Style Gardens Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03876990 (England and Wales)

STYLE GARDENS LIMITED

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:

Port Road

Wenvoe

Cardiff

CF5 6AD

REGISTERED NUMBER:

03876990 (England and Wales)

FIXED ASSETS

Tangible assets

4

635,435

571,838

CURRENT ASSETS

Stocks

5

163,067

140,719

Debtors

6

31,236

17,914

Cash at bank and in hand

701,716

605,008

896,019

763,641

CREDITORS

Amounts falling due within one year

7

610,347

654,479

NET CURRENT ASSETS

285,672

109,162

TOTAL ASSETS LESS CURRENT LIABILITIES

921,107

681,000

CREDITORS

Amounts falling due after more than one year

8

(203,284

)

(245,252

)

PROVISIONS FOR LIABILITIES

11

(79,340

)

(60,009

)

ACCRUALS AND DEFERRED INCOME

(11,628

)

(13,626

)

NET ASSETS

626,855

362,113

CAPITAL AND RESERVES

Called up share capital

12

110,040

110,000

Revaluation reserve

13

131,278

127,006

Retained earnings

13

385,537

125,107

SHAREHOLDERS' FUNDS

626,855

362,113

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

Style Gardens 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 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

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.

Short leasehold

-

Over term of lease

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

20% on reducing balance

Computer equipment

-

25% on cost

Tangible fixed assets are held at cost or valuation.

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. 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.

Hire purchase and leasing commitments

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and interest is charged to the Profit and Loss Account on a straight line basis.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits 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.

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 42 (2021 - 36 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

£

£

£

COST OR VALUATION

At 1 February 2021

1,293,757

188,103

208,778

Additions

-

20,790

131,665

Disposals

-

-

-

At 31 January 2022

1,293,757

208,893

340,443

DEPRECIATION

At 1 February 2021

870,884

163,442

94,595

Charge for year

60,420

7,253

31,385

Eliminated on disposal

-

-

-

At 31 January 2022

931,304

170,695

125,980

NET BOOK VALUE

At 31 January 2022

362,453

38,198

214,463

At 31 January 2021

422,873

24,661

114,183

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST OR VALUATION

At 1 February 2021

1,000

25,501

1,717,139

Additions

-

15,657

168,112

Disposals

(1,000

)

-

(1,000

)

At 31 January 2022

-

41,158

1,884,251

DEPRECIATION

At 1 February 2021

986

15,394

1,145,301

Charge for year

-

5,443

104,501

Eliminated on disposal

(986

)

-

(986

)

At 31 January 2022

-

20,837

1,248,816

NET BOOK VALUE

At 31 January 2022

-

20,321

635,435

At 31 January 2021

14

10,107

571,838

Cost or valuation at 31 January 2022 is represented by:

Fixtures

Short

Plant and

and

Computer

leasehold

machinery

fittings

equipment

Totals

£

£

£

£

£

Valuation in 2003

562,120

-

-

-

562,120

Cost

731,637

208,893

340,443

41,158

1,322,131

1,293,757

208,893

340,443

41,158

1,884,251

If the short leasehold property had not been revalued it would have been included at the following historical cost:

2022

2021

£

£

Cost

731,637

731,637

Aggregate depreciation

494,831

455,352

Value of land in freehold land and buildings

297,386

297,386

The value of the properties have been included at its open market value.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Fixtures

Plant and

and

machinery

fittings

Totals

£

£

£

COST OR VALUATION

At 1 February 2021

-

60,426

60,426

Additions

15,500

-

15,500

At 31 January 2022

15,500

60,426

75,926

DEPRECIATION

At 1 February 2021

-

30,520

30,520

Charge for year

2,066

5,981

8,047

At 31 January 2022

2,066

36,501

38,567

NET BOOK VALUE

At 31 January 2022

13,434

23,925

37,359

At 31 January 2021

-

29,906

29,906

5.

STOCKS

2022

2021

£

£

Stock of goods for resale

163,067

140,719

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

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

21,135

2,844

Directors' current accounts

30

-

Prepayments and accrued income

10,071

15,070

31,236

17,914

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

55,798

55,796

Hire purchase contracts (see note 9)

14,053

13,144

Trade creditors

200,697

169,140

Tax

61,060

77,235

Social security and other taxes

49,938

42,969

Other creditors

4,736

567

Amounts owed to group undertakings

218,958

236,031

Accruals and deferred income

5,107

59,597

610,347

654,479

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans

192,950

234,298

Hire purchase contracts (see note 9)

10,334

10,954

203,284

245,252

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2022

2021

£

£

Net obligations repayable:

Within one year

14,053

13,144

Between one and five years

10,334

10,954

24,387

24,098

Non-cancellable

operating leases

2022

2021

£

£

Within one year

72,000

72,000

Between one and five years

216,000

216,000

288,000

288,000

10.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank loans

248,748

290,094

The Natwest bank holds a first legal charge over the leasehold premises at Port Road in Wenvoe, the main operating premises of the company. The bank also holds a fixed and floating charge over all of the assets of the company. The bank holds a personal guarantee of £50,000 each, from all of the Directors, charges on their life cover policies, and a collateral guarantee from S. Pugh & Son (Garden Centre) Limited and in addition to security on the assets of S Pugh & Son (Garden Centre) Limited.

Hire purchase liabilities are secured against the tangible fixed assets to which they relate.

11.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Deferred tax

79,340

60,009

Deferred

tax

£

Balance at 1 February 2021

60,009

Accelerated capital allowances

23,603

Charges on revaluation

(4,272

)

Balance at 31 January 2022

79,340

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

NIL

Ordinary Shares of

£1

-

110,000

302,610

Ordinary A

10p

30,261

-

302,610

Ordinary B

10p

30,261

-

275,100

Ordinary C

10p

27,510

-

55,020

Ordinary D

10p

5,502

-

55,020

Ordinary E

10p

5,502

-

36,680

Ordinary F

10p

3,668

-

36,680

Ordinary G

10p

3,668

-

36,680

Ordinary H

10p

3,668

-

110,040

110,000

Allotted and issued:

Number:

Class:

Nominal

2022

2021

value:

£

£

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

400 Ordinary shares of 10p

13.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 February 2021

125,107

127,006

252,113

Profit for the year

260,430

260,430

Deferred tax on revaluation

-

4,272

4,272

At 31 January 2022

385,537

131,278

516,815

14.	RELATED PARTY DISCLOSURES

During the year share capital of the company transferred from S. Pugh & Son (Garden Centre) Limited to the directors personally and their immediate family members. The transaction was facilitated by means of 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, Style Gardens Limited made purchases of £145,857 (2021 - £51,500) from S Pugh & Son (Garden Centre) Limited. All these transactions were carried out on an arms length basis.

Included in creditors falling due within one year is £218,958 (2021 - £236,031) due to S Pugh & Son (Garden Centre) Limited. In addition S. Pugh & Son (Garden Centre) Limited provides a guarantee in respect of the lease entered into by Style Gardens Limited.

All amounts due from the company are interest free and considered repayable on demand.

S Pugh & Son (Garden Centre) Limited is a company under common control and common Directors.

During the year the company was provided with construction services to the value of £59,609 (2021 - NIL) by Pughs Construction Limited.

Pughs Constructions Limited is a company under common control and common Directors.

15.	ULTIMATE PARENT COMPANY

There was no controlling party during the period under review.