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REGISTERED NUMBER: 01597594 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

HAYES GARDENWORLD LIMITED

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Income Statement 7

Other Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 14


HAYES GARDENWORLD LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: D Klein
K D Laird



REGISTERED OFFICE: Calluna House
Lake Road
Ambleside
Cumbria
LA22 0DW



REGISTERED NUMBER: 01597594 (England and Wales)



AUDITORS: Wallwork Nelson & Johnson
Chartered Accountants & Statutory Auditors
Chandler House
7 Ferry Road Office Park
Riversway
PRESTON
Lancashire
PR2 2YH



SOLICITORS: Squire Patton Boggs (UK) LLP
No 1 Spinningfields
1 Hardman Square
Manchester
M3 3EB

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

RESULTS
The garden centre industry experienced a two-year boom during the peak years of the coronavirus pandemic (2020 and 2021). Retailers experienced significantly higher, almost unprecedented demand for garden furniture that supply could not keep up with. The sector was also able to take advantage of the furlough scheme, particularly during the traditionally quieter winter months, as well as the rates relief given to retail businesses during this period.

However, the ending of the furlough scheme, as well as a reduction in rates relief from April 2022, coincided with a glut of supply in the garden furniture market. As a result, online price competition became fierce and margins squeezed as many businesses, which has bought to meet demand anticipated to continue at the level of the previous two years, were forced to reduce prices in order to turn stock back into cash in 2022.

This trend in sales was expected to improve in 2023. Budgets prepared by the directors and senior managers on what was considered a prudent basis in early 2023 proved too optimistic. This necessitated restructure of the company's internet division and, later in the year, a refinance of its debt structure.

The directors took additional steps to deal with the market circumstances it was facing. A financial interim was appointed in 2023, to aid in the implementation of the strategy outlined above. Budgets for 2024 and 2025 have been prepared by the management team, reviewed by the financial interim and accepted by the company's stakeholders including the new lenders, the refinance was completed in February 2024. These budgets indicate showing a return to profitability in 2025, following a significant reduction in losses in 2024.

REVIEW OF BUSINESS
The principal activity of the company continues to be that of a garden centre. The company retails a wide range of products including plants, garden furniture and BBQ's, gifts, clothing, Christmas products and garden care items, as well as operating an onsite catering facility. The company also operates online, primarily retailing garden furniture, BBQ's and Christmas trees.

The company is committed to making as many environmental savings as possible. This is evidenced by the use of company vehicles to bring staff into work, reducing the number of vehicles on the road, alongside the harvesting of rain water which is then used by the company for things such as watering plants.

The company shows a commitment to local charities with numerous collection points around the garden centre and staff undertaking various events to raise money for charity.

PRINCIPAL RISKS AND UNCERTAINTIES
The company remains in a strong financial position however the general economic climate within the United Kingdom continues to pose a threat to the company due to the restricted level of people's disposable income. The performance of the company will always be subject to the vagaries of the weather in the United Kingdom.

ON BEHALF OF THE BOARD:





D Klein - Director


16 September 2024

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

D Klein
K D Laird

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





D Klein - Director


16 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAYES GARDENWORLD LIMITED

Opinion
We have audited the financial statements of Hayes Gardenworld Limited (the 'company') for the year ended 31 December 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAYES GARDENWORLD LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

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

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Enquiry of management and those charged with governance around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and
regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing financial statement disclosures and testing to support documentation to assess compliance with
applicable laws and regulations.
- Auditing the risk of management override of controls and evaluating the business rationale of significant
transactions outside the normal course of business.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
HAYES GARDENWORLD 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 a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Paul Woodburn FCA (Senior Statutory Auditor)
for and on behalf of Wallwork Nelson & Johnson
Chartered Accountants & Statutory Auditors
Chandler House
7 Ferry Road Office Park
Riversway
PRESTON
Lancashire
PR2 2YH

16 September 2024

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

31/12/23 31/12/22
Notes £    £   

TURNOVER 12,700,036 17,176,319

Cost of sales 9,905,536 14,219,219
GROSS PROFIT 2,794,500 2,957,100

Administrative expenses 4,923,281 4,834,321
(2,128,781 ) (1,877,221 )

Other operating income 264,015 262,910
OPERATING LOSS 4 (1,864,766 ) (1,614,311 )


