S. Pugh & Son ( Garden Centre ) Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01872960 (England and Wales)

S. PUGH & SON ( GARDEN CENTRE ) LTD

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2020

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

G.N. Pugh

I.M. Pugh

REGISTERED OFFICE:

Tynant Nursery

Ty Nant Road

Morganstown

Cardiff

SOUTH GLAMORGAN

CF15 8LB

REGISTERED NUMBER:

01872960 (England and Wales)

FIXED ASSETS

Tangible assets

4

1,909,944

1,715,739

Investments

5

82,500

82,500

1,992,444

1,798,239

CURRENT ASSETS

Stocks

6

368,669

415,169

Debtors

7

370,777

428,893

Cash at bank and in hand

451,717

202,501

1,191,163

1,046,563

CREDITORS

Amounts falling due within one year

8

1,027,302

790,495

NET CURRENT ASSETS

163,861

256,068

TOTAL ASSETS LESS CURRENT LIABILITIES

2,156,305

2,054,307

CREDITORS

Amounts falling due after more than one year

9

(328,514

)

(391,475

)

PROVISIONS FOR LIABILITIES

12

(93,895

)

(104,743

)

NET ASSETS

1,733,896

1,558,089

CAPITAL AND RESERVES

Called up share capital

13

5,000

5,000

Revaluation reserve

14

84,555

84,555

Retained earnings

14

1,644,341

1,468,534

SHAREHOLDERS' FUNDS

1,733,896

1,558,089

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2020 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 applicable to companies subject to the small companies regime.

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 and authorised for issue on 11 December 2020 and were signed on its behalf by:

G.N. Pugh - Director

1.	STATUTORY INFORMATION

S. Pugh & Son ( Garden Centre ) Ltd 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

Basis of preparing the financial statements

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.

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 9 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:

Sale of goods:

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer, at the point of sale, and when the customer has signed for delivery of the goods.

Rendering of Services:

Turnover relating to rental income is recognised by reference, and is usually billed monthly or quarterly for ongoing 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.

Freehold property

-

2.5% of valuation

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

12.5% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost price is calculated by reference to retail prices less known mark-ups. Nursery stock is calculated by reference to the cost of equivalent stock items available from external suppliers.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss 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.

Group accounts

In preparing these financial statements,advantage has been taken of the exemptions conferred by section 399 of the Companies Act 2006 not to prepare consolidated group accounts, on the grounds that the group is entitled to the benefit of those exemptions as a small size group.These financial statements therefore present present information about the company as an individual undertaking and not about its group.

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.

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.

Cash and cash equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company has elected to apply the provisions of Section 11 "Basic Financial Instruments".

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument. Financial assets are liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, loans to related companies and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, loans to related companies and bank loans are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 88 (2019 - 89 ) .

4.	TANGIBLE FIXED ASSETS

Freehold

Short

Plant and

property

leasehold

machinery

£

£

£

COST OR VALUATION

At 1 February 2019

1,069,004

443,403

286,452

Additions

200,000

44,902

7,107

At 31 January 2020

1,269,004

488,305

293,559

DEPRECIATION

At 1 February 2019

334,535

53,556

259,858

Charge for year

26,726

23,685

6,736

At 31 January 2020

361,261

77,241

266,594

NET BOOK VALUE

At 31 January 2020

907,743

411,064

26,965

At 31 January 2019

734,469

389,847

26,594

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 February 2019

904,103

61,004

105,817

2,869,783

Additions

83,585

-

11,110

346,704

At 31 January 2020

987,688

61,004

116,927

3,216,487

DEPRECIATION

At 1 February 2019

416,617

14,049

75,429

1,154,044

Charge for year

66,122

11,739

17,491

152,499

At 31 January 2020

482,739

25,788

92,920

1,306,543

NET BOOK VALUE

At 31 January 2020

504,949

35,216

24,007

1,909,944

At 31 January 2019

487,486

46,955

30,388

1,715,739

Cost or valuation at 31 January 2020 is represented by:

Freehold

Short

Plant and

property

leasehold

machinery

£

£

£

Valuation in 2011

84,555

-

-

Cost

1,184,449

488,305

293,559

1,269,004

488,305

293,559

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

Valuation in 2011

-

-

-

84,555

Cost

987,688

61,004

116,927

3,131,932

987,688

61,004

116,927

3,216,487

Properties are held for investment purposes and as such they are not depreciated. Such properties are not held for consumption but for investment and the Directors consider that to depreciate them would not give a true and fair view.

