Company registration number 02456221 (England and Wales)
Milton Garden Products Limited
Annual report and financial statements
For the year ended 30 November 2024
Milton Garden Products Limited
Company information
Directors
Mr G R Harrison
Mr J R Harrison
Mrs D Whitney-Harrison
Secretary
Mrs J A Harrison
Company number
02456221
Registered office
The Coal Yard
Milton Road
Stoke on Trent
Staffordshire
England
ST1 6LE
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Milton Garden Products Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of income and retained earnings
10
Statement of financial position
11
Notes to the financial statements
12 - 25
Milton Garden Products Limited
Strategic report
For the year ended 30 November 2024
- 1 -
The directors present the strategic report for the year ended 30 November 2024.
Review of the business
Milton Garden Products Limited (MGP) are a distributor/supplier of materials used within the landscape garden industry. In the prior year, the company extended their year end to a 18-month period to 30 November 2023, the directors deemed the 6 month extension to be appropriate due to high seasonality at the end of the former year end, therefore the comparatives within the accounts are not directly comparable.
The directors in 2024 are reporting turnover on garden products for the period of 12 months to 30 November 2024 have reduced to £11,897,159 (2023 - £18,747,337). This reduction was mainly due to the comparative numbers containing 2 high seasonal periods.
In the first quarter it was a company strategy to heavily discount paving stock to reduce slow moving stocking levels which had an adverse effect on revenue of £156,700 compared to the same period in 2023.
The company still maintained its strategy to advertise heavily online even though this reduced slightly compared to 2023, the use of ecommerce advertising will be maintained albeit at lower levels in future years as the company sees more organic growth. Not only this, but the company still makes gains with an increasingly strong brand reputation locally within the industry.
The business is very seasonal and weather dependant with most of the product used on outdoor projects and by outdoor trades people, the wet weather endured through the financial year has had a significant impact on the years revenue, which has impacted the industry as a whole.
The company is reporting a gross profit for the period of £3,626,234 (2023 - £5,922,912). This has taken the overall gross profit margin from 31.59% in 2023 to 30.48%.
Increased costs have stemmed from maintaining staffing costs to retain highly valued employees in a difficult employment market. The overhead costs have been impacted by the current economic climate inflationary rates alongside the increase costs of fleet ownership. This has led to a further reduction to the loss after taxation figure of £456,253 (2023 - £231,173).
The company has continued to invest in people to take the business to the next level of growth and hold a stronger position in the industry. We believe we now have in place the structure and a strategy to continue our growth even in uncertain times.
Milton Garden Products Limited
Strategic report (continued)
For the year ended 30 November 2024
- 2 -
Principal risks and uncertainties
We are again in a period uncertainty with sea freight influenced by Global factors.
Falling market prices and with an uncertain UK economy consumers are making discretionary spending choices which are making conditions challenging.
We will remain focused on the things that we can control, ensuring that we have the right resources in place to deliver excellent service to our customers.
Financial Risks
Liquidity risks
The company aims to manage liquidity risk by careful management of cash generated by its operations and negotiating terms with its key customers and suppliers. The company is funded by both external finance, including bank loans and HP’s, as well as retained profits.
Interest rate risks
The company finances its operations through a mixture of retained profits and external borrowings. External borrowings are generally acquired for purchasing new assets to support the company’s growth strategy. Interest rates have risen over the last few years and remain volatile. The company is continuing to monitor the situation and will decide on an appropriate course for any future investment.
Cashflow risk
The company can meet short and medium-term obligations by having immediate access to cash reserves. However, the bank overdraft is utilised regularly, and the company are actively seeking to implement new policies to mitigate the usage of this facility.
Development and performance
A good proportion of our business is seasonal with the spring and summer being peak season.
Margins were previously impacted heavily by the volatility in costs and prices of materials and the fall in inbound freight costs, which impacted the value of held inventory. During the year, the company undertook a project to better control stock management which has led to an increase in the gross profit margin.
We continue to invest in our systems and processes to ensure they are robust, operating efficiently, enabling the delivery of future cost savings.
Milton Garden Products Limited
Strategic report (continued)
For the year ended 30 November 2024
- 3 -
Key performance indicators
The directors consider that the key performance indicators are return on profit margin before tax, current ratio, working capital, capital employed and stock turnover:
| | |
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| | |
Sales to net working capital | | |
Return on capital employed | | |
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Profit margin before tax is profit before tax as a percentage of turnover.
Current ratio is the ratio of current assets to current liabilities.
