Registered number: 03863497
AUDITED
ANNUAL REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 OCTOBER 2023 |
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CROCUS.CO.UK LIMITED
COMPANY INFORMATION
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CROCUS.CO.UK LIMITED
CONTENTS
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CROCUS.CO.UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
The Directors present their Strategic Report for Crocus.Co.UK Limited ("the Company") for the year ended 31 October 2023.
The principal activity of the Company during the year was the provision of horticultural plants and other related gardening products and services to its customers, primarily via the internet.
The financial year ending 31st October 2023 presented significant challenges for the gardening industry. Despite these obstacles, our company achieved growth that surpassed industry averages. Our sales increased by an impressive 13.1%, reaching £28.1 million, compared to the 16.3% drop in the previous year. Throughout the year, we implemented strategic measures to safeguard profitability amidst cost pressures driven primarily by rising inflation and interest rates. These efforts resulted in a notable improvement in our financial performance. Our EBITDA rose from £0.39 million in 2021/22 to £0.9 million in 2022/23, reflecting our success in enhancing profitability. Our strong financial management also enabled us to maintain a robust cash position, ending the year with a healthy balance of £2.31 million. As we look ahead to the current financial year, we remain cautiously optimistic about achieving continued sales growth despite the prevailing economic uncertainties. However, the unusually bad weather during 2024 has impacted consumer demand at a time when the consumer is already suffering from cost-of-living pressures on top of broader economic instability. In addition, the National Minimum Wage increased by 9.7% in 2024 resulting in a significant increase in our cost base.
The principal risks and uncertainties of the Company are as follows:
Currency risk The Company sometimes enters into forward currency contracts to manage the currency risk arising from foreign currency-denominated transactions. There are no other matters concerning financial risk which are material for the assessment of the assets, liabilities, financial position and profit or loss of the Company. Market risk The Company operates in a competitive and growing market. The Company’s primary focus on mitigating this risk is to focus on continuing to be ‘best in class’ in its market and stand out from its peer group. The Company is focused on investment in resources including cutting-edge technology, product development and customer services to enhance the customer experience of online shopping with us. People with disability It is our company policy to give full and fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities. We support employees returning to work from illness or injury and may facilitate independent assessments to ensure a safe and speedy return to work.
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CROCUS.CO.UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
The Company monitors its performance against strategic objectives by means of key performance indicators. The main KPIs it uses are orientated around turnover and EBITDA.
These KPIs are reviewed on a regular basis to assess whether expectations are met.
The Directors do not consider there to be any other key performance indicators.
The Directors of the Company have acted in accordance with their duties codified in law, which include their duty to act in the way in which they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole, having regards to the stakeholders and matters set out in section 172 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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CROCUS.CO.UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
The Directors present their report and the financial statements for the year ended 31 October 2023.
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:
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 £240,398 (2022 - loss £409,694).
The Directors have not proposed or paid a dividend in the current or prior year.
The Directors who served during the year were:
The Directors do not anticipate any changes in the level or nature of the Company's business in the near future.
The Company's operations expose it to a variety of financial risks including the effects of changes in interest rates on debt, liquidity risk and credit risk. The Company's financial instruments comprise cash and cash equivalents.
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CROCUS.CO.UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
There have been no significant events affecting the Company since the year end.
The auditors, Wellden Turnbull Limited, will 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.
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CROCUS.CO.UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CROCUS.CO.UK LIMITED
We have audited the financial statements of Crocus.Co.UK Limited (the 'Company') for the year ended 31 October 2023, which comprise the Statement of income and retained earnings, the Statement of financial position, the Statement of cash flows 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).
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.
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.
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CROCUS.CO.UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CROCUS.CO.UK LIMITED (CONTINUED)
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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CROCUS.CO.UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CROCUS.CO.UK 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. We have identified the greatest risk of a material impact on the financial statements from irregularities, including fraud, to relate to the timing and recognition of revenue, incorrect recognition of intangible assets and the override of controls by management. We have obtained an understanding of the legal and regulatory frameworks that the Company operates within including both those that directly have an impact on the financial statements and more widely those for which non-compliance could have a significant impact on the Company’s operations and reputation. The Companies Act 2006, employee legislation, health and safety legislation and data protection are those we have identified in this regard. Auditing standards limit the required procedures as to non-compliance with laws and regulations to enquiries of those charged with governance and review of any applicable correspondence.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiry of management and those charged with governance as to actual and potential litigation and claims;
∙Enquiry of management and compliance functions and roles to identify any instances of non-compliance with laws and regulations;
∙Reviewing the valuation of intangible fixed assets including challenging the reasonableness of management impairment assessment;
∙Assessing the reasonableness of revenue recognised in the period based on underlying contractual terms and obligations and the requirements of accounting standards, ensuring that sales are recorded in the correct period;
∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations and accounting standards; and
∙Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias.
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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CROCUS.CO.UK LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CROCUS.CO.UK 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
Albany House
Claremont Lane
Surrey
KT10 9FQ
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CROCUS.CO.UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 OCTOBER 2023
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CROCUS.CO.UK LIMITED
REGISTERED NUMBER: 03863497
STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 12 to 28 form part of these financial statements.
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CROCUS.CO.UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
Crocus.co.uk Limited is a private company, limited by shares and incorporated in England and Wales, registration number
2.Accounting policies
In assessing the appropriateness of the going concern basis of preparation, the Directors have taken into account the key risks to the business, the Company's business model and the availability of cash resources. The Directors consider it appropriate to therefore prepare the financial statements on a going concern basis.
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
2.Accounting policies (continued)
Online Sales - revenue is recognised at the point of despatch to the customer. Wholesale - revenue for goods provided is recognised at point of delivery to the customer. For long-term projects, revenue is recognised over the period of the project.
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 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.
The estimated useful lives range as follows:
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.
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
2.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
2.Accounting policies (continued)
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
2.Accounting policies (continued)
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.
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
The following are the Company's key sources of estimation uncertainty: Goodwill The value of goodwill acquired is amortised over the anticipated useful economic life of the goodwill. The carrying value of goodwill after allowing for amortisation is reviewed by management annually for indicators of impairment. This involves management assessing the future likely economic benefit of the asset and applying judgement for future events. Stock provision A provision against stock is provided based upon specific lines or certain categories of stock, that are deemed to to damaged or slow moving by management.
The turnover is attributable to the one principal activity of the Company, and all derived from activities in the United Kingdom.
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
Page 21
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
11.Taxation (continued)
A deferred tax asset has not been recognised in respect of the trading losses of £9.1m (2022 - £10.0m) to carry forward in the Company as a result of their utilisation being uncertain. These will be available to off-set against future trading profits generated in the Company.
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
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 £137,447 (2022 - £122,536). Contributions totalling £25,544 (2022 - £20,203) were payable to the fund at the reporting date and are included in creditors.
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CROCUS.CO.UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
22.Share capital (continued)
Share premium account
Capital redemption reserve
Profit and loss account
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