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Registration number: 03716795

Farm and Pet Place Limited

Annual Report and Financial Statements

for the Year Ended 28 February 2023

 

Farm and Pet Place Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account and Statement of Retained Earnings

10

Balance Sheet

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 27

 

Farm and Pet Place Limited

Company Information

Directors

G S Lewis

P A Penketh

S M Pritchard

Registered office

Farm and Pet Place Limited
Enterprise House
Tir Llwyd Enterprise Park
Kinmel Bay
Conwy
LL18 5JZ

Auditors

Aston Hughes Limited
Selby Towers
29 Princes Drive
Colwyn Bay
Conwy
LL29 8PE

 

Farm and Pet Place Limited

Strategic Report for the Year Ended 28 February 2023

The directors present their strategic report for the year ended 28 February 2023.

Principal activity

The principal activity of the company is pet retail stores.

Fair review of the business

The company continues to improve its offering of pet related products through its retail stores and online platform. Being a prominent pet product retailer across North Wales. Focusing on the knowledge of the team in order to share the best experience when shopping with us and passing on knowledge around pet wellbeing, health and product support.

We have seen continued growth in the pet sector, especially in our dog categories. We will continue to develop our ranges, whilst focusing on smaller, independent suppliers who specialise in the health and wellbeing of animals and want to be part of the pet industry.

The company continued to push forward with its store developments and rebranding of its Llangefni store, although this project was delayed, we opened our latest petplace store in December 2022.

We continue to welcome suppliers to our head office at Kinmel bay, we plan to make more use of the central warehouse at Kinmel Bay allowing us some extra space for some bulk buying for the group.

Focus will be on the development of the petplace brand over the coming years, whilst the rebrand of all our stores and website will continue.

The company will continue to review its suppliers and partnerships, whilst its focus will be on working with suppliers who are looking to support the pet trade with unique and innovative products, aimed at the wellbeing and health of our pets.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Revenue

£'000

10,844

10,544

Gross margin

%

34

34

Principal risks and uncertainties

Whilst the company works hard to identify and manage any potential risks we do see the below as possible risks that may impact the business:

● The ability to recruit team members and ensure we are in a position to offer packages designed to train, develop and reward our team members. Having the right team to support the business is key to the success of the business.

● Whilst we have seen an increase of pet ownership through the covid 19 pandemic, we are also aware that some pet owners may find it difficult to return to full time employment away from the home, and we may see some increased issues with pet ownership, when pets are left at home alone.

● The constant supply with some ranges could impact the supply chain, suppliers are seeing increased transport costs and the lack of key components and ingredients to produce and supply products. We continue to build our relationships with current and new suppliers to ensure we respond to any supply issues.

● Price increases due to supply issues, haulage and import costs. We have seen this push prices up. It is key that we work to ensure we continue to offer ranges that fit with our customers needs and budgets.

 

Farm and Pet Place Limited

Strategic Report for the Year Ended 28 February 2023

Approved and authorised by the Board on 7 November 2023 and signed on its behalf by:
 

.........................................
S M Pritchard
Director

 

Farm and Pet Place Limited

Directors' Report for the Year Ended 28 February 2023

The directors present their report and the financial statements for the year ended 28 February 2023.

Directors of the company

The directors who held office during the year were as follows:

G S Lewis

P A Penketh

N T Lewis (Resigned 28 March 2022)

S M Pritchard

Financial instruments

Objectives and policies

The Company uses various financial instruments including bank loans cash reserves, operating and finance leases and trade supplier accounts to allow the company to operate effectively. The existence of these financial instruments exposes the company to a number of risks which are described in more detail below.

Price risk, credit risk, liquidity risk and cash flow risk

Liquidity risk
The company seeks to manage financial risk by preparing monthly rolling cashflows to ensure sufficient liquidity is available to meet foreseeable needs.

Credit risk
The company predominantly operates in the retail sector, so credit provided to customers is not a significant risk. Cash takings are collected and banked using a third-party secure provider.

