Forest Farm & Garden Services Limited 02755496 false 2023-01-01 2023-12-31 2023-12-31 The principal activity of the company is that of the sale of fruit and vegetable produce. Digita Accounts Production Advanced 6.30.9574.0 true 02755496 2023-01-01 2023-12-31 02755496 2023-12-31 02755496 core:ProvisionsDeferredTax 2023-12-31 02755496 core:RevaluationInvestmentPropertyDeferredTax 2023-12-31 02755496 core:RetainedEarningsAccumulatedLosses 2023-12-31 02755496 core:RevaluationReserve 2023-12-31 02755496 core:ShareCapital 2023-12-31 02755496 core:CurrentFinancialInstruments 2023-12-31 02755496 core:CurrentFinancialInstruments core:WithinOneYear 2023-12-31 02755496 core:Non-currentFinancialInstruments 2023-12-31 02755496 core:Non-currentFinancialInstruments core:AfterOneYear 2023-12-31 02755496 core:FurnitureFittingsToolsEquipment 2023-12-31 02755496 core:LandBuildings 2023-12-31 02755496 core:MotorVehicles 2023-12-31 02755496 1 2023-12-31 02755496 bus:SmallEntities 2023-01-01 2023-12-31 02755496 bus:AuditExemptWithAccountantsReport 2023-01-01 2023-12-31 02755496 bus:FullAccounts 2023-01-01 2023-12-31 02755496 bus:SmallCompaniesRegimeForAccounts 2023-01-01 2023-12-31 02755496 bus:RegisteredOffice 2023-01-01 2023-12-31 02755496 bus:CompanySecretary1 2023-01-01 2023-12-31 02755496 bus:Director1 2023-01-01 2023-12-31 02755496 bus:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 02755496 core:FurnitureFittingsToolsEquipment 2023-01-01 2023-12-31 02755496 core:LandBuildings 2023-01-01 2023-12-31 02755496 core:MotorVehicles 2023-01-01 2023-12-31 02755496 core:PlantMachinery 2023-01-01 2023-12-31 02755496 countries:EnglandWales 2023-01-01 2023-12-31 02755496 1 2023-01-01 2023-12-31 02755496 2022-12-31 02755496 core:FurnitureFittingsToolsEquipment 2022-12-31 02755496 core:LandBuildings 2022-12-31 02755496 core:MotorVehicles 2022-12-31 02755496 1 2022-12-31 02755496 2022-01-01 2022-12-31 02755496 2022-12-31 02755496 core:ProvisionsDeferredTax 2022-12-31 02755496 core:RevaluationInvestmentPropertyDeferredTax 2022-12-31 02755496 core:RetainedEarningsAccumulatedLosses 2022-12-31 02755496 core:RevaluationReserve 2022-12-31 02755496 core:ShareCapital 2022-12-31 02755496 core:CurrentFinancialInstruments 2022-12-31 02755496 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 02755496 core:Non-currentFinancialInstruments 2022-12-31 02755496 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 02755496 core:FurnitureFittingsToolsEquipment 2022-12-31 02755496 core:LandBuildings 2022-12-31 02755496 core:MotorVehicles 2022-12-31 02755496 1 2022-12-31 02755496 1 2022-01-01 2022-12-31 02755496 1 2021-12-31 iso4217:GBP xbrli:pure

Registration number: 02755496

Prepared for the registrar

Forest Farm & Garden Services Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2023

 

Forest Farm & Garden Services Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 11

 

Forest Farm & Garden Services Limited

Company Information

Director

P Grimes

Company secretary

K Grimes

Registered office

Wotton Farm Shop
Bradley Road
Wotton-Under-Edge
GL12 7DT

Accountants

Hazlewoods LLP
Staverton Court
Staverton
Cheltenham
GL51 0UX

 

Forest Farm & Garden Services Limited

(Registration number: 02755496)
Balance Sheet as at 31 December 2023

Note

2023
 £

2022
 £

Fixed assets

 

Tangible assets

4

234,107

243,248

Investment property

5

545,000

545,000

 

779,107

788,248

Current assets

 

Stocks

29,579

30,522

Debtors

6

8,775

53,929

Cash at bank and in hand

 

21,795

14,378

 

60,149

98,829

Creditors: Amounts falling due within one year

7

(197,334)

(216,643)

Net current liabilities

 

