REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the year ended |
30 November 2023 |
for |
Woodlands Home & Garden Group Limited |
REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the year ended |
30 November 2023 |
for |
Woodlands Home & Garden Group Limited |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Contents of the Financial Statements |
for the year ended 30 November 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
Woodlands Home & Garden Group Limited |
Company Information |
for the year ended 30 November 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Strelley Hall |
Main Street |
Strelley |
Nottingham |
NG8 6PE |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Strategic Report |
for the year ended 30 November 2023 |
The directors present their strategic report for the year ended 30 November 2023. |
BUSINESS REVIEW AND FUTURE DEVELOPMENTS |
Turnover for the year has decreased by 2.74% to £22,528,776. Gross profit has increased by 8.76% to £6,528,125 and the gross margin has increased from 25.91% in 2022 to 28.98% in 2023. The change in margin is largely attributed to the fluctuations in raw material cost during the year, particularly the easing of the timber prices, which combined with improved operational performance and pricing controls has improved the gross margin. |
During the year, the company incurred qualifying R&D expenditure of £nil (2022: £1,114,088). |
The company has made a profit before tax this year of £1,202,154 an increase on the 2022 profit before tax of £847,419. This increase is as a result of the lower timber prices and improved operational control and margin realisation. |
The balance sheet on page 10 of the financial statements shows that the net assets of the company have reduced from £9,759,023 to £5,333,463. This is due to the payment of a dividend to the immediate parent Woodlands Home & Garden Group (Holdings) Limited. |
Given the continued challenging global economic conditions, challenging retail market and the unstable landscape created by the Russian invasion of Ukraine, the directors consider the overall results to be satisfactory. |
The company's long-term focus continues to be the development of a unified, unique and leading home improvement offer, driving our digital capability, and optimising our operational efficiency. |
CHANGE OF OWNERSHIP |
As of 20th January 2023, the business opted to make the move into employee ownership with the formation of a new employee ownership trust (EOT). The trust bought 100% of the shares of the holding company from the previous shareholders on behalf of the employees, as ultimate beneficiaries. |
The deal was structured to maintain the long-term stability of the business with the directors Ross Moran and Ged Lees both continuing in their roles, and the existing senior leadership team all remaining in place to support the business's growth plans. See note 23 for further details. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties affecting the company relate to volatility in ongoing market conditions, competition and UK consumer confidence, particularly in light of the recent cost of living crisis. |
The other types of risks identified include external factors (such as competitor, environment and regulation), systems and infrastructure, health and safety, employee risk, adapting to consumer trends and the fluctuating costs of the raw materials. |
TIMBER PRICING |
During 2023 timber prices have stabilised and appear to have settled at a relatively low base level which provides a positive foundation for the company to better plan its pricing strategy to manage its margin going forward. |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Strategic Report |
for the year ended 30 November 2023 |
CREDIT RISK |
The company's principal financial assets are bank balances and cash, trade and other debtors. |
The company's credit risk is primarily attributable to its trade debtors. The amounts presented in the balance sheet are net of allowances for doubtful receivables. An allowance for impairment is made where there is an identified loss event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. |
The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers. |
LIQUIDITY RISK |
The company regularly reviews the level of cash and debt facilities required to fund its day-to-day activities. |
ECONOMIC RISK |
Uncertainty surrounding the resilience of the UK economy and ongoing effectiveness of fiscal stimulus and monetary measures continue to impact consumer confidence and present a difficult trading outlook across the retail sector, particularly in terms of delivering opportunities for growth. The company is focused on self-help actions to manage the difficult economic environment. |
The rising levels of inflation across fuel, energy and all other major product groups in the UK during the early part of 2023 contributed to a general rise in the cost of production. The company will continue to mitigate this by adjusting pricing as required to maintain margin. |
The instability of the UK economy has provided further challenges to consumer confidence and retail spending. |
The company continues to benefit from the security of strong cash reserves in the business which have been built up through profitable trading. |
SYSTEMS AND INFRASTRUCTURE RISK |
The company has a programme to ensure that it focuses its information technology resources on both maintaining or extending the useful lives of its existing technologies and developing solutions that support revenue and generate opportunities and productivity initiatives. Where possible, the company is also seeking to eliminate complex or heavily bespoke technologies to reduce our running costs. |
HEALTH AND SAFETY RISK |
There is a risk that repeated health and safety failures could result in a major incident that is directly attributable to either a systematic or institutionalised failure in our health and safety management systems. This would result in damage to our reputation through adverse publicity, prosecution and censure. The directors are committed to creating and sustaining a safe environment for both our employees and customers, and regularly review and challenge health and safety arrangements. |
The directors have a specific responsibility for health and safety. They are responsible for ensuring that a written health and safety policy is communicated to all employees, that appropriate health and safety arrangements are in place to protect our employees and that we comply with local regulatory requirements. |
EMPLOYEE RISK |
Retail is a business and there is a risk that, given economic pressures, we fail to maintain necessary investment in our people to ensure that we have the appropriate calibre of staff for specific roles, and that skills and experience are deployed in the best interests of the individual and the company. |
