THE FLOWER CONNECTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Company registration number 03689283 (England and Wales)
THE FLOWER CONNECTION LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
THE FLOWER CONNECTION LIMITED
COMPANY INFORMATION
Directors
Mr A P Dewey
Mr D A Heritage
Mr W D Dewey
Company number
03689283
Registered office
Yorkshire Produce Centre
Pontefract Lane
Leeds
LS9 0PX
Auditor
Azets
Carlton House
Grammar School Street
Bradford
BD1 4NS
THE FLOWER CONNECTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
The company is engaged in the import and wholesale distribution of fresh flowers, plants, and floral sundries. We operate from our premises in Leeds, where we run a trade-focused cash and carry, but the core of our business is our online web shop and delivery network, servicing a B2B client base in the Midlands and North of England
The business demonstrated resilience during 2024, a year marked by significant challenges. Post-Brexit trading conditions continued to disrupt the supply chain, particularly from Holland, increasing lead times and import costs. Despite this, and the strategic closure of our Sheffield branch in January 2024 we have had a very consistent and positive trading year.
We have a clear and focused three-year growth plan in place. This is centred on increasing turnover, expanding our geographic reach, and constantly seeking efficiencies and sales opportunities to improve performance across the board.
Going Concern
The business traded in line with expectations in the 12-month period to 31 December 2024, delivering consistent sales, operating profit, and PBIT performance. This result is in keeping with the prior year’s outcomes and aligned with the forecast model prepared by senior management.
We continue to invest in long-term capability, with a dedicated Business Development team targeting growth opportunities and a strong Customer Success team focused on retention and building sustainable client relationships. Our ambition is to achieve £20 million in turnover with a 5% net profit margin by 2028.
Competition
The competitive landscape has evolved significantly in recent years. Due to a significant closure of wholesale companies in the UK in recent years, other Dutch Flower Suppliers are increasingly targeting the UK market directly. However, we continue to hold a competitive edge through our local stockholding, enabling next-day delivery, in contrast to the 48-hour turnaround offered by continental suppliers.
In an industry that now operates predominantly on a just-in-time model, this speed and flexibility remain critical to our clients, who are seeking to minimise their own stockholding risks. We continue to explore new ways to strengthen and grow our market position.
Principal risks and uncertainties
As with any business, we face ongoing risks and uncertainties. The key risks include:
Increased competition from direct European suppliers
Disruption in the supply chain due to post-Brexit regulations
Rising operational costs, including labour and logistics
Foreign exchange volatility affecting purchasing
The business actively monitors these risks and adjusts strategy accordingly.
Economic Climate
Brexit has had a lasting impact on our sector, particularly regarding the importation of perishable goods. Increased red tape, delays at ports, and administrative complexity continue to challenge our operational efficiency. Combined with rising employment costs and inflationary pressure on key inputs, profitability remains under pressure. Nonetheless, our strategy and operational discipline have enabled us to navigate these headwinds effectively.
Liquidity Risk
The company expects to meet all of its financial obligations as they fall due. These obligations are projected to be met through normal operating cash flows and ongoing working capital management.
Customer Credit Risk
We offer a range of payment terms based on customer type and history, from payment on order through to credit accounts. While this approach supports customer growth and retention, it also introduces credit risk. We experienced some significant bad debts in the year, but proactive credit control measures and strong client relationships help to mitigate this risk.
THE FLOWER CONNECTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Key performance indicators
The directors consider the following as the primary financial performance indicators:
Financial Highlights:
Turnover: £13,381,388 (2023: £14,355,983)
Operating Profit: £663,349 (2023: £91,560)
Operating Margin: 4.96% (2023: 0.64%)
Profit Before Tax: £639,454 (2023: £51,553)
The directors are satisfied with the company’s performance over the period and the continued progress towards our long-term objectives.
Mr W D Dewey
Director
20 August 2025
THE FLOWER CONNECTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of wholesale flower distribution.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £182,626. The directors do not recommend payment of a further 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 A P Dewey
Mr D A Heritage
Mr W D Dewey
Auditor
Azets were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
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.
On behalf of the board
Mr W D Dewey
Director
20 August 2025
THE FLOWER CONNECTION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
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.
THE FLOWER CONNECTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE FLOWER CONNECTION LIMITED
- 5 -
Qualified of opinion on financial statements
We have audited the financial statements of The Flower Connection Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
We were appointed as auditor of the company after 31 December 2023 and thus did not observe the counting of physical stock at the start of the year. We were unable to satisfy ourselves by alternative means concerning the stock quantities held and the stock valuation at 31 December 2023, which is included in the profit & loss account and balance sheet at £441,606, by using other audit procedures for opening balances and comparatives. Consequently we were unable to determine whether any adjustment to this amount was necessary.
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.
