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Homeleigh Garden Centre Limited

Annual Report and Financial Statements
Year Ended 29 February 2024

Registration number: 04622982

 

Homeleigh Garden Centre Limited

Contents

Strategic Report

1

Directors' Report

2

Statement of Directors' Responsibilities

3

Independent Auditor's Report

4 to 6

Statement of Income and Retained Earnings

7

Balance Sheet

8

Statement of Cash Flows

9

Notes to the Financial Statements

10 to 23

 

Homeleigh Garden Centre Limited

Strategic Report for the Year Ended 29 February 2024

The directors present their strategic report for the year ended 29 February 2024.

Principal activity

The principal activity of the company is the operation of garden centres in the South West of the United Kingdom, with two located in Cornwall (Launceston and Bude) and one in Devon (Crediton).

Fair review of the business

This year (23/24), we experienced a significant increase in sales, reaching £13.1 million, up from £10.6 million in 22/23. This 23% growth in turnover is primarily attributed to the opening of our new store in Crediton, Devon, at the end of the 22/23 financial year.

The Crediton store represented a major financial investment for the Company, and it has been greatly supported by the local community since its inception. This robust community support is reflected in the strong sales figures reported in this year’s accounts.

Profit before tax rose to £759k in 23/24, compared to £737k in 22/23, representing 6% and 7% of turnover, respectively. The slight decline in profit before tax as a percentage of turnover is primarily due to increased costs in wages and utilities. Wage expenses grew by 37% in 23/24, and utility costs rose by over £200k during the same period.

The increase in salary costs is due to the expanded team at our new Crediton store, along with the increase in the national wage rates. We are also committed to retaining and rewarding our staff with our above-national-minimum-wage policy, which applies to all staff members. We see excellent staff retention, which we believe is attributed to our strong reputation in the local communities and competitive compensation packages.

Looking ahead, we are reviewing several strategic investments for the 24/25 financial year as part of our ongoing efforts to enhance our offerings.

Principal risks and uncertainties

We acknowledge the impact of the significant rise in wage and energy expenses.

To mitigate some of these challenges, we have installed solar panels on our new Crediton store and continue to benefit from the extensive number of panels installed at our Launceston store.

We remain committed to keeping our costs reasonable while supporting the local community through fair wages, employment opportunities, and the utilisation of local suppliers and contractors whenever feasible. Our strong workforce makes us a key employer in the towns where our garden centres are located.

In conclusion, we are optimistic about the future of our garden centres and are confident that our continued focus on customer satisfaction, strategic investments, and community engagement will contribute to our long-term success.

The Directors are satisfied that the company will remain a going concern, supported by the financial data of post year end trading and projections for future accounting periods.

Approved and authorised by the Board on 27 November 2024 and signed on its behalf by:

.........................................
Mrs E J Broad
Director

 

Homeleigh Garden Centre Limited

Directors' Report for the Year Ended 29 February 2024

The directors present their report and the financial statements for the year ended 29 February 2024.

Directors of the company

The directors who held office during the year were as follows:

D J Broad Esq

Mrs E J Broad

R J Broad Esq

Financial instruments

Objectives and policies

The company’s operations are exposed to interest rate fluctuations. The company has a mixture of fixed and variable loans to mitigate this risk. Additionally, management monitors and takes action to mitigate the company’s price, credit and liquidity risk.

Price risk, credit risk, liquidity risk and cash flow risk

Price risk
The company is at risk of volatility in prices of raw materials. The company mitigates its risk to this volatility by working to anticipate a contingency in price setting before orders are quoted.

Credit risk
The company works to mitigate credit risk by running a credit application process before taking on a new customer. Outstanding debt is actively monitored, and credit terms are updated when necessary.

Liquidity risk
There is a risk that the company could over trade and have insufficient funds available to pay debts as they fall due. The risk is mitigated by the fact that stock holdings are carefully managed and rapidly turned over, any outstanding debts are actively chased, and good relationships are maintained with suppliers.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 27 November 2024 and signed on its behalf by:
 

.........................................
Mrs E J Broad
Director

 

Homeleigh Garden Centre Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

 

Homeleigh Garden Centre Limited

Independent Auditor's Report to the Members of Homeleigh Garden Centre Limited

Opinion

We have audited the financial statements of Homeleigh Garden Centre Limited (the 'company') for the year ended 29 February 2024, which comprise the Statement of Income and Retained Earnings, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 29 February 2024 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

Homeleigh Garden Centre Limited

Independent Auditor's Report to the Members of Homeleigh Garden Centre Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, 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 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor Responsibilities for the audit of the financial statements

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

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

 

Homeleigh Garden Centre Limited

Independent Auditor's Report to the Members of Homeleigh Garden Centre Limited

We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK.

