Registration number:
B.E. Enterprises Limited
for the Year Ended 31 December 2023
B.E. Enterprises Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
B.E. Enterprises Limited
Company Information
Directors |
H D Evans M T Evans B A K Eyre |
Registered office |
|
Auditors |
|
B.E. Enterprises Limited
Strategic Report for the Year Ended 31 December 2023
The directors present their strategic report for the year ended 31 December 2023.
Principal activity
The principal activity of the group, including the company and its subsidiary is to own and manage garden centres and nurseries.
Fair review of the business
The market remains challenging as we emerge from the effects of Covid and the subsequent change to customer buying habits. On balance, the business outlook is positive and improving notwithstanding unforeseen internal and external materially adverse influences.
The net assets of the group at the balance sheet date were £5,947,622 (2022: £5,916,527).
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2023 |
2022 |
Turnover |
£ |
9,516,848 |
9,110,194 |
Turnover growth/(decline) |
% |
4 |
(6) |
Gross profit margin |
% |
39 |
41 |
Profit before tax |
£ |
175,621 |
852,107 |
Principal risks and uncertainties
The Group faces a number of risks and uncertainties and the directors believe that the key business risks are summarised below. In view of these risks and uncertainties, the directors are aware that the development of the Group may be affected by factors outside their control.
Competitive risks
Trading is influenced by the macroeconomic environment in the UK. Demand is sensitive to economic growth, interest rate movements, inflation, unemployment and demographic trends. The Group faces competition in its business from a variety of sources including large retail chains as well as small family owned garden centres. The Group has historically developed its business by means of organic growth and new development. If a competitor develops a similar outlet in the vicinity of the Group’s existing branches, this may have an impact on footfall and the potential revenue generation at that branch, The directors are confident that the positioning of the brand and offering, the quality of premises, plus the demographics of the population, will protect future income streams for the group.
Weather risk
One of the group’s principal risks is the weather. Adverse weather can impact on footfall and sales of certain product lines at key trading times of the year. The group diversifies its product offering to mitigate and spread this risk as far as it is able.
Supply chain risk
The group maintains strong, long standing relationships with its key suppliers. The directors regularly review trading terms and monitor alternative supply options.
National wage legislation
The group has a substantial number of emplyees and payroll costs is one of the group’s largest overheads. The directors monitor staffing levels in line with other factors such as the weather and expected footfall and adjust staff numbers accordingly.
B.E. Enterprises Limited
Strategic Report for the Year Ended 31 December 2023
Approved and authorised by the
......................................... |
B.E. Enterprises Limited
Directors' Report for the Year Ended 31 December 2023
The directors present their report and the for the year ended 31 December 2023.
Statement of directors' responsibilities
The directors acknowledge their responsibilities 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements 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; and |
• |
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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Directors of the group
The directors who held office during the year were as follows:
Dividends
Dividends paid during the year amounted to £84,000 (2022: £84,000). No final dividends are proposed.
B.E. Enterprises Limited
Directors' Report for the Year Ended 31 December 2023
Financial instruments
Objectives and policies
The company uses various financial instruments which include cash, trade debtors, trade creditors and amounts due to group undertakings that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks, which are described in more detail in the strategic report.
Price risk, credit risk, liquidity risk and cash flow risk
The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in sterling. The group trades with foreign suppliers and is therefore exposed to currency fluctuations. The situation is regularly reviewed by the directors so that they can take approprite action. The group does not enter into any formally designated hedging arrangements. The group continues to be financed from the sources shown within the financial statements including third party lenders and continues to be required to meet their ongoing lending requirements, in the normal way. The group does not use financial instruments to hedge against interest rate risks.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
......................................... |
B.E. Enterprises Limited
Independent Auditor's Report to the Members of B.E. Enterprises Limited
Opinion
We have audited the financial statements of B.E. Enterprises Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2023 and of the group's 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
B.E. Enterprises Limited
Independent Auditor's Report to the Members of B.E. Enterprises Limited
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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' Report [set out on page 8], 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 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.
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.
B.E. Enterprises Limited
Independent Auditor's Report to the Members of B.E. Enterprises Limited
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policies were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
B.E. Enterprises Limited
Independent Auditor's Report to the Members of B.E. Enterprises Limited
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.
......................................
