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FOR THE 53 WEEKS ENDED 5 JANUARY 2025
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WEBBS GARDEN CENTRES LIMITED
COMPANY INFORMATION
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WEBBS GARDEN CENTRES LIMITED
CONTENTS
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WEBBS GARDEN CENTRES LIMITED
STRATEGIC REPORT
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
The principal activity of the business during the year was that of the retailing of garden supplies and leisure products.
The results for the period and financial position of the Company are as shown in the annexed financial statements. Total revenue for the 53-week period for the Group was £32.5m (2023: £31.7m) and the profit before taxation for the period was £1m (2023: £552k), after adding back depreciation of £428k (2023: £397k) relating to the Freehold Property Valuation. The tax charge reported in the last 2 years only relates to deferred tax over that period. On the back of a tough trading period during the last two years, the economic environment continued to be highly unpredictable during 2024, not helped by the uncertainty of a UK general election in July 2024 and a presidential election in the US later in the year. Both elections resulted in a change of government which resulted in stagnating economic conditions as reforms were worked through. Cost inflation eased somewhat during 2024, dropping to just over 2% in June 2024. However, this did not mean prices fell from peak highs in 2023, so consumer spending power remained difficult especially as interest rates remained at their highest point in the last 15 years. This, along with another significant increase in National Living/Minimum Wage in April 2024 continued to put pressure on businesses. However, the investment in our Solar Farm at our large Wychbold site during 2023 has enabled us to generate enough power to cover broadly 65% of our annual energy usage at that site, and in turn manage one of our largest overheads to help largely offset the additional wage pressures during the year. Our trading performance in 2024 shows sales and profits well up on last year, even after the challenging economic conditions above and also one of the wettest Spring & Summer seasons on record, which was challenging for the Garden Centre sector. Catering and Food sales remained strong reflecting customer footfall into our stores and the strength of our brand. We also saw good returns on our recent instore investments, from new stock ranges and improved shop fit. We also had another very strong Golden Quarter over the Christmas period which helped us recover some of the lost Spring gardening sales from earlier in the year, reduced end of season clearance activity which helped margin performance and ensured our growing Christmas Events programme was more successful than ever. Our Events experiences continue to triumph as we find the appetite for experience and wow remains strong across our customers. We continue to invest in making our stores look great and be great experiences to visit, including fully refurbishing and extending our restaurant and kitchen facilities at our Millets Farm centre, which reopened in November 2024. This capital investment project caused disruption to that store’s trading performance in the year, such that we expect to see significant improvement in both sales and profit in 2025 driven by a full year of trading with that new restaurant fully operational. Current trading to May 2025 shows sales and profits to be well ahead of last year, aided by lovely Spring weather conditions since start of March 2025, and ongoing strong control of overheads across the business. Another significant increase in National Living/Minimum Wage, as well as significant increases in Employers NI contributions, from April 2025 continue to put pressure on businesses, especially those in the Retail and Hospitality sector. We have taken measures as a business in the last four months to mitigate the impact of these increased employment costs in 2025 and are confident our business is in a stronger position to drive growth and protect cash flows. The directors aim to ensure the company continues to produce sustained growth within its principal activities and sources products and delivers services that are attractive to its marketplace to ensure its continued profitability. Webbs continues to have a strong Balance Sheet and Reserves position, and has remained financially self-sufficient throughout the period, generating strong operating cash flows to support reinvestment into keeping our business relevant and entrepreneurial, whilst maintaining strong support from our funding partners. We have fully paid down on four bank loans during the year which will help improve cash flows and reduce interest costs going into 2025.
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WEBBS GARDEN CENTRES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
As previously mentioned, we have continued to invest significantly in several capital projects in 2024 to ensure the ongoing long-term development of the business, its store estate and online platform. In addition to the refurbishment and extension of the restaurant and kitchen at our Millets Farm store, we have also refitted the entire Plant department at our Cheltenham store, invested in Flood Benches in our Wychbold Plant department, reskinned the reservoir at our Wychbold site to enable us to continue to self-irrigate the entire site which has enormous environmental benefits, as well as began development of both a new HR & Payroll System and QR ordering in our restaurants. Both latter projects are ongoing during 2025 to date. The net book value of tangible and intangible fixed assets has remained consistent at £26.6m in 2024 compared to £26.9m in 2023. Expenditure on tangible fixed assets in 2024 was £0.9m (2023: £2.7m), which was all funded through operating cash flows and explains why our cash position is lower than the previous year-end. We are satisfied that our operating cash flow position remains strong, and we have the ability to further utilise our existing Asset Finance Bank Facility as and when required. A formal Freehold Property Valuation was carried out on an existing use basis on our Wychbold site by Savills in April 2024. This resulted in a £3m reduction to the reported Freehold Property Valuation in 2023 – reversing the uplift of the same value in 2021 following the previous Property Valuation exercise performed by Savills during a very favourable garden sector environment post Covid. The Directors are satisfied that this Freehold Valuation has remained consistent at the end of 2024 and therefore no further revaluation is required in the current year.
