Chessington Nurseries Holdings Company - Limited company accounts 20.1
Chessington Nurseries Holdings Company - Limited company accounts 20.1
| REGISTERED NUMBER: 10701643 (England and Wales) |
| Group Strategic Report, Report of the Directors and |
| Consolidated Financial Statements for the Year Ended 31 December 2020 |
| for |
| Chessington Nurseries Holdings |
| Company Limited |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Contents of the Consolidated Financial Statements |
| for the Year Ended 31 December 2020 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 4 |
| Report of the Independent Auditors | 5 |
| Consolidated Income Statement | 7 |
| Consolidated Other Comprehensive Income | 8 |
| Consolidated Balance Sheet | 9 |
| Company Balance Sheet | 10 |
| Consolidated Statement of Changes in Equity | 11 |
| Company Statement of Changes in Equity | 12 |
| Consolidated Cash Flow Statement | 13 |
| Notes to the Consolidated Cash Flow Statement | 14 |
| Notes to the Consolidated Financial Statements | 16 |
| Chessington Nurseries Holdings |
| Company Limited |
| Company Information |
| for the Year Ended 31 December 2020 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| SENIOR STATUTORY AUDITOR: | Liam George Sillett |
| AUDITORS: |
| Statutory Auditors |
| 75 Springfield Road |
| Chelmsford |
| Essex |
| CM2 6JB |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Group Strategic Report |
| for the Year Ended 31 December 2020 |
| The directors present their strategic report of the company and the group for the year ended 31 December 2020. |
| REVIEW OF BUSINESS |
| The principal activity of the company is retailing. |
| The year 2020 was a very difficult year due to the disruptions caused by the COVID-19 pandemic. The garden centre was closed from late March to mid May due to government imposed restrictions. |
| During the lock down the majority of staff were furloughed. The directors took this opportunity to review staffing levels and the Company's base costs. As a result of this review, staffing levels and base costs were reduced. |
| In March 2020 the company launched its new website which enabled the company to continue trading during lock down. |
| The company opened a farm shop at the end of 2020 to enable it to diversify its trading activities further and to reduce the peaks and troughs of its other core activities. |
| The garden centre closed again for the last week of 2020 and the first two weeks of 2021. The overall performance has remained in line with the revised business plan. |
| The Company ended the year with net assets of £6,083,556 (2019 - £5,989,749). |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| In common with all retail businesses the company has a major risk due to COVID19. Since the year end the company was shut for seven weeks which clearly impacted on the sales in 2020.To mitigate the risk staff were furloughed and overall headcount reduced downwards.The Company took a CBILs loan to assist with liquidity, and the way stock is purchased has been reviewed to lessen upfront charges. The Directors are of the opinion that following these changes, the business could reasonably survive another outbreak of COVID19 |
| KEY PERFORMANCE INDICATORS |
| The Directors and management use a variety of KPI's to monitor performance. The Company's main KPI's are as summarised as follows: |
| 2020 2019 |
| £ £ |
| Turnover 9,345,821 10,244,729 |
| Gross Profit Margin (%) 44 46.6 |
| Gross Profit 4,115,831 4,592,384 |
| Net Profit before tax and dividends 224,681 72,159 |
| Number of employees 143 189 |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Group Strategic Report |
| for the Year Ended 31 December 2020 |
| GOING CONCERN |
| The groups activities, together with the factors likely to affect its future development, performance and profitability are set out in the Business Review above. The financial position of the group, its cash flows, liquidity position and borrowing facilities have all been assessed. |
| The group has considerable financial resources in place and continues to trade profitably, and the Directors believe that despite the uncertain economic outlook the group is well placed to manage its business risks. |
