Kernock Park Plants Limited 03297350 false 2023-10-01 2024-09-30 2024-09-30 The principal activity of the company is that of growing and selling ornamental flowers and plants, primarily young plants. Digita Accounts Production Advanced 6.30.9574.0 true true true false true 03297350 2023-10-01 2024-09-30 03297350 2024-09-30 03297350 bus:OrdinaryShareClass1 2024-09-30 03297350 bus:OrdinaryShareClass2 2024-09-30 03297350 bus:OrdinaryShareClass3 2024-09-30 03297350 bus:OrdinaryShareClass4 2024-09-30 03297350 bus:OrdinaryShareClass5 2024-09-30 03297350 bus:OtherShareClass1 2024-09-30 03297350 bus:PreferenceShareClass1 2024-09-30 03297350 bus:PreferenceShareClass2 2024-09-30 03297350 bus:PreferenceShareClass3 2024-09-30 03297350 bus:PreferenceShareClass4 2024-09-30 03297350 bus:PreferenceShareClass5 2024-09-30 03297350 bus:Consolidated 2024-09-30 03297350 core:AcceleratedTaxDepreciationDeferredTax 2024-09-30 03297350 core:FairValueMovementsOnFinancialInstrumentsDeferredTax 2024-09-30 03297350 core:ProvisionsDeferredTax 2024-09-30 03297350 core:RevaluationPropertyDeferredTax 2024-09-30 03297350 core:FurtherSpecificReserve1ComponentTotalEquity 2024-09-30 03297350 core:RetainedEarningsAccumulatedLosses 2024-09-30 03297350 core:ShareCapital 2024-09-30 03297350 core:FinancialAssetsDesignatedFairValueThroughProfitOrLoss core:Non-currentFinancialInstruments 2024-09-30 03297350 core:CurrentFinancialInstruments 2024-09-30 03297350 core:CurrentFinancialInstruments core:WithinOneYear 2024-09-30 03297350 core:Non-currentFinancialInstruments core:AfterOneYear 2024-09-30 03297350 core:Goodwill 2024-09-30 03297350 core:BetweenTwoFiveYears 2024-09-30 03297350 core:WithinOneYear 2024-09-30 03297350 core:FurnitureFittingsToolsEquipment 2024-09-30 03297350 core:LandBuildings 2024-09-30 03297350 core:MotorVehicles 2024-09-30 03297350 core:OtherPropertyPlantEquipment 2024-09-30 03297350 core:DeferredTaxation 2024-09-30 03297350 bus:FRS102 2023-10-01 2024-09-30 03297350 bus:Audited 2023-10-01 2024-09-30 03297350 bus:FullAccounts 2023-10-01 2024-09-30 03297350 bus:RegisteredOffice 2023-10-01 2024-09-30 03297350 bus:CompanySecretaryDirector1 2023-10-01 2024-09-30 03297350 bus:Director2 2023-10-01 2024-09-30 03297350 bus:Director3 2023-10-01 2024-09-30 03297350 bus:OrdinaryShareClass1 2023-10-01 2024-09-30 03297350 bus:OrdinaryShareClass2 2023-10-01 2024-09-30 03297350 bus:OrdinaryShareClass3 2023-10-01 2024-09-30 03297350 bus:OrdinaryShareClass4 2023-10-01 2024-09-30 03297350 bus:OrdinaryShareClass5 2023-10-01 2024-09-30 03297350 bus:OtherShareClass1 2023-10-01 2024-09-30 03297350 bus:PreferenceShareClass1 2023-10-01 2024-09-30 03297350 bus:PreferenceShareClass2 2023-10-01 2024-09-30 03297350 bus:PreferenceShareClass3 2023-10-01 2024-09-30 03297350 bus:PreferenceShareClass4 2023-10-01 2024-09-30 03297350 bus:PreferenceShareClass5 2023-10-01 2024-09-30 03297350 bus:Consolidated 2023-10-01 2024-09-30 03297350 bus:PrivateLimitedCompanyLtd 2023-10-01 2024-09-30 03297350 4 2023-10-01 2024-09-30 03297350 core:FurtherSpecificReserve1ComponentTotalEquity 2023-10-01 2024-09-30 03297350 core:RetainedEarningsAccumulatedLosses 2023-10-01 2024-09-30 03297350 core:ShareCapital 2023-10-01 2024-09-30 03297350 countries:UnitedKingdom 2023-10-01 2024-09-30 03297350 core:Goodwill 2023-10-01 2024-09-30 03297350 core:PlantEquipmentUnderOperatingLeases 2023-10-01 2024-09-30 03297350 core:Buildings 2023-10-01 