Oaktree Garden Centre Online Limited Cover |
Company No. 08453694 | |||||||||
Oaktree Garden Centre Online Limited Contents |
Pages | |||||||||
Company Information | 2 | ||||||||
Strategic Report | 3 to 4 | ||||||||
Directors' Report | 5 | ||||||||
Auditor's Report | 6 to 9 | ||||||||
Statement of Comprehensive Income | 10 | ||||||||
Statement of Financial Position | 11 | ||||||||
Statement of Changes in Equity | 12 | ||||||||
Statement of Cash Flows | 13 | ||||||||
Notes to the Financial Statements | 14 to 25 | ||||||||
Oaktree Garden Centre Online Limited Company Information |
Directors | |||||||||
Registered Office | |||||||||
Auditor | |||||||||
Ebenezer House | |||||||||
5A Poole Road | |||||||||
Bournemouth | |||||||||
Dorset | |||||||||
BH2 5QJ |
Oaktree Garden Centre Online Limited Strategic Report |
The Directors present their strategic report for the year ended 31 January 2024. | |||||||
Business review | |||||||
The loss before taxation for the period was £374,616 compared with the previous years loss of £628,631. Gross margins for the year were 39% compared with 31% in the previous year. The overall turnover of the garden centre and the cafe decreased by 17%. | |||||||
The financial year to 31 January 2024 was a difficult year. However, there is now no longer the additional costs and delays in importing goods from the Far East during the Covid period, resulting in much improved gross profit margins. | |||||||
Being a family run business, the company is able to adapt very quickly and going forward the company is looking further into sourcing its own brand of products to maximise profit margins. The company is always looking at initiatives to increase footfall within the garden centre and also to expand its online capabilities. | |||||||
Financial and other key performance indicators: | |||||||
The following have been identiifed as key performance indicators. | |||||||
The company's key performance indicators during the year were as follows: | |||||||
Key financial performance indicators: | Unit | 2024 | 2023 | ||||
1 | (Decrease)/increase in turnover | % | (17) | 3 | |||
2 | Gross margin | % | 39 | 31 | |||
3 | Operating margin | % | (4) | (9) | |||
Principal risks and uncertainties | |||||||
1 | Whilst our capacity to influence external risks is limited, we recognise the importance of being able to react and adapt to a changing environment. Being aware of and working to mitigate any risk is key. | ||||||
2 | The principal external risks identified are volatility in foreign exchange rates which could impact on the buying cost of stock and a significant increase in interest rates which would effect our customers spending power. The level of consumer spending along with the stregth of the economy in general is also a risk with the current uncertainties surrounding the cost of living crisis. | ||||||
3 | The most important internal risks include the loss of key staff and changes affecting our suppliers and their ability to supply us with the right stock at the right time. In these and other risks the Board have established mitigating controls which are reviewed regularly. | ||||||
4 | The company is exposed to a variety of financial risks that include the effects of changes in price risk, liquidity risk and interest rate risk. These policies, set by the directors, are implemented by the company`s directors. The company is exposed to price risk due to normal inflationary increases in the purchases price of goods and services. The company has no exposure to equity securities price risk as it holds no listed or other equity investments. The company maintains a mixture of long term and short term debt finance that is designed to ensure the company has sufficient funds available for operations. The company has interest bearing liabilities that vary with bank base rates. The company regularly reviews interest rate expectations and may hedge this risk if appropriate. | ||||||
Signed on behalf of the board | |||||||
P. Went | |||||||
Director | |||||||
29 October 2024 |
Oaktree Garden Centre Online Limited Directors Report |
The Directors present their report and the financial statements for the year ended 31 January 2024. | |||||||||
Principal activities | |||||||||
Directors | |||||||||
The Directors who served at any time during the year were as follows: | |||||||||
Statement of directors' responsibilities | |||||||||
The Directors are responsible for preparing the Directors' report and the accounts in accordance with applicable law and regulations. | |||||||||
Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts 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 accounts 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 accounts, the directors are required to: | |||||||||
* | select suitable accounting policies and then apply them consistently; | ||||||||
* | make judgements and 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 statments; 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 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 of disclosure of information to auditor | |||||||||
Signed on behalf of the board | |||||||||
P. Went | |||||||||
Director | |||||||||
29 October 2024 |
Oaktree Garden Centre Online Limited Audit Report Unqualified |
Independent Auditor's Report to the members of Oaktree Garden Centre Online Limited | |||||||||
Opinion | |||||||||
We have audited the financial statements of Oaktree Garden Centre Online Limited (the 'company') for the year ended 31 January 2024 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the Notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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: | |||||||||
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’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. | |||||||||
Conclusions relating to going concern | |||||||||
We draw your attention to the going concern policy in Note 2 of the financial statements, which indicates the company`s current liabilities exceed its current assets by £1,013,006. As stated in note 2 these events or conditions along with other matters as set forth in note 2 indicate that a material uncertainty exists that may cast doubt on the company`s ability to continue as a going concern. | |||||||||
Our opinion is not modified in respect of this matter. | |||||||||
In auditing the financial statements, we have concluded that the directors` use of the going concern basis of accounting in the preparation of the statements is appropriate. | |||||||||
Our responsibilities and the responsibillities of the directors with respect to going concern are described in the relevant sections of this report. | |||||||||
Other information | |||||||||
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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. | |||||||||
Opinion on other matters prescribed by the Companies Act 2006 | |||||||||
In our opinion, based upon the work undertaken in the course of the audit: | |||||||||
• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the strategic report and the directors' report have been prepared in accordance with applicable legal requirements. | |||||||||
Matters on which we are required to report by exception | |||||||||
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. | |||||||||
• 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 | |||||||||
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. | |||||||||
Auditor's responsibilities for the audit of the financial statements | |||||||||
Our objectives are to obtain reasonable assurance about whether the accounts 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. | |||||||||
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: | |||||||||
• We determined that the laws and regulations which are directly relevant to the financial statements are those that relate to the reporting framework Financial Reporting Standard 102 and the relevant tax compliance regulations in the jurisdictions in which the Company operates. We evaluated the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. | |||||||||
• In addition, there are other significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements being those laws and regulations. For these laws and regulations, the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through withdrawal of trading licences or regulatory approval of products, fines or litigation being imposed. As required by the auditing standards, auditing procedures in respect of non-compliance with these identified laws and regulations are limited to enquiry of the Directors and other management and inspection of regulatory and legal correspondence, if any. | |||||||||
• We assessed the susceptibility of the Company`s financial statements to material misstatement, including how fraud might occur, by meeting with a number of individuals, including with individuals outside of the finance function, and conducted interviews to understand where they considered there was susceptibility to fraud. We evaluated management`s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to areas of estimate and judgement on the financial statements. | |||||||||
• Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations and fraud risks identified in the paragraphs above. In addition to the audit procedures, we remained alert to any indications of non-compliance throughout the audit. The specific audit procedures performed included. - Review of Board minutes; - Review of large and unusual bank statement; - Walkthrough tests on the key accounting systems and observing the key controls; - Enquiries of staff as to examples of management override of controls; - Conversations with management and review of legal fees incurred by the company; - Identification of related parties and analytics on the company`s data to ensure that all related party transactions have been identified and are bona fide; - Identifying and testing journal controls. | |||||||||
There are inherent limitations of an audit. There is a higher risk that irregularities, including fraud, will not be detected during an audit as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. The primary responsibility for the prevention and detection of non-compliance with all laws and regulations and fraud lies with both those charged with governance of the entity and management. | |||||||||
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 the auditors report. | |||||||||
Use of this 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 auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. | |||||||||
Senior Statutory Auditor | |||||||||
For and on behalf of | |||||||||
Accountants and Statutory Auditors | |||||||||
Ebenezer House | |||||||||
5A Poole Road | |||||||||
Bournemouth | |||||||||
Dorset | |||||||||
BH2 5QJ | |||||||||
Oaktree Garden Centre Online Limited Statement of Comprehensive Income |
for the year ended 31 January 2024 | |||||||||||
Notes | 2024 | 2023 | |||||||||
£ | £ | ||||||||||
Revenue | 4 | ||||||||||
Cost of sales | ( | ( | |||||||||
Gross profit | |||||||||||
Distribution costs and selling expenses | ( | ( | |||||||||
Administrative expenses | ( | ( | |||||||||
Other operating income | |||||||||||
Operating loss | 5 | ( | ( | ||||||||
Interest payable and similar charges | 8 | ( | ( | ||||||||
Loss on ordinary activities before taxation | ( | ( | |||||||||
Taxation | 9 | ||||||||||
Loss for the financial year after taxation | ( | ( | |||||||||
Other comprehensive income | - | - | |||||||||
Total comprehensive income/(loss) | ( | ( | |||||||||
Oaktree Garden Centre Online Limited Statement of Financial Position |
at | ||||||||||
Company No. | Notes | 2024 | 2023 | |||||||
£ | £ | |||||||||
Fixed assets | ||||||||||
Intangible assets | 10 | |||||||||
Tangible assets | 11 | |||||||||
Current assets | ||||||||||
Stocks | 12 | |||||||||
Debtors | 13 | |||||||||
Cash at bank and in hand | ||||||||||
Creditors: Amount falling due within one year | 14 | ( | ( | |||||||
Net current liabilities | ( | ( | ||||||||
Total assets less current liabilities | ||||||||||
Creditors: Amounts falling due after more than one year | 15 | ( | ( | |||||||
Net liabilities | ( | ( | ||||||||
Capital and reserves | ||||||||||
Called up share capital | 17 | |||||||||
Profit and loss account | 18 | ( | ( | |||||||
Total equity | ( | ( | ||||||||
Approved by the board on 29 October 2024 and signed on its behalf by: | ||||||||||
P. Went | ||||||||||
Director | ||||||||||
29 October 2024 |
Oaktree Garden Centre Online Limited Statement of Changes in Equity |
for the year ended 31 January 2024 | ||||||||||||
Share Capital | Retained earnings | Total equity | ||||||||||
£ | £ | £ | ||||||||||
At 1 February 2022 | 100 | (228,203) | (228,103) | |||||||||
Loss for the period | ( | (628,631) | ||||||||||
At 31 January 2023 and 1 February 2023 | ( | ( | ||||||||||
Loss for the period | ( | ( | ||||||||||
At 31 January 2024 | ( | ( | ||||||||||
Oaktree Garden Centre Online Limited Statement of Cash Flows |
for the year ended 31 January 2024 | ||||||
2024 | 2023 | |||||
£ | £ | |||||
Cash flows from operating activities | ||||||
Operating loss | (203,622) | (523,389) | ||||
Adjustments for: | ||||||
Depreciation of property, plant and equipment | 184,157 | 203,979 | ||||
Amortisation of intangible assets | 12,000 | 12,000 | ||||
Profit on disposal of tangible fixed assets | - | (3,103) | ||||
Decrease in stocks | 878,735 | 206,292 | ||||
Decrease/(Increase) in trade and other receivables | 1,290,403 | (1,290,798) | ||||
(Decrease)/Increase in trade and other payables | (1,651,424) | 1,502,105 | ||||
Net cash generated from operations | 510,249 | 107,086 | ||||
Interest paid | ( | ( | ||||
Income taxes paid | ||||||
Net cash generated from operating activities | ||||||
Cash flows from investing activities | ||||||
Payments for property, plant and equipment | ( | ( | ||||
Net cash used in investing activities | ( | ( | ||||
