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Greenthumb Limited

Registered number: 03304341
Annual report and
 financial statements
For the year ended 31 March 2023

 
GREENTHUMB LIMITED
 
 
COMPANY INFORMATION


Directors
S P Waring 
P J Edwards 
K J Ollier (appointed 20 December 2023)




Company secretary
K Pritchard



Registered number
03304341



Registered office
Integra
St Asaph Business Park

St Asaph

Denbighshire

LL17 0JD




Independent auditor
Mazars LLP
Chartered Accountants & Statutory Auditor

One St. Peter's Square

Manchester

M2 3DE





 
GREENTHUMB LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 6
Independent Auditor's Report
 
7 - 10
Consolidated Statement of Comprehensive Income
 
11
Consolidated Statement of Financial Position
 
12
Company Statement of Financial Position
 
13 - 14
Consolidated Statement of Changes in Equity
 
15
Company Statement of Changes in Equity
 
16
Consolidated Statement of Cash Flows
 
17 - 18
Notes to the Financial Statements
 
19 - 45


 
GREENTHUMB LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

Introduction
 
The directors present their strategic report together with the audited financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the Group is the provision of lawn care services through both a franchise delivery model and company owned branches throughout the United Kingdom. The Group is also involved in replicating brick facades with a lightweight alternative benefitting from an A1 fire rating. 
GreenThumb operates a hybrid business model whereby franchise or company owned branches carry out lawncare services in defined territories all under the GreenThumb brand. Each branch is provided with technical expertise, training of lawn operatives and materials to ensure a consistent high level of service is provided to all GreenThumb customers.
Monolith continues to develop its lightweight alternative to traditional brick construction methods, which are seen as a cheaper, more efficient, and safer option.

Business review

In the year to 31 March 2023, turnover grew 4% to £13,930,079, from £13,396,352 in the prior period through increasing average revenue per live customer.
Gross margin decreased from 56.9% to 54.0%, with global supply chain issues driving up material costs and labour shortages increasing labour costs, resulting in higher prices needing to be charged.
The profit for the year, after taxation, amounted to £623,978 (2022 - £798,219).
The new lawn treatment programme has substantially improved the lawn treatments delivered through the year with innovative new programmes and product technology enabling an all year round service, improving the visual appearance and overall health of customers’ lawns.
Throughout the year, the Group has continued to invest significant sums and resources in its ERP systems, its people and R&D in the lawn care programmes and materials, used to provide a level of customer service and quality of products not offered by anyone else in the market. The year to 31 March 2024 is the first of a five-year strategy to significantly grow the turnover and the range of services offered by GreenThumb.

Future developments

GreenThumb will continue to implement its digital transformation strategy, utilising technology to make operational improvements and enhance the customer experience.
The Group is committed to the ongoing development and improvement of its product offerings to ensure it retains a leading position within the markets in which it operates. It also plans to launch a number of complimentary services in the coming year, leveraging its existing operational framework, to enhance the wellbeing and experience of its customers.
Investment by GreenThumb in the Monolith subsidiary has continued in the year. Interest remains, and is growing significantly, in the Monolith Brickplus product and future positive cash flows are expected.

- 1 -

 
GREENTHUMB LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Environmental sustainability

The Group takes a conscious approach to environmental sustainability. As a pioneering member of the Lawn Assured Scheme, GreenThumb is independently recognised as a company that follows best practice in lawn care. GreenThumb has reduced the volume of herbicide it uses by target spraying, and it has partnered with its suppliers to carbon offset its printed marketing materials. GreenThumb has ordered electric vehicles and is reducing its consumption of fuel by reducing travel time through optimising routes for its field team. Product development is underway under GreenThumb’s sustainability agenda. Through its digital strategy the Group has reduced paper consumption dramatically, and expects to continue to do so in subsequent years. Monolith has partnered with its customers to reuse or recycle its packaging and intends to continue its waste reduction activities.