Price risk
The company has a buying department who manage product price changes and review the market taking into account discount on volume and the provision of supplier credit.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 7 November 2023 and signed on its behalf by:
 

.........................................
S M Pritchard
Director

 

Farm and Pet Place Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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.

 

Farm and Pet Place Limited

Independent Auditor's Report to the Members of Farm and Pet Place Limited

Opinion

We have audited the financial statements of Farm and Pet Place Limited (the 'company') for the year ended 28 February 2023, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, Statement of Cash Flows, and 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 28 February 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Farm and Pet Place Limited

Independent Auditor's Report to the Members of Farm and Pet Place Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Farm and Pet Place Limited

Independent Auditor's Report to the Members of Farm and Pet Place Limited

We considered the nature of the of the company’s industry and control environment and reviewed policies and procedures relating to fraud and compliance with laws and regulations. We also enquired with management about their own identification and assessment of the risk of irregularities. We identified that the significant laws and regulations are the Companies Act 2006, relevant UK tax legislation and FRS 102 'The financial reporting standards applicable in the UK and Republic of Ireland', employment law and health and safety laws and regulations.

To address the risks identified we discussed matters with key management, and we have undertaken further enquiries into health and safety and employment compliance with the relevant managers and have reviewed available documentation where appropriate.

We assessed the susceptibility of the company's financial statements to material misstatement including how fraud may occur. We planned and completed audit procedures including;

- Obtaining an understanding of systems controls used by management to prevent and detect fraud.
- Considering assumptions made by management and assessing areas where judgement is required in its significant accounting policies and estimates in particular;
- Valuation of inventory and processes used to identify inventory provisions.
- Initial accounting treatment of fixed assets and the subsequent accounting for the consumption of useful economic life of fixed assets.
- Identifying and testing manual journal entries where there was an increased risk of management override.

We assessed the overall competence and capabilities of the engagement team's knowledge and practical experience. We communicated amongst the audit team areas that may exist within the organisation for fraud or non-compliance with laws and regulations.

Despite the audit being planned and conducted in accordance with ISA's (UK) there remains an unavoidable risk that misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and by their very nature, any instances of fraud or irregularity likely involve collusion, forgery, intentional representations or the override of controls.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

 

Farm and Pet Place Limited

Independent Auditor's Report to the Members of Farm and Pet Place Limited

......................................
Gareth Lowe BSc FCA (Senior Statutory Auditor)
For and on behalf of Aston Hughes Limited, Statutory Auditor

Selby Towers
29 Princes Drive
Colwyn Bay
Conwy
LL29 8PE

7 November 2023

 

Farm and Pet Place Limited

Profit and Loss Account and Statement of Retained Earnings for the Year Ended 28 February 2023

Note

2023
£

2022
£

Turnover

3

10,844,315

10,544,104

Cost of sales

 

(7,187,139)

(7,013,873)

Gross profit

 

3,657,176

3,530,231

Administrative expenses

 

(2,935,883)

(2,760,618)

Operating profit

4

721,293

769,613

Interest payable and similar charges

5

(192,882)

(97,392)

 

(192,882)

(97,392)

Profit before tax

 

528,411

672,221

Taxation

9

(150,155)

(132,780)

Profit for the financial year

 

378,256

539,441

Retained earnings brought forward

 

3,096,322

2,669,427

Dividends paid

 

(285,071)

(112,546)

Retained earnings carried forward

 

3,189,507

3,096,322

 

Farm and Pet Place Limited

(Registration number: 03716795)
Balance Sheet as at 28 February 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

10

39,597

41,345

Tangible assets

11

6,471,065

5,503,663

 

6,510,662

5,545,008

Current assets

 

Stocks

12

1,062,421

977,573

Debtors

13

1,496,143

1,494,153

Cash at bank and in hand

 

43,433

67,220

 

2,601,997

2,538,946

Creditors: Amounts falling due within one year

15

(2,836,068)

(2,122,243)

Net current (liabilities)/assets

 

(234,071)

416,703

Total assets less current liabilities

 

6,276,591

5,961,711

Creditors: Amounts falling due after more than one year

15

(2,033,359)

