assets
-
2,577
155
-
1,710



At 31 December 2022

-
392,495
21,463
67,438
57,696



NET BOOK VALUE



At 31 December 2022
1,430,462
14,602
466
12,444
1,314



At 7 January 2022
1,430,462
17,179
621
12,444
3,024
Page 24


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022

           9.TANGIBLE FIXED ASSETS (CONTINUED)


Other fixed assets
Total

£
£



COST OR VALUATION


At 8 January 2022
8,811
2,007,191



At 31 December 2022

8,811
2,007,191



DEPRECIATION


At 8 January 2022
8,520
543,170


Charge for the period on owned assets
44
4,486



At 31 December 2022

8,564
547,656



NET BOOK VALUE



At 31 December 2022
247
1,459,535



At 7 January 2022
291
1,464,021




The net book value of land and buildings may be further analysed as follows:


31 December
7 January
2022
2022
£
£

Freehold
1,430,462
1,430,462

1,430,462
1,430,462


Page 25


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022

Company









Freehold property
Alterations to premises
Total

£
£
£

COST OR VALUATION


At 8 January 2022
1,321,177
8,811
1,329,988



At 31 December 2022

1,321,177
8,811
1,329,988



DEPRECIATION


At 8 January 2022
-
8,520
8,520


Charge for the period on owned assets
-
44
44



At 31 December 2022

-
8,564
8,564



NET BOOK VALUE



At 31 December 2022
1,321,177
247
1,321,424



At 31 December 2020
1,321,177
291
1,321,468






Page 26


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022

10.


FIXED ASSET INVESTMENTS

Company








Investments in subsidiary companies

£



COST OR VALUATION


At 8 January 2022
570,262



At 31 December 2022
570,262





SUBSIDIARY UNDERTAKING


The following was a subsidiary undertaking of the Company:

Name

Principal activity

Class of shares

Holding

Carnon Downs Garden Centre Limited
Operating a garden centre
Ordinary
100%


11.


STOCKS

Group
31 December
Group
7 January
2022
2022
£
£

Finished goods and goods for resale
1,120,470
969,865

1,120,470
969,865


Page 27


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022

12.


DEBTORS

Group
31 December
Group
7 January
Company
31 December
Company
7 January
2022
2022
2022
2022
£
£
£
£


Trade debtors
69,673
79,405
-
-

Amounts owed by group undertakings
-
1
1,153,626
-

Other debtors
14,780
4,244,729
11,142
4,224,987

Prepayments and accrued income
7,918
200
-
-

92,371
4,324,335
1,164,768
4,224,987



13.


CASH AND CASH EQUIVALENTS

Group
31 December
Group
7 January
2022
2022
£
£

Cash at bank and in hand
515,847
502,139

515,847
502,139



14.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
31 December
Group
7 January
Company
31 December
Company
7 January
2022
2022
2022
2022
£
£
£
£

Trade creditors
258,824
364,288
51,000
51,000

Amounts owed to group undertakings
-
-
-
2,236,544

Corporation tax
145,489
205,522
57,000
75,145

Other taxation and social security
41,877
6,028
-
-

Other creditors
2,853,450
3,053,502
2,810,189
3,052,274

Accruals and deferred income
33,950
73,148
3,500
3,500

3,333,590
3,702,488
2,921,689
5,418,463


Page 28


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022

15.


DEFERRED TAXATION


Group



2022


£






At beginning of year
(6,838)


Charged to profit or loss
890



AT END OF YEAR
(5,948)

The provision for deferred taxation is made up as follows:

Group
31 December
Group
7 January
2022
2022
£
£

Accelerated capital allowances
(5,948)
(6,838)

(5,948)
(6,838)


16.


SHARE CAPITAL

31 December
7 January
2022
2022
£
£
ALLOTTED, CALLED UP AND FULLY PAID



2 (2022: 2) Ordinary shares shares of £1.00 each
2
2



17.


DISCONTINUED OPERATIONS

As at 7 January 2022, Blackdown Garden Centre Limited shareholding was fully disposed of.




18.


PENSION COMMITMENTS

The Group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £7,866 (7 January 2022: £11,587). Contributions totalling £1,403 (7 January 2022: £1,228) were payable to the fund at the reporting date

Page 29


WESTCOUNTRY GARDEN CENTRES LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022

19.


TRANSACTIONS WITH DIRECTORS

At the year end Westcountry Garden Centres Limited owed £2,810,189 (7 January 2022: £3,052,274) to Mr M I and Mrs J R K Hassall, the officers. No interest is charged on this balance.
During the year dividends totalling £4,300,000 (7 January 2022: £4,500,000) were paid to Mr M I Hassall.


20.


RELATED PARTY TRANSACTIONS

The Group has taken advantage of the exemption available in section 33.1A of FRS102 and not disclosed transactions with members of a 100% group.


21.


CONTROLLING PARTY

The Company is controlled by Mr M I Hassall.

 
Page 30