Company registration number 00722735 (England and Wales)
BALL HORTICULTURAL EUROPE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
BALL HORTICULTURAL EUROPE LIMITED
COMPANY INFORMATION
Directors
A C Ball
W T Billings
A J Shepherd
Secretary
A J Shepherd
Company number
00722735
Registered office
Milton Road
West Adderbury
Banbury
Oxfordshire
OX17 3EY
Auditor
Whitley Stimpson Limited
Penrose House
67 Hightown Road
Banbury
Oxfordshire
OX16 9BE
BALL HORTICULTURAL EUROPE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 7
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Group statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 39
BALL HORTICULTURAL EUROPE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

Business review

We have returned a solid year’s financial performance after a challenging 2023 season.

 

The retail environment was challenging with large wastage in the supply chains as poor weather and low consumer confidence reduced demand.

 

Our production locations continue to come under cost pressure with increases in living wage legislation driving up our costs. We are mitigating some of these costs with investments in advanced robotics.

 

Our diversification strategy into new markets continues and has helped to minimise the disruption to our core business as consumer trends move towards longer lasting plants. Sales to the mail-order sector remain strong and continues to be more resilient than retail.

 

Import/export challenges continue resulting in increased costs and operational challenges. We continue to work with government to look for more workable solutions.

 

Our strategy continues to be a customer solution driven business and to be the industry leading supplier to commercial growers of plant genetic material. We continue to invest in information technology, production and logistics to ensure quality and reliability, and the customer experience is continually advanced.

 

The balance sheet net assets remain strong.

 

The directors continue to look forward with optimism.

Principal risks and uncertainties

The outlook of availability of seasonal labour remains challenging. We continue to look at all options and innovative ways of dealing with our labour management with various shift patterns to allow a larger pool to select from. 

 

The British/European political situation is concerning as our business model is based on the quick movement of goods from the continent through our supply chains, delays at port can create catastrophic damage for our highly perishable goods. We remain close to our trade bodies and government to try to ensure that this situation does not happen. 

 

Cyber attacks continue to be a threat, we remain vigilant and focused to minimise these attacks with continual training and updates to keep all abreast of the best defence. 

Key performance indicators

2024        2023

£000      £000

 

Revenue                               48,550         45,994

 

Operating Profit                               5,629         3,284

 

Operating Profit %                           11.59%         7.14%

BALL HORTICULTURAL EUROPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Going concern

The directors believe that it is appropriate to adopt the going concern basis of accounting in preparing the financial statements. 

 

The directors have prepared detailed profit and cash flow forecasts for the period to September 2026 and considered reasonably possible alternative scenarios. These show that based on the forecasts, the company will have sufficient liquidity to meet its liabilities as they fall due. The company and group have significant net assets and cash balances with no debt and this is forecast to continue until September 2026. 

 

Based on the above, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. 

Future developments

We continue to invest in information technology, production and logistics to ensure quality and reliability and the customer experience is continually advanced. Advanced robotics are increasingly being used in our production locations. 

Financial risk management

The group is satisfied with the control procedures and will continue to operate as at present, keeping aware of any changes that will affect the internal or external financial risks. 

 

The group has various financial instruments such as trade debtors and trade creditors, which arise directly from its operations. The main risks arising from the group's financial instruments are liquidity risk and credit risk. The board reviews and agrees policies for managing each of these risks and they are summarised below 

 

Liquidity risk 

The group's objective is to maintain a balance between continuity of funding and flexibility through the use of bank accounts and intercompany balances. 

 

Credit risk 

The group trades with only recognised, creditworthy third parties. It is a company policy that all customers who wish to trade on credit terms are subject to vetting procedures. In addition, receivable balances are monitored on an ongoing basis. 

BALL HORTICULTURAL EUROPE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Statement by directors in performance of their statutory duties in accordance with s172(1) Companies Act 2006

The directors of the company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006, summarised as follows: 

 

A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to: 

 

 

The following paragraphs summarise how the directors fulfil their duties: 

 

During the financial year to 30 September 2024, the group continued to restructure its sales and marketing and supply chain functions. This is to ensure that the group is in a better position to utilise its presence in the market whilst also leveraging our fully owned production nurseries in both UK and Portugal. 

