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Registration number: 12410715

Gates Family Holdings Ltd

Annual Report and Consolidated Financial Statements

for the Year Ended 31 January 2024

 

Gates Family Holdings Ltd

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Consolidated Profit and Loss Account and Statement of Retained Earnings

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Cash Flows

14

Notes to the Financial Statements

15 to 32

 

Gates Family Holdings Ltd

Company Information

Directors

N. A. Gates

K. G. Gates

J. E. Gates

Registered office

Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

Auditors

Robert Whowell & Partners LLP
Chartered Accountants
Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

 

Gates Family Holdings Ltd

Strategic Report for the Year Ended 31 January 2024

The directors present their strategic report for the year ended 31 January 2024.

Principal activity

The principal activity of the group is that of a garden centre.

Fair review of the business

The directors consider that the group's business has continued to operate satisfactorily and believe that a strong platform is in place to allow for sustained growth within the industry. Their focus continues to be to meet the needs of the customer base by delivering superior quality products; offering excellent value for money; with best-in industry service levels.

The group's gross profit margin has increased during the year due to increases in sales of higher margin products following the stabilisation of supplier prices as the cost of living crisis has abated. The turnover has increased again this year due to the continuing success of the restaurant, farm shop, website and click and collect facilities.

The group's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2024

2023

Turnover

£'000

16,036

15,658

Profit before taxation

£'000

1,027

760

Gross profit margin

%

25

23

Shareholder' funds

£'000

8,605

7,773

Future developments

The current year is expected to turnout similar results despite the challenges of increasingly variable weather and seasonality impacting on supply chains and stock holding requirements. The directors are also mindful of overhead pressures, particularly the level of power costs and the increased costs of debt finance which are among the challenges being managed.

At the time of approving these financial statements the directors are at an advanced stage, and intend to enter into an agreement to acquire a new site under a long term lease arrangement. If successful the directors expect to commence trading from this site in early February 2025.

 

Gates Family Holdings Ltd

Strategic Report for the Year Ended 31 January 2024

Principal risks and uncertainties

The group manages its key risks strategically at Board level and operationally in senior leadership meetings.

Weather
Weather is a key risk to the group due to the seasonal nature of the sale of plants, gardening and outdoor living products. Adverse weather can lead to reduced footfall impacting on both profitability and stock levels. The group's growth in indoor retail and hospitality has reduced its reliance on good weather.

Supply Chain
Supply chain is a significant risk currently facing the group and garden centres in general due to significant disruptions of global supply chains over recent years. To mitigate against this risk the group ensures that stock levels are sufficient to allow for supply chain disruptions, which results in additional costs, but has ensured it maintains extremely robust supply arrangements.

Competition
The group competes with a variety of retailers including garden centres, DIY retailers and high quality food providers. The group closely monitors its position and remains competitive on range, value, quality and service.

Approved and authorised by the Board on 30 January 2025 and signed on its behalf by:
 

.........................................
N. A. Gates
Director

 

Gates Family Holdings Ltd

Directors' Report for the Year Ended 31 January 2024

The directors present their report and the for the year ended 31 January 2024.

Directors of the group

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

N. A. Gates

K. G. Gates

J. E. Gates

Financial instruments

Objectives and policies

The group's principal financial instruments comprise bank balances, trade debtors, loans to the business and finance lease agreements. The purpose of these instruments is to finance the group's operations.

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

In respect of bank balances, the liquidity risk is managed by maintaining a cash balance within the banking facilities agreed throughout the year.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the very limited availability of credit offered to customers. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Loans comprise funds provided by the group loan bankers. The group manages the liquidity risk by ensuring there are sufficient funds to meet the payments.

The group is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.