Principal risks and uncertainties

These are considered to be as follows:
Climate: The changeable British weather remains the main risk to the performance of the business, impacting both the health of customers’ lawns, and the ability of our team to apply treatments. To mitigate this risk the Group continues to invest in new products which address changing climatic conditions. The Company also delivers its services via a series of treatment cycles, which, though tailored to be delivered at certain times of the year, can be adapted if affected by poor weather conditions. 
Cost of living: General cost inflation in the UK over the past two years has resulted in a reduction in the disposable income available for households to spend on goods and services. The Group aims to provide competitively priced market leading products with great customer experience in order to retain existing customers, and has marketing initiatives in place to re-engage with those customers who have lapsed or are likely to.
Brexit: As the majority of materials are sourced from within the UK, Brexit has not had any major impact on materials costs. The indirect impact on the availability of appropriately skilled and qualified labour continues to be a challenge, but the Group offers competitive remuneration and benefits packages to attract and retain staff. 
House-building industry: The Monolith business has developed substantial partnerships in the year, but delays in the progression of projects caused by both planning permission, and higher borrowing costs, have pushed back the delivery of meaningful turnover, and so Monolith continues to be loss making.

- 2 -

 
GREENTHUMB LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Financial risk management objectives and policies
 
Price Risk
The Group is impacted by economic factors and issues affecting global supply chains and the associated prices imposed by its suppliers. Whilst GreenThumb takes steps to mitigate increases they have been substantial across many areas, which has impacted profit in the current year. The Group has excellent relationships with all its suppliers, which mitigates the impact on a number of key cost lines.
Credit Risk
GreenThumb debtors comprise amounts due from individual customers and amounts due from franchise businesses. New debt chase procedures have been introduced in the year to reduce the risk of default. Where deemed necessary, a provision for doubtful debts is recorded. Amounts owed from franchisees are inherently less risky.
Interest Rate Risk
Where necessary, and in line with business strategy, the Group may enter into borrowing arrangements with regulated institutions at contracted rates consistent with general market availability. Refer to note 28 in the financial statements for a detailed breakdown of borrowings.
Liquidity Risk
The short term funding requirements and cash flows of the Group are monitored continuously, and in the main, are consistent and predictable. The Group has overdraft facilities available to it should the need arise.
The Group monitors, at least monthly in directors meetings, Profit and Loss, Balance Sheet and Cashflow performance against a combination of Annual Business Plan plus a rolling three monthly forecast to ensure all variances are analysed against expected performance and decisions are taken based on the most up to date information.


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



P J Edwards
Director

Date: 19 February 2024

- 3 -

 
GREENTHUMB LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report and financial statements for the year ended 31 March 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

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


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends
Dividends of £535,000 (2022 - £525,000) were paid during the year. The directors do not recommend the payment of a final dividend. 

Directors

The directors who served during the year were:

S P Waring 
J S Le Brun (appointed 1 June 2022, resigned 14 June 2023)
P J Edwards 
A M Hallam (resigned 25 April 2023)
V M Mapplebeck (resigned 3 May 2022)

Disclosure of information in the Strategic Report

The Strategic Report includes the following disclosures which would otherwise have been included within the Directors’ Report:
 
An indication of exposure to Price RIsk, Credit Risk, Interest Rate Risk and Liquidity Risk;
Financial risk management objectives and policies;
Future developments
- 4 -

 
GREENTHUMB LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023

Going concern

The Group’s forecasts and projections, which take into account risks and uncertainties, show that the Group should be able to continue to operate profitably, and has mitigating actions available to it, in the course of normal operations, which would counter the impact of a number of reasonably possible scenarios. Furthermore, the Group has an unutilised overdraft facility at its disposal which could provide further liquidity if needed.
The directors therefore have a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. For this reason, they continue to adopt, and consider appropriate, the going concern basis in preparing the financial statements.

Engagement with employees

The Group operates a framework for employee information and consultation which complies with the requirements of the Information and Consultation of Employees Regulations 2004. During the year, the policy of providing employees with information about the Group has continued. Regular meetings are held between local management and employees to allow a free flow of information and ideas. The Company supports its colleagues with an employee assistance program and mental health first aiders who are specifically trained, it has hosted wellbeing seminars to support the employees and franchise partners, and has an employee forum and a central hub where employees are invited to raise any suggestions or feedback they have. The Company regularly seeks feedback from its employees every 6 months through its employee engagement survey. The level of learning and development for all colleagues and franchise partners has increased substantially in line with the company’s growth plans and to give its customers a  great experience.

