Company registration number 01807258 (England and Wales)
POLHILL GARDEN CENTRE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
POLHILL GARDEN CENTRE LIMITED
COMPANY INFORMATION
Directors
D Novell
A Novell
R Dymond
J Novell
M Novell
R Wood
P A Bensted
Secretary
D Novell
Company number
01807258
Registered office
London Road
Badgers Mount
Nr Sevenoaks
Kent
TN14 7BD
Auditor
Perrys Audit Limited
Chartered Accountants
4th Floor
399-401 Strand
London
United Kingdom
WC2R 0LT
POLHILL GARDEN CENTRE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Profit and loss account
5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
Independent auditor's report
22 - 25
POLHILL GARDEN CENTRE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

The principal activity of the company in the year under review was that of the sale of horticultural and associated goods.

Review of the business

Development and performance of the company’s business during the financial year:
Turnover and profit after tax increased in the year.
A successful refurbishment of our restaurant at the beginning of the year has been very well received by our customers and achieved a marked increase in turnover from 2022.

 

Position of the company’s business at the end of the year:
Net assets at the end of the year were £2,108,391.

 

Future developments

With the success of our restaurant refurbishment in 2023 we continue to invest in improving our customer experience in our store. In early 2024 we carried out refurbishment of our toilet facilities adjacent to our restaurant.

Principal risks and uncertainties

The principal risk facing the company is the weather. The garden centre largely consists of heated buildings and covered outdoor areas which mitigates the effects of bad weather.

Management of financial risks

The company’s activities involve various financial risks. Management review these risks and implement policies to minimise them.


The company has little exposure to currency risk as most of its transactions are conducted in sterling.
Credit risk is primarily attributable to trade and other debtors. The amounts in the balance sheet are net of allowances for doubtful debts where applicable.


The company has interest-rate risk relating to its bank borrowings, although interest rates remain low.
The company has low liquidity risk and low cash flow risk due to its bank deposits.

Key performance indicators

The company's key financial and other performance indicators during the year were as follows:

 

 

 

 

Turnover - 2023 £13,043,026 - 2022 £12,462,164

 

 

 

Gross profit - 2023 £6,113,889 - 2022 £5,816,985

 

 

 

Gross profit - 2023 47% - 2022 47%

 

 

 

Profit after tax - 2023 £333,194 - 2022 £307,973

 

 

 

POLHILL GARDEN CENTRE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

.............................................
D Novell
Director
Date: .............................................
POLHILL GARDEN CENTRE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Results and dividends

The results for the year are set out on page 5.

Ordinary dividends were paid amounting to £608,195. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D Novell
A Novell
R Dymond
J Novell
M Novell
R Wood
P A Bensted
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
D Novell
Director
24 July 2024
POLHILL GARDEN CENTRE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the annual 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 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:

 

 

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.

POLHILL GARDEN CENTRE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
2023
2022
Notes
£
£
Turnover
3
13,043,026
12,462,164
Cost of sales
(6,929,137)
(6,645,179)
Gross profit
6,113,889
5,816,985
Administrative expenses
(6,223,067)
(5,961,291)
Other operating income
794,982
727,583
Operating profit
4
685,804
583,277
Interest receivable and similar income
7
11,049
-
0
Interest payable and similar expenses
8
(226,977)
(210,991)
Profit before taxation
469,876
372,286
Tax on profit
9
(136,682)
(64,313)
Profit for the financial year
333,194
307,973

The profit and loss account has been prepared on the basis that all operations are continuing operations.

POLHILL GARDEN CENTRE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2023
2022
£
£
Profit for the year
333,194
307,973
Other comprehensive income
-
-
Total comprehensive income for the year
333,194
307,973
POLHILL GARDEN CENTRE LIMITED (REGISTERED NUMBER: 01807258)
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 7 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,962,742
3,080,338
Current assets
Stocks
12
1,884,002
2,448,767
Debtors
13
343,502
303,360
Cash at bank and in hand
1,300,162
798,025
3,527,666
3,550,152
Creditors: amounts falling due within one year
14
(1,984,643)
(1,714,365)
Net current assets
1,543,023
1,835,787
Total assets less current liabilities
4,505,765
4,916,125
Creditors: amounts falling due after more than one year
15
(2,262,424)
(2,365,928)
Provisions for liabilities
Deferred tax liability
18
134,950
166,805
(134,950)
(166,805)
Net assets
2,108,391
2,383,392
Capital and reserves
Called up share capital
20
9,550
9,550
Share premium account
34,521
34,521
Profit and loss reserves
2,064,320
2,339,321
Total equity
2,108,391
2,383,392

