S. Pugh & Son ( Garden Centre ) Ltd - Accounts to registrar (filleted) - small 23.1.2
S. Pugh & Son ( Garden Centre ) Ltd - Accounts to registrar (filleted) - small 23.1.2
REGISTERED NUMBER: |
S. PUGH & SON ( GARDEN CENTRE ) LTD |
UNAUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 4 |
S. PUGH & SON ( GARDEN CENTRE ) LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JANUARY 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
BALANCE SHEET |
31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
CURRENT ASSETS |
Stocks | 5 |
Debtors | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
8 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 11 | ( |
) | ( |
) |
NET ASSETS |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
BALANCE SHEET - continued |
31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 12 |
Non-distributable revaluation |
reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
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. |
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 |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
1. | STATUTORY INFORMATION |
S. Pugh & Son ( Garden Centre ) Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. In making his assessment, the director has reviewed the balance sheet, the likely future cashflows of the business and has considered the facilities that are available to the company along with his continued support. |
At the date of approving the financial statements the Director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and that the going concern basis of accounting remains appropriate. The directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Significant judgements and estimates |
In the application of the company's accounting policies, which are described in note 2, 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 8 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 2 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 represents the value of goods sold excluding value added tax and is recognised in the financial statements when cash has been received or is receivable. |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates value added tax and other sales taxes. |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- The company has transferred the significant risks and rewards of owner to the buyer; |
- The company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- the amount of revenue can be measured reliably; |
- it is probable that the company will receive the consideration due under the transaction; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Concession and Rental income |
Turnover is recognised in the period which it relates over the term of the lease agreement. Income is recognised within other operating income. |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Short leasehold | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. |
At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price costs to complete and sell. Costs price is calculated by reference to retail prices less known mark-ups. Net realisable value is based on the estimated selling price less any estimated completion or selling costs. |
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs. |
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. |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
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. |
Where there are a number of similar obligations, the likelihood that an outflow of economic benefits will be required in settlement is determined by considering the class of obligation as a whole. A provision is recognised even if the likelihood of an outflow with respect of any one item in the same class of obligations may be small. |
Provisions are not made for future operating losses. |
Provisions are measures at the present value of the cost expected to be required to settle the obligation using a pre-tax rate that reflects current market assessment of the time value of money and the risks specific to the obligation. The increase in the provision due to the passing of time is recognised as a cost in the income statement. |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
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 |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
4. | TANGIBLE FIXED ASSETS |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 February 2022 |
Additions |
At 31 January 2023 |
DEPRECIATION |
At 1 February 2022 |
Charge for year |
At 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST OR VALUATION |
At 1 February 2022 |
Additions |
At 31 January 2023 |
DEPRECIATION |
At 1 February 2022 |
Charge for year |
At 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
4. | TANGIBLE FIXED ASSETS - continued |
Cost or valuation at 31 January 2023 is represented by: |
Freehold | Short | Plant and |
property | leasehold | machinery |
£ | £ | £ |
Valuation in 2011 | 84,555 | - | - |
Cost | 1,184,449 | 743,510 | 509,406 |
1,269,004 | 743,510 | 509,406 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
Valuation in 2011 | - | - | - | 84,555 |
Cost | 1,452,204 | 71,421 | 215,482 | 4,176,472 |
1,452,204 | 71,421 | 215,482 | 4,261,027 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 February 2022 |
Additions |
At 31 January 2023 |
DEPRECIATION |
At 1 February 2022 |
Charge for year |
At 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
5. | STOCKS |
2023 | 2022 |
£ | £ |
Stock of goods for resale |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
Within other debtors is an amount due from a connected company. There is no formal agreement between the connected company and the company for them to repay their loan in more than one year. The amounts due are repayable on demand and are shown at cost. The amounts shown in the accounts are at their carrying values. |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts |
Hire purchase contracts (see note 9) |
Trade creditors |
Taxation and social security |
Other creditors |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans |
Hire purchase contracts (see note 9) |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
9. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
10. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Bank loans |
Hire purchase contracts | 211,733 | 174,660 |
The Natwest bank holds a first charge over land at Pughs Garden Village, 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 a company under common control, Style Gardens Limited |
Bank loans are secured by the company's land and buildings which have a carrying value of £812,564 (2022 - £844,290). 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 2023 and as disclosed in note 8 of the financial statements. |
11. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 247,108 | 155,866 |
Deferred |
tax |
£ |
Balance at 1 February 2022 |
Accelerated capital allowances | 77,130 |
Deferred tax on revaluation | 14,112 |
Balance at 31 January 2023 |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
11. | PROVISIONS FOR LIABILITIES - continued |
The deferred tax account consists of the tax effect of timing differences in respect of; |
2023 | 2022 |
£ | £ |
Accelerated capital allowances | 232,996 | 155,866 |
Revaluation of investment properties | 14,112 | - |
247,108 | 155,866 |
As at 31 January 2023 there was a deferred tax creditor of £247,108, which is referred to in note 14 to the financial statements. |
12. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary B | £1 | 2,400 | 2,400 |
Ordinary C | £1 | 300 | 300 |
Ordinary D | £1 | 300 | 300 |
2,400 | Ordinary A | £1 | 2,400 | 2,400 |
200 | Ordinary E | £1 | 200 | 200 |
200 | Ordinary F | £1 | 200 | 200 |
200 | Ordinary G | £1 | 200 | 200 |
6,000 | 6,000 |
13. | TRANSACTIONS WITH DIRECTORS |
As at 31 January 2023 an amount of £57,721 (2022 - £91,580) was owed to the Directors. The amount was included with creditors, amounts falling due within one year. |
All amounts due to the Directors are interest free and considered repayable on demand. |
S. PUGH & SON ( GARDEN CENTRE ) LTD (REGISTERED NUMBER: 01872960) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
14. | RELATED PARTY DISCLOSURES |
During the year the company made sales of £302,406 (2022 - £145,857) to Style Gardens Limited a company under common control. The company also incurred costs with Style Gardens Limited of £21,546 (2022 - £NIL) in respect of shared marketing and consultancy. |
Included within debtors falling due within one year is £183,000 (2022 - £218,958) due from Style Gardens Limited. The company has provided a guarantee in respect of the lease entered into by Style Gardens Limited. |
During the year the company has paid rent of £81,000 (2022 - £81,000) to the pension fund, in which the directors hold a beneficial interest and £30,000 (2022 - £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 £74,546 (2022 - £261,159) by Pughs Construction Limited. As at the 31 January 2023 an amount of £26,616 (2022 - £26,616) was owed to Pughs Construction Limited and was included with creditors, amounts falling due within one year. |
Pughs Construction Limited is a company under common control. |
15. | ULTIMATE CONTROLLING PARTY |