For and on behalf of
Fawley House
2 Regatta Place
Marlow Road
Buckinghamshire
SL8 5TD
B.E. Enterprises Limited
Consolidated Profit and Loss Account for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
(65,410) |
(37,143) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
|
Non Controlling Interests |
( |
|
|
|
|
B.E. Enterprises Limited
Consolidated Statement of Comprehensive Income for the Year Ended 31 December 2023
2023 |
2022 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Non Controlling Interests |
( |
|
|
|
B.E. Enterprises Limited
(Registration number: 00641227)
Consolidated Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
3,260 |
3,260 |
|
Share premium reserve |
400 |
400 |
|
Other reserves |
770 |
770 |
|
Retained earnings |
5,798,345 |
5,766,915 |
|
Equity attributable to owners of the company |
5,802,775 |
5,771,345 |
|
Non Controlling Interests |
144,847 |
145,182 |
|
Shareholders' funds |
5,947,622 |
5,916,527 |
Approved and authorised by the
......................................... |
B.E. Enterprises Limited
(Registration number: 00641227)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
3,260 |
3,260 |
|
Share premium reserve |
400 |
400 |
|
Other reserves |
770 |
770 |
|
Retained earnings |
4,883,080 |
4,848,886 |
|
Shareholders' funds |
4,887,510 |
4,853,316 |
The company made a profit after tax for the financial year of £118,194 (2022 - profit of £604,484).
Approved and authorised by the
......................................... |
B.E. Enterprises Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2023
Equity attributable to the parent company
Share capital |
Share premium |
Other reserves |
Retained earnings |
|
At 1 January 2023 |
|
|
|
|
Profit/(loss) for the year |
- |
- |
- |
|
Dividends |
- |
- |
- |
( |
At 31 December 2023 |
|
|
|
|
Total |
Non-controlling interests - Equity |
Total equity |
|
At 1 January 2023 |
|
|
|
Profit/(loss) for the year |
|
( |
|
Dividends |
( |
- |
( |
At 31 December 2023 |
|
|
|
B.E. Enterprises Limited
Statement of Changes in Equity for the Year Ended 31 December 2023
Share capital |
Share premium |
Other reserves |
Retained earnings |
|
At 1 January 2023 |
|
|
|
|
Profit for the year |
- |
- |
- |
|
Dividends |
- |
- |
- |
( |
At 31 December 2023 |
|
|
|
|
Total |
|
At 1 January 2023 |
|
Profit for the year |
|
Dividends |
( |
At 31 December 2023 |
|
Share capital |
Share premium |
Other reserves |
Retained earnings |
|
At 1 January 2022 |
|
|
|
|
Profit for the year |
- |
- |
- |
|
Dividends |
- |
- |
- |
( |
At 31 December 2022 |
3,260 |
400 |
770 |
4,848,886 |
Total |
|
At 1 January 2022 |
|
Profit for the year |
|
Dividends |
( |
At 31 December 2022 |
4,853,316 |
B.E. Enterprises Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Profit on disposal of tangible assets |
( |
- |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Taxation expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
|
|
|
Corporation tax paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
- |
|
|
Repayment of bank borrowing |
( |
( |
|
Proceeds from other borrowing draw downs |
|
- |
|
Payments to finance lease creditors |
( |
( |
|
Proceeds from advance of government grants |
- |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
211,211 |
245,556 |
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales, with company number 00641227.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £118,194 (2022 - profit of £604,484).
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.
The group recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities.
Government grants
Government grants are recognised under the accrual model of grant recognition. This model requires the grant to be classified as either a revenue-based grant or a capital-based grant.
Government grants are recognised in profit or loss on a systematic basis over the periods in which the entity recognises expenses for the related costs for which the grants are intended to compensate.
Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Asset class |
Depreciation method and rate |
Freehold property |
2% on cost |
Long leasehold |
2% on cost |
Plant and machinery |
10% reducing balance |
Fixtures and fittings |
15% reducing balance |
Motor Vehicles |
20% reducing balance |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10% on cost |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Operating lease expense - plant and machinery |
|
|
Profit on disposal of property, plant and equipment |
( |
- |
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income on bank deposits |
- |
|
Other finance income |
|
- |
|
|
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Interest expense on other finance liabilities |
|
|
|
|
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration and support |
|
|
Sales |
|
|
Nursery |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of these financial statements |
14,200 |
17,900 |
Other fees to auditors |
||
Taxation compliance services |
|
- |
All other assurance services |
|
- |
|
- |
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
- |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
( |
Effect of tax losses |
- |
( |
Tax increase from effect of unrelieved tax losses carried forward |
|
- |
Deferred tax expense from unrecognised temporary difference from a prior period |
|
|
Total tax charge |
|
|
In the Spring Budget 2021, an increase in the corporation tax rate to 25% with effect from 1 April 2023 was substantively enacted. The 23.5% rate used above reflects 9 months of this new rate and 3 months of the previous rate of 19%. The 25% rate is used to measure UK deferred taxes in 2023.