THE FLOWER CONNECTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE FLOWER CONNECTION LIMITED
- 6 -
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 respect solely of the limitation on our work relating to existence and valuation of the opening stock, described above:
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
we were unable to determine whether adequate accounting records had been maintained.
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.
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.
THE FLOWER CONNECTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE FLOWER CONNECTION LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Victoria Wainwright
Senior Statutory Auditor
For and on behalf of Azets
26 August 2025
Chartered Accountants
Statutory Auditor
Carlton House
Grammar School Street
Bradford
BD1 4NS
THE FLOWER CONNECTION LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
13,381,388
14,355,983
Cost of sales
(9,761,158)
(10,545,883)
Gross profit
3,620,230
3,810,100
Administrative expenses
(3,297,570)
(3,718,540)
Other operating income
340,689
Operating profit
5
663,349
91,560
Interest receivable and similar income
8
9,999
(10,000)
Interest payable and similar expenses
9
(33,894)
(30,007)
Profit before taxation
639,454
51,553
Tax on profit
10
(198,484)
(64,326)
Profit/(loss) for the financial year
440,970
(12,773)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THE FLOWER CONNECTION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
£
£
Profit/(loss) for the year
440,970
(12,773)
Other comprehensive income
-
-
Total comprehensive income for the year
440,970
(12,773)
THE FLOWER CONNECTION LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
1,047,959
1,196,024
Tangible assets
13
286,965
622,456
1,334,924
1,818,480
Current assets
Stocks
14
413,515
441,606
Debtors
15
733,603
829,841
Cash at bank and in hand
646,844
602,610
1,793,962
1,874,057
Creditors: amounts falling due within one year
16
(2,462,973)
(2,890,355)
Net current liabilities
(669,011)
(1,016,298)
Total assets less current liabilities
665,913
802,182
Creditors: amounts falling due after more than one year
17
(171,968)
(563,016)
Provisions for liabilities
Deferred tax liability
20
70,615
74,180
(70,615)
(74,180)
Net assets
423,330
164,986
Capital and reserves
Called up share capital
22
7,100
7,100
Profit and loss reserves
416,230
157,886
Total equity
423,330
164,986
The financial statements were approved by the board of directors and authorised for issue on 20 August 2025 and are signed on its behalf by:
Mr W D Dewey
Director
Company Registration No. 03689283
THE FLOWER CONNECTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
7,100
324,281
331,381
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
(12,773)
(12,773)
Dividends
11
-
(153,622)
(153,622)
Balance at 31 December 2023
7,100
157,886
164,986
Year ended 31 December 2024:
Profit and total comprehensive income for the year
-
440,970
440,970
Dividends
11
-
(182,626)
(182,626)
Balance at 31 December 2024
7,100
416,230
423,330
THE FLOWER CONNECTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
235,925
1,588,861
Interest paid
(33,894)
(30,007)
Income taxes paid
(47,480)
(42,937)
Net cash inflow from operating activities
154,551
1,515,917
Investing activities
Purchase of intangible assets
(1,255,646)
Purchase of tangible fixed assets
(111,260)
(155,196)
Proceeds from disposal of tangible fixed assets
355,075
(101,683)
Repayment of loans
(24,810)
(4,900)
Dividends received
9,999
(10,000)
Net cash generated from/(used in) investing activities
229,004
(1,527,425)
Financing activities
Repayment of borrowings
256,916
Repayment of bank loans
(134,589)
(21,414)
Payment of finance leases obligations
(22,106)
74,839
Dividends paid
(182,626)
(153,622)
Net cash (used in)/generated from financing activities
(339,321)
156,719
Net increase in cash and cash equivalents
44,234
145,210
Cash and cash equivalents at beginning of year
602,610
457,400
Cash and cash equivalents at end of year
646,844
602,610
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information
The Flower Connection Limited is a private company limited by shares incorporated in England and Wales. The registered office is Yorkshire Produce Centre, Pontefract Lane, Leeds, LS9 0PX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
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.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
20% Straight line
Fixtures and fittings
20% Straight line
Motor vehicles
25% Straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet 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.
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
1.10
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.
1.11
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 profit and loss account 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.
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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 profit and loss account, 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
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.
