Caseware UK (AP4) 2023.0.135 2023.0.135 2022-07-01210falseNo description of principal activity217falsefalse NI043559 2022-07-01 2023-06-30 NI043559 2021-07-01 2022-06-30 NI043559 2023-06-30 NI043559 2022-06-30 NI043559 2021-07-01 NI043559 5 2022-07-01 2023-06-30 NI043559 5 2021-07-01 2022-06-30 NI043559 d:Director1 2022-07-01 2023-06-30 NI043559 d:Director2 2022-07-01 2023-06-30 NI043559 d:Director3 2022-07-01 2023-06-30 NI043559 d:Director4 2022-07-01 2023-06-30 NI043559 d:Director5 2022-07-01 2023-06-30 NI043559 d:RegisteredOffice 2022-07-01 2023-06-30 NI043559 d:Agent1 2022-07-01 2023-06-30 NI043559 e:Buildings 2022-07-01 2023-06-30 NI043559 e:Buildings 2023-06-30 NI043559 e:Buildings 2022-06-30 NI043559 e:Buildings e:OwnedOrFreeholdAssets 2022-07-01 2023-06-30 NI043559 e:Buildings e:LongLeaseholdAssets 2022-07-01 2023-06-30 NI043559 e:Buildings e:LongLeaseholdAssets 2023-06-30 NI043559 e:Buildings e:LongLeaseholdAssets 2022-06-30 NI043559 e:PlantMachinery 2022-07-01 2023-06-30 NI043559 e:PlantMachinery 2023-06-30 NI043559 e:PlantMachinery 2022-06-30 NI043559 e:PlantMachinery e:OwnedOrFreeholdAssets 2022-07-01 2023-06-30 NI043559 e:FurnitureFittings 2022-07-01 2023-06-30 NI043559 e:FurnitureFittings 2023-06-30 NI043559 e:FurnitureFittings 2022-06-30 NI043559 e:FurnitureFittings e:OwnedOrFreeholdAssets 2022-07-01 2023-06-30 NI043559 e:ComputerEquipment 2022-07-01 2023-06-30 NI043559 e:OwnedOrFreeholdAssets 2022-07-01 2023-06-30 NI043559 e:Goodwill 2022-07-01 2023-06-30 NI043559 e:Goodwill 2023-06-30 NI043559 e:Goodwill 2022-06-30 NI043559 e:CurrentFinancialInstruments 2023-06-30 NI043559 e:CurrentFinancialInstruments 2022-06-30 NI043559 e:Non-currentFinancialInstruments 2023-06-30 NI043559 e:Non-currentFinancialInstruments 2022-06-30 NI043559 e:CurrentFinancialInstruments e:WithinOneYear 2023-06-30 NI043559 e:CurrentFinancialInstruments e:WithinOneYear 2022-06-30 NI043559 e:Non-currentFinancialInstruments e:AfterOneYear 2023-06-30 NI043559 e:Non-currentFinancialInstruments e:AfterOneYear 2022-06-30 NI043559 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2023-06-30 NI043559 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2022-06-30 NI043559 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2023-06-30 NI043559 e:Non-currentFinancialInstruments e:BetweenTwoFiveYears 2022-06-30 NI043559 e:ReportableOperatingSegment1 2022-07-01 2023-06-30 NI043559 e:ReportableOperatingSegment1 2021-07-01 2022-06-30 NI043559 e:UKTax 2022-07-01 2023-06-30 NI043559 e:UKTax 2021-07-01 2022-06-30 NI043559 e:ShareCapital 2023-06-30 NI043559 e:ShareCapital 2022-06-30 NI043559 e:ShareCapital 2021-07-01 NI043559 e:RevaluationReserve 2022-07-01 2023-06-30 NI043559 e:RevaluationReserve 2023-06-30 NI043559 e:RevaluationReserve 2022-06-30 NI043559 e:RevaluationReserve 2021-07-01 NI043559 e:RevaluationReserve 5 2021-07-01 2022-06-30 NI043559 e:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 NI043559 e:RetainedEarningsAccumulatedLosses 2023-06-30 NI043559 e:RetainedEarningsAccumulatedLosses 2021-07-01 2022-06-30 NI043559 e:RetainedEarningsAccumulatedLosses 2022-06-30 NI043559 e:RetainedEarningsAccumulatedLosses 2021-07-01 NI043559 d:OrdinaryShareClass1 2022-07-01 2023-06-30 NI043559 d:OrdinaryShareClass1 2023-06-30 NI043559 d:OrdinaryShareClass1 2022-06-30 NI043559 d:OrdinaryShareClass2 2022-07-01 2023-06-30 NI043559 d:OrdinaryShareClass2 2023-06-30 NI043559 d:OrdinaryShareClass2 2022-06-30 NI043559 d:OrdinaryShareClass3 2022-07-01 2023-06-30 NI043559 d:OrdinaryShareClass3 2023-06-30 NI043559 d:OrdinaryShareClass3 2022-06-30 NI043559 d:OrdinaryShareClass4 2022-07-01 2023-06-30 NI043559 d:OrdinaryShareClass4 2023-06-30 NI043559 d:OrdinaryShareClass4 2022-06-30 NI043559 d:OrdinaryShareClass5 2022-07-01 2023-06-30 NI043559 d:OrdinaryShareClass5 2023-06-30 NI043559 d:OrdinaryShareClass5 2022-06-30 NI043559 d:FRS102 2022-07-01 2023-06-30 NI043559 d:Audited 2022-07-01 2023-06-30 NI043559 d:FullAccounts 2022-07-01 2023-06-30 NI043559 d:PrivateLimitedCompanyLtd 2022-07-01 2023-06-30 NI043559 e:WithinOneYear 2023-06-30 NI043559 e:WithinOneYear 2022-06-30 NI043559 e:BetweenOneFiveYears 2023-06-30 NI043559 e:BetweenOneFiveYears 2022-06-30 NI043559 e:MoreThanFiveYears 2023-06-30 NI043559 e:MoreThanFiveYears 2022-06-30 NI043559 e:HirePurchaseContracts e:WithinOneYear 2023-06-30 NI043559 e:HirePurchaseContracts e:WithinOneYear 2022-06-30 NI043559 e:HirePurchaseContracts e:BetweenOneFiveYears 2023-06-30 NI043559 e:HirePurchaseContracts e:BetweenOneFiveYears 2022-06-30 NI043559 2 2022-07-01 2023-06-30 NI043559 5 2022-07-01 2023-06-30 NI043559 e:AcceleratedTaxDepreciationDeferredTax 2023-06-30 NI043559 e:AcceleratedTaxDepreciationDeferredTax 2022-06-30 NI043559 e:TaxLossesCarry-forwardsDeferredTax 2023-06-30 NI043559 e:TaxLossesCarry-forwardsDeferredTax 2022-06-30 NI043559 f:PoundSterling 2022-07-01 2023-06-30 xbrli:shares iso4217:GBP xbrli:pure

