Tendercare Nurseries Limited - Filleted accounts

TENDERCARE NURSERIES LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 AUGUST 2019

Company Registration Number: 02325757

TENDERCARE NURSERIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
CONTENTS									PAGES
Company information									1
Balance sheet									2 to 3
Notes to the financial statements									4 to 12

TENDERCARE NURSERIES LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED 31 AUGUST 2019
DIRECTORS
A Halksworth
A M Halksworth
SECRETARY
A M Halksworth
REGISTERED OFFICE
Southlands Road
Denham
Uxbridge
Middlesex
UB9 4HD
COMPANY REGISTRATION NUMBER
02325757 England and Wales

TENDERCARE NURSERIES LIMITED
BALANCE SHEET
AS AT 31 August 2019
			Notes		2019				2018
					£				£
FIXED ASSETS
Intangible assets			5				4,330				5,629
Tangible assets			6				437,396				411,280
Investments			7				475,000				475,000
							916,726				891,909
CURRENT ASSETS
Stock					845,741				960,474
Debtors			8		165,104				268,264
Cash at bank and in hand					836				964
					1,011,681				1,229,702
CREDITORS: Amounts falling due within one year			9		1,207,739				1,197,284
NET CURRENT (LIABILITIES) / ASSETS							(196,058)				32,418
TOTAL ASSETS LESS CURRENT LIABILITIES							720,668				924,327
CREDITORS: Amounts falling due after more than one year			10				107,113				323,230
Provisions for liabilities and charges							96,884				93,448
NET ASSETS							516,671				507,649
CAPITAL AND RESERVES
Called up share capital							100				100
Distributable profit and loss account							330,151				321,129
Non distributable profit and loss account							186,420				186,420
SHAREHOLDERS' FUNDS							516,671				507,649
These accounts have been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A - small entities.
For the financial year ended 31 August 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
Members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
As permitted by S444 (5A) of the Companies Act 2006 the directors have not delivered to the Registrar a copy of the company’s Profit and Loss Account or Directors Report.
Signed on behalf of the board of directors
A Halksworth
Director
Date approved by the board: 29 May 2020

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2019
1	GENERAL INFORMATION
	Tendercare Nurseries Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is:
	Southlands Road
	Denham
	Uxbridge
	Middlesex
	UB9 4HD
	The financial statements are presented in Sterling, which is the functional currency of the company.
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of preparation of financial statements
	These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 Section 1A smaller entities 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the Companies Act 2006.
	Going concern

	The accounts have been drawn up on the going concern basis. The company owes its bank by way of an overdraft, £340,932 and the directors £11,805, both of which could be required for repayment without notice. The company also has bank loans of £178,961 which are repayable in installments over the term of the loans. The company is therefore dependent upon the continued support of the bank and the directors. The directors do not consider their own support nor the support of the bank likely to be withdrawn.
	If the going concern basis was not appropriate, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for additional liabilities that might arise and to reclassify fixed assets as current assets.

	Revenue recognition

	Turnover is measured at the fair value of consideration received or receivable. It is recognised in respect of the supply of specimen plants and associated products, as well as services to the landscape industry and garden owners as soon as there is a right to consideration and is determined by reference to the value of the work performed. Turnover is stated net of trade discounts and value added tax.
	The company recognises revenue when the amount of revenue can be measured reliably and when it is probable that future economic benefits will flow to the entity.

2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Intangible fixed assets

	Intangible fixed assets, other than goodwill, are stated at cost less accumulated amortisation and any accumulated impairment losses. It is amortised on a straight-line basis over its useful economic life of 5 years.
	Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. At acquisition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses.

	Goodwill amortisation was charged on a straight line basis so as to write off the cost of the asset, less its residual value assumed to be zero, over its useful economic life, which was estimated to be 9 years. The asset has now been fully amortised.
	If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new expectations.

	Tangible fixed assets

	Fixed assets are carried at cost less accumulated depreciation and accumulated impairment losses.

	Depreciation has been provided at the following rate so as to write off the cost or valuation of assets less residual value of the assets over their estimated useful lives.
	Tenants improvements					Straight line basis at 5% per annum
	Plant and machinery					Reducing balance basis at 20% to 25% and straight line basis at 33% per annum
	Motor vehicles					Reducing balance basis at 20% per annum
	Fixtures, fittings and equipment					Reducing balance basis at 20% per annum
	On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in the profit and loss account, and included within administrative expenses.
	Investment properties

	Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are initially measured at cost, including transaction costs.
	Subsequently, investment properties are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in the profit and loss account in the period in which they arise.

2	STATEMENT OF ACCOUNTING POLICIES (continued…)
	Financial Instruments
	The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
	Financial assets are measured at cost and are assessed at the end of each reporting period for objective evidence of impairment. Where objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

The impairment loss for financial assets measured at cost is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

	Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amount and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
	Impairment of non-financial assets

	At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets (which is the higher of value in use and the fair value less cost to sell) is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the profit and loss account.
	Stocks are assessed for impairment at each reporting date. The carrying amount of each item of stock, or group of similar items, is compared with its selling price less cost to complete and sell. If an item of stock, or group of similar items, is impaired its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in the profit and loss account.
	If an impairment loss is subsequently reversed, the carrying amount of the asset, or group of related assets, is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset, or group of related assets, in prior periods. A reversal of an impairment loss is recognised immediately in the profit and loss account.

	Stock

	Stock has been valued at the lower of cost and estimated selling price less cost to complete and sell, after making due allowance for obsolete and slow-moving items. Cost comprises the cost of goods purchased valued on a first in first out basis.
	The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Debtors

	Short term debtors are measured at transaction price, less any impairment.