(1,963,261)

Provisions for liabilities

16

(198,642)

(47,045)

Net assets

 

4,044,590

3,951,405

Capital and reserves

 

Called up share capital

100

100

Revaluation reserve

854,983

854,983

Retained earnings

3,189,507

3,096,322

Shareholders' funds

 

4,044,590

3,951,405

Approved and authorised by the Board on 7 November 2023 and signed on its behalf by:
 

.........................................
S M Pritchard
Director

 

Farm and Pet Place Limited

Statement of Cash Flows for the Year Ended 28 February 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

378,256

539,441

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

207,913

199,907

Loss on disposal of tangible assets

-

6,614

Finance costs

5

192,882

97,392

Income tax expense

9

150,155

132,780

 

929,206

976,134

Working capital adjustments

 

Increase in stocks

12

(84,848)

(27,222)

Increase in debtors

13

(1,990)

(311,522)

Increase/(decrease) in creditors

15

593,148

(126,502)

Cash generated from operations

 

1,435,516

510,888

Income taxes paid

9

(124,739)

(104,586)

Net cash flow from operating activities

 

1,310,777

406,302

Cash flows from investing activities

 

Acquisitions of tangible assets

(1,188,142)

(356,998)

Proceeds from sale of tangible assets

 

18,515

-

Acquisition of intangible assets

10

(3,940)

(3,780)

Net cash flows from investing activities

 

(1,173,567)

(360,778)

Cash flows from financing activities

 

Interest paid

5

(192,882)

(97,392)

Proceeds from bank borrowing draw downs

 

1,059,987

(97,237)

Payments to finance lease creditors

 

(892,403)

(132,411)

Dividends paid

20

(285,071)

(112,546)

Net cash flows from financing activities

 

(310,369)

(439,586)

Net decrease in cash and cash equivalents

 

(173,159)

(394,062)

Cash and cash equivalents at 1 March

 

30,729

424,791

Cash and cash equivalents at 28 February

 

(142,430)

30,729

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Farm and Pet Place Limited
Enterprise House
Tir Llwyd Enterprise Park
Kinmel Bay
Conwy
LL18 5JZ

These financial statements were authorised for issue by the Board on 7 November 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

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

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 operates and generates taxable income.

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land

Not depreciated

Buildings

2% Straight line on deemed cost

Fixtures & fittings

20% Straight line on cost

Plant & machinery

20% Straight line on cost

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Separately acquired trademarks and licences are shown at historical cost.

Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.

Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Brand names

10% Straight line

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the most recent purchase price.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Judgements and key sources of estimation uncertainty

The directors are required to make judgements estimates and assumptions in the application of the company's accounting policies particularly where the carrying amount of assets and liabilities are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other relevant factors, they are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in future periods if this is relevant.

Estimation uncertainty
Useful economic lives of assets
Tangible assets are depreciated over their useful economic lives having consideration for the residual values where appropriate. The continuing life of the asset class are assessed periodically, assets benefit from ongoing maintenance which is intended to maintain buildings to a high standard and support a high residual value and longer useful economic life.

Key judgements
Stock valuation
Stock records are updated to the most recent purchase price and are only re-ordered once stock falls below a predetermined threshold, slow-moving stock is identified by the buying department and stores are instructed to discount lines where this is appropriate. Where lines are to be sold below cost or are unable to be sold the stock will be written off, however, this is a rare occurrence particularly as stock tends not to be perishable.


 

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

Sale of goods

10,825,154

10,513,628

Other revenue

19,161

30,476

10,844,315

10,544,104

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

4

Operating profit

Arrived at after charging/(crediting)

2023
 £

2022
 £

Depreciation expense

202,225

194,738

Amortisation expense

5,688

5,169

Loss on disposal of property, plant and equipment

-

6,614

5

Interest payable and similar expenses

2023
 £

2022
 £

Interest on bank overdrafts and borrowings

13,908

1,888

Interest on obligations under finance leases and hire purchase contracts

178,974

95,504

192,882

97,392

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

1,439,509

1,411,114

Pension costs, defined contribution scheme

49,396

45,291

Other employee expense

12,548

3,981

1,501,453

1,460,386

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

14

17

Sales, marketing and distribution

63

60

77

77

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

135,815

430,783

Directors pensions defined contributions

24,000

24,658

159,815

455,441

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
 No.