2024-09-30 03297350 core:FurnitureFittingsToolsEquipment 2023-10-01 2024-09-30 03297350 core:LandBuildings 2023-10-01 2024-09-30 03297350 core:MotorVehicles 2023-10-01 2024-09-30 03297350 core:OfficeEquipment 2023-10-01 2024-09-30 03297350 core:OtherPropertyPlantEquipment 2023-10-01 2024-09-30 03297350 core:DeferredTaxation 2023-10-01 2024-09-30 03297350 core:OtherRelatedParties 2023-10-01 2024-09-30 03297350 core:OtherRelatedParties core:RenderingOrReceivingServices 2023-10-01 2024-09-30 03297350 core:UKTax 2023-10-01 2024-09-30 03297350 1 2023-10-01 2024-09-30 03297350 countries:EnglandWales 2023-10-01 2024-09-30 03297350 2023-09-30 03297350 core:FurtherSpecificReserve1ComponentTotalEquity 2023-09-30 03297350 core:RetainedEarningsAccumulatedLosses 2023-09-30 03297350 core:ShareCapital 2023-09-30 03297350 core:Goodwill 2023-09-30 03297350 core:FurnitureFittingsToolsEquipment 2023-09-30 03297350 core:LandBuildings 2023-09-30 03297350 core:MotorVehicles 2023-09-30 03297350 core:OtherPropertyPlantEquipment 2023-09-30 03297350 core:DeferredTaxation 2023-09-30 03297350 2022-10-01 2023-09-30 03297350 2023-09-30 03297350 bus:OrdinaryShareClass1 2023-09-30 03297350 bus:OrdinaryShareClass2 2023-09-30 03297350 bus:OrdinaryShareClass3 2023-09-30 03297350 bus:OrdinaryShareClass4 2023-09-30 03297350 bus:OrdinaryShareClass5 2023-09-30 03297350 bus:OtherShareClass1 2023-09-30 03297350 bus:PreferenceShareClass1 2023-09-30 03297350 bus:PreferenceShareClass2 2023-09-30 03297350 bus:PreferenceShareClass3 2023-09-30 03297350 bus:PreferenceShareClass4 2023-09-30 03297350 bus:PreferenceShareClass5 2023-09-30 03297350 core:AcceleratedTaxDepreciationDeferredTax 2023-09-30 03297350 core:FairValueMovementsOnFinancialInstrumentsDeferredTax 2023-09-30 03297350 core:ProvisionsDeferredTax 2023-09-30 03297350 core:RevaluationPropertyDeferredTax 2023-09-30 03297350 core:CurrentFinancialInstruments 2023-09-30 03297350 core:CurrentFinancialInstruments core:WithinOneYear 2023-09-30 03297350 core:Non-currentFinancialInstruments core:AfterOneYear 2023-09-30 03297350 core:BetweenTwoFiveYears 2023-09-30 03297350 core:WithinOneYear 2023-09-30 03297350 core:FurnitureFittingsToolsEquipment 2023-09-30 03297350 core:LandBuildings 2023-09-30 03297350 core:MotorVehicles 2023-09-30 03297350 core:OtherPropertyPlantEquipment 2023-09-30 03297350 core:OtherRelatedParties 2023-09-30 03297350 bus:OrdinaryShareClass1 2022-10-01 2023-09-30 03297350 bus:OrdinaryShareClass2 2022-10-01 2023-09-30 03297350 bus:OrdinaryShareClass3 2022-10-01 2023-09-30 03297350 bus:OrdinaryShareClass4 2022-10-01 2023-09-30 03297350 bus:OrdinaryShareClass5 2022-10-01 2023-09-30 03297350 bus:OtherShareClass1 2022-10-01 2023-09-30 03297350 4 2022-10-01 2023-09-30 03297350 core:FurtherSpecificReserve1ComponentTotalEquity 2022-10-01 2023-09-30 03297350 core:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 03297350 core:ShareCapital 2022-10-01 2023-09-30 03297350 countries:UnitedKingdom 2022-10-01 2023-09-30 03297350 core:PlantEquipmentUnderOperatingLeases 2022-10-01 2023-09-30 03297350 core:OtherRelatedParties core:RenderingOrReceivingServices 2022-10-01 2023-09-30 03297350 core:UKTax 2022-10-01 2023-09-30 03297350 2022-09-30 03297350 core:FurtherSpecificReserve1ComponentTotalEquity 2022-09-30 03297350 core:RetainedEarningsAccumulatedLosses 2022-09-30 03297350 core:ShareCapital 2022-09-30 iso4217:GBP xbrli:pure xbrli:shares