The company continues to invest in our people and is committed to ensuring that our people are given opportunities to develop themselves to the benefit of the organisation and its customers. This is done through a wide range of development opportunities from store-based training programmes, supported by delivery of nationally accredited and recognised qualifications and apprenticeship schemes, to leadership academy programmes for our senior managers. |
The company also remains committed to the ongoing assessment and measurement of our people's engagement with the business, with employee satisfaction surveys completed across the business. |
POST BALANCE SHEET EVENT |
On the 1st December 2023 the company promoted existing staff members Agata Choma, Graham Parlett and Lauren Coley to positions within the board of directors. |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Strategic Report |
for the year ended 30 November 2023 |
KEY PERFORMANCE INDICATORS |
The directors monitor progress on overall company strategy by reference to four KPIs. Performance during the year together with historical trend data is set out below: |
- Sales (decrease) 2.74% (2022: decrease 9.37%). |
- Gross Profit Margin, (increase) 28.98% from 25.91% (2022 - 25.91% decrease from 28.52%). |
- Net Profit Margin Before Tax (increase) 5.34% from 3.66% (2022 - 3.66% decrease from 15.71%). |
- Current Ratio 2.48 (2022: 4.49). |
The directors consider that the company's performance in the current market is satisfactory. |
ON BEHALF OF THE BOARD: |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Report of the Directors |
for the year ended 30 November 2023 |
The directors present their report with the financial statements of the company for the year ended 30 November 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company during the year was the importation of timber, sale of timber buildings and DIY materials and the manufacture of garden sheds. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 November 2023 was £5,351,100. |
Dividends paid after date total £1,600,000. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report. |
R P D Moran |
G Lees |
The following directors were appointed on 1 December 2023. |
GJ Parlett |
LGS Coley |
AK Choma |
SC Davison |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen, in accordance with section 414C(11) of the Companies Act 2006 to include certain matters in its Strategic Report that would otherwise be required to be disclosed in this Report of the Directors. The Strategic Report can be found on page 2 of these accounts. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 and then apply them consistently; |
- | make judgements 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 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. |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Report of the Directors |
for the year ended 30 November 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Woodlands Home & Garden Group Limited |
Opinion |
We have audited the financial statements of Woodlands Home & Garden Group Limited (the 'company') for the year ended 30 November 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 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 November 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 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors 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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | 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. |
Report of the Independent Auditors to the Members of |
Woodlands Home & Garden Group Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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. |
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 a Report of the Auditors 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 designed audit procedures to respond to the risk, 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. We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. |
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 Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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 and Statutory Auditors |
Strelley Hall |
Main Street |
Strelley |
Nottingham |
NG8 6PE |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Statement of Comprehensive Income |
for the year ended 30 November 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,413,732 | 1,234,616 |
Other operating income |
OPERATING PROFIT | 6 |
Exceptional costs | 7 |
1,039,919 | 824,593 |
Interest receivable and similar income |
1,204,627 | 849,473 |
Interest payable and similar expenses | 8 |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 1,004,816 |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Balance Sheet |
30 November 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Statement of Changes in Equity |
for the year ended 30 November 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 December 2021 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - | ( | ) |
Balance at 30 November 2022 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - |
Balance at 30 November 2023 |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Notes to the Financial Statements |
for the year ended 30 November 2023 |
1. | STATUTORY INFORMATION |
Woodlands Home & Garden Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is Woodlands, Calverley Lane, Leeds, LS13 1NP and the company registration number is 00132673. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. |
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. |
Group financial statements |
The financial statements contain information about Woodlands Home & Garden Group Limited as an individual company and do not contain consolidated financial information as the parent of the group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Woodlands Home & Garden Group (Holdings) Limited. This is both the smallest and largest group in which the company's accounts are consolidated. |
Going Concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Turnover |
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and impairment losses. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Notes to the Financial Statements - continued |
for the year ended 30 November 2023 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. |
Cost of raw materials is determined on the first in first out basis. In the case of work in progress and finished goods, cost includes all direct expenditure and production overheads based on the normal level of activity. Net realisable value is the price at which the stock can be released in the normal course of business, less further costs to completion of sale. |
