REGISTERED NUMBER: 02158288 (England and Wales) |
BAY TREE NURSERIES LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
REGISTERED NUMBER: 02158288 (England and Wales) |
BAY TREE NURSERIES LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 | to | 3 |
Report of the Directors | 4 |
Report of the Independent Auditors | 5 | to | 8 |
Consolidated Statement of Comprehensive Income | 9 |
Consolidated Statement of Financial Position | 10 |
Company Statement of Financial Position | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Statement of Cash Flows | 14 |
Notes to the Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Financial Statements | 16 | to | 27 |
BAY TREE NURSERIES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 AUGUST 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Enterprise Way |
Pinchbeck |
Spalding |
Lincolnshire |
PE11 3YR |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
The directors present their strategic report of the company and the group for the year ended 31 August 2024. |
REVIEW OF BUSINESS |
Despite difficult trading conditions during 2023/24 the Bay Tree consolidated accounts reported a pre-tax profit of £220,156 from sales of £7,446,216. |
2023/24 financial year has been a turbulent year, with the continuation of the war in Ukraine and the one in and around Israel. The British Government was in turmoil and labour voted in during July 24. Energy prices increased at a slower rate and inflation seemed to settle around 3% |
No assets at either site will require impairment. Depreciation will be calculated in the normal way for the next financial year. Any asset purchase made in 2024 will be considered and comply with the both group and bank policies. |
All current liabilities are paid in full, including the vat and corporation tax to HMRC. Suppliers are paid in full and in a timely manner in accordance to their negotiated trade agreements. |
Cost savings are reviewed on an ongoing basis to ensure best price is paid. These include utility bills, credit card and cash collection charges and other overheads. Wastage is monitored and recorded and savings made where possible with upcycling and recycling. |
The bank has agreed to an ongoing overdraft for both sites. The overdrafts are in place for 'just in case' scenarios and not required for the day to day running of the business. |
The Weston food hall still exceeds all targets and is now established within the community. |
Our franchises continue to support us and there has been interest shown by other parties to come on site. Klass opened in late August 23 and Bonmarche opened their site October 23. Our customer base is very loyal and we have very dedicated staff that go above and beyond their job role. We have maintained some of the procedures introduced due to COVID-19, but our customers once again have the freedom to move around our site in any direction. This increase is reflected in the turnover figure. |
Over the last year we have improved and increased our online presence. Our website and web shop have more traffic and showing more sales than in the past. We did sell one of our investment properties, to help consolidate our portfolio. |
The next twelve months of trading will continue to test us and ensure that we continue to innovate. We must retain the customers that we have and entice new ones to shop with us. It is a fact that high streets and retail outlets are struggling but I feel garden centres when promoted and managed correctly will keep on drawing customers in. |
Our main strategy for 2024/25 will be: |
- To tighten stock control. |
- To monitor spend closely and to ensure that any variances in overheads are investigated. |
- Ensuring that our online presence continues to be positive and current. |
- To foresee any problems before they manifest. |
- To look at our energy use and look to alternative supplies. |
- To keep up to date with any government guidelines. |
- To take advantage of any government assistance. |
- To continue to train and retain our core members of staff. |
- To give our customers the best service we can even in difficult condition. |
In my opinion, both sites are positive going concerns and that whilst next year will be challenging, we are best prepared for any obstacles that come our way. |
KEY PERFORMANCE INDICATORS |
The main key performance indicator for the group is the gross profit margin as seen in the consolidated profit and loss account. Given the straightforward nature of the group, the directors are of the opinion that a more detailed analysis using key performance indicators is not necessary for an understanding of the development, performance or position. |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 AUGUST 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The major risks that the group faces are from competition from new garden centres and the consolidation being seen in the industry. |
A second risk faced by the group is that of reduced disposable income of customers due to the inflation, interest rate rises and energy prices. |