Kernock Park Plants Limited

Annual Report and Financial Statements
Year Ended 30 September 2024

Registration number: 03297350

 

Kernock Park Plants Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 26

 

Kernock Park Plants Limited

Company Information

Directors

Mr R F Harnett

Mrs J P Harnett

Mr B R Harnett

Company secretary

Mr R F Harnett

Registered office

Kernock Park Pillaton
Saltash
Cornwall
PL12 6RY

Auditors

PKF Francis Clark
Statutory Auditor
Unit 18, 23 Melville Building East
Royal William Yard
Plymouth
Devon
PL1 3GW

 

Kernock Park Plants Limited

Strategic Report for the Year Ended 30 September 2024

The directors present their strategic report for the year ended 30 September 2024.

Principal activity

The principal activity of the company is that of growing and selling ornamental flowers and plants, primarily young plants.

Fair review of the business

It is reasonable to say that the year had decent potential that was not fully realised. The unseasonally wet and cool weather through the key sales months, did not allow for the additional orders that typically emerge from more favourable weather years. Growers and other customers were often committed to try to sell what they planned, but less intent on increasing their risk. So, whilst we experienced increased turnover through strengthening our offer and marketing to our loyal customer base, we did not realise the full potential that the season could well have delivered. The cautionary approach therefore continued to be the dominant strategy from our customers.

Whilst cost of inputs generally increased by up to 10%, the actual cost of sales has been held due to a more stringent buying strategy with strong focus on anticipated customer requirement. Labour costs increased as was to be expected following the continued increase in salaries but saw a slight reduction when considering percentage of turnover, through effective planning matching labour input with production as far as possible.

Principal risks and uncertainties

The Great British weather has well and truly been reinstated as the most influential factor determining success of the industry, as has been traditional for many decades. However, continued concerns surrounding the cost of living and external global forces remain at play. Concerns of supply from politically sensitive areas has dictated a more pragmatic strategy to sourcing initial input material. We have continued to deal with the increased difficulties placed upon import and export of live plant material as we enter a new era of the Target Operating Model including Border Control Posts. Financial pressures will be increased from budgetary changes as a new government makes its mark. Businesses such as ours will have to be vigilant for opportunities that increase sales and reduce input costs to be able to navigate these challenges.

We continue to be committed to heavy investment in research and development, aiming to introduce new products and services that engage and captivate our customer base. Our focus remains on items that ensure profitability across the supply chain while also prioritising sustainable growing methods to minimize our environmental impact for the benefit of future generations.

Approved by the Board on 11 April 2025 and signed on its behalf by:

Mr B R Harnett
Director

   
     
 

Kernock Park Plants Limited

Directors' Report for the Year Ended 30 September 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors of the company

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

Mr R F Harnett - Company secretary and director

Mrs J P Harnett

Mr B R Harnett

Objectives and policies

In the opinion of the directors, the company's operations are not exposed to any significant financial risks. However, management monitors and takes action to mitigate the company's price, credit and liquidity risk.

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

Price risk
The company is at risk of volatility in prices of raw materials such as chemicals, compost and oil. The company mitigates its risk to this volatility by working to anticipate a contingency in price setting before orders are quoted.

