Style Gardens Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03876990 (England and Wales)

STYLE GARDENS LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2019

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

G.N. Pugh

I.M. Pugh

REGISTERED OFFICE:

Port Road

Wenvoe

Cardiff

CF5 6AD

REGISTERED NUMBER:

03876990 (England and Wales)

FIXED ASSETS

Tangible assets

4

700,506

713,771

CURRENT ASSETS

Stocks

5

175,719

137,519

Debtors

6

23,305

37,236

Cash at bank and in hand

24,506

22,992

223,530

197,747

CREDITORS

Amounts falling due within one year

7

647,729

642,366

NET CURRENT LIABILITIES

(424,199

)

(444,619

)

TOTAL ASSETS LESS CURRENT LIABILITIES

276,307

269,152

CREDITORS

Amounts falling due after more than one year

8

(123,522

)

(145,127

)

PROVISIONS FOR LIABILITIES

11

(77,790

)

(76,854

)

ACCRUALS AND DEFERRED INCOME

(17,624

)

(19,622

)

NET ASSETS

57,371

27,549

CAPITAL AND RESERVES

Called up share capital

12

110,000

110,000

Revaluation reserve

13

161,888

179,876

Retained earnings

13

(214,517

)

(262,327

)

SHAREHOLDERS' FUNDS

57,371

27,549

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 21 August 2019 and were signed on its behalf by:

G.N. Pugh - Director

1.	STATUTORY INFORMATION

Style Gardens 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Going concern

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

At the Balance sheet date the Company had net current liabilities of £424,199. The Directors are

aware of the position and have taken steps with a view to securing the future of the Company.The

profits of the Company have been steadily increasing in the last two years. The Company can also rely

on the continued support of the Company's bankers and its Parent company.

The Directors have prepared forecasts for the next twelve months. They believe that these forecasts

are based on realistic income assumptions and are confident that the Company will continue to be able

to meet its debts as they fall due.

If the Company were unable to continue in operational existence for the foreseeable future,

adjustments would have to be made to reduce the Balance sheet values of assets to their recoverable

amounts and to provide for further liabilities that might arise, and to reclassify fixed assets and long

term liabilities as current assets and liabilities. The Directors believe that it is appropriate for the

financial statements to be prepared on a going concern basis.

Significant judgements and estimates

In the application of the company's accounting policies, which are described in note 1, management is

required to make judgements, estimates and assumptions about the carrying values of assets and

liabilities that are not readily apparent from other sources. The estimates and underlying 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.

Valuation of land and buildings

As described in note 7 to the financial statements, land and buildings are stated at fair value based on

the valuation performed by the Directors.

Turnover

Turnover is measured at fair value of the consideration received or receivable net of VAT and

discounts. The policies adopted for the recognition of turnover are as follows:

Rendering of Services:

Turnover relates to rental income is recognised by reference is usually billed monthly in for monthly

engagements.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

Over term of lease

Plant and machinery

-

20% on reducing balance

Motor vehicles

-

20% on reducing balance

Computer equipment

-

25% on cost

Investment property

Investment properties for which fair value can be measured reliably without undue cost or effort are

measured at fair value at each reporting date with changes in fair value measured through profit and

loss.

The methods and significant assumptions used to ascertain the fair value at the balance sheet date and

fair value movement in the profit for the year are as follows:

Properties are valued by the directors using a yield calculation to ascertain a fair value.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

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.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at

the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods

different from those in which they are recognised in financial statements. Deferred tax is measured

using tax rates and laws that have been enacted or substantively enacted by the year end and that are

expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets

at their fair value. The capital element of the future payments is treated as a liability and interest is

charged to the Profit and Loss Account on a straight line basis.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership

remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the

company's pension scheme are charged to profit or loss in the period to which they relate.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of

a past event, it is probable that an outflow of economic benefit will be required in settlement and the

amount can be reliable estimated.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are

recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss

account in other administration expenses.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at

each balance sheet date. If such indication exists, the recoverable amount of the asset, or the assets

cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount

exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is

carried at a revalued amount where the impairment loss is a revaluation decrease.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 34 (2018 - 33 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

£

£

£

COST OR VALUATION

At 1 February 2018

1,231,942

188,103

113,635

Additions

23,972

-

64,633

At 31 January 2019

1,255,914

188,103

178,268

DEPRECIATION

At 1 February 2018

679,728

139,945

4,304

Charge for year

64,012

9,624

31,848

At 31 January 2019

743,740

149,569

36,152

NET BOOK VALUE

At 31 January 2019

512,174

38,534

142,116

At 31 January 2018

552,214

48,158

109,331

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST OR VALUATION

At 1 February 2018

1,000

8,911

1,543,591

Additions

-

5,962

94,567

At 31 January 2019

1,000

14,873

1,638,158

DEPRECIATION

At 1 February 2018

972

4,871

829,820

Charge for year

6

2,342

107,832

At 31 January 2019

978

7,213

937,652

NET BOOK VALUE

At 31 January 2019

22

7,660

700,506

At 31 January 2018

28

4,040

713,771

Cost or valuation at 31 January 2019 is represented by:

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

£

£

£

Valuation in 2003

562,120

-

-

Cost

693,794

188,103

178,268

1,255,914

188,103

178,268

Motor

Computer

vehicles

equipment

Totals

£

£

£

Valuation in 2003

-

-

562,120

Cost

1,000

14,873

1,076,038

1,000

14,873

1,638,158

If the short leasehold property had not been revalued it would have been included at the following

historical cost:

2019

2018

£

£

Cost

538,688

538,688

Aggregate depreciation

241,302

241,302

Value of land in freehold land and buildings

297,386

297,386

The short leasehold property was valued on open market value basis on 29 October 2002 by Quinton Edwards, Chartered Surveyors

.

The value of the properties, which have been included at a fair value valuation and have been

considered by the Directors.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

COST OR VALUATION

At 1 February 2018

and 31 January 2019

11,878

60,426

72,304

DEPRECIATION

At 1 February 2018

5,796

2,015

7,811

Charge for year

1,216

11,682

12,898

At 31 January 2019

7,012

13,697

20,709

NET BOOK VALUE

At 31 January 2019

4,866

46,729

51,595

At 31 January 2018

6,082

58,411

64,493

5.

STOCKS

2019

2018

£

£

Stock of goods for resale

175,719

137,519

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

7,102

22,227

Prepayments and accrued income

16,203

15,009

23,305

37,236

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts

51,677

64,410

Hire purchase contracts (see note 9)

12,049

13,390

Trade creditors

181,148

147,810

Tax

15,859

-

Social security and other taxes

57,722

5,763

Other creditors

567

567

Amounts owed to group undertakings

323,089

366,764

Accruals

5,618

43,662

647,729

642,366

There is no formal agreement between the group undertaking balance and the Company for the group

undertakings to repay their loans in more than one year. All the loans are repayable by demand and

are shown at cost. The amounts shown in the accounts are at their carrying values.

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Bank loans

89,384

98,940

Hire purchase contracts (see note 9)

34,138

46,187

123,522

145,127

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2019

2018

£

£

Net obligations repayable:

Within one year

12,049

13,390

Between one and five years

34,138

46,187

46,187

59,577

Non-cancellable

operating leases

2019

2018

£

£

Within one year

81,009

83,250

Between one and five years

162,018

166,500

In more than five years

324,036

333,000

567,063

582,750

10.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Bank overdrafts

35,881

48,614

Bank loans

105,180

114,736

141,061

163,350

The Natwest bank holds a first legal charge over the leasehold premises Port Road, Wenvoe. The

bank also holds a fixed and floating charge over all of the assets of the company. The bank also holds

a personal guarantee of £50,000 each, from all of the Directors, charges on their life cover policies

and a collateral guarantee from S. Pugh & Son (Garden Centre) Limited and security on the assets of

S Pugh & Son (Garden Centre) Limited.

11.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

77,790

76,854

Deferred

tax

£

Balance at 1 February 2018

76,854

Accelerated capital allowances

5,433

Charges on revaluation

(4,497

)

Balance at 31 January 2019

77,790

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

110,000

Ordinary Shares of

£1

110,000

110,000

13.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 February 2018

(262,327

)

179,876

(82,451

)

Profit for the year

25,325

25,325

Deferred tax on revaluation

-

4,497

4,497

Depreciation on revalued

amount

22,485

(22,485

)

-

At 31 January 2019

(214,517

)

161,888

(52,629

)

14.	CONTINGENT LIABILITIES

The Company had no contingent liability as at the Balance sheet date.

15.	OTHER FINANCIAL COMMITMENTS

The company had no other financial commitments as at 31 January 2019.

16.	RELATED PARTY DISCLOSURES

S Pugh & Son (Garden Centre) Limited is the parent Company with directors in common.

During the year, Style Gardens Limited made purchases of £111,658 (2018 - £64,893) from S Pugh &

Son (Garden Centre) Limited. All these transactions were carried out on an arms length basis.

Included in creditors is £323,089 (2018 - £366,764) due to S Pugh & Son (Garden Centre) Limited

and the Company has a guarantee in respect of the lease entered into by Style Gardens Limited.

Included in fixed assets are additions totalling £39,859 (2018 - £175,577) for work completed on the

new coffee shop at Wenvoe, with the work being completed by Pughs Construction Limited, a

Company in which G.N. Pugh and I.M. Pugh are Directors.

17.	ULTIMATE PARENT COMPANY