Chessington Nurseries Holdings Company - Limited company accounts 20.1

REGISTERED NUMBER: 10701643 (England and Wales)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31 December 2019

for

Chessington Nurseries Holdings

Company Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Income Statement

6

Consolidated Other Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTORS:

S Fleming

J P Martin

A K Martin

REGISTERED OFFICE:

Leatherhead Road

Chessington

Surrey

KT9 2NG

REGISTERED NUMBER:

10701643 (England and Wales)

SENIOR STATUTORY AUDITOR:

Liam George Sillett

AUDITORS:

NSO Associates LLP

Statutory Auditors

75 Springfield Road

Chelmsford

Essex

CM2 6JB

The directors present their strategic report of the company and the group for the year ended 31 December 2019.

REVIEW OF BUSINESS

The principal activity of the company is retailing.

The company is performing in line with expectations and prior year, and achieved a growth in turnover of 5.3%

A new company wide IT system was commissioned and has been successfully implemented, enhancing MI and business controls.

In addition, the company invested in its retail space management and ranging, with early results being encouraging

The group ended the year with net assets of £5,989,750 ( 2018 - £6,286,693).

PRINCIPAL RISKS AND UNCERTAINTIES

In common with all retail businesses the company has a major risk due to COVID19. Since the year end the company was shut for seven weeks which clearly impacted on the sales in 2020.To mitigate the risk staff were furloughed and overall headcount reduced downwards.The Company took a CBILs loan to assist with liquidity, and the way stock is purchased has been reviewed to lessen upfront charges. The Directors are of the opinion that following these changes, the business could reasonably survive another outbreak of COVID19

KEY PERFORMANCE INDICATORS

The Directors and management use a variety of KPI's to monitor performance. The Company's main KPI's are as summarised as follows:

2019 2018

£ £

Turnover 10,244,729 9,727.053

Gross Profit Margin (%) 46.6 45

Gross Profit 4,592,384 4,,402,186

Net Profit before tax and dividends 72,159 11,220

Number of employees 189 183

GOING CONCERN

The groups activities, together with the factors likely to affect its future development, performance and profitability are set out in the Business Review above. The financial position of the group, its cash flows, liquidity position and borrowing facilities have all been assessed.

The group has considerable financial resources in place and continues to trade profitably, and the Directors believe that despite the uncertain economic outlook the group is well placed to manage its business risks.

As the Directors have a reasonable expectation that the group has sufficient resources to continue operational existence for the foreseeable future, the going concern basis of accounting has been adopted in preparing the annual financial statements

ON BEHALF OF THE BOARD:

S Fleming - Director

8 September 2020

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2019.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2019 will be £ 275,000 .

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2019 to the date of this report.

S Fleming

J P Martin

A K Martin

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

S Fleming - Director

8 September 2020

Opinion

We have audited the financial statements of Chessington Nurseries Holdings Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2019 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2019 and of the group's loss for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Liam George Sillett (Senior Statutory Auditor)

for and on behalf of NSO Associates LLP

Statutory Auditors

75 Springfield Road

Chelmsford

Essex

CM2 6JB

8 September 2020

9,727,053

TURNOVER

3

10,244,729

5,321,565

Cost of sales

5,652,345

4,405,488

GROSS PROFIT

4,592,384

4,491,599

Administrative expenses

4,607,398

(86,111

)

(15,014

)

71,467

Other operating income

58,861

(14,644

)

OPERATING PROFIT/(LOSS)

5

43,847

27,379

Interest payable and similar expenses

6

28,235

(42,023

)

PROFIT/(LOSS) BEFORE TAXATION

15,612

(15,172

)

Tax on profit/(loss)

7

37,557

(26,851

)

LOSS FOR THE FINANCIAL YEAR

(21,945

)

Loss attributable to:

(26,851

)

Owners of the parent

(21,945

)

(26,851

)

LOSS FOR THE YEAR

(21,945

)

-

OTHER COMPREHENSIVE INCOME

-

(26,851

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(21,945

)

Total comprehensive income attributable to:

(26,851

)

Owners of the parent

(21,945

)

FIXED ASSETS

452,359

Intangible assets

10

395,815

7,370,380

Tangible assets

11

7,178,780

-

Investments

12

-

7,822,739

7,574,595

CURRENT ASSETS

1,133,037

Stocks

13

1,288,514

264,484

Debtors

14

346,305

108,901

Cash at bank and in hand

272,141

1,506,422

1,906,960

CREDITORS

1,192,306

Amounts falling due within one year

15

1,828,197

314,116

NET CURRENT ASSETS

78,763

8,136,855

TOTAL ASSETS LESS CURRENT LIABILITIES

7,653,358

CREDITORS

(1,060,877

)

Amounts falling due after more than one year

16

(878,864

)

(789,284

)

PROVISIONS FOR LIABILITIES

19

(784,745

)

6,286,694

NET ASSETS

5,989,749

CAPITAL AND RESERVES

6,520,090

Called up share capital

20

6,520,090

(233,396

)

Retained earnings

21

(530,341

)

6,286,694

SHAREHOLDERS' FUNDS

5,989,749

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2020 and were signed on its behalf by:

S Fleming - Director

FIXED ASSETS

-

Intangible assets

10

-

-

Tangible assets

11

-

6,918,070

Investments

12

6,918,070

6,918,070

6,918,070

CREDITORS

126,826

Amounts falling due within one year

15

126,826

(126,826

)

NET CURRENT LIABILITIES

(126,826

)

6,791,244

TOTAL ASSETS LESS CURRENT LIABILITIES

6,791,244

CAPITAL AND RESERVES

6,520,090

Called up share capital

20

6,520,090

271,154

Retained earnings

271,154

6,791,244

SHAREHOLDERS' FUNDS

6,791,244

421,154

Company's profit for the financial year

275,000

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

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2020 and were signed on its behalf by:

S Fleming - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2018

6,520,090

(56,545

)

6,463,545

Changes in equity

Dividends

-

(150,000

)

(150,000

)

Total comprehensive income

-

(26,851

)

(26,851

)

Balance at 31 December 2018

6,520,090

(233,396

)

6,286,694

Changes in equity

Dividends

-

(275,000

)

(275,000

)

Total comprehensive income

-

(21,945

)

(21,945

)

Balance at 31 December 2019

6,520,090

(530,341

)

5,989,749

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2018

6,520,090

-

6,520,090

Changes in equity

Dividends

-

(150,000

)

(150,000

)

Total comprehensive income

-

421,154

421,154

Balance at 31 December 2018

6,520,090

271,154

6,791,244

Changes in equity

Dividends

-

(275,000

)

(275,000

)

Total comprehensive income

-

275,000

275,000

Balance at 31 December 2019

6,520,090

271,154

6,791,244

Cash flows from operating activities

272,242

Cash generated from operations

1

749,052

(27,082

)

Interest paid

(26,603

)

(297

)

Interest element of hire purchase payments paid

(1,632

)

(27,956

)

Tax paid

(13,239

)

216,907

Net cash from operating activities

707,578

Cash flows from investing activities

(429,964

)

Purchase of tangible fixed assets

(139,980

)

4,880

Sale of tangible fixed assets

-

(425,084

)

Net cash from investing activities

(139,980

)

Cash flows from financing activities

(161,940

)

Loan repayments in year

(164,290

)

85,661

Capital repayments in year

(16,246

)

(150,000

)

Equity dividends paid

(275,000

)

(226,279

)

Net cash from financing activities

(455,536

)

(434,456

)

Increase/(decrease) in cash and cash equivalents

112,062

543,357

Cash and cash equivalents at beginning of year

2

108,901

108,901

Cash and cash equivalents at end of year

2

220,963

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.19

31.12.18

£

£

Profit/(loss) before taxation

15,612

(42,023

)

Depreciation charges

386,019

410,849

Loss/(profit) on disposal of fixed assets

2,107

(814

)

Finance costs

28,235

27,379

431,973

395,391

(Increase)/decrease in stocks

(158,582

)

144,207

(Increase)/decrease in trade and other debtors

(81,821

)

33,103

Increase/(decrease) in trade and other creditors

557,482

(300,459

)

Cash generated from operations

749,052

272,242

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2019

31.12.19

1.1.19

£

£

Cash and cash equivalents

272,141

108,901

Bank overdrafts

(51,178

)

-

220,963

108,901

Year ended 31 December 2018

31.12.18

1.1.18

£

£

Cash and cash equivalents

108,901

543,357

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.19

Cash flow

At 31.12.19

£

£

£

Net cash

Cash at bank and in hand

108,901

163,240

272,141

Bank overdrafts

-

(51,178

)

(51,178

)

108,901

112,062

220,963

Debt

Finance leases

(85,661

)

16,246

(69,415

)

Debts falling due within 1 year

(188,160

)

-

(188,160

)

Debts falling due after 1 year

(992,939

)

164,290

(828,649

)

(1,266,760

)

180,536

(1,086,224

)

Total

(1,157,859

)

292,598

(865,261

)

1.	STATUTORY INFORMATION

Chessington Nurseries Holdings Company 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 General 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ('the Group') as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

Revenue

Revenue comprises the sale of goods, landscaping services and catering. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

-the group has transferred the significant risks and rewards of ownership to the buyer;

-the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

-the amount of revenue can be measured reliably;

-it is probable that the Group will receive the consideration due under the transaction; and

-the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

-the amount of revenue can be measured reliably;

-it is probable that the Group will receive the consideration due under the contract;

-the stage of completion of the contract at the end of the reporting period can be measured reliably; and

-the costs incurred and the costs to complete the contract can be measured reliably.

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the Group's share 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 to the Consolidated statement of comprehensive income over its useful economic life.

Amortisation is provided on the following bases:

Goodwill - 10% straight line

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

See Note Below

Plant and machinery

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighed average basis. Work in progress and finished goods included labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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

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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit (2018 - loss) before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

31.12.19

31.12.18

£

£

Sale of goods and services

8,733,744

8,238,460

Catering

1,510,985

1,488,593

10,244,729

9,727,053

4.	EMPLOYEES AND DIRECTORS

31.12.19

31.12.18

£

£

Wages and salaries

2,588,238

2,459,360

Social security costs

184,764

177,915

Other pension costs

92,116

87,419

2,865,118

2,724,694

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