Credit risk
The company works to mitigate credit risk by running a credit application process before taking on a new customer. Outstanding debt is actively monitored, and credit terms are updated when necessary.

Liquidity risk
There is a risk that the company could over trade and have insufficient funds available to pay debts as they fall due. This risk is mitigated by the fact that stock holdings are carefully managed and rapidly turned over, any outstanding debts are actively chased and good relationships are maintained with suppliers.

Future developments

We continue to develop and seek new products with a constant eye on innovation and better performance. We are developing new customers and more contract work for specific partners that wish to use our facilities. We also have an eye on other potential revenue streams outside of ornamental horticulture, so with our facilities we are not necessarily fixed in our current model and product portfolio. We also have a constant research and development program in new processes, production methods and technologies.

Research and development

As mentioned in future developments, we have a constant research and development program in new processes, production methods and technologies.

 

Kernock Park Plants Limited

Directors' Report for the Year Ended 30 September 2024

Going concern

We anticipate an increase in turnover for the financial year ending September 2025. Whilst it will not hit the heights of YE 2020/21, interest in gardening and plants remains strong, we explore new opportunities and products and many customers are not holding significant amounts of excess stock as they were this time last year, so need to replenish their supplies.

We are placing orders with our suppliers accordingly and we are optimistic that some momentum will be regained into the coming years and beyond. The upcoming minimum wage increase means that labour costs are inevitably going to be higher this year along with ever rising prices of materials, transport and energy. We recognise this and are constantly striving to find ways to improve our own efficiency and minimise the effect that these increases have on our own productivity and profitability, through consolidating inputs and outputs, reviewing environmental controls or revisiting potential technological advances. As before, we start the year with no borrowing, a strong asset foundation, a large and diverse customer base and believe we are in a strong position to progress through another year of trading and beyond.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 11 April 2025 and signed on its behalf by:

Mr B R Harnett
Director

   
     
 

Kernock Park Plants Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

 

Kernock Park Plants Limited

Independent Auditor's Report to the Members of Kernock Park Plants Limited

Opinion

We have audited the financial statements of Kernock Park Plants Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 September 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.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

Kernock Park Plants Limited

Independent Auditor's Report to the Members of Kernock Park Plants Limited

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the 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 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 5, 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 Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Kernock Park Plants Limited

Independent Auditor's Report to the Members of Kernock Park Plants Limited

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the company which were contrary to applicable laws and regulations, including fraud.

We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting.

Audit procedures performed by the engagement team include, but were not limited to, discussion and inquiries with management of compliance with laws and regulations and review of correspondence and contracts with third parties. We also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. 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 omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the 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.

......................................
James Barrett FCA (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Unit 18, 23 Melville Building East
Royal William Yard
Plymouth
Devon
PL1 3GW

11 April 2025

 

Kernock Park Plants Limited

Profit and Loss Account

Year Ended 30 September 2024

Note

2024
£

2023
£

Turnover

3

4,835,493

4,409,054

Cost of sales

 

(3,670,241)

(3,450,298)

Gross profit

 

1,165,252

958,756

Administrative expenses

 

(981,456)

(971,803)

Other operating income

4

44,582

38,094

Operating profit

5

228,378

25,047

Gain on financial assets at fair value through profit and loss

 

211,516

80,969

Other interest receivable and similar income

9

64,496

31,713

Interest payable and similar expenses

10

(20,000)

(20,000)

   

256,012

92,682

Profit before tax

 

484,390

117,729

Tax on profit

11

(105,040)

(36,785)

Profit for the financial year

 

379,350

80,944

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Kernock Park Plants Limited

Balance Sheet

30 September 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

13

1,357,349

1,494,874

Other financial assets

14

1,650,648

1,448,731

 

3,007,997

2,943,605

Current assets

 

Stocks

15

40,960

41,575

Debtors

16

756,897

496,944

Cash at bank and in hand

 

2,895,045

2,855,733

 

3,692,902

3,394,252

Creditors: Amounts falling due within one year

18

(1,598,639)

(1,413,072)

Net current assets

 