 

Closer alliances with our suppliers, combined with our systems and logistics agility and ability, enable us to serve a wide range of products to a wide range of customers, further enhancing our customer solutions. 

 

Annual reviews are held with managers and employees, with individual employee development plans being put in place, to ensure that staff are progressing and delivering at the required performance levels. 

 

Our diversification strategy with a resultant increase in sales in different market sectors, illustrates customer acceptance of these initiatives, whilst the longevity of the relationships within the supplier base underpins the relationships that have been formed. 

 

Improved sustainability is an important corporate objective and we are carrying out feasibility studies in the area of reducing our consumption of single use plastics. 

 

The senior management team review our management system and policies to ensure they remain not only fit for purpose but more importantly are being utilised within the group to drive the behaviours across the group. 

On behalf of the board

A J Shepherd
Director
15 May 2025
BALL HORTICULTURAL EUROPE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

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

Principal activities

The group is engaged in the production and distribution of flower seeds and young plants.

 

The holding company, Ball Horticultural Europe Limited, is principally engaged in the management and co ordination of its subsidiaries.

Results and dividends

The results for the year are set out on page 12.

No ordinary dividends were paid. 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:

A C Ball
W T Billings
A J Shepherd
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Energy and carbon report

The release of greenhouse gases generated by burning fossil fuels has an impact on climate change which presents considerable risks both to the business and the planet. The company is committed to monitor and where possible, reduce its greenhouse gas emissions.

 

The carbon reporting data reflects the position of the Ball Horticultural Europe Limited Group including any subsidiaries that would be required to report in their individual company financial statements if a group report was not prepared. On this basis the data below is that of Ball Colegrave Limited.

BALL HORTICULTURAL EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
574,718
43,298
- Electricity purchased
256,822
319,091
- Fuel consumed for transport
1,435,104
181,124
2,266,644
543,513
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
105.12
7.92
- Fuel consumed for owned transport
375.05
77.50
480.17
85.42
Scope 2 - indirect emissions
- Electricity purchased
53.17
37.51
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
-
-
Total gross emissions
533.34
122.93
Intensity ratio
Tonnes CO2e per employee
1.72
0.40
Quantification and reporting methodology

Ball Horticultural Europe Limited GHG emissions were calculated using activity data from the company's accounting system and emission factors from using the UK Government GHG Conversion Factors for Company Reporting for converting energy usage to carbon dioxide equivalent (CO2e) emissions. The company followed the 2013 UK Government environmental reporting guidance (updated March 2019) which was developed based on the GHG Protocol Corporate Accounting and Reporting Standard. The analysis has used a financial control approach.

 

This assessment takes into account all of the emission sources required under the Companies Act 2006 (Strategic Report and Directors Reports) Regulations 2013.

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

BALL HORTICULTURAL EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
Measures taken to improve energy efficiency

The group strives to reduce energy and associated carbon emissions, through operational and technological improvements. These include the implementation of operating improvements including working with partners to recycle as much waste generated in the production processes as possible and using raw materials which are less energy intensive.

 

The group has been focusing on energy usage, and is also very conscious of plastic usage with a feasibility study to determine whether we can reuse more of our plastics.

 

Next year there is a plan to form a green team to bring more focus to our sustainability and environmental projects.

 

The following sustainability projects are currently ongoing:

 

Green team

- Development of a sustainability and environment team across the business is in progress.

 

Peat-free substrates

- In excess of 1 million perennial shrub liners in production this season.

- All annual plants in our trial grounds are now grown in peat-free substrate.

 

Investigation of alternative power sources

- Currently meeting with experts supplying EV charging points, solar power and heat source pumps.

- Propane gas-powered forklift truck in trial grounds was replaced with an electric powered model.

 

Fuel efficiency

- Continued replacement throughout our offices with LED lighting and replacement of inefficient doorways and double glazing.

 

Waste

- All unused catalogues and paper are now collected by our printing company for recycling.

- Change from plastic mailing bags to cardboard mailing boxes.

- Encouraging more customers to go digital with their documentation (order forms, price lists and planners) thus reducing printing by approximately 50%.

 

This assessment takes into account all of the emission sources required under the Companies Act 2006 (Strategic Report and Directors Reports) Regulations 2013.

Matters covered in the strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and financial risk management.