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 24 July 2024 and are signed on its behalf by:
D Novell
Director
POLHILL GARDEN CENTRE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
9,550
34,521
2,624,543
2,668,614
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
307,973
307,973
Dividends
10
-
-
(593,195)
(593,195)
Balance at 31 December 2022
9,550
34,521
2,339,321
2,383,392
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
333,194
333,194
Dividends
10
-
-
(608,195)
(608,195)
Balance at 31 December 2023
9,550
34,521
2,064,320
2,108,391
POLHILL GARDEN CENTRE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
1,876,437
373,564
Interest paid
(226,977)
(210,991)
Income taxes paid
(92,946)
(307,660)
Net cash inflow/(outflow) from operating activities
1,556,514
(145,087)
Investing activities
Purchase of tangible fixed assets
(456,077)
(547,716)
Proceeds from disposal of tangible fixed assets
58,001
27,249
Interest received
11,049
-
0
Net cash used in investing activities
(387,027)
(520,467)
Financing activities
Repayment of bank loans
(100,059)
(193,764)
Payment of finance leases obligations
40,904
49,480
Dividends paid
(608,195)
(593,195)
Net cash used in financing activities
(667,350)
(737,479)
Net increase/(decrease) in cash and cash equivalents
502,137
(1,403,033)
Cash and cash equivalents at beginning of year
798,025
2,201,058
Cash and cash equivalents at end of year
1,300,162
798,025
POLHILL GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

Polhill Garden Centre Limited is a private company limited by shares incorporated in England and Wales. The registered office is London Road, Badgers Mount, Nr Sevenoaks, Kent, TN14 7BD.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of 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 £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet 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.

1.3
Turnover

Turnover is recognised at the fair value of consideration received or receivable for the 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. The following criteria must also be met before turnover is recognised.

Turnover for the sale of goods is recognised when all of the following conditions are met:

- The company has transferred the significant risks and rewards of ownership to the buyer;

- The amount of turnover can be recognised reliably and;

- It is probable that the company will receive the consideration due under the transaction.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
3.3% per annum straight line
Leasehold land and buildings
Buildings 2-20% per annum straigh line. Land is not depreciated
Plant and equipment
5-20% per annum straight line
Motor vehicles
20% per annum reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

POLHILL GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.5
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.

 

1.6
Financial instruments
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

POLHILL GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

1.8
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.9
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

POLHILL GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stocks

Stocks are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of goods
12,797,519
12,212,727
Management charges
245,507
249,437
13,043,026
12,462,164
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
13,043,026
12,462,164
2023
2022
£
£
Other revenue
Interest income
11,049
-
Rental income
744,982
727,583
Other income
50,000
-
POLHILL GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,750
14,500
Depreciation of owned tangible fixed assets
489,529
496,148
Depreciation of tangible fixed assets held under finance leases
60,421
73,448
Profit on disposal of tangible fixed assets
(34,278)
(15,258)
Operating lease charges
252,763
218,363
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
192
186

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,110,926
2,880,461
Social security costs
255,244
243,539
Pension costs
71,339
66,714
3,437,509
3,190,714
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
516,590
495,508
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
99,115
100,386
POLHILL GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
11,049
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
11,049
-
0
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
45,464
29,241
Dividends on redeemable preference shares not classified as equity
43,600
43,600
Other interest on financial liabilities
130,050
130,050
219,114
202,891
Other finance costs:
Interest on finance leases and hire purchase contracts
7,863
8,100
226,977
210,991
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
168,537
92,946
Deferred tax
Origination and reversal of timing differences
(31,855)
(28,633)
Total tax charge
136,682
64,313
POLHILL GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 16 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
469,876
372,286
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
110,517
70,734
Tax effect of expenses that are not deductible in determining taxable profit
10,255
5,385
Depreciation on assets not qualifying for tax allowances
15,910
(11,806)
Taxation charge for the year
136,682
64,313
10
Dividends
2023
2022
£
£
Interim paid
608,195
593,195
POLHILL GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
11
Tangible fixed assets
Freehold buildings
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
561,261
3,117,357
6,379,772
746,915
10,805,305
Additions
-
0
80,590
179,843
195,644
456,077
Disposals
-
0
-
0
-
0
(140,479)
(140,479)
At 31 December 2023
561,261
3,197,947
6,559,615
802,080
11,120,903
Depreciation and impairment
At 1 January 2023
114,587
1,495,612
5,649,446
465,322
7,724,967
Depreciation charged in the year
7,221
79,245
331,247
132,237
549,950
Eliminated in respect of disposals
-
0
-
0
-
0
(116,756)
(116,756)
At 31 December 2023
121,808
1,574,857
5,980,693
480,803
8,158,161
Carrying amount
At 31 December 2023
439,453
1,623,090
578,922
321,277
2,962,742
At 31 December 2022
446,674
1,621,745
730,326
281,593
3,080,338

