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Registration number: 04183496

Highfield Garden Centres Limited
Annual Report and Financial Statements
for the Year Ended 30 June 2025

Highfield Garden Centres Limited

Contents

Company Information | 1
Strategic Report | 2 to 3
Directors' Report | 4
Statement of Directors' Responsibilities | 5
Independent Auditor's Report | 6 to 8
Profit and Loss Account | 9
Balance Sheet | 10
Statement of Changes in Equity | 11
Notes to the Financial Statements | 12 to 20

Highfield Garden Centres Limited

Company Information

Directors | T R Greenway J E Greenway J D Mason T J Armstrong

Company secretary | T R Greenway

Registered office | Windsor House Bayshill Road Cheltenham GL50 3AT

Auditors | Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

Highfield Garden Centres Limited

Strategic Report for the Year Ended 30 June 2025

The directors present their strategic report for the year ended 30 June 2025.

Principal activity

The principal activity of the company is the operation of a garden centre, trading as Highfield Garden World. There has been no significant change in this activity during the year.
Our core focus is gardening, offering a large range of shrubs, plants, trees and garden requisites. Typically for British Garden Centres, we also stock non-gardening ranges, including home and garden furniture, books, foods, giftware, toys, bird food and cookware as well as a pet and aquatic department and seasonal offerings, such as Christmas decorations, trees and lighting. We also have an onsite restaurant, open all day for drinks, snacks and full meals, several concessions offering clothing and arrange coach trips throughout the year.

Fair review of the business

This year, our garden centre continued to face significant challenges due to adverse weather conditions, however, we were able to benefit from the planteria and we realised a small increase in revenue from garden-related sales. Whilst our restaurant continued to maintain consistent income levels compared to the previous year. This stability highlights the strength of our diversified business model and the loyalty of our customers. Moving forward, we aim to implement more strategies to mitigate weather-related risks and further enhance our customer experience across all areas of the business. Our commitment to quality and service remains unwavering and we continue to invest in our staff and the fabric of our buildings.

Principal risks and uncertainties

Key risks identified by management are categorised as:
Weather
The company relies heavily on sales of plant and garden related products, which makes the business weather dependent especially in the spring months. This has always been the greatest risk and threat to the company. The company has mitigated against this risk to some degree through diversification in non-gardening products sold and expansion of the restaurant.
Competition
These markets continue to be subject to rigorous competition from other operators based within the locality therefore the company's aim is to compete in its chosen markets through the provision of quality goods and services to its customers.
Economic uncertainty
The continued uncertainties surrounding the current political and economic environment, particularly with regards to the impact of the Coronavirus pandemic and Brexit, provide potential for reduced consumer confidence, supply issues and cost increases. With so many unknowns it is difficult to plan for, however the company continues to monitor closely the financial impact of these risks and react as necessary.

Financial instruments

The company has minimal exposure to risk arising from its financial instruments. The principal financial instruments comprise bank balances, bank loans, trade creditors, trade debtors and directors' loans and group company loans. The main purpose of these is to finance the company's operations.
Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of excess funds on deposit and funding through the use of bank loans and overdrafts at floating rates of interest.
There is no interest levied on the directors' loans nor group company loans. Trade debtors are not material and therefore the credit risk is considered insignificant. Trade creditors liquidity risk is managed by ensuring sufficient funds are available for meeting amounts due.

Highfield Garden Centres Limited

Strategic Report for the Year Ended 30 June 2025

Environment and employees

The directors recognise that there are some serious environmental challenges that come with running a business responsibly. Highfield is currently a long way from being a totally sustainable business but is taking many steps to get there. Practices such as recycling waste materials and controlling energy usage are now well established. The company continues to investigate and invest in new energy saving technologies such as solar panels which have been installed since the year end. Water conservation remains of paramount importance and during the year we have improved the use of rainwater harvesting to benefit the irrigation of retail areas.
The company also aims to promote employee wellbeing and continues to improve its responsibilities towards Health & Safety and working conditions.

Approved by the Board on 5 November 2025 and signed on its behalf by:

T R Greenway
Company secretary and director

Highfield Garden Centres Limited

Directors' Report for the Year Ended 30 June 2025

The directors present their report and the financial statements for the year ended 30 June 2025.