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 auditor of the company 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 auditor of the company is aware of that information.

BALL HORTICULTURAL EUROPE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
On behalf of the board
A J Shepherd
Director
15 May 2025
BALL HORTICULTURAL EUROPE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

BALL HORTICULTURAL EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BALL HORTICULTURAL EUROPE LIMITED
- 9 -
Opinion

We have audited the financial statements of Ball Horticultural Europe Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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:

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 group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

The 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:

BALL HORTICULTURAL EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BALL HORTICULTURAL EUROPE LIMITED
- 10 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the group and industry, we identified that the principal risks of non-compliance with laws and regulations related to the risk of revenue recognition being materially misstated due to fraud. We considered the extent to which non-compliance might have a material effect on the financial statements, and considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006 and tax legislation.

 

The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to employment law and health and safety. We performed audit procedures to inquire of management and those charged with governance whether the group is in compliance with those laws and regulations and inspected relevant documentation. We reviewed correspondence with Health and Safety England during the year and assessed the impact of potential non-compliance.

 

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 related to revenue.

BALL HORTICULTURAL EUROPE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BALL HORTICULTURAL EUROPE LIMITED
- 11 -

Audit procedures performed included:

 

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.

Use of our report

This report is made solely to the company’s member, 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Laura Adkins
15 May 2025
Senior Statutory Auditor
For and on behalf of
Whitley Stimpson Limited
Chartered Accountants
Statutory Auditor
Penrose House
67 Hightown Road
Banbury
Oxfordshire
OX16 9BE
BALL HORTICULTURAL EUROPE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
2024
2023
Notes
£000
£000
Turnover
3
48,550
45,994
Cost of sales
(29,621)
(31,579)
Gross profit
18,929
14,415
Distribution costs
(3,805)
(4,507)
Administrative expenses
(9,777)
(6,963)
Other operating income
282
339
Operating profit
4
5,629
3,284
Interest receivable and similar income
8
465
246
Interest payable and similar expenses
9
(115)
(87)
Amounts written off investments
10
-
(532)
Profit before taxation
5,979
2,911
Tax on profit
11
(1,843)
(637)
Profit for the financial year
23
4,136
2,274
Other comprehensive income
Currency translation loss taken to retained earnings
(157)
(57)
Total comprehensive income for the year
3,979
2,217
Profit for the financial year is all attributable to the owner of the parent company.
Total comprehensive income for the year is all attributable to the owner of the parent company.
BALL HORTICULTURAL EUROPE LIMITED
GROUP BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 13 -
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
12
9,371
9,429
Investments
13
12
-
0
9,383
9,429
Current assets
Stocks
16
5,546
5,781
Debtors
17
7,897
7,524
Cash at bank and in hand
21,149
16,935
34,592
30,240
Creditors: amounts falling due within one year
18
(3,934)
(3,639)
Net current assets
30,658
26,601
Total assets less current liabilities
40,041
36,030
Provisions for liabilities
Deferred tax liability
20
714
682
(714)
(682)
Net assets
39,327
35,348
Capital and reserves
Called up share capital
22
10
10
Share premium account
23
100
100
Revaluation reserve
23
499
499
Other reserves
23
170
170
Profit and loss reserves
23
38,548
34,569
Total equity
39,327
35,348
The financial statements were approved by the board of directors and authorised for issue on 15 May 2025 and are signed on its behalf by:
15 May 2025
A J Shepherd
Director
Company registration number 00722735 (England and Wales)
BALL HORTICULTURAL EUROPE LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 14 -
2024
2023
as restated
Notes
£000
£000
£000
£000
Fixed assets
Tangible assets
12
2,212
2,406
Investments
13
528
528
2,740
2,934
Current assets
Debtors
17
6,460
5,905
Cash at bank and in hand
1,521
1,403
7,981
7,308
Creditors: amounts falling due within one year
18
(331)
(31)
Net current assets
7,650
7,277
Net assets
10,390
10,211
Capital and reserves
Called up share capital
22
10
10
Share premium account
23
100
100
Revaluation reserve
23
499
499
Profit and loss reserves
23
9,781
9,602
Total equity
10,390
10,211

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £178,785 (2023 - £376,000 profit).

