Registered number:
FOR THE YEAR ENDED 31 JULY 2024
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
COMPANY INFORMATION
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
CONTENTS
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
We aim to present a balanced and comprehensive report on the development and performance of our business during the year and its position at the year end.
Our report is consistent with the size and non-complex nature of the business and is written in the context of the risks and uncertainties we face.
The principal activity of the Company continued to be that of being a garden centre retailer.
The environment in which we operate continues to be challenging. The garden centre retailing market is highly competitive and margins are constantly being pressured. The Directors and senior management are constantly looking at options to enhance customer retention and customer experience. The loyalty scheme relaunched in April 2022 is going from strength to strength. With over 45,000 members signed up and those loyal members resulting at times in nearly 50% of sales. The loyalty scheme is also used to identify appropriate enhanced store visits. We face increasing competition from all retailers. The general economic uncertainty for all, is highly challenging. 2024 saw a lessening of price increases, however freight charges continue to vary widely due to Global issues. The Company reviews prices on a quarterly basis to remain competitive with a sufficient margin whilst remaining competitively priced. With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen events outside of our control. Staff costs being the largest overhead to the business are under constant review, especially in the light of the budget together with the continuing pressure of the National Minimum Wage combined with the 'Cambridge' effect on wages and salaries.
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
There are a number of potential risks and uncertainties which could have a material impact on Company performance and could cause actual results to differ materially from expected and historic results.
Weather One of the main risks to the Company is unpredictable weather conditions due to the nature of the principal activity which is highly seasonal. The Directors seek to mitigate this risk by increasing investment in areas less weather dependent highlighted with the financial commitment to the current development of the plant and cafe areas at the Shelford site. Liquidity The business relies on adequate access to funding and maintaining liquidity together with enabling future business investment and growth. Liquidity risk is managed by maintaining adeqaute reserves and banking facilities together with continuous monitoring of cash flows. Price Due to the nature of the business being retail it is heavily reliant on suppliers and their associated cost prices. If suppliers were to increase their prices the business would have to decide whether to pass these prices on to customers. The business has developed relationships with suppliers over many years and is well placed in negotiating prices. The Directors are aware of potential issues with freight costs for shipping and are liaising with suppliers to ensure they can reflect this in prices as necessary whilst remaining competitive. A constant review of margins, cost prices and supply costs is undertaken to ensure the Company remains competitive. As with all industries prices on all costs are constantly changing.
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
We consider that our key performance indicators are those that communicate the financial performance and strength of the Company as a whole, being turnover, gross profit and net assets.
There has been a marginal decrease in turnover from 2022/23 of 0.80%. Gross margin has marginally decreased from 47.07% in 2022/23 to 45.85% in 2023/24. Net assets have increased from £19.63m in 2022/23 to £21.09m in 2023/24. Overall the results for the year and the financial position of the Company at the year-end were considered by the Directors to be reasonable considering Shelford lost up to 30% of its retail space whilst undergoing the continuing redevelopment. With the continuing redevelopment and poor weather from March through June growth has faltered. The Directors are hopeful of some growth in 2024/25 though Phase 2 is not expected to be complete until the end of March 2025 followed by Phase 3 whcih will have an impact on sales in general. The Directors started the redevelopment at Shelford in the summer of 2023 are pleased Phase 1 was completed by the end of March 2024 on time and on budget. DIRECTORS' STATEMENT OF COMPLIANCE WITH DUTY TO PROMOTE THE SUCCESS OF THE GROUP Our Directors use Section 172 of the Companies Act 2006 to act in a manner that promotes the success of the business. Section 172 requires the Directors to have regard to the following matters: (a) The likely consequences of any decision in the long-term; (b) The interests of the Group’s employees’; (c) The need to foster the Group’s business relationships with suppliers, customers and others; (d) The impact of the Group’s operations on the community and the environment; (e) The desirability of the Group maintaining a reputation for high standards of business conduct; and (f) The need to act fairly between members of the Group. The Directors believe that Scotsdales is well positioned to seize the opportunity to adapt its brand and marketing to ensure the brand is relevant and inspiring to new consumer bases and their shopping trends without alienating current customers. In order to do this, we must consider what is important to our stakeholders, including our employees’, customers and suppliers. (a) The likely consequences of any decision in the long-term The Directors and the Senior Leadership Team at Scotsdales recognise that the long-term success of the company is dependent on the sustainability of its business model and management of risk. The Directors accept that decisions made by the board will have a direct impact on the company over differing time periods. Accordingly all strategic decisions are made in close association with the shareholders and with regular and controlled reporting procedures in place. The Directors consider ‘success’ to be a long-term increase in value for the benefit of its stakeholders as a whole. (b) The interests of the Group’s employees’ Our team of employees’ is the backbone of our business and our biggest asset. We invest in the development of our teams and encourage each other to excel through actionable feedback. Our Senior Leadership Team engage with employees’ in many different ways. There are also multiple channels in which our Senior Leadership Team can take account of the views of employees.