Directors of the company

The directors who held office during the year were as follows:

T R Greenway - Company secretary and director

J E Greenway

J D Mason

T J Armstrong

Dividends
The total distribution of dividends for the year ended 30 June 2025 was £Nil (2024 - £932,000). Post year end, a dividend has been proposed of £Nil (2024 - £Nil).

Going concern

In accordance with the Financial Reporting Council's 'Going Concern and Liquidity Risk: Guidance for the Directors of UK Companies 2009' the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.
The company continues to trade viably, and forecasts prepared by the directors for the next 12 months indicate that the company has sufficient financial resources available to continue in business should there be further national and / or regional restrictions on operations. The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 5 November 2025 and signed on its behalf by:

T R Greenway
Company secretary and director

Highfield Garden Centres Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

• | make judgements and accounting estimates that are reasonable and prudent;

• | state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• | 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.

Highfield Garden Centres Limited

Independent Auditor's Report to the Members of Highfield Garden Centres Limited

Opinion

We have audited the financial statements of Highfield Garden Centres Limited (the 'company') for the year ended 30 June 2025, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and 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 30 June 2025 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Highfield Garden Centres Limited

Independent Auditor's Report to the Members of Highfield Garden Centres Limited

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 5, 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.

Extent to which the audit was 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, 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:
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those 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.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:

• | reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

Highfield Garden Centres Limited

Independent Auditor's Report to the Members of Highfield Garden Centres Limited

• | enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

• | reading minutes of meetings of those charged with governance.

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 error, as fraud may involve deliberate concealment by, for 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 are to become aware of it.

A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of this 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 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.

Scott Lawrence (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor
Staverton Court
Staverton
Cheltenham
GL51 0UX

5 November 2025

Highfield Garden Centres Limited

Profit and Loss Account for the Year Ended 30 June 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 8,409,842 | 8,141,770
Cost of sales |  | (4,013,010) | (3,949,168)
Gross profit |  | 4,396,832 | 4,192,602
Administrative expenses |  | (4,376,883) | (3,303,190)
Other operating income | 4 | 361,607 | 357,617
Operating profit | 5 | 381,556 | 1,247,029
Other interest receivable and similar income |  | 77,583 | 62,755
Profit before tax |  | 459,139 | 1,309,784
Tax on profit | 9 | (193,869) | (239,736)
Profit for the financial year |  | 265,270 | 1,070,048

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Highfield Garden Centres Limited

(Registration number: 04183496)
Balance Sheet as at 30 June 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 10 | 5,975,367 | 5,599,425
Other financial assets | 11 | 1,000 | 1,000
|  | 5,976,367 | 5,600,425
Current assets |  |  |
Stocks | 12 | 612,635 | 537,494
Debtors | 13 | 286,341 | 352,622
Cash at bank and in hand |  | 5,433,335 | 4,901,350
|  | 6,332,311 | 5,791,466
Creditors: Amounts falling due within one year | 14 | (2,576,614) | (2,109,574)
Net current assets |  | 3,755,697 | 3,681,892
Total assets less current liabilities |  | 9,732,064 | 9,282,317
Provisions for liabilities | 9 | (233,760) | (49,283)
Net assets |  | 9,498,304 | 9,233,034
Capital and reserves |  |  |
Called up share capital | 16 | 135,746 | 135,746
Retained earnings |  | 9,362,558 | 9,097,288
Shareholders' funds |  | 9,498,304 | 9,233,034

Approved and authorised by the Board on 5 November 2025 and signed on its behalf by:

T R Greenway
Company secretary and director

Highfield Garden Centres Limited

Statement of Changes in Equity for the Year Ended 30 June 2025

| Share capital £ | Retained earnings £ | Total £
At 1 July 2023 | 135,746 | 8,959,240 | 9,094,986
Prior period adjustment | - | (432,000) | (432,000)
At 1 July 2023 (As restated) | 135,746 | 8,527,240 | 8,662,986
Profit for the year | - | 512,926 | 512,926
Profit restatement | - | 557,122 | 557,122
Dividends | - | (500,000) | (500,000)
At 30 June 2024 | 135,746 | 9,097,288 | 9,233,034

| Share capital £ | Retained earnings £ | Total £
At 1 July 2024 | 135,746 | 9,097,288 | 9,233,034
Profit for the year | - | 265,270 | 265,270
At 30 June 2025 | 135,746 | 9,362,558 | 9,498,304

