Company registration number 11465427 (England and Wales)
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
COMPANY INFORMATION
Directors
G D Richardson
I P Richardson
J M Richardson
D Thompson
Secretary
G D Richardson
Company number
11465427
Registered office
Head Office Gilsthwaite Lane
Kirk Hammerton
York
North Yorkshire
YO26 8AQ
Auditor
BHP LLP
Rievaulx House
1 St Marys Court
Blossom Street
York
England
YO24 1AH
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 September 2023.

Fair review of the business

Another solid performance driven by a significant increase in sales, largely from the commercial amenity market. Seasonal stock was in demand throughout the winter period, helped by a buoyant market and new customers and whilst the summer period felt a little flat, it didn’t disappoint culminating in yet another record year both in terms of sales value and growth percentage.

 

Growth was achieved by maintaining service quality but at a keen price point which flushed volume through the system, but depressed both gross and net margin which were also heavily influenced by cost inflation, particularly that related to wages and salaries.

 

Overall, the year proved to be more robust than we had expected, the additional volume helping to deal with many of the excess stock issues highlighted last year which were almost totally eradicated in conjunction with a plant production cut, which ultimately went a little further than was absolutely necessary, given the performance of sales.

 

The level of profit and cash generation directly resulting from the year was more than acceptable and our forward forecasts suggest that a similar outcome should be achievable next year, although we do expect margins to be under pressure again primarily because production volumes were cut so dramatically in order to remove perceived excess stock and long lines that unit costs are likely to rise disproportionately in the 2024 season.

 

Principal risks and uncertainties

There are however risks and uncertainties within that forward plan and they again largely revolve around cost inflation which is evident in a number of areas, all of which will impact margin and therefore profit particularly as the sales landscape becomes more competitive.

 

Wage inflation is currently and could continue to outstrip our ability to pass cost through to customers. We are as an industry heavily dependent upon manual labour which is often on or close to the National Living Wage. Whilst we are seeking to limit pay inflation, the government has yet again proposed an increase to the national Living Wage of approaching 10% and this unfortunately then pushes pay up at each and every level above. We continue to plan for greater mechanisation and automation within our business, but until it is implemented there is a significant risk that internal labour costs will impact margins.

 

Further, general inflation running through our business on goods and services such as transport, raw materials and energy will continue to put margins under pressure in a competitive market. In the short term, volume increases are masking the overall impact, but should those volumes start to fall if the economy falters, then overall profitability would be impacted. General inflation is not something that is within our control but we must hope for it to return to a much lower level and there is evidence that the pace is starting to slow.

JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
Key performance indicators

The directors monitor the progress of the company by reference to the following KPIs:

 

                    2023        2022    

Increase/(Decrease) in turnover         13.8%         8%

Gross profit percentage             21.4%         22.8%

 

Cashflow during the year was more reflective of the overall performance, boosted by a significant if not overblown reduction in stock. Capital expenditure was in excess of plan and depreciation charges and largely consisted of operational motor vehicles. The balance sheet was cash positive throughout the year which allowed us to continue with a policy of early supplier payments for a cash discount whilst at the same time benefiting from historically high rates of interest on deposits.

 

Our balance sheet remains strong with all debts collectable, albeit at a slower pace than in previous years which we increasing view as an indication of stress within the customer base that maybe experiencing similar margin pressures to those seen in our business during the year. Net assets for Johnsons Nurseries Limited at £3.78m have again been depressed by the transfer of a non-cash dividend to Johnsons Nurseries (Holdings) Limited.

 

We are committed to maximising our positive impact on our customers and minimising our negative impact on the environment. We are accredited to Quality Management system ISO 9001:2015 and this continues to operate effectively with internal and external audits raising no non-conformances and only two opportunities for improvement at the last audit in March 2023. In October 2024 we will be assessed for re-certification.

 

We also gained re-certification of the Environmental Management System ISO 14001:2015 in March 2023 with only one opportunity for improvement.

 

Johnsons Nurseries is accredited to the Plant Healthy Certification Scheme and in August 2023 we passed our external audit for the third year in a row. This is an example of our commitment to the biosecurity of our nursery, our supply chain and the UK as a whole.