Cash flows from financing activities | ||||||
Repayment of borrowings | ( | ( | ||||
Repayments of obligations under finance lease and hire purchase contracts | ( | ( | ||||
Net cash used in financing activities | ( | ( | ||||
Net increase/(decrease) in cash and cash equivalents | ( | |||||
Cash and cash equivalents at the beginning of the year | (806,975) | (557,938) | ||||
Cash and cash equivalents at the end of the year | (619,730) | (806,975) | ||||
Components of cash and cash equivalents | ||||||
Cash and bank balances | ||||||
Bank overdraft | ( | ( | ||||
(619,730) | (806,975) | |||||
Oaktree Garden Centre Online Limited Notes to the Financial Statements |
for the year ended 31 January 2024 | ||||||||||||||||
1 | General information | |||||||||||||||
Oaktree Garden Centre Online Limited is a private company limited by shares and incorporated in England and Wales. | ||||||||||||||||
Its registered number is: 08453694 | ||||||||||||||||
Its registered office is: | Its trading address is: | |||||||||||||||
Oaktree Garden Centre | ||||||||||||||||
Bracknell Road | ||||||||||||||||
Warfield | ||||||||||||||||
Bracknell | ||||||||||||||||
RG42 6LH | ||||||||||||||||
The functional and presentational currency of the company is Sterling. The accounts are rounded to the nearest pound. | ||||||||||||||||
1 | ||||||||||||||||
2 | Accounting policies | |||||||||||||||
Revenue recognition | ||||||||||||||||
Revenue from the sale of goods is recognised when all the following conditions are satisfied: • the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; • the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; • the amount of revenue can be measured reliably; • it is probable that the economic benefits associated with the transaction will flow to the Company; and • the costs incurred or to be incurred in respect of the transaction can be measured reliably. Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is passed. | ||||||||||||||||
Borrowing costs | ||||||||||||||||
Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred. | ||||||||||||||||
Going concern | ||||||||||||||||
Although net current liabilities exceeded current assets by £1,013,006, amounts due within one year include £2,510,934 due to one of the directors and he has confirmed that he will only seek repayment when the company has sufficient funds. The company has been supported with funding arrangements from the company bankers and anticipate that this arrangement will continue. The directors feel that there is sufficient funding available to allow the company to continue trading for the forseeable future. | ||||||||||||||||
Taxation | ||||||||||||||||
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period. Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences Deferred tax assets are generally recognised for all deductible timing differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively. | ||||||||||||||||
Intangible assets | ||||||||||||||||
Goodwill | ||||||||||||||||
Tangible fixed assets and depreciation | ||||||||||||||||
Assets held under finance leases are depreciated in the same manner as owned assets. At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. | ||||||||||||||||
Leasehold land and buildings | ||||||||||||||||
Motor vehicles | ||||||||||||||||
Furniture, fittings and equipment | ||||||||||||||||
Stocks | ||||||||||||||||
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs. | ||||||||||||||||
Trade and other debtors | ||||||||||||||||
Financial instruments | ||||||||||||||||
The Company only enters into basic financial instruments that result in the recognition of financial assets and liabilities such as trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. | ||||||||||||||||
Trade and other creditors | ||||||||||||||||
Finance costs | ||||||||||||||||
Interest bearing borrowings | ||||||||||||||||
Interest-bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the statement of comprehensive income over the period of the borrowings, together with any interest and fees payable, using the effective interest method. | ||||||||||||||||
Related parties | ||||||||||||||||
For the purposes of these financial statements, a party is considered to be related to the Company if: • the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the Company; • the Company and the party are subject to common control; • the party is an associate of the Company or a joint venture in which the Company is a venturer; • the party is a member of key management personnel of the Company or the Company’s parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; • the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or • the party is a post-employment benefit plan which is for the benefit of employees of the Company or of any entity that is a related party of the Company. Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. | ||||||||||||||||
