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Registered number: 07689770












LONGACRES GARDEN CENTRE LIMITED
ANNUAL REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
 31 DECEMBER 2023





















 


img450f.png
01483 755 399
hamlyns.com

 
LONGACRES GARDEN CENTRE LIMITED
 

COMPANY INFORMATION


Directors
Julie Margaret Erridge 
Carol Jane Long 
Nigel Peter Long 




Registered number
07689770



Registered office
Longacres Nursery
London Road

Bagshot

Surrey

GU19 5JB




Independent auditors
Hamlyns Limited
Chartered Accountants & Statutory Auditors

Sundial House

High Street

Horsell

Woking

GU21 4SU






 
LONGACRES GARDEN CENTRE LIMITED
 

CONTENTS



Page
Strategic report
 
 
1
Directors' report
 
 
2 - 4
Independent auditors' report
 
 
5 - 8
Statement of income and retained earnings
 
 
9
Balance sheet
 
 
10
Statement of cash flows
 
 
11 - 12
Analysis of net debt
 
 
13
Notes to the financial statements
 
 
14 - 34

 
LONGACRES GARDEN CENTRE LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Business review
 
2023 was a year of further expansion. The company acquired a new site in Addlestone, Surrey, bringing the total Garden Centres from which it operates to six. At Chobham additional premises have been leased to introduce a café to the site.  The investments made in these two new ventures are expected to provide positive contributions to the overall results of the company in the years to come.
  
Inflationary pressures from wages and increased energy prices have been absorbed as far as possible and despite difficult trading conditions all sites have seen increases in their turnover in 2023.
The current infrastructure of the business is sufficient to support its current growth plans and the sites continue to be maintained to the highest possible standards to ensure a very positive customer experience. 

Principal risks and uncertainties
 
The principal risks associated with the business are the usual commercial risks associated with the industry and economic climate in which the company operates.
These are the risk of not generating sufficient sales at a sufficient price, the risk of costs rising to a level where they exceed revenues and the risk associated with failing to deliver the promised service to customers. However, these risks are significantly reduced by the constant strive to offer customers a diverse and strong product range delivered by friendly and knowledgeable staff.
The company's operations expose it to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk and interest rate risk.
The directors actively manage such risks by means of regular monitoring of profit performance and profit and cash forecasts.

Financial key performance indicators
 
The company regularly reports and monitors its performance against strategic objectives by means of key performance indicators (KPI’s).  The principle KPI’s being turnover, gross profit margins, profit before taxation and liquidity.
Turnover slightly increased to £56.9M (2022 £51.0M) with gross profit increasing by just over 10% to £18.5M (2022 £16.8M).  Full details are set out on the financial statements.

Directors' statement of compliance with duty to promote the success of the Company
 
The Directors act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard to all matters set out in section 172 of the Companies Act 2006 when performing their duties and when making decisions for the long term.
Please refer to the Report of the Directors for further details regarding engagement with their employees and other stakeholders. 


This report was approved by the board on 16 August 2024 and signed on its behalf.



___________________________
Nigel Peter Long
Director
Page 1

 
LONGACRES GARDEN CENTRE LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The Directors are responsible for preparing the strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

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


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the company in the year under review was that of garden centre operators. The company
operated from five sites for the whole of the year.

Results and dividends

The profit for the year, after taxation, amounted to £323,152 (2022 - £1,858,898).

The total distribution of dividends for the year ended 31 December 2023 was £376,000 (2022: £94,000)

Directors

The Directors who served during the year were:

Julie Margaret Erridge 
Carol Jane Long 
Nigel Peter Long 

Future developments

The programme of improvements at the Bourne Valley centre in Addlestone continues into the new year and major works are also planned at the Bagshot store to increase and improve the restaurant facilities.   

Page 2

 
LONGACRES GARDEN CENTRE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Engagement with employees

The company gives full consideration to applications for employment from disabled persons where the candidate's particular aptitudes and abilities are consistent with adequately meeting the requirements of the job.
Opportunities are available to all employees for training, career development and promotion.
Longacres is a family run business with directors working alongside staff and regularly having debriefs with shop
management, supervisors, buyers and other staff: this allows employees to influence the decision-making
process and encourages an awareness of the financial and economic factors affecting the performance of their
departments, shops and the company as a whole. It also provides opportunities for employees to feedback
information on matters of concern to them.