Registered number: NI043559










Creative Gardens (NI) Limited










Annual Report and Financial Statements

For the Year Ended 30 June 2023

 
Creative Gardens (NI) Limited
 

Company Information


Directors
P Gass 
N Gass 
D Gass 
J Dumigan 
O Gass 




Registered number
NI043559



Registered office
34 Stockbridge Road

Donaghadee

Co. Down

BT21 0PN




Independent auditors
ASM (B) Ltd
Chartered Accountants & Statutory Auditors

Glendinning House

6 Murray Street

Belfast

BT1 6DN




Bankers
Danske Bank
60 Groomsport Road

Ballyholme

Bangor

BT20 5NE





 
Creative Gardens (NI) Limited
 

Contents



Page
Strategic Report
 
 
1
Directors' Report
 
 
2 - 3
Independent Auditors' Report
 
 
4 - 7
Statement of Comprehensive Income
 
 
8
Balance Sheet
 
 
9
Statement of Changes in Equity
 
 
10
Statement of Cash Flows
 
 
11
Notes to the Financial Statements
 
 
12 - 25


 
Creative Gardens (NI) Limited
 

Strategic Report
For the Year Ended 30 June 2023

Introduction
 
The directors present their report and the financial statements for the year ended 30 June 2023. 

Business review
 
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.

Principal risks and uncertainties
 
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.

Financial key performance indicators
 
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.



P Gass
Director

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Page 1

 
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.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the Company for that period.

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


select suitable accounting policies 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 2006They 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.

Results and dividends

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).

Directors

The directors who served during the year were:

P Gass 
N Gass 
D Gass 
J Dumigan 
O Gass 

Future developments

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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Page 2

 
Creative Gardens (NI) Limited
 

 
Directors' Report (continued)
For the Year Ended 30 June 2023


Disclosure of information to auditors

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

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end other than the ongoing Covid-19 pandemic.