2,094,263

1,981,180

Total assets less current liabilities

 

5,102,260

4,924,785

Creditors: Amounts falling due after more than one year

18

(22,068)

(25,963)

Provisions for liabilities

21

(219,459)

(193,439)

Net assets

 

4,860,733

4,705,383

Capital and reserves

 

Called up share capital

2,300

2,300

Fair value reserves

427,807

269,170

Profit and loss account

4,430,626

4,433,913

Shareholders' funds

 

4,860,733

4,705,383

Approved and authorised by the Board on 11 April 2025 and signed on its behalf by:
 

Mr B R Harnett
Director

   
     

Company Registration Number: 03297350

 

Kernock Park Plants Limited

Statement of Changes in Equity

Year Ended 30 September 2024

Share capital
£

Fair value reserve
£

Profit and loss account
£

Total
£

At 1 October 2023

2,300

269,170

4,433,913

4,705,383

Profit for the year

-

-

379,350

379,350

Total comprehensive income

-

-

379,350

379,350

Dividends

-

-

(224,000)

(224,000)

Fair value adjustments

-

158,637

(158,637)

-

At 30 September 2024

2,300

427,807

4,430,626

4,860,733

Share capital
£

Fair value reserves
£

Profit and loss account
£

Total
£

At 1 October 2022

2,300

208,443

4,437,696

4,648,439

Profit for the year

-

-

80,944

80,944

Dividends

-

-

(24,000)

(24,000)

Fair value adjustments

-

60,727

(60,727)

-

At 30 September 2023

2,300

269,170

4,433,913

4,705,383



 

 

Kernock Park Plants Limited

Statement of Cash Flows

Year Ended 30 September 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

379,350

80,944

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

190,452

233,309

Finance income

9

(64,496)

(31,713)

Finance costs

10

20,000

20,000

Income tax expense

11

105,040

36,785

Fair value changes in investment portfolio

 

(211,516)

(80,969)

 

418,830

258,356

Working capital adjustments

 

Decrease in stocks

15

615

7,806

Increase in trade debtors

16

(259,953)

(1,086)

Increase/(decrease) in trade creditors

18

135,738

(111,405)

Decrease in deferred income, including government grants

 

(736)

(19,420)

Cash generated from operations

 

294,494

134,251

Income taxes paid

11

(32,350)

(5,891)

Net cash flow from operating activities

 

262,144

128,360

Cash flows from investing activities

 

Interest received

9

64,496

31,713

Acquisitions of tangible assets

(52,927)

(4,366)

Net income and expenditure on investments

 

9,599

9,764

Net cash flows from investing activities

 

21,168

37,111

Cash flows from financing activities

 

Interest on preference shares

 

(20,000)

(20,000)

Dividends paid

23

(224,000)

(24,000)

Net cash flows from financing activities

 

(244,000)

(44,000)

Net increase in cash and cash equivalents

 

39,312

121,471

Cash and cash equivalents at 1 October

 

2,855,733

2,734,262

Cash and cash equivalents at 30 September

 

2,895,045

2,855,733

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Kernock Park Pillaton
Saltash
Cornwall
PL12 6RY

These financial statements were authorised for issue by the Board on 11 April 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

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

Going concern

After preparing forecasts using expected and actual orders for the next financial year and considering the asset position of the company, the Board believes that the company has adequate resources to continue trading. More details can be found in the Strategic Report. For these reasons the financial statements have been prepared on a going concern basis.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

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

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Buildings

2% straight line

Motor vehicles

25% reducing balance

Furniture, fittings and equipment

33% straight line

Plant and machinery

25% reducing balance

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Stocks

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

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

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:

• Financial investments held at fair value,
• Short term trade and other debtors and creditors; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

3

Revenue

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

UK

4,835,493

4,409,054

4

Other operating income

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

2024
£

2023
£

Government grants

4,583

5,390

Sub lease rental income

38,709

30,697

Miscellaneous other operating income

1,290

2,007

44,582

38,094

5

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

190,452

233,309

Foreign exchange gains

-

(521)