Engagement with suppliers, customers and others

Customer service is at the forefront of Longacres success and we are very much dependent on our employees
to provide a first-class service to help us retain our competitiveness in such difficult times for the retail market. A
dedicated customer service team, Facebook, Trust Pilot and other social media outlets all help provide essential
feedback so the company can monitor our progress and adapt quickly to changing demands.
The supply of many varied quality products at competitive prices requires a large number of supply chains to be
working effectively.

Greenhouse gas emissions, energy consumption and energy efficiency action

The SECR disclosures presents the company’s carbon footprints within the UK for scope 1,2 and 3 emissions
based on SECR Legislation, as appropriate intensity metric, the total energy use of electricity, gas and transport
fuel and an energy efficiency actions summary taken during the relevant financial year.

For the year ended 31 December:                                                   2023              2022
UK Energy consumption used to calculate emissions (kWh)           4,328,630       4,502,365
Associated Greenhouse gas emissions (Kg CO2e)                           935,719         987,519
Associated Greenhouse gas emissions per £ turnover (Kg CO2e)         0.08              0.09
UK energy use covers total electricity purchases by the company for its own use, total quantity of consumption
of gas as fuel and total fuel used for business travel.
Associated Greenhouse gases have been calculated using 'GHG Reporting Protocol - Corporate Standard'
methodology

The company continues to search for direct savings in energy and associated carbon emissions through
operational and technological improvements.

Disclosure of information to auditors

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

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

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 3

 
LONGACRES GARDEN CENTRE LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

This report was approved by the board on 16 August 2024 and signed on its behalf.
 





___________________________
Nigel Peter Long
Director

Page 4

 
LONGACRES GARDEN CENTRE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGACRES GARDEN CENTRE LIMITED
 

Opinion


We have audited the financial statements of Longacres Garden Centre Limited  (the 'Company') for the year ended 31 December 2023, which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our auditors' report thereon. The Directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 5

 
LONGACRES GARDEN CENTRE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGACRES GARDEN CENTRE LIMITED (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

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


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


Page 6

 
LONGACRES GARDEN CENTRE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGACRES GARDEN CENTRE LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity and determined that the most significant are the Companies Act 2006, the reporting framework of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and UK taxation legislation. 
We understood how the company was complying with those frameworks through discussions with management and those charged with governance. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. Based on our understanding of the entity and its environment we identified the following areas as key risks and designed our audit approach as detailed to ensure material misstatements and irregularities would be detected in these areas:
Management override:
We undertook testing of controls and systems to gain assurance these have been operating as expected during the period. We also performed journal testing to test the efficacy of journals posted during the period. Additionally, we have reviewed the disclosures in the accounts and the Directors report to ensure they agree with our findings from the audit testing carried out.
Related parties:
Our testing in this area has followed the requirements of ISA 550 (UK). We have issued the Directors with related party declarations to fill out and sign and have compared the information gathered against our knowledge and used this as one way for identifying potential related party disclosures. We have reviewed the disclosure in the financial statements and ensured this agrees with our findings from our audit work.
Revenue recognition:
The main area of risk identified with Income recognition lies with cut off and completion of income. To ensure this is not materially misstated or manipulated we have carried out substantive testing on income cut off and completion.
Stock:
The main risk area in terms of stock is stock valuation. Substantive testing will be carried out on the stock balance to ensure it is not materially misstated.
Bank and cash control: 
Substantive testing was carried out in this regard such as review of bank reconciliation and performing walkthrough tests. 
  


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.