| As the Directors have a reasonable expectation that the group has sufficient resources to continue operational existence for the foreseeable future, the going concern basis of accounting has been adopted in preparing the annual financial statements |
| ON BEHALF OF THE BOARD: |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Report of the Directors |
| for the Year Ended 31 December 2020 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 December 2020. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 December 2020. |
| EVENTS SINCE THE END OF THE YEAR |
| Information relating to events since the end of the year is given in the notes to the financial statements. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report. |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Chessington Nurseries Holdings |
| Company Limited |
| Opinion |
| We have audited the financial statements of Chessington Nurseries Holdings Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
| In our opinion the financial statements: |
| - | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2020 and of the group's profit for the year then ended; |
| - | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
| - | have been prepared in accordance with the requirements of the Companies Act 2006. |
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
| In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Chessington Nurseries Holdings |
| Company Limited |
| Matters on which we are required to report by exception |
| In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
| In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
| Auditors' responsibilities for the audit of the financial statements |
| Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Any irregularities found during testing is discussed with the client. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Use of our report |
| This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Statutory Auditors |
| 75 Springfield Road |
| Chelmsford |
| Essex |
| CM2 6JB |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Consolidated |
| Income Statement |
| for the Year Ended 31 December 2020 |
| 31.12.19 | 31.12.20 |
| £ | Notes | £ |
| 10,244,729 | TURNOVER | 3 | 9,345,821 |
| 5,652,345 | Cost of sales | 5,229,990 |
| 4,592,384 | GROSS PROFIT | 4,115,831 |
| 4,607,398 | Administrative expenses | 4,280,486 |
| (15,014 | ) | (164,655 | ) |
| 58,861 | Other operating income | 370,269 |
| 43,847 | OPERATING PROFIT | 5 | 205,614 |
| 28,235 | Interest payable and similar expenses | 6 | 37,479 |
| 15,612 | PROFIT BEFORE TAXATION | 168,135 |
| 37,557 | Tax on profit | 7 | 69,664 |
| ( |
) | PROFIT/(LOSS) FOR THE FINANCIAL YEAR |
| Profit/(loss) attributable to: |
| (21,945 | ) | Owners of the parent | 98,471 |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Consolidated |
| Other Comprehensive Income |
| for the Year Ended 31 December 2020 |
| 31.12.19 | 31.12.20 |
| £ | Notes | £ |
| (21,945 | ) | PROFIT/(LOSS) FOR THE YEAR | 98,471 |
| - | OTHER COMPREHENSIVE INCOME | - |
| (21,945 | ) | TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
98,471 |
| Total comprehensive income attributable to: |
| (21,945 | ) | Owners of the parent | 98,471 |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Consolidated Balance Sheet |
| 31 December 2020 |
| 31.12.19 | 31.12.20 |
| £ | £ | Notes | £ | £ |
| FIXED ASSETS |
| 395,815 | Intangible assets | 10 | 339,270 |
| 7,178,780 | Tangible assets | 11 | 6,913,055 |
| - | Investments | 12 | - |
| 7,574,595 | 7,252,325 |
| CURRENT ASSETS |
| 1,288,514 | Stocks | 13 | 1,031,356 |
| 346,305 | Debtors | 14 | 60,391 |
| 272,141 | Cash at bank and in hand | 1,073,978 |
| 1,906,960 | 2,165,725 |
| CREDITORS |
| 1,828,197 | Amounts falling due within one year | 15 | 1,201,831 |
| 78,763 | NET CURRENT ASSETS | 963,894 |
| 7,653,358 | TOTAL ASSETS LESS CURRENT LIABILITIES |
8,216,219 |
| CREDITORS |
| (878,864 | ) | Amounts falling due after more than one year |
16 |
(1,357,091 |
) |
| (784,745 | ) | PROVISIONS FOR LIABILITIES | 19 | (770,907 | ) |
| 5,989,749 | NET ASSETS | 6,088,221 |
| CAPITAL AND RESERVES |
| 6,520,090 | Called up share capital | 20 | 6,520,091 |
| (530,341 | ) | Retained earnings | 21 | (431,870 | ) |
