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Homeleigh Garden Centre Limited

Annual Report and Financial Statements
Year Ended 28 February 2023

Registration number: 04622982

 

Homeleigh Garden Centre Limited

Contents

Strategic Report

1 to 2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Statement of Income and Retained Earnings

8

Balance Sheet

9

Statement of Cash Flows

10

Notes to the Financial Statements

11 to 23

 

Homeleigh Garden Centre 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 the operation of garden centres in the South West of the United Kingdom, with two located in Cornwall (Launceston and Bude) and one in Devon (Crediton).

Fair review of the business

After the challenging years impacted by the Covid-19 pandemic, our trading has returned to more normal levels in the current financial year (22/23), however, inflation has led to increasing costs, and therefore lower profits than in the previous year.

Whilst we experienced a significant increase in sales last year (21/22), reaching £11.0m compared to £8.8m in 20/21, this year’s turnover stabilised at £10.6m. This represents a 3.6% decline in turnover compared to the previous year.

Administrative expenses increased from 29.3% to 35.0% of turnover due to higher labour and energy costs. Consequently, pre-tax profit declined from £1.3m in 21/22 to £0.7m in 22/23.

To provide a more realistic assessment, we believe it is appropriate to benchmark this year's figures against our pre-Covid performance of 2019/20, excluding the exceptional figures from the past two years. Upon doing so we can see that our turnover has grown by a notable 33.2% between the financial years of 19/20 and 22/23.

Our commitment to retaining and rewarding our staff is reflected in our above-national-minimum-wage policy, which applies to all staff members. Additionally, salary increases were implemented ahead of the national minimum wage increase in April 2023, affecting the figures for this accounting year. We have successfully overcome staff shortages and hiring difficulties seen in the previous year, due in part to the pandemic. We see excellent staff retention, which we believe is attributed to our strong reputation in the local communities and competitive compensation packages.

We proudly opened our new store in Crediton, Devon on 27th February 2023, representing a significant financial investment. The new store features a modern café with a biophilic design and breathtaking countryside views. We employed local contractors for the construction and have welcomed enthusiastic individuals from the surrounding area to join our team. We have been well supported by the local community, resulting in strong initial sales. Whilst these sales are not reflected in this year’s accounts, we have high hopes for the future performance of the store.

In our continuous efforts to enhance our offerings to customers, we made strategic investments during the year. This includes the addition of a car wash at our Bude store and a remodeling of our Aquatics center in Launceston. Furthermore, we are actively exploring opportunities to expand our offerings, particularly at our larger flagship Launceston store, which hosts a business center featuring an estate agents, hair and beauty salon, podiatry clinic, furniture store, and hand car wash.

 

Homeleigh Garden Centre Limited

Strategic Report for the Year Ended 28 February 2023

Principal risks and uncertainties

Sales across our group of stores were slow in the early part of the year due to unseasonably cold weather and the difficult economic situation characterised by rising inflation and the cost-of-living crisis. However, as the weather improved, sales rebounded, and we anticipate a strong performance in the upcoming year.

We acknowledge the impact of increasing supplier costs and the significant rise in energy expenses. To mitigate these challenges, we have installed solar panels on our new Crediton store and continue to benefit from the extensive number of panels installed at our Launceston store.

We remain committed to keeping our costs reasonable while supporting the local community through fair wages, employment opportunities, and the utilisation of local suppliers and contractors whenever feasible. Our strong workforce makes us a key employer in the towns where our garden centres are located.

In conclusion, we are optimistic about the future of our garden centres and are confident that our continued focus on customer satisfaction, strategic investments, and community engagement will contribute to our long-term success.

The Directors are satisfied that the company will remain a going concern, supported by the financial data of post year end trading and projections for future accounting periods.

Approved and authorised by the Board on 28 November 2023 and signed on its behalf by:
 

.........................................
Mrs E J Broad
Director

 

Homeleigh Garden Centre 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:

D J Broad Esq

Mrs E J Broad

R J Broad Esq

Financial instruments

Objectives and policies

The company’s operations are exposed to interest rate fluctuations. The company has a mixture of fixed and variable loans to mitigate this risk. Additionally, management monitors and takes action to mitigate the company’s price, credit and liquidity risk.

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

Price risk
The company is at risk of volatility in prices of raw materials. The company mitigates its risk to this volatility by working to anticipate a contingency in price setting before orders are quoted.

Credit risk
The company works to mitigate credit risk by running a credit application process before taking on a new customer. Outstanding debt is actively monitored, and credit terms are updated when necessary.

Liquidity risk
There is a risk that the company could over trade and have insufficient funds available to pay debts as they fall due. The risk is mitigated by the fact that stock holdings are carefully managed and rapidly turned over, any outstanding debts are actively chased, and good relationships are maintained with suppliers.

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 28 November 2023 and signed on its behalf by:
 

.........................................
Mrs E J Broad
Director

 

Homeleigh Garden Centre 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.

 

Homeleigh Garden Centre Limited

Independent Auditor's Report to the Members of Homeleigh Garden Centre Limited

Opinion

We have audited the financial statements of Homeleigh Garden Centre Limited (the 'company') for the year ended 28 February 2023, which comprise the Statement of Income and 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.

 

Homeleigh Garden Centre Limited

Independent Auditor's Report to the Members of Homeleigh Garden Centre 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 4, 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.

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:

 

Homeleigh Garden Centre Limited

Independent Auditor's Report to the Members of Homeleigh Garden Centre Limited

We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK.

As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue operating and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Reviewing legal and professional costs to identify legal costs in respect of non compliance;
• Making enquiries with management whether there have been any known instances, allegations or suspicions of fraud or non-compliance with laws and regulations.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting. Our procedures involved the following:
• Reviewing nominal journal entries for reasonableness;
• Reviewing significant accounting estimates for bias;
• Reviewing inventories for evidence of impairment;

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

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.

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.

......................................
James Barrett (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

29 November 2023

 

Homeleigh Garden Centre Limited

Statement of Income and Retained Earnings

Year Ended 28 February 2023

Note

2023
£

2022
£

Turnover

3

10,607,254

11,034,482

Cost of sales

 

(6,106,098)

(6,556,584)

Gross profit

 

4,501,156

4,477,898

Administrative expenses

 

(3,716,582)

(3,231,690)

Other operating income

4

98,087

173,623

Operating profit

5

882,661

1,419,831

Other interest receivable and similar income

9

1,042

212

Interest payable and similar charges

10

(146,908)

(119,883)

 

(145,866)

(119,671)

Profit before tax

 

736,795

1,300,160

Taxation

11

(154,715)

(288,636)

Profit for the financial year

 

582,080

1,011,524

Retained earnings brought forward

 

4,456,501

3,444,977

Retained earnings carried forward

 

5,038,581

4,456,501

 

Homeleigh Garden Centre Limited

Balance Sheet

28 February 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

10,000

12,500

Tangible assets

13

7,475,891

5,084,533

Investment property

14

926,963

586,944

 

8,412,854

5,683,977

Current assets

 

Stocks

15

3,216,465

3,177,465

Debtors

16

140,265

101,324

Cash at bank and in hand

 

534,731

1,137,730

 

3,891,461

4,416,519

Creditors: Amounts falling due within one year

18

(2,247,432)

(2,212,261)

Net current assets

 

1,644,029

2,204,258

Total assets less current liabilities

 

10,056,883

7,888,235

Creditors: Amounts falling due after more than one year

18

(4,708,449)

(3,276,596)

Provisions for liabilities

21

(308,853)

(154,138)

Net assets

 

5,039,581

4,457,501

Capital and reserves

 

Called up share capital

1,000

1,000

Profit and loss account

5,038,581

4,456,501

Shareholders' funds

 

5,039,581

4,457,501

Approved and authorised by the Board on 28 November 2023 and signed on its behalf by:
 

.........................................
D J Broad Esq
Director

.........................................
R J Broad Esq
Director

 
     

Company Registration Number: 04622982

 

Homeleigh Garden Centre Limited

Statement of Cash Flows

Year Ended 28 February 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

582,080

1,011,524

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

424,181

284,567

Loss on disposal of tangible assets

4,047

23,497

Finance income

9

(1,042)

(212)

Finance costs

10

146,908

119,883

Income tax expense

11

154,715

288,636

 

1,310,889

1,727,895

Working capital adjustments

 

Increase in stocks

15

(39,000)

(921,866)

Increase in trade debtors

16

(38,941)

(43,488)

Increase in trade creditors

18

617,940

240,468

Cash generated from operations

 

1,850,888

1,003,009

Income taxes paid

11

(266,168)

(228,721)

Net cash flow from operating activities

 

1,584,720

774,288

Cash flows from investing activities

 

Interest received

9

1,042

212

Acquisitions of tangible assets

(2,825,585)

(1,173,163)

Proceeds from sale of tangible assets

 

8,499

4,700

Acquisition of investment properties

(340,019)

(36,944)

Net cash flows from investing activities

 

(3,156,063)

(1,205,195)

Cash flows from financing activities

 

Interest paid

10

(146,908)

(119,883)

Proceeds from bank borrowing draw downs

 

2,550,000

(330,973)

Repayment of bank borrowing

 

(1,393,857)

-

Payments to finance lease creditors

 

(41,937)

(43,489)

Net cash flows from financing activities

 

967,298

(494,345)

Net decrease in cash and cash equivalents

 

(604,045)

(925,252)

Cash and cash equivalents at 1 March

 

1,137,730

2,062,982

Cash and cash equivalents at 28 February

 

533,685

1,137,730

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

1

General information

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

The address of its registered office is:
Homeleigh Garden Centre
Dutson
Launceston
Cornwall
PL15 9SP

These financial statements were authorised for issue by the Board on 28 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.