Page 7

 
LONGACRES GARDEN CENTRE LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LONGACRES GARDEN CENTRE LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Oliver Spevack ACA FCCA (senior statutory auditor)
  
for and on behalf of
Hamlyns Limited
 
Chartered Accountants
Statutory Auditors
  
Sundial House
High Street
Horsell
Woking
GU21 4SU

21 August 2024
Page 8

 
LONGACRES GARDEN CENTRE LIMITED
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
56,897,047
51,024,540

Cost of sales
  
(38,401,386)
(34,254,907)

Gross profit
  
18,495,661
16,769,633

Administrative expenses
  
(18,433,670)
(14,732,517)

Other operating income
 5 
1,154,875
994,515

Operating profit
 6 
1,216,866
3,031,631

Interest receivable and similar income
  
83,001
363

Interest payable and similar expenses
 10 
(736,929)
(440,268)

Profit before tax
  
562,938
2,591,726

Tax on profit
 11 
(239,786)
(732,828)

Profit after tax
  
323,152
1,858,898

  

  

Retained earnings at the beginning of the year
  
15,927,150
14,162,250

  
15,927,150
14,162,250

Profit for the year
  
323,152
1,858,898

Dividends declared and paid
  
(376,000)
(94,000)

Retained earnings at the end of the year
  
15,874,302
15,927,148
There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 14 to 34 form part of these financial statements.

Page 9

 
LONGACRES GARDEN CENTRE LIMITED
REGISTERED NUMBER: 07689770

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
6,423,908
7,167,904

Tangible assets
 14 
16,807,183
13,262,674

Investments
  
1,924,152
-

  
25,155,243
20,430,578

Current assets
  

Stocks
 16 
6,058,827
5,984,586

Debtors: amounts falling due within one year
 17 
2,566,253
1,956,833

Cash at bank and in hand
 18 
3,444,371
4,662,142

  
12,069,451
12,603,561

Creditors: amounts falling due within one year
 19 
(7,934,309)
(7,227,928)

Net current assets
  
 
 
4,135,142
 
 
5,375,633

Total assets less current liabilities
  
29,290,385
25,806,211

Creditors: amounts falling due after more than one year
 20 
(3,540,625)
-

Provisions for liabilities
  

Deferred tax
 22 
(374,459)
(378,063)

  
 
 
(374,459)
 
 
(378,063)

Net assets
  
25,375,301
25,428,148


Capital and reserves
  

Called up share capital 
 23 
9,501,000
9,501,000

Profit and loss account
  
15,874,301
15,927,148

  
25,375,301
25,428,148


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 August 2024.




___________________________
Nigel Peter Long
Director

The notes on pages 14 to 34 form part of these financial statements.

Page 10

 
LONGACRES GARDEN CENTRE LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
323,152
1,858,898

Adjustments for:

Amortisation of intangible assets
743,996
743,996

Depreciation of tangible assets
1,188,289
966,157

Loss on disposal of tangible assets
(5,458)
(2,500)

Interest paid
166,563
2,323

Interest received
(83,001)
(363)

Taxation charge
239,786
732,828

(Increase) in stocks
(74,241)
(1,449,421)

(Increase) in debtors
(582,203)
(364,769)

Increase in creditors
1,125,306
516,250

Corporation tax (paid)
(554,127)
(441,544)

Net cash generated from operating activities

2,488,062
2,561,855


Cash flows from investing activities

Purchase of tangible fixed assets
(4,732,797)
(1,640,975)

Sale of tangible fixed assets
5,458
2,500

Purchase of fixed asset investments
(1,924,152)
-

Interest received
83,001
363

Net cash from investing activities

(6,568,490)
(1,638,112)

Cash flows from financing activities

New secured loans
3,953,125
-

Repayment of other loans
(547,906)
(1,074,111)

Dividends paid
(376,000)
(94,000)

Interest paid
(166,562)
(2,323)

Net cash used in financing activities
2,862,657
(1,170,434)

Net (decrease) in cash and cash equivalents
(1,217,771)
(246,691)

Cash and cash equivalents at beginning of year
4,662,142
4,908,833

Cash and cash equivalents at the end of year
3,444,371
4,662,142


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,444,371
4,662,142

3,444,371
4,662,142


Page 11

 
LONGACRES GARDEN CENTRE LIMITED
 
The notes on pages 14 to 34 form part of these financial statements.