Sales to net working capital is the sales as a ratio of the working capital, net of current assets less current liabilities.
Return on capital employed is operating profit as a percentage of equity shareholders' funds.
Stock turnover ratio is the cost of sales by the average stock.
Future developments
The company are actively updating their growth strategy to focus more on targeting potential repeat customers.
Advertising costs are to be reviewed and focussed on increasing the repeat custom by selling through to customers locally and through the yard. This focus plans to increase growth by selling more in bulk, thus reducing direct and selling costs, increasing margins.
Mr J R Harrison
Director
12 June 2025
Milton Garden Products Limited
Directors' report
For the year ended 30 November 2024
- 4 -
The directors present their annual report and financial statements for the year ended 30 November 2024.
Principal activities
The principal activity of the company continued to be that of the sale of garden products and other related products to the domestic and wholesale markets.
Results and dividends
The results for the year are set out on page 10.
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:
Mr G R Harrison
Mr J R Harrison
Mrs D Whitney-Harrison
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Milton Garden Products Limited
Directors' report (continued)
For the year ended 30 November 2024
- 5 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr J R Harrison
Director
12 June 2025
Milton Garden Products Limited
Independent auditor's report
To the member of Milton Garden Products Limited
- 6 -
Opinion
We have audited the financial statements of Milton Garden Products Limited (the 'company') for the year ended 30 November 2024 which comprise the statement of income and retained earnings, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 November 2024 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Milton Garden Products Limited
Independent auditor's report (continued)
To the member of Milton Garden Products Limited
- 7 -
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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Milton Garden Products Limited
Independent auditor's report (continued)
To the member of Milton Garden Products Limited
- 8 -
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including legislation such as the Companies Act 2006, taxation legislation, data protection, employment, and health and safety legislation; and
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal and professional fee invoices.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries posted during the period and at the period end to identify unusual transactions;
investigated the rationale behind significant or unusual transactions;
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
performed walkthrough tests on major transaction cycles.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims;
reviewing any correspondence with HMRC, and
reviewing legal and professional fees incurred during the period to identify any potential indications of non-compliance with laws and regulations.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
Milton Garden Products Limited
Independent auditor's report (continued)
To the member of Milton Garden Products Limited
- 9 -
This report is made solely to the company's member 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.
Stacey Parr FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
12 June 2025
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
Milton Garden Products Limited
Statement of income and retained earnings
For the year ended 30 November 2024
- 10 -
Year
Period
ended
ended
30 November
30 November
2024
2023
as restated
Notes
£
£
Turnover
3
11,897,159
18,747,337
Cost of sales
(8,270,885)
(12,824,425)
Gross profit
3,626,274
5,922,912
Distribution costs
(3,212,274)
(4,996,766)
Administrative expenses
(1,700,685)
(2,010,762)
Other operating income
821,489
871,311
Operating loss
4
(465,196)
(213,305)
Interest receivable and similar income
34
Interest payable and similar expenses
7
(59,357)
(55,702)
Loss before taxation
(524,553)
(268,973)
Tax on loss
8
68,300
37,800
Loss for the financial year
(456,253)
(231,173)
Retained earnings brought forward
2,019,219
2,250,392
Retained earnings carried forward
1,562,966
2,019,219
Milton Garden Products Limited
Statement of financial position
As at 30 November 2024
30 November 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
9
130,300
147,672
Tangible assets
10
557,394
573,587
687,694
721,259
Current assets
Stocks
11
1,600,708
2,057,803
Debtors
12
837,821
574,836
Cash at bank and in hand
145,614
110,650
2,584,143
2,743,289
Creditors: amounts falling due within one year
13
(1,529,661)
(1,192,353)
Net current assets
1,054,482
1,550,936
Total assets less current liabilities
1,742,176
2,272,195
Creditors: amounts falling due after more than one year
14
(179,200)
(184,666)
Provisions for liabilities
Deferred tax liability
17
68,300
-
(68,300)
Net assets
1,562,976
2,019,229
Capital and reserves
Called up share capital
19
10
10
Profit and loss reserves
20
1,562,966
2,019,219
Total equity
1,562,976
2,019,229
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 12 June 2025 and are signed on its behalf by:
Mr J R Harrison
Director
Company registration number 02456221 (England and Wales)
Milton Garden Products Limited
Notes to the financial statements
For the year ended 30 November 2024
- 12 -
1
Accounting policies
Company information
Milton Garden Products Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Coal Yard, Milton Road, Stoke on Trent, Staffordshire, England, ST1 6LE.