Interest payable and similar expenses 5 210,341 17,330
LOSS BEFORE TAXATION (2,075,107 ) (1,631,641 )

Tax on loss 6 (410,109 ) (464,576 )
LOSS FOR THE FINANCIAL YEAR (1,664,998 ) (1,167,065 )

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

31/12/23 31/12/22
Notes £    £   

LOSS FOR THE YEAR (1,664,998 ) (1,167,065 )


OTHER COMPREHENSIVE INCOME
Revaluation of fixed assets 1,152,964 -
Income tax relating to other comprehensive
income

(288,241

)

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

864,723

-
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(800,275

)

(1,167,065

)

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

BALANCE SHEET
31 DECEMBER 2023

31/12/23 31/12/22
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 10,205,125 9,448,792

CURRENT ASSETS
Stocks 9 2,147,185 4,692,500
Debtors 10 446,440 303,260
Cash at bank and in hand 48,504 218,020
2,642,129 5,213,780
CREDITORS
Amounts falling due within one year 11 4,359,633 5,564,672
NET CURRENT LIABILITIES (1,717,504 ) (350,892 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,487,621

9,097,900

CREDITORS
Amounts falling due after more than one
year

12

373,329

183,333
NET ASSETS 8,114,292 8,914,567

CAPITAL AND RESERVES
Called up share capital 17 1,013,356 1,013,356
Revaluation reserve 18 1,378,174 513,451
Retained earnings 18 5,722,762 7,387,760
SHAREHOLDERS' FUNDS 8,114,292 8,914,567

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by:




D Klein - Director



K D Laird - Director


HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 January 2022 1,013,356 8,558,825 513,451 10,085,632

Changes in equity
Dividends - (4,000 ) - (4,000 )
Total comprehensive income - (1,167,065 ) - (1,167,065 )
Balance at 31 December 2022 1,013,356 7,387,760 513,451 8,914,567

Changes in equity
Total comprehensive income - (1,664,998 ) 864,723 (800,275 )
Balance at 31 December 2023 1,013,356 5,722,762 1,378,174 8,114,292

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

31/12/23 31/12/22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (690,952 ) (625,635 )
Interest paid (209,752 ) (15,642 )
Interest element of hire purchase payments
paid

(589

)

(1,688

)
Net cash from operating activities (901,293 ) (642,965 )

Cash flows from investing activities
Purchase of tangible fixed assets (85,336 ) (309,192 )
Sale of tangible fixed assets 375 4,151
Net cash from investing activities (84,961 ) (305,041 )

Cash flows from financing activities
New loans in year 1,047,350 -
Loan repayments in year - (16,666 )
Capital repayments in year (3,443 ) (18,813 )
Equity dividends paid - (4,000 )
Net cash from financing activities 1,043,907 (39,479 )

Increase/(decrease) in cash and cash equivalents 57,653 (987,485 )
Cash and cash equivalents at beginning of
year

2

(509,608

)

477,877

Cash and cash equivalents at end of year 2 (451,955 ) (509,608 )

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
31/12/23 31/12/22
£    £   
Loss before taxation (2,075,107 ) (1,631,641 )
Depreciation charges 258,209 237,864
Loss/(profit) on disposal of fixed assets 223,383 (463 )
Finance costs 210,341 17,330
(1,383,174 ) (1,376,910 )
Decrease/(increase) in stocks 2,545,315 (2,037,500 )
Increase in trade and other debtors (21,312 ) (791 )
(Decrease)/increase in trade and other creditors (1,831,781 ) 2,789,566
Cash generated from operations (690,952 ) (625,635 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 48,504 218,020
Bank overdrafts (500,459 ) (727,628 )
(451,955 ) (509,608 )
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 218,020 477,877
Bank overdrafts (727,628 ) -
(509,608 ) 477,877


HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

3. ANALYSIS OF CHANGES IN NET DEBT

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 218,020 (169,516 ) 48,504
Bank overdrafts (727,628 ) 227,169 (500,459 )
(509,608 ) 57,653 (451,955 )
Debt
Finance leases (3,443 ) 3,443 -
Debts falling due within 1 year (50,000 ) (857,354 ) (907,354 )
Debts falling due after 1 year (183,333 ) (189,996 ) (373,329 )
(236,776 ) (1,043,907 ) (1,280,683 )
Total (746,384 ) (986,254 ) (1,732,638 )

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

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

1. STATUTORY INFORMATION

Hayes Gardenworld 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

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover
Turnover is the amount derived from goods supplied during the year, and is stated after trade discounts and net of VAT.

