REGISTERED NUMBER: 07689770 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2024

for

Longacres Garden Centre Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

J M Erridge

N P Long

C J Long

REGISTERED OFFICE:

Longacres Nursery

London Road

Bagshot

Surrey

GU19 5JB

REGISTERED NUMBER:

07689770 (England and Wales)

AUDITORS:

WP Audit Services LLP

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

The board aim to present a review of the development and performance of the company during the year under review and its position at the year end. This review is consistent with the size and nature of the company and is written in the context of risks and uncertainties it faces.

During the period under review, the directors are pleased to report an increase of 7.5% in sales over the previous year.

The directors increased the gross profit margin from 32.8% to 34.6% and accordingly, despite inflationary pressures from wages and increased energy prices, profit before tax increased from £450,776 to £1,285,787.

The directors aim to maintain the company's existing management policies which have resulted in the company's successful period of trading. These policies include the intention to grow sales and maintain control over costs.

The directors consider that the results for the period to be satisfactory and are confident that the company will continue to trade profitably in the future. The continuing profitability has left the company in a sound financial position at the end of the year and is in line with the company's expectations.

KEY PERFORMANCE INDICATORS

The company regularly reports and monitors its performance against strategic objectives by means of key performance indicators (KPI’s). The principle KPI’s being turnover, gross profit margins, profit before taxation and liquidity.

2024

2023

£

£

Turnover

61,180,051

56,897,047

Gross profit margin

34.6%

32.8%

Profit before taxation

1,285,787

450,776

Net Current Assets

4,757,577

2,732,638

Cash generated from operations

940,610

3,641,304

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the company and the nature of its trading strategy are subject to a number of risks. The company operates a thorough risk assessment and management process which involves a formal review of all the risks identified and introducing processes to monitor and mitigate each risk, where possible.

Cost inflation and supply chain

The company continues to have a strong supply chain system, which allows it to negotiate better purchasing terms and work with suppliers to improve supply chain efficiency. However, the company remains exposed to periods of cost inflation and continually assesses any risks identified with the aim of mitigating the threats these may have on the company's operations and profitability.

Principal financial instruments

The company's principal financial instruments comprise bank balances, inventories, trade debtors, trade creditors and hire purchase finance. The main purpose of these instruments is to provide funds for the company's operations. Their existence exposes the group to a number of financial risks, which have been considered and are managed as follows:

Operational risk

Operational risk is the risk of a direct or indirect loss resulting from the inadequacies or failures of processes or controls due to technology, staff, organisation or external factors. To monitor and control operational risk, the company maintains a system of comprehensive policies and a control framework which is designed to provide a sound and well-controlled operational environment.

Liquidity risk

Liquidity risk is the risk that the company will have insufficient resources to meet its financial liabilities as they fall due. The company's strategy to managing liquidity risk is to ensure that the company has sufficient funds to meet all its potential liabilities as they fall due.

Interest rate risk

Interest rate risk is the risk that the financial performance of the company will be adversely affected by adverse fluctuations on interest rates being charged to the company on its financial instruments. The interest rate risk is managed by using short term agreements with fixed low interest rates. This is deemed sufficient to mitigate this risk.

Credit risk

The company has a significant and diverse customer base, ranging from large companies to individual customers. This, combined with undertaking stringent credit checks and the implementation of further safeguards, where necessary, minimises credit risk.

Currency risk

Currency risk is the risk that the financial performance of the company will be adversely affected by adverse fluctuations in foreign currencies used by the company. The company has minimal exposure to foreign currency risk.

The directors review the principal risks and uncertainties facing the company on a regular basis and ensure systems and policies are continuously updated to reflect any changes, they work in an efficient manner to minimise those risks and help achieve the company's objectives.

GOING CONCERN

The company's business activities, together with the factors likely to affect its future development, performance and position are set out above. After making enquiries, the directors have an expectation that the company's net current assets as at 31 December 2024 of £4.8m are more than sufficient to provide adequate resources to continue in operational existence for the foreseeable future.

The directors have therefore concluded that it is appropriate to prepare the financial statements on a going concern basis.

SECTION 172(1) STATEMENT

The Directors act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard to all matters set out in section 172 of the Companies Act 2006 when performing their duties and when making decisions for the long term.

Please refer to the Report of the Directors for further details regarding engagement with their employees and other stakeholders.

ON BEHALF OF THE BOARD:

N P Long - Director

29 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of garden centre operators. The company operated from six sites for the whole of the year.

DIVIDENDS

Interim dividends of £496,000 (2023: £376,000) were paid in the year. The directors recommend that no final dividend be paid.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

J M Erridge

N P Long

C J Long

ENGAGEMENT WITH EMPLOYEES

The company gives full consideration to applications for employment from disabled persons where the candidate's particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to all employees for training, career development and promotion.