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Intangible assets |
Group
Goodwill |
Total |
|
Cost or valuation |
||
At 1 January 2023 |
|
|
At 31 December 2023 |
|
|
Amortisation |
||
At 1 January 2023 |
|
|
At 31 December 2023 |
|
|
Carrying amount |
||
At 31 December 2023 |
- |
- |
Company
Goodwill |
Total |
|
Cost or valuation |
||
At 1 January 2023 |
|
|
At 31 December 2023 |
|
|
Amortisation |
||
At 1 January 2023 |
|
|
At 31 December 2023 |
|
|
Carrying amount |
||
At 31 December 2023 |
- |
- |
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Tangible assets |
Group
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
||
Cost or valuation |
|||||
At 1 January 2023 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
- |
- |
( |
- |
|
At 31 December 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 January 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
- |
|
At 31 December 2023 |
|
|
|
|
|
Carrying amount |
|||||
At 31 December 2023 |
|
|
|
|
|
At 31 December 2022 |
|
|
|
|
Total |
|||||
Cost or valuation |
|||||
At 1 January 2023 |
|
||||
Additions |
|
||||
Disposals |
( |
||||
At 31 December 2023 |
|
||||
Depreciation |
|||||
At 1 January 2023 |
|
||||
Charge for the year |
|
||||
Eliminated on disposal |
( |
||||
At 31 December 2023 |
|
||||
Carrying amount |
|||||
At 31 December 2023 |
|
||||
At 31 December 2022 |
|
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Included within the net book value of land and buildings above is £2,933,817 (2022 - £2,919,026) in respect of freehold land and buildings and £1,277,191 (2022 - £1,293,855) in respect of long leasehold land and buildings.
The directors estimate that 50% of the value of the freehold property shown above relates to land. This proportion has been excluded from the depreciation calculations.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Motor vehicles |
39,563 |
- |
Plant and machinery |
77,947 |
- |
117,510 |
- |
Company
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Other tangible assets |
||
Cost or valuation |
|||||
At 1 January 2023 |
|
|
|
|
|
Additions |
|
|
|
|
|
Disposals |
- |
- |
( |
- |
|
At 31 December 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 January 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
- |
|
At 31 December 2023 |
|
|
|
|
|
Carrying amount |
|||||
At 31 December 2023 |
|
|
|
|
|
At 31 December 2022 |
|
|
|
|
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Total |
|||||
Cost or valuation |
|||||
At 1 January 2023 |
|
||||
Additions |
|
||||
Disposals |
( |
||||
At 31 December 2023 |
|
||||
Depreciation |
|||||
At 1 January 2023 |
|
||||
Charge for the year |
|
||||
Eliminated on disposal |
( |
||||
At 31 December 2023 |
|
||||
Carrying amount |
|||||
At 31 December 2023 |
|
||||
At 31 December 2022 |
|
Included within the net book value of land and buildings above is £1,807,309 (2022 - £1,825,751) in respect of freehold land and buildings and £1,277,191 (2022 - £1,293,855) in respect of long leasehold land and buildings.
The directors estimate that 50% of the value of the freehold property shown above relates to land. This proportion has been excluded from the depreciation calculations.
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Motor vehicles |
39,563 |
- |
Plant and machinery |
77,947 |
- |
117,510 |
- |
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Investments |
Group
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
Bourne End Garden Centre
|
|
|
|
England and Wales |
The principal activity of Iver Flowerland Limited is the wholesale of flowers and plants.
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 January 2023 |
|
Provision |
|
Carrying amount |
|
At 31 December 2023 |
|
At 31 December 2022 |
|
Stocks |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Stocks |
|
|
|
|
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Debtors |
Group |
Company |
||||
Current |
Note |
2023 |
2022 |
2023 |
2022 |
Trade debtors |
|
|
|
|
|
Amounts owed by group companies |
- |
- |
|
|
|
Other debtors |
|
|
|
|
|
Prepayments |
|
|
|
|
|
Corporation tax |
|
- |
|
- |
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash on hand |
|
- |
|
- |
Cash at bank |
|
|
|
|
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
|
|
|
Amounts due to related parties |
|
|
|
|
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
- |
|
Other payables |
|
|
|
|
|
Accruals |
|
|
|
|
|
Corporation tax |
- |
17,158 |
- |
16,489 |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 January 2023 |
|
|
Additional provisions |
|
|
At 31 December 2023 |
|
|
|
The deferred tax provision relates to differences between accumulated depreciation and capital allowances. The net deferred tax liability expected to reverse in 2024 is £33,000, relating to the reversal of existing timing differences on capital allowances.