The directors constantly monitor the risks and uncertainties facing the Company with particular reference to the exposure on exchange rates, liquidity, stocks, interest rates and credit risks. They are confident that there are suitable policies in place and there are no material risks and uncertainties which have not been considered.
The Company uses various financial instruments which include loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Company’s operations. The existence of these financial instruments exposes the Company to a number of financial risks, which are described in more detail below. The main risks arising from the Company’s financial instruments are currency risk, interest rate risk, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below. Currency Risk The Company has exposure to translation and transaction foreign exchange risk through its supply chain. Transaction exposures are hedged, principally using forward currency contracts. Whilst the aim is to achieve an economic hedge the Company does not adopt an accounting policy of hedge accounting for these financial statements. Liquidity Risk The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by utilising related Company funds. Interest Rate Risk The Company finances its operations through a mixture of retained profits, related Company funds and borrowings. The Company has previously used base rate caps and swaps to manage its interest rate risk. Credit Risk The Company’s principal financial assets are stock. It does not have significant credit risk in relation to Trade Debtors due to the retail nature of the business. Its principal trade debtors relate to rental amounts due from tenants who occupy parts of the sites at all four of our stores, which carries minimal risk due to contractual lease agreements in place and good covenance of tenants through estate management.
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WEBBS GARDEN CENTRES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
The directors monitor performance of the business using key performance indicators (KPI’s) both financial and non-financial. These are monitored at all levels of the business.
These include:
∙Sales units and value – monitored continually by customer, supplier, category and model range. Turnover has increased by 2.7% to £32.5 million in 2024 from £31.7 million last year.
∙Gross profit margin – raw material cost prices and currency rates are closely tracked. Gross profit margin percentage increased from 48.0% in 2023 to 48.4% in 2024. This was the result of reduced promotional and clearance activity with less end of season stock holdings and more measured buying strategies, as well as growth in our own grown nursery plant sales.
∙Wage to sales ratios – total wages as a percentage of sales increased from 26.7% in 2023 to 27.3% in 2024, driven by the 10% increases in the National Living Wage from April 2024.
∙Stock turn – as at 31 December 2024 stock was turning at 3.3 times per annum based on the previous 12 months cost of sales. This is an improvement from the previous year-end at 3.0 times per annum due to having lower levels of seasonal stock carry over (including Furniture and Christmas) and increased focus on reducing aged stock across the business.
∙Customer numbers and footfall are tracked at all of our stores.
∙Cash flow targets – forecasts are established and reviewed weekly and monthly to ensure working capital is effectively managed.
∙Staff retention and wellbeing – monitored to ensure employee welfare is at the forefront of the business.
∙Customer service – levels of quality and performance are continually reviewed to maximise customer satisfaction.
The directors recognise that there are some serious environmental and local community challenges that come with running a business responsibly. Webbs is currently not a totally sustainable business but is taking many steps to get there. Ongoing practices such as recycling waste materials and controlling energy usage are now well established, with ongoing investment in LED lighting and more energy efficient heating equipment for our stores and offices. In addition to the solar panels on our store roof, we are now at least 65% energy self-sufficient at our main Wychbold site since the beginning of 2024 with our onsite Solar Farm in full operation. We are also assessing the feasibility of having solar arrays at our other centres and have recently signed off the installation of solar panels on the roof at our Millets Farm store during 2025, which should mean up to 50% of our energy usage at that site will be self-generated.
Water conservation remains of paramount importance, and we benefit from rainwater harvesting in the irrigation of our retail areas. We had our onsite reservoir relined at our Wychbold site which will last at least another 25-30 years.
This report was approved by the board on 17 July 2025 and signed on its behalf.
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WEBBS GARDEN CENTRES LIMITED
DIRECTORS' REPORT
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
The directors present their report and the financial statements for the 53 weeks ended 5 January 2025.