 

In order to increase the focus on sustainability and reduction of CO2 emissions, Johnsons Nurseries will work towards Planet Mark Certification in 2024 and this be the start of our net zero journey.

 

All that remains is for me to thank all of our hard working and professional staff for their commitment and continued hard work which made 2023 another success.

 

 

 

 

On behalf of the board

G D Richardson
Director
18 April 2024
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of a wholesale plant nursery.

Results and dividends

The results for the year are set out on page 8.

Interim dividends were paid amounting to £162,837. 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:

G D Richardson
I P Richardson
J M Richardson
D Thompson
Auditor

The auditor, BHP LLP, 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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
G D Richardson
Director
18 April 2024
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOHNSONS NURSERIES (HOLDINGS) LIMITED
- 5 -
Opinion

We have audited the financial statements of Johnsons Nurseries (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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:

JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHNSONS NURSERIES (HOLDINGS) LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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:

 

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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHNSONS NURSERIES (HOLDINGS) LIMITED
- 7 -

To address the risk of fraud through management bias and override of controls, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Daniel Sowden (Senior Statutory Auditor)
For and on behalf of BHP LLP
18 April 2024
Chartered Accountants
Statutory Auditor
Rievaulx House
1 St Marys Court
Blossom Street
York
England
YO24 1AH
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
18,776,171
16,497,767
Cost of sales
(14,750,704)
(12,739,486)
Gross profit
4,025,467
3,758,281
Administrative expenses
(2,603,233)
(2,301,857)
Other operating income
102,432
34,640
Operating profit
4
1,524,666
1,491,064
Interest receivable and similar income
8
61,211
6,428
Interest payable and similar expenses
9
(12,485)
2,266
Profit before taxation
1,573,392
1,499,758
Tax on profit
10
(360,880)
(284,075)
Profit for the financial year
1,212,512
1,215,683
Profit for the financial year is all attributable to the owners of the parent company.
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
1,212,512
1,215,683
Other comprehensive income
-
-
Total comprehensive income for the year
1,212,512
1,215,683
Total comprehensive income for the year is all attributable to the owners of the parent company.
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
3,100,190
3,031,845
Current assets
Stocks
15
4,040,446
4,370,498
Debtors
16
2,533,667
2,417,853
Cash at bank and in hand
2,330,277
1,381,969
8,904,390
8,170,320
Creditors: amounts falling due within one year
17
(2,374,936)
(2,654,210)
Net current assets
6,529,454
5,516,110
Total assets less current liabilities
9,629,644
8,547,955
Creditors: amounts falling due after more than one year
18
(259,447)
(259,228)
Provisions for liabilities
Deferred tax liability
21
308,203
276,408
(308,203)
(276,408)
Net assets
9,061,994
8,012,319
Capital and reserves
Called up share capital
23
2,998
2,998
Profit and loss reserves
9,058,996
8,009,321
Total equity
9,061,994
8,012,319
The financial statements were approved by the board of directors and authorised for issue on 18 April 2024 and are signed on its behalf by:
18 April 2024
G D Richardson
Director
Company registration number 11465427 (England and Wales)
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
13
253,002
253,002
Current assets
Debtors
16
5,074,477
4,074,477
Cash at bank and in hand
1,628
1,745
5,076,105
4,076,222
Creditors: amounts falling due within one year
17
(10)
(7)
Net current assets
5,076,095
4,076,215
Total assets less current liabilities
5,329,097
4,329,217
Creditors: amounts falling due after more than one year
18
(250,000)
(250,000)
Net assets
5,079,097
4,079,217
Capital and reserves
Called up share capital
23
2,998
2,998
Profit and loss reserves
5,076,099
4,076,219
Total equity
5,079,097
4,079,217

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,162,717 (2022 - £1,413,290 profit).

The financial statements were approved by the board of directors and authorised for issue on 18 April 2024 and are signed on its behalf by:
18 April 2024
G D Richardson
Director
Company registration number 11465427 (England and Wales)
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2021
2,998
6,957,006
6,960,004
Year ended 30 September 2022:
Profit and total comprehensive income
-
1,215,683
1,215,683
Dividends
11
-
(163,368)
(163,368)
Balance at 30 September 2022
2,998
8,009,321
8,012,319
Year ended 30 September 2023:
Profit and total comprehensive income
-
1,212,512
1,212,512
Dividends
11
-
(162,837)
(162,837)
Balance at 30 September 2023
2,998
9,058,996
9,061,994
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2021
2,998
2,826,297
2,829,295
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
1,413,290
1,413,290
Dividends
11
-
(163,368)
(163,368)
Balance at 30 September 2022
2,998
4,076,219
4,079,217
Year ended 30 September 2023:
Profit and total comprehensive income
-
1,162,717
1,162,717
Dividends
11
-
(162,837)
(162,837)
Balance at 30 September 2023
2,998
5,076,099
5,079,097
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,734,139
821,673
Interest paid
(12,485)
12,694
Income taxes paid
(323,638)
(264,256)
Net cash inflow from operating activities
1,398,016
570,111
Investing activities
Purchase of tangible fixed assets
(331,175)
(180,534)
Proceeds from disposal of tangible fixed assets
25,000
-
Repayment of loans
-
2,448
Interest received
61,211
6,428
Net cash used in investing activities
(244,964)
(171,658)
Financing activities
Repayment of borrowings
-
(10,428)
Payment of finance leases obligations
(41,907)
(12,299)
Dividends paid to equity shareholders
(162,837)
(163,368)
Net cash used in financing activities
(204,744)
(186,095)
Net increase in cash and cash equivalents
948,308
212,358
Cash and cash equivalents at beginning of year
1,381,969
1,169,611
Cash and cash equivalents at end of year
2,330,277
1,381,969
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 15 -
1
Accounting policies
Company information

Johnsons Nurseries (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Head Office Gilsthwaite Lane, Kirk Hammerton, York, North Yorkshire, YO26 8AQ.

 

The group consists of Johnsons Nurseries (Holdings) Limited and all of its subsidiaries.

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
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated financial statements incorporate those of Johnsons Nurseries (Holdings) Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the merger method. This method has been used as the group was formed by way of a group reconstruction on 1 October 2018. As a result no fair value adjustments are required, the results and cash flows are brought in from the beginning of the financial year and the comparatives have been restated to combine the results for the previous period. Details of the company's subsidiaries can be found in Note 14.

 

All financial statements are made up to 30 September 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group, based on financial budgets/forecasts and cashflow projections, has adequate resources to continue in operational existence for the foreseeable future and deal with any financial losses that may arise. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.4
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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

1.5
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.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
10% on reducing balance and 2% on reducing balance
Leasehold land and buildings
10% on reducing balance and 2% on reducing balance
Plant and equipment
10% to 20% on cost
Fixtures and fittings
10% to 33% on cost
Motor vehicles
20% on cost

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 recognised in the profit and loss account.

1.6
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.8
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.

1.9
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.

1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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.

JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 19 -
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 group 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 group 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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.

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.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
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 group’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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. 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, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
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.

1.14
Retirement benefits

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

JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.15
Leases

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

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.16
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 group’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.

Stock has been written down in respect to those items for which the net realisable value has been estimated by the directors to be lower than the costs because of volume held, quality of the product or because the plant was wasted in the month following the year end.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Plant sales
18,776,171
16,497,767
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
18,776,171
16,497,767
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
3
Turnover and other revenue
(Continued)
- 22 -
2023
2022
£
£
Other revenue
Interest income
61,211
6,428
Grants received
27,575
31,982
Sundry income
72,457
2,658
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
(22,994)
10,382
Government grants
(27,575)
(31,982)
Depreciation of owned tangible fixed assets
290,946
276,229
Depreciation of tangible fixed assets held under finance leases
20,384
12,301
Profit on disposal of tangible fixed assets
(25,000)
-
Operating lease charges
87,712
80,997
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
670
525
Audit of the financial statements of the company's subsidiaries
16,555
12,475
17,225
13,000
For other services
All other non-audit services
61,073
15,681
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Direct
85
84
-
-
Management
12
13
-
-
Administration
36
33
-
-
133
130
-
0
-
0
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
6
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,502,763
3,155,137
-
0
-
0
Social security costs
312,530
289,155
-
-
Pension costs
303,398
324,284
-
0
-
0
4,118,691
3,768,576
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
166,453
59,181
Company pension contributions to defined contribution schemes
19,840
25,000
186,293
84,181
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
55,566
638
Other interest income
5,645
5,790
Total income
61,211
6,428
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
55,566
638
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
637
123
Late payment surcharge
(7,773)
(12,817)
(7,136)
(12,694)
Other finance costs:
Preference share interest
19,618
10,428
Other interest
3
-
Total finance costs
12,485
(2,266)
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
331,317
308,043
Adjustments in respect of prior periods
(2,232)
14
Total current tax
329,085
308,057
Deferred tax
Origination and reversal of timing differences
31,795
(23,982)
Total tax charge
360,880
284,075
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
10
Taxation
(Continued)
- 25 -