Both of these risks are mitigated by the group's reputation which has helped to retain a loyal customer base. The group also offers a wide range within its centre to be a destination, not just a garden centre. We have increased production in our nursery to help to mitigate cost inflation. This also endorses our greener policy because we use less transport when growing our own plants on site. |
A third risk is energy prices. Prices seem to increase daily with little or no government help. The business rates may be increased to pre COVID-19 levels which will have a major impact on costs. |
A final risk is the weather, as bad weather in the key sales period between April and July reduces customer gardening activities and thus customer spending. |
ON BEHALF OF THE BOARD: |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 August 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of the operation of garden centres. |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
B Ordinary £1 | - | 5.603p | - 9 April 2024 |
C Ordinary £1 | - | 0.625p | - 9 April 2024 |
The total distribution of dividends for the year ended 31 August 2024 will be £ 53,500 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group 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 then apply them consistently; |
- | make judgements 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 company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BAY TREE NURSERIES LIMITED |
Opinion |
We have audited the financial statements of Bay Tree Nurseries Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 of the parent company affairs as at 31 August 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 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 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 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 and 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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. |
Opinions on other matters 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BAY TREE NURSERIES LIMITED |
Matters on which we are required to report by exception |
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 Report of the Directors. |
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 four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BAY TREE NURSERIES LIMITED |
Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit. |
The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgemental areas of the financial statements such as depreciation of tangible fixed assets, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in the preparation of the financial statements. We carried out detailed substantive tests on accounting estimates, including reviewing the methods used by management to make those estimates, re-performing the calculation, and reviewing the outcome of prior year estimates. |
Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified the following areas as those most likely to have such an effect: Health and Safety regulations, Food Safety regulations and Employment laws. |
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. This inspection included a review of the external food safety audits conducted within the year for any evidence of non-compliance, in addition to an assessment of the company’s employment and health and safety controls. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
BAY TREE NURSERIES LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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 |
Enterprise Way |
Pinchbeck |
Spalding |
Lincolnshire |
PE11 3YR |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 7,446,216 | 7,045,242 |
Cost of sales | 5,419,823 | 5,025,823 |
GROSS PROFIT | 2,026,393 | 2,019,419 |
Administrative expenses | 2,064,518 | 2,119,498 |
(38,125 | ) | (100,079 | ) |
Other operating income | 335,521 | 270,238 |
OPERATING PROFIT | 4 | 297,396 | 170,159 |
Interest receivable and similar income | 15,525 | 2,018 |
312,921 | 172,177 |
Interest payable and similar expenses | 5 | 92,765 | 80,711 |
PROFIT BEFORE TAXATION | 220,156 | 91,466 |
Tax on profit | 6 | 93,463 | 68,804 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 126,693 | 22,662 |
Profit attributable to: |
Owners of the parent | 126,693 | 22,662 |
Total comprehensive income attributable to: |
Owners of the parent | 126,693 | 22,662 |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 277,244 | 330,110 |
Tangible assets | 10 | 5,045,539 | 5,173,534 |
Investments | 11 | - | - |
Investment property | 12 | 370,436 | 579,289 |
5,693,219 | 6,082,933 |
CURRENT ASSETS |
Stocks | 13 | 911,996 | 943,500 |
Debtors | 14 | 107,629 | 50,102 |
Cash at bank and in hand | 1,505,643 | 997,390 |
2,525,268 | 1,990,992 |
CREDITORS |
Amounts falling due within one year | 15 | 1,127,381 | 923,967 |
NET CURRENT ASSETS | 1,397,887 | 1,067,025 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 7,091,106 | 7,149,958 |
CREDITORS |