Disabled employees

The Group gives full consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion. Where existing employees become disabled, it is the Group’s policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim. 

Disclosure of information to auditor

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

the directors have taken all the steps that ought to have been taken as directors in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.

- 5 -

 
GREENTHUMB LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


Auditor

The auditor, Mazars LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





P J Edwards
Director

Date: 19 February 2024

- 6 -

 
GREENTHUMB LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GREENTHUMB LIMITED
 

Opinion

We have audited the financial statements of Greenthumb Limited (the ‘Company’) for the year ended 31 March 2023 which comprise the Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Position, the Consolidated and Company Statement of Changes in Equity, the Consolidated 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 FRS 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 31 March 2023 and of the Group's 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’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group’s and the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. 
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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.
- 7 -

 
GREENTHUMB LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GREENTHUMB LIMITED
 

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 the audit:
 
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Group and Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report.

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

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.

- 8 -

 
GREENTHUMB LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GREENTHUMB LIMITED
 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement 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 Group’s and Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or 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.
 
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
 
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. 

Based on our understanding of the Group and Parent Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation and anti-money laundering regulation

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the  Group and the Parent company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the Group and the Parent Company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006. 
- 9 -

 
GREENTHUMB LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF GREENTHUMB LIMITED
 

In addition, we evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut-off assertion) and significant one-off or unusual transactions. 

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of the audit 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.




Neil Barton (Senior statutory auditor)

  
for and on behalf of

Mazars LLP
Chartered Accountants and Statutory Auditor 
One St. Peter's Square
Mancheter
M2 3DE



19 February 2024
- 10 -

 
GREENTHUMB LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
Note
£
£

  

Turnover
 4 
13,930,079
13,396,352

Cost of sales
  
(6,403,348)
(5,771,458)

Gross profit
  
7,526,731
7,624,894

Administrative expenses
  
(8,566,539)
(7,954,060)

Other operating income
 5 
1,617,271
1,291,724

Operating profit
 6 
577,463
962,558

Interest receivable and similar income
 10 
479
-

Interest payable and similar expenses
 11 
(21,665)
(11,490)

Profit before tax
  
556,277
951,068

Tax on profit
 12 
67,701
(152,849)

Profit for the financial year
  
623,978
798,219

  

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2023 (2022: £NIL).

The notes on pages 19 to 45 form part of these financial statements.

- 11 -

 
GREENTHUMB LIMITED
REGISTERED NUMBER: 03304341

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
1,656,311
1,415,169

Tangible assets
 15 
1,598,481
1,397,833

  
3,254,792
2,813,002

Current assets
  

Stocks
 17 
426,923
131,460

Debtors: amounts falling due within one year
 18 
2,426,796
2,661,127

Cash at bank and in hand
 19 
1,588,909
2,447,674

  
4,442,628
5,240,261

Creditors: amounts falling due within one year
 20 
(3,940,305)
(4,462,384)

Net current assets
  
 
 
502,323
 
 
777,877

Total assets less current liabilities
  
3,757,115
3,590,879

Creditors: amounts falling due after more than one year
 21 
(572,988)
(676,135)

Provisions for liabilities
  

Deferred taxation
 24 
(230,202)
(179,028)

Other provisions
 25 
(353,659)
(224,428)

  
 
 
(583,861)
 
 
(403,456)

Net assets
  
2,600,266
2,511,288


Capital and reserves
  

Called up share capital 
 26 
1,000
1,000

Profit and loss account
 27 
2,599,266
2,510,288

  
2,600,266
2,511,288


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 19 February 2024.




P J Edwards
Director

- 12 -

 
GREENTHUMB LIMITED
REGISTERED NUMBER: 03304341

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 14 
1,656,311
1,415,169

Tangible assets
 15 
1,484,376
1,290,655

Investments
 16 
10
10

  
3,140,697
2,705,834

Current assets
  

Stocks
 17 
255,149
88,549

Debtors: amounts falling due within one year
 18 
4,208,384
4,082,897

Cash at bank and in hand
 19 
1,576,572
2,421,666

  
6,040,105
6,593,112

Creditors: amounts falling due within one year
 20 
(3,785,500)
(4,256,092)

Net current assets
  
 
 
2,254,605
 
 
2,337,020

Total assets less current liabilities
  
5,395,302
5,042,854

  

Creditors: amounts falling due after more than one year
 21 
(572,988)
(676,135)

Provisions for liabilities
  

Deferred taxation
 24 
(230,202)
(179,028)

Other provisions
 25 
(238,574)
(187,485)

  
 
 
(468,776)
 
 
(366,513)

Net assets
  
4,353,538
4,000,206


Capital and reserves
  

Called up share capital 
 26 
1,000
1,000

Profit and loss account
 27 
4,352,538
3,999,206

  
4,353,538
4,000,206


- 13 -

 
GREENTHUMB LIMITED
REGISTERED NUMBER: 03304341
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2023

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax
of the Company for the year was £888,332 (2022: £1,486,314).
The financial statements were approved and authorised for issue by the board and were signed on its behalf 19 February 2024.

P J Edwards
Director

- 14 -

 
GREENTHUMB LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2021
1,000
2,237,069
2,238,069


Comprehensive income for the year

Profit for the year
-
798,219
798,219
Total comprehensive income for the year
-
798,219
798,219


Contributions by and distributions to owners

Dividends: Equity capital
-
(525,000)
(525,000)


Total transactions with owners
-
(525,000)
(525,000)



At 1 April 2022
1,000
2,510,288
2,511,288


Comprehensive income for the year

Profit for the year
-
623,978
623,978
Total comprehensive income for the year
-
623,978
623,978


Contributions by and distributions to owners

Dividends: Equity capital
-
(535,000)
(535,000)


Total transactions with owners
-
(535,000)
(535,000)


At 31 March 2023
1,000
2,599,266
2,600,266


The notes on pages 19 to 45 form part of these financial statements.

- 15 -

 
GREENTHUMB LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2021
1,000
3,037,892
3,038,892


Comprehensive income for the year

Profit for the year
-
1,486,314
1,486,314
Total comprehensive income for the year
-
1,486,314
1,486,314


Contributions by and distributions to owners

Dividends: Equity capital
-
(525,000)
(525,000)


Total transactions with owners
-
(525,000)
(525,000)



At 1 April 2022
1,000
3,999,206
4,000,206


Comprehensive income for the year

Profit for the year
-
888,332
888,332
Total comprehensive income for the year
-
888,332
888,332


Contributions by and distributions to owners

Dividends: Equity capital
-
(535,000)
(535,000)


Total transactions with owners
-
(535,000)
(535,000)


At 31 March 2023
1,000
4,352,538
4,353,538


The notes on pages 19 to 45 form part of these financial statements.

- 16 -

 
GREENTHUMB LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
623,978
798,219

Adjustments for:

Amortisation of intangible assets
549,857
475,294

Depreciation of tangible assets
178,421
182,762

Profit on disposal of tangible assets
-
(284,845)

Interest paid
21,665
11,490

Interest received
(479)
-

Taxation (credit)/charge
(67,701)
152,849

(Increase)/decrease in stocks
(295,463)
14,926

Decrease/(increase) in debtors
366,331
(89,166)

Decrease in creditors
(876,785)
(45,835)

Increase in provisions
129,231
187,485

Corporation tax paid
(13,125)
(145,148)

Net cash generated from operating activities

615,930
1,258,031


Cash flows from investing activities

Purchase of intangible fixed assets
(790,999)
(649,437)

Sale of intangible assets
-
37,559

Purchase of tangible fixed assets
(379,069)
(161,810)

Sale of tangible fixed assets
-
317,442

Sale of investment properties
-
415,501

Interest received
479
-

Net cash from investing activities

(1,169,589)
(40,745)
- 17 -

 
GREENTHUMB LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of loans
(100,000)
(516,334)