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
(b) The interests of the Group’s employees’ (continued)
(c) The need to foster the Group’s business relationship with suppliers, customers and others Our customers are the lifeblood of our business. Our key task is to ensure their experience is unforgettable. We focus on meeting the needs and building long-term relationships with our customers. Our relationships with our suppliers are also integral to our success and growth as a business. Our suppliers assist with supplying our business with high quality products for our customers.
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
(c) The need to foster the Group’s business relationship with suppliers, customers and others (continued)
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
(d) The impact of the Group’s operations on the community and the environment
COMMUNITY
Our impact as a business on our wider community is extremely important to us. We provide a quality and personalised retail experience and aim to share our success for the good of the community.
Gardening enhances people’s lives and provides a sense of community and we encourage this as a business. Our communities seek guidance and support from us and we are more than happy to provide this in various forms.
The Scotsdales Charitable Foundation was set up in 2007 and assisted in building the David Rayner Centre which is the home of the Cambridge Cancer Centre as well as being used by other charities. The Foundation has brought the community together in raising funds and hosting events for the good of the community. The Scotsdales Charitable Foundation continues to gift to various schools, community groups and charities. We believe it is extremely important to provide support for those who need it most in our local community and the Scotsdales Charitable Foundation provides us with a platform to do so. Scotsdales supports the Foundation by raising funds through Staff initiatives, plus selling goods on behalf of the Foundation. Scotsdales also supports the community through multiple sponsorships and donations. We sponsor many local sports clubs and teams including Cambridge united Women's Football Teams and Shelford Rugby Club. We sponsor local Gardening Clubs with the aim to enhance the lives of our customers and community. Scotsdales also sponsors school events through the donations of goods/services.
ENVIRONMENT
The Company is working to de-carbonate our operations as quickly as possible. We are also working across our own operations and supply chains to find innovative solutions to divert as much waste from landfill as possible. Phase 1 of our Shelford Development has included Solar Power as will Phase 2 and we are exploring Solar Options at our Hourningsea Site
We have made progress in peat reduction within our growing media products sold and will promote peat free alternative produce where possible. The use of peat as a mulch or soil conditioner will not be recommended.
(e) The desirability of the Group maintaining a reputation for high standards of business conduct
As a business, we have a strong reputation for high standards of business conduct. This was firmly established in our Company’s 'CART'’: Customer, Accountability, Respect, Teamwork. These principles are reiterated to all levels of our staff on a regular basis. As a business we inspire those who are in need of ideas, we give warmth and familiarity to those who seek it and we serve all our customers with expertise and 100% commitment. Our high standards of business conduct contribute positively to achieving our business strategy. Our Senior Leadership Team constantly review the business strategy ensuring it is the best it can be.