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

and

Motor

fittings

vehicles

Totals

£

£

£

COST OR VALUATION

At 1 February 2019

and 31 January 2020

36,899

54,204

91,103

DEPRECIATION

At 1 February 2019

3,844

8,228

12,072

Charge for year

4,132

11,494

15,626

At 31 January 2020

7,976

19,722

27,698

NET BOOK VALUE

At 31 January 2020

28,923

34,482

63,405

At 31 January 2019

33,055

45,976

79,031

5.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 February 2019

and 31 January 2020

82,500

NET BOOK VALUE

At 31 January 2020

82,500

At 31 January 2019

82,500

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Styles Garden Centre Limited

Registered office: Port Road, Wenvoe, Cardiff, CF5 6AD

Nature of business: Garden Centre

%

Class of shares:

holding

Ordinary

75.00

2020

2019

£

£

Aggregate capital and reserves

124,404

57,371

Profit for the year

62,761

29,822

6.

STOCKS

2020

2019

£

£

Stock of goods for resale

368,669

415,169

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

70,530

43,699

Other debtors

260,434

310,883

Prepayments and accrued income

39,813

74,311

370,777

428,893

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 WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

50,132

50,132

Hire purchase contracts (see note 10)

18,029

18,029

Trade creditors

465,898

388,498

Tax

56,996

53,491

Social security and other taxes

167,727

150,587

Other creditors

10,000

10,000

Directors' current accounts

218,981

66,460

Accrued expenses

39,539

53,298

1,027,302

790,495

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans

285,856

330,788

Hire purchase contracts (see note 10)

42,658

60,687

328,514

391,475

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2020

2019

£

£

Net obligations repayable:

Within one year

18,029

18,029

Between one and five years

42,658

60,687

60,687

78,716

Non-cancellable

operating leases

2020

2019

£

£

Within one year

143,998

143,998

Between one and five years

575,992

287,996

In more than five years

-

575,992

719,990

1,007,986

11.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank loans

335,988

380,920

Hire purchase contracts

60,687

78,716

396,675

459,636

The Natwest bank holds a first charge over land at Pughs Garden Centre, at east side Ty Nant Road, Morganstown. The bank also holds a fixed and floating charge over all current and future assets of the company. The company has also provided an unlimited guarantee to a loan creditor of its subsidiary, Style Gardens Limited and cross guarantee in favour of S Pugh & Son (Garden Centre Cwmbran) Limited.

Bank loans are secured by the Company's land and buildings which have a carrying value of £707,743 (2019 - £734,469). The directors consider that the carrying amounts of the bank loans and overdraft approximate to their fair values.

Lloyds financing and Lombard hire purchase contracts are secured against the relevant tangible fixed assets to which they relate, held on the balance sheet at 31 January 2019.

12.	PROVISIONS FOR LIABILITIES

2020

2019

£

£

Deferred tax

93,895

104,743

Deferred

tax

£

Balance at 1 February 2019

104,743

Accelerated capital allowances

(10,848

)

Balance at 31 January 2020

93,895

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

5,000

Ordinary

£1

5,000

5,000

14.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 February 2019

1,468,534

84,555

1,553,089

Profit for the year

205,807

205,807

Dividends

(30,000

)

(30,000

)

At 31 January 2020

1,644,341

84,555

1,728,896

15.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

GN Pugh

31.01.20

31.01.19

Balance B.Fwd

31,262

163

Amounts withdrawn

(39,643

)

(33,787

)

Amounts introduced

115,000

64,886

Balance C.Fwd

106,619

31,262

Maximum amount owed to/from the company during the year

106,619

31,262

IM Pugh

31.01.20

31.01.19

Balance B.Fwd

35,197

12,560

Amounts withdrawn

(37,835

)

(42,249

)

Amounts introduced

115,000

64,886

Balance C.Fwd

112,362

35,197

Maximum amount owed to/from the company during the year

112,362

35,197

16.	RELATED PARTY DISCLOSURES

There was no controlling party during the period under review.

During the year the company made sales of £74,175 (2019 - £111,658) to Style Gardens Limited a subsidiary undertaking. All of these transactions were carried out on an arms length basis.

As at 31 January 2020 a balance of £276,119 (2019 - £323,089) was due from Style Gardens Limited.

The company has given a guarantee in respect of a lease agreement entered into by Style Gardens Limited.

During the year the company has paid rent of £81,000 (2019 - £79,750) to the pension fund, in which the directors hold a beneficial interest and £30,000 (2019 - £30,000) to G N Pugh and I M Pugh properties.

As at 31 January 2020 a balance of £13,729 (2019 - £10,249) was due to Pugh's Construction Limited. Also, included in fixed assets additions is £35,136 (2019 - £210,152) of construction invoices for work completed at the Company's main premises and new coffee shop and farm shop areas.

17.	NON-ADJUSTING POST BALANCE SHEET EVENTS

There have been no post balance sheet events after the year end, other than the COVID-19 pandemic which cannot be accurately predicted and it is not possible to assess all possible future implications for the company. The company has assessed the implications and has not found any significant changes to be reported as a post balance sheet event.

18.	ULTIMATE CONTROLLING PARTY