| 5,989,749 | SHAREHOLDERS' FUNDS | 6,088,221 |
| The financial statements were approved by the Board of Directors and authorised for issue on 22 September 2021 and were signed on its behalf by: |
| S Fleming - Director |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Company Balance Sheet |
| 31 December 2020 |
| 31.12.19 | 31.12.20 |
| £ | £ | Notes | £ | £ |
| FIXED ASSETS |
| Intangible assets | 10 |
| Tangible assets | 11 |
| Investments | 12 |
| CURRENT ASSETS |
| Cash at bank |
| CREDITORS |
| Amounts falling due within one year | 15 |
| ( |
) | NET CURRENT LIABILITIES | ( |
) |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CAPITAL AND RESERVES |
| Called up share capital | 20 |
| Retained earnings |
| SHAREHOLDERS' FUNDS |
| 275,000 | Company's profit for the financial year | - |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Consolidated Statement of Changes in Equity |
| for the Year Ended 31 December 2020 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2019 | 6,520,090 | (233,396 | ) | 6,286,694 |
| Changes in equity |
| Dividends | - | (275,000 | ) | (275,000 | ) |
| Total comprehensive income | - | (21,945 | ) | (21,945 | ) |
| Balance at 31 December 2019 | 6,520,090 | (530,341 | ) | 5,989,749 |
| Changes in equity |
| Issue of share capital | 1 | - | 1 |
| Total comprehensive income | - | 98,471 | 98,471 |
| Balance at 31 December 2020 | 6,520,091 | (431,870 | ) | 6,088,221 |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Company Statement of Changes in Equity |
| for the Year Ended 31 December 2020 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2019 |
| Changes in equity |
| Dividends | - | ( |
) | ( |
) |
| Total comprehensive income | - |
| Balance at 31 December 2019 |
| Changes in equity |
| Balance at 31 December 2020 |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Consolidated Cash Flow Statement |
| for the Year Ended 31 December 2020 |
| 31.12.19 | 31.12.20 |
| £ | Notes | £ |
| Cash flows from operating activities |
| 749,052 | Cash generated from operations | 1 | 571,545 |
| (26,603 | ) | Interest paid | (35,698 | ) |
| (1,632 | ) | Interest element of hire purchase payments paid |
(1,781 |
) |
| (13,239 | ) | Tax paid | (38,994 | ) |
| 707,578 | Net cash from operating activities | 495,072 |
| Cash flows from investing activities |
| (139,980 | ) | Purchase of tangible fixed assets | (229,786 | ) |
| (139,980 | ) | Net cash from investing activities | (229,786 | ) |
| Cash flows from financing activities |
| - | New loans in year | 700,000 |
| (164,290 | ) | Loan repayments in year | (94,554 | ) |
| (16,246 | ) | Capital repayments in year | (19,200 | ) |
| - | Share issue | 1 |
| (275,000 | ) | Equity dividends paid | - |
| (455,536 | ) | Net cash from financing activities | 586,247 |
| 112,062 | Increase in cash and cash equivalents | 851,533 |
| 108,901 | Cash and cash equivalents at beginning of year |
2 |
220,963 |
| 220,963 | Cash and cash equivalents at end of year | 2 | 1,072,496 |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Cash Flow Statement |
| for the Year Ended 31 December 2020 |
| 1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Profit before taxation | 168,135 | 15,612 |
| Depreciation charges | 552,055 | 386,019 |
| Loss on disposal of fixed assets | - | 2,107 |
| Finance costs | 37,479 | 28,235 |
| 757,669 | 431,973 |
| Decrease/(increase) in stocks | 257,158 | (158,582 | ) |
| Decrease/(increase) in trade and other debtors | 285,961 | (81,821 | ) |
| (Decrease)/increase in trade and other creditors | (729,243 | ) | 557,482 |
| Cash generated from operations | 571,545 | 749,052 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
| Year ended 31 December 2020 |
| 31.12.20 | 1.1.20 |
| £ | £ |
| Cash and cash equivalents | 1,073,978 | 272,141 |
| Bank overdrafts | (1,482 | ) | (51,178 | ) |
| 1,072,496 | 220,963 |
| Year ended 31 December 2019 |
| 31.12.19 | 1.1.19 |
| £ | £ |
| Cash and cash equivalents | 272,141 | 108,901 |
| Bank overdrafts | (51,178 | ) | - |
| 220,963 | 108,901 |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Cash Flow Statement |
| for the Year Ended 31 December 2020 |
| 3. | ANALYSIS OF CHANGES IN NET DEBT |
| At 1.1.20 | Cash flow | At 31.12.20 |
| £ | £ | £ |
| Net cash |
