Company registration number 02121343 (England and Wales)
THE FRENCH GARDEN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
THE FRENCH GARDEN LIMITED
COMPANY INFORMATION
Directors
I T Furness
C J Dart
N Humphries
S M Oakden
Secretary
I T Furness
Company number
02121343
Registered office
C140-143 New Covent Garden
Fruit & Vegetable Market
Nine Elms Lane
London
SW8 5JJ
Auditor
Freeman Baker Associates
The Old Church
48 Verulam Road
St. Albans
Hertfordshire
AL3 4DH
Business address
C140-143 New Covent Garden
Fruit & Vegetable Market
Nine Elms Lane
London
SW8 5JJ
THE FRENCH GARDEN LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Profit and loss account
6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
THE FRENCH GARDEN LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present the strategic report and financial statements for the year ended 30 June 2023.

 

The company's principal activity continues to be that of wholesalers and importers of fresh fruit and vegetables.

Review of the business
We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end.  Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
Principal risks and uncertainties

The principle risks and uncertainties faced by the company include the following:

- Operating in competitive markets

- Current changes in economic growth

Development and performance

The financial position of the company at the year end has increased and shareholders' funds are £2,513,801 (2022: £2,337,256).

 

The directors aim to maintain the business profitability in future years, and continue with their current business strategy. They are however of the view that the current economic uncertainty may have an effect on confidence and that this in turn could impact turnover in the short term.

 

Challenges remain in keeping staff, customers and suppliers safe, and the company has adapted its operating procedures in line with Government and industry guidance accordingly.

Key performance indicators

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margin and profit before taxation.

 

The turnover of the company for the year is £24,322,439 (2022: £23,256,588), an increase of around 4.6% on the previous year.

 

Gross profit percentage has decreased to 22.11% compared to 24.30% for the previous year. There is a profit before tax of £223,720 (2022: £363,859).

On behalf of the board

I T Furness
Director
14 November 2023
THE FRENCH GARDEN LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Principal activities
The company's principal activity continues to be that of wholesalers and importers of fresh fruit and vegetables.
Results and dividends

The results for the year are set out on page 6.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

I T Furness
C J Dart
N Humphries
S M Oakden
Future developments
The results for the year are considered satisfactory by the directors who expect growth in the foreseeable future.  However, as for many companies of our size, the business environment continues to be challenging and we are aware that any plans for the future development of our business may be subject to unforeseen future events outside of our control.
Auditor

The auditor, Freeman Baker Associates, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
I T Furness
Director
14 November 2023
THE FRENCH GARDEN LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 3 -

The directors are responsible for preparing the annual report 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:

 

 

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.

THE FRENCH GARDEN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE FRENCH GARDEN LIMITED
- 4 -
Opinion

We have audited the financial statements of The French Garden Limited (the 'company') for the year ended 30 June 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

THE FRENCH GARDEN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE FRENCH GARDEN LIMITED
- 5 -
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 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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.

Auditor's responsibilities for the audit of the financial statements

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Keye FCCA CTA
Senior Statutory Auditor
14 November 2023
For and on behalf of Freeman Baker Associates
The Old Church
Statutory Auditors
48 Verulam Road
St. Albans
Hertfordshire
AL3 4DH
THE FRENCH GARDEN LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2023
- 6 -
2023
2022
Notes
£
£
Turnover
3
24,322,439
23,256,588
Cost of sales
(18,944,214)
(17,605,005)
Gross profit
5,378,225
5,651,583
Distribution costs
(310,855)
(334,945)
Administrative expenses
(4,853,043)
(4,950,763)
Operating profit
4
214,327
365,875
Interest receivable and similar income
7
16,385
1,344
Interest payable and similar expenses
8
(6,992)
(3,360)
Profit before taxation
223,720
363,859
Tax on profit
9
(47,175)
(57,081)
Profit for the financial year
176,545
306,778

The profit and loss account has been prepared on the basis that all operations are continuing operations.