1.1
Reporting period
The financial statements are presented for the year ended 30 November 2024. The comparative information is for the extended 18 month period ended 30 November 2023. In the prior year the directors deemed it appropriate to extend the period end by 6 months due to the previous accounting period coinciding with high seasonality within the business and therefore the figures are not directly comparable.
1.2
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 cover the company as an individual entity and are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of JRH (Staffs) Group Limited. These consolidated financial statements are available from its registered office, The Coal Yard, Milton Road, Stoke On Trent, ST1 6LE.
Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with group entities where the relationship is one of being wholly owned.
1.3
Going concern
We draw attention to the Statement of income and retained earnings in the financial statements, which indicates that the company has incurred recurring losses. However, management have disclosed in their strategic report that they are taking specific actions to improve the financial position which includes a cost savings project. The company has positive net assets and we have reviewed the company forecasts, including cashflow forecasts, which reflect improved future performance. Based on these plans and other factors, we believe the company will be able to continue its operations for the foreseeable future. Therefore, the financial statements have been prepared on a going concern basis.true
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services 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.
1.5
Intangible fixed assets - goodwill
Goodwill, being the amounts paid in connection with the acquisition of businesses are being amortised evenly over it's estimated useful life of ten years.
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Improvements to property
20% on straight line
Plant and equipment
10% on reducing balance
Computers
33% on straight line
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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).
1.8
Stocks
Stocks are stated at the lower of cost and net realisable value (estimated selling price less costs to complete and sell). Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the average cost formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
1
Accounting policies
(Continued)
- 14 -
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 company after deducting all of its liabilities.
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Assets, obtained under hire purchase contracts and finance leases, are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Management charges
Management charge income is received by the company. This relates to recharges of costs incurred by the company on behalf of a related party. Recharges of costs are based on estimates of costs incurred on behalf of the related party.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Garden products
11,897,159
18,747,337
2024
2023
£
£
Other revenue
Interest income
-
34
4
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
3,963
854
Fees payable to the company's auditor for the audit of the company's financial statements
19,285
61,000
Depreciation of owned tangible fixed assets
143,241
211,412
Depreciation of tangible fixed assets held under finance leases
8,137
14,548
Loss/(profit) on disposal of tangible fixed assets
7,121
(29,070)
Amortisation of intangible assets
17,372
26,060
Operating lease charges
110,000
75,000
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
- 18 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
S&D
22
13
Direct
24
31
Admin
13
11
Directors
3
3
Total
62
58
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,893,087
2,577,645
Social security costs
186,847
255,980
Pension costs
118,138
131,007
2,198,072
2,964,632
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
33,174
36,720
Company pension contributions to defined contribution schemes
80,533
80,799
113,707
117,519
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
49,587
53,534
Interest on finance leases and hire purchase contracts
3,902
1,801
Other interest
5,868
367
59,357
55,702
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
- 19 -
8
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(68,300)
(37,800)
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(524,553)
(268,973)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(131,138)
(67,243)
Tax effect of expenses that are not deductible in determining taxable profit
5,810
5,390
Depreciation on assets not qualifying for tax allowances
21,571
31,090
Under/(over) provided in prior years
(1,056)
Deferred tax adjustments in respect of prior years
3,991
Enhanced capital allowance
(1,196)
Deferred tax not provided for current year
31,466
(4,785)
Taxation credit for the year
(68,300)
(37,800)
9
Intangible fixed assets
Goodwill
£
Cost
At 1 December 2023 and 30 November 2024
1,082,999
Amortisation and impairment
At 1 December 2023
935,327
Amortisation charged for the year
17,372
At 30 November 2024
952,699
Carrying amount
At 30 November 2024
130,300
At 30 November 2023
147,672
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
- 20 -
10
Tangible fixed assets
Improvements to property
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2023
670,753
661,277
6,539
412,073
1,750,642
Additions
52,008
6,965
85,000
143,973
Disposals
(17,511)
(17,511)
At 30 November 2024
670,753
695,774
13,504
497,073
1,877,104
Depreciation and impairment
At 1 December 2023
452,468
395,743
1,321
327,523
1,177,055
Depreciation charged in the year
88,572
30,911
3,558
28,337
151,378
Eliminated in respect of disposals
(8,723)
(8,723)
At 30 November 2024
541,040
417,931
4,879
355,860
1,319,710
Carrying amount
At 30 November 2024
129,713
277,843
8,625
141,213
557,394
At 30 November 2023
218,285
265,534
5,218
84,550
573,587
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and equipment
25,425
Motor vehicles
79,688
24,247
105,113
24,247
11
Stocks
2024
2023
£
£
Finished goods and goods for resale
1,600,708
2,057,803
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
- 21 -
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
21,000
33,628
Amounts owed by group undertakings
402,483
40,884
Other debtors
372,379
460,451
Prepayments and accrued income
41,959
39,873
837,821
574,836
13
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
613,877
319,996
Obligations under finance leases
16
37,211
6,991
Trade creditors
536,352
439,916
Taxation and social security
203,487
215,374
Other creditors
40,731
70,005
Accruals and deferred income
98,003
140,071
1,529,661
1,192,353
14
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
15
131,916
184,666
Obligations under finance leases
16
47,284
179,200
184,666
15
Loans and overdrafts
2024
2023
£
£
Bank loans
184,666
248,081
Bank overdrafts
561,127
256,581
745,793
504,662
Payable within one year
613,877
319,996
Payable after one year
131,916
184,666
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
15
Loans and overdrafts
(Continued)
- 22 -
The directors of the company have provided legal charges over personal property and limited guarantees for the benefit of Barclays Bank UK PLC to secure the banking facilities.