As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue operating and the risk of material misstatement to the accounts. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Reviewing legal and professional costs to identify legal costs in respect of non compliance; and
• Making enquiries with management whether there have been any known instances, allegations or suspicions of fraud or non-compliance with laws and regulations.

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 fraudulent financial reporting. Our procedures involved the following:
• Reviewing nominal journal entries for reasonableness;
• Reviewing significant accounting estimates for bias; and
• Reviewing inventories for evidence of impairment.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

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

......................................
James Barrett FCA (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

28 November 2024

 

Homeleigh Garden Centre Limited

Statement of Income and Retained Earnings

Year Ended 29 February 2024

Note

2024
£

2023
£

Turnover

3

13,072,192

10,607,254

Cost of sales

 

(7,376,518)

(6,106,098)

Gross profit

 

5,695,674

4,501,156

Administrative expenses

 

(4,777,832)

(3,716,582)

Other operating income

4

108,370

98,087

Operating profit

5

1,026,212

882,661

Other interest receivable and similar income

9

4,638

1,042

Interest payable and similar charges

10

(272,262)

(146,908)

 

(267,624)

(145,866)

Profit before tax

 

758,588

736,795

Taxation

11

(223,291)

(154,715)

Profit for the financial year

 

535,297

582,080

Retained earnings brought forward

 

5,038,581

4,456,501

Dividends paid

 

(101,000)

-

Retained earnings carried forward

 

5,472,878

5,038,581

 

Homeleigh Garden Centre Limited

Balance Sheet

29 February 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

12

7,500

10,000

Tangible assets

13

7,720,422

7,475,891

Investment property

14

926,963

926,963

 

8,654,885

8,412,854

Current assets

 

Stocks

15

3,102,090

3,216,465

Debtors

16

48,932

140,265

Cash at bank and in hand

 

476,610

534,731

 

3,627,632

3,891,461

Creditors: Amounts falling due within one year

18

(1,839,008)

(2,247,432)

Net current assets

 

1,788,624

1,644,029

Total assets less current liabilities

 

10,443,509

10,056,883

Creditors: Amounts falling due after more than one year

18

(4,559,437)

(4,708,449)

Provisions for liabilities

20

(410,194)

(308,853)

Net assets

 

5,473,878

5,039,581

Capital and reserves

 

Called up share capital

1,000

1,000

Profit and loss account

5,472,878

5,038,581

Shareholders' funds

 

5,473,878

5,039,581

Approved and authorised by the Board on 27 November 2024 and signed on its behalf by:
 

.........................................
D J Broad Esq
Director

.........................................
R J Broad Esq
Director

 
     

Company Registration Number: 04622982

 

Homeleigh Garden Centre Limited

Statement of Cash Flows

Year Ended 29 February 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

535,297

582,080

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

428,271

424,181

(Profit)/loss on disposal of tangible assets

(8,833)

4,047

Finance income

9

(4,638)

(1,042)

Finance costs

10

272,262

146,908

Income tax expense

11

223,291

154,715

 

1,445,650

1,310,889

Working capital adjustments

 

Decrease/(increase) in stocks

15

114,375

(39,000)

Decrease/(increase) in trade debtors

16

91,333

(38,941)

(Decrease)/increase in trade creditors

18

(582,365)

617,940

Cash generated from operations

 

1,068,993

1,850,888

Income taxes paid

11

-

(266,168)

Net cash flow from operating activities

 

1,068,993

1,584,720

Cash flows from investing activities

 

Interest received

9

4,638

1,042

Acquisitions of tangible assets

(617,662)

(2,825,585)

Proceeds from sale of tangible assets

 

77,222

8,499

Acquisition of investment properties

-

(340,019)

Net cash flows from investing activities

 

(535,802)

(3,156,063)

Cash flows from financing activities

 

Interest paid

10

(272,262)

(146,908)

Proceeds from bank borrowing draw downs

 

-

2,550,000

Repayment of bank borrowing

 

(203,519)

(1,393,857)

Payments to finance lease creditors

 

(15,849)

(41,937)

Dividends paid

(101,000)

-

Net cash flows from financing activities

 

(592,630)

967,298

Net decrease in cash and cash equivalents

 

(59,439)

(604,045)

Cash and cash equivalents at 1 March

 

533,685

1,137,730

Cash and cash equivalents at 29 February

 

474,246

533,685

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

1

General information

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

The address of its registered office is:
Homeleigh Garden Centre
Dutson
Launceston
Cornwall
PL15 9SP

These financial statements were authorised for issue by the Board on 27 November 2024.