Revenue recognition

Turnover represents net invoiced sales of goods to customers during the period, excluding value added tax.

i) Sale of goods - garden centre transactions
Turnover arising from cash and credit sales made within the garden centres is recognised at the point of sale.

ii) Sale of goods - internet based transactions
The company sells goods via its website for delivery to the customer. Turnover is recognised when the risks and rewards of the inventory is passed to the customer on dispatch of the goods. Transactions are settled by credit or payment card.

(iii) Hairdressing income
The company provides hairdressing services on the premises. Revenue is recognised in the accounting period in which the service takes place with payment arising on the same day. Payments are settled by cash or payment card.

(iv) Farm income
Turnover from farm sales is recognised on the date of sale, measured at the fair value of the consideration received or receivable, excluding discounts and rebates.

Government grants

Government grants are accounted for based on the accrual model. Grants relating to revenue are recognised in income in the periods in which they become receivable.

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

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 corporation 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.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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 and buildings

20% and 4% straight line, land is not depreciated

Motor vehicles

20% reducing balance

Plant and machinery

15% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

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

Goodwill

10% straight line

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

Stocks

Garden centre stocks are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items.

Farm stock is split between cattle, sheep and produce and are all valued at cost. Where cost cannot be determined they are valued at their fair value.

The cost formula used in measuring all stock is FIFO.

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.

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.

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

3

Turnover

The analysis of the company's turnover for the year by class of business is as follows:

2023
£

2022
£

Garden centre

9,804,260

10,265,072

Hairdressing

148,243

149,790

Farm

654,751

619,620

10,607,254

11,034,482

The analysis of the company's Turnover for the year by market is as follows:

2023
£

2022
£

UK

10,607,254

11,034,482

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Government grants

-

119,603

Sub lease rental income

58,907

27,740

Miscellaneous other operating income

39,180

26,280

98,087

173,623

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

421,681

282,067

Amortisation expense

2,500

2,500

Loss on disposal of property, plant and equipment

4,047

23,497

6

Staff costs

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

2023
£

2022
£

Wages and salaries

2,147,856

1,897,381

Social security costs

153,314

116,295

Pension costs, defined contribution scheme

71,808

46,320

2,372,978

2,059,996

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

2023
No.

2022
No.

Farming

1

1

Administration and support

4

4

Garden centre

124

125

129

130

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

28,006

26,147

Contributions paid to money purchase schemes

36,000

21,074

64,006

47,221

8

Auditor's remuneration

2023
£

2022
£

Audit of the financial statements

10,300

10,000


 

9

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

1,042

212

10

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

146,672

113,565

Interest on obligations under finance leases and hire purchase contracts

236

6,318

146,908

119,883

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

11

Taxation

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

2023
£

2022
£

Current taxation

UK corporation tax

-

266,168

Deferred taxation

Arising from origination and reversal of timing differences

154,715

22,468

Tax expense in the income statement

154,715

288,636

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

From April 2023 the tax rate will increase to 25% for companies with profits over £250,000.

The differences are reconciled below:

2023
£

2022
£

Profit before tax

736,795

1,300,160

Corporation tax at standard rate

139,991

247,030

Effect of revenues exempt from taxation

198

-

Effect of expense not deductible in determining taxable profit (tax loss)

26,950

9,584

UK deferred tax expense relating to changes in tax rates or laws

37,131

36,993

Decrease from effect of tax incentives

(49,555)

(4,971)

Total tax charge

154,715

288,636

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Short term timing differences

308,853

2022

Liability
£

Short term timing differences

154,138

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

12

Intangible assets

Goodwill
 £

Cost or valuation

At 1 March 2022

25,000

At 28 February 2023

25,000

Amortisation

At 1 March 2022

12,500

Amortisation charge

2,500

At 28 February 2023

15,000

Carrying amount

At 28 February 2023

10,000

At 28 February 2022

12,500

13

Tangible assets

Land and buildings
£

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 March 2022

5,918,461

299,014

1,488,204

7,705,679

Additions

2,542,050

78,250

205,285

2,825,585

Disposals

-

-

(27,504)

(27,504)

At 28 February 2023

8,460,511

377,264

1,665,985

10,503,760

Depreciation

At 1 March 2022

1,416,616

172,548

1,031,982

2,621,146

Charge for the year

283,394

40,943

97,344

421,681

Eliminated on disposal

-

-

(14,958)

(14,958)

At 28 February 2023

1,700,010

213,491

1,114,368

3,027,869

Carrying amount

At 28 February 2023

6,760,501

163,773

551,617

7,475,891

At 28 February 2022

4,501,845

126,466

456,222

5,084,533

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

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
£

Plant and machinery

76,305

89,770

     

Included within the net book value of land and buildings above is £6,760,501 (2022 - £4,501,845) in respect of freehold land and buildings.
 

