The Garden And Home Trading Company Limi - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 07992560 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR

THE GARDEN AND HOME TRADING COMPANY

LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

R C Sharp

REGISTERED OFFICE:

Unit 1 Millennium City Park

Millennium Road

Preston

Lancashire

PR2 5BL

REGISTERED NUMBER:

07992560 (England and Wales)

AUDITORS:

Wallwork Nelson & Johnson

Chartered Accountants & Statutory Auditors

Chandler House

7 Ferry Road Office Park

Riversway

Preston

Lancashire

PR2 2YH

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

104,087

176,080

104,087

176,080

CURRENT ASSETS

Stocks

6

1,619,066

848,515

Debtors

7

1,914,077

1,317,548

Cash at bank and in hand

1,646,201

1,733,722

5,179,344

3,899,785

CREDITORS

Amounts falling due within one year

8

2,353,345

2,179,261

NET CURRENT ASSETS

2,825,999

1,720,524

TOTAL ASSETS LESS CURRENT LIABILITIES

2,930,086

1,896,604

PROVISIONS FOR LIABILITIES

10

7,959

19,887

NET ASSETS

2,922,127

1,876,717

CAPITAL AND RESERVES

Called up share capital

11

100

100

Retained earnings

2,922,027

1,876,617

SHAREHOLDERS' FUNDS

2,922,127

1,876,717

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 director and authorised for issue on 30 November 2022 and were signed by:

R C Sharp - Director

1.	STATUTORY INFORMATION

The Garden And Home Trading 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 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.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents the invoiced value of goods sold, net of value added tax. Sales are recognised as turnover on dispatch to customers.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill

Purchased goodwill representing the excess of fair value of the consideration given and fair value of the separable net assets acquired, arising on the purchase of trade and assets, is capitalised. Positive goodwill is amortised to nil by equal instalments over its estimated useful life which is 20 years, due to the economic value of the brand names and/or customer relationships which have been acquired.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and any provision for impairment in value.

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

Plant and machinery

- 33.3% on cost

Fixtures and fittings

- 33.3% on cost

Improvements to property

- 33.3% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit and loss.

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Financial instruments

The company has elected to apply the provisions of FRS 102 Section 11 'Basic Financial Instruments' to all of its financial instruments.

A basic financial instrument is a contract that gives rise to a financial asset in one entity and a financial liability or equity instrument of another entity.

Basic financial assets, which include debtors 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 transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial assets classified as receivable within one year are not amortised. Trade and other debtors and amounts owed to group undertakings are measured at the undiscounted amount of cash or other consideration expected to be received.

Financial assets are assessed for indicators of impairment at each reporting end date with any impairment loss being recognised in profit and loss.

Basic financial liabilities, including creditors, bank loans and loans to group companies or connected parties are recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Bank and other loans and hire purchase contracts are initially measured at the present value of future payments, discounted at a market rate of interest, and subsequently at amortised cost using the effective interest method. Trade creditors are measured at the undiscounted amount of cash or other consideration expected to be paid.

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

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.

Going concern

The director believes that the company has sufficient trade and financial resources to continue in operational existence for the foreseeable future. Thus the going concern basis of accounting in preparing the annual financial statements has been adopted.

Employee benefits

The cost of short-term employee benefits are recognised as a liability and as an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 46 (2021 - 45 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2021

and 31 March 2022

450,008

AMORTISATION

At 1 April 2021

and 31 March 2022

450,008

NET BOOK VALUE

At 31 March 2022

-

At 31 March 2021

-

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

Totals

£

£

£

£

COST

At 1 April 2021

41,660

100,243

246,767

388,670

Additions

9,850

4,636

2,880

17,366

At 31 March 2022

51,510

104,879

249,647

406,036

DEPRECIATION

At 1 April 2021

9,394

68,470

134,726

212,590

Charge for year

14,310

14,331

60,718

89,359

At 31 March 2022

23,704

82,801

195,444

301,949

NET BOOK VALUE

At 31 March 2022

27,806

22,078

54,203

104,087

At 31 March 2021

32,266

31,773

112,041

176,080

6.

STOCKS

31/3/22

31/3/21

£

£

Stocks

1,619,066

848,515

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/22

31/3/21

£

£

Trade debtors

140,312

165,692

Amounts due from group

undertakings

1,469,510

881,802

Tax

21,148

39,760

VAT

142,379

99,259

Prepayments

140,728

131,035

1,914,077

1,317,548

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/3/22

31/3/21

£

£

Trade creditors

1,861,908

1,470,945

Tax

15,062

267,633

Social security and other taxes

24,221

36,696

Other creditors

4,454

4,817

Amounts due to group

undertakings

235,765

168,560

Directors' current accounts

17,941

30,000

Accrued expenses

193,994

200,610

2,353,345

2,179,261

9.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31/3/22

31/3/21

£

£

Within one year

75,336

85,687

Between one and five years

64,588

143,361

139,924

229,048

10.	PROVISIONS FOR LIABILITIES

31/3/22

31/3/21

£

£

Deferred tax

7,959

19,887

Deferred

tax

£

Balance at 1 April 2021

19,887

Credit to Income Statement during year

(11,928

)

Balance at 31 March 2022

7,959

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/3/22

31/3/21

value:

£

£

100

Ordinary

£1

100

100

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

I M Johnson (Senior Statutory Auditor)

for and on behalf of Wallwork Nelson & Johnson

13.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The amount owed to the Director at the year end is repayable on demand. No interest has been charged.

14.	RELATED PARTY DISCLOSURES

GHTC (Holdings) Limited, a company registered in England and Wales, is the ultimate controlling party of The Garden and Home Trading Company Limited.

During the year, interim dividends totalling £270,000 (2021: £270,000) were paid to GHTC (Holdings) Limited. In addition, various monies were loaned by and repaid to GHTC (Holdings) Limited. As at 31 March 2022 the company owed £185,021 (2021: £109,197) to GHTC (Holdings) Limited. This amount is repayable on demand and no interest has been charged.

Redworth Limited is a company under common control of GHTC (Holdings) Limited. During the year various monies were loaned between Redworth Limited and The Garden Home Trading Company Limited. Included in creditors as at 31 March 2022 is an amount of £50,745 (2021: £59,363) owed to Redworth Limited. This amount is repayable on demand and no interest has been charged.

GHTC Online Limited is a company under common control of GHTC (Holdings) Limited. During the year, monies were loaned to GHTC Online Limited. Included in debtors as at 31 March 2022 is an amount of £5,518. This amount is repayable on demand and no interest has been charged.

As at 31 March 2022, Invalesco Limited was also under the common control of GHTC (Holdings) Limited.

During the year, the company sold goods to Invalesco Limited, to the value of £11,234 (2021: £8,392) excluding VAT. No goods were purchased from Invalesco Limited during the year (2021: £7,586 excluding VAT). In addition various monies were loaned between the companies. On 31 March 2022 a Deed of Waiver was issued by the company to Invalesco Limited, to the value of £210,898, thereby reducing the indebtedness of Invalesco Limited to the company by this amount. Included in debtors as at 31 March 2022 is an amount of £1,463,992 (2021: £881,659) owed from Invalesco Limited. The amounts are repayable on demand and no interest has been charged.