Repayment of/new finance leases
106,697
2,089

Dividends paid
(535,000)
(525,000)

Interest paid
(21,665)
(11,490)

Net cash used in financing activities
(549,968)
(1,050,735)

Net (decrease)/increase in cash and cash equivalents
(1,103,627)
166,551

Cash and cash equivalents at beginning of year
1,885,360
1,718,809

Cash and cash equivalents at the end of year
781,733
1,885,360


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,588,909
2,447,674

Bank overdrafts
(807,176)
(562,314)

781,733
1,885,360


The notes on pages 19 to 45 form part of these financial statements.

- 18 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

1.


General information

Greenthumb Limited ("the Company") is a private limited company limited by shares and incorporated in England and Wales under the Companies Act 2006, registered number 03304341. The address of the registered office is given on the Company information page and the nature of the Company's operations and its principal activities are set out in the strategic report.
Greenthumb Limited is a parent undertaking and therefore these consolidated financial statements present the financial information of the Company and its subsidiary undertaking (together referred to as “the Group”).

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

These financial statements have been presented in pound sterling which is the functional currency of the Company, and rounded to the nearest £1.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

- 19 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiary as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

  
2.3

The financial reporting standard 102 - reduced disclosure exemptions

The Parent Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in
the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

 
2.4

Going concern

The Group's business activities, together with the factors likely to affect its future development, performance and position are set out in the Strategic Report on pages 1 to 3.
The Group’s forecasts and projections, which take into account the risks and uncertainties show that the Group should be able to operate within the level of its current working capital requirements.
The directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements. For this reason, they continue to adopt, and consider appropriate, the going concern basis in preparing the financial statements.

- 20 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.5

Revenue

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

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.6

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research is recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

- 21 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.8

Government grants

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

 
2.9

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.10

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.11

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.12

Pensions

Defined contribution pension plan

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

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

- 22 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.13

Current and deferred taxation

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

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

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

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

- 23 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.14

Intangible assets

Goodwill

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

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

The estimated useful lives range as follows:

Patents
-
5 years
Development expenditure
-
5 years
Goodwill
-
8-10 years
Customer lists
-
5 years

- 24 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.15

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Freehold property
-
2% straight line
Long term leasehold property
-
2% straight line
Plant, machinery & other equipment
-
20 - 33% straight line
Motor vehicles
-
25% reducing balance

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

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

Assets under construction are held at cost and are not depreciated.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.17

Stocks

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

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

 
2.18

Debtors

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

- 25 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)

 
2.19

Cash and cash equivalents

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

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

 
2.20

Creditors

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

 
2.21

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
 
- 26 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.21
Financial instruments (continued)


Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
 
- 27 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

2.Accounting policies (continued)


2.21
Financial instruments (continued)


Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Financial liabilities
Basic financial liabilities, including trade and other payables, bank loans and amounts due to fellow group companies 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.
Debt instruments are subsequently carried at amortised cost using the effective interest method.

 
2.22

Dividends

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

- 28 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the directors have made the following judgments:
 
whether there are indicators of impairment of the Group's tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
 
whether there are indicators of impairment of the Group's trade and other debtors. When assessing impairment of trade and other debtors, management considers factors such as the ageing profile and historical experience.
 
whether there are indicators of impairment of the Company's fixed assets investments and amounts due from group undertakings. When assessing impairment of amounts due from group undertakings factors taken into consideration include the financial position and expected future financial performance of those entities.

Other key sources of estimation uncertainty
Goodwill (Note 14)

Goodwill is being amortised over the directors' estimate of its useful life of 8 years. This estimate is based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provision that can limit useful life and assumptions that market participants would consider in respect of similar businesses.
Tangible fixed assets (Note 15)

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.


4.


Turnover

All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Commissions receivable
1,617,271
1,291,724


- 29 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

6.


Operating profit

The operating profit is stated after charging/(crediting):

2023
2022
£
£

Research & development charged as an expense
32,801
31,766

Other operating lease rentals
979,637
1,043,092

Amortisation
549,857
475,294

Depreciation
178,421
182,762

Profit on disposal of fixed asset
-
(284,845)


7.