Page 12

 
LONGACRES GARDEN CENTRE LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023





At 1 January 2023
Cash flows
Acquisition and disposal of subsidiaries
At 31 December 2023
£

£

£

£

Cash at bank and in hand

4,662,142

(1,217,771)

-

3,444,371

Debt due after 1 year

-

-

(3,540,625)

(3,540,625)

Debt due within 1 year

(1,852,974)

747,906

(412,500)

(1,517,568)


2,809,168
(469,865)
(3,953,125)
(1,613,822)

The notes on pages 14 to 34 form part of these financial statements.

Page 13

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Longacres Garden Centre Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The entity is exempt from preparing consolidated accounts as the subsidiary is immaterial.

The following principal accounting policies have been applied:

 
2.2

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

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

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of income and retained earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 14

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

  
2.3

Revenue

The Company operates a number of stores for the sale of a range of products. Sales of goods are recognised on sale to the customer, which is considered the point of delivery. Store sales are usually paid by cash, credit or payment card. 
Sales are made to store customers with a right to return within 28 days, subject to certain conditions regarding the usage. Accumulated experience is used to estimate and provide for such returns at the time of sale.
Concession and rental income are accrued on a time basis and are recognised within 'other operating income'.

 
2.4

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

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

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

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

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.10

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the statement of income and retained earnings over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
20
years

Goodwill, being the amount paid in connection with the acquisition of businesses in 2011, 2016 and 2019. 
If there is an indication that there has been a significant change in amortisation rate or residual value of an asset, the amortisation of that asset is revised prospectively to reflect the new expectations.
Goodwill is assessed at each reporting date to determine whether there is any indication of impairment.

Page 16

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the following rates.

Depreciation is provided on the following basis:

Freehold property
-
straight line over 20 years
Freehold land
-
no depreciation
Plant and machinery
-
20% on cost
Motor vehicles
-
20% on cost
Fixtures and fittings
-
10% on cost
Computer equipment
-
33% on cost
Improvements to property
-
straight line over 20 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

  
2.12

Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is calculated using the cost of purchase based on the latest seasonal supplier purchase price.

 
2.13

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Page 17

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.19

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's balance sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements,
Page 18

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.19
Financial instruments (continued)

when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is
Page 19

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.19
Financial instruments (continued)

due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.20

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 20

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements the directors have made the following judgements: 
- Determination as to whether leases entered into by the company are to be treated as operating or finance leases. Decisions are made based on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to lessee on a lease by lease basis.
- Determination as to whether the company's tangible and intangible assets indicate impairment. Decisions are made based on considering factors such as the economic viability and expected future financial performance of the asset.
Other key sources of estimations are:
- Goodwill is amortised over its useful life. The actual life and residual value is assessed annually and may vary having consideration of the same factors as considered for impairment.
- Property, plant and equipment are depreciated over their useful lives. The actual lives are assessed annually and may vary having consideration of factors such as technological innovation, product life cycles and maintenance programmes.
- Directors loan accounts are accounted for at amortised cost using the effective interest rate method. Estimations have been made in relation to the repayment term. Consideration of the restrictions in place through financial covenants are considered. The use of a deemed market rate of interest is estimated based on current bank loans.


4.


Turnover

2023
2022
£
£

Turnover
56,897,047
51,024,540

56,897,047
51,024,540


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Other operating income
27,460
20,939

Net rents receivable
1,127,415
973,576

1,154,875
994,515


Page 21

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Exchange differences
(11,288)
31,771

Other operating lease rentals
425,063
408,992


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
27,500
27,000

Fees payable to the Company's auditors and their associates in respect of:

All non-audit services not included above
8,085
7,550

8.


Employees

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


2023
2022
£
£

Wages and salaries
9,872,050
7,871,365

Social security costs
660,263
540,953

Cost of defined contribution scheme
156,953
124,301

10,689,266
8,536,619


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


        2023
        2022
            No.
            No.







Average number of employees
614
564

Page 22

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
253,750
38,462

253,750
38,462


The highest paid Director received remuneration of £101,500 (2022 - £15,383).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid Director amounted to £NIL (2022 - £NIL).

The value of the Company's contributions paid to a defined benefit pension scheme in respect of the highest paid Director amounted to £NIL (2022 - £NIL).

