| North Harrow Nursery Limited |
| Notes to the Accounts |
| for the year ended 31 March 2025 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).
The accounts are presented in Sterling, which is the functional currency of the entity. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts. Turnover includes revenue earned in respect of nursery services. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. |
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Government grants |
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Grants are accounted under the accruals model as permitted by FRS 102. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure. |
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Intangible fixed assets |
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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 over its useful economic life. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Freehold buildings |
1% Straight line |
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Plant and machinery |
20% Reducing balance |
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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. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Cash and cash equivalents |
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Borrowing costs |
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All borrowing costs are recognised in profit or loss in the year in which they are incurred. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. |
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Financial instruments |
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The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties. |
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Dividends |
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Equity dividends are recognised when they become legally payable. |
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| 2 |
Employees |
2025 |
|
2024 |
| Number |
Number |
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Average number of persons employed by the company |
41 |
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44 |
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| 3 |
Intangible fixed assets |
£ |
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Goodwill: |
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Cost |
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At 1 April 2024 |
220,000 |
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Disposals |
(220,000) |
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At 31 March 2025 |
- |
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Amortisation |
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At 1 April 2024 |
220,000 |
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On disposals |
(220,000) |
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At 31 March 2025 |
- |
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Net book value |
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At 31 March 2025 |
- |
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| 4 |
Tangible fixed assets |
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Land and buildings |
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Plant and machinery etc |
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Total |
| £ |
£ |
£ |
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Cost |
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At 1 April 2024 |
2,100,950 |
|
167,203 |
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2,268,153 |
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Additions |
- |
|
4,178 |
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4,178 |
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At 31 March 2025 |
2,100,950 |
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171,381 |
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2,272,331 |
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Depreciation |
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At 1 April 2024 |
88,079 |
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151,548 |
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239,627 |
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Charge for the year |
11,010 |
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3,583 |
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14,593 |
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At 31 March 2025 |
99,089 |
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155,131 |
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254,220 |
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Net book value |
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At 31 March 2025 |
2,001,861 |
|
16,250 |
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2,018,111 |
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At 31 March 2024 |
2,012,871 |
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15,655 |
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2,028,526 |
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Freehold land and buildings: |
2025 |
|
2024 |
| £ |
£ |
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Historical cost |
2,100,950 |
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2,100,950 |
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Cumulative depreciation based on historical cost |
(99,089) |
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(88,079) |
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2,200,039 |
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2,189,029 |
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| 5 |
Debtors |
2025 |
|
2024 |
| £ |
£ |
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Other debtors |
100,000 |
|
800 |
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Prepayments and accrued income |
5,472 |
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12,838 |
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105,472 |
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13,638 |
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| 6 |
Creditors: amounts falling due within one year |
2025 |
|
2024 |
| £ |
£ |
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Bank loans and overdrafts |
86,580 |
|
81,478 |
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Trade creditors |
2,478 |
|
1,368 |
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Taxation and social security costs |
258,115 |
|
205,741 |
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Other creditors |
21,207 |
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20,505 |
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Accruals and deferred income |
94,756 |
|
80,599 |
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463,136 |
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389,691 |
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| 7 |
Creditors: amounts falling due after one year |
2025 |
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2024 |
| £ |
£ |
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Bank loans |
602,737 |
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694,418 |
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| 8 |
Loans |
2025 |
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2024 |
| £ |
£ |
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Creditors include: |
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Instalments falling due for payment after more than five years |
137,408 |
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368,506 |
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Secured bank loans |
689,317 |
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775,896 |
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The above represents a loan which are secured on the property of the company by a 1st charge over freehold premises at 42-44 Gloucester Road, North Harrow, Middlesex, HA1 4PW and a debenture from North Harrow Nursery Ltd. |
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| 9 |
Share capital |
Nominal |
|
2025 |
|
2025 |
|
2024 |
| value |
Number |
£ |
£ |
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| £1.00 each |
|
340 |
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340 |
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340 |
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| 10 |
Share premium |
2025 |
|
2024 |
| £ |
£ |
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At 1 April 2024 |
159,680 |
|
159,680 |
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At 31 March 2025 |
159,680 |
|
159,680 |
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| 11 |
Pension commitments |
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The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £15,266 (2024 - £16,560). Contributions totalling £6,924 (2024 - £4,226) were payable to the fund at the reporting date and are included in other creditors. |
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| 12 |
Controlling party |
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In the opinion of the directors, there is no one controlling party. |
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| 13 |
Other information |
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North Harrow Nursery Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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38 Station Road |
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North Harrow |
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Middlesex |
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HA2 7SE |
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The principal place of business is: |
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42-44 Gloucester Road |
|
North Harrow |
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Middlesex |
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HA1 4PW |