Amounts falling due after more than one year | 16 | (993,631 | ) | (1,114,094 | ) |
PROVISIONS FOR LIABILITIES | 20 | (84,680 | ) | (96,262 | ) |
NET ASSETS | 6,012,795 | 5,939,602 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 4,750,000 | 4,750,000 |
Share premium | 22 | 8,898 | 8,898 |
Retained earnings | 22 | 1,253,897 | 1,180,704 |
SHAREHOLDERS' FUNDS | 6,012,795 | 5,939,602 |
The financial statements were approved by the Board of Directors and authorised for issue on 17 January 2025 and were signed on its behalf by: |
N Wallis - Director |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 20 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Share premium | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's profit/(loss) for the financial year | 38,045 | (162,206 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 AUGUST 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 September 2022 | 4,750,000 | 1,212,426 | 8,898 | 5,971,324 |
Changes in equity |
Dividends | - | (54,384 | ) | - | (54,384 | ) |
Total comprehensive income | - | 22,662 | - | 22,662 |
Balance at 31 August 2023 | 4,750,000 | 1,180,704 | 8,898 | 5,939,602 |
Changes in equity |
Dividends | - | (53,500 | ) | - | (53,500 | ) |
Total comprehensive income | - | 126,693 | - | 126,693 |
Balance at 31 August 2024 | 4,750,000 | 1,253,897 | 8,898 | 6,012,795 |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 AUGUST 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 September 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 August 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 August 2024 |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 589,618 | 748,903 |
Interest paid | (92,685 | ) | (80,629 | ) |
Interest element of hire purchase or finance lease rental payments paid |
(80 |
) |
(82 |
) |
Tax paid | (35,230 | ) | (109,743 | ) |
Net cash from operating activities | 461,623 | 558,449 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (49,611 | ) | (312,138 | ) |
Sale of tangible fixed assets | - | 23,500 |
Sale of investment property | 238,432 | - |
Interest received | 15,525 | 2,018 |
Net cash from investing activities | 204,346 | (286,620 | ) |
Cash flows from financing activities |
Loan repayments in year | (96,641 | ) | (62,702 | ) |
Amount withdrawn by directors | (7,575 | ) | (22,786 | ) |
Equity dividends paid | (53,500 | ) | (54,384 | ) |
Net cash from financing activities | (157,716 | ) | (139,872 | ) |
Increase in cash and cash equivalents | 508,253 | 131,957 |
Cash and cash equivalents at beginning of year | 2 | 997,390 | 865,433 |
Cash and cash equivalents at end of year | 2 | 1,505,643 | 997,390 |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 220,156 | 91,466 |
Depreciation charges | 230,472 | 402,142 |
Profit on disposal of fixed assets | (29,579 | ) | (11,972 | ) |
Finance costs | 92,765 | 80,711 |
Finance income | (15,525 | ) | (2,018 | ) |
498,289 | 560,329 |
Decrease in stocks | 31,504 | 213,046 |
(Increase)/decrease in trade and other debtors | (57,527 | ) | 23,418 |
Increase/(decrease) in trade and other creditors | 117,352 | (47,890 | ) |
Cash generated from operations | 589,618 | 748,903 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 August 2024 |
31.8.24 | 1.9.23 |
£ | £ |
Cash and cash equivalents | 1,505,643 | 997,390 |
Year ended 31 August 2023 |
31.8.23 | 1.9.22 |
£ | £ |
Cash and cash equivalents | 997,390 | 865,433 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1.9.23 | Cash flow | At 31.8.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 997,390 | 508,253 | 1,505,643 |
997,390 | 508,253 | 1,505,643 |
Debt |
Debts falling due within 1 year | (48,219 | ) | (23,822 | ) | (72,041 | ) |
Debts falling due after 1 year | (1,114,094 | ) | 120,463 | (993,631 | ) |
(1,162,313 | ) | 96,641 | (1,065,672 | ) |
Total | (164,923 | ) | 604,894 | 439,971 |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 AUGUST 2024 |
1. | GENERAL INFORMATION |
Bay Tree Nurseries Limited is a limited company incorporated in England and Wales. The address of the registered office is given in the company information on page one of these financial statements. The nature of the company's operations and principal activities are detailed in the report of the directors on page 5. |
The presentation currency of the financial statements is the Pound Sterling (£). |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group accounts consolidate the financial statements of the company and its subsidiary undertakings. Intra-group profits are eliminated on consolidation. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
The key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are stock provisions on 'live' products.These are based on knowledge of the product range and review of losses throughout the year. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill arising on the acquisition of a business is capitalised as an intangible asset and amortised against profit over 20 years, or it's expected useful life, whichever is the shorter. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell and after making due allowance for obsolete and slow moving items. |
