F.A. Gates & Son Limited - Period Ending 2023-01-31
F.A. Gates & Son Limited - Period Ending 2023-01-31
Registration number:
F.A. Gates & Son Limited
for the Year Ended 31 January 2023
F.A. Gates & Son Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account and Statement of Retained Earnings |
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Balance Sheet |
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Notes to the Financial Statements |
F.A. Gates & Son Limited
Company Information
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Directors |
N. A. Gates K. G. Gates J. E. Gates |
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Company secretary |
N. A. Gates |
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Registered office |
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Auditors |
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F.A. Gates & Son Limited
Strategic Report for the Year Ended 31 January 2023
The directors present their strategic report for the year ended 31 January 2023.
Principal activity
The principal activity of the company is that of a garden centre.
Fair review of the business
The directors consider that the company's business has continued to operate satisfactorily and believe that a strong platform is in place to allow for sustained growth within the industry. Their focus continues to be to meet the needs of the customer base by delivering superior quality products; offering excellent value for money; with best-in industry service levels.
The company's gross profit margin has fallen during the year due to increases in sales of lower margin products and increased staffing in the food sectors to improve the customer experience. The turnover has increased again this year due to the continuing success of the farm shop, website and click and collect facilities. However, the increasing success of the website favoured the normal garden centre products, which yield lower margins than the restaurant and cafe.
The company's key financial and other performance indicators during the year were as follows:
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Financial KPIs |
Unit |
2023 |
2022 |
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Turnover |
£'000 |
15,658 |
15,100 |
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Profit before taxation |
£'000 |
760 |
1,468 |
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Gross profit |
% |
23 |
24 |
|
Shareholders' funds |
£'000 |
7,773 |
7,388 |
Future developments
The current year is expected to turnout similar results despite the challenges of increasingly variable weather and seasonality impacting on supply lines and stock holding requirements. The directors are also mindful of overhead pressures, particularly with no rates rebate expected in the current year, rising power costs and the increased costs of debt finance which are among the challenges being managed.
F.A. Gates & Son Limited
Strategic Report for the Year Ended 31 January 2023
Principal risks and uncertainties
The company manages its key risks strategically at Board level and operationally in senior leadership meetings.
Weather
Weather is a key risk to the company due to the seasonal nature of the sale of plants, gardening and outdoor living products. Adverse weather can lead to reduced footfall impacting on both profitability and stock levels. The company's growth in indoor retail and hospitality has reduced its reliance on good weather.
Supply Chain
Supply chain is a significant risk currently facing the company and garden centres in general due to significant disruptions of global supply chains over recent years. To mitigate against this risk the company has increased stock levels, which has resulted in additional costs, but has ensured it maintains extremely robust supply arrangements.
Competition
The company competes with a variety of retailers including garden centres, DIY retailers and high quality food providers. The company closely monitors its position and remains competitive on range, value, quality and service.
Approved and authorised by the
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F.A. Gates & Son Limited
Directors' Report for the Year Ended 31 January 2023
The directors present their report and the financial statements for the year ended 31 January 2023.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The company's principal financial instruments comprise bank balances, trade debtors, trade creditors, loans to the business and finance lease agreements. The purpose of these instruments is to finance the company's operations.
Price risk, credit risk, liