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 2022

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

2,333,528

1,879,823

Investments

5

-

82,500

2,333,528

1,962,323

CURRENT ASSETS

Stocks

6

444,052

336,669

Debtors

7

395,344

299,738

Cash at bank and in hand

993,990

1,105,791

1,833,386

1,742,198

CREDITORS

Amounts falling due within one year

8

1,162,817

1,096,767

NET CURRENT ASSETS

670,569

645,431

TOTAL ASSETS LESS CURRENT LIABILITIES

3,004,097

2,607,754

CREDITORS

Amounts falling due after more than one year

9

(481,060

)

(516,185

)

PROVISIONS FOR LIABILITIES

12

(155,866

)

(102,181

)

NET ASSETS

2,367,171

1,989,388

CAPITAL AND RESERVES

Called up share capital

13

6,000

5,000

Revaluation reserve

14

84,555

84,555

Retained earnings

14

2,276,616

1,899,833

SHAREHOLDERS' FUNDS

2,367,171

1,989,388

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2022 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 22 June 2022 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.

Going concern

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making his assessment, the director has reviewed the balance sheet, the likely future cashflows of the business and has considered the facilities that are available to the company along with his continued support.

The directors have considered the ongoing impact of Covid-19 on the operations of the entity and the entities ability to continue as a going concern. The directors have and continue to take a number of actions to financially safeguard the company and minimise the effects of the Covid 19.

At the date of approving the financial statements the Director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and that the going concern basis of accounting remains appropriate. The directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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.

Useful economic lives of tangible assets - The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect the current estimate based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See notes for the carrying amount of the tangible fixed assets and accounting policies in note 1 for the useful economic lives of each class of asset.

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 represents the value of goods sold excluding value added tax and is recognised in the financial statements when cash has been received or is receivable.

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company 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.

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

- The company has transferred the significant risks and rewards of owner to the buyer;

- The company 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 company 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.

Concession and Rental income

Turnover is recognised in the period which it relates over the term of the lease agreement. Income is recognised within other operating income.

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% on cost

Short leasehold

-

Over term of lease

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

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks

Stock is valued at the lower of estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. Cost price is calculated by reference to retail prices less known mark-ups.

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 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.

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.

Where there are a number of similar obligations, the likelihood that an outflow of economic benefits will be required in settlement is determined by considering the class of obligation as a whole. A provision is recognised even if the likelihood of an outflow with respect of any one item in the same class of obligations may be small.

Provisions are not made for future operating losses.

Provisions are measures at the present value of the cost expected to be required to settle the obligation using a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the obligation. The increase in the provision due to the passing of time is recognised as a cost in the income statement.

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 82 (2021 - 71 ) .

4.	TANGIBLE FIXED ASSETS

Freehold

Short

Plant and

property

leasehold

machinery

£

£

£

COST OR VALUATION

At 1 February 2021

1,269,004

488,305

293,559

Additions

-

255,205

183,688

At 31 January 2022

1,269,004

743,510

477,247

DEPRECIATION

At 1 February 2021

392,987

104,366

271,994

Charge for year

31,727

39,962

18,055

At 31 January 2022

424,714

144,328

290,049

NET BOOK VALUE

At 31 January 2022

844,290

599,182

187,198

At 31 January 2021

876,017

383,939

21,565

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 February 2021

1,069,762

71,421

147,085

3,339,136

Additions

147,896

-

68,397

655,186

At 31 January 2022

1,217,658

71,421

215,482

3,994,322

DEPRECIATION

At 1 February 2021

549,542

35,895

104,529

1,459,313

Charge for year

74,010

8,882

28,845

201,481

At 31 January 2022

623,552

44,777

133,374

1,660,794

NET BOOK VALUE

At 31 January 2022

594,106

26,644

82,108

2,333,528

At 31 January 2021

520,220

35,526

42,556

1,879,823

Cost or valuation at 31 January 2022 is represented by:

Freehold

Short

Plant and

property

leasehold

machinery

£

£

£

Valuation in 2011

84,555

-

-

Cost

1,184,449

743,510

477,247

1,269,004

743,510

477,247

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

Valuation in 2011

-

-

-

84,555

Cost

1,217,658

71,421

215,482

3,909,767

1,217,658

71,421

215,482

3,994,322

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

Motor

Computer

machinery

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST OR VALUATION

At 1 February 2021

-

36,899

54,204

18,020

109,123

Additions

136,032

-

-

33,151

169,183

At 31 January 2022

136,032

36,899

54,204

51,171

278,306

DEPRECIATION

At 1 February 2021

-

11,591

28,343

375

40,309

Charge for year

7,928

3,164

6,465

12,102

29,659

At 31 January 2022

7,928

14,755

34,808

12,477

69,968

NET BOOK VALUE

At 31 January 2022

128,104

22,144

19,396

38,694

208,338

At 31 January 2021

-

25,308

25,861

17,645

68,814

5.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 February 2021

82,500

Disposals

(82,500

)

At 31 January 2022

-

NET BOOK VALUE

At 31 January 2022

-

At 31 January 2021

82,500

6.