Auditor's remuneration

During the year, the Group obtained the following services from the Company's auditor:


2023
2022
£
£

Fees payable to the Company's auditor for the audit of the consolidated and Parent Company's financial statements

47,500
39,500

- 30 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2023
2022
£
£


Wages and salaries
6,638,779
5,744,259

Social security costs
646,332
489,409

Cost of defined contribution scheme
296,250
190,407

7,581,361
6,424,075


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administrative
71
69



Service
135
112



Management and directors
32
30

238
211


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
441,340
602,743

Group contributions to defined contribution pension schemes
61,167
38,491

502,507
641,234


During the year retirement benefits were accruing to 4 directors (2022 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £152,000 (2022 - £153,229).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £37,151 (2022 - £10,000).

- 31 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

10.


Interest receivable

2023
2022
£
£


Other interest receivable
479
-


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
20,016
11,490

Other interest payable
1,649
-

21,665
11,490


12.


Taxation


2023
2022
£
£

Corporation tax


Adjustments in respect of previous periods
(118,875)
11,371


(118,875)
11,371


Total current tax
(118,875)
11,371

Deferred tax


Origination and reversal of timing differences
88,130
141,478

Adjustments in respect of previous periods
(36,956)
-

Total deferred tax
51,174
141,478


Taxation on profit on ordinary activities
(67,701)
152,849
- 32 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

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

2023
2022
£
£


Profit on ordinary activities before tax
556,277
951,068


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
105,693
180,703

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
452
1,603

Fixed asset differences
38,026
5,190

Non-taxable income
-
(6,555)

Adjustment in research and development tax credit leading to an increase/(decrease) in the tax charge
(156,243)
(134,352)

Adjust opening deferred tax to average rate of 19%
-
34,338

Chargeable gains/losses
-
22,004

Dividends from UK companies
-
11,375

Adjustments for tax charge in respect of prior periods - deferred tax
(36,956)
779

Adjustments for tax charge in respect of prior periods - current tax
(118,875)
-

Movement in deferred tax not recognised
109,557
-

Other differences leading to an increase in the tax charge
-
1,809

Remeasurement of deferred tax for changes in tax rates
(5,144)
35,955

Other permanent differences
491
-

Other differences
(4,702)
-

Total tax (credit)/charge for the year
(67,701)
152,849


Factors that may affect future tax charges

The UK Government announced in the 2021 budget that from 1 April 2023, the rate of corporation tax in the United Kingdom would increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19%, which is a new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.

- 33 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

13.


Dividends

2023
2022
£
£


Dividends paid
535,000
525,000


14.


Intangible assets

Group





Patents
Development expenditure
Goodwill on acquisition of franchises
Customer lists
Goodwill
Total

£
£
£
£
£
£



Cost


At 1 April 2022
101,066
1,390,949
1,696,470
261,191
740,610
4,190,286


Additions
3,980
675,019
-
-
112,000
790,999



At 31 March 2023

105,046
2,065,968
1,696,470
261,191
852,610
4,981,285



Amortisation


At 1 April 2022
61,503
405,258
1,373,343
261,191
673,822
2,775,117


Charge for the year
18,641
385,464
66,798
-
78,954
549,857



At 31 March 2023

80,144
790,722
1,440,141
261,191
752,776
3,324,974



Net book value



At 31 March 2023
24,902
1,275,246
256,329
-
99,834
1,656,311



At 31 March 2022
39,563
985,691
323,127
-
66,788
1,415,169



- 34 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
 
           14.Intangible assets (continued)


Company





Patents
Development expenditure
Goodwill on acquisition of franchises
Customer lists
Goodwill
Total

£
£
£
£
£
£



Cost


At 1 April 2022
101,066
1,390,949
1,696,462
261,191
534,383
3,984,051


Additions
3,980
675,019
-
-
112,000
790,999



At 31 March 2023

105,046
2,065,968
1,696,462
261,191
646,383
4,775,050



Amortisation


At 1 April 2022
61,503
405,258
1,373,345
261,191
467,585
2,568,882


Charge for the year
18,641
385,464
66,798
-
78,954
549,857



At 31 March 2023

80,144
790,722
1,440,143
261,191
546,539
3,118,739



Net book value



At 31 March 2023
24,902
1,275,246
256,319
-
99,844
1,656,311



At 31 March 2022
39,563
985,691
323,117
-
66,798
1,415,169

- 35 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

15.