(137,185)

(117,814)

Total assets less current liabilities

 

641,922

670,434

Creditors: Amounts falling due after more than one year

7

(406,070)

(430,143)

Deferred tax liabilities

9

(66,122)

(67,720)

Net assets

 

169,730

172,571

Capital and reserves

 

Called up share capital

4

4

Revaluation reserve

171,581

171,581

Profit and loss account

(1,855)

986

Total equity

 

169,730

172,571

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 27 August 2024
 


P Grimes
Director

 

Forest Farm & Garden Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office and principal place of business is:
Wotton Farm Shop
Bradley Road
Wotton-Under-Edge
GL12 7DT

 

2

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

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 company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company 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 company's activities.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

 

Forest Farm & Garden Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge 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 company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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:

Asset class

Depreciation method and rate

Freehold land and buildings

Land - nil, buildings - 2% of cost per annum

Plant and machinery

15% of cost per annum

Motor vehicles

25% of cost per annum

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

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. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. 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.

 

Forest Farm & Garden Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company 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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

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 company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

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 company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company 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.

 

Forest Farm & Garden Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

Forest Farm & Garden Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

 

3

Staff numbers

The average number of persons employed by the company (including the director) during the year was as follows:

 

Forest Farm & Garden Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

 

4

Tangible assets

Freehold land and buildings
£

Plant and machinery
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

284,387

262,634

9,529

556,550

Additions

-

10,678

-

10,678

At 31 December 2023

284,387

273,312

9,529

567,228

Depreciation

At 1 January 2023

68,710

235,063

9,529

313,302

Charge for the year

5,118

14,701

-

19,819

At 31 December 2023

73,828

249,764

9,529

333,121

Carrying amount

At 31 December 2023

210,559

23,548

-

234,107

At 31 December 2022

215,677

27,571

-

243,248

 

Forest Farm & Garden Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

 

5

Investment properties

£

At 1 January 2023 and 31 December 2023

545,000

The director has used their knowledge and expertise of the market to ascertain the fair market value of the property. This class of assets has a current value of £545,000 (2022 - £545,000) and a carrying amount at historical cost of £316,225. The depreciation cost is £Nil.

 

6

Debtors

Note

2023
 £

2022
 £

Trade debtors

 

7,964

17,731

Amounts owed by related parties

10

-

35,636

Prepayments

 

811

562

   

8,775

53,929

 

7

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Bank loans

8

22,181

21,519

Trade creditors

 

69,180

61,205

Amounts due to related parties

10

44,026

77,286

Social security and other taxes

 

13,084

14,910

Outstanding defined contribution pension costs

 

380

589

Other creditors

 

6,434

2,772

Accrued expenses

 

3,865

3,899

Corporation tax liability

16,851

11,019

Bank overdrafts

 

20,640

19,227

HP liability

 

693

4,217

 

197,334

216,643

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

8

362,250

384,954

Deferred income

 

43,820

45,189

 

406,070

430,143

 

Forest Farm & Garden Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

 

8

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

22,181

21,519

Bank overdrafts

20,640

19,227

HP liability

693

4,217

43,514

44,963

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

362,250

384,954

The bank borrowings above are secured by a fixed charge over the freehold property of the company.

 

9

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Difference between accumulated depreciation and capital allowances

8,929

Deferred tax on the revaluation of investment property

57,193

66,122

2022

Liability
£

Difference between accumulated depreciation and capital allowances

10,526

Deferred tax on the revaluation of investment property

57,194

67,720

 

Forest Farm & Garden Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

 

10

Related party transactions

Transactions with the director

2023

At 1 January 2023
£

Advances to director
£

Repayments by director
£

At 31 December 2023
£

54,811

(48,602)

15,592

21,801

         
       

 

2022

At 1 January 2022
£

Advances to director
£

Repayments by director
£

At 31 December 2022
£

(2,825)

(36,254)

93,890

54,811

         
       

 

Summary of transactions with other related parties

During the year the company received £35,636 from a related party (2022 - loaned £6,556 to a related party). At the balance sheet date the amount due from the related party was £Nil (2022 - £35,636). This loan is interest free and repayable on demand.

During the year the company repaid £250 (2022 - £1,520) to a related party. At the balance sheet date the amount due to the related party was £22,225 (2022 - £22,475). This loan is interest free and repayable on demand.