| Cash at bank and in hand | 272,141 | 801,837 | 1,073,978 |
| Bank overdrafts | (51,178 | ) | 49,696 | (1,482 | ) |
| 220,963 | 851,533 | 1,072,496 |
| Debt |
| Finance leases | (69,415 | ) | 19,200 | (50,215 | ) |
| Debts falling due within 1 year | (188,160 | ) | (109,495 | ) | (297,655 | ) |
| Debts falling due after 1 year | (828,649 | ) | (495,950 | ) | (1,324,599 | ) |
| (1,086,224 | ) | (586,245 | ) | (1,672,469 | ) |
| Total | (865,261 | ) | 265,288 | (599,973 | ) |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Financial Statements |
| for the Year Ended 31 December 2020 |
| 1. | STATUTORY INFORMATION |
| Chessington Nurseries Holdings Company Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| Basis of consolidation |
| The consolidated financial statements present the results of the Company and its own subsidiaries ('the Group') as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full. |
| The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. |
| Significant judgements and estimates |
| he preparation of the financial statements requires management to make judgements, estimates and assumptions that effect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenues and expenses during the year. However the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant impact on amounts recognised in the financial statements |
| Useful economic lives of tangible fixed assets |
| The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the asset. The useful economic lives and residual values are re-assessed annually and are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. |
| Changes in accounting policies |
| The company carried out a review of its depreciation policies, and decided that it was more appropriate to use a straight line depreciation policy rather than a reducing balance policy. If this change had not been made then the amount of depreciation charged in the year would have been £155,918 lower. |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Revenue |
| Revenue comprises the sale of goods, landscaping services and catering. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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. The following criteria must also be met before revenue is recognised: |
| Sale of goods |
| Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
| -the group has transferred the significant risks and rewards of ownership to the buyer; |
| -the Group 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 Group 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. |
| Rendering of services |
| Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
| -the amount of revenue can be measured reliably; |
| -it is probable that the Group will receive the consideration due under the contract; |
| -the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
| -the costs incurred and the costs to complete the contract can be measured reliably. |
| Goodwill |
| Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer's interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Consolidated statement of comprehensive income over its useful economic life. |
| Amortisation is provided on the following bases: |
| Goodwill - 10% straight line |
| Intangible assets |
| Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
| Tangible fixed assets |
| Freehold property | - |
| Plant and machinery | - |
| Motor vehicles | - |
| Government grants |
| Revenue grants are recognised on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 2. | ACCOUNTING POLICIES - continued |
| Stocks |
| Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighed average basis. Work in progress and finished goods included labour and attributable overheads. |
| At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
| Taxation |
| Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
| Foreign currencies |
| Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
| 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
| Financial instruments |
| Basic financial liabilities, including trade and other payables, bank loans, loans from fellow companies 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 receipt discounted at a market rate. |
| Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers, Accounts payable are classified as current liabilities if payment is due within one year or less. If not they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised costing using the effective interest method. |
| Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 3. | TURNOVER |
| The turnover and profit before taxation are attributable to the one principal activity of the group. |
| An analysis of turnover by class of business is given below: |
| 31.12.20 | 31.12.19 |
| £ | £ |
| An analysis of turnover by geographical market is given below: |
| 31.12.20 | 31.12.19 |
| £ | £ |
| United Kingdom |
| 4. | EMPLOYEES AND DIRECTORS |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was NIL (2019 - NIL). |
| The average number of employees by undertakings that were proportionately consolidated during the year was 143 (2019 - 189 ) . |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Directors' remuneration |
| Directors' pension contributions to money purchase schemes |
| Information regarding the highest paid director is as follows: |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Emoluments etc |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 5. | OPERATING PROFIT |
| The operating profit is stated after charging/(crediting): |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Hire of plant and machinery |
| Other operating leases |
| Depreciation - owned assets |
| Loss on disposal of fixed assets |
| Goodwill amortisation |
| Auditors' remuneration |
| Foreign exchange differences | ( |
) | ( |
) |
| 6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Bank interest |
| Bank loan interest |
| Hire purchase |
| 7. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Deferred tax | ( |
) | ( |
) |
| Tax on profit |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 7. | TAXATION - continued |
| Reconciliation of total tax charge included in profit and loss |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Profit before tax |
| Profit multiplied by the standard rate of corporation tax in the UK of (2019 - |
| Effects of: |
| Expenses not deductible for tax purposes |
| Depreciation in excess of capital allowances |
| Increase/decrease in property revaluation leading to an increase/decrease in tax | - |
(1,436 |
) |
| Other timing differences leading to an increase (decrease) in tax | (13,838 | ) | 2 |
| Goodwill | 10,743 | 10,743 |
| Expenses not deductible | 25 | - |
| Accrued pension | 2,386 | - |
| Total tax charge | 69,664 | 37,557 |
| 8. | INDIVIDUAL INCOME STATEMENT |
| As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
| 9. | DIVIDENDS |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Preference shares of £1 each |
| Interim |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 10. | INTANGIBLE FIXED ASSETS |
| Group |
| Goodwill |
| £ |
| COST |
| At 1 January 2020 |
| and 31 December 2020 |
| AMORTISATION |
| At 1 January 2020 |
| Amortisation for year |
| At 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| 11. | TANGIBLE FIXED ASSETS |
| Group |
| Freehold | Plant and | Motor |
| Totals | property | machinery | vehicles |
| £ | £ | £ | £ |
| COST |
| At 1 January 2020 | 11,021,378 | 7,394,807 | 3,398,828 | 227,743 |
| Additions | 229,786 | - | 229,786 | - |
| At 31 December 2020 | 11,251,164 | 7,394,807 | 3,628,614 | 227,743 |
| DEPRECIATION |
| At 1 January 2020 | 3,842,598 | 848,619 | 2,839,071 | 154,908 |
| Charge for year | 495,511 | 125,510 | 353,976 | 16,025 |
| At 31 December 2020 | 4,338,109 | 974,129 | 3,193,047 | 170,933 |
| NET BOOK VALUE |
| At 31 December 2020 | 6,913,055 | 6,420,678 | 435,567 | 56,810 |
| At 31 December 2019 | 7,178,780 | 6,546,188 | 559,757 | 72,835 |
| The freehold property was revalued on 25 May 2017 by Quniton Edwards, Chartered Surveyors, on an existing use open market basis. |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 12. | FIXED ASSET INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2020 |
| and 31 December 2020 |
| NET BOOK VALUE |
| At 31 December 2020 |
| At 31 December 2019 |
| Subsidiary undertakings |
| The following were subsidiary undertakings of the Company: |
Name |
Class of shares |
Holding |
Principal activity |
| Chessington Nurseries Ltd | Ordinary | 100% | Retailing |