The financial statements were approved by the board of directors and authorised for issue on 15 May 2025 and are signed on its behalf by:
15 May 2025
A J Shepherd
Director
Company registration number 00722735 (England and Wales)
BALL HORTICULTURAL EUROPE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
Share capital
Share premium account
Revaluation reserve
Other reserves
Profit and loss reserves
Total
£000
£000
£000
£000
£000
£000
Balance at 1 October 2022
10
100
499
227
32,295
33,131
Year ended 30 September 2023:
Profit for the year
-
-
-
-
2,274
2,274
Other comprehensive income:
Currency translation differences
-
-
-
-
(57)
(57)
Total comprehensive income
-
-
-
-
2,217
2,217
Other movements
-
-
-
(57)
57
-
Balance at 30 September 2023
10
100
499
170
34,569
35,348
Year ended 30 September 2024:
Profit for the year
-
-
-
-
4,136
4,136
Other comprehensive income:
Currency translation differences
-
-
-
-
(157)
(157)
Total comprehensive income
-
-
-
-
3,979
3,979
Balance at 30 September 2024
10
100
499
170
38,548
39,327
BALL HORTICULTURAL EUROPE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
£000
£000
£000
£000
£000
Balance at 1 October 2022
10
100
499
9,226
9,835
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
-
376
376
Balance at 30 September 2023
10
100
499
9,602
10,211
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
-
179
179
Balance at 30 September 2024
10
100
499
9,781
10,390
BALL HORTICULTURAL EUROPE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
2024
2023
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash generated from operations
29
6,503
4,112
Interest paid
(178)
(24)
Income taxes paid
(799)
(775)
Net cash inflow from operating activities
5,526
3,313
Investing activities
Purchase of tangible fixed assets
(1,692)
(2,727)
Proceeds from disposal of tangible fixed assets
84
76
Purchase of investments
(12)
-
Interest received
465
246
Net cash used in investing activities
(1,155)
(2,405)
Net increase in cash and cash equivalents
4,371
908
Cash and cash equivalents at beginning of year
16,935
16,057
Effect of foreign exchange rates
(157)
(30)
Cash and cash equivalents at end of year
21,149
16,935
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
1
Accounting policies
Company information

Ball Horticultural Europe Limited (“the company”) is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is Milton Road, West Adderbury, Banbury, Oxfordshire, OX17 3EY .

 

The group consists of Ball Horticultural Europe Limited and all of its subsidiaries.

 

The company's and the group's principal activities and nature of its operations are disclosed in the directors' report.

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 £000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

The financial statements of the company are consolidated in these financial statements. 

BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.2
Business combinations

The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. 

 

The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably and is adjusted for changes in contingent consideration after the acquisition date. 

 

Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. 

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill. 

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Ball Horticultural Europe Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes. 

 

All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

The directors believe that it is appropriate to adopt the going concern basis of accounting in preparing the financial statements. 

 

The directors have prepared detailed profit and cash flow forecasts for the period to September 2026 and considered reasonably possible alternative scenarios. These show that based on the forecasts, the company will have sufficient liquidity to meet its liabilities as they fall due. The company and group have significant net assets and cash balances with no debt and this is forecast to continue until September 2026. 

 

Based on the above, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. 

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.6
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 recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold buildings
4% - 10% straight line
Plant and equipment
10% - 30% straight line
Fixtures and fittings
10% - 30% straight line
Computers
10% - 30% straight line
Motor vehicles
25% reducing balance
Biomass
10% straight line

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 recognised in the profit and loss account.

The company has taken advantage of the transitional provision of FRS 15 "Tangible fixed assets" and retained the book amounts of greenhouses and land and buildings which were revalued prior to the implementation of that standard. The greenhouses were last revalued in 1995 and the land and buildings in 2001. The valuations have not subsequently updated. 

1.7
Fixed asset investments

In the separate accounts of the company, interests in subsidiary entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss. 

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost 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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.10
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.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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 group 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.

BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 22 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
Derivatives

The group enters into foreign exchange forward contracts in order to manage its exposure to foreign exchange risk. 

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.14
Taxation

The tax expense represents the sum of the current tax expense and deferred tax expense. Current tax assets are recognised when tax paid exceeds the tax payable. 

 

Current and deferred tax is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity. 

