DINGLE NURSERIES LIMITED
Company registration number 05187764 (England and Wales)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
DINGLE NURSERIES LIMITED
COMPANY INFORMATION
Directors
Mr A C Joseph
Mr D M Joseph
Mr J C Andrew
Miss M T Duncan
(Appointed 8 September 2023)
Company number
05187764
Registered office
Frochas
Welshpool
Powys
SY21 9JD
Auditor
Dyke Yaxley Limited
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
DINGLE NURSERIES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
DINGLE NURSERIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 1 -
Review of the business
Dingle Nurseries Limited is mainly a wholesale business selling to landscape contractors and has a small retail plant centre attached.
Historically, about half of the plants sold are produced on site, with the rest being purchased in from other producers.
Following several years of growth, the current year saw the business incur a small reduction in the level of turnover of 2.7%. Despite the reduction, the continuation of buoyancy in the domestic gardening and building sectors is still having a positive effect on the business.
Following the acquisition of land in previous years, the business has managed to adjust the sales mix between self grown and purchased plants, which in turn has helped maintain the gross margins. The increase in inflation and costs has been implemented into the business model where possible to reduce any impact on the gross profit margin.
The demand for the house building sector is expected to continue for at least several years so we are optimistic about the future. We intend to keep a considerable reserve against recession but also to allow us to buy further large pieces of land if they become available.
Principal risks and uncertainties
The company’s operations and trading strategy are subject to a number of financial risks.
Operational risk
There are some risks on the production area from extreme weather conditions but any losses are kept to a minimum by the experienced staff in this area together with strong processes and controls.
Credit risk
The company ensures that strong credit control processes are in place to minimise any credit risk.
Currency risk
The risk that the financial performance of the company will be adversely affected by fluctuations in foreign currencies is deemed to be low. The company has minimal exposure to foreign currency risk.
The company has in place a thorough risk management process which is actively managed by the Directors.
Key performance indicators
In daily management, the use of KPI’s support accurate decision making based upon data and provide management with guidance on where to place focus. The KPI’s at Board Level detailed below have the following results:
2024 2023
(£000) (£000)
Sales volume (Turnover) 19,384 19,928
Gross profit % 39.13% 34.90%
Cash balances 7,175 4,148
DINGLE NURSERIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 2 -
Mr A C Joseph
Director
2 April 2025
DINGLE NURSERIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 August 2024.
Principal activities
The principal activities of the company are wholesale and retail arboriculturists.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £487,867. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A C Joseph
Mr D M Joseph
Mr J C Andrew
Miss M T Duncan
(Appointed 8 September 2023)
Auditor
The auditor, Dyke Yaxley Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr A C Joseph
Director
2 April 2025
DINGLE NURSERIES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
DINGLE NURSERIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DINGLE NURSERIES LIMITED
- 5 -
Opinion
We have audited the financial statements of Dingle Nurseries Limited (the 'company') for the year ended 31 August 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 August 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
DINGLE NURSERIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DINGLE NURSERIES LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 and 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:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud.
We designed audit procedures to respond to the risk, 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 or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
We have reviewed correspondence with DEFRA surrounding plant licences and imports. Our tests included ensuring that the licences and regulations were being adhered to and reviewing the reports provided by DEFRA to ensure there has been no non compliance.