THE FRENCH GARDEN LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 7 -
2023
2022
£
£
Profit for the year
176,545
306,778
Other comprehensive income
-
-
Total comprehensive income for the year
176,545
306,778
THE FRENCH GARDEN LIMITED
BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
721,156
690,020
Current assets
Stocks
12
165,126
180,577
Debtors
13
5,502,830
5,077,496
Cash at bank and in hand
533,287
404,548
6,201,243
5,662,621
Creditors: amounts falling due within one year
14
(4,370,632)
(3,925,254)
Net current assets
1,830,611
1,737,367
Total assets less current liabilities
2,551,767
2,427,387
Creditors: amounts falling due after more than one year
15
(37,966)
(90,131)
Net assets
2,513,801
2,337,256
Capital and reserves
Called up share capital
19
1,000
1,000
Profit and loss reserves
2,512,801
2,336,256
Total equity
2,513,801
2,337,256

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved by the board of directors and authorised for issue on 14 November 2023 and are signed on its behalf by:
I T Furness
Director
Company registration number 02121343 (England and Wales)
THE FRENCH GARDEN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 July 2021
1,000
2,029,478
2,030,478
Year ended 30 June 2022:
Profit and total comprehensive income
-
306,778
306,778
Balance at 30 June 2022
1,000
2,336,256
2,337,256
Year ended 30 June 2023:
Profit and total comprehensive income
-
176,545
176,545
Balance at 30 June 2023
1,000
2,512,801
2,513,801
THE FRENCH GARDEN LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
22
375,990
(94,472)
Interest paid
(6,992)
(3,360)
Income taxes paid
(45,462)
(11,178)
Net cash inflow/(outflow) from operating activities
323,536
(109,010)
Investing activities
Purchase of tangible fixed assets
(163,680)
(254,922)
Proceeds from disposal of tangible fixed assets
5,800
56,451
Repayment of loans
-
0
10,000
Interest received
16,385
1,344
Net cash used in investing activities
(141,495)
(187,127)
Financing activities
Payment of finance leases obligations
(53,302)
90,185
Net cash (used in)/generated from financing activities
(53,302)
90,185
Net increase/(decrease) in cash and cash equivalents
128,739
(205,952)
Cash and cash equivalents at beginning of year
404,548
610,500
Cash and cash equivalents at end of year
533,287
404,548
THE FRENCH GARDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 11 -
1
Accounting policies
Company information

The French Garden Limited is a private company limited by shares incorporated in England and Wales. The registered office is C140-143 New Covent Garden, Fruit & Vegetable Market, Nine Elms Lane, London, SW8 5JJ. The Company Registration Number is 02121343.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

The directors remain confident that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of incorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 3 years.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:
Land and buildings Freehold
no depreciation
Land and buildings Leasehold
over the term of the lease
Plant and machinery
20% and 33% straight line
Fixtures, fittings & equipment
15% reducing balance
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

THE FRENCH GARDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 12 -

No depreciation has been provided on the freehold property as the directors consider that the economic life of the building and its residual value is such that depreciation is not material. The value of the building is monitored by the directors on a regular basis in order to identify any permanent diminution in value.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

THE FRENCH GARDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 13 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

THE FRENCH GARDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 14 -
Other financial liabilities

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 finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

THE FRENCH GARDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 15 -
1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
24,322,439
23,256,588
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
22,701,197
23,256,588
Europe
163,066
-
Rest of the World
1,458,176
-
24,322,439
23,256,588
2023
2022
£
£
Other revenue
Interest income
16,385
1,344
THE FRENCH GARDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,400
8,800
Depreciation of owned tangible fixed assets
91,249
76,244
Depreciation of tangible fixed assets held under finance leases
39,306
23,688
(Profit)/loss on disposal of tangible fixed assets
(3,811)
1,991
Operating lease charges
193,145
185,124

 

5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Office and management
12
12
Selling
7
6
Warehouse and transport
32
23
Total
51
41

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,778,750
2,642,043
Social security costs
287,728
279,165
Pension costs
86,834
74,745
3,153,312
2,995,953
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
613,574
665,153
Company pension contributions to defined contribution schemes
10,059
10,059
623,633
675,212