Tangible fixed assets
Tangible fixed assets were originally included at cost.

Depreciation is provided at the following rates in order to write off each asset over its estimated useful life.

Freehold land-No depreciation is charged on freehold land.
Freehold buildings-No depreciation has been charged on freehold buildings, on the grounds
that it would be immaterial.
Plant and machinery-15% reducing balance.
Motor vehicles-25% reducing balance.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

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

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments
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 in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the profit and loss account.

Hire purchase and leasing commitments
Rentals payable under operating leases are charged in the profit and loss account on a straight line basis over the lease term.

Going concern
The use of the going concern basis of accounting is appropriate due to the ongoing support of the company's bankers and because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern.

3. EMPLOYEES AND DIRECTORS
31/12/23 31/12/22
£    £   
Wages and salaries 2,484,543 2,491,342
Social security costs 191,627 198,064
Other pension costs 65,417 64,412
2,741,587 2,753,818

The average number of employees during the year was as follows:
31/12/23 31/12/22

Directors 2 2
Administration and support 10 10
Direct staff 102 102
114 114

31/12/23 31/12/22
£    £   
Directors' remuneration 120,000 119,750
Directors' pension contributions to money purchase schemes 8,500 8,492

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

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

4. OPERATING LOSS

The operating loss is stated after charging/(crediting):

31/12/23 31/12/22
£    £   
Depreciation - owned assets 258,209 235,093
Depreciation - assets on hire purchase contracts - 2,772
Loss/(profit) on disposal of fixed assets 223,383 (463 )
Auditor's remuneration - The
audit of the company's annual
accounts 7,140 7,705
Operating Leases - other assets 316,975 395,350
Auditors remuneration - accountancy services 2,000 2,000

5. INTEREST PAYABLE AND SIMILAR EXPENSES
31/12/23 31/12/22
£    £   
Bank interest payable 79,419 10,447
Bank loan interest payable 130,333 5,195
Hire purchase interest 589 1,688
210,341 17,330

6. TAXATION

Analysis of the tax credit
The tax credit on the loss for the year was as follows:
31/12/23 31/12/22
£    £   
Current tax:
UK corporation tax - (124,806 )

Deferred tax
Origination and reversal of
timing differences (410,109 ) (339,770 )
Tax on loss (410,109 ) (464,576 )

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

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

6. TAXATION - continued

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31/12/23 31/12/22
£    £   
Loss before tax (2,075,107 ) (1,631,641 )
Loss multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

(518,777

)

(310,012

)

Effects of:
Expenses not deductible for tax purposes - 1,589
Utilisation of tax losses - (124,806 )
Adjustments to tax charge in respect of previous periods - (31,347 )
Deferred tax 108,668 -
Total tax credit (410,109 ) (464,576 )

Tax effects relating to effects of other comprehensive income

31/12/23
Gross Tax Net
£    £    £   
Revaluation of fixed assets 1,152,964 (288,241 ) 864,723

7. DIVIDENDS
31/12/23 31/12/22
£    £   
Interim - 4,000

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

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

8. TANGIBLE FIXED ASSETS
Freehold
land and Plant and Motor
buildings machinery vehicles Totals
£    £    £    £   
COST OR VALUATION
At 1 January 2023 8,332,036 3,640,928 469,184 12,442,148
Additions - 85,336 - 85,336
Disposals - (1,387,350 ) (102,374 ) (1,489,724 )
Revaluations 1,152,964 - - 1,152,964
At 31 December 2023 9,485,000 2,338,914 366,810 12,190,724
DEPRECIATION
At 1 January 2023 - 2,658,756 334,600 2,993,356
Charge for year - 215,814 42,395 258,209
Eliminated on disposal - (1,176,781 ) (89,185 ) (1,265,966 )
At 31 December 2023 - 1,697,789 287,810 1,985,599
NET BOOK VALUE
At 31 December 2023 9,485,000 641,125 79,000 10,205,125
At 31 December 2022 8,332,036 982,172 134,584 9,448,792

Cost or valuation at 31 December 2023 is represented by:

Freehold
land and Plant and Motor
buildings machinery vehicles Totals
£    £    £    £   
Valuation in 2018 62,145 - - 62,145
Valuation in 2020 830,000 50,000 - 880,000
Valuation in 2021 (322,743 ) - - (322,743 )
Valuation in 2023 1,152,964 - - 1,152,964
Cost 7,762,634 2,288,914 366,810 10,418,358
9,485,000 2,338,914 366,810 12,190,724

If Freehold Land and Buildings had not been revalued they would have been included at the following historical cost:

31/12/23 31/12/22
£    £   
Cost 7,750,598 7,750,598
Aggregate depreciation 2,668,556 2,668,556

Freehold land and buildings were valued on an open market basis. The Furmanite Warehouse was valued on 1 March 2023 by Hyde Harrington Chartered Surveyors. The Ambleside site was valued on 1 February 2024 by Lambert Smith Hampton - Commercial Real Estate Consultants.

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

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

8. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST OR VALUATION
At 1 January 2023 17,365
Transfer to ownership (17,365 )
At 31 December 2023 -
DEPRECIATION
At 1 January 2023 10,901
Transfer to ownership (10,901 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 6,464

9. STOCKS
31/12/23 31/12/22
£    £   
Finished goods 2,147,185 4,692,500

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/23 31/12/22
£    £   
Trade debtors 11,055 13,452
Other debtors 13,562 15,703
Deferred tax asset 191,922 70,054
Prepayments and accrued income 229,901 204,051
446,440 303,260

Deferred tax asset
31/12/23 31/12/22
£    £   
Accelerated capital allowances (112,833 ) (257,141 )
Tax losses carried forward 698,858 433,057
Other timing differences (394,103 ) (105,862 )
191,922 70,054

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

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

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/12/23 31/12/22
£    £   
Bank loans and overdrafts (see note 13) 1,407,813 777,628
Hire purchase contracts (see note 14) - 3,443
Trade creditors 2,369,437 3,618,514
Corporation tax 168,600 168,600
Other taxes and social
security 59,405 107,537
VAT 275,831 819,124
Other creditors 6,666 8,630
Accruals and deferred income 71,881 61,196
4,359,633 5,564,672

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31/12/23 31/12/22
£    £   
Bank loans (see note 13) 373,329 183,333

13. LOANS

An analysis of the maturity of loans is given below:

31/12/23 31/12/22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 500,459 727,628
Bank loans 907,354 50,000
1,407,813 777,628

Amounts falling due between one and two years:
Bank loans 373,329 183,333

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31/12/23 31/12/22
£    £   
Net obligations repayable:
Within one year - 3,443

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

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

14. LEASING AGREEMENTS - continued

Non-cancellable operating leases
31/12/23 31/12/22
£    £   
Within one year 216,595 308,736
Between one and five years 161,535 757,679
378,130 1,066,415

15. SECURED DEBTS

The following secured debts are included within creditors:

31/12/23 31/12/22
£    £   
Bank overdrafts 500,459 727,628
Bank loans 1,280,683 233,333
1,781,142 960,961

Following the refinancing referred to in the strategic report, the bank overdraft and bank loan are now secured by way of a debenture over all the companys' assets dated 28 February 2024 in favour of Together Commercial Finance Limited and a charge dated 18 December 2023 in favour of The Trustees of L&K Investments Pension Scheme.

16. DEFERRED TAX
£   
Balance at 1 January 2023 (70,054 )
Tax losses arising in the year (265,801 )
Accelerated capital allowances (144,308 )
Revaluation reserve 288,241
Balance at 31 December 2023 (191,922 )

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/12/23 31/12/22
value: £    £   
1,013,356 Ordinary 1 1,013,356 1,013,356

18. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 January 2023 7,387,760 513,451 7,901,211
Deficit for the year (1,664,998 ) (1,664,998 )
Revaluation of Freehold - 864,723 864,723
At 31 December 2023 5,722,762 1,378,174 7,100,936

HAYES GARDENWORLD LIMITED (REGISTERED NUMBER: 01597594)

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

19. ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are the directors, together with Mr M Capell and Mr T R Hayes, by way of their shareholdings.

20. DEFINED CONTRIBUTION PENSION SCHEME

The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £65,417 (2022 - £64,912).