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

The principal activity of the group continues to be the retail sale of garden products to include a wide range of plants, shrubs, garden maintenance products, outdoor furniture, gifts and other products related to indoor/outdoor living.

The business continues to build on its excellent reputation for providing quality products at a competitive price, knowledgeable staff and excellent customer service. The numerous 5 star customer reviews received reflect the success of this approach and these are the principles upon which the business has been built and remain the key drivers going forward.

There were no significant operational changes in the group during 2024. The café has proved to be a very popular addition to the business, with sales substantially increased over 2024 and has helped to attract business from other local competitors.

The directors believe that the inflationary pressures currently being seen will continue for the foreseeable future and will potentially impact upon customer spend. Stock levels will continue to be managed and costs controlled to minimise the impact any reduced revenue may have on the business. Overall, the directors believe the company continues to be well managed and in a strong position to withstand any inflationary pressures which may result in further revenue reductions.

The directors consider the key performance indicators of the business to be revenue and gross profit margin. Overall revenue streams across the garden centre remained strong despite the continued impact of the “cost of living” issues. Gross margins have improved and costs have been controlled, the combination of which has enabled us to invest in areas of the business to continue improve our customer offering.

On behalf of the board

The directors of the group have elected not to include a copy of the profit and loss account within the financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £413,932 (2023 - £516,000 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Smiths Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 22 Wycombe End, Beaconsfield, Buckinghamshire, HP9 1NB.

The group consists of Smiths Holdings Limited and its subsidiary, Smiths Nurseries Limited.

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.

Under Section 19 of FRS 102, the group has applied merger accounting in preparing these consolidated financial statements.

The company acquired its interest in its wholly owned subsidiary, Smiths Nurseries Limited, by way of a business restructure whereby the ultimate shareholders did not change. Consequently, the cost of investment in Smiths Nurseries Limited has been eliminated upon consolidation against the merger reserve created by the business restructure.

The consolidated group financial statements consist of the financial statements of the parent company Smiths Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

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.

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.

Operating lease income from properties and concessions are recognised in the profit and loss on a straight-line basis over the lease term.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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:

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 recognised in the profit and loss account.

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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.

The company has elected to apply the provisions of Section 11 ”Basic financial Instruments” 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances are measured at transaction price less any provision for impairment. Loans receivable are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method, less any provision for impairment.

Basic financial liabilities

Short term creditors are measured at transaction price. Other financial liabilities, including bank loans and other loans, are measured initially at fair value, net of transaction costs and are subsequently carried at amortised costs using the effective interest method.

Equity instruments issued by the group 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 group.

The tax expense represents the sum of the tax currently payable and deferred 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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.

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.

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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

In the application of the group’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 following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock is valued at the lower of cost and net realisable value. Stock is valued from a 3rd party stock take of items held in the main storage locations, where margins are applied to the RRP to estimate the cost. The remaining stock is valued from an internal stock take where margins are applied to the RRP to estimate the cost. Net realisable value includes, where necessary, provisions for slow moving stock. Calculations of these provisions requires estimates to be made, which includes forecast consumer demand and economic environment.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Details of the company's subsidiaries at 31 December 2024 are as follows:

Stocks are stated after provision for impairment of £96,140 (2023 - £137,000)

The bank loan provided by NatWest is secured by way of legal mortgage charge over the property at Smiths Nurseries.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The ultimate controlling party is D L Smith and N A Smith.