Tendercare Nurseries Limited - Filleted accounts

TENDERCARE NURSERIES LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 AUGUST 2021

Company Registration Number: 02325757

TENDERCARE NURSERIES LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
CONTENTS									PAGES
Company information									1
Balance sheet									2 to 3
Notes to the financial statements									4 to 13

TENDERCARE NURSERIES LIMITED
COMPANY INFORMATION
FOR THE YEAR ENDED 31 AUGUST 2021
DIRECTORS
A Halksworth
A M Halksworth
SECRETARY
A M Halksworth
REGISTERED OFFICE
Southlands Road
Denham
Uxbridge
Middlesex
UB9 4HD
COMPANY REGISTRATION NUMBER
02325757 England and Wales

TENDERCARE NURSERIES LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2021
			Notes		2021				2020
					£				£
FIXED ASSETS
Intangible assets			5				3,820				5,815
Tangible assets			6				669,961				673,224
Investments			7				475,000				475,000
							1,148,781				1,154,039
CURRENT ASSETS
Stock					839,546				856,115
Debtors			8		369,087				341,157
Cash at bank and in hand					4,932				4,611
					1,213,565				1,201,883
CREDITORS: Amounts falling due within one year			9		1,164,131				1,755,838
NET CURRENT ASSETS / (LIABILITIES)							49,434				(553,955)
TOTAL ASSETS LESS CURRENT LIABILITIES							1,198,215				600,084
CREDITORS: Amounts falling due after more than one year			10				690,229				26,203
Provisions for liabilities and charges							90,158				94,579
NET ASSETS							417,828				479,302
CAPITAL AND RESERVES
Called up share capital							100				100
Distributable profit and loss account							231,308				292,782
Non distributable profit and loss account							186,420				186,420
SHAREHOLDERS' FUNDS							417,828				479,302

TENDERCARE NURSERIES LIMITED
BALANCE SHEET
AS AT 31 AUGUST 2021
These accounts have been prepared and delivered in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006 and in accordance with the provisions of FRS 102 Section 1A - small entities.
For the financial year ended 31 August 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
Members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
As permitted by S444 (5A) of the Companies Act 2006 the directors have not delivered to the Registrar a copy of the company’s Profit and Loss Account or Directors Report.
Signed on behalf of the board of directors
A Halksworth
Director
Date approved by the board: 12 April 2022

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
1	GENERAL INFORMATION
	Tendercare Nurseries Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is:
	Southlands Road
	Denham
	Uxbridge
	Middlesex
	UB9 4HD
	The financial statements are presented in Sterling, which is the functional currency of the company.
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Basis of preparation of financial statements
	These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 Section 1A smaller entities 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the Companies Act 2006.
	Going concern

	The accounts have been drawn up on the going concern basis. The company owes its bank, by way of an overdraft, £238,945 which could be required for repayment without notice. The company also has bank loans of £752,857 which are repayable in instalments over the term of the loans. The company is therefore dependent upon the continued support of the bank. The directors do not consider the support of the bank likely to be withdrawn.
	If the going concern basis was not appropriate, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for additional liabilities that might arise and to reclassify fixed assets as current assets.

	Revenue recognition

	Turnover is measured at the fair value of consideration received or receivable. It is recognised in respect of the supply of specimen plants and associated products, as well as services to the landscape industry and garden owners as soon as there is a right to consideration and is determined by reference to the value of the work performed. Turnover is stated net of trade discounts and value added tax.
	The company recognises revenue when the amount of revenue can be measured reliably and when it is probable that future economic benefits will flow to the entity.

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Grant Income

	Grant income has been recognised under the accrual model, where income is recognised on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.
	Grant income of £61,490 (2020 - £76,378) was recognised during the year, received from the Government's Job Retention Scheme. This was a scheme introduced due to the COVID-19 pandemic, where employers are able to claim grants of up to 80% of furloughed employees' wages costs.
	The company also received grant income of £3,000 (2020 - £nil) from the local council.
	A further £1,250 (2020 - £nil) was received from interest paid as part of the Coronavirus Bounce Back Loan scheme. This scheme was also introduced due to the Covid-19 pandemic. The scheme allowed companies to apply for loans, of which the Government guarantee 100% and no payment is due for the first 12 months, with the Government paying all interest and fees during this period.