Financial instruments |
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. |
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 the income statement. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,096,105 | 1,867,007 |
Social security costs | 105,952 | 101,500 |
Other pension costs | 338,343 | 184,330 |
2,540,400 | 2,152,837 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 5 | 5 |
Management & administration | 17 | 16 |
Retail | 76 | 73 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 219,377 | 212,120 |
Directors' pension contributions to money purchase schemes | 105,432 | 84,458 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 63,643 | 63,327 |
Pension contributions to money purchase schemes | 58,187 | 42,868 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 22,363 | 18,198 |
Other operating leases | 749 | 9,788 |
Depreciation - owned assets | 177,606 | 189,276 |
Profit on disposal of fixed assets | (29,579 | ) | (11,972 | ) |
Goodwill amortisation | 52,866 | 212,866 |
Auditors' remuneration | 10,650 | 10,000 |
Auditors' remuneration for non audit work | 3,450 | 2,500 |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest | 92,685 | 80,629 |
Hire purchase interest | 80 | 82 |
92,765 | 80,711 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 105,045 | 29,972 |
Deferred tax | (11,582 | ) | 38,832 |
Tax on profit | 93,463 | 68,804 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 220,156 | 91,466 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
55,039 |
22,867 |
Effects of: |
Expenses not deductible for tax purposes | 23,449 | 223 |
Income not taxable for tax purposes | (81,752 | ) | (56,962 | ) |
Depreciation in excess of capital allowances | 38,146 | 55,739 |
Chargeable gains | 7,395 | - |
Change in tax rates | - | (7,406 | ) |
Income from UK land and buildings | 70,476 | 53,838 |
Non-trading loan relationships | (19,290 | ) | 505 |
Total tax charge | 93,463 | 68,804 |
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
B Ordinary shares of £1 each |
Interim | 49,500 | 46,384 |
C Ordinary shares of £1 each |
Interim | 4,000 | 8,000 |
53,500 | 54,384 |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 September 2023 |
and 31 August 2024 | 1,457,323 |
AMORTISATION |
At 1 September 2023 | 1,127,213 |
Amortisation for year | 52,866 |
At 31 August 2024 | 1,180,079 |
NET BOOK VALUE |
At 31 August 2024 | 277,244 |
At 31 August 2023 | 330,110 |
Company |
Goodwill |
£ |
COST |
At 1 September 2023 |
and 31 August 2024 |
AMORTISATION |
At 1 September 2023 |
Amortisation for year |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 September 2023 | 5,900,777 | 755,394 | 118,583 | 105,443 | 6,880,197 |
Additions | 36,602 | 13,009 | - | - | 49,611 |
At 31 August 2024 | 5,937,379 | 768,403 | 118,583 | 105,443 | 6,929,808 |
DEPRECIATION |
At 1 September 2023 | 1,136,502 | 441,445 | 57,492 | 71,224 | 1,706,663 |
Charge for year | 108,866 | 48,335 | 15,273 | 5,132 | 177,606 |
At 31 August 2024 | 1,245,368 | 489,780 | 72,765 | 76,356 | 1,884,269 |
NET BOOK VALUE |
At 31 August 2024 | 4,692,011 | 278,623 | 45,818 | 29,087 | 5,045,539 |
At 31 August 2023 | 4,764,275 | 313,949 | 61,091 | 34,219 | 5,173,534 |
Included in cost of land and buildings is freehold land of £443,279 (2023 - £443,279) which is not depreciated. |
Company |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 September 2023 |
Additions |
At 31 August 2024 |
DEPRECIATION |
At 1 September 2023 |
Charge for year |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
Included in cost of land and buildings is freehold land of £ 443,279 (2023 - £ 443,279 ) which is not depreciated. |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 September 2023 |
and 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiary |
Registered office: High Road, Weston, Spalding, Lincolnshire, PE12 6JU |
Nature of business: |
% |
Class of shares: | holding |
The financial statements in respect of Bay Tree Hilgay Limited for the year ended 31 August 2024 have not been audited as an exemption has been claimed under section 479a of the Companies Act 2006. Bay Tree Nurseries Limited guarantees the liabilities of Bay Tree Hilgay Limited under section 479c of the Companies Act 2006 in respect of the financial year ended 31 August 2024. |
12. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 September 2023 | 579,289 |
Disposals | (208,853 | ) |
At 31 August 2024 | 370,436 |
NET BOOK VALUE |
At 31 August 2024 | 370,436 |
At 31 August 2023 | 579,289 |
The property was purchased in 2022 and so the purchase price is the valuation used. |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
12. | INVESTMENT PROPERTY - continued |
Company |
Total |
£ |
FAIR VALUE |
At 1 September 2023 |
Disposals | ( |
) |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
The property was purchased in 2022 and so the purchase price is the valuation used. |