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.

Accounting estimates and assumptions

Stock Provision

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in proft and loss. The provision at the end of the year was £215k (2023 - £215k). Reversals of impairment losses are also recognised in profit and loss.

Revenue recognition

Turnover represents net invoiced sales of goods to customers during the period, excluding value added tax.

i) Sale of goods - garden centre transactions
Turnover arising from cash and credit sales made within the garden centres is recognised at the point of sale.

ii) Sale of goods - internet based transactions
The company sells goods via its website for delivery to the customer. Turnover is recognised when the risks and rewards of the inventory is passed to the customer on dispatch of the goods. Transactions are settled by credit or payment card.

(iii) Hairdressing income
The company provides hairdressing services on the premises. Revenue is recognised in the accounting period in which the service takes place with payment arising on the same day. Payments are settled by cash or payment card.

(iv) Farm income
Turnover from farm sales is recognised on the date of sale, measured at the fair value of the consideration received or receivable, excluding discounts and rebates.

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

Government grants

Government grants are accounted for based on the accrual model. Grants relating to revenue are recognised in income in the periods in which they become receivable.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation 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 tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred 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

Land and buildings

20% and 4% straight line, land is not depreciated

Motor vehicles

20% reducing balance

Plant and machinery

15% reducing balance

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.

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

Asset class

Amortisation method and rate

Goodwill

10% straight line

Stocks

Garden centre stocks are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items.

Farm stock is split between cattle, sheep and produce and are all valued at cost. Where cost cannot be determined they are valued at their fair value.

The cost formula used in measuring all stock is FIFO.

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.

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.

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

3

Turnover

The analysis of the company's turnover for the year by class of business is as follows:

2024
£

2023
£

Garden centre

11,903,294

9,804,260

Hairdressing

242,416

148,243

Farm

926,482

654,751

13,072,192

10,607,254

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

UK

13,072,192

10,607,254

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Sub lease rental income

63,373

58,907

Miscellaneous other operating income

44,997

39,180

108,370

98,087

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

425,771

421,681

Amortisation expense

2,500

2,500

(Profit)/loss on disposal of property, plant and equipment

(8,833)

4,047

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

2,937,881

2,147,856

Social security costs

201,767

153,314

Pension costs, defined contribution scheme

112,908

71,808

3,252,556

2,372,978

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Farming

1

1

Administration and support

4

4

Garden centre

167

124

172

129

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

27,656

28,006

Contributions paid to money purchase schemes

61,144

36,000

88,800

64,006

8

Auditor's remuneration

2024
£

2023
£

Audit of the financial statements

10,850

10,300


 

9

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

4,638

1,042

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

10

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

272,158

146,672

Interest on obligations under finance leases and hire purchase contracts

104

236

272,262

146,908

11

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

121,950

-

Deferred taxation

Arising from origination and reversal of timing differences

101,341

154,715

Tax expense in the income statement

223,291

154,715

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 24.49% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

758,588

736,795

Corporation tax at standard rate

185,778

139,991

Effect of revenues exempt from taxation

-

198

Effect of expense not deductible in determining taxable profit (tax loss)

44,551

26,950

UK deferred tax expense relating to changes in tax rates or laws

3,181

37,131

Decrease from effect of tax incentives

(10,219)

(49,555)

Total tax charge

223,291

154,715

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Fixed asset timing differences

-

410,452

Short term timing differences

258

-

258

410,452

2023

Asset
£

Liability
£

Fixed asset timing differences

-

402,212

Tax losses carried forward

92,293

-

Short term timing differences

1,066

-

93,359

402,212

12

Intangible assets

Goodwill
 £

Cost or valuation

At 1 March 2023

25,000

At 29 February 2024

25,000

Amortisation

At 1 March 2023

15,000

Amortisation charge

2,500

At 29 February 2024

17,500

Carrying amount

At 29 February 2024

7,500

At 28 February 2023

10,000

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

13

Tangible assets

Land and buildings
£

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 March 2023

8,460,511

377,264

1,665,985

10,503,760

Additions

596,683

93,590

48,418

738,691

Disposals

(51,477)

(46,317)

-

(97,794)

At 29 February 2024

9,005,717

424,537

1,714,403

11,144,657

Depreciation

At 1 March 2023

1,700,010

213,491

1,114,368

3,027,869

Charge for the year

287,996

47,679

90,096

425,771

Eliminated on disposal

(2,059)

(27,346)

-

(29,405)

At 29 February 2024

1,985,947

233,824

1,204,464

3,424,235

Carrying amount

At 29 February 2024

7,019,770

190,713

509,939

7,720,422

At 28 February 2023

6,760,501

163,773

551,617

7,475,891

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2024
£

2023
£

Plant and machinery

126,406

76,305

     

Included within the net book value of land and buildings above is £7,019,770 (2023 - £6,760,501) in respect of freehold land and buildings.
 