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

THE FRENCH GARDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
6
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
209,433
251,358
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
16,385
1,344
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
16,385
1,344
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
6,992
3,360
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
46,883
45,462
Deferred tax
Origination and reversal of timing differences
292
11,619
Total tax charge
47,175
57,081
THE FRENCH GARDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
9
Taxation
(Continued)
- 18 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
223,720
363,859
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
55,930
69,133
Tax effect of expenses that are not deductible in determining taxable profit
999
1,936
Permanent capital allowances in excess of depreciation
(27,683)
(43,061)
Depreciation on assets not qualifying for tax allowances
27,940
17,454
Deferred tax adjustments in respect of prior years
292
11,619
Tax at marginal rate
(10,303)
-
0
Taxation charge for the year
47,175
57,081
10
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2022 and 30 June 2023
24,000
Amortisation and impairment
At 1 July 2022 and 30 June 2023
24,000
Carrying amount
At 30 June 2023
-
0
At 30 June 2022
-
0
THE FRENCH GARDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 19 -
11
Tangible fixed assets
Land and buildings Freehold
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2022
227,638
64,162
307,479
28,859
789,356
1,417,494
Additions
-
0
-
0
-
0
-
0
163,680
163,680
Disposals
-
0
-
0
-
0
-
0
(27,150)
(27,150)
At 30 June 2023
227,638
64,162
307,479
28,859
925,886
1,554,024
Depreciation and impairment
At 1 July 2022
-
0
25,020
298,377
28,859
375,218
727,474
Depreciation charged in the year
-
0
2,566
-
0
-
0
127,989
130,555
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(25,161)
(25,161)
At 30 June 2023
-
0
27,586
298,377
28,859
478,046
832,868
Carrying amount
At 30 June 2023
227,638
36,576
9,102
-
0
447,840
721,156
At 30 June 2022
227,638
39,142
9,102
-
0
414,138
690,020

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Motor vehicles
117,919
187,961
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
165,126
180,577
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,971,299
3,230,019
Other debtors
155,111
78,434
Prepayments and accrued income
139,872
132,203
3,266,282
3,440,656
THE FRENCH GARDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
13
Debtors
(Continued)
- 20 -
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
2,226,314
1,626,314
Deferred tax asset (note 17)
10,234
10,526
2,236,548
1,636,840
Total debtors
5,502,830
5,077,496

Included in the Other Debtors above is £2,213,750 (2022: £1,613,750) which relates to a loan to the ultimate parent company, The French Garden Group Limited. This loan will be repaid out of any dividend paid to the parent company.

14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Obligations under finance leases
16
52,165
53,302
Trade creditors
2,616,331
1,588,063
Corporation tax
46,883
45,462
Other taxation and social security
61,916
61,544
Accruals and deferred income
1,593,337
2,176,883
4,370,632
3,925,254
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
16
37,966
90,131
16
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
52,165
53,302
In two to five years
37,966
90,131
90,131
143,433
THE FRENCH GARDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 21 -
17
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
10,234
10,526
2023
Movements in the year:
£
Asset at 1 July 2022
(10,526)
Charge to profit or loss
292
Asset at 30 June 2023
(10,234)
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
86,834
74,745

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
318,756
297,143
Between two and five years
972,768
886,315
In over five years
567,448
738,595
1,858,972
1,922,053
THE FRENCH GARDEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 22 -
21
Related party transactions

The company has taken advantage of the exemption within FRS 102 33.1A not to disclose related party transactions with other group companies as its voting rights are wholly-controlled within the group.

 

Details of the directors' emoluments can be found in note 6.

 

During the year there were no key management personnel other than the directors (2022: nil).

 

 

22
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit for the year after tax
176,545
306,778
Adjustments for:
Taxation charged
47,175
57,081
Finance costs
6,992
3,360
Investment income
(16,385)
(1,344)
(Gain)/loss on disposal of tangible fixed assets
(3,811)
1,991
Depreciation and impairment of tangible fixed assets
130,555
99,932
Movements in working capital:
Decrease/(increase) in stocks
15,451
(50,881)
Increase in debtors
(425,626)
(1,159,763)
Increase in creditors
445,094
648,374
Cash generated from/(absorbed by) operations
375,990
(94,472)
23
Analysis of changes in net funds
1 July 2022
Cash flows
30 June 2023
£
£
£
Cash at bank and in hand
404,548
128,739
533,287
Obligations under finance leases
(143,433)
53,302
(90,131)
261,115
182,041
443,156
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