14

Investment properties

2023
£

At 1 March

586,944

Additions

340,019

At 28 February

926,963

The investment property (Epcott House) was independently valued by Stags on 29th February 2020. The directors are of the opinion that this is not materially different and continues to reflect the current open market value.

Crediton bungalow was transferred to investment property at the directors best estimate of the cost which the directors consider is not materially different from the open market value as at 28th February 2021.

Willow bungalow was purchased during the year and brought in to investment properties at its purchase price as the best estimate of fair value at the year end.

If investment property had not been revalued it would have been included at historical cost of £1,310,375 (2022 - £970,356).

15

Stocks

2023
£

2022
£

Other inventories

3,216,465

3,177,465

Included within stock are biological assets totalling £273,082 (2022 - £288,659). These are split between cattle £141,950 (2022 - £150,500), sheep £115,355 (2022 - £106,650) and deadstock £15,777 (2022 - £31,509)

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

16

Debtors

2023
£

2022
£

Trade debtors

3,829

53,792

Other debtors

121,547

31,459

Prepayments

14,889

16,073

140,265

101,324

17

Cash and cash equivalents

2023
£

2022
£

Cash at bank

534,731

1,137,730

Bank overdrafts

(1,046)

-

Cash and cash equivalents in statement of cash flows

533,685

1,137,730

18

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

19

138,910

455,511

Trade creditors

 

1,643,428

1,216,352

Social security and other taxes

 

39,315

34,047

Outstanding defined contribution pension costs

 

7,426

6,180

Other creditors

 

202,926

136,741

Accruals

 

215,427

97,262

Corporation tax

11

-

266,168

 

2,247,432

2,212,261

Due after one year

 

Loans and borrowings

19

4,708,449

3,276,596

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

19

Loans and borrowings

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

4,708,449

3,276,596

2023
£

2022
£

Current loans and borrowings

Bank borrowings

137,864

413,574

Bank overdrafts

1,046

-

Hire purchase contracts

-

41,937

138,910

455,511

Bank borrowings

Natwest Fixed rate loan is denominated in £ with a nominal interest rate of 3.35%, and the final instalment is due on 13 February 2030. The carrying amount at year end is £2,326,239 (2022 - £2,427,497).

NatWest loan is denominated in £ with a nominal interest rate of Base rate plus 2.20%%, and the final instalment is due on 5 January 2043. The carrying amount at year end is £2,553,608 (2022 - £Nil).

The NatWest loans are secured by a personal guarantee from the shareholders supported by legal charges over freehold land.

Natwest CIBILs loan is denominated in £ with a nominal interest rate of 3.24-3.64%. This loan was fully repaid in the year. The carrying amount at the year end is £Nil (2022 - £1,260,000).

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

3,992,690

2,224,507

-

-

20

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

-

41,972

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

21

Provisions for liabilities

Deferred tax
£

Total
£

At 1 March 2022

154,138

154,138

Increase in existing provisions

154,715

154,715

At 28 February 2023

308,853

308,853

22

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

         

23

Commitments

Capital commitments

At the year end there were amounts contracted for related to the construction work being carried out at the Crediton shop and the purchase of a bungalow.

The total amount contracted for but not provided in the financial statements was £Nil (2022 - £1,155,000).

24

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 £71,808 (2022 - £46,320).

Contributions totalling £7,426 (2022 - £6,180) were payable to the scheme at the end of the year and are included in creditors.

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 28 February 2023

25

Analysis of changes in net debt

At 1 March 2022
£

Financing cash flows
£

Other non-cash changes
£

At 28 February 2023
£

Cash and cash equivalents

Cash

1,137,730

(602,999)

-

534,731

Overdrafts

-

(1,046)

-

(1,046)

1,137,730

(604,045)

-

533,685

Borrowings

Long term borrowings

(3,276,596)

(1,293,989)

(137,864)

(4,708,449)

Short term borrowings

(413,574)

413,574

(137,864)

(137,864)

Lease liabilities

(41,937)

41,937

-

-

(3,732,107)

(838,478)

(275,728)

(4,846,313)

 

(2,594,377)

(1,442,523)

(275,728)

(4,312,628)

26

Related party transactions

Income and receivables from related parties

2023

Key management
£

Receipt of services

3,000

2022

Key management
£

Receipt of services

3,000

Expenditure with and payables to related parties

2023

Key management
£

Rendering of services

4,300

2022

Key management
£

Rendering of services

43,000

27

Parent and ultimate parent undertaking

The ultimate controlling parties are D J and E J Broad.