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
DINGLE NURSERIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DINGLE NURSERIES LIMITED
- 7 -
We did not identify any issues relating to irregularities, including fraud.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Mark Griffiths BA FCA
Senior Statutory Auditor
For and on behalf of Dyke Yaxley Limited
2 April 2025
Chartered Accountants
Statutory Auditor
1 Brassey Road
Old Potts Way
Shrewsbury
Shropshire
SY3 7FA
DINGLE NURSERIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
19,383,808
19,928,261
Cost of sales
(11,799,641)
(12,972,367)
Gross profit
7,584,167
6,955,894
Distribution costs
(748,313)
(857,581)
Administrative expenses
(2,146,494)
(2,060,872)
Other operating income
34,618
10,800
Operating profit
4
4,723,978
4,048,241
Interest receivable and similar income
7
123,336
79,154
Interest payable and similar expenses
8
(10,728)
Profit before taxation
4,847,314
4,116,667
Tax on profit
9
(1,247,743)
(879,368)
Profit for the financial year
3,599,571
3,237,299
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DINGLE NURSERIES LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2024
31 August 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
9,492,978
9,156,295
Investment property
12
207,560
207,560
9,700,538
9,363,855
Current assets
Stocks
13
1,475,927
1,159,515
Debtors
14
4,809,160
5,187,428
Cash at bank and in hand
7,175,009
4,148,121
13,460,096
10,495,064
Creditors: amounts falling due within one year
15
(2,510,837)
(2,331,300)
Net current assets
10,949,259
8,163,764
Total assets less current liabilities
20,649,797
17,527,619
Provisions for liabilities
Deferred tax liability
16
190,440
179,966
(190,440)
(179,966)
Net assets
20,459,357
17,347,653
Capital and reserves
Called up share capital
18
101
101
Share premium account
3,685
3,685
Profit and loss reserves
20,455,571
17,343,867
Total equity
20,459,357
17,347,653
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 2 April 2025 and are signed on its behalf by:
Mr A C Joseph
Director
Company registration number 05187764 (England and Wales)
DINGLE NURSERIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2022
101
3,685
14,637,778
14,641,564
Year ended 31 August 2023:
Profit and total comprehensive income
-
-
3,237,299
3,237,299
Dividends
10
-
-
(531,210)
(531,210)
Reduction of shares
18
(10)
(10)
Issue of new shares
10
-
-
10
Balance at 31 August 2023
101
3,685
17,343,867
17,347,653
Year ended 31 August 2024:
Profit and total comprehensive income
-
-
3,599,571
3,599,571
Dividends
10
-
-
(487,867)
(487,867)
Balance at 31 August 2024
101
3,685
20,455,571
20,459,357
DINGLE NURSERIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
5,317,936
3,734,003
Interest paid
(10,728)
Income taxes paid
(1,018,234)
(937,568)
Net cash inflow from operating activities
4,299,702
2,785,707
Investing activities
Purchase of tangible fixed assets
(1,388,830)
(7,227,787)
Proceeds from disposal of tangible fixed assets
817,024
6,669
Loans received
133,040
Repayment of loans
(336,477)
Interest received
123,336
79,154
Net cash used in investing activities
(784,947)
(7,008,924)
Financing activities
Dividends paid
(487,867)
(531,210)
Net cash used in financing activities
(487,867)
(531,210)
Net increase/(decrease) in cash and cash equivalents
3,026,888
(4,754,427)
Cash and cash equivalents at beginning of year
4,148,121
8,902,548
Cash and cash equivalents at end of year
7,175,009
4,148,121
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
- 12 -
1
Accounting policies
Company information
Dingle Nurseries Limited is a private company limited by shares incorporated in England and Wales. The registered office is Frochas, Welshpool, Powys, SY21 9JD.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents amounts invoiced, excluding value added tax, in respect of the value of goods provided to customers.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is calculated to write off the cost of fixed assets on a straight line basis over their estimated useful lives on a group basis, as follows:
Freehold land
Not depreciated
Property improvements and buildings
15% Straight Line
Plant, implements and machinery
15% Straight Line
Office equipment, fixtures and fittings
25% Straight Line
Motor vehicles
25% Straight Line
Freehold land is not depreciated as carrying value is deemed to be less than the market value.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stock is valued at the lower of cost and net realisable value. The valuation of growing stock is carried out by the directors using actual quantities evaluated at prices from previous market performances and valuations.
Growing stock is valued on the basis of direct cost plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of growing stock.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rentals payable under operating leases are charged on a straight line basis over the term of the lease.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account and are shown within Direct costs.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The key areas where judgement and estimation have been used include calculating depreciation, accruals, prepayments and the fair value of investment properties.
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 16 -
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Wholesale
18,345,555
18,938,138
Retail
1,038,253
990,123
19,383,808
19,928,261
2024
2023
£
£
Other revenue
Interest income
123,336
79,154
Grants received
23,818
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
19,213
(18,360)
Government grants
(23,818)
-
Fees payable to the company's auditor for the audit of the company's financial statements
18,095
15,000
Depreciation of owned tangible fixed assets
294,598
217,175
Profit on disposal of tangible fixed assets
(59,475)
(6,669)
Operating lease charges
99,618
113,800
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management
2
2
Admin
12
12
Production
59
59
Total
73
73
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,225,186
2,018,769
Social security costs
210,474
189,675
Pension costs
131,714
121,272
2,567,374
2,329,716
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
57,296
41,921
Company pension contributions to defined contribution schemes
90,719
60,000
148,015
101,921
Benefits in kind were given to 2 (2023: 2) directors during the financial year. The estimated monetary vale of these benefits in kind were £2,688 (2023: £2,550).