2022
 No.

Accruing benefits under money purchase pension scheme

2

2

In respect of the highest paid director:

2023
 £

2022
 £

Remuneration

60,000

192,424

Company contributions to money purchase pension schemes

12,000

12,000

8

Auditors' remuneration

2023
 £

2022
 £

Audit of the financial statements

15,103

7,000

Other fees to auditors

All other non-audit services

4,722

4,000


 

9

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

(1,442)

126,181

Deferred taxation

Arising from previously unrecognised tax loss, tax credit or temporary difference of prior periods

151,597

6,599

Tax expense in the income statement

150,155

132,780

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

2023
£

2022
£

Profit before tax

528,411

672,221

Corporation tax at standard rate

100,398

127,722

Deferred tax expense relating to changes in tax rates or laws

-

12,746

Tax decrease from effect of capital allowances and depreciation

(100,398)

(7,688)

Tax increase from other short-term timing differences

151,597

-

Other tax effects for reconciliation between accounting profit and tax expense (income)

(1,442)

-

Total tax charge

150,155

132,780

Ffrom 1 April 2023 the UK corporation tax rate will increase to 25%, this rate of tax has been applied to the deferred tax position.

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

198,642

-

198,642

2022

Asset
£

Liability
£

Accelerated capital allowances

-

47,045

-

47,045

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

10

Intangible assets

Goodwill
 £

Trademarks, patents and licenses
 £

Total
£

Cost or valuation

At 1 March 2022

34,400

52,942

87,342

Additions internally developed

-

3,940

3,940

At 28 February 2023

34,400

56,882

91,282

Amortisation

At 1 March 2022

34,400

11,597

45,997

Amortisation charge

-

5,688

5,688

At 28 February 2023

34,400

17,285

51,685

Carrying amount

At 28 February 2023

-

39,597

39,597

At 28 February 2022

-

41,345

41,345

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

11

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 March 2022

5,221,904

2,177,261

-

87,624

7,486,789

Additions

433,776

735,529

14,000

4,837

1,188,142

Disposals

-

-

-

(19,490)

(19,490)

At 28 February 2023

5,655,680

2,912,790

14,000

72,971

8,655,441

Depreciation

At 1 March 2022

27,311

1,886,863

-

68,952

1,983,126

Charge for the year

34,379

165,080

2,333

433

202,225

Eliminated on disposal

-

-

-

(975)

(975)

At 28 February 2023

61,690

2,051,943

2,333

68,410

2,184,376

Carrying amount

At 28 February 2023

5,593,990

860,847

11,667

4,561

6,471,065

At 28 February 2022

5,194,593

290,398

-

18,672

5,503,663

Land and buildings with a value of £5,217,554 (2021; £5,034,396) are pledged as security for the company's secured liabilities.

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

Tangible assets - continued

The company has adopted the transitional exemption under FRS 102 and elected to use the previous revalued amounts as deemed cost.

If freehold land and buildings had not been previously revalued, they would have been included on the historical cost basis at £4,779,632 as at 28 February 2023 (£4,363,225 as at 28 February 2022).

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Fixtures, plant machinery and equipment

590,741

64,345

Vehicles

11,667

18,515

Buildings improvements

273,744

-

 

876,152

82,860

Included within the net book value of land and buildings above is £5,593,990 (2022 - £5,194,593) in respect of freehold land and buildings.
 