Tangible fixed assets

Group






Freehold property
Long term leasehold property
Plant machinery and other equipment
Motor vehicles
Total

£
£
£
£
£



Cost


At 1 April 2022
62,684
1,465,917
1,222,569
183,050
2,934,220


Additions
-
28,379
177,940
172,750
379,069



At 31 March 2023

62,684
1,494,296
1,400,509
355,800
3,313,289



Depreciation


At 1 April 2022
11,999
473,089
981,351
69,948
1,536,387


Charge for the year
12,538
30,014
93,387
33,414
169,353


Charge for the year on financed assets
-
-
-
9,068
9,068



At 31 March 2023

24,537
503,103
1,074,738
112,430
1,714,808



Net book value



At 31 March 2023
38,147
991,193
325,771
243,370
1,598,481



At 31 March 2022
50,685
992,828
241,218
113,102
1,397,833

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
111,054
2,089

- 36 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

           15.Tangible fixed assets (continued)


Company






Long Term Leasehold Property
Motor vehicles
Plant machinery and other equipment
Total

£
£
£
£

Cost


At 1 April 2022
1,465,917
183,053
979,735
2,628,705


Additions
28,379
172,750
140,308
341,437



At 31 March 2023

1,494,296
355,803
1,120,043
2,970,142



Depreciation


At 1 April 2022
473,089
69,949
795,012
1,338,050


Charge for the year
30,014
33,414
75,220
138,648


Charge for the year on financed assets
-
9,068
-
9,068



At 31 March 2023

503,103
112,431
870,232
1,485,766



Net book value



At 31 March 2023
991,193
243,372
249,811
1,484,376



At 31 March 2022
992,828
113,104
184,723
1,290,655






The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Motor vehicles
111,054
-

- 37 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

16.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost and net book value


At 1 April 2022
10



At 31 March 2023
10





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Monolith Brick and Stone Limited
Unit 6b Phoenix House, Kinmel Park Industrial Estate, Bodelwyddan, Rhyl, Denbighshire, Wales, LL18 5TY
Ordinary
100%


17.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Raw materials and consumables
171,774
42,911
-
-

Finished goods and goods for resale
255,149
88,549
255,149
88,549

426,923
131,460
255,149
88,549


- 38 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

18.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
1,176,765
1,086,129
1,156,124
1,043,242

Amounts owed by group undertakings
-
-
1,869,627
1,541,038

Other debtors
137,215
228,029
131,961
222,035

Prepayments and accrued income
956,158
1,322,311
894,014
1,251,924

Tax recoverable
156,658
24,658
156,658
24,658

2,426,796
2,661,127
4,208,384
4,082,897


Amounts owed by group undertakings are unsecured, interest free and repayable on demand.


19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
1,588,909
2,447,674
1,576,572
2,421,666

Less: bank overdrafts
(807,176)
(562,314)
(807,176)
(562,314)

781,733
1,885,360
769,396
1,859,352


- 39 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
807,176
562,314
807,176
562,314

Bank loans
100,000
100,000
100,000
100,000

Trade creditors
1,493,037
1,711,607
1,441,784
1,694,881

Other taxation and social security
444,446
656,487
444,446
653,139

Obligations under finance lease and hire purchase contracts
28,631
2,089
28,631
-

Other creditors
345,733
241,101
344,733
239,054

Accruals and deferred income
721,282
1,188,786
618,730
1,006,704

3,940,305
4,462,384
3,785,500
4,256,092


Bank loans are secured against the assets of the Company. 
Obligations under finance lease and hire purchase contracts are secured over the assets to which they relate. 