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

14

Investment properties

2024
£

At 1 March

926,963

At 29 February

926,963

The investment property (Epcott House) was independently valued by Stags on 29th February 2020. The directors are of the opinion that this is not materially different and continues to reflect the current open market value.

Crediton bungalow was transferred to investment property at the directors best estimate of the cost which the directors consider is not materially different from the open market value as at 28th February 2021.

Willow bungalow was purchased during 2023 and brought in to investment properties at its purchase price as the best estimate of fair value at the year end.

If investment property had not been revalued it would have been included at historical cost of £1,310,375 (2023 - £1,310,375).

15

Stocks

2024
£

2023
£

Other inventories

3,102,090

3,216,465

16

Debtors

2024
£

2023
£

Trade debtors

25,423

3,829

Other debtors

8,338

121,547

Prepayments

15,171

14,889

48,932

140,265

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

17

Cash and cash equivalents

2024
£

2023
£

Cash at bank

476,610

534,731

Bank overdrafts

(2,364)

(1,046)

Cash and cash equivalents in statement of cash flows

474,246

533,685

18

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

19

190,901

138,910

Trade creditors

 

922,955

1,643,428

Social security and other taxes

 

260,070

39,315

Outstanding defined contribution pension costs

 

12,730

7,426

Other creditors

 

133,185

202,926

Accruals

 

197,217

215,427

Corporation tax

11

121,950

-

 

1,839,008

2,247,432

Due after one year

 

Loans and borrowings

19

4,559,437

4,708,449

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

19

Loans and borrowings

2024
£

2023
£

Non-current loans and borrowings

Bank borrowings

4,471,582

4,708,449

Hire purchase contracts

87,855

-

4,559,437

4,708,449

2024
£

2023
£

Current loans and borrowings

Bank borrowings

171,212

137,864

Bank overdrafts

2,364

1,046

Hire purchase contracts

17,325

-

190,901

138,910

Bank borrowings

Natwest Fixed rate loan is denominated in £ with a nominal interest rate of 3.35%, and the final instalment is due on 13 February 2030. The carrying amount at year end is £2,218,959 (2023 - £2,326,239).

NatWest loan is denominated in £ with a nominal interest rate of Base rate plus 2.20%, and the final instalment is due on 5 January 2043. The carrying amount at year end is £2,423,834 (2023 - £2,553,608).

The NatWest loans are secured by a personal guarantee from the shareholders supported by legal charges over freehold land.

Included in the loans and borrowings are the following amounts due after more than five years:

2024
£

2023
£

After more than five years by instalments

3,697,400

3,992,690

-

-

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

20

Provisions for liabilities

Deferred tax
£

Total
£

At 1 March 2023

308,853

308,853

Increase in existing provisions

101,341

101,341

At 29 February 2024

410,194

410,194

21

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

         

22

Pension and other schemes

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 £112,908 (2023 - £71,808).

Contributions totalling £12,730 (2023 - £7,426) were payable to the scheme at the end of the year and are included in creditors.

 

Homeleigh Garden Centre Limited

Notes to the Financial Statements

Year Ended 29 February 2024

23

Analysis of changes in net debt

At 1 March 2023
£

Financing cash flows
£

Other non-cash changes
£

At 29 February 2024
£

Cash and cash equivalents

Cash

534,731

(58,121)

-

476,610

Overdrafts

(1,046)

(1,318)

-

(2,364)

533,685

(59,439)

-

474,246

Borrowings

Long term borrowings

(4,708,449)

-

236,867

(4,471,582)

Short term borrowings

(137,864)

203,519

(236,867)

(171,212)

Lease liabilities

-

15,849

(121,029)

(105,180)

(4,846,313)

219,368

(121,029)

(4,747,974)

 

(4,312,628)

159,929

(121,029)

(4,273,728)

24

Related party transactions

Income and receivables from related parties

2024

Key management
£

Receipt of services

3,000

2023

Key management
£

Receipt of services

3,000

Expenditure with and payables to related parties

2024

Key management
£

Rendering of services

4,300

2023

Key management
£

Rendering of services

4,300

25

Parent and ultimate parent undertaking

The ultimate controlling parties are D J and E J Broad.