12

Stocks

2023
 £

2022
 £

Other inventories

1,062,421

977,573

13

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

7,787

9,179

Amounts owed by related parties

21

1,275,133

1,101,716

Other debtors

 

119,157

257,247

Prepayments

 

94,066

126,011

   

1,496,143

1,494,153

14

Cash and cash equivalents

2023
 £

2022
 £

Cash on hand

33,337

29,121

Cash at bank

10,096

38,099

43,433

67,220

Bank overdrafts

(185,863)

(36,491)

Cash and cash equivalents in statement of cash flows

(142,430)

30,729

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

15

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

19

822,943

625,536

Trade creditors

 

1,815,041

1,127,302

Social security and other taxes

 

45,339

82,510

Outstanding defined contribution pension costs

 

7,195

9,711

Other payables

 

83,532

106,460

Accrued expenses

 

62,018

44,543

Income tax liability

9

-

126,181

 

2,836,068

2,122,243

Due after one year

 

Loans and borrowings

19

2,033,359

1,913,810

Other non-current financial liabilities

 

-

49,451

 

2,033,359

1,963,261

16

Provisions for liabilities

Deferred tax
£

Total
£

At 1 March 2022

47,045

47,045

Additional provisions

151,597

151,597

At 28 February 2023

198,642

198,642

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £49,396 (2022 - £45,291).

Contributions totalling £7,195 (2022 - £9,711) were payable to the scheme at the end of the year and are included in creditors.

18

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

         
 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

19

Loans and borrowings

2023
 £

2022
 £

Non-current loans and borrowings

Bank borrowings

1,442,822

1,874,953

HP and finance lease liabilities

590,537

38,857

2,033,359

1,913,810

2023
 £

2022
 £

Current loans and borrowings

Bank borrowings

436,446

554,954

Bank overdrafts

185,863

36,491

HP and finance lease liabilities

200,634

34,091

822,943

625,536

Bank borrowings

Loans and overdrafts is denominated in GBP with a nominal interest rate of between 2% and 7%, and the final instalment is due on 10 February 2029. The carrying amount at year end is £1,879,268 (2022 - £2,429,906).

Land and buildings are provided as security on specified loans with a total value of £996,021 (2022 £1,134,172);

Included in the loans and borrowings are the following amounts due after more than five years:

2023
 £

2022
 £

After more than five years by instalments

253,697

372,606

-

-

20

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £1,504.21 (2022 - £1,125.45) per each Ordinary shares

 

150,421

 

112,546

Interim dividend of £3,452.56 (2022 - £Nil) per each Loan write off as dividend

 

134,650

 

-

   

285,071

 

112,546

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

21

Related party transactions

Transactions with directors

2023

At 1 March 2022
£

Written off
£

At 28 February 2023
£

N T Lewis

134,650

(134,650)

-

       

2022

At 1 March 2021
£

Advances to director
£

Repayments by director
£

At 28 February 2022
£

N T Lewis

123,007

11,643

-

134,650

         
       

G S Lewis

440,632

-

(440,632)

-

         
       

P A Penketh

67,757

-

(67,757)

-

         
       

S M Pritchard

186,913

-

(186,913)

-

         
       

 

Summary of transactions with parent

Snowdon Holdings Limited

 Management fees of £150,000 (2022; £48,000). The outstanding balance at the year end was £62,500 (2022; £27,600).

Dividends of £96,270 (2022; £72,029) were payable to the parent in the period,

The company also advanced funds of £173,416 (2022; £1,244,873). The outstanding loan balance at the year end was £1,275,133 (2022; £1,101,716).

 No interest or repayment terms have been agreed on the outstanding balance.
 

Summary of transactions with other related parties

Pension fund with a director as a beneficiary

 A property occupied by the company is leased from the pension fund, the annual rent being £120,000 (2022; £120,000) the outstanding balance on rent payable at the end of the period was £24,000 (2022; £24,000).

There is an outstanding loan due to the pension fund of £52,500 (2022; £82,500), interest is charged at 7% fixed rate.

 

 

Farm and Pet Place Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

22

Parent and ultimate parent undertaking

The company's immediate parent is Snowdon Holdings Limited, incorporated in England & Wales.

 The most senior parent entity producing publicly available financial statements is Snowdon Holdings Limited. These financial statements are available upon request from Companies House

 The ultimate controlling party is Mr S Pritchard & Mr P Penketh.