Auditors

The auditorsASM (B) Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 20 December 2023 and signed on its behalf.
 





P Gass
Director

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Page 3

 
Creative Gardens (NI) Limited
 

 
Independent Auditors' Report to the Members of Creative Gardens (NI) Limited
 

Opinion


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 policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 June 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.


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 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.


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Page 4

 
Creative Gardens (NI) Limited
 

 
Independent Auditors' Report to the Members of Creative Gardens (NI) Limited (continued)


Other information


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 ReportOur 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.


Opinion 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 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.


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.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


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Page 5

 
Creative Gardens (NI) Limited
 

 
Independent Auditors' Report to the Members of Creative Gardens (NI) Limited (continued)


Auditors' 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 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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Page 6

 
Creative Gardens (NI) Limited
 

 
Independent Auditors' Report to the Members of Creative Gardens (NI) Limited (continued)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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.





Michael Nixon (Senior Statutory Auditor)
for and on behalf of
ASM (B) Ltd
Chartered Accountants & Statutory Auditors
Glendinning House
6 Murray Street
Belfast
BT1 6DN

20 December 2023
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Page 7

 
Creative Gardens (NI) Limited
 

Statement of Comprehensive Income
For the Year Ended 30 June 2023

2023
2022
Note
£
£

  

Turnover
 4 
11,645,002
12,126,660

Cost of sales
  
(8,691,623)
(8,903,109)

Gross profit
  
2,953,379
3,223,551

Administrative expenses
  
(2,146,271)
(2,106,769)

Other operating income
 5 
9,690
42,900

Operating profit
 6 
816,798
1,159,682

Interest receivable and similar income
 10 
32
-

Interest payable and similar expenses
 11 
(62,616)
(48,935)

Profit before tax
  
754,214
1,110,747

Tax on profit
 12 
(195,319)
(206,326)

Profit for the financial year
  
558,895
904,421

Other comprehensive income for the year
  

Unrealised surplus on revaluation of tangible fixed assets
  
-
1,222,669

Other comprehensive income for the year
  
-
1,222,669

Total comprehensive income for the year
  
558,895
2,127,090

The notes on pages 12 to 25 form part of these financial statements.

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Page 8

 
Creative Gardens (NI) Limited
Registered number: NI043559

Balance Sheet
As at 30 June 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 15 
6,481,635
6,396,411

  
6,481,635
6,396,411

Current assets
  

Stocks
 16 
2,188,028
3,132,464

Debtors: amounts falling due within one year
 17 
51,009
59,960

Cash at bank and in hand
  
963,352
590,305

  
3,202,389
3,782,729

Creditors: amounts falling due within one year
 18 
(2,782,444)
(3,195,838)

Net current assets
  
 
 
419,945
 
 
586,891

Total assets less current liabilities
  
6,901,580
6,983,302

Creditors: amounts falling due after more than one year
 19 
(791,063)
(1,082,150)

Provisions for liabilities
  

Deferred tax
 22 
(560,999)
(509,398)

  
 
 
(560,999)
 
 
(509,398)

Net assets
  
5,549,518
5,391,754


Capital and reserves
  

Called up share capital 
 23 
10,000
10,000

Revaluation reserve
 24 
3,118,807
3,118,807

Profit and loss account
 24 
2,420,711
2,262,947

  
5,549,518
5,391,754


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 20 December 2023.




P Gass
Director

The notes on pages 12 to 25 form part of these financial statements.

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Page 9

 
Creative Gardens (NI) Limited
 

Statement of Changes in Equity
For the Year Ended 30 June 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 July 2021
10,000
1,896,138
1,654,213
3,560,351



Profit for the year
-
-
904,421
904,421

Surplus on revaluation of freehold property
-
1,222,669
-
1,222,669

Dividends: Equity capital
-
-
(295,687)
(295,687)



At 1 July 2022
10,000
3,118,807
2,262,947
5,391,754



Profit for the year
-
-
558,895
558,895

Dividends: Equity capital
-
-
(401,131)
(401,131)


At 30 June 2023
10,000
3,118,807
2,420,711
5,549,518


The notes on pages 12 to 25 form part of these financial statements.