Highfield Garden Centres Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

| 1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

| 2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
The company is a member of a group where the parent, Western Forestry Company Limited, prepares consolidated financial statements. They have therefore taken advantage of the Statement of Cash Flows, financial instruments disclosure and Related Party disclosure exemptions as permitted by FRS102.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Name of parent of group

These financial statement are consolidated in the financial statements of Western Forestry Company Limited.
The financial statements of Western Forestry Company Limited may be obtained from the company's registered office.

Going concern

The company continues to trade viably and forecasts prepared by the directors for the next 12 months indicate that the company has sufficient financial resources available despite the challenging trading conditions.
After reviewing the company's forecasts and projections, 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.

Prior period errors

During the current financial year, errors were identified in the prior year’s financial statements relating to a material debtor and a material accrual as a result of not using information that was available at the time of drafting those financial statements. As at 30 June 2023 retained profit and other debtors were overstated by £432,000 and in the year ending 30 June 2024, profit for the year and creditors at the year end were overstated by £557,122. The net effect on balance sheet and net assets of the company at 30 June 2024 was an understatement of reserves of £125,122.

Highfield Garden Centres Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Freehold land and buildings | not provided
Plant and machinery | 20% on cost
Fixtures and fittings | 20% on cost
Motor vehicles | 25% on cost

No depreciation is provided on freehold land and buildings because, in the directors opinion, the real (inflation adjusted) estimated residual value is not less than the carrying value disclosed in the accounts.

Highfield Garden Centres Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Investments

Investment in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and net realisable value. Cost is determined using the first-in, first-out (FIFO) method. Net realisable value is based on management's estimate of selling price less costs of disposal.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Rentals payable or receivable under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Highfield Garden Centres Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Defined contribution and pension obligation and other post-retirement benefits

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
The group has an annual commitment to pay a pension to a former director for a defined period. The total commitment has been reflected as a liability within other creditors and the same value is also included as a deferred asset within other debtors. A transfer is made annually from the deferred asset account and the liability account as the payments are made.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Highfield Garden Centres Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

| 3 | Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Sale of goods | 8,409,842 | 8,141,770

All current and prior year turnover was derived wholly in the UK.

| 4 | Other operating income

The analysis of the company's other operating income for the year is as follows:

| 2025 £ | 2024 £
Other income | 5,178 | 1,617
Rent receivable | 356,429 | 356,000
| 361,607 | 357,617

| 5 | Operating profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 75,996 | 74,657
Operating lease expense - plant and machinery | 8,437 | 11,947
Operating lease expense - other | 34,290 | 31,104
Loss on disposal of property, plant and equipment | - | 1,022

| 6 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 3,283,284 | 2,323,698
Social security costs | 357,166 | 225,645
Pension costs | 50,281 | 52,781
| 3,690,731 | 2,602,124

The average number of persons employed by the company (including directors) during the year was as follows:

| 2025 No. | 2024 No.
Administration and support | 9 | 10
Sales, marketing and distribution | 100 | 94
| 109 | 104

Highfield Garden Centres Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

| 7 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 1,323,723 | 586,090
Contributions paid to money purchase schemes | 11,995 | 11,277
| 1,335,718 | 597,367

During the year the number of directors who were receiving benefits was as follows:

| 2025 No. | 2024 No.
Accruing benefits under money purchase pension scheme | 3 | 3

| 8 | Auditors' remuneration

| 2025 £ | 2024 £
Audit of the financial statements | 15,000 | 14,250

| 9 | Taxation

Tax charged/(credited) in the profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | 9,392 | 490,149
Deferred taxation |  |
Arising from origination and reversal of timing differences | 184,477 | (250,413)
Tax expense in the income statement | 193,869 | 239,736