Company
Deferred tax |
Total |
|
At 1 January 2023 |
|
|
Additional provisions |
|
|
At 31 December 2023 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
1,200 |
|
1,200 |
|
|
2,060 |
|
2,060 |
|
|
|
|
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Ordinary A shares have the following rights, preferences and restrictions: |
Loans and borrowings |
Non-current loans and borrowings
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Bank borrowings |
|
|
|
|
Hire purchase contracts |
|
- |
|
- |
|
|
|
|
Current loans and borrowings
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Bank borrowings |
|
|
|
|
Group
Bank borrowings
The bank borrowings are secured by a fixed charge over the freehold property and a guarantee for £150,000 by two directors of the company. |
Included in the loans and borrowings are the following amounts due after more than five years:
2023 |
2022 |
|
After more than five years by instalments |
|
|
372,313 |
363,110 |
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
- |
Later than one year and not later than five years |
|
- |
|
- |
Company
Finance leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
- |
Later than one year and not later than five years |
|
- |
|
- |
Dividends |
2023 |
2022 |
|||
Interim dividends paid |
84,000 |
84,000 |
||
Contingent liabilities |
Group
The subsidiary's banking arrangements are conducted through the parent company bank accounts, as such the subsidiary's assets also secure any credit arrangements entered into by the parent company.
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Analysis of changes in net debt |
Group
At 1 January 2023 |
Financing cash flows |
New finance leases |
At 31 December 2023 |
|
Cash and cash equivalents |
||||
Cash |
245,556 |
(34,345) |
- |
211,211 |
Borrowings |
||||
Long term borrowings |
(1,173,208) |
242,425 |
- |
(930,783) |
Lease liabilities |
- |
18,421 |
(89,913) |
(71,492) |
(1,173,208) |
260,846 |
(89,913) |
(1,002,275) |
|
|
||||
( |
|
( |
( |
Company
At 1 January 2023 |
Financing cash flows |
New finance leases |
At 31 December 2023 |
|
Cash and cash equivalents |
||||
Cash |
245,468 |
(34,345) |
- |
211,123 |
Borrowings |
||||
Long term borrowings |
(1,173,208) |
242,425 |
- |
(930,783) |
Lease liabilities |
- |
18,421 |
(89,913) |
(71,492) |
(1,173,208) |
260,846 |
(89,913) |
(1,002,275) |
|
( |
|
( |
( |
|
|
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Related party transactions |
Group
Transactions between group companies, which are related parties, have been eliminated on consolidation and are not disclosed in this note.
Other transactions with directors |
During the year the directors operated directors' loan accounts. Repayments made by directors in the year were £20,607. At the balance sheet date amounts owed to the directors by the company was £327,175 (2022: £347,782). These loans are repayable on demand, unsecured and free of interest.
Company
Other transactions with directors |
During the year the directors operated directors' loan accounts. Repayments made by directors in the year were £16,247. At the balance sheet date amounts owed to the directors by the company was £327,175 (2022: £343,422). These loans are repayable on demand, unsecured and free of interest.
Summary of transactions with subsidiaries
Management charges were payable in the year totalling £168,000 (2022: £168,000) for parent company administration that has been undertaken by the subsidiary. Purchases of goods in the year from the subsidiary totalled £282,235 (2022: £278,770).
Financial instruments |
Group
Categorisation of financial instruments
2023 |
2022 |
|
Financial assets measured at amortised cost |
|
|
Financial liabilities measured at amortised cost |
|
|
Company
Categorisation of financial instruments
2023 |
2022 |
|
Financial assets measured at amortised cost |
|
|
Financial liabilities measured at amortised cost |
|
|
Financial assets measured at amortised cost comprise of trade debtors, cash at bank and in hand and prepayments.
Financial liabilities measured at amortised cost comprise of trade creditors, bank loans and hire purchase contracts.
B.E. Enterprises Limited
Notes to the Financial Statements for the Year Ended 31 December 2023
Parent and ultimate parent undertaking |
The ultimate controlling party is
Non adjusting events after the financial period |
|