 

Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously. 

Current tax

Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date. 

BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 23 -
Deferred tax

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date. 

 

Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits. 

1.15
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.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments. 

 

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

 

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

 

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.17
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 leased asset are consumed.

BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 24 -
1.18
Foreign exchange

Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction. 

 

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction or, if the asset or liability is measured at fair value, the rate when that fair value was determined. 

 

All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income. 

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgement (apart from those involving estimates) has had the most significant effect on amounts recognised in the financial statements.

Pension scheme asset ceiling

The directors have assessed whether or not the asset ceiling rules should be applied in restricting the recognition of the pension surplus of £5.2 million (2023: £4.9 million) on the balance sheet at 30 September 2024. Based on an assessment of the scheme rules, where the Trustees legally hold the power to wind-up the scheme (and therefore the group does not have the unconditional right to a refund), together with consideration of both the past precedent and future intention of buying annuities , together with the trustees noting that additional funding from the group maybe needed to transact these in the future, the directors judgement is that on balance the asset ceiling rules should be applied and the surplus not recognised. 

BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 25 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Depreciation and residual value

The assessment of the useful economic lives and the method of depreciating tangible fixed assets requires judgement. Depreciation is charged to the statement of income and retained earnings based on the useful economic life selected. 

Trade debtors

Trade debtors consist of amounts due from customers. An allowance for doubtful debts is maintained for estimated losses resulting from inability of the Group's customers to make required payments. The allowance is based on the Group's regular assessment of the credit worthiness and financial conditions of customers. See note 18 for additional disclosure. 

Stock

Certain factors could affect the realisable value of the Group stocks including customer demand and market conditions. The Group considers usage, anticipated sales price, effect of new product introductions, product obsolescence and other factors when evaluating the value. See note 17 for additional disclosure. 

Pension scheme valuation

The liabilities in respect of the defined benefit pension scheme are calculated by qualified actuaries, and received by the Group. The principal uncertainty relates to the estimation of the discount rate, life expectations of scheme members, future investment yields and general market conditions for factors such as inflation and interest rates. The specific assumptions adopted are disclosed in detail in note 22. 

 

There are no other key assumptions regarding the future, and other key sources of estimation uncertainty at the reporting date, that have significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 

3
Turnover and other revenue
2024
2023
£000
£000
Turnover analysed by geographical market
United Kingdom
47,944
44,730
Rest of Europe
594
1,107
Rest of the World
12
157
48,550
45,994
2024
2023
£000
£000
Other revenue
Interest income
465
246
Other income
-
(202)
274
-
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
4
Operating profit
2024
2023
£000
£000
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
453
(275)
Depreciation of owned tangible fixed assets
1,685
1,545
Profit on disposal of tangible fixed assets
(19)
(5)
Stocks impairment losses recognised or reversed
434
450
Operating lease charges
95
93
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the group and company
21
25
Audit of the financial statements of the company's subsidiaries
65
70
86
95
For other services
All other non-audit services
39
26
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administrative staff
72
90
-
-
Other
241
221
-
-
Total
313
311
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Wages and salaries
8,042
7,396
-
0
-
0
Social security costs
894
789
-
-
Pension costs
484
316
-
0
-
0
9,420
8,501
-
0
-
0
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
7
Directors' remuneration
2024
2023
£000
£000
Remuneration for qualifying services
244
179
Company pension contributions to defined contribution schemes
33
16
277
195
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£000
£000
Remuneration for qualifying services
244
179
Company pension contributions to defined contribution schemes
33
16
8
Interest receivable and similar income
2024
2023
£000
£000
Interest income
Interest receivable from group companies
165
-
0
Other interest income
300
246
Total income
465
246
9
Interest payable and similar expenses
2024
2023
£000
£000
Interest payable to group undertakings
115
71
Other interest
-
16
Total finance costs
115
87
10
Amounts written off investments
2024
2023
£000
£000
Fair value gains/(losses) on financial instruments
Gain/(loss) on financial assets held at fair value through profit or loss
-
(532)
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
11
Taxation
2024
2023
£000
£000
Current tax
UK corporation tax on profits for the current period
1,645
752
Adjustments in respect of prior periods
(136)
92
Total current tax
1,509
844
Deferred tax
Origination and reversal of timing differences
(35)
(143)
Changes in tax rates
-
0
(19)
Adjustment in respect of prior periods
369
(45)
Total deferred tax
334
(207)
Total tax charge
1,843
637

