Tendercare Nurseries Limited - Filleted accounts

TENDERCARE NURSERIES LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 AUGUST 2020

Company Registration Number: 02325757

TENDERCARE NURSERIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
CONTENTS									PAGES
Company information									1
Balance sheet									2 to 3
Notes to the financial statements									4 to 13

TENDERCARE NURSERIES LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED 31 AUGUST 2020
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 2020
			Notes		2020				2019
					£				£
FIXED ASSETS
Intangible assets			5				5,815				4,330
Tangible assets			6				673,224				437,396
Investments			7				475,000				475,000
							1,154,039				916,726
CURRENT ASSETS
Stock					856,115				845,741
Debtors			8		341,157				165,104
Cash at bank and in hand					4,611				836
					1,201,883				1,011,681
CREDITORS: Amounts falling due within one year			9		1,755,838				1,207,739
NET CURRENT LIABILITIES							(553,955)				(196,058)
TOTAL ASSETS LESS CURRENT LIABILITIES							600,084				720,668
CREDITORS: Amounts falling due after more than one year			10				26,203				107,113
Provisions for liabilities and charges							94,579				96,884
NET ASSETS							479,302				516,671
CAPITAL AND RESERVES
Called up share capital							100				100
Distributable profit and loss account							292,782				330,151
Non distributable profit and loss account							186,420				186,420
SHAREHOLDERS' FUNDS							479,302				516,671

TENDERCARE NURSERIES LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2020
These accounts have been prepared and delivered 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 2020 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: 27 May 2021

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
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, £710,741 which could be required for repayment without notice. The company also has bank loans of £155,153 which are repayable in instalments over the term of the loans. The company is therefore dependent upon the continued support of the bank. The directors do not consider the support of the bank likely to be withdrawn.
	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. Therefore, the company are unable to reliably estimate the impact of the COVID-19 outbreak on its results for the financial year ending 31 August 2021. The directors have reviewed and continue to review the performance and forecast performance of the company to assess it's ability to continue as a going concern and have deemed the going concern basis to be appropriate.
	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.

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	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.

	Government grants
	Grants are accounted for under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in other operating income within the profit and loss account in the same period as the related expenditure.
	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 is 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.

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	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.

	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.

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	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.

	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.

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	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.
	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.

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	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

	The directors have made key assumptions in determination of the fair value of an investment property in respect of the state of the property market in the location where the property is situated and in respect of the range of reasonable fair value estimates of the asset.

4	EMPLOYEES
	The average number of persons employed by the company (including directors) during the year was:
									2020		2019
	Average number of employees								47		52

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
5	INTANGIBLE FIXED ASSETS
							Goodwill		Website		Total
							£		£		£
	Cost
	At 1 September 2019						90,000		6,495		96,495
	Additions						-		3,480		3,480
	At 31 August 2020						90,000		9,975		99,975
	Accumulated amounts written off
	At 1 September 2019						90,000		2,165		92,165
	Charge for year						-		1,995		1,995
	At 31 August 2020						90,000		4,160		94,160
	Net book value
	At 1 September 2019						-		4,330		4,330
	At 31 August 2020						-		5,815		5,815

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
6	TANGIBLE ASSETS
		Tenants improvements			Plant and machinery		Motor vehicles	Fixtures, fittings and equipment			Total
			£		£		£		£		£
	Cost
	At 1 September 2019		543,126		533,947		332,918		86,027		1,496,018
	Additions		314,744		1,434		-		-		316,178
	Disposals		-		-		(25,046)		-		(25,046)
	At 31 August 2020		857,870		535,381		307,872		86,027		1,787,150
	Accumulated depreciation and impairments
	At 1 September 2019		322,322		458,620		204,566		73,114		1,058,622
	Charge for year		21,765		20,144		23,123		2,582		67,614
	Disposals		-		-		(12,310)		-		(12,310)
	At 31 August 2020		344,087		478,764		215,379		75,696		1,113,926
	Net book value
	At 1 September 2019		220,804		75,327		128,352		12,913		437,396
	At 31 August 2020		513,783		56,617		92,493		10,331		673,224
7	FIXED ASSET INVESTMENTS
											Investment Property
											£
	Cost
	At 1 September 2019										475,000
	At 31 August 2020										475,000
	Net book value
	At 1 September 2019										475,000
	At 31 August 2020										475,000
	In the opinion of the directors, all investment property has been stated at fair value.

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
8	DEBTORS
									2020		2019
									£		£
	Trade debtors								116,553		99,974
	Prepayments and accrued income								211,138		53,158
	Other debtors								13,466		11,972
									341,157		165,104
9	CREDITORS: Amounts falling due within one year
									2020		2019
									£		£
	Bank loans and overdrafts								839,691		414,464
	Trade creditors								260,579		304,984
	Taxation and social security								259,239		71,418
	Hire purchase contracts and finance leases								2,702		24,345
	Accruals and deferred income								166,513		150,302
	Other creditors								227,114		242,226
									1,755,838		1,207,739
10	CREDITORS: Amounts falling due after more than one year
									2020		2019
									£		£
	Bank loans and overdrafts								26,203		105,429
	Hire purchase contracts and finance leases								-		1,684
									26,203		107,113
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.

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2020
12	CONTINGENCIES AND COMMITMENTS
	Other Commitments
	Amounts falling due under operating leases:								2020		2019
									£		£
	In less than one year								32,142		30,919
	In more than one but less than five years								25,977		32,455
									58,119		63,374