The profit for the 53 weeks, after taxation, amounted to £212,219 (2023: loss £69,107).
Dividends of £285,000 (2023: £285,000) were declared in the year.
The directors who served during the 53 weeks were:
The Directors always have the long-term health of the business at the forefront of their decision making, including reviews and assessments of 5-year plans to drive future growth. The majority shareholder of the business is one of the three Directors, so the long-term business strategy is paramount to the ongoing thoughts of the Directors.
The Directors recognise that the reputation of the business is hugely important with its colleagues, customers, and suppliers alike. The decisions the Directors make will always consider at least preserving the reputation of the business, given the strength of its brand reputation in the local regions surrounding its store portfolio. The Directors take a zero-tolerance approach to any illegal or other such actions which may harm the reputation of the business in any way.
The Company’s strategy remains one of steady investment in the estate, maintaining and growing revenue and the profit base and reducing net debt despite ongoing challenges such as cost inflation, National Living/Minimum Wage and Employer NI contribution increases and wider Regulatory compliance requirements. Focus for 2025 is to review the lowest profit-making categories in the business and drive action plans to turnaround performance in those areas, implement a new HR & Payroll system, as well as continuous improvements to our EPOS, ERP & Hospitality systems and processes to drive productivity and reporting benefits. These improvements must ensure we maintain and improve our customer and colleague experiences both in store and online. We are also looking to invest in ways to become a more sustainable business, including the installation of Solar Panels on the roof of our Millets Farm store during 2025.
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WEBBS GARDEN CENTRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
Webbs Garden Centres Limited are committed to the development and improvement of all employees within the business. We believe that we can only improve if we continue to communicate regularly and receive feedback from all those involved in the business. Employees are kept well informed of the performance and objectives of the business through weekly meetings, monthly newsletters and bi-annual Director presentations and Chairman statements.
Employees have continued to play a key role in shaping the development of the business including product ranging and store layout decisions ahead of refit programmes in all our stores. Employees are fully appraised and consulted on any significant changes to company policy. Directors and senior management, whilst based at our store in Wychbold, regularly discuss matters of concern and interest with employees across all our sites. We conduct an annual employee survey, through ‘Great Places To Work’, the findings of which have helped us shape our Company welfare and development strategy.
We introduced a more formalised Career Paths Document in 2018 and further developed colleague training and career development pathways in 2019, to ensure we are supporting the development of all our employees, no matter what stage of their careers with us. This includes a Specialist Training Guarantee open to all permanent Webbs employees, to gain a recognised formal qualification in their specialist areas. This is being used in employee appraisals to help set objectives and improve motivation and drive performance at all levels. We have invested heavily in our HR team in the last few years to enable us to focus more time on developing this career pathway and training programme across the business to drive performance levels and buy-in from all colleagues. We also run a Future Leaders Programme for all Webbs employees who are not already at Supervisor level or above and who would like to develop their leadership skills for the future. An important people objective in 2025 is completing the installation of a new HR & Payroll System to ensure we can provide all our colleagues with the best and most efficient platform to communicate, learn and develop within our business. This will automate many current manual processes and ensure rota costings are more accurate and consistently managed better as a business going forwards. This will also enable more time for our HR team to focus on improving our learning and development modules and save time in the administration of recruitment and onboarding of colleagues.
Webbs Garden Centres Limited is an equal opportunities employer and actively recruits from all aspects of society. It is the company policy to promote an environment free from discrimination, harassment and victimisation, where everyone will receive equal rights regardless of gender, colour, ethnic origin, disability, age, marital status, sexual orientation or religion. All decisions relating to employment practices are based solely upon work criteria and individual merit.
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WEBBS GARDEN CENTRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
Webbs Garden Centres Limited is a totally customer-focused business, all our decisions on strategy and future development are with our customers at the forefront of our thoughts. The majority of our customers are those who shop either at our stores or online via our website. Sales transactions with these retail customers are immediate, in that the customer pays for the goods they buy at the time of buying them. Our only debtors in relation to these retail customers relate to credit card or digital payment transactions which take approximately 2-3 days to clear in our bank account from the respective merchant providers. We only recognise these sales in our accounts once the stock has transferred ownership from us to the customer.
We very rarely undertake business to business transactions, although we do have a small number of wholesale customer accounts who pay within 30 days for the goods or services they receive. Our only other customers are our tenants, who lease areas of our properties for the purposes of their own retail trading activity. Our tenants pay us rental and service charges over the respective agreed contractual lease terms, and these are invoiced and paid either monthly or quarterly depending on the tenant agreement in place. Webbs Garden Centres Limited ensures it maintains very strong relationships with all its suppliers, whether they relate to the supply of retail items for sale in our stores, or services and non-stock items and consumables. Our standard payment terms of agreement with our suppliers are End of Month 60 days (“EOM60”) from date of invoice, although we have a variety of payment terms agreed and in place across our suppliers depending on the nature of the stock or service involved. We make weekly supplier payment runs and pay our invoices on a timely basis unless we are awaiting credit notes being agreed with respective suppliers in turn. Creditor days at 5 January 2025 were 57 compared to 54 days at 31 December 2023. This variance is due to more of our suppliers moving to our standard payment terms of EOM60 days, as well as the timing and value of month-end payment runs at the year-end, as most of our supplier payments are made at the end of the calendar month, whereas our accounting periods are on a 4-4-5 basis.
The Company’s energy consumption for the 53 weeks to 5 January 2025 was 1,932,598 kWh across our 4 sites. This equates to total greenhouse gas emissions of 428,163 kgs of Carbon Dioxide during that period. This is calculated by taking the sum of all electricity and gas usage in kWh from the respective meters at each site which are generated by Webbs Garden Centres Limited and excludes usage by our Tenants onsite. This has decreased by over 20% from the previous year due to the installation of our Solar Farm at our largest Wychbold site which generates 65% of our energy usage at that site since start of 2024.
We also generated greenhouse gas emissions of approximately 148,378 kgs of Carbon Dioxide from fuel consumption by our own transport fleet during the period. This reflects us having our own fleet of 8 Lorries/Vans (reducing to 6 over the winter months) to deliver goods direct to customers (and between stores) from all 4 stores to significantly reduce the use of couriers. This has increased from the previous year due to using our own fleet more than couriers for customer deliveries, increased customer order volumes (both in store and via our website) which require delivery, as well as transferring more of our own grown plants from our nursery at our Wychbold site, which has significantly increased the volume of journeys to and from all our stores over the year. We have tracker devices in our fleet of vehicles to ensure we can monitor their usage and look to reduce journeys wherever possible. We are always mindful of the environmental impact that travel can have, so our employees have continued to engage in video conferencing and digital communication methods to minimise the amount of travel required, both in the UK and overseas, and we continue to review the cost and availability of Electric vehicles to suit our needs and the infrastructure required to support that future investment.
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WEBBS GARDEN CENTRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
Please refer to the section under ‘Environment’ in the Strategic Report for further information on the Company’s Environmental and Sustainability strategy and measures which Webbs Garden Centres Limited has undertaken and is considering to improve energy efficiency in the period and in future, including new radiant heaters installed within our 3 stores in 2020, our new solar farm at Wychbold in 2023 and future investment in more solar panels at our other sites and LED lighting in the next 3-5 years, which would result in Webbs becoming much more self-sufficient as a business. GOING CONCERN The Directors have considered the implications of external factors (such as the global conflicts between Russia and Ukraine, and Israel and Palestine, and the ongoing economic environment in the UK) in relation to the risk of the business continuing to operate as a going concern and have concluded that there are sufficient cash resources in place to trade through the current economic climate, as well as having the ongoing support of our bank and funding providers as required. They have not identified any significant issues that are expected to affect the company's ability to continue as a going concern. Whilst the business is in a net current liability position, this reflects ongoing investment in working capital, as well as capital improvements to all sites for future enhanced returns, funded through operating cash flows. The net current liability position has improved by £281k from last year and the business has fully repaid on four bank loans in 2024 which will improve this position further going into 2025. It should also be noted that the longer-term liabilities have reduced significantly, strengthening the Balance Sheet, therefore the Directors do not consider this to be a going concern issue, especially given the improved trading position during 2025 to date and the ongoing support of their bank and funding providers as required. They have not identified any significant issues that are expected to affect the company's ability to continue as a going concern.
There have been no significant events affecting the Company since the year end.
The auditors, Bishop Fleming LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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WEBBS GARDEN CENTRES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 to 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.
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WEBBS GARDEN CENTRES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEBBS GARDEN CENTRES LIMITED
We have audited the financial statements of Webbs Garden Centres Limited (the Company) for the 53 weeks ended 5 January 2025, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Analysis of Net Debt, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
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 Auditors' 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.
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WEBBS GARDEN CENTRES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEBBS GARDEN CENTRES LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial 53 weeks 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.
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.
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 Auditors' 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.
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WEBBS GARDEN CENTRES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEBBS GARDEN CENTRES LIMITED (CONTINUED)
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙the nature of the industry and sector, control environment and business performance;
∙results of our enquiries of management and the board about their own identification and assessment of the risks of irregularities;
∙any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
°identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non compliance
°detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
°the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
∙the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, which included incorrect recognition of revenue and management override of controls using manual journal entries, and these were identified as the greatest potential area for fraud.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included occupational health and safety regulations and employment legislation. Our procedures to respond to risks identified included the following:
∙reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙reviewing the financial statements disclosures and testing to supporting documentation to assess the recognition of revenue;
∙enquiring of management and those charged with governance concerning actual and potential litigation and claims;
∙performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
∙reading minutes of meetings of those charged with governance; and
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WEBBS GARDEN CENTRES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEBBS GARDEN CENTRES LIMITED (CONTINUED)
∙in addressing the risk of fraud through management override of controls:
°testing the appropriateness of journal entries and other adjustments;
assessing whether the judgments made in making accounting estimates are indicative of a potential bias; and
°evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for an example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
1-3 College Yard
WR1 2LB
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WEBBS GARDEN CENTRES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
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WEBBS GARDEN CENTRES LIMITED
REGISTERED NUMBER:00777596
STATEMENT OF FINANCIAL POSITION
AS AT 5 JANUARY 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 19 to 42 form part of these financial statements.
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WEBBS GARDEN CENTRES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
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WEBBS GARDEN CENTRES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE 52 WEEKS ENDED 31 DECEMBER 2023
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WEBBS GARDEN CENTRES LIMITED
STATEMENT OF CASH FLOWS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
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WEBBS GARDEN CENTRES LIMITED
ANALYSIS OF NET DEBT
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
Webbs Garden Centres Limited is a private company, limited by shares, registered in England and Wales. The registered office is Worcester Road, Wychbold, Droitwich, Worcestershire, WR9 0DG.
The company registration number is: 00777596. The functional and presentation currency of the financial statements is the Pound Sterling (£). The current financial year is a 53 week period to 5 January 2025, but is presented in the financial statements as '2024'. The comparative financial year is presented as '2023', and is a 52 week period to 31 December 2023.
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Directors have considered the implications of external factors (such as the global conflicts between Russia and Ukraine, and Israel and Palestine, and the ongoing economic environment in the UK) in relation to the risk of the business continuing to operate as a going concern and have concluded that there are sufficient cash resources in place to trade through the current economic climate, as well as having the ongoing support of our bank and funding providers as required.
Whilst the business is in a net current liability position, this reflects ongoing investment in working capital, as well as capital improvements to all sites for future enhanced returns, funded through operating cash flows. They have not identified any significant issues that are expected to affect the company's ability to continue as a going concern.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
2.ACCOUNTING POLICIES (CONTINUED)
GOODWILL
OTHER INTANGIBLE ASSETS
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
2.ACCOUNTING POLICIES (CONTINUED)
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided at the following annual rates in order to write off each asset over the estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
2.ACCOUNTING POLICIES (CONTINUED)
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
2.ACCOUNTING POLICIES (CONTINUED)
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic 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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
2.ACCOUNTING POLICIES (CONTINUED)
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
2.ACCOUNTING POLICIES (CONTINUED)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
2.ACCOUNTING POLICIES (CONTINUED)
The difference between the purchase price and estimated residual value of a fixed asset which has a limited useful economic life should be allocated on a systematic basis to each accounting period during the useful life of the asset. The depreciation/amortisation charge for each period should be recognised as an expense in the profit and loss account unless it is permitted to be included in the carrying amount of another asset. For each major class of depreciable asset the method of depreciation/amortisation and the or depreciation/amortisation rates have been disclosed. Property Valuation The properties are revalued periodically, as required, by the Directors and independent valuers. The valuation is subject to, among other factors, the nature of the property, market conditions, expected trade and rental income. As a result, the valuation incorporated into the financial statements is subject to a degree of uncertainty and is made on the basis of assumptions which may prove to be inaccurate particularly in periods of volatility or low transaction flow in the market.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
All turnover arose within the United Kingdom and related to the one principal activity of the company.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
Page 30
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
12.TAXATION (CONTINUED)
There were no factors that may affect future tax charges.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 53 WEEKS ENDED 5 JANUARY 2025
Page 32
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