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
£000
£000
Profit before taxation
5,979
2,911
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.00%)
1,495
640
Tax effect of expenses that are not deductible in determining taxable profit
(1)
86
Tax effect of income not taxable in determining taxable profit
-
0
(9)
Adjustments in respect of prior years
233
47
Effect of change in corporation tax rate
-
(19)
Depreciation on assets not qualifying for tax allowances
48
-
0
Other
68
(108)
Taxation charge
1,843
637
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
12
Tangible fixed assets
Group
Freehold buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Biomass
Total
£000
£000
£000
£000
£000
£000
£000
Cost
At 1 October 2023
9,852
2,968
8,019
450
1,249
1,584
24,122
Additions
323
267
891
69
142
-
0
1,692
Disposals
-
0
(263)
(190)
(43)
(150)
-
0
(646)
At 30 September 2024
10,175
2,972
8,720
476
1,241
1,584
25,168
Depreciation and impairment
At 1 October 2023
5,270
1,806
4,945
362
1,118
1,192
14,693
Depreciation charged in the year
457
183
774
45
67
159
1,685
Eliminated in respect of disposals
(10)
(263)
(95)
(43)
(170)
-
0
(581)
At 30 September 2024
5,717
1,726
5,624
364
1,015
1,351
15,797
Carrying amount
At 30 September 2024
4,458
1,246
3,096
112
226
233
9,371
At 30 September 2023
4,582
1,162
3,074
88
131
392
9,429
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
Company
Freehold buildings
Fixtures and fittings
Total
£000
£000
£000
Cost
At 1 October 2023 and 30 September 2024
4,675
11
4,686
Depreciation and impairment
At 1 October 2023
2,270
10
2,280
Depreciation charged in the year
194
-
0
194
At 30 September 2024
2,464
10
2,474
Carrying amount
At 30 September 2024
2,211
1
2,212
At 30 September 2023
2,405
1
2,406

A fixed charge is held on property owned by the company at Bordon Hill Nurseries, realisable on the eventual sale of the said property.

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Investments in subsidiaries
14
-
0
-
0
528
528
Listed investments
12
-
0
-
0
-
0
12
-
0
528
528
Movements in fixed asset investments
Group
Investments
£000
Cost or valuation
At 1 October 2023
-
Additions
12
At 30 September 2024
12
Carrying amount
At 30 September 2024
12
At 30 September 2023
-
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
13
Fixed asset investments
(Continued)
- 31 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£000
Cost or valuation
At 1 October 2023 and 30 September 2024
528
Carrying amount
At 30 September 2024
528
At 30 September 2023
528
14
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Ball Colegrove Limited
United Kingdom
Ordinary
100.00
-
Bordon Hill Nurseries Limited
United Kingdom
Ordinary
100.00
-
Novo Sol Plantas Lda
Portugal
Ordinary
40.00
60.00
KinderGarden Plants Ltd
United Kingdom
Ordinary
100.00
-

Ball Colegrave Limited (company registration number 01577898) and Bordon Hill Nurseries Limited (company registration number 03999510) have taken advantage of the exemption in relation to the audit of their financial statements under 479A of the Companies Act 2006, as Ball Horticultural Europe Limited has provided these companies with parental guarantees.

15
Financial instruments
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
123
123
-
-

Derivative financial assets and derivative financial liabilities comprise forward foreign exchange contracts that are initially recognised at fair value on the date each contract is entered into and are subsequently re-measured at their fair value.

BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
16
Stocks
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Raw materials and consumables
3,362
2,968
-
-
Work in progress
692
1,297
-
-
Finished goods and goods for resale
1,492
1,516
-
0
-
0
5,546
5,781
-
-

Stock impairment of £434,000 (2023 - £450,000) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock.

 

Stock is shown net of a provision for potentially obsolete seed of £668,767 (2023 - £668,767).