	Intangible fixed assets

	Intangible fixed assets, other than goodwill, are stated at cost less accumulated amortisation and any accumulated impairment losses. It is amortised on a straight-line basis over its useful economic life of 5 years.
	Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. At acquisition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses.

	Goodwill amortisation is charged on a straight line basis so as to write off the cost of the asset, less its residual value assumed to be zero, over its useful economic life, which is estimated to be 9 years. The asset has now been fully amortised.
	If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new expectations.

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Tangible fixed assets

	Fixed assets are carried at cost less accumulated depreciation and accumulated impairment losses.

	Depreciation has been provided at the following rates so as to write off the cost or valuation of assets less residual value of the assets over their estimated useful lives.
	Tenants improvements					Straight line basis at 5% per annum
	Plant and machinery					Reducing balance basis at 20% to 25% and straight line basis at 33% per annum
	Motor vehicles					Reducing balance basis at 20% per annum
	Fixtures, fittings and equipment					Reducing balance basis at 20% per annum
	On disposal, the difference between the net disposal proceeds and the carrying amount of the item sold is recognised in the profit and loss account, and included within administrative expenses.
	Investment properties

	Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties are initially measured at cost, including transaction costs.
	Subsequently, investment properties are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in the profit and loss account in the period in which they arise.

	Financial Instruments
	The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
	Financial assets are measured at cost and are assessed at the end of each reporting period for objective evidence of impairment. Where objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

The impairment loss for financial assets measured at cost is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

	Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an enforceable right to set off the recognised amount and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Impairment of non-financial assets

	At each reporting date non-financial assets not carried at fair value, like goodwill and plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets (which is the higher of value in use and the fair value less cost to sell) is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the profit and loss account.
	Stocks are assessed for impairment at each reporting date. The carrying amount of each item of stock, or group of similar items, is compared with its selling price less cost to complete and sell. If an item of stock, or group of similar items, is impaired its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in the profit and loss account.
	If an impairment loss is subsequently reversed, the carrying amount of the asset, or group of related assets, is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset, or group of related assets, in prior periods. A reversal of an impairment loss is recognised immediately in the profit and loss account.

	Stock

	Stock has been valued at the lower of cost and estimated selling price less cost to complete and sell, after making due allowance for obsolete and slow-moving items. Cost comprises the cost of goods purchased valued on a first in first out basis.
	The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

	Debtors

	Short term debtors are measured at transaction price, less any impairment.

	Creditors
	Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and subsequently at amortised cost.

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Leases
	Leases are classified as finance leases when they transfer substantially all the risks and rewards of ownership of the leased assets to the company. Other leases that do not transfer substantially all the risks and rewards of ownership of the leased assets to the company are classified as operating leases.

	Assets held under finance leases are recognised in accordance with the company's policy for tangible fixed assets. The corresponding obligations to lessors under finance leases are treated in the balance sheet as a liability. The assets and liabilities under finance leases are recognised at amounts equal to the fair value of the assets, or if lower, the present value of minimum lease payments, determined at the inception of the lease.
	Minimum lease payments are apportioned between finance charges and the reduction in the outstanding liabilities using the effective interest method. The finance charge is allocated to each period during the lease so as to produce a constant rate of interest on the remaining balance of the liabilities. Finance charges are recognised in the profit and loss account.

	Payments applicable to operating leases are charged against profit on a straight line basis over the lease term.
	Payments received under operating leases are recognised as income over the lease term on a straight-line basis.
	Taxation
	Taxation expense represents the aggregate amount of current tax and deferred tax recognised in the reporting period.
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods based on current tax rates and laws. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period.

	Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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 taxable profits.
	Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
	Deferred tax relating to land and investment properties that is measured at fair value is measured using the tax rates and allowances that apply to the sale of the asset.

	Current and deferred tax assets and liabilities are not discounted.

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
2	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued…)
	Foreign currencies

	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.
	Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated at the rate of exchange prevailing at that date. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating profit or loss.

	Pensions
	The company operates a defined contribution pension scheme. The amount charged to the profit and loss account in respect of pension costs and other post-retirement benefits is the amount payable in the year. Differences between contributions payable and contributions actually paid in the year are shown as either accruals or prepayments in the balance sheet.
3	CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

	The directors have made key assumptions in determination of the fair value of an investment property in respect of the state of the property market in the location where the property is situated and in respect of the range of reasonable fair value estimates of the asset.