| Chessington Aquatics Ltd | Ordinary | 100% | Retailing |
| Name | Registered office |
| Chessington Nurseries Ltd | Leatherhead Road, Chessington, Surrey, KT9 2NG |
| Chessington Aquatics Ltd | Leatherhead Road, Chessington, Surrey, KT9 2NG |
| 13. | STOCKS |
| Group |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Stocks | 1,031,356 | 1,288,514 |
| 14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Trade debtors | 11,914 | 174,220 |
| Other debtors | 5,986 | 12,143 |
| Prepayments and accrued income | 42,491 | 159,942 |
| 60,391 | 346,305 |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| Group | Company |
| 31.12.20 | 31.12.19 | 31.12.20 | 31.12.19 |
| £ | £ | £ | £ |
| Bank loans and overdrafts (see note 17) | 299,137 | 239,338 |
| Hire purchase contracts (see note 18) | 17,723 | 19,200 |
| Trade creditors | 281,495 | 704,254 |
| Amounts owed to group undertakings | - | - |
| Tax | 83,501 | 38,993 |
| Social security and other taxes | 72,197 | 77,220 |
| VAT | 200,792 | 270,017 | - | - |
| Other creditors | 93,725 | 386,156 |
| Accruals and deferred income | 153,261 | 93,019 |
| 1,201,831 | 1,828,197 |
| 16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| Group |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Bank loans (see note 17) | 1,324,599 | 828,649 |
| Hire purchase contracts (see note 18) | 32,492 | 50,215 |
| 1,357,091 | 878,864 |
| 17. | LOANS |
| An analysis of the maturity of loans is given below: |
| Group |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Amounts falling due within one year or on | demand: |
| Bank overdrafts | 1,482 | 51,178 |
| Bank loans | 297,655 | 188,160 |
| 299,137 | 239,338 |
| Amounts falling due between two and five | years: |
| Bank loans - 2-5 years | 1,292,781 | 828,649 |
| Amounts falling due in more than five years: |
| Repayable by instalments |
| Bank loans more 5 yr by instal | 31,818 | - |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 18. | LEASING AGREEMENTS |
| Minimum lease payments fall due as follows: |
| Group |
| Hire purchase contracts |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Net obligations repayable: |
| Within one year | 17,723 | 19,200 |
| Between one and five years | 32,492 | 50,215 |
| 50,215 | 69,415 |
| 19. | PROVISIONS FOR LIABILITIES |
| Group |
| 31.12.20 | 31.12.19 |
| £ | £ |
| Deferred tax |
| Accelerated capital allowances | 770,907 | 784,745 |
| Group |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2020 | 784,745 |
| Credit to Income Statement during year | (13,838 | ) |
| Balance at 31 December 2020 | 770,907 |
| 20. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.12.20 | 31.12.19 |
| value: | £ | £ |
| Ordinary | £1 | 100 | 100 |
| Preference | £1 | 6,519,990 | 6,519,990 |
| 6,520,090 | 6,520,090 |
| The company holds £6,519,990 of preference shares (P1, P2 and P3). The shares have attached to them preferential dividend and capital distribution (including on a winding up) rights. The shares confer a right of redemption. The shares carry no voting rights save in connection with any resolution affecting solely the rights attaching to the preference shares. The nominal value of each share is £1 and consideration has been satisfied by way of share exchange of ordinary shares of £1 each in the capital of Chessington Nurseries Ltd. |
| The company holds £100 of ordinary share capital. The shares attached to them have full voting rights. The shares rank behind the P1, P2 and P3 preference classes of shares for dividends and capital distributions (including on winding up). They do not confer any rights of redemption. The nominal value of each share is £1 and has been satisfied by way of share exchange of ordinary shares of £1 each in the capital of Chessington Nurseries Ltd. |
| Chessington Nurseries Holdings |
| Company Limited (Registered number: 10701643) |
| Notes to the Consolidated Financial Statements - continued |
| for the Year Ended 31 December 2020 |
| 21. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 January 2020 | (530,341 | ) |
| Profit for the year | 98,471 |
| At 31 December 2020 | (431,870 | ) |
| 22. | POST BALANCE SHEET EVENTS |
| There were no post balance sheet events that require being brought to the attention of the shareholders or creditors. |