Foreign currencies | ||||||||||||||||
Leased assets | ||||||||||||||||
Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases. Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs (see the accounting policy above). Contingent rentals are recognised as expenses in the periods in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. | ||||||||||||||||
Defined contribution pensions | ||||||||||||||||
The contributions are recognised as an expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. | ||||||||||||||||
Provisions | ||||||||||||||||
Provisions are charged as an expense to the Income Statement in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial position. | ||||||||||||||||
3 | Critical accounting judgements and key sources of estimation uncertainty | |||||||||||||||
The company establishes a reliable estimate of the useful life of tangible and intangible fixed assets. The carrying amounts are £1,608,682 for tangible fixed assets and £35,000 for intangible fixed assets. | ||||||||||||||||
A full stock inventory was undertaken as at 31 January 2024. The company calculates an amount for carriage and transport surcharges on the year end stock of goods held. The company consider a provision for any damaged or obsolete stocks. The carrying amount of stock of goods is £2,409,367 (see note 12). | ||||||||||||||||
The company establishes a reliable estimate of recharging overheads to the Nursery, operating from the same premises. Amounts recharged to the Nursery in the period were £439,514 (see note 20). | ||||||||||||||||
4 | Revenue Analysis | |||||||||||||||
Revenue, analysed geographically between markets, was as follows: | 2024 | 2023 | ||||||||||||||
£ | £ | |||||||||||||||
United Kingdom | ||||||||||||||||
Revenue, analysed by category, was as follows: | 2024 | 2023 | ||||||||||||||
£ | £ | |||||||||||||||
Sales of goods | ||||||||||||||||
Cafe sales | ||||||||||||||||
5 | Operating Loss | |||||||||||||||
2024 | 2023 | |||||||||||||||
This is stated after charging: | £ | £ | ||||||||||||||
Depreciation of owned fixed assets | ||||||||||||||||
Amortisation of intangible fixed assets | ||||||||||||||||
Auditors' remuneration for: | ||||||||||||||||
Audit of the company's annual accounts | ||||||||||||||||
6 | Staff costs | |||||||||||||||
2024 | 2023 | |||||||||||||||
Staff costs during the year (including directors) were as follows: | £ | £ | ||||||||||||||
Wages and salaries | ||||||||||||||||
Other pension costs | ||||||||||||||||
Total in company | 1,279,763 | 1 | 1,359,027 | |||||||||||||
- | - | |||||||||||||||
The average monthly number of employees (including directors) during the year was: | Number | Number | ||||||||||||||
Administration | ||||||||||||||||
Production | ||||||||||||||||
Tills | ||||||||||||||||
Sales and marketing | ||||||||||||||||
Total in company | ||||||||||||||||
7 | Directors' remuneration | |||||||||||||||
2024 | 2023 | |||||||||||||||
Remuneration included within staff costs - Note 6 - in respect of directors was as follows: | £ | £ | ||||||||||||||
Aggregate remuneration in respect of qualifying services | ||||||||||||||||
Total remuneration | 1 | |||||||||||||||
Number | ||||||||||||||||
Defined contribution pension schemes | ||||||||||||||||
The amounts of aggregate remuneration in respect of directors set out above include remuneration in respect of the highest paid director as follows: | £ | £ | ||||||||||||||
Remuneration in respect of qualifying services | ||||||||||||||||
Company contributions to defined benefit pension schemes | ||||||||||||||||
8 | Interest payable and similar charges | |||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
Bank loan and overdraft interest payable | ||||||||||||||||
HP interest | 1,125 | 1,769 | ||||||||||||||
9 | Taxation | |||||||||||||||
(a) Tax on profit on ordinary activities | 2024 | |||||||||||||||
The tax charge is made up as follows: | £ | |||||||||||||||
UK corporation tax | ||||||||||||||||
Credit for the period | ( | |||||||||||||||
Total corporation tax | ( | |||||||||||||||
Tax on profit on ordinary activities | ( | |||||||||||||||
(b) Factors affecting the total tax charge for the period | ||||||||||||||||
The tax assessed for the year is higher than the standard rate of corporation tax in the UK of 24% (2023: 19%). The differences are reconciled below: | ||||||||||||||||
