Registered number:
For the Year Ended
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Creative Gardens (NI) Limited
Company Information
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Creative Gardens (NI) Limited
Contents
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Creative Gardens (NI) Limited
Strategic Report
For the Year Ended 30 June 2023
The directors present their report and the financial statements for the year ended 30 June 2023.
The principal activity of the company continued to be the selling of garden products including plants and furniture, and the operation of a café at each location.
Whist the Covid-19 pandemic has now passed the company is still dealing with some of the residual effects. Over recent years, in order to protect itself against supply chain issues and to help increase sales, the company has retained higher levels of stock than traditionally would have been the case. This year the company has focused on trying to reduce stock levels whilst maintaining margin. The cost of living increases and the high levels of inflation during the year have impacted sales with consumers having less disposable income. Turnover has decreased by 3.97% which the directors consider satisfactory considering the exceptional performance of the previous two periods. The company remained profitable with a net pre-tax profit of £754,214 and gross margin remaining stable at 25.4%. As planned, the company has commenced the first stage of re-development of its Donaghadee premises which will bring the location up to date, creating a much more usable car park and goods flow for its customers. The second phase is expected to start within the following 18 months. The company has no further plans to acquire sites in the coming year and will focus on investing in and maximising the performance of its existing locations.
The Directors consider that the principal key risks and uncertainties continue to be a downturn in trade due to increasing energy costs, inflation and the cost of living crisis which continues to have a detrimental impact on customer behavious and spending habits. The company has taken this into account and remains prepared but there is a risk that consumers appetite, in particular for luxury items, may be affected. The directors believe that despite this risk there will be a return to the more stable pre-Covid normality.
The Company's directors consider that the main KPI's are turnover and gross margin. During the year turnover decreased from £12,126,660 to £11,645,002 and gross margin decreased from 26.6% to 25.4%.
This report was approved by the board on 20 December 2023 and signed on its behalf.
Page 1
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Creative Gardens (NI) Limited
Directors' Report
For the Year Ended 30 June 2023
The directors present their report and the financial statements for the year ended 30 June 2023.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company'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 Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £558,895 (2022 - £904,421).
Dividends declared for the year totalled £401,131 (2022 - £295,687).
The directors who served during the year were:
The directors consider that both the results for the year and trading prospects are satisfactory and that current level of performance can be maintained.
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Creative Gardens (NI) Limited
Directors' Report (continued)
For the Year Ended 30 June 2023
There have been no significant events affecting the Company since the year end other than the ongoing Covid-19 pandemic.
The auditors, ASM (B) Ltd, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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Creative Gardens (NI) Limited
Independent Auditors' Report to the Members of Creative Gardens (NI) Limited
We have audited the financial statements of Creative Gardens (NI) Limited (the 'Company') for the year ended 30 June 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Page 4
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Creative Gardens (NI) Limited
Independent Auditors' Report to the Members of Creative Gardens (NI) Limited (continued)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
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.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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Creative Gardens (NI) Limited
Independent Auditors' Report to the Members of Creative Gardens (NI) Limited (continued)
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 Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We considered the opportunities and incentives that may exist within the Company for fraud and identified the greatest potential for fraud in the following areas: management override of controls and fraud risk relating to revenue. We designed audit procedures to respond to these risks, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Our audit procedures included: enquiries of management about their own identification and assessment of risks of irregularities, testing the design and implementation of controls relating to the risks, sample testing of journals posted during the year, revenue cut off testing and agreeing a sample of revenue items to underlying records.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditors' Report.
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Creative Gardens (NI) Limited
Independent Auditors' Report to the Members of Creative Gardens (NI) Limited (continued)
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 Auditors' 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
Glendinning House
6 Murray Street
BT1 6DN
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Creative Gardens (NI) Limited
Statement of Comprehensive Income
For the Year Ended 30 June 2023
Page 8
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Creative Gardens (NI) Limited
Registered number: NI043559
Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 12 to 25 form part of these financial statements.
Page 9
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Creative Gardens (NI) Limited
Statement of Changes in Equity
For the Year Ended 30 June 2023
Page 10
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Creative Gardens (NI) Limited
Statement of Cash Flows
For the Year Ended 30 June 2023
Page 11
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
Creative Gardens (NI) Limited is a private company limited by shares incorporated in Northern Ireland. The registration number and address of the registered office are given in the company information section of these financial statements.
2.Accounting policies
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.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Directors have considered the likely impact of Covid-19 on its business and supply chain issues, while they expect that it may have an adverse impact, believe that the Company will be able to manage the impact through prudent management of its cash resources, availing of the various support mechanisms announced by the UK Governement and taking appropropriate strategic measures. Accordingly the Directors believe that it is appropriate to adopt the going concern basis in preparing the financial statements.
Functional and presentation currency
Transactions and balances
Page 12
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
2.Accounting policies (continued)
Page 13
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
2.Accounting policies (continued)
Goodwill
Other intangible assets
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.
Page 14
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers. At each balance sheet 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.
Page 15
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Page 16
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
Page 17
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
Page 18
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
There were no factors that may affect future tax charges.
Page 19
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
Page 20
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
Land and buildings were valued by Lisney in April 2022. The Directors consider that there has been no material change in the valuation since that time.
Page 21
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
Page 22
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
Page 23
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
22.Deferred taxation (continued)
Revaluation reserve
Profit and loss account
At 30 June 2023 the Company had no capital commitments entered into.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £49,681 (2022 - £44,540).
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Creative Gardens (NI) Limited
Notes to the Financial Statements
For the Year Ended 30 June 2023
Page 25
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