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Page 10

 
Creative Gardens (NI) Limited
 

Statement of Cash Flows
For the Year Ended 30 June 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
558,895
904,421

Adjustments for:

Amortisation of intangible assets
-
42,000

Depreciation of tangible assets
282,491
252,132

Interest paid
62,616
48,935

Interest received
(32)
-

Taxation charge
195,319
206,326

Decrease/(increase) in stocks
944,436
(1,349,209)

Decrease/(increase) in debtors
8,951
(3,186)

(Decrease)/increase in creditors
(336,146)
241,079

Corporation tax (paid)
(228,713)
(257,120)

Net cash generated from operating activities

1,487,817
85,378


Cash flows from investing activities

Purchase of tangible fixed assets
(367,714)
(664,004)

Interest received
32
-

HP interest paid
(5,967)
(5,967)

Net cash from investing activities

(373,649)
(669,971)

Cash flows from financing activities

Repayment of loans
(255,782)
(324,724)

Repayment of/new finance leases
(27,559)
(17,985)

Dividends paid
(401,131)
(295,687)

Interest paid
(56,649)
(42,968)

Net cash used in financing activities
(741,121)
(681,364)

Net increase/(decrease) in cash and cash equivalents
373,047
(1,265,957)

Cash and cash equivalents at beginning of year
590,305
1,856,262

Cash and cash equivalents at the end of year
963,352
590,305


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
963,352
590,305

963,352
590,305


The notes on pages 12 to 25 form part of these financial statements.

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Page 11

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

1.


General information

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

 
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.

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:

 
2.2

Going concern

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.

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

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Page 12

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

2.Accounting policies (continued)

 
2.4

Revenue

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover 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 turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company 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.

 
2.5

Operating leases: the Company as lessee

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

 
2.6

Interest income

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

 
2.7

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.

 
2.8

Borrowing costs

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

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

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Page 13

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

2.Accounting policies (continued)

 
2.10

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 balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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 balance sheet date.

 
2.11

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 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 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.

 
2.12

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.

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Page 14

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

2.Accounting policies (continued)


2.12
Tangible fixed assets (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:

Freehold property
-
2%
Leasehold improvements
-
2%
Plant and machinery
-
20%
Fixtures and fittings
-
15%
Computer equipment
-
33%

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.

 
2.13

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.
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.

 
2.15

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.

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Page 15

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

2.Accounting policies (continued)

 
2.16

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.

 
2.17

Financial instruments

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.

 
2.18

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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the process of applying the company's accounting policies, management has not made any significant judgements.  There are no key assumptions concerning the future or other key sources of estimation, that have a significant risk of raising a material adjustment to the carrying amounts of assets and liabilities within the next financial year.


4.


Turnover

2023
2022
£
£

Sales
11,645,002
12,126,660

11,645,002
12,126,660


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Other operating income
9,690
42,900

9,690
42,900


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Page 16

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(38,195)
15,246

Other operating lease rentals
140,340
146,521


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
10,500
9,060

8.


Employees

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


2023
2022
£
£

Wages and salaries
3,095,676
2,823,877

Social security costs
207,531
182,891

Cost of defined contribution scheme
100,681
78,540

3,403,888
3,085,308


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


        2023
        2022
            No.
            No.







Selling and distribution
192
189



Administration
25
21

217
210

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Page 17

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
41,296
40,516

Company contributions to defined contribution pension schemes
51,000
34,000

92,296
74,516


During the year retirement benefits were accruing to no directors (2022 - NIL) in respect of defined contribution pension schemes.


10.


Interest receivable

2023
2022
£
£


Other interest receivable
32
-

32
-


11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
56,649
42,968

Finance leases and hire purchase contracts
5,967
5,967

62,616
48,935

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Page 18

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
143,718
228,816

143,718
228,816


Total current tax
143,718
228,816

Deferred tax


Origination and reversal of timing differences
51,601
(22,490)

Total deferred tax
51,601
(22,490)


Taxation on profit on ordinary activities
195,319
206,326

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 20.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
754,214
1,110,747


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20.5% (2022 - 19%)
154,583
211,042

Effects of:


Non-tax deductible amortisation of goodwill and impairment
-
(4,180)

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
477
125

Capital allowances for year in excess of depreciation
(13,335)
21,829

Adjustments to tax charge in respect of prior periods
1,993
-

Deferred Tax
51,601
(22,490)

Total tax charge for the year
195,319
206,326


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

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Page 19

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

13.


Dividends

2023
2022
£
£


A Ordinary shares
103,795
81,490


C Ordinary shares
103,627
68,657


D Ordinary shares
103,633
80,886


E Ordinary shares
90,076
64,654

401,131
295,687


14.