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2024 - higher than the standard rate of corporation tax in the UK) of 25% (2024 - 25%).
The differences are reconciled below:

| 2025 £ | 2024 £
Profit before tax | 459,139 | 1,309,784
Corporation tax at standard rate | 114,785 | 327,446
Increase in UK and foreign current tax from adjustment for prior periods | 81,983 | 62,476
Tax (decrease)/increase from other short-term timing differences | (3,224) | 777
Effect of expense not deductible in determining taxable profit (tax loss) | 325 | 4,646
Deferred tax credit from unrecognised temporary difference from a prior period | - | (155,609)
Total tax charge | 193,869 | 239,736

Highfield Garden Centres Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

Deferred tax

Deferred tax assets and liabilities

2025 | Liability £
Fixed asset timing differences | 233,760
| 233,760

2024 | Liability £
Fixed asset timing differences | 49,283
| 49,283

| 10 | Tangible assets

| Freehold Land and buildings £ | Plant and machinery £ | Fixtures and fittings £ | Motor vehicles £ | Total £
Cost
At 1 July 2024 | 5,401,776 | 282,086 | 604,788 | 74,209 | 6,362,859
Additions | 378,530 | - | 73,408 | - | 451,938
Disposals | - | - | (9,974) | - | (9,974)
At 30 June 2025 | 5,780,306 | 282,086 | 668,222 | 74,209 | 6,804,823
Depreciation
At 1 July 2024 | - | 240,403 | 474,090 | 48,941 | 763,434
Charge for the year | - | 16,092 | 47,354 | 12,550 | 75,996
Eliminated on disposal | - | - | (9,974) | - | (9,974)
At 30 June 2025 | - | 256,495 | 511,470 | 61,491 | 829,456
Carrying amount
At 30 June 2025 | 5,780,306 | 25,591 | 156,752 | 12,718 | 5,975,367
At 30 June 2024 | 5,401,776 | 41,683 | 130,698 | 25,268 | 5,599,425

| 11 | Other financial assets

| Unlisted investments £
Cost and carrying amount
At 30 June 2025 | 1,000
At 30 June 2024 | 1,000

| 12 | Stocks

| 2025 £ | 2024 £
Goods for resale | 612,635 | 537,494

Highfield Garden Centres Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

| 13 | Debtors

| 2025 £ | 2024 £
Trade debtors | 112,655 | 27,169
Director's loan account | - | 185,113
Prepayments | 173,686 | 140,340
| 286,341 | 352,622

| 14 | Creditors

| 2025 £ | 2024 £
Due within one year |  |
Trade creditors | 744,240 | 683,619
Amounts due to related parties | 207,199 | 207,199
Social security and other taxes | 644,788 | 418,465
Accrued expenses and deferred income | 646,254 | 465,782
Corporation tax liability | 334,133 | 334,509
| 2,576,614 | 2,109,574

| 15 | Pension and other schemes

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £50,281 (2024 - £52,781).

| 16 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary shares of £1 each | 135,746 | 135,746 | 135,746 | 135,746

Highfield Garden Centres Limited

Notes to the Financial Statements for the Year Ended 30 June 2025

| 17 | Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 73,372 | 40,648
Later than one year and not later than five years | 169,702 | 28,096
Later than five years | - | 24,379
| 243,074 | 93,123

The amount of non-cancellable operating lease payments recognised as an expense during the year was £60,556 (2024 - £44,106).

Operating leases - lessor

The total of future minimum lease receipts is as follows:

| 2025 £ | 2024 £
Not later than one year | 264,375 | 268,894
Later than one year and not later than five years | 130,013 | 342,321
| 394,388 | 611,215

| 18 | Dividends

| 2025 £ | 2024 £
Dividends paid | - | 932,000

| 19 | Related party transactions

Summary of transactions with key management

Key management personnel are considered to be the directors of the company and key management personnel compensation is disclosed in note 7 to the financial statements.

Transactions with directors

At 30 June 2025 the directors owed the Company £nil (2024: £185,113). The loans were interest free and repayable upon demand.

| 20 | Parent and ultimate parent undertaking

The company is a wholly owed subsidiary of Western Forestry Company Limited, a company incorporated in England and Wales.
By virtue of their shareholdings in the holding company, Western Forestry Company Limited, Mr T.R.Greenway and Mrs J.E.Greenway are considered to be joint controlling parties of this company.