(f) The need to act fairly between members of the Group
Our Shareholders meet regularly with the Finance Director. We hold regular meetings with Shareholders and Accountants.
These regular meetings give the opportunity to review and discuss providing a clear line of communication.
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
This report was approved by the board on 23 December 2024 and signed on its behalf.
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
The Directors present their report and the financial statements for the year ended 31 July 2024.
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,459,642 (2023 - £2,403,313).
Ordinary dividends of £NIL (2023: £NIL) have been paid during the year.
The Directors who served during the year were:
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
The Directors have begun implementing plans to enhance the operations at the Great Shelford, Fordham and Horningsea sites. Consequently they are holding a substantial amount of cash and short term investments which are earmarked for the anticipated costs associated with the planned improvements to the sites or expansion in the number of sites.
A major redevelopment of the plants, compost pots and Café areas at the Great Shelford site commenced in Summer 2023, and the Directors are hoping for completion of the Cafe Area in March 2025. The Directors are also looking at improving the Shelford Car Park and Front Facia as the completion of Phase 1 has shown this needs improvement.. The Fordham Car Park is still being reviewed to see how it can be best improved. The Directors are constantly reviewing operations at the Horningsea site looking at ways to increase footfall and converting cafe sales into more retail sales. The Directors are reviewing how best to improve the cafe food preparation, cooking and washing areas together with enhancing staff and customer facilities.
The Group keeps employees informed of matters affecting them as employees and the financial and economic factors affecting the performance of the Group.
In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the Group continues and appropriate training is arranged. It is the policy of the Group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
For the year ended 31 July 2024 the Group had energy consumption and related emissions of carbon dioxide equivalent as follows:
- Purchase of electricity for lighting and electrical use of equipment within stores - 189 tonnes (2022 - 255 tonnes) - Use of gas in Café's - 49 tonnes (2023 - 54 tonnes) - Use of LPG for heating within stores - 44 tonnes (2023 - 50 tonnes) - Use of heating oil within stores - 22 tonnes (2023 - 45 tonnes) - Vehicle fuel for use of deliveries and travel between the stores - 17 tonnes (2023 - 27 tonnes) - Flights - 1 tonne (2023 - 1 tonne) - Mileage payments - 1 tonne (2023 - 2 tonnes) The Group's emissions of carbon dioxide per full time equivalent person was 1.30 tonnes (2023 - 2.01 tonnes).
The figures for energy consumption from combustion of gas and purchase of electricity for own use were calculated based on information from the Group’s gas and electricity suppliers. The related carbon dioxide equivalent emissions were then calculated using the Greenhouse Gas Conversion Factors for Company Reporting published by the Department for Business, Energy and Industrial Strategy.
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
The auditors, Lakin Rose Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the Board on
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
We have audited the financial statements of Scotsdale Nursery and Garden Centre Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 July 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Directors are responsible for the other information contained within the Annual Report. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED (CONTINUED)
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 Auditors' 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 Group 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:
Extent to which the audit was considered capable of detecting irregularities, including fraud We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. Identifying and assessing potential risks related to irregularities In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: - the nature of the industry and sector, control environment and business performance including the design of the Group's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; - results of our enquiries of management about their own identification and assessment of the risks of irregularities; - any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to: - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations. - the matters discussed among the audit engagement team and involving relevant internal specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and UK tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group's ability to operate or to avoid a material penalty. We identified no such laws and regulations applicable to the Group.
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED (CONTINUED)
Audit response to risks identified
As a result of performing the above, we identified revenue recognition as a key audit risk related to the potential risk of fraud. Our procedures to respond to risks identified included the following: - reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; - enquiring of management concerning actual and potential litigation and claims; - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; - obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition or non-recognition of provisions; and - in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Pioneer House
Vision Park
Histon
CB24 9NL
Date:
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
REGISTERED NUMBER: 00820387
CONSOLIDATED BALANCE SHEET
AS AT 31 JULY 2024
The financial statements were approved and authorised for issue by the Board and were signed on its behalf on 23 December 2024.