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
37,211
6,991
In two to five years
47,284
84,495
6,991
The finance leases are secured by fixed charges over the assets to which they relate.
Finance lease payments represent rentals payable by the company for certain items of plant, equipment and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2.5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
-
68,300
2024
Movements in the year:
£
Liability at 1 December 2023
68,300
Credit to profit or loss
(68,300)
Liability at 30 November 2024
-
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
- 23 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
118,138
131,007
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
At the period end the creditor liability was £9,409 (2023 - £6,257).
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10
10
10
10
Each ordinary share has full voting rights, full dividend rights and the right to participate in distributions on winding up.
20
Profit and loss reserves
Profit and loss reserves are made up of accumulated profits less accumulated losses and distributions to shareholders.
21
Financial commitments, guarantees and contingent liabilities
At the balance sheet date, the company had guaranteed borrowings of fellow group undertakings. At 30 November 2024 these borrowings amounted to £524,900 (2023 - £568,043). As at the date of approval of these financial statements, the directors do not anticipate that the guarantees will be called upon.
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
110,000
50,000
Between two and five years
248,333
58,333
In over five years
185,000
543,333
108,333
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
- 24 -
23
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Pension scheme
During the period, the company paid rent and services of £40,646 (2023 - £61,007) to a pension scheme under common control. At the period end the pension scheme owed £Nil (2023 - £1,440) to the company
Companies under common control
In the period, management charges were received from companies under common control of £821,489 (2023 - £765,000).
Sales were received from companies under common control of £Nil (2023 - £29,134) in the period.
Purchases were incurred from companies under common control of £6,485 (2023 - £Nil) in the period.
At the period end, loan balances owed to the company from connected parties amounted to £393,351 (2023: £459,011).
Transactions with directors
The company paid rent of £16,750 (2023 - £25,125) to a director during the period.
Amounts paid to close family members of key management personnel in the period was £76,304 (2023 - £94,667).
24
Ultimate controlling party
The parent company is JRH Staffordshire Holdings Limited which owns 100% of the ordinary share capital. JRH Staffordshire Holdings Limited is incorporated in England.
The ultimate parent company is JRH (Staffs Group) Limited. The registered office address is The Coal Yard, Milton Road, Stoke On Trent, Staffordshire, ST1 6LE.
The ultimate controlling party is Mr J Harrison who owns a majority shareholding in JRH (Staffs Group) Limited.
25
Prior period adjustment
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in loss for the previous financial period
2023
£
Total adjustments
-
Loss as previously reported
(231,173)
Loss as adjusted
(231,173)
Milton Garden Products Limited
Notes to the financial statements (continued)
For the year ended 30 November 2024
25
Prior period adjustment
(Continued)
- 25 -
Notes to reconciliation
The directors have identified errors in the classification of various costs (including wages and haulage) in the prior period between cost of sales, selling and distribution and administrative expenses. Prior period adjustments have been processed to correct these errors. This has had the impact of reducing cost of sales by £2,028,321, increasing selling and distribution costs by £2,340,645 and reducing administrative expenses by £312,324. Gross profit as a result has increased by £2,028,321, although over net profit after tax in the prior period remains unchanged.
The above changes have no impact of the Statement of financial position.
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