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
115,723
74,778
Other interest income
7,613
4,376
Total income
123,336
79,154
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
115,723
74,778
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
10,728
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 18 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,204,854
835,265
Adjustments in respect of prior periods
32,415
(30)
Total current tax
1,237,269
835,235
Deferred tax
Origination and reversal of timing differences
10,474
44,133
Total tax charge
1,247,743
879,368
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
4,847,314
4,116,667
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.52%)
1,211,829
885,907
Tax effect of expenses that are not deductible in determining taxable profit
1,730
93
Adjustments in respect of prior years
32,415
(30)
Effect of change in corporation tax rate
(192)
Permanent capital allowances in excess of depreciation
(8,705)
(50,543)
Deferred tax
10,474
44,133
Taxation charge for the year
1,247,743
879,368
10
Dividends
2024
2023
£
£
Interim paid
487,867
531,210
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 19 -
11
Tangible fixed assets
Freehold land
Property improvements and buildings
Plant, implements and machinery
Office equipment, fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 September 2023
8,317,206
400,435
911,475
80,175
1,356,367
11,065,658
Additions
823,000
229,820
128,565
207,445
1,388,830
Disposals
(722,000)
(88,694)
(76,394)
(887,088)
At 31 August 2024
8,418,206
630,255
951,346
80,175
1,487,418
11,567,400
Depreciation and impairment
At 1 September 2023
291,654
624,107
80,175
913,427
1,909,363
Depreciation charged in the year
35,409
72,075
187,114
294,598
Eliminated in respect of disposals
(54,228)
(75,311)
(129,539)
At 31 August 2024
327,063
641,954
80,175
1,025,230
2,074,422
Carrying amount
At 31 August 2024
8,418,206
303,192
309,392
462,188
9,492,978
At 31 August 2023
8,317,206
108,781
287,368
442,940
9,156,295
12
Investment property
2024
£
Fair value
At 1 September 2023 and 31 August 2024
207,560
Investment property comprises Brook Cottage. The fair value has been arrived at on an open market value basis by reference to market evidence of transaction prices for similar properties.
Brook Cottage last had a professional valuation 31 July 2020 at a value of £210,000 from Harry Ray & Company, Estate agents in Welshpool.
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,475,927
1,159,515
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 20 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,001,792
4,834,001
Corporation tax recoverable
182,638
95,840
Other debtors
583,978
239,773
Prepayments and accrued income
40,752
17,814
4,809,160
5,187,428
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,374,866
1,470,242
Corporation tax
789,114
483,281
Other taxation and social security
126,420
129,319
Other creditors
141,899
131,269
Accruals and deferred income
78,538
117,189
2,510,837
2,331,300
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
190,440
179,966
2024
Movements in the year:
£
Liability at 1 September 2023
179,966
Charge to profit or loss
10,474
Liability at 31 August 2024
190,440
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 21 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
131,714
121,272
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 22 -
18
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
60 Ordinary A shares of £1 each
60
60
1 Ordinary B share of £1 each
1
1
35 Ordinary E shares of £1 each
35
35
5 Ordinary F shares of £1 each
5
5
101
101
The Ordinary A shares have attached to them the right to a dividend irrespective of whether any dividend is declared in respect of any other shares in the Company. On a winding-up or reduction in the capital of the Company, the holder of Ordinary A shares shall rank pari passu with the Ordinary E and the Ordinary F shares shall be entitled to a repayment of capital in priority to the Ordinary B shares, and subject thereto shall be entitled to participate in the Company's surplus assets up to the sum of £1,500,000 in priority to the Ordinary B Shares. The holder of Ordinary A Shares shall be entitled to receive notice of and attend or vote at any General Meeting by virtue of their holding.
The Ordinary B Shares have attached to them the right to a dividend irrespective of whether any dividend is declared in respect of any other shares in the Company. On a winding-up or reduction in capital in the Company, the holder of Ordinary B shares shall be entitled to share in such of the Company's surplus assets (if any) in excess of £1,500,000 in the proportion: Number of Ordinary B Shares / Total of Ordinary A, B, E and F Shares. The holder of Ordinary B Shares shall not be entitled to receive notice of or attend or vote at any General Meeting by virtue of their holding. If the holder of the Ordinary B Shares leaves the employment of the Company for whatever reason, including death, the Company shall be entitled to buy the Ordinary B Shares and the Ordinary B Shareholder shall sell, at a price in accordance with article 8.11 in the Articles of Association.
The Ordinary E Shares have attached to them the right to a dividend irrespective of whether any dividend is declared in respect of any other shares in the Company. On a winding-up or reduction in the capital of the Company, the holder of Ordinary E shares shall rank pari passu with the Ordinary A and the Ordinary F Shares and be entitled to a repayment of capital in priority to the Ordinary B shares, and subject thereto shall be entitled to participate in the Company's surplus assets up to the sum of £1,500,000 in priority to the Ordinary B Shares. The holder of Ordinary E Shares shall be entitled to receive notice of and attend or vote at any General Meeting by virtue of their holding.
The Ordinary F Shares have attached to them the right to a dividend irrespective of whether any dividend is declared in respect of any other shares in the Company. On a winding-up or reduction in the capital of the Company, the holder of Ordinary F shares shall rank pari passu with the A Ordinary and E Ordinary Shares and be entitled to a repayment of capital in priority to the Ordinary B shares, and subject thereto shall be entitled to participate in the Company's surplus assets up to the sum of £1,500,000 in priority to the Ordinary B Shares. The holder of Ordinary F Shares shall be entitled to receive notice of and attend or vote at any General Meeting by virtue of their holding.
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 23 -
19
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The company paid rent of £71,300 (2023: £71,300) to Mr D Joseph (director), for the occupation of the land and buildings used by the company.
Interest of £6,209 (2023: £4,376) has been charged on overdrawn director's loan accounts.
Dividends
Dividends of £487,867 (2023: £531,210) were paid to the directors and related parties.
Balances
At the year end, the company owes the directors and related parties the following amounts in respect of interest bearing loans:
J C Andrew £117,620 (2023: £124,530)
At the year end, the company is owed by the directors the following amounts in respect of loans made by the company:
A and K Joseph (£200,904) (2023: (£168,546))
D Joseph (£340,247) (2023: (£36,129))
The ultimate controlling party is Mr A C Joseph and Mrs K Joseph who jointly own 100% of the issued ordinary A share capital.
During the year the company made sales to Derwen Garden Centre Limited, a related party, totalling £316,806 (2023: £281,222), there was a balance of £42,826 (2023: £35,098) due to be received at the year end. The company also purchased £50,946 (2023: £40,148) of goods from Derwen Garden Centre, a balance of £15,945 (2023: £346) was due to be paid at the year end.
20
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Dividends totalling £487,867 (2023 - £531,210) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Closing balance
£
£
£
£
Andy & Kathleen Joseph
2.25
168,546
28,081
4,277
200,904
Dafydd Joseph & Tracy Duncan
2.25
36,129
302,194
1,924
340,247
204,675
330,275
6,201
541,151
21
Post balance sheet events
On 13 February 2025 a new holding company (Dingle Nurseries Holdings Limited) was inserted directly above via a share-for-share exchange.
DINGLE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
- 24 -
22
Cash generated from operations
2024
2023
£
£
Profit after taxation
3,599,571
3,237,299
Adjustments for:
Taxation charged
1,247,743
879,368
Finance costs
10,728
Investment income
(123,336)
(79,154)
Gain on disposal of tangible fixed assets
(59,475)
(6,669)
Depreciation and impairment of tangible fixed assets
294,598
217,175
Movements in working capital:
Increase in stocks
(316,412)
(78,193)
Decrease/(increase) in debtors
801,543
(709,340)
(Decrease)/increase in creditors
(126,296)
262,789
Cash generated from operations
5,317,936
3,734,003
23
Analysis of changes in net funds
1 September 2023
Cash flows
31 August 2024
£
£
£
Cash at bank and in hand
4,148,121
3,026,888
7,175,009
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