The notes on pages 20 to 39 form part of these financial statements.
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
REGISTERED NUMBER: 00820387
COMPANY BALANCE SHEET
AS AT 31 JULY 2024
The financial statements were approved and authorised for issue by the Board and were signed on its behalf on
The notes on pages 20 to 39 form part of these financial statements.
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Scotsdale Nursery and Garden Centre Limited is a private company limited by shares, incorporated in England and Wales. The registered office is 120 Cambridge Road, Great Shelford, Cambridge, CB22 5JT.
The nature of the Group's operations and principal activity is that of garden centre retailing.
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The financial statements are presented in sterling which is the functional currency of the Company and are rounded to the nearest pound.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group Companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
Page 20
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
2.ACCOUNTING POLICIES (CONTINUED)
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any premium on acquisition is dealt with in accordance with the goodwill policy.
The financial statements have been prepared on the going concern basis which assumes that the Group will continue as a going concern for the foreseeable future.
In light of the historic profitability of the Group and the significant cash balances (including current asset investments) held, coupled with the comments made in the Strategic Report, the Directors believe the Group will continue to trade profitably and generate cash sufficient to meet its liabilites as they fall due, being a period of not less than 12 months from the approval of the financial statements.
Page 21
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
2.ACCOUNTING POLICIES (CONTINUED)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using either the straight-line method or the reducing balance method. Depreciation is provided on the following basis: Freehold buildings and - Straight line over 5 to 50 years improvements Plant and machinery - Straight line over 2, 3, 4 or 5 years Motor vehicles - Straight line over 4 or 5 years Computer equipment - Straight line over 2 or 3 years The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Consolidated Statement of Comprehensive Income.
Page 22
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
2.ACCOUNTING POLICIES (CONTINUED)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in Consolidated Statement of Comprehensive Income.
Short term debtors are measured at transaction price, less any impairment.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Balance Sheet when the Group 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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Page 23
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
2.ACCOUNTING POLICIES (CONTINUED)
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Page 24
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
2.ACCOUNTING POLICIES (CONTINUED)
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Statement of Comprehensive Income except when deferred in other comprehensive income as qualifying cash flow hedges. Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date.
Page 25
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
2.ACCOUNTING POLICIES (CONTINUED)
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except that a change attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Group operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that: - The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and - Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Page 26
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
2.ACCOUNTING POLICIES (CONTINUED)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties. The key assumptions concerning the future, and other key sources of estimation uncertainty at the Balance Sheet date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Stock provisions Determining stock provisions involves estimating the recoverable amount of stock held by the Group. Calculating the recoverable amount of stock requires a degree of estimation in terms of the likely demand and prices for individual items. Depreciation and carrying amounts of fixed assets Calculation of the depreciation charge and hence the carrying value of fixed assets requires estimates to be made of the useful life of the assets. The estimates are based on the Group's experience of similar assets and details are set out in note 2.6.
The total turnover of the Group for the year has been derived from it's principal activity.
Page 27
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Page 28
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Page 29
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
There were no factors that may affect future tax charges.
Page 30
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £
Page 31
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
14.TANGIBLE FIXED ASSETS (CONTINUED)
Page 32
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Page 33
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Page 34
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Page 35
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Page 36
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Page 37
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund amounted to £270,630 (2023 - £188,260). Contributions totalling £30,670 (2023 - £23,150) were payable to the fund at the Balance Sheet date and are included in creditors.
28.FINANCIAL COMMITMENTS
The freehold land and buildings includes garden centre sites purchased which, as part of the purchase agreements, there are overage commitments in connection with any potential enhanced site values obtained through planning permission. In the Directors' opinion no liability is expected to crystalise in the foreseeable future.
Profit & loss account
Page 38
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SCOTSDALE NURSERY AND GARDEN CENTRE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
Page 39
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