During the year NIL directors received shares under the long-term incentive schemes (2022 -NIL)

The total accrued pension provision of the highest paid Director at 31 December 2023 amounted to £NIL (2022 - £NIL).

The amount of the accrued lump sum in respect of the highest paid Director at 31 December 2023 amounted to £NIL (2022 - £NIL).


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
624,030
347,632

Other loan interest payable
47,436
78,773

Loans from group undertakings
65,463
13,863

736,929
440,268

Page 23

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
243,390
636,806

Deferred tax - current year
(3,604)
96,022


239,786
732,828


Total current tax
239,786
732,828

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 25% (2022 - 19%) as set out below:

2023
2022
£
£


Profit on ordinary activities before tax
575,065
2,591,726


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
140,913
492,428

Effects of:


Non-tax deductible amortisation of goodwill and impairment
185,999
141,359

Capital allowances for year in excess of depreciation
(60,190)
(27,525)

Deferred taxation
(3,604)
96,023

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
257
(404)

Profit and loss on sale of asset
(1,365)
(475)

Adjustment for change of tax rate between years
(17,691)
-

Overpayments to HMRC
(35,012)
-

FRS102 interest adjustments
30,479
31,422

Total tax charge for the year
239,786
732,828


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 24

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Dividends

2023
2022
£
£


C Ordinary shares of £1 each
140,000
35,000


D Ordinary shares of £1 each
140,000
35,000


E Ordinary shares of £1 each
96,000
24,000

376,000
94,000


13.


Intangible assets




Goodwill

£



Cost


At 1 January 2023
15,411,140



At 31 December 2023

15,411,140



Amortisation


At 1 January 2023
8,243,236


Charge for the year on owned assets
743,996



At 31 December 2023

8,987,232



Net book value



At 31 December 2023
6,423,908



At 31 December 2022
7,167,904



Page 25

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets





Freehold property
Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings

£
£
£
£
£



Cost 


At 1 January 2023
4,959,482
2,687,763
1,467,359
624,970
4,015,118


Additions
3,139,500
-
84,935
130,007
829,055


Disposals
-
-
-
(61,346)
-



At 31 December 2023

8,098,982
2,687,763
1,552,294
693,631
4,844,173



Depreciation


At 1 January 2023
844,518
110,775
1,264,535
391,932
2,639,547


Charge for the year on owned assets
123,995
26,877
134,096
114,293
317,718


Disposals
-
-
-
(61,346)
-



At 31 December 2023

968,513
137,652
1,398,631
444,879
2,957,265



Net book value



At 31 December 2023
7,130,469
2,550,111
153,663
248,752
1,886,908



At 31 December 2022
4,114,964
2,576,988
202,824
233,038
1,375,571
Page 26

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           14.Tangible fixed assets (continued)


Computer equipment
Improvement to property
Total

£
£
£



Cost 


At 1 January 2023
226,847
8,228,236
22,209,775


Additions
92,694
456,606
4,732,797


Disposals
-
-
(61,346)



At 31 December 2023

319,541
8,684,842
26,881,226



Depreciation


At 1 January 2023
216,606
3,479,187
8,947,100


Charge for the year on owned assets
37,056
434,254
1,188,289


Disposals
-
-
(61,346)



At 31 December 2023

253,662
3,913,441
10,074,043



Net book value



At 31 December 2023
65,879
4,771,401
16,807,183



At 31 December 2022
10,240
4,749,049
13,262,674

Included within freehold property is land valued at £3,139,500 (2022: £NIL).

Page 27

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


Additions
2,854,152


Amounts written off
(930,000)



At 31 December 2023
1,924,152





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Bourne Valley Garden Centre
Longacres Nursery, London Road, Bagshot, England, GU19 5JB
Ordinary
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Bourne Valley Garden Centre
310,515
-

Page 28

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Stocks

2023
2022
£
£

Finished goods and goods for resale
6,058,827
5,984,586

6,058,827
5,984,586


Page 29

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Debtors

2023
2022
£
£


Trade debtors
1,579,593
1,019,532

Other debtors
602,669
575,192

Prepayments and accrued income
383,991
362,109

2,566,253
1,956,833



18.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
3,444,371
4,662,142

3,444,371
4,662,142



19.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
412,500
-

Trade creditors
4,723,548
4,044,749

Other taxation and social security
1,227,988
1,124,801

Corporation tax
-
83,522

Accruals and deferred income
380,451
65,025

Other creditors
84,753
56,857

Other loans
1,105,069
1,852,974

7,934,309
7,227,928


The company's liabilities to Lloyds Bank PLC are secured by a debenture dated 29th July 2016 giving a fixed charge over all assets of the company.


