Company registration number 01107147 (England and Wales)
THREE PEARS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
PAGES FOR FILING WITH REGISTRAR
THREE PEARS LIMITED
COMPANY INFORMATION
Director
Mr E S Dunn
Secretary
Ms K E Tonks
Company number
01107147
Registered office
Hyefield House
36 Hagley Road
Halesowen
West Midlands
B63 4RH
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
THREE PEARS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 10
THREE PEARS LIMITED
BALANCE SHEET
AS AT 29 FEBRUARY 2024
29 February 2024
- 1 -
29 February 2024
28 February 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
6
987,919
1,036,317
Investments
5
13,450
13,450
1,001,369
1,049,767
Current assets
Stocks
7
1,662,556
2,027,273
Debtors
8
3,653,433
4,249,935
Cash at bank and in hand
33,646
57,653
5,349,635
6,334,861
Creditors: amounts falling due within one year
9
(2,769,956)
(3,099,927)
Net current assets
2,579,679
3,234,934
Total assets less current liabilities
3,581,048
4,284,701
Creditors: amounts falling due after more than one year
10
(532,229)
(798,230)
Provisions for liabilities
(4,790)
(4,790)
Net assets
3,044,029
3,481,681
Capital and reserves
Called up share capital
13
1,201,000
1,201,000
Revaluation reserve
14
422,222
421,611
Capital redemption reserve
874
874
Profit and loss reserves
1,419,933
1,858,196
Total equity
3,044,029
3,481,681

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 29 November 2024
Mr E S Dunn
Director
Company registration number 01107147 (England and Wales)
THREE PEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
1
Accounting policies
Company information

Three Pears Limited is a private company limited by shares incorporated in England and Wales.

 

The registered office and principal place of business of the company is Hyfield House, 36 Hagley Road, Halesowen, United Kingdom, B63 4RH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include certain financial instruments at fair value.

 

The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover represents amounts receivable for goods net of VAT and trade discounts.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.3
Intangible fixed assets

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Brand rights
2 years on cost
THREE PEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 3 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% on revalued cost
Leasehold improvements
20% on cost
Plant and equipment
20% on net book value
Motor vehicles
20% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Unlisted investments in companies that are not publicly traded and whose fair value cannot otherwise be measured reliably are measured at cost less impairment.

 

Listed investments whose fair value can be measured reliably are measured at fair value.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the 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 an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

THREE PEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 4 -
1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment and review of out of date stock items. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

THREE PEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 5 -
1.10
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes 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 reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

THREE PEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 6 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of stock

Stock provisions are booked for cases where the realisable value from sale of individual line items of stock is estimated to be lower than its carrying value. Management has estimated that the realisable value from sale for stock considered to be either slow moving or approaching its sell by date to be £810,894 (2022: £816,185).

 

See note 7 for the net carrying amount of stock.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
16
17

 

4
Intangible fixed assets
Other
£
Cost
At 1 March 2023 and 29 February 2024
5,770
Amortisation and impairment
At 1 March 2023 and 29 February 2024
5,770
Carrying amount
At 29 February 2024
-
0
At 28 February 2023
-
0
THREE PEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 7 -
5
Fixed asset investments
2024
2023
£
£
Other investments other than loans
13,450
13,450
6
Tangible fixed assets
Freehold land and buildings
Leasehold improvements
Plant and equipment
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 March 2023
900,000
26,396
481,921
34,371
1,442,688
Additions
-
0
-
0
7,237
-
0
7,237
Disposals
-
0
-
0
-
0
(34,371)
(34,371)
At 29 February 2024
900,000
26,396
489,158
-
0
1,415,554
Depreciation and impairment
At 1 March 2023
-
0
26,396
363,363
16,612
406,371
Depreciation charged in the year
15,004
-
0
22,872
-
0
37,876
Eliminated in respect of disposals
-
0
-
0
-
0
(16,612)
(16,612)
At 29 February 2024
15,004
26,396
386,235
-
0
427,635
Carrying amount
At 29 February 2024
884,996
-
0
102,923
-
0
987,919
At 28 February 2023
900,000
-
0
118,558
17,759
1,036,317

Land and buildings with a carrying amount of £720,002 (2023 - £735,001) were revalued on 9 May 2023 by Centrick, independent valuers not connected with the company on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the amounts of freehold land and buildings included would be cost £780,764 (2023: £780,764), accumulated depreciation £317,990 (2023: £302,370) and therefore a netbook value of £462,774 (2023: £478,394).

7
Stocks
2024
2023
£
£
Stocks
1,662,556
2,027,273

In the opinion of the directors the replacement cost of stock is not materially different from cost.

Stock is stated net of an obsolete stock provision of £Nil (2023 - £810,894).

 

THREE PEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 8 -
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
843,007
1,086,244
Amounts owed by group undertakings
2,685,485
3,058,306
Other debtors
124,941
105,385
3,653,433
4,249,935
9
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
1,221,897
1,525,066
Trade creditors
1,468,988
1,540,820
Taxation and social security
54,051
9,266
Other creditors
25,020
24,775
2,769,956
3,099,927
10
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
532,229
798,230
THREE PEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 9 -
11
Other creditors falling due after one year

Santander UK Plc holds fixed charges over the company's freehold property and all other assets. This has since been satisfied in the year on 2 March 2021.

 

As of 1 March 2021, Arbuthnot Commercial Asset Based Lending Limited and Edward Dunn hold fixed and floating charges over the company's freehold property and all other assets.

 

Contained within bank loans is:

 

12
Secured debts
The following secured debts are included within creditors:
2024
2023
£
£
Bank overdrafts
1,004,126
1,322,696
Bank loans
750,000
1,000,600
1,754,126
2,323,296
Bank loans are secured by way of a fixed and floating charge over all assets of the company.
13
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,201,000
1,201,000
1,201,000
1,201,000

All ordinary shares have voting rights both generally and in respect of dividends.

 

During the year the company issued a further 1,200,000 ordinary £1 shares at par value.

14
Revaluation reserve
2024
2023
£
£
At the beginning of the year
421,611
240,371
Revaluation surplus arising in the year
-
0
179,998
Transfer to retained earnings
611
31,240
Other movements
-
(29,998)
At the end of the year
422,222
421,611

The revaluation reserve represents unrealised increases in the fair value of certain tangible fixed assets compared to their value under historical cost accounting relating to certain tangible fixed assets.

THREE PEARS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 10 -
15
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Garry Rutter FCA
Statutory Auditor:
Ormerod Rutter Limited
Date of audit report:
29 November 2024
16
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
Within one year
26,202
35,029
Between two and five years
65,504
49,146
91,706
84,175
17
Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

18
Parent company

The company's immediate and ultimate parent company is Three Pears Holdings Limited.

 

The principal place of business of Three Pears Holdings Limited is at Hyfield House, 36 Hagley Road, Halesowen, United Kingdom, B63 4RH. The consolidated statements for Three Pears Holdings Limited are available at this address.

The ultimate controlling party is Mr E S Dunn, a director of the company, who owns all of the issued share capital of the parent company Three Pears Holdings Limited.

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