The directors present the strategic report for the year ended 30 September 2024.
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.
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.
2024 2023
£000 £000
Revenue 48,550 45,994
Operating Profit 5,629 3,284
Operating Profit % 11.59% 7.14%
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.
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.
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.
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 likely consequences of any decisions in the long term;
the interests of the company's employees;
the need to foster the company's business relationships with suppliers, customers and others;
the impact of the company's operations on the community and environment;
the desirability of the company maintaining a reputation for high standards of business conduct;
and the need to act fairly as between shareholders of the company
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
The directors present their annual report and financial statements for the year ended 30 September 2024.
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.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
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.
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 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.
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.
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.
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).
Basis for 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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.
Audit procedures performed included:
Discussion amongst the audit team regarding the susceptibility of the client to fraud;
Consideration of the risk of fraud when documenting and reviewing internal controls and procedures;
Enquiring of management how they assess the risk of fraud, and identify and respond to the risks of fraud;
Enquiring of management whether they have any knowledge of actual or suspected frauds or non-compliance with laws and regulations;
Review of how those charged with governance exercise oversight of management's process for identifying and responding to the risk of fraud;
Substantive testing of revenue and debtors;
Substantive testing of expenditure and creditors;
Review of journals for unusual items;
Review relevant tax correspondence;
Review VAT return entries and perform analytical procedures on VAT balances;
Substantive testing on fixed assets including having sight of the assets to confirm existence;
Verification of employees and;
Review of bank reconciliations for evidence of window dressing.
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.
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).
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.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in these financial statements.
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.
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.
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.
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.
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.
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.
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, 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.
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.
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.
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, 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
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.
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 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.
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.
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.
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.
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.
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.
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.
The following judgement (apart from those involving estimates) has had the most significant effect on amounts recognised in the financial statements.
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.
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.
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 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.
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.
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.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
A fixed charge is held on property owned by the company at Bordon Hill Nurseries, realisable on the eventual sale of the said property.
Details of the company's subsidiaries at 30 September 2024 are as follows:
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.
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.
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).
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.
Included within other creditors are amounts owing in pension liabilities of £21,576 (2023 - £22,000),
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.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
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.
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.
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.
Assumed life expectations on retirement at age 65:
The amounts included in the balance sheet arising from obligations in respect of the defined benefit plan are as follows:
The defined benefit obligations arise from plan which are wholly or partly funded.
The actual return on plan assets was £1,482,000 (2023 - £1,160,000).
There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital.
The share premium account contains the excess paid for the purchase of shares above nominal value.
The revaluation reserve contains all current and prior period movements in the value of land and buildings.
The other reserve contains all movements on retranslation of reserves.
The profit and loss account comprises current and prior period profit and losses.
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.
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:
Amounts contracted for but not provided in the financial statements:
During the year the group entered into the following transactions with related parties:
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).
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.