 

Gates Family Holdings Ltd

Directors' Report for the Year Ended 31 January 2024

Disclosure of information to the auditor

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 group's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 30 January 2025 and signed on its behalf by:
 

.........................................
N. A. Gates
Director

 

Gates Family Holdings Ltd

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 group and the company and of the profit or loss of the group 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 UK 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Gates Family Holdings Ltd

Independent Auditor's Report to the Members of Gates Family Holdings Ltd

Opinion

We have audited the financial statements of Gates Family Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2024, which comprise the Consolidated Profit and Loss Account and Statement of Retained Earnings, Consolidated Balance Sheet, Balance Sheet, Consolidated 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 group's and the parent company's affairs as at 31 January 2024 and of the group's 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 group 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 group'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.

 

Gates Family Holdings Ltd

Independent Auditor's Report to the Members of Gates Family Holdings Ltd

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.

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 group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company 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 6], 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.

 

Gates Family Holdings Ltd

Independent Auditor's Report to the Members of Gates Family Holdings Ltd

In preparing the financial statements, the directors are responsible for assessing the group'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 group 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:

enquiring of management, including obtaining and reviewing supporting documentation, concerning the group's 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 had knowledge of any actual, suspected or alleged fraud; and the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.

we obtained an understanding of the legal and regulatory frameworks applicable to the group based on our understanding of the group, sector experience and discussions with management. The most significant considerations for the group are the Companies Act 2006, Corporate and VAT legislation, Employment Taxes, Consumer Rights Act 2015, Health and Safety, Food Safety laws and the Bribery Act 2010.

discussing amongst the engagement team, who also undertook the audit testing on significant components, to assess how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas: management override of control; and revenue recognition, specifically the manipulation of revenue using fraudulent journals.

we tested the appropriateness of accounting journals and other adjustments made in the preparation of the financial statements.

we reviewed the group's accounting policies for non-compliance with relevant standards. Our work also included considering significant accounting estimates for evidence of misstatement or possible bias and testing any significant transactions that appeared to be outside the normal course of business.

we critically assessed the appropriateness and tested the application of the revenue policies.

 

Gates Family Holdings Ltd

Independent Auditor's Report to the Members of Gates Family Holdings Ltd

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that 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 by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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 parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

....................................................................................
Paul David Johnson FCA (Senior Statutory Auditor)
For and on behalf of Robert Whowell & Partners LLP, Statutory Auditor

Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

31 January 2025

 

Gates Family Holdings Ltd

Consolidated Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 January 2024

Note

2024
£

2023
£

Turnover

3

16,035,789

15,657,722

Cost of sales

 

(11,957,873)

(12,046,272)

Gross profit

 

4,077,916

3,611,450

Administrative expenses

 

(2,713,663)

(2,659,622)

Other operating income

4

11,505

8,709

Operating profit

5

1,375,758

960,537

Other interest receivable and similar income

6

2

-

Interest payable and similar charges

7

(348,371)

(200,557)

 

(348,369)

(200,557)

Profit before tax

 

1,027,389

759,980

Taxation

11

(195,137)

(375,169)

Profit for the financial year

 

832,252

384,811

Profit/(loss) attributable to:

 

Owners of the company

 

832,252

384,811

Retained earnings brought forward

 

7,772,959

7,388,148

Retained earnings carried forward

 

8,605,211

7,772,959

 

Gates Family Holdings Ltd

(Registration number: 12410715)
Consolidated Balance Sheet as at 31 January 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

11,536,578

11,809,985

Current assets

 

Stocks

14

3,896,576

5,114,281

Debtors

15

67,449

228,933

Cash at bank and in hand

 

245,446

56,609

 

4,209,471

5,399,823

Creditors: Amounts falling due within one year

17

(2,995,453)

(4,770,575)

Net current assets

 

1,214,018

629,248

Total assets less current liabilities

 

12,750,596

12,439,233

Creditors: Amounts falling due after more than one year

17

(3,883,478)

(4,279,244)

Provisions for liabilities

18

(261,807)

(386,930)

Net assets

 

8,605,311

7,773,059

Capital and reserves

 