13. | STOCKS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Stocks | 911,996 | 943,500 |
There is no material difference between the carrying cost of stocks and its replacement value. |
Provisions totalling £24,633 (2023 - £24,633) are currently being provided for against the total stock figure at the balance sheet date. |
14. | DEBTORS |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 22,465 | 10,376 |
HTA Vouchers | 1,580 | 320 | 1,580 | 320 |
Sundry debtors | 1,675 | 1,672 |
Directors' current accounts | - | 272 | - | 272 |
Prepayments and accrued income | 81,909 | 37,462 |
107,629 | 50,102 |
Amounts falling due after more than one year: |
Amounts owed by group undertakings | - | - |
Aggregate amounts | 107,629 | 50,102 |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 72,041 | 48,219 |
Trade creditors | 482,208 | 411,479 |
Taxation | 99,834 | 30,019 |
Social Security and Taxation | 25,869 | 44,263 | 23,897 | 34,597 |
VAT | 175,344 | 168,681 | 127,517 | 125,505 |
Sundry Creditors | 14,680 | 14,234 | 12,879 | 12,379 |
Directors' current accounts | 48,637 | 56,212 | 48,637 | 56,212 |
Accruals and deferred income | 208,768 | 150,860 |
1,127,381 | 923,967 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans (see note 17) | 993,631 | 1,114,094 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 72,041 | 48,219 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years | 188,596 | 211,423 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 805,035 | 902,671 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Bank loans | 1,065,672 | 1,162,313 |
HSBC Bank plc hold a debenture including a fixed charge over all present and leasehold property; first fixed charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and first floating charge over all assets and undertaking both present and future. |
HSBC Bank plc also holds a first legal charge over the freehold property of the company. |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
19. | FINANCIAL INSTRUMENTS |
Group |
The group has the following financial instruments: |
2024 | 2023 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Trade debtors | 22,465 | 10,376 |
Other debtors | 85,164 | 39,726 |
Financial liabilities measured at amortised cost |
Bank loans and overdraft | 1,065,672 | 1,162,313 |
Trade creditors | 482,208 | 411,482 |
Other creditors | 272,085 | 263,373 |
Company |
The company has the following financial instruments: |
2024 | 2023 |
£ | £ |
Financial assets that are debt instruments measured at amortised cost |
Trade debtors | 22,465 | 10,376 |
Amounts owed by group undertakings | 325,500 | 253,807 |
Other debtors | 52,275 | 26,150 |
Financial liabilities measured at amortised cost |
Bank loans and overdraft | - | - |
Trade creditors | 365,106 | 306,037 |
Amounts owed to group undertakings | - | - |
Other creditors | 184,965 | 166,560 |
There is no interest income or expense for financial assets and liabilities that are not measured at fair value through profit and loss. |
20. | PROVISIONS FOR LIABILITIES |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 84,680 | 96,262 | 66,550 | 75,178 |
Group |
Deferred |
tax |
£ |
Balance at 1 September 2023 | 96,262 |
Credit to Statement of Comprehensive Income during year | (11,582 | ) |
Balance at 31 August 2024 | 84,680 |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
20. | PROVISIONS FOR LIABILITIES - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 September 2023 |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 31 August 2024 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A Ordinary | £1 | 3,226,500 | 3,226,500 |
B Ordinary | £1 | 883,500 | 883,500 |
C Ordinary | £1 | 640,000 | 640,000 |
4,750,000 | 4,750,000 |
22. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 September 2023 | 1,180,704 | 8,898 | 1,189,602 |
Profit for the year | 126,693 | - | 126,693 |
Dividends | (53,500 | ) | - | (53,500 | ) |
At 31 August 2024 | 1,253,897 | 8,898 | 1,262,795 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 September 2023 | 479,002 |
Profit for the year | - |
Dividends | ( |
) | - | ( |
) |
At 31 August 2024 | 463,547 |
Profit and loss account |
The profit and loss account represents cumulative profits and losses net of dividends and other adjustments. |
Share premium account |
The amount above the nominal value received for shares. |
23. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme whose assets are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company and amounted to £338,343 (2023 - £184,330). |
BAY TREE NURSERIES LIMITED (REGISTERED NUMBER: 02158288) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 AUGUST 2024 |
24. | RELATED PARTY DISCLOSURES |
In the year, the company paid wages totalling £372,188 (2023 - £357,578) to family members. |
In the year, the group charged a family member rent of £13,000 (2023 - £13,000). |
25. | ULTIMATE CONTROLLING PARTY |
The group is under the control of R F F Biehler and Mrs Y Biehler due to their combined majority shareholding. |