Operating lease expense - plant and machinery

6,936

6,756

6

Staff costs

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

2024
£

2023
£

Wages and salaries

1,686,239

1,585,955

Social security costs

144,376

131,175

Pension costs, defined contribution scheme

146,641

150,893

Other employee expense

7,654

6,395

1,984,910

1,874,418

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

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

2024
No.

2023
No.

Production

49

52

Administration and support

17

17

66

69

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

11,200

10,356

Contributions paid to money purchase schemes

120,000

120,000

131,200

130,356

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

2024
No.

2023
No.

Accruing benefits under money purchase pension scheme

1

1

8

Auditor's remuneration

2024
£

2023
£

Audit of the financial statements

11,000

10,500


 

9

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

64,474

31,713

Other finance income

22

-

64,496

31,713

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

10

Interest payable and similar expenses

2024
£

2023
£

Interest on preference shares

20,000

20,000

11

Taxation

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

2024
£

2023
£

Current taxation

UK corporation tax

79,020

32,328

Deferred taxation

Arising from origination and reversal of timing differences

26,020

4,457

Tax expense in the income statement

105,040

36,785

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 22.01%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

484,390

117,729

Corporation tax at standard rate

121,098

25,912

Effect of revenues exempt from taxation

(53,164)

(17,820)

Effect of expense not deductible in determining taxable profit (tax loss)

10,673

8,864

Deferred tax expense relating to changes in tax rates or laws

52,879

46,373

Decrease from effect of tax incentives

-

(270)

Tax decrease from effect of adjustment in research and development tax credit

(26,446)

(26,274)

Total tax charge

105,040

36,785

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Fixed asset timing differences

-

59,861

Provisions timing differences

-

(1,662)

Fair value movement on property

-

71,100

Fair value movement on investments

-

90,160

-

219,459

2023

Asset
£

Liability
£

Fixed asset timing differences

-

85,573

Provisions timing differences

-

(515)

Fair value movement on property

-

71,100

Fair value movement on investments

-

37,281

-

193,439

12

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 October 2023

1,000,000

1,000,000

At 30 September 2024

1,000,000

1,000,000

Amortisation

At 1 October 2023

1,000,000

1,000,000

At 30 September 2024

1,000,000

1,000,000

Carrying amount

At 30 September 2024

-

-

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

13

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
£

Total
£

Cost or valuation

At 1 October 2023

900,000

50,325

82,650

2,810,894

3,843,869

Additions

-

-

-

52,927

52,927

At 30 September 2024

900,000

50,325

82,650

2,863,821

3,896,796

Depreciation

At 1 October 2023

63,000

48,455

69,003

2,168,537

2,348,995

Charge for the year

18,000

1,870

3,413

167,169

190,452

At 30 September 2024

81,000

50,325

72,416

2,335,706

2,539,447

Carrying amount

At 30 September 2024

819,000

-

10,234

528,115

1,357,349

At 30 September 2023

837,000

1,870

13,647

642,357

1,494,874

Included within the net book value of land and buildings above is £819,000 (2023 - £837,000) in respect of freehold land and buildings.
 

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

14

Other investments

Financial assets at fair value through profit and loss
£

Total
£

Non-current financial assets

Cost or valuation

At 1 October 2023

1,448,731

1,448,731

Fair value adjustments

201,917

201,917

At 30 September 2024

1,650,648

1,650,648

Impairment

At 30 September 2024

-

-

Carrying amount

At 30 September 2024

1,650,648

1,650,648

15

Stocks

2024
£

2023
£

Other inventories

40,960

41,575

16

Debtors

2024
£

2023
£

Trade debtors

479,662

303,999

Other debtors

26,438

27,457

Prepayments

150,797

50,685

Accrued income

100,000

114,803

756,897

496,944

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

17

Cash and cash equivalents

2024
£

2023
£

Cash on hand

3,054

3,549

Cash at bank

2,891,991

2,852,184

2,895,045

2,855,733

18

Creditors

Note

2024
£

2023
£

Due within one year

 

Loans and borrowings

19

1,000,000

1,000,000

Trade creditors

 

37,627

47,085

Corporation tax

11

78,998

32,328

Social security and other taxes

 

142,378

139,199

Other creditors

 