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Motor vehicles
253,109
191,018
12
Stocks
2023
2022
£
£
Finished goods and goods for resale
1,884,002
2,448,767
POLHILL GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
55,083
49,762
Other debtors
63,175
48,973
Prepayments and accrued income
225,244
204,625
343,502
303,360
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
115,694
106,243
Obligations under finance leases
17
101,280
66,382
Trade creditors
547,170
464,453
Corporation tax
168,537
92,946
Other taxation and social security
524,714
482,237
Other creditors
348,358
347,284
Accruals and deferred income
178,890
154,820
1,984,643
1,714,365
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
495,017
604,527
Obligations under finance leases
17
91,907
85,901
Other borrowings
16
650,000
650,000
Other creditors
1,025,500
1,025,500
2,262,424
2,365,928
POLHILL GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
16
Loans and overdrafts
2023
2022
£
£
Bank loans
610,711
710,770
Preference shares
650,000
650,000
1,260,711
1,360,770
Payable within one year
115,694
106,243
Payable after one year
1,145,017
1,254,527

Bank loans are secured by way of fixed and floating charges over the assets of the company.

Bank borrowings

The company has two bank loans with details as follows:

A 5 year bank loan with an interest rate 2.24% above base rate and a maturity date of 31st May 2026. The carrying amount at the year end is £369,839 (2023 - £414,325).

A 10 year bank loan with an interest rate 2.24% above base rate and a maturity date of 31st August 2027. The carrying amount at the year end is £240,872 (2023 - £296,446).

 

17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
101,280
66,382
In two to five years
91,907
85,901
193,187
152,283
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
134,950
166,805
POLHILL GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Deferred taxation
(Continued)
- 20 -
2023
Movements in the year:
£
Liability at 1 January 2023
166,805
Credit to profit or loss
(31,855)
Liability at 31 December 2023
134,950

The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.

19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
71,339
66,714

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
9,550
9,550
9,550
9,550
21
Related party transactions
Transactions with related parties

At the balance sheet date £63,175 (2022 £48,973) was receivable from Garden & Plant Centre Developments Ltd, a company in which Mr D J Novell is a director. The amount was included within debtors. Income received in the year was £245,507 (2022 £249,437).

POLHILL GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
333,194
307,973
Adjustments for:
Taxation charged
136,682
64,313
Finance costs
226,977
210,991
Investment income
(11,049)
-
0
Gain on disposal of tangible fixed assets
(34,278)
(15,258)
Depreciation and impairment of tangible fixed assets
549,950
569,596
Movements in working capital:
Decrease/(increase) in stocks
564,765
(714,197)
(Increase)/decrease in debtors
(40,142)
136,472
Increase/(decrease) in creditors
150,338
(186,326)
Cash generated from operations
1,876,437
373,564
23
Analysis of changes in net debt
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
798,025
502,137
1,300,162
Borrowings excluding overdrafts
(1,360,770)
100,059
(1,260,711)
Obligations under finance leases
(152,283)
(40,904)
(193,187)
(715,028)
561,292
(153,736)
POLHILL GARDEN CENTRE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF POLHILL GARDEN CENTRE LIMITED
- 22 -
Opinion

We have audited the financial statements of Polhill Garden Centre Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

POLHILL GARDEN CENTRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POLHILL GARDEN CENTRE LIMITED
- 23 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

POLHILL GARDEN CENTRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POLHILL GARDEN CENTRE LIMITED
- 24 -

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 focused on laws and regulations which could give rise to a material misstatement in the revised financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the revised financial statement disclosures to underlying supporting documentation and enquiries with management.

 

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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

We are also required to report whether in our opinion the original financial statements failed to comply with the requirements of the Companies Act 2006 in the respects identified by the directors. The audit of revised financial statements includes the performance of procedures to assess whether the revisions made by the directors are appropriate and have been properly made.

 

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Hale
Senior Statutory Auditor
For and on behalf of Perrys Audit Limited
Chartered Accountants
Statutory Auditor
4th Floor
399-401 Strand
London
United Kingdom
POLHILL GARDEN CENTRE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF POLHILL GARDEN CENTRE LIMITED
- 25 -
WC2R 0LT
24 July 2024
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