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
1,573,392
1,499,758
Expected tax charge based on the standard rate of corporation tax in the UK of 22.01% (2022: 19.00%)
346,275
284,954
Tax effect of expenses that are not deductible in determining taxable profit
11,080
5,979
Adjustments in respect of prior years
-
0
14
Group relief
(26)
(15)
Permanent capital allowances in excess of depreciation
(2,589)
(3,097)
Under/(over) provided in prior years
(2,232)
-
0
Changes in Deferred tax rates
-
0
(2,515)
Remeasurement of deferred tax for changes in tax rate
3,184
(1,245)
Movement in deferred tax not recognised
5,188
-
Taxation charge
360,880
284,075
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
162,837
163,368
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 26 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 October 2022
2,246,362
136,452
2,192,212
575,977
1,377,591
6,528,594
Additions
-
0
-
0
110,122
24,806
244,747
379,675
Disposals
-
0
-
0
-
0
-
0
(118,725)
(118,725)
At 30 September 2023
2,246,362
136,452
2,302,334
600,783
1,503,613
6,789,544
Depreciation and impairment
At 1 October 2022
262,990
128,681
1,588,204
404,461
1,112,413
3,496,749
Depreciation charged in the year
26,127
777
107,558
52,702
124,166
311,330
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(118,725)
(118,725)
At 30 September 2023
289,117
129,458
1,695,762
457,163
1,117,854
3,689,354
Carrying amount
At 30 September 2023
1,957,245
6,994
606,572
143,620
385,759
3,100,190
At 30 September 2022
1,983,372
7,771
604,008
171,516
265,178
3,031,845
The company had no tangible fixed assets at 30 September 2023 or 30 September 2022.

The carrying value of land and buildings comprises:

Group
Company
2023
2022
2023
2022
£
£
£
£
Freehold
1,453,319
1,453,319
-
0
-
0

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Fixtures and fittings
9,225
21,526
-
0
-
0
Motor vehicles
40,417
-
0
-
0
-
0
49,642
21,526
-
-
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 27 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
253,002
253,002
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2022 and 30 September 2023
253,002
Carrying amount
At 30 September 2023
253,002
At 30 September 2022
253,002
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 28 -
14
Subsidiaries

Details of the company's subsidiaries at 30 September 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Johnsons Nurseries Limited
United Kingdom
Ordinary
100.00
0
Johnsons Nurseries (Cattal) Limited
United Kingdom
Ordinary
100.00
0
Johnsons Nurseries (Newlands) Limited
United Kingdom
Ordinary
100.00
0
Johnsons Nurseries (Roecliffe) Limited
United Kingdom
Ordinary
100.00
0
Johnsons Nurseries (Thornville) Limited
United Kingdom
Ordinary
100.00
0
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
197,903
291,184
-
-
Finished goods and goods for resale
3,842,543
4,079,314
-
0
-
0
4,040,446
4,370,498
-
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,002,101
1,816,461
-
0
-
0
Corporation tax recoverable
94,114
94,114
-
0
-
0
Amounts owed by group undertakings
-
-
5,074,477
4,074,477
Other debtors
279,639
288,230
-
0
-
0
Prepayments and accrued income
157,813
219,048
-
0
-
0
2,533,667
2,417,853
5,074,477
4,074,477

Included within other debtors are amounts totalling £258,966 (2022: £266,522) repayable over the next 24 years. Of this amount, £251,411 (2022: £255,092) is due > 1 year.

JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 29 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
18,674
12,300
-
0
-
0
Trade creditors
1,508,023
1,598,203
-
0
-
0
Corporation tax payable
168,497
163,050
-
0
-
0
Other taxation and social security
276,286
409,749
-
-
Other creditors
56,213
62,034
-
0
-
0
Accruals and deferred income
347,243
408,874
10
7
2,374,936
2,654,210
10
7
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
20
9,447
9,228
-
0
-
0
Other borrowings
19
250,000
250,000
250,000
250,000
259,447
259,228
250,000
250,000
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Preference shares
250,000
250,000
250,000
250,000
Payable after one year
250,000
250,000
250,000
250,000

 

The preference share capital represents 250,000 £1 cumulative preference shares. £150,000 issued in 2006 and £100,000 issued in 2014. They bear a dividend rate variable at 3.00% over the Bank of England base rate. The shares have the right to payment in priority on winding up of the amounts paid on the preference shares plus any dividend arrears. The shares have no voting rights.

JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 30 -
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
18,674
12,300
-
0
-
0
In two to five years
9,447
9,228
-
0
-
0
28,121
21,528
-
-

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Net obligations under hire purchase contracts are secured against the assets to which they relate.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
261,186
230,274
Chargeable gains and losses
58,073
58,073
Retirement benefit obligations
(11,056)
(11,939)
308,203
276,408
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 October 2022
276,408
-
Charge to profit or loss
31,795
-
Liability at 30 September 2023
308,203
-
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 31 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
303,398
324,284

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Contributions totalling £51,825 (2022: £49,410) were payable to the fund at the year end.

23
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
1,999 Ordinary shares of £1 each
1,999
1,999
999 Ordinary A shares of £1 each
999
999
2,998
2,998
24
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
46,138
31,956
-
-
Between two and five years
43,632
18,074
-
-
89,770
50,030
-
-
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2023
2022
2023
2022
£
£
£
£
Acquisition of tangible fixed assets
55,052
259,388
-
-
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 32 -
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
566,459
556,322
Transactions with related parties

During the period Richardson Brothers (Whixley) LLP, in which G D Richardson and I P Richardson are partners, charged £2,500 (2022: £2,500) for rent of land.

 

During the year the company paid interim dividends of £162,837 (2022: £163,368) to the various Richardson Family Settlements.

 

During the year the company paid preference dividends of £19,618 (2022: £10,428) to a Director.

 

The group made loans to Directors. Interest of £5,506 (2022: £5,790) has been charged on the loan in the period. At the year end £254,112 (2022: £266,522) is outstanding and shown within other debtors.

 

The group received loans from the Directors. The loans are unsecured, repayable on demand and non-interest bearing, except for £nil (2022: £4,029) which attracts a variable rate of interest at 2.5% over the Bank of England base rate. At the year end £5,075 (2022: £10,568) is outstanding and shown within other creditors.

 

27
Controlling party

In the opinion of the directors, the company's ultimate controlling parties are the Trustees of various Richardson Family Settlements.

28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,212,512
1,215,683
Adjustments for:
Taxation charged
360,880
284,075
Finance costs
12,485
(2,266)
Investment income
(61,211)
(6,428)
Gain on disposal of tangible fixed assets
(25,000)
-
Depreciation and impairment of tangible fixed assets
311,330
288,530
Movements in working capital:
Decrease/(increase) in stocks
330,052
(670,138)
Increase in debtors
(115,814)
(438,771)
(Decrease)/increase in creditors
(291,095)
150,988
Cash generated from operations
1,734,139
821,673
JOHNSONS NURSERIES (HOLDINGS) LIMITED
(FORMERLY JOHNSONS OF WHIXLEY HOLDINGS LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 33 -
29
Analysis of changes in net funds - group
1 October 2022
Cash flows
New finance leases
Market value movements
30 September 2023
£
£
£
£
£
Cash at bank and in hand
1,381,969
948,308
-
-
2,330,277
Borrowings excluding overdrafts
(250,000)
19,618
-
(19,618)
(250,000)
Obligations under finance leases
(21,528)
41,907
(48,500)
-
(28,121)
1,110,441
1,009,833
(48,500)
(19,618)
2,052,156
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