17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£000
£000
£000
£000
Trade debtors
6,367
6,154
1
-
0
Corporation tax recoverable
197
19
100
40
Amounts owed by group undertakings
204
298
6,356
5,864
Other debtors
318
474
-
0
-
0
Prepayments and accrued income
804
270
2
-
0
7,890
7,215
6,459
5,904
Deferred tax asset (note 20)
7
309
1
1
7,897
7,524
6,460
5,905

A provision for doubtful accounts of £114,000 (2023 - £109,000) was recognised against trade debtors.

 

Amounts owed by group undertakings arising from intercompany loans are unsecured, repayable on demand and carry an average interest of 5.38% annually.

BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Trade creditors
262
1,300
-
0
-
0
Amounts owed to group undertakings
157
511
-
0
-
0
Corporation tax payable
976
88
295
-
0
Other taxation and social security
276
473
-
-
Derivative financial instruments
123
123
-
0
-
0
Other creditors
299
340
-
0
-
0
Accruals and deferred income
1,841
804
36
31
3,934
3,639
331
31

Included within other creditors are amounts owing in pension liabilities of £21,576 (2023 - £22,000),

19
Contingent liability - Ball Colegrave Limited

In June 2024, an incident took place involving an employee for which a claim under the Health and Safety at Work Act was subsequently made.

 

On 17 March 2025, confirmation was received from the Health and Safety Executive that they would be issuing a charge against the company in relation to the incident, under section 2 of the Health and Safety at Work Act, which could result in an unlimited fine.

 

At the date of approval of these accounts, the amount of the fine is unknown, and it is impracticable to estimate.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£000
£000
£000
£000
Fixed asset timing differences
714
726
-
-
Losses
-
-
-
308
Retirement benefit obligations
-
-
6
-
Short term timing differences
-
(44)
1
1
714
682
7
309
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£000
£000
£000
£000
Short term timing differences
-
-
1
1
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
20
Deferred taxation
(Continued)
- 34 -
Group
Company
2024
2024
Movements in the year:
£000
£000
Liability/(Asset) at 1 October 2023
373
(1)
Charge to profit or loss
334
-
Liability/(Asset) at 30 September 2024
707
(1)

Deferred tax is not recognised in respect of losses of €528,000 to be utilised against future taxable profits. These losses relate solely to Novo Sol Plantas Lda, a subsidiary company based in Portugal and subject to local tax laws.

 

The deferred tax assets set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within 12 years and relates to accelerated capital allowances that are expected to mature within the same period.

21
Retirement benefit scheme
2024
2023
Defined contribution scheme
£000
£000
Charge to profit or loss in respect of defined contribution schemes
397
316

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Defined benefit scheme

The company operates a defined benefit scheme for the benefit of certain United Kingdom directors and certain group employees. The assets of the scheme are administered by a trustee in a fund independent from those of the company. The principal employer of the scheme is Ball Horticultural Europe Limited with Ball Colegrave Limited being a participating employer.

 

The most recent comprehensive actuarial valuation of the plan assets and the present value of the defined benefit obligation was carried out at 1 June 2021 and updated to 30 September 2024 by XPS Pensions (RL) Limited using the projected unit method.

2024
2023
Key assumptions
%
%
Discount rate
5.1
5.7
Expected rate of increase of pensions in payment
2.5
2.5
Expected return on scheme assets
4.8
5.3
Pension revaluation in deferment
3.1
3.3
Inflation assumption
3.1
3.3
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
21
Retirement benefit scheme
(Continued)
- 35 -
Mortality assumptions
2024
2023

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
21.2
21.3
- Females
23.7
23.6
Retiring in 20 years
- Males
22.5
22.6
- Females
25.2
25.0

The amounts included in the balance sheet arising from obligations in respect of the defined benefit plan are as follows:

2024
2023
Group
£000
£000
Present value of defined benefit obligations
13,088
12,527
Fair value of plan assets
(18,266)
(17,511)
Deficit in scheme
(5,178)
(4,984)
Restriction on scheme assets
5,178
4,984
Total liability recognised
-
-
The company had no post employment benefits at 30 September 2024 or 1 October 2023.
Group
2024
2023
Amounts recognised in the profit and loss account
£000
£000
Costs/(income):
Net interest on net defined benefit liability/(asset)
(284)
-
Group
2024
2023
Amounts recognised in other comprehensive income
£000
£000
Costs/(income):
Actual return on scheme assets
(1,482)
785
Less: calculated interest element
967
655
Return on scheme assets excluding interest income
(515)
1,440
Actuarial changes related to obligations
605
(736)
Effect of changes in the amount of surplus that is not recoverable
194
(704)
Total costs
284
-
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
21
Retirement benefit scheme
(Continued)
- 36 -
Group
2024
Movements in the present value of defined benefit obligations
Liabilities at 1 October 2023
12,527
Benefits paid
(727)
Actuarial gains and losses
605
Interest cost
683
At 30 September 2024
13,088

The defined benefit obligations arise from plan which are wholly or partly funded.