131,194

106,869

Outstanding defined contribution pension costs

 

4,587

4,806

Accruals

 

156,762

38,851

Deferred income

 

47,093

43,934

 

1,598,639

1,413,072

Due after one year

 

Deferred income

 

22,068

25,963

19

Loans and borrowings

Current loans and borrowings

2024
£

2023
£

Redeemable preference shares

1,000,000

1,000,000

Redeemable preference shares

The redeemable preference shares are redeemable at the option of the holder. They are redeemable at £1 per share and carry no voting rights. On a winding up of the company the holders of the shares have a right to receive a pari passu distribution. Winding up value for each redeemable preference share is £1. Holders are entitled to fixed cumulative preferential dividends at the rate of 2% per annum. The dividends are recognised as an interest expense in the profit and loss.

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

20

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

6,074

8,609

Later than one year and not later than five years

9,744

15,817

15,818

24,426

The amount of non-cancellable operating lease payments recognised as an expense during the year was £7,275 (2023 - £9,943).

21

Provisions for liabilities

Deferred tax
£

Total
£

At 1 October 2023

193,439

193,439

Increase in existing provisions

26,020

26,020

At 30 September 2024

219,459

219,459

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

22

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary B shares of £1 each

100

100

100

100

Ordinary C shares of £1 each

100

100

100

100

Ordinary D shares of £1 each

100

100

100

100

Ordinary E shares of £1 each

100

100

100

100

Ordinary Y shares of £1 each

1,800

1,800

1,800

1,800

Ordinary Z shares of £1 each

100

100

100

100

Preference shares of £1 each

990,000

990,000

990,000

990,000

Preference A shares of £1 each

2,426

2,426

2,426

2,426

Preference B shares of £1 each

2,426

2,426

2,426

2,426

Preference C shares of £1 each

2,426

2,426

2,426

2,426

Preference D shares of £1 each

2,722

2,722

2,722

2,722

1,002,300

1,002,300

1,002,300

1,002,300

Redeemable preference shares

The redeemable preference shares are redeemable at the option of the holder. They are redeemable at £1 per share and carry no voting rights. On a winding up of the company the holders of the shares have a right to receive a pari passu distribution. Winding up value for each redeemable preference share is £1. The redeemable preference, redeemable preference A, redeemable preference B, redeemable preference C and redeemable preference D shares are recognised as a liability in note 20. Holders are entitled to fixed cumulative preferential dividends at the rate of 2% per annum. The dividends are recognised as an interest expense in the profit and loss.

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

23

Dividends

Interim dividends paid

2024
£

2023
£

Interim dividend of £Nil per each Ordinary B shares

-

-

Interim dividend of £Nil per each Ordinary C shares

-

-

Interim dividend of £1,120.00 (2023 - £120.00) per each Ordinary D shares

112,000

12,000

Interim dividend of £Nil per each Ordinary E shares

-

-

Interim dividend of £Nil per each Ordinary Y shares

-

-

Interim dividend of £1,200.00 (2023 - £120.00) per each Ordinary Z shares

112,000

12,000

224,000

24,000

24

Commitments

Capital commitments

Kernock Park Plants Limited are commited to buying two robotic propogation machines that they have already paid deposits for.
The total amount contracted for but not provided in the financial statements was £275,849 (2023 - £Nil).

25

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £146,641 (2023 - £150,893).

Contributions totalling £4,587 (2023 - £4,806) were payable to the scheme at the end of the year and are included in creditors.

 

Kernock Park Plants Limited

Notes to the Financial Statements

Year Ended 30 September 2024

26

Related party transactions

Summary of transactions with other related parties

A director of the company is also a director of Proven Winners Europe Limited.
 

Income and receivables from related parties

2024

Other related parties
£

Receipt of services

50,964

2023

Other related parties
£

Receipt of services

38,843

Amounts receivable from related party

4,824

Expenditure with and payables to related parties

2024

Other related parties
£

Rendering of services

67,414

2023

Other related parties
£

Rendering of services

13,452

Amounts payable to related party

2,937

27

Parent and ultimate parent undertaking

The ultimate controlling party is the directors who own 100% of the called up share capital.