20.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
3,540,625
-

3,540,625
-


Page 30

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
412,500
-

Other loans
1,105,068
1,852,974


1,517,568
1,852,974

Amounts falling due 1-2 years

Bank loans
412,500
-


412,500
-

Amounts falling due 2-5 years

Bank loans
3,128,125
-


3,128,125
-


5,058,193
1,852,974


Interest is charged on the above loans for each interest period of three months at an annual rate which is the sum of the margin of 1.9%-2% plus LIBOR.


22.


Deferred taxation




2023
2022


£

£






At beginning of year
(378,063)
(282,041)


Charged to profit or loss
-
(96,022)


Utilised in year
3,604
-



At end of year
(374,459)
(378,063)

Page 31

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
22.Deferred taxation (continued)

2023
2022
£
£


Accelerated capital allowances
(378,063)
(282,041)

Amounts used
3,604
(96,022)

(374,459)
(378,063)


23.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



Enter number A Ordinary shares of £1.00 each
500
500
Enter number B Ordinary shares of £1.00 each
9,500,000
9,500,000
Enter number C Ordinary shares of £1.00 each
200
200
Enter number D Ordinary shares of £1.00 each
150
150
Enter number150 E Ordinary shares of £1.00 each
150
150

9,501,000

9,501,000

The A ordinary shares are non-redeemable but shall hold full rights in respect of voting, and will entitle the holder to full participation in respect of equity and in that event of a winding up of the company. The shares will be considered by the directors when considering dividends from time to time.
The B ordinary shares are non-voting and non-redeemable and are ranked as a separate class for the purposes of the declaration and payment of dividends. Otherwise, these B ordinary shares rank pari passu and have the same rights and are subject to the same restrictions as the ordinary shares in the capital of the company, including full rights to participate in distributions of capital (including winding up).
The C ordinary shares rank as a separate class of shares for the purposes of the declaration and payment of dividends but rank pari passu and have the same voting and other rights as the ordinary shares in the capital of the company.
The D ordinary shares rank as a separate class of shares for the purposes of the declaration and payment of dividends but rank pari passu and have the same voting and other rights as the ordinary shares in the capital of the company.
The E ordinary shares rank as a separate class of shares for the purposes of the declaration and payment of dividends but rank pari passu and have the same voting and other rights as the ordinary shares in the capital of the company.


Page 32

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

24.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £156,953 (2022: £124,301) . 
Contributions totalling £10,736 (2022: £24,897) were payable to the fund at the balance sheet date and are included in creditors.


25.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
365,000
300,000

Later than 1 year and not later than 5 years
900,000
1,200,000

1,265,000
1,500,000


26.


Transactions with directors

During the year amounts of £86,076 were advanced to a director with a year-end balance of £49,827 (2022: £36,478).
This loan is repayable on demand with interest charged at 3.5% per annum.


27.


Related party transactions

During the period various transactions took place with the following related parties:


2023
2022
£
£

Purchases from companies under common control
(1,017,554)
(997,663)
Sales to companies under common control
2,252,939
1,997,432
Recharges to companies under common control
664,110
1,264,211
Recharges from companies under common control
(1,489)
(2,311)
Management charges made to companies under common control
1,418,303
635,758
Owed to companies under common control
23,760
(400)
Owed by companies under common control
875,111
390,126
Combined amounts owed to directors
1,105,068
(1,852,974)
Transactions with other related parties
(56,569)
(48,118)

The balance owed by directors has been accounted for using the effective interest rate method for a deemed market rate of interest (3.5%).

Page 33

 
LONGACRES GARDEN CENTRE LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

28.


Controlling party

The company is under the control of the directors.

Page 34