Called up share capital

20

100

100

Retained earnings

21

8,605,211

7,772,959

Equity attributable to owners of the company

 

8,605,311

7,773,059

Shareholders' funds

 

8,605,311

7,773,059

Approved and authorised by the Board on 30 January 2025 and signed on its behalf by:
 

.........................................
N. A. Gates
Director

 

Gates Family Holdings Ltd

(Registration number: 12410715)
Balance Sheet as at 31 January 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

12

537,114

537,114

Investments

13

200

200

 

537,314

537,314

Current assets

 

Cash at bank and in hand

 

357

448

Creditors: Amounts falling due within one year

17

(537,571)

(537,662)

Net current liabilities

 

(537,214)

(537,214)

Net assets

 

100

100

Capital and reserves

 

Called up share capital

20

100

100

Shareholders' funds

 

100

100

The company made a profit after tax for the financial year of £nil (2023 - profit of £nil).

Approved and authorised by the Board on 30 January 2025 and signed on its behalf by:
 

.........................................
N. A. Gates
Director

 

Gates Family Holdings Ltd

Consolidated Statement of Cash Flows for the Year Ended 31 January 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

832,252

384,811

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

617,962

508,513

Profit on disposal of tangible assets

5

(72,114)

(72,369)

Finance income

6

(2)

-

Finance costs

7

348,371

200,557

Income tax expense

11

195,137

375,169

 

1,921,606

1,396,681

Working capital adjustments

 

Decrease/(increase) in stocks

14

1,217,705

(913,868)

Decrease in debtors

15

161,484

21,750

Decrease in creditors

17

(1,356,670)

(292,089)

Cash generated from operations

 

1,944,125

212,474

Income taxes (paid)/received

 

(423,987)

1

Net cash flow from operating activities

 

1,520,138

212,475

Cash flows from investing activities

 

Interest received

2

-

Acquisitions of tangible assets

12

(357,792)

(1,283,436)

Proceeds from sale of tangible assets

 

85,351

107,599

Net cash flows from investing activities

 

(272,439)

(1,175,837)

Cash flows from financing activities

 

Interest paid

7

(348,371)

(200,557)

Proceeds from bank borrowing draw downs

 

(478,025)

397,634

Payments to finance lease creditors

 

(31,032)

7,821

Net cash flows from financing activities

 

(857,428)

204,898

Net increase/(decrease) in cash and cash equivalents

 

390,271

(758,464)

Cash and cash equivalents at 1 February

 

(144,825)

613,639

Cash and cash equivalents at 31 January

16

245,446

(144,825)

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 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:
Westwood House
78 Loughborough Road
Quorn
Loughborough
Leicestershire
LE12 8DX

The principal place of business is:
Somerby Road
Cold Overton
Oakham
Rutland
LE15 7QB

These financial statements were authorised for issue by the Board on 30 January 2025.

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.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 January 2024.

The consolidated financial statements include the results of Gates Family Holdings Ltd and all its subsidiary undertakings made up to the same accounting date. All intra-group balances, transactions, income and expenses are eliminated in full on consolidation.

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

Judgements

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amount of the assets and liabilities within the next financial year are addresed below:

(i) Useful economic lives of tangible fixed assets. The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 12 for the carrying amount of the tangible fixed assets and see the policy below for the useful economic lives of each class of asset.

(ii) Stock provisioning. The group holds high levels of seasonal stock and as a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and concession rentals in the ordinary course of the group’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The group recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the group's activities.

Government grants

Government grants are recognised on an accruals basis.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, 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 income 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 group operates and generates taxable income.

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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 over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land

Nil

Freehold buildings

2% straight line

Properties under construction

Not depreciated until completed

Motor vehicles

25% reducing balance

Plant and machinery

20% straight line

Merger accounting

The introduction of a new holding company constitutes a group reconstruction and has been accounted for using merger accounting principles. Therefore, although the group reconstruction did not become effective until 1 February 2020, the consolidated financial statements of Gates Family Holdings Ltd are presented as if Gates Family Holdings Ltd, F. A. Gates & Son Limited and Gates Farming Ltd had always been part of the same group.

