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 2021

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

1,879,823

1,909,944

Investments

5

82,500

82,500

1,962,323

1,992,444

CURRENT ASSETS

Stocks

6

336,669

368,669

Debtors

7

299,738

370,777

Cash at bank and in hand

1,105,791

451,717

1,742,198

1,191,163

CREDITORS

Amounts falling due within one year

8

1,096,767

1,027,302

NET CURRENT ASSETS

645,431

163,861

TOTAL ASSETS LESS CURRENT LIABILITIES

2,607,754

2,156,305

CREDITORS

Amounts falling due after more than one year

9

(516,185

)

(328,514

)

PROVISIONS FOR LIABILITIES

12

(102,181

)

(93,895

)

NET ASSETS

1,989,388

1,733,896

CAPITAL AND RESERVES

Called up share capital

13

5,000

5,000

Revaluation reserve

14

84,555

84,555

Retained earnings

14

1,899,833

1,644,341

SHAREHOLDERS' FUNDS

1,989,388

1,733,896

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2021 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 6 August 2021 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 directors have 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.

At the date of approving the financial statements the Directors have 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 9 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 from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer, at the point of sale, and when the customer has signed for delivery of the goods.

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

-

2.5% of valuation

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

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.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is a reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions are recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised with deferred income.

Stocks

Stock is valued at the lower of cost and net realisable value, 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 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.

Group accounts

In preparing these financial statements,advantage has been taken of the exemptions conferred by section 399 of the Companies Act 2006 not to prepare consolidated group accounts, on the grounds that the group is entitled to the benefit of those exemptions as a small size group.These financial statements therefore present present information about the company as an individual undertaking and not about its group.

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 71 (2020 - 88 ) .

4.	TANGIBLE FIXED ASSETS

Freehold

Short

Plant and

property

leasehold

machinery

£

£

£

COST OR VALUATION

At 1 February 2020

1,269,004

488,305

293,559

Additions

-

-

-

At 31 January 2021

1,269,004

488,305

293,559

DEPRECIATION

At 1 February 2020

361,261

77,241

266,594

Charge for year

31,726

27,125

5,400

At 31 January 2021

392,987

104,366

271,994

NET BOOK VALUE

At 31 January 2021

876,017

383,939

21,565

At 31 January 2020

907,743

411,064

26,965

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 February 2020

987,688

61,004

116,927

3,216,487

Additions

82,074

10,417

30,158

122,649

At 31 January 2021

1,069,762

71,421

147,085

3,339,136

DEPRECIATION

At 1 February 2020

482,739

25,788

92,920

1,306,543

Charge for year

66,803

10,107

11,609

152,770

At 31 January 2021

549,542

35,895

104,529

1,459,313

NET BOOK VALUE

At 31 January 2021

520,220

35,526

42,556

1,879,823

At 31 January 2020

504,949

35,216

24,007

1,909,944

Cost or valuation at 31 January 2021 is represented by:

Freehold

Short

Plant and

property

leasehold

machinery

£

£

£

Valuation in 2011

84,555

-

-

Cost

1,184,449

488,305

293,559

1,269,004

488,305

293,559

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

Valuation in 2011

-

-

-

84,555

Cost

1,069,762

71,421

147,085

3,254,581

1,069,762

71,421

147,085

3,339,136

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

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 February 2020

36,899

54,204

-

91,103

Additions

-

-

18,020

18,020

At 31 January 2021

36,899

54,204

18,020

109,123

DEPRECIATION

At 1 February 2020

7,976

19,722

-

27,698

Charge for year

3,615

8,621

375

12,611

At 31 January 2021

11,591

28,343

375

40,309

NET BOOK VALUE

At 31 January 2021

25,308

25,861

17,645

68,814

At 31 January 2020

28,923

34,482

-

63,405

5.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 February 2020

and 31 January 2021

82,500

NET BOOK VALUE

At 31 January 2021

82,500

At 31 January 2020

82,500

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Styles Garden Centre Limited

Registered office: Port Road, Wenvoe, Cardiff, CF5 6AD

Nature of business: Garden Centre

%

Class of shares:

holding

Ordinary

75.00

2021

2020

£

£

Aggregate capital and reserves

312,297

124,404

Profit for the year

189,223

62,761

6.