Higher | 2024 | 2023 | ||||||||||||||
72977 | £ | £ | ||||||||||||||
Profit on ordinary activities before tax | ( | ( | ||||||||||||||
Standard rate of corporation tax in the United Kingdom | ||||||||||||||||
Profit on ordinary activities multiplied by standard rate of corporation tax in the United Kingdom | ( | ( | ||||||||||||||
Expenses not deductible for tax purposes | ||||||||||||||||
Utilisation of tax losses | ||||||||||||||||
Capital allowances | ( | ( | ||||||||||||||
Tax on profit on ordinary activities | ( | |||||||||||||||
10 | Intangible fixed assets | |||||||||||||||
Goodwill | Total | |||||||||||||||
£ | £ | |||||||||||||||
Cost | ||||||||||||||||
At 1 February 2023 | ||||||||||||||||
At 31 January 2024 | ||||||||||||||||
Amortisation and impairment | ||||||||||||||||
At 1 February 2023 | ||||||||||||||||
Charge for the year | ||||||||||||||||
At 31 January 2024 | ||||||||||||||||
Net book values | ||||||||||||||||
At 31 January 2024 | ||||||||||||||||
At 31 January 2023 | ||||||||||||||||
11 | Tangible fixed assets | |||||||||||||||
Land and buildings | Motor vehicles | Fixtures, fittings and equipment | Total | |||||||||||||
£ | £ | £ | £ | |||||||||||||
Cost or revaluation | ||||||||||||||||
At 1 February 2023 | ||||||||||||||||
Additions | ||||||||||||||||
At 31 January 2024 | ||||||||||||||||
Depreciation and impairment | ||||||||||||||||
At 1 February 2023 | ||||||||||||||||
Charge for the year | ||||||||||||||||
At 31 January 2024 | ||||||||||||||||
Net book values | ||||||||||||||||
At 31 January 2024 | ||||||||||||||||
At 31 January 2023 | ||||||||||||||||
12 | Stocks | |||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
Raw materials and consumables | ||||||||||||||||
Work in progress | ||||||||||||||||
13 | Debtors | |||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
VAT recoverable | ||||||||||||||||
Other debtors | ||||||||||||||||
Prepayments and accrued income | ||||||||||||||||
14 | Creditors: | |||||||||||||||
amounts falling due within one year | ||||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
Bank loans and overdrafts | ||||||||||||||||
Obligations under finance lease and hire purchase contracts | ||||||||||||||||
Trade creditors | ||||||||||||||||
Other taxes and social security | ||||||||||||||||
Loans from directors | ||||||||||||||||
Other creditors | ||||||||||||||||
Accruals and deferred income | ||||||||||||||||
15 | Creditors: | |||||||||||||||
amounts falling due after more than one year | ||||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
Bank loans and overdrafts | ||||||||||||||||
Obligations under finance lease and hire purchase contracts | ||||||||||||||||
16 | Creditors: secured liabilities | |||||||||||||||
2024 | 2023 | |||||||||||||||
£ | £ | |||||||||||||||
The aggregate amount of secured liabilities included within creditors | ||||||||||||||||
17 | Share Capital | |||||||||||||||
Called-up share capital represents the nominal value of shares that have been issued. | Nominal value | 2024 | 2024 | 2023 | ||||||||||||
£ | Number | £ | £ | |||||||||||||
Allotted, called up and fully paid: | ||||||||||||||||
18 | Reserves | |||||||||||||||
19 | Reconciliation of net debt | |||||||||||||||
At 1 February 2023 | Cash flows | New HP/Finance leases | At 31 January 2024 | |||||||||||||
£ | £ | £ | £ | |||||||||||||
Cash and cash equivalents | ( | |||||||||||||||
Bank overdrafts | ( | 195,647 | ( | |||||||||||||
(806,975) | 187,245 | - | (619,730) | |||||||||||||
Bank loans | (2,120,000) | 130,000 | (1,990,000) | |||||||||||||
Obligations under HP/Finance Leases | (11,408) | 4,691 | - | (6,717) | ||||||||||||
(2,131,408) | 134,691 | - | (1,996,717) | |||||||||||||
Net debt | ( | 321,936 | - | ( | ||||||||||||
20 | Related party disclosures | |||||||||||||||
During the year, the company recharged costs of £93,992 to World of Water Reading (2023: £70,420). At the year end the company was owed £75,163 from World of Water Reading (2023: £143,024). Director John Went is the sole proprietor of World of Water Reading. During the year, the company sold part of the land recognised in work in progress to the director Chris Helberg for £25,000. £nil rent (2023: £nil) was charged by the director John Went, who is the owner of the freehold land on which the garden centre operates. | ||||||||||||||||
Key management personnel | 2024 | 2023 | ||||||||||||||
£ | £ | |||||||||||||||
All directors and certain senior employees who have responsibility for planning, directing and controlling the activities of the company are considered to be key management personnel. Total remuneration of these individuals is: | ||||||||||||||||