The consolidated financial statements include the results of Gates Family Holdings Ltd and all its subsidiary undertakings made up to the same accounting date. All intra-group balances, transactions, income and expenses are eliminated in full on consolidation.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in the profit and loss account. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of goods for resale comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in the profit and loss account.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

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 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.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.

3

Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

15,563,364

15,291,291

Rental concession income

472,425

366,431

16,035,789

15,657,722

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

4

Other operating income

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

2024
£

2023
£

Government grants

1,873

-

Property rental income

9,632

8,709

11,505

8,709

5

Operating profit

Arrived at after charging/(crediting):

2024
£

2023
£

Depreciation

617,962

508,513

Profit on disposal of property, plant and equipment

(72,114)

(72,369)

6

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

2

-

7

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

342,430

200,457

Interest on obligations under finance leases and hire purchase contracts

-

100

Interest expense on other finance liabilities

5,941

-

348,371

200,557

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

8

Staff costs

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

2024
£

2023
£

Wages and salaries

3,547,246

3,432,248

Social security costs

260,414

260,000

Pension costs, defined contribution scheme

77,401

73,694

3,885,061

3,765,942

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

2024
No.

2023
No.

Administration and support

17

14

Sales, marketing and distribution

173

185

190

199

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

64,535

41,866

Contributions paid to money purchase schemes

713

788

65,248

42,654

During the year the number of directors who were receiving benefits and share incentives was as follows:

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

1

1

10

Auditors' remuneration

2024
£

2023
£

Audit of these financial statements

29,000

25,000

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024


 

11

Taxation

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

2024
£

2023
£

Current taxation

UK corporation tax

320,260

134,414

Deferred taxation

Arising from origination and reversal of timing differences

(125,123)

194,595

Arising from changes in tax rates and laws

-

46,160

Total deferred taxation

(125,123)

240,755

Tax expense in the income statement

195,137

375,169

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 24.03% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,027,389

759,980

Corporation tax at standard rate

246,882

144,396

Tax increase/(decrease) from effect of capital allowances and depreciation

46,010

(17,005)

Tax (decrease)/increase from other short-term timing differences

(125,123)

194,595

Effect of expense not deductible in determining taxable profit

27,368

7,023

Deferred tax expense relating to changes in tax rates or laws

-

46,160

Total tax charge

195,137

375,169

From 1 April 2023 the rate of corporation tax in the United Kingdom increased from 19% to 25%. Companies with profits of £50,000 or less continued to be taxed at 19%, the new small profits rate. Where taxable profits are between £50,000 and £250,000 the higher rate of 25% applies but with marginal relief applying as profits increase.

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

Deferred tax

Group

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Accelerated capital allowances

-

261,807

2023

Asset
£

Liability
£

Accelerated capital allowances

-

386,930

12

Tangible assets

Group

Land and buildings
£

Motor vehicles
 £

Properties under construction
 £

Plant and Machinery
£

Total
£

Cost or valuation

At 1 February 2023

12,132,318

419,008

295,415

3,236,375

16,083,116

Additions

-

103,967

-

253,825

357,792

Disposals

-

(46,270)

-

(122,500)

(168,770)

Transfers

295,415

-

(295,415)

-

-

At 31 January 2024

12,427,733

476,705

-

3,367,700

16,272,138

Depreciation

At 1 February 2023

1,864,188

197,167

-

2,211,776

4,273,131

Charge for the year

151,763

78,142

-

388,057

617,962

Eliminated on disposal

-

(33,033)

-

(122,500)

(155,533)

At 31 January 2024

2,015,951

242,276

-

2,477,333

4,735,560

Carrying amount

At 31 January 2024

10,411,782

234,429

-

890,367

11,536,578

At 31 January 2023

10,268,130

221,841

295,415

1,024,599

11,809,985

Included within the net book value of land and buildings above is £10,411,782 (2023 - £10,268,130) in respect of freehold land and buildings.
 

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

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

21,330

28,440

Motor vehicles

68,468

91,290

89,798

119,730

Restriction on title and pledged as security

Land and buildings, including properties under construction, with a carrying amount of £10,411,782 (2023 - £10,563,545) has been pledged as security for the bank loans within the group used to secure the purchase of the land and buildings.

Plant and machinery with a carrying amount of £21,330 (2023 - £28,440) has been pledged as security for the hire purchase contract within the group used to purchase this asset.

Motor vehicles with a carrying amount of £68,468 (2023 - £91,290) has been pledged as security for the hire purchase contract within the group used to purchase this asset.

Company

Land and buildings
£

Total
£

Cost or valuation

At 1 February 2023

537,114

537,114

At 31 January 2024

537,114

537,114

Carrying amount

At 31 January 2024

537,114

537,114

At 31 January 2023

537,114

537,114

Included within the net book value of land and buildings above is £537,114 (2023 - £537,114) in respect of freehold land and buildings.
 

Restriction on title and pledged as security

Land with a carrying amount of £537,114 (2023 - £537,114) has been pledged as security for the bank loans within the group used to secure the purchase of the land.

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

13

Investments

Group

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

F. A. Gates & Son Limited*

Westwood House, 78 Loughborough Road, Quorn, Loughborough, Leicestershire.

Ordinary

100%

100%

 

     

Gates Farming Ltd*

Westwood House, 78 Loughborough Road, Quorn, Loughborough, Leicestershire.

Ordinary

100%

100%

 

     

* indicates direct investment of the company

Subsidiary undertakings

F. A. Gates & Son Limited

The principal activity of F. A. Gates & Son Limited is a garden centre.

Gates Farming Ltd

The principal activity of Gates Farming Ltd is a non-trading company.

Company

2024
£

2023
£

Investments in subsidiaries

200

200

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

Subsidiaries

£

Cost or valuation

At 1 February 2023

200

At 31 January 2024

200

Carrying amount

At 31 January 2024

200

At 31 January 2023

200

14

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Goods for resale

3,896,576

5,114,281

-

-

Group

Impairment of inventories

The amount of impairment loss included in other comprehensive income is £101,984 (2023 - £Nil). The amount of reversal of impairment recognised in the profit and loss account is £Nil (2023 - £178,895). These relate to items damaged during storage, missing stock items, seasonality and slow moving items.

15

Debtors

 

Group

Company

Current

2024
£

2023
£

2024
£

2023
£

Trade debtors

52,775

89,067

-

-

Amounts owed by related parties

-

132,698

-

-

Other debtors

14,674

7,168

-

-

 

67,449

228,933

-

-

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

16

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash on hand

56,015

38,164

-

-

Cash at bank

189,431

18,445

357

448

245,446

56,609

357

448

Bank overdrafts

-

(201,434)

-

-

Cash and cash equivalents in statement of cash flows

245,446

(144,825)

357

448

17

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Loans and borrowings

22

403,991

718,716

-

-

Trade creditors

 

1,302,835

2,246,529

-

-

Amounts due to related parties

 

64,554

82,427

537,571

537,662

Social security and other taxes

 

536,538

896,695

-

-

Other payables

 

24,069

74,428

-

-

Accruals

 

337,264

321,851

-

-

Income tax liability

 

326,202

429,929

-

-

 

2,995,453

4,770,575

537,571

537,662

Due after one year

 

Loans and borrowings

22

3,883,478

4,279,244

-

-

18

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 February 2023

386,930

386,930

Decrease in existing provisions

(125,123)

(125,123)

At 31 January 2024

261,807

261,807

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

19

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £77,401 (2023 - £73,694).