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales
13,381,388
14,355,983
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
13,381,388
14,355,983
2024
2023
£
£
Other revenue
Dividends received
9,999
(10,000)
4
Exceptional item
2024
2023
£
£
Income
Profit on sale of property
340,689
-
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
22,000
Depreciation of owned tangible fixed assets
126,379
140,616
(Profit)/loss on disposal of tangible fixed assets
(34,703)
13,270
Amortisation of intangible assets
148,065
127,125
Operating lease charges
155,732
159,770
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Employees
62
71
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 19 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,732,257
2,000,370
Social security costs
141,420
173,961
Pension costs
36,842
37,415
1,910,519
2,211,746
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
18,192
18,192
8
Interest receivable and similar income
2024
2023
£
£
Other income from investments
Dividends received
9,999
(10,000)
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
12,856
17,211
Other interest on financial liabilities
20,188
12,796
33,044
30,007
Other finance costs:
Other interest
850
33,894
30,007
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
202,049
47,480
Deferred tax
Origination and reversal of timing differences
(3,565)
16,846
Total tax charge
198,484
64,326
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
639,454
51,553
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
159,864
12,125
Tax effect of expenses that are not deductible in determining taxable profit
1,045
2,352
Tax effect of income not taxable in determining taxable profit
(2,500)
Permanent capital allowances in excess of depreciation
(111,777)
(135)
Depreciation on assets not qualifying for tax allowances
31,595
3,236
Amortisation on assets not qualifying for tax allowances
37,016
29,900
Deferred tax adjustments in respect of prior years
(3,565)
16,848
Chargeable gains
86,806
Taxation charge for the year
198,484
64,326
11
Dividends
2024
2023
£
£
Final paid
182,626
153,622
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
1,480,649
Amortisation and impairment
At 1 January 2024
284,625
Amortisation charged for the year
148,065
At 31 December 2024
432,690
Carrying amount
At 31 December 2024
1,047,959
At 31 December 2023
1,196,024
13
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
347,397
146,352
363,121
856,870
Additions
14,260
97,000
111,260
Disposals
(347,397)
(48,100)
(395,497)
At 31 December 2024
160,612
412,021
572,633
Depreciation and impairment
At 1 January 2024
26,166
61,671
146,577
234,414
Depreciation charged in the year
5,694
25,073
95,612
126,379
Eliminated in respect of disposals
(31,860)
(43,265)
(75,125)
At 31 December 2024
86,744
198,924
285,668
Carrying amount
At 31 December 2024
73,868
213,097
286,965
At 31 December 2023
321,231
84,681
216,544
622,456
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
413,515
441,606
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
706,306
826,735
Other debtors
24,810
1
Prepayments and accrued income
2,487
3,105
733,603
829,841
16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
18
10,000
21,415
Obligations under finance leases
19
70,467
81,615
Other borrowings
18
256,916
256,916
Trade creditors
1,682,007
2,029,246
Amounts owed to group undertakings
1
10,000
Corporation tax
202,049
47,480
Other taxation and social security
214,533
232,981
Other creditors
205,162
Accruals and deferred income
27,000
5,540
2,462,973
2,890,355
17
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
18
4,167
127,341
Obligations under finance leases
19
103,572
114,530
Other creditors
64,229
321,145
171,968
563,016
18
Loans and overdrafts
2024
2023
£
£
Bank loans
14,167
148,756
Other loans
256,916
256,916
271,083
405,672
Payable within one year
266,916
278,331
Payable after one year
4,167
127,341
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
18
Loans and overdrafts
(Continued)
- 23 -
Bank loans relates to a government backed bounce back loan. Interest rate of 2.5% and is repayable in May 2026.
Other loans relates to an oustanding loan between The Flower Connection Limited and GT Produce Limited, which relates to the acquisition of GT Flowers in 2023. The amount is payable in accordance of the terms of the sale agreement.
19
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
70,467
81,615
In two to five years
103,572
114,530
174,039
196,145
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. 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 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
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
70,615
74,180
2024
Movements in the year:
£
Liability at 1 January 2024
74,180
Credit to profit or loss
(3,565)
Liability at 31 December 2024
70,615
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
36,842
37,415
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.