Group
2024
Movements in the fair value of plan assets
£000
Fair value of assets at 1 October 2023
17,511
Interest income
967
Return on plan assets (excluding amounts included in net interest)
515
Benefits paid
(727)
At 30 September 2024
18,266

The actual return on plan assets was £1,482,000 (2023 - £1,160,000).

Group
2024
2023
Fair value of plan assets
£000
£000
Equity instruments
1,644
700
Property
-
350
Corporate bonds
5,480
5,779
Insured annuinities
2,374
2,276
Gilts
8,768
8,230
Cash
-
176
18,266
17,511
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10
10
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
22
Share capital
(Continued)
- 37 -

There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital.

23
Reserves
Share premium

The share premium account contains the excess paid for the purchase of shares above nominal value.

Revaluation reserve

The revaluation reserve contains all current and prior period movements in the value of land and buildings.

Other reserves

The other reserve contains all movements on retranslation of reserves.

Profit and loss reserves

The profit and loss account comprises current and prior period profit and losses.

24
Financial commitments, guarantees and contingent liabilities

There is a cross guarantee between Ball Horticultural Europe Limited, Ball Colegrave Limited, and KinderGarden Plants Limited in respect to a composite accounting agreement dated 28 September 2001. Each company provides a guarantee to Barclays Bank Plc.

25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Within one year
74
108
-
-
Between two and five years
54
101
-
-
In over five years
-
1
-
-
128
210
-
-
26
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Acquisition of tangible fixed assets
411
-
-
-
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 38 -
27
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Purchases
Purchases
2024
2023
£000
£000
Group
Florensis B.V.
5,710
6,072

At the balance sheet date, £75,989 (2023 - £63,000) was due to Florensis BV.

 

These are related party transactions of the group because Florensis BV is a 20% associate of the wider international group.

 

During the year the company made donations to The Colegrave Seabrook Foundation, of which A Ball is a trustee, totalling £1,500 (2023 - £nil).

28
Controlling party

The ultimate parent company and the ultimate controlling party is Ball Horticultural Company Inc, a company incorporated in the United States of America.

 

Ball Horticultural Company Inc, is the parent company of the largest and smallest group of which the company is a member and for which group financial statements are drawn up. The principal place of business for Ball Horticultural Company Inc. is at 622 Town Road, West Chicago, Illinois, 60185-2698, U.S.A. The consolidated accounts are not available to the public.

29
Cash generated from group operations
2024
2023
£000
£000
Profit for the year after tax
4,136
2,274
Adjustments for:
Taxation charged
1,843
637
Finance costs
115
87
Investment income
(465)
(246)
Gain on disposal of tangible fixed assets
(21)
(5)
Depreciation and impairment of tangible fixed assets
1,685
1,545
Other gains and losses
-
532
Movements in working capital:
Decrease in stocks
237
745
Increase in debtors
(497)
(1,995)
(Decrease)/increase in creditors
(530)
538
Cash generated from operations
6,503
4,112
BALL HORTICULTURAL EUROPE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 39 -
30
Analysis of changes in net funds - group
1 October 2023
Cash flows
Exchange rate movements
30 September 2024
£000
£000
£000
£000
Cash at bank and in hand
16,935
4,371
(157)
21,149
31
Prior year adjustment - company

In the prior year, in the company accounts for Ball Horticultural Europe Limited, amounts owed by group companies were shown as non-current debtors. It is more appropriate to disclose said balances as current debtors.

 

A prior year adjustment has been made in the current year to correct this, which impacts the company balance sheet only.

 

There is no impact on the profit or loss.

 

There is no impact on the consolidated balance sheet.

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