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       

Rights, preferences and restrictions

Ordinary have the following rights, preferences and restrictions:
All the shares hold full voting rights and there are no restrictions on the distribution of dividends and the repayment of capital.

21

Reserves

Group

Profit and loss account

The profit and loss reserve represents accumulated comprehensive income for the year and prior periods less dividends paid.

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

22

Loans and borrowings

Non-current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

3,883,478

4,255,713

-

-

Hire purchase contracts

-

23,531

-

-

3,883,478

4,279,244

-

-

Current loans and borrowings

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Bank borrowings

380,535

486,325

-

-

Bank overdrafts

-

201,434

-

-

Hire purchase contracts

23,456

30,957

-

-

403,991

718,716

-

-

Group

Bank borrowings

Bank borrowings are denominated in pounds sterling with a nominal interest rate between 1.20% to 2.75% over base rate, and the final instalment is due on 18 August 2037. The carrying amount at year end is £4,264,013 (2023 - £4,742,038).

The bank borrowings are secured on freehold property owned by the group and freehold property owned by a director.

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

2,847,140

3,058,660

Borrowings due after five years

Included in bank loans are seven seperate loans from the same provider all repayable in monthly instalments. These are as follows:

- £2,820,134 repayable in 11 years 2 months subject to interest at 2.41% over base;
- £428,209 repayable in 11 years 11 months subject to interest at 2.41% over base;
- £714,122 repayable in 13 years 7 months subject to interest at 2.75% over base.

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

23

Obligations under leases and hire purchase contracts

Group

Finance leases

The hire purchase liabilities are secured on the assets they relate to.

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

23,456

30,957

Later than one year and not later than five years

-

23,531

23,456

54,488

24

Related party transactions

Group

Key management compensation

2024
£

2023
£

Salaries and other short term employee benefits

142,581

67,714

Transactions with directors

2024

At 1 February 2023
£

Advances to director
£

Repayments by director
£

At 31 January 2024
£

N. A. Gates

Director's loan account

124,698

114,519

(251,804)

(12,587)

K. G. Gates

Director's loan account

(36,633)

107,518

(70,885)

-

J. E. Gates

Director's loan account

(37,793)

6,500

(20,674)

(51,967)

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

2023

At 1 February 2022
£

Advances to director
£

Repayments by director
£

At 31 January 2023
£

N. A. Gates

Director's loan account

(34,438)

176,421

(17,285)

124,698

K. G. Gates

Director's loan account

(85,783)

69,666

(20,516)

(36,633)

J. E. Gates

Director's loan account

(41,724)

9,738

(5,807)

(37,793)

Summary of transactions with other related parties

At the balance sheet date, a member of the key management and a close family member of the directors was owed £nil (2023 - £42,147).

During the year the group has had commercial use of land owned by the Nigel Gates LLP and N. A. Gates, a director and shareholder of the group, for a rental charge of £15,000 (2023 - £12,500).

 

Company

Transactions with directors

2024

At 1 February 2023
£

Advances to director
£

At 31 January 2024
£

N. A. Gates

Director's loan account

(8,000)

8,000

-

K. G. Gates

Director's loan account

(8,000)

8,000

-

J. E. Gates

Director's loan account

(24,000)

24,000

-

 

Gates Family Holdings Ltd

Notes to the Financial Statements for the Year Ended 31 January 2024

2023

At 1 February 2022
£

At 31 January 2023
£

N. A. Gates

Director's loan account

(8,000)

(8,000)

K. G. Gates

Director's loan account

(8,000)

(8,000)

J. E. Gates

Director's loan account

(24,000)

(24,000)

25

Non adjusting events after the financial period

At the time of approving these financial statements the directors are at an advanced stage, and intend to enter into an agreement to acquire a new site under a long term lease arrangement. If successful the directors expect to commence trading from this site in early February 2025.