	Creditors
	Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and subsequently at amortised cost.
	Leases
	Leases are classified as finance leases when they transfer substantially all the risks and rewards of ownership of the leased assets to the company. Other leases that do not transfer substantially all the risks and rewards of ownership of the leased assets to the company are classified as operating leases.

	Assets held under finance leases are recognised in accordance with the company's policy for tangible fixed assets. The corresponding obligations to lessors under finance leases are treated in the balance sheet as a liability. The assets and liabilities under finance leases are recognised at amounts equal to the fair value of the assets, or if lower, the present value of minimum lease payments, determined at the inception of the lease.
	Minimum lease payments are apportioned between finance charges and the reduction in the outstanding liabilities using the effective interest method. The finance charge is allocated to each period during the lease so as to produce a constant rate of interest on the remaining balance of the liabilities. Finance charges are recognised in the profit and loss account.

	Payments applicable to operating leases are charged against profit on a straight line basis over the lease term.
	Payments received under operating leases are recognised as income over the lease term on a straight-line basis.
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Taxation
	Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period.
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods based on current tax rates and laws. 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 taxable profits.
	Deferred tax is measured using 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.
	Deferred tax relating to land and investment properties that is measured at fair value is measured using the tax rates and allowances that apply to the sale of the asset.

	Current and deferred tax assets and liabilities are not discounted.
	Foreign currencies

	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.
	Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rate of exchange prevailing at that date. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit or loss.

	Pensions
	The company operates a defined contribution pension scheme. The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the amount payable in the year. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments in the balance sheet.
3	CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

	No significant accounting estimates and judgements have had to be made by the directors in preparing these financial statements.

4	EMPLOYEES
	The average number of persons employed by the company (including directors) during the year was:
									2019		2018
	Average number of employees								52		50
5	INTANGIBLE FIXED ASSETS
							Goodwill		Website		Total
							£		£		£
	Cost
	At 1 September 2018						90,000		6,495		96,495
	At 31 August 2019						90,000		6,495		96,495
	Accumulated amounts written off
	At 1 September 2018						90,000		866		90,866
	Charge for year						-		1,299		1,299
	At 31 August 2019						90,000		2,165		92,165
	Net book value
	At 1 September 2018						-		5,629		5,629
	At 31 August 2019						-		4,330		4,330
6	TANGIBLE ASSETS
		Tenants improvements			Plant and machinery		Motor vehicles	Fixtures, fittings and equipment			Total
			£		£		£		£		£
	Cost
	At 1 September 2018		1,019,447		515,426		362,153		90,289		1,987,315
	Additions		19,765		48,511		42,495		3,420		114,191
	Disposals		(496,086)		(29,990)		(71,730)		(7,682)		(605,488)
	At 31 August 2019		543,126		533,947		332,918		86,027		1,496,018
	Accumulated depreciation and impairments
	At 1 September 2018		802,284		466,470		229,591		77,690		1,576,035
	Charge for year		16,124		16,375		27,930		2,800		63,229
	Disposals		(496,086)		(24,225)		(52,955)		(7,376)		(580,642)
	At 31 August 2019		322,322		458,620		204,566		73,114		1,058,622
	Net book value
	At 1 September 2018		217,163		48,956		132,562		12,599		411,280
	At 31 August 2019		220,804		75,327		128,352		12,913		437,396
7	FIXED ASSET INVESTMENTS
											Investment Property
											£
	Cost
	At 1 September 2018										475,000
	At 31 August 2019										475,000
	Net book value
	At 1 September 2018										475,000
	At 31 August 2019										475,000
	In the opinion of the director, all investment property has been stated at fair value.
	The investment property included in the above fixed asset investments have been revalued as follows:
											Investment Property
											£
	Original cost										250,397
	Revaluation in 2015										224,603
											475,000
8	DEBTORS
									2019		2018
									£		£
	Trade debtors								99,974		204,728
	Prepayments and accrued income								53,158		49,102
	Other debtors								11,972		14,434
									165,104		268,264
9	CREDITORS: Amounts falling due within one year
									2019		2018
									£		£
	Bank loans and overdrafts								414,464		516,055
	Trade creditors								304,984		309,854
	Taxation and social security								71,418		86,361
	Hire purchase contracts and finance leases								24,345		30,612
	Accruals and deferred income								150,302		133,934
	Other creditors								242,226		120,468
									1,207,739		1,197,284
10	CREDITORS: Amounts falling due after more than one year
									2019		2018
									£		£
	Bank loans and overdrafts								105,429		297,194
	Hire purchase contracts and finance leases								1,684		26,036
									107,113		323,230
11	SECURED DEBTS
	The company has a bank loan with HSBC which is repayable over 5 years, with interest being charged on this loan at 2.75% above the Bank of England base rate. This, and an overdraft with HSBC, is secured by way of personal guarantee, in the form of a first mortgage over a life policy of A Halksworth and a personal guarantee to secure all liabilities of the company limited to £185,000. Security is also given by way of the investment property held by the company. There is also a fixed and floating charge over all assets held by the company.
	The hire purchase contracts and finance leases are secured on the assets concerned.
12	CONTINGENCIES AND COMMITMENTS
	Other Commitments
	Amounts falling due under operating leases:								2019		2018
									£		£
	In less than one year								30,919		22,089
	In more than one but less than five years								32,455		22,896
									63,374		44,985
13	POST BALANCE SHEET EVENTS
	On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus (the “COVID-19 outbreak”) and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally. The full impact of the COVID-19 outbreak continues to evolve and as such, it is uncertain as to the full financial impact that the pandemic will have on the company. Management are actively monitoring the global situation and given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the company is unable to reliably estimate the impact of the COVID-19 outbreak on its results for the financial year ending 31 August 2020.