Intangible assets




Goodwill

£



Cost


At 1 July 2022
840,000



At 30 June 2023

840,000



Amortisation


At 1 July 2022
840,000



At 30 June 2023

840,000



Net book value



At 30 June 2023
-



At 30 June 2022
-



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Page 20

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

15.


Tangible fixed assets





Land & buildings Freehold
Leasehold improvement
Plant & machinery
Fixtures, fittings & equipment
Total

£
£
£
£
£



Cost or valuation


At 1 July 2022
5,867,629
84,401
579,716
1,760,126
8,291,872


Additions
-
31,441
310,950
25,324
367,715



At 30 June 2023

5,867,629
115,842
890,666
1,785,450
8,659,587



Depreciation


At 1 July 2022
12,817
10,210
551,777
1,320,657
1,895,461


Charge for the year on owned assets
117,353
1,688
21,721
141,729
282,491



At 30 June 2023

130,170
11,898
573,498
1,462,386
2,177,952



Net book value



At 30 June 2023
5,737,459
103,944
317,168
323,064
6,481,635



At 30 June 2022
5,854,812
74,191
27,939
439,469
6,396,411

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.

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£



Cost
2,968,792
2,968,792

Net book value
2,968,792
2,968,792


16.


Stocks

2023
2022
£
£

Finished goods and goods for resale
2,188,028
3,132,464

2,188,028
3,132,464


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Page 21

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

17.


Debtors

2023
2022
£
£


Trade debtors
21,343
20,636

Other debtors
22,223
25,996

Prepayments and accrued income
7,443
13,328

51,009
59,960



18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
273,017
291,782

Trade creditors
1,110,157
1,586,270

Corporation tax
141,725
226,720

Other taxation and social security
541,681
447,225

Obligations under finance lease and hire purchase contracts
33,527
27,576

Other creditors
267,290
422,784

Accruals and deferred income
415,047
193,481

2,782,444
3,195,838



19.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
372,776
609,792

Net obligations under finance leases and hire purchase contracts
43,438
76,949

Other creditors
374,849
395,409

791,063
1,082,150


Secured Loans
The bank loans and overdraft are secured by the following;
(i) a fixed charge over book debts of Creative Gardens (NI) Limited;
(ii) a floating charge on the mortgage over the property situated at Ballyclogh Road, Bushmills; 
(iii) a floating charge on the mortgage over the property situated at Stockbridge Road, Donaghadee; and
(iv) a fixed charge on the loan over the land situated at Stockbridge Road, Donaghadee.

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Page 22

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

20.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
273,017
291,782


273,017
291,782

Amounts falling due 1-2 years

Bank loans
215,187
270,634


215,187
270,634

Amounts falling due 2-5 years

Bank loans
157,589
339,159


157,589
339,159


645,793
901,575



21.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
33,527
27,576

Between 1-5 years
43,438
49,373

76,965
76,949


22.


Deferred taxation




2023


£






At beginning of year
(509,398)


Charged to profit or loss
(51,601)



At end of year
(560,999)

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Page 23

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023
 
22.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(128,637)
(77,036)

Unrealised gain on property revaluation
(432,362)
(432,362)

(560,999)
(509,398)


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



4,200 (2022 - 4,200) A shares of £1.00 each
4,200
4,200
2,200 (2022 - 2,200) B shares of £1.00 each
2,200
2,200
1,200 (2022 - 1,200) C shares of £1.00 each
1,200
1,200
1,200 (2022 - 1,200) D shares of £1.00 each
1,200
1,200
1,200 (2022 - 1,200) E shares of £1.00 each
1,200
1,200

10,000

10,000



24.


Reserves

Revaluation reserve

This balance includes all curent and prior revaluations made to land and buildings including deferred tax movement on unrealised revaluation surplus.

Profit and loss account

This balance includes all prior and current periods retained profit and losses.


25.


Capital commitments

At 30 June 2023 the Company had no capital commitments entered into.


26.


Pension commitments

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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Page 24

 
Creative Gardens (NI) Limited
 

 
Notes to the Financial Statements
For the Year Ended 30 June 2023

27.


Commitments under operating leases

At 30 June 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
144,000
144,000

Later than 1 year and not later than 5 years
576,000
576,000

Later than 5 years
2,038,000
2,182,000

2,758,000
2,902,000


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Page 25