STOCKS

2021

2020

£

£

Stock of goods for resale

336,669

368,669

Stocks are stated after a provision for impairment of NIL (2020 - NIL).

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2021

2020

£

£

Trade debtors

26,041

70,530

Owed from connected company

236,031

260,434

Prepayments and accrued income

37,666

39,813

299,738

370,777

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

2021

2020

£

£

Bank loans and overdrafts

87,632

50,132

Hire purchase contracts (see note 10)

23,435

18,029

Trade creditors

522,710

465,898

Tax

61,625

56,996

Social security and other taxes

108,830

167,727

Other creditors

10,000

10,000

Owed to connected company

28,572

-

Directors' current accounts

117,066

218,981

Accruals and deferred income

136,897

39,539

1,096,767

1,027,302

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2021

2020

£

£

Bank loans

475,151

285,856

Hire purchase contracts (see note 10)

41,034

42,658

516,185

328,514

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2021

2020

£

£

Net obligations repayable:

Within one year

23,435

18,029

Between one and five years

41,034

42,658

64,469

60,687

Non-cancellable

operating leases

2021

2020

£

£

Within one year

149,104

143,998

Between one and five years

596,146

575,992

745,250

719,990

11.	SECURED DEBTS

The following secured debts are included within creditors:

2021

2020

£

£

Bank loans

562,783

335,988

Hire purchase contracts

64,469

60,687

627,252

396,675

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 its subsidiary, Style Gardens Limited

Bank loans are secured by the Company's land and buildings which have a carrying value of £876,017 (2020 - £907,743). 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 2021.

12.	PROVISIONS FOR LIABILITIES

2021

2020

£

£

Deferred tax

102,181

93,895

Deferred

tax

£

Balance at 1 February 2020

93,895

Accelerated capital allowances

8,286

Balance at 31 January 2021

102,181

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

5,000

Ordinary

£1

5,000

5,000

14.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 February 2020

1,644,341

84,555

1,728,896

Profit for the year

255,492

255,492

At 31 January 2021

1,899,833

84,555

1,984,388

15.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

As at 31 January 2021 an amount of £117,066 (2020 - £218,981) was owed to the Directors. The amount was included with creditors falling due within one year and the balance is interest free and repayable on demand.

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

16.	RELATED PARTY DISCLOSURES

During the year the company made sales of £51,500 (2020 - £74,175) to Style Gardens Limited a subsidiary undertaking. All of these transactions were carried out on an arms length basis.

Included in debtors is £236,031 (2020 - £276,119) due from Style Gardens Limited and the company holds a guarantee in respect of the lease entered into by Style Gardens Limited.

S Pugh & Son (Garden Centre) Limited is the parent company of Style Gardens Limited, with directors in common.

During the year the company has paid rent of £81,000 (2020 - £81,000) to the pension fund, in which the directors hold a beneficial interest and £30,000 (2020 - £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 £97,472 (2020 - £35,136) by Pughs Construction Limited. Additional services of £32,605 were also acquired during the year. As at the 31 January 2021 an amount of £26,616 (2020 - £26,616) was owed to Pughs Construction Limited and was included with creditors falling due within one year.

Pughs Construction Limited is related by virtue of it being under common ownership.

17.	POST BALANCE SHEET EVENTS

Within note 2 the director has considered the impact of Covid-19 on the operations of the entity and the entities ability to continue as a going concern. The director is confident that the entity has adequate resources to continue in operational existence for the foreseeable future.

The director considers this a non-adjusting post balance sheet event

18.	ULTIMATE CONTROLLING PARTY