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
7,000
7,000
7,000
7,000
Ordinary A shares of £1 each
40
40
40
40
Ordinary B shares of £1 each
40
40
40
40
Ordinary C shares of £1 each
20
20
20
20
7,100
7,100
7,100
7,100
23
Directors' transactions
Interest free loans have been granted by/(to) the company to/(from) its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr W D Dewey - Directors Loan Account
-
(5,334)
101,168
(86,168)
9,666
Mr A P Dewey - Directors Loan Account
-
(199,855)
210,000
(10,000)
145
Mr D A Heritage - Directors Loan Account
-
290
101,168
(86,458)
15,000
(204,899)
412,336
(182,626)
24,811
THE FLOWER CONNECTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
24
Cash generated from operations
2024
2023
£
£
Profit/(loss) for the year after tax
440,970
(12,773)
Adjustments for:
Taxation charged
198,484
64,326
Finance costs
33,894
30,007
Investment income
(9,999)
10,000
(Gain)/loss on disposal of tangible fixed assets
(34,703)
13,270
Amortisation and impairment of intangible assets
148,065
127,125
Depreciation and impairment of tangible fixed assets
126,379
140,616
Movements in working capital:
Decrease/(increase) in stocks
28,091
(175,896)
Decrease/(increase) in debtors
121,048
(36,384)
(Decrease)/increase in creditors
(816,304)
1,428,570
Cash generated from operations
235,925
1,588,861
25
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
602,610
44,234
646,844
Borrowings excluding overdrafts
(405,672)
134,589
(271,083)
Obligations under finance leases
(196,145)
22,106
(174,039)
793
200,929
201,722
2024-12-312024-01-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.100Mr A P DeweyMr D A HeritageMr W D Dewey036892832024-01-012024-12-3103689283bus:Director12024-01-012024-12-3103689283bus:Director22024-01-012024-12-3103689283bus:Director32024-01-012024-12-3103689283bus:RegisteredOffice2024-01-012024-12-31036892832024-12-31036892832023-01-012023-12-3103689283core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3103689283core:RetainedEarningsAccumulatedLosses2024-01-012024-12-3103689283core:Goodwill2024-12-3103689283core:Goodwill2023-12-31036892832023-12-3103689283core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-12-3103689283core:FurnitureFittings2024-12-3103689283core:MotorVehicles2024-12-3103689283core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3103689283core:FurnitureFittings2023-12-3103689283core:MotorVehicles2023-12-3103689283core:CurrentFinancialInstrumentscore:WithinOneYear2024-12-3103689283core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3103689283core:Non-currentFinancialInstrumentscore:AfterOneYear2024-12-3103689283core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3103689283core:CurrentFinancialInstruments2024-12-3103689283core:CurrentFinancialInstruments2023-12-3103689283core:Non-currentFinancialInstruments2024-12-3103689283core:Non-currentFinancialInstruments2023-12-3103689283core:ShareCapital2024-12-3103689283core:ShareCapital2023-12-3103689283core:RetainedEarningsAccumulatedLosses2024-12-3103689283core:RetainedEarningsAccumulatedLosses2023-12-3103689283core:ShareCapital2022-12-3103689283core:RetainedEarningsAccumulatedLosses2022-12-3103689283core:ShareCapitalOrdinaryShareClass12024-12-3103689283core:ShareCapitalOrdinaryShareClass12023-12-3103689283core:ShareCapitalOrdinaryShareClass22024-12-3103689283core:ShareCapitalOrdinaryShareClass22023-12-3103689283core:ShareCapitalOrdinaryShareClass32024-12-3103689283core:ShareCapitalOrdinaryShareClass32023-12-3103689283core:ShareCapitalOrdinaryShareClass42024-12-3103689283core:ShareCapitalOrdinaryShareClass42023-12-3103689283core:ShareCapitalOrdinaryShares2024-12-3103689283core:ShareCapitalOrdinaryShares2023-12-310368928312024-01-012024-12-310368928312023-01-012023-12-31036892832023-12-3103689283core:Goodwill2024-01-012024-12-3103689283core:LandBuildingscore:LongLeaseholdAssets2024-01-012024-12-3103689283core:FurnitureFittings2024-01-012024-12-3103689283core:MotorVehicles2024-01-012024-12-3103689283core:UKTax2024-01-012024-12-3103689283core:UKTax2023-01-012023-12-310368928322024-01-012024-12-310368928322023-01-012023-12-310368928332024-01-012024-12-310368928332023-01-012023-12-3103689283core:Goodwill2023-12-3103689283core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3103689283core:FurnitureFittings2023-12-3103689283core:MotorVehicles2023-12-3103689283core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-01-012024-12-3103689283core:Non-currentFinancialInstruments12024-12-3103689283core:Non-currentFinancialInstruments12023-12-3103689283core:WithinOneYear2024-12-3103689283core:WithinOneYear2023-12-3103689283core:BetweenTwoFiveYears2024-12-3103689283core:BetweenTwoFiveYears2023-12-3103689283bus:OrdinaryShareClass12024-01-012024-12-3103689283bus:OrdinaryShareClass22024-01-012024-12-3103689283bus:OrdinaryShareClass32024-01-012024-12-3103689283bus:OrdinaryShareClass42024-01-012024-12-3103689283bus:OrdinaryShareClass12024-12-3103689283bus:OrdinaryShareClass12023-12-3103689283bus:OrdinaryShareClass22024-12-3103689283bus:OrdinaryShareClass22023-12-3103689283bus:OrdinaryShareClass32024-12-3103689283bus:OrdinaryShareClass32023-12-3103689283bus:OrdinaryShareClass42024-12-3103689283bus:OrdinaryShareClass42023-12-3103689283bus:AllOrdinaryShares2024-12-3103689283bus:AllOrdinaryShares2023-12-3103689283bus:PrivateLimitedCompanyLtd2024-01-012024-12-3103689283bus:FRS1022024-01-012024-12-3103689283bus:Audited2024-01-012024-12-3103689283bus:FullAccounts2024-01-012024-12-31xbrli:purexbrli:sharesiso4217:GBP