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company provides a defined contribution pension scheme, the assets of which are held separately from those of the company in an independently administered fund. Contributions to this scheme are charged to the statement of comprehensive income as they become payable. |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Notes to the Financial Statements - continued |
for the year ended 30 November 2023 |
3. | JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. |
Significant judgements |
The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: |
Determining whether there is any indication of impairment to the tangible assets held by the company. Factors considered when reviewing the assets include the economic viability and expected future financial performance of the assets both on a standalone basis and as part of the whole company. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. |
Tangible Fixed Assets |
Tangible fixed assets are depreciated over their estimated 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. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Administration | 35 | 36 |
Production | 92 | 88 |
Distribution | 47 | 44 |
The average number of employees includes directors. |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Notes to the Financial Statements - continued |
for the year ended 30 November 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director for the year ended 30 November 2023 is as follows: |
2023 |
£ |
Emoluments etc |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Loss/(profit) on disposal of fixed assets | ( | ) |
Website development costs amortisation |
Auditors' remuneration |
7. | EXCEPTIONAL ITEMS |
There was an exceptional cost of £448,500 during the year in respect of management charges from the parent company, recharging various group restructuring expenses and other costs. |
Exceptional costs in 2022 of £577,340 relate principally to the cost of replacing the timber contracts which had to be cancelled as a result of sanctions against Russia (£475,967). |
In addition, advertising costs included within administrative expenses increased by £1.4m in 2022 as a result of new marketing campaigns. |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
9. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax |
Research and Development claim | - | (275,180 | ) |
Under/(over) provision in prior year | - | 4,632 |
Total current tax | ( | ) |
Deferred tax | ( | ) |
Tax on profit | ( | ) |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Notes to the Financial Statements - continued |
for the year ended 30 November 2023 |
9. | TAXATION - continued |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Adjustments to tax charge in respect of previous periods |
Other | ( | ) |
Research and Development claim | ( | ) |
Super deduction claim | ( | ) | ( | ) |
Deferred tax for the year provided at future tax rates |
for deferred tax |
Adjustments due to disposal of non qualifying assets | ( | ) |
Total tax charge/(credit) | 276,614 | (157,397 | ) |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim |
11. | INTANGIBLE FIXED ASSETS |
Website |
development |
costs |
£ |
COST |
At 1 December 2022 |
Additions |
At 30 November 2023 |
AMORTISATION |
At 1 December 2022 |
Amortisation for year |
At 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Notes to the Financial Statements - continued |
for the year ended 30 November 2023 |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
Improvements | Plant and | and | Motor |
to property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 December 2022 |
Additions |
Disposals | ( | ) | ( | ) |
At 30 November 2023 |
DEPRECIATION |
At 1 December 2022 |
Charge for year |
Eliminated on disposal | ( | ) | ( | ) |
At 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
13. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 December 2022 |
and 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Woodlands, Calverley Lane, Leeds, LS13 1NP |
Nature of business: |
% |
Class of shares: | holding |
14. | STOCKS |
2023 | 2022 |
£ | £ |
Raw materials |
Finished goods |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Notes to the Financial Statements - continued |
for the year ended 30 November 2023 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Tax |
Prepayments and accrued income |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
17. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 185,143 | 194,015 |
Deferred tax |
£ |
Balance at 1 December 2022 |
Credit to Statement of Comprehensive Income during year | ( | ) |
Balance at 30 November 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1,675 | 1,675 |
19. | RESERVES |
Retained |
earnings |
£ |
At 1 December 2022 |
Profit for the year |
Dividends | ( | ) |
At 30 November 2023 |
20. | OTHER FINANCIAL COMMITMENTS |
The company enters into forward contracts to purchase raw materials. As at 30 November 2023, the commitment totalled £93,608 (2022: £902,250). |
Woodlands Home & Garden Group Limited (Registered number: 00132673) |
Notes to the Financial Statements - continued |
for the year ended 30 November 2023 |
21. | RELATED PARTY DISCLOSURES |
2023 | 2022 |
£ | £ |
Rent paid |
Amount due from director | - | 18,931 |
Amount due to director | (3,795 | ) | (3,795 | ) |
Amounts advanced to director | - | 6,013 |
The loans to and from the directors are interest free and repayable on demand. |
The investment property was sold in the previous year to a related party for £280,000. |
22. | POST BALANCE SHEET EVENTS |
The business is developing more distribution channels by setting up franchise agreements. |
23. | ULTIMATE CONTROLLING PARTY |
On 20 January 2023, ownership of the holding company was transferred to Woodlands Home & Garden Group Trustees Limited. |
As explained in the strategic report, on 20th January 2023, the business opted to make the move into employee ownership with the formation of a new employee ownership trust (EOT). The trust bought 100% of the shares of the holding company from the previous shareholders on behalf of the employees, as ultimate beneficiaries. As part of the transaction the company paid a dividend of £5.2m to Woodlands Home & Garden Group (Holdings) Limited. |
Until 20 January 2023, the ultimate controlling party was Mr R Moran. On 20 January 2023 it became Woodlands Home & Garden Group Trustees Limited on behalf of Woodlands Home & Garden Group EOT. |
24. | PARENT COMPANY |
The company is a wholly owned subsidiary of Woodlands Home & Garden Group (Holdings) Limited. The results of the company are included within the consolidated accounts of Woodlands Home & Garden Group (Holdings) Limited and the consolidated accounts can be obtained from the parent's registered office address at Woodlands, Calverley Lane, Leeds, LS13 1NP. |