21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
250,000
350,000
250,000
350,000

Net obligations under finance leases and hire purchase contracts
80,155
-
80,155
-

Accruals and deferred income
242,833
326,135
242,833
326,135

572,988
676,135
572,988
676,135


Bank loans are secured against the assets of the Company. 
Obligations under finance lease and hire purchase contracts are secured over the assets to which they relate. 



- 40 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
100,000
100,000
100,000
100,000

Amounts falling due 1-2 years

Bank loans
200,000
200,000
200,000
200,000

Amounts falling due 2-5 years

Bank loans
50,000
150,000
50,000
150,000

350,000
450,000
350,000
450,000



23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Within one year
28,631
2,089
28,631
-

Between 1-5 years
80,155
-
80,155
-

108,786
2,089
108,786
-

- 41 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

24.


Deferred taxation


Group



2023
2022


£

£






At beginning of year
(179,028)
(37,550)


Charged to profit or loss
(51,174)
(141,478)



At end of year
(230,202)
(179,028)

Company


2023
2022


£

£






At beginning of year
(179,028)
(28,881)


Charged to profit or loss
(51,174)
(150,147)



At end of year
(230,202)
(179,028)

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(349,170)
(186,751)
(349,170)
(186,751)

Short term timing differences
1,762
7,723
1,762
7,723

Losses and other deductions
117,206
-
117,206
-

(230,202)
(179,028)
(230,202)
(179,028)

- 42 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

25.


Provisions


Group



Provisions

£





At 1 April 2022
224,428


Charged to profit or loss
129,231



At 31 March 2023
353,659

Company


Dilapidations
Total

£
£





At 1 April 2022
187,485
187,485


Charged to profit or loss
51,089
51,089



At 31 March 2023
238,574
238,574

The provision in Greenthumb Limited relates to dilapidations.
The provision in Monolith Brick and Stone mostly relates to dilapidations with £5k relating to a warranty provision.


26.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000 (2022 - 1,000) Ordinary shares of £1 each
1,000
1,000



27.


Reserves

Profit & loss account

The profit and loss account represents cumulative profits or losses net of dividends paid and other adjustments.

- 43 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
28.


Analysis of net debt





At 1 April 2022
Cash flows
Reclass of bank loans
At 31 March 2023
£

£

£

£

Cash at bank and in hand

2,447,674

(858,765)

-

1,588,909

Bank overdrafts

(562,314)

(244,862)

-

(807,176)

Bank loans due after 1 year

(293,187)

(56,813)

100,000

(250,000)

Bank loans due within 1 year

(172,380)

172,380

(100,000)

(100,000)

Finance leases

(2,089)

(106,697)

-

(108,786)


1,417,704
(1,094,757)
-
322,947


29.


Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £296,250 (2022 - £190,407). Contributions totalling £7,048 (2022 - £27,294) were payable to the fund at the reporting date and are included in creditors.


30.


Commitments under operating leases

At 31 March 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2023
2022
£
£

Not later than 1 year
751,442
723,635

Later than 1 year and not later than 5 years
829,556
792,757

1,580,998
1,516,392
- 44 -

 
GREENTHUMB LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023

31.


Related party transactions

Alex Waring, being the sister of Stephen Waring (Director), runs the Solihull franchise. During the year, Greenthumb Limited raised invoices to the Solihull franchise amounting to £48,253 (2022 - £48,754). At 31 March 2023 Greenthumb Limited owed the Solihull franchise £189 (2022 - £189).
During the year, Greenthumb provided remuneration to a director's close family members amounting to £148,700 (2022 - £103,700).   
At the year end there was a loan due from S Waring (Director) of £60,067 (2022 - £59,525). Amounts repaid in the year totalled £Nil (2022 - £11,000). The loan is interest free and repayable on demand.
As at the year end the Company owes £1,000 (2022 - £1,000) to the directors.
The directors are considered to be the key management personnel. See note 9 for details of the total compensation paid to key management personnel for services provided to the group.


32.


Controlling party

As at 31 March 2023 the Company's ultimate controlling party was Stephen Waring, a director and the majority shareholder of the company.

- 45 -