Longacres is a family run business with directors working alongside staff and regularly having debriefs with shop management, supervisors, buyers and other staff: this allows employees to influence the decision-making process and encourages an awareness of the financial and economic factors affecting the performance of their departments, shops and the company as a whole. It also provides opportunities for employees to feedback information on matters of concern to them.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

Customer service is at the forefront of Longacres success and we are very much dependent on our employees to provide a first-class service to help us retain our competitiveness in such difficult times for the retail market. A dedicated customer service team, Facebook, Trust Pilot and other social media outlets all help provide essential feedback so the company can monitor our progress and adapt quickly to changing demands.

The supply of many varied quality products at competitive prices requires a large number of supply chains to be working effectively.

STREAMLINED ENERGY AND CARBON REPORTING

The SECR disclosures presents the company’s carbon footprints within the UK for scope 1,2 and 3 emissions

based on SECR Legislation, as appropriate intensity metric, the total energy use of electricity, gas and transport

fuel and an energy efficiency actions summary taken during the relevant financial year.

For the year ended 31 December 2024:

2024

2023

UK Energy consumption used to calculate emissions (kWh)

3,385,780

4,328,630

Associated Greenhouse gas emissions (Kg CO2e)

971,329

935,719

Associated Greenhouse gas emissions per £ turnover (Kg CO2e)

0.016

0.016

UK energy use covers total electricity purchases by the company for its own use, total quantity of consumption

of gas as fuel and total fuel used for business travel.

Associated Greenhouse gases have been calculated using 'GHG Reporting Protocol - Corporate Standard'

methodology.

The company continues to search for direct savings in energy and associated carbon emissions through

operational and technological improvements.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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;

-	state whether applicable 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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, WP Audit Services LLP, have indicated their willingness to continue in office.

ON BEHALF OF THE BOARD:

N P Long - Director

29 September 2025

Opinion

We have audited the financial statements of Longacres Garden Centre Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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).

In our opinion 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 opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page six, 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 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.

Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We obtained an understanding of the legal and regulatory framework that the company operates in, focussing 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 include the Companies Act and tax legislation. In addition we considered the provisions of other laws and regulations that do not have an effect on the financial statements but compliance with which may be fundamental to the company's ability to incur or to avoid a material penalty, including the company's operating licences and environmental regulations.

Our procedures in response to the risks identified included reviewing the financial statements disclosures and testing supporting documentation to assess compliance with the provisions of relevant laws and regulations considered to have a direct effect in the financial statements, enquiring of management concerning actual or 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, reviewing correspondence with relevant regulatory authorities and in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements 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 audit risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 Report of the Auditors.

Use of our 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 a Report of the Auditors 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.

Andrew Carpenter (Senior Statutory Auditor)

for and on behalf of WP Audit Services LLP

Chancery House

30 St Johns Road

Woking

Surrey

GU21 7SA

29 September 2025

REVENUE

3

61,180,051

56,897,047

Cost of sales

(39,993,721

)

(38,241,606

)

GROSS PROFIT

21,186,330

18,655,441

Administrative expenses

(20,853,232

)

(19,275,978

)

333,098

(620,537

)

Other operating income

4

1,120,232

1,154,875

OPERATING PROFIT

6

1,453,330

534,338

Income from shares in group undertakings

1,092,153

-

Interest receivable and similar income

91,205

83,001

2,636,688

617,339

Amounts written off investments

7

(963,168

)

-

1,673,520

617,339

Interest payable and similar expenses

8

(387,733

)

(166,563

)

PROFIT BEFORE TAXATION

1,285,787

450,776

Tax on profit

9

(840,065

)

(239,786

)

PROFIT FOR THE FINANCIAL YEAR

445,722

210,990

PROFIT FOR THE YEAR

445,722

210,990

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

445,722

210,990

Note

Prior year adjustment

11

(1,144,557

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

(698,835

)

FIXED ASSETS

Intangible assets

12

5,985,505

7,072,971

Property, plant and equipment

13

17,051,609

17,377,051

Investments

14

-

963,168

23,037,114

25,413,190

CURRENT ASSETS

Inventories

15

6,129,726

6,058,827

Debtors

16

2,265,725

2,566,253

Cash at bank

2,203,352

3,444,371

10,598,803

12,069,451

CREDITORS

Amounts falling due within one year

17

(5,841,226

)

(9,336,813

)

NET CURRENT ASSETS

4,757,577

2,732,638

TOTAL ASSETS LESS CURRENT LIABILITIES

27,794,691

28,145,828

CREDITORS

Amounts falling due after more than one year

18

(3,128,125

)

(3,540,625

)

PROVISIONS FOR LIABILITIES

21

(486,100

)

(374,459

)

NET ASSETS

24,180,466

24,230,744

CAPITAL AND RESERVES

Called up share capital

22

9,501,000

9,501,000

Retained earnings

23

14,679,466

14,729,744

24,180,466

24,230,744

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2025 and were signed on its behalf by:

N P Long - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

9,501,000

14,894,754

24,395,754

Changes in equity

Dividends

-

(376,000

)

(376,000

)

Total comprehensive income

-

1,355,547

1,355,547

Balance at 31 December 2023

9,501,000

15,874,301

25,375,301

Prior year adjustment

-

(1,144,557

)