4	EMPLOYEES
	The average number of persons employed by the company (including directors) during the year was:
									2021		2020
	Average number of employees								37		47

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
5	INTANGIBLE FIXED ASSETS
							Goodwill		Website		Total
							£		£		£
	Cost
	At 1 September 2020						90,000		9,975		99,975
	At 31 August 2021						90,000		9,975		99,975
	Accumulated amounts written off
	At 1 September 2020						90,000		4,160		94,160
	Charge for year						-		1,995		1,995
	At 31 August 2021						90,000		6,155		96,155
	Net book value
	At 1 September 2020						-		5,815		5,815
	At 31 August 2021						-		3,820		3,820
6	TANGIBLE ASSETS
		Tenants improvements			Plant and machinery		Motor vehicles	Fixtures, fittings and equipment			Total
			£		£		£		£		£
	Cost
	At 1 September 2020		857,870		535,381		307,872		86,027		1,787,150
	Additions		56,263		20,861		-		1,204		78,328
	Disposals		-		-		(14,464)		-		(14,464)
	At 31 August 2021		914,133		556,242		293,408		87,231		1,851,014
	Accumulated depreciation and impairments
	At 1 September 2020		344,087		478,764		215,379		75,696		1,113,926
	Charge for year		34,984		21,066		17,310		2,286		75,646
	Disposals		-		-		(8,519)		-		(8,519)
	At 31 August 2021		379,071		499,830		224,170		77,982		1,181,053
	Net book value
	At 1 September 2020		513,783		56,617		92,493		10,331		673,224
	At 31 August 2021		535,062		56,412		69,238		9,249		669,961

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
7	FIXED ASSET INVESTMENTS
											Investment property
											£
	Cost
	At 1 September 2020										475,000
	At 31 August 2021										475,000
	Net book value
	At 1 September 2020										475,000
	At 31 August 2021										475,000
	In the opinion of the directors, the investment property has been stated at fair value.
8	DEBTORS
									2021		2020
									£		£
	Trade debtors								156,584		116,553
	Prepayments and accrued income								135,783		211,138
	Other debtors								76,720		13,466
									369,087		341,157
9	CREDITORS: Amounts falling due within one year
									2021		2020
									£		£
	Bank loans and overdrafts								301,573		839,691
	Trade creditors								305,168		260,579
	Taxation and social security								198,907		259,239
	Hire purchase contracts and finance leases								-		2,702
	Accruals and deferred income								202,988		166,513
	Other creditors								155,495		227,114
									1,164,131		1,755,838

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
10	CREDITORS: Amounts falling due after more than one year
									2021		2020
									£		£
	Bank loans and overdrafts								690,229		26,203
	Included in the amounts falling due after more than one year are the following amounts which are due in more
	than five years:
									2021		2020
									£		£
	Bank loans and overdrafts								404,067		-
11	SECURED DEBTS
	The company has a bank loan with HSBC which is repayable over 5 years, with interest being charged on this loan at 2.75% above the Bank of England base rate. This, and an overdraft with HSBC, is secured by way of personal guarantee, in the form of a first mortgage over a life policy of A Halksworth and a personal guarantee to secure all liabilities of the company limited to £185,000. Security is also given by way of the investment property held by the company. There is also a fixed and floating charge over all assets held by the company.
	The company has a second bank loan with HSBC which is repayable over 10 years, with interest being charged on this loan at 3.5%. This is secured by way of a fixed and floating charge over all assets held by the company.
	The hire purchase contracts and finance leases are secured on the assets concerned.
12	CONTINGENCIES AND COMMITMENTS
	Other Commitments
	Amounts falling due under operating leases:								2021		2020
									£		£
	In less than one year								24,152		32,142
	In more than one but less than five years								27,862		25,977
									52,014		58,119

TENDERCARE NURSERIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2021
13	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES
	The following directors' advances, credits and guarantees took place during the year:
				Balance at 1 September 2020			Amounts advanced		Amounts repaid	Balance at 31 August 2021
					£		£		£		£
	A and A M Halksworth				-		12,475		-		12,475

Interest has been charged on this advance at the Beneficial Loan Arrangement Official Rate as prescribed by HM Revenue and Customs. The advance is repayable on demand.