STOCKS

2022

2021

£

£

Stock of goods for resale

444,052

336,669

Stocks are stated after a provision for impairment of NIL (2021 - NIL).

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

152,451

26,041

Other debtors

1,000

-

Owed from connected company

218,958

236,031

Prepayments and accrued income

22,935

37,666

395,344

299,738

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

2022

2021

£

£

Bank loans and overdrafts

102,428

87,632

Hire purchase contracts (see note 10)

74,320

23,435

Trade creditors

559,538

522,710

Tax

91,292

61,625

Social security and other taxes

153,509

108,830

Other creditors

10,000

10,000

Owed to connected company

28,572

28,572

Directors' current accounts

91,580

117,066

Accruals and deferred income

51,578

136,897

1,162,817

1,096,767

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

380,720

475,151

Hire purchase contracts (see note 10)

100,340

41,034

481,060

516,185

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2022

2021

£

£

Net obligations repayable:

Within one year

74,320

23,435

Between one and five years

100,340

41,034

174,660

64,469

Non-cancellable

operating leases

2022

2021

£

£

Within one year

149,104

149,104

Between one and five years

596,146

596,146

745,250

745,250

11.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank loans

483,148

562,783

Hire purchase contracts

174,660

64,469

657,808

627,252

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 a company under common control, Style Gardens Limited

Bank loans are secured by the company's land and buildings which have a carrying value of £844,290 (2021 - £876,017). 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 2022 and as disclosed in note 7 of the financial statements.

12.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Deferred tax

155,866

102,181

Deferred

tax

£

Balance at 1 February 2021

102,181

Accelerated capital allowances

53,685

Balance at 31 January 2022

155,866

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

NIL

Ordinary

£1

-

5,000

(2021 - 5,000 )

2,400

Ordinary B

£1

2,400

-

300

Ordinary C

£1

300

-

300

Ordinary D

£1

300

-

2,400

Ordinary A

£1

2,400

-

200

Ordinary E

£1

200

-

200

Ordinary F

£1

200

-

200

Ordinary G

£1

200

-

6,000

5,000

The following shares were issued during the year for cash at par :

1,000 Ordinary shares of £1

14.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 February 2021

1,899,833

84,555

1,984,388

Profit for the year

529,558

529,558

Dividends

(152,775

)

(152,775

)

At 31 January 2022

2,276,616

84,555

2,361,171

15.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

As at 31 January 2022 an amount of £91,580 (2021 - £117,066) was owed to the Directors. The amount was included with creditors falling due within one year.

All amounts due to the Directors are interest free and considered repayable on demand.

16.	RELATED PARTY DISCLOSURES

In the year to 31 January 2022 the company disposed of 100% of its share holding in subsidiary company, Style Gardens Limited. S. Pugh & Son (Garden Centre) Limited's 75% investment in its subsidiary, Style Gardens Limited, was subject to a Statutory Direct demerger (after advanced clearance by HM Revenue & Customs).

The process involved:

- The transfer of the entire share capital held by S. Pugh & Son (Garden Centre) Limited in Style Gardens Limited to the existing shareholders of S. Pugh & Son (Garden Centre) Limited;

- The shares were distributed 'in-specie' to the existing shareholders of S. Pugh & Son (Garden Centre) Limited;

As a consequence of the distribution the effective control the existing shareholders of S. Pugh & Son (Garden Centre) Limited have over Style Gardens Limited has not changed and remains at 75% but is now direct rather than indirect control. Style Gardens Limited is no longer a group company of S. Pugh & Son (Garden Centre) Limited.

During the year the company made sales of £145,857 (2021 - £51,500) to Style Gardens Limited a company under common control. All of these transactions were completed on an arms length basis.

Included within debtors falling due within one year is £218,958 (2021 - £236,031) due from Style Gardens Limited. The company holds a guarantee in respect of the lease entered into by Style Gardens Limited.

During the year the company has paid rent of £81,000 (2021 - £81,000) to the pension fund, in which the directors hold a beneficial interest and £30,000 (2021 - £30,000) to G N Pugh and I M Pugh properties.

During the year the company was provided with construction services to the value of £261,159 (2021 - £130,077) by Pughs Construction Limited. As at the 31 January 2022 an amount of £26,616 (2021 - £26,616) was owed to Pughs Construction Limited and was included with creditors falling due within one year.

Pughs Construction Limited is a company under common control.

17.	ULTIMATE CONTROLLING PARTY