(1,144,557

)

As restated

9,501,000

14,729,744

24,230,744

Changes in equity

Dividends

-

(496,000

)

(496,000

)

Total comprehensive income

-

445,722

445,722

Balance at 31 December 2024

9,501,000

14,679,466

24,180,466

Cash flows from operating activities

Cash generated from operations

1

940,610

3,641,304

Interest paid

(387,733

)

(166,563

)

Tax paid

(668,262

)

(554,127

)

Net cash from operating activities

(115,385

)

2,920,614

Cash flows from investing activities

Purchase of intangible fixed assets

-

(1,956,082

)

Purchase of tangible fixed assets

(960,605

)

(5,299,982

)

Sale of tangible fixed assets

8,809

5,458

Interest received

91,205

83,001

Dividends received

1,092,153

-

Net cash from investing activities

231,562

(7,167,605

)

Cash flows from financing activities

New loans in year

-

3,953,125

Loan repayments in year

(412,500

)

-

Amount withdrawn by directors

(448,696

)

(547,905

)

Equity dividends paid

(496,000

)

(376,000

)

Net cash from financing activities

(1,357,196

)

3,029,220

Decrease in cash and cash equivalents

(1,241,019

)

(1,217,771

)

Cash and cash equivalents at beginning of year

2

3,444,371

4,662,142

Cash and cash equivalents at end of year

2

2,203,352

3,444,371

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31/12/24

31/12/23

as restated

£

£

Profit before taxation

1,285,787

450,776

Depreciation charges

2,366,846

2,204,226

Profit on disposal of fixed assets

(2,142

)

(5,458

)

Amounts written off investments

963,168

-

Finance costs

387,733

166,563

Finance income

(1,183,358

)

(83,001

)

3,818,034

2,733,106

Increase in inventories

(70,899

)

(74,241

)

Decrease/(increase) in trade and other debtors

520,366

(582,203

)

(Decrease)/increase in trade and other creditors

(3,326,891

)

1,564,642

Cash generated from operations

940,610

3,641,304

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

2,203,352

3,444,371

Year ended 31 December 2023

31/12/23

1/1/23

as restated

£

£

Cash and cash equivalents

3,444,371

4,662,142

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank

3,444,371

(1,241,019

)

2,203,352

3,444,371

(1,241,019

)

2,203,352

Debt

Debts falling due within 1 year

(412,500

)

-

(412,500

)

Debts falling due after 1 year

(3,540,625

)

412,500

(3,128,125

)

(3,953,125

)

412,500

(3,540,625

)

Total

(508,754

)

(828,519

)

(1,337,273

)

1.	STATUTORY INFORMATION

Longacres Garden Centre Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

These financial statements have been prepared in accordance with applicable United Kingdom accounting

standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the

United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial

statements have been prepared on the historical cost basis.

The financial statements are presented in Sterling (£).

Going concern

After reviewing the company's cash position, forecasts and projections for a period of 12 months from the accounts signing date, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty

Critical accounting estimates and areas of judgement

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

In preparing these financial statements the directors have made the following judgements:

Determination as to whether the company's tangible and intangible assets indicate impairment. Decisions are made based on considering factors such as the economic viability and expected future financial performance of the asset.

Determination as to whether the company's stocks indicate impairment. Decisions are made based on considering the age and state of the stock held.

Other key sources of estimations are:

Goodwill is amortised over its useful life. The actual life and residual value is assessed annually and may vary having consideration of the same factors as considered for impairment.

Property, plant and equipment are depreciated over their useful lives. The actual lives are assessed annually and may vary having consideration of factors such as technological innovation, product life cycles and maintenance programmes.

Turnover

The company operates a number of stores for the sale of a range of products. Sales of goods are recognised on sale to the customer, which is considered the point of delivery. Store sales are usually paid by cash, credit or payment card.

Sales are made to store customers with a right to return within 28 days, subject to certain conditions regarding the usage. Accumulated experience is used to estimate and provide for such returns at the time of sale.

Concession and rental income are accrued on a time basis and are recognised within 'other operating income'.

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the statement of income and retained earnings over its useful economic life.

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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:

Goodwill - 5 - 20 years

Goodwill, being the amount paid in connection with the acquisition of businesses in 2011, 2016 and 2019.

If there is an indication that there has been a significant change in amortisation rate or residual value of an asset, the amortisation of that asset is revised prospectively to reflect the new expectations.

Goodwill is assessed at each reporting date to determine whether there is any indication of impairment.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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 following rates.

Depreciation is provided on the following basis:

Freehold property - straight line over 20 years

Freehold land - no depreciation

Plant and machinery - 20% on cost

Motor vehicles - 20% on cost

Fixtures and fittings - 10% on cost

Computer equipment - 33% on cost

Improvements to property - straight line over 20 years

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.

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

Investments in subsidiaries

Investments in subsidiaries are accounted for at cost less impairment. Any impairment losses are recognised in the profit and loss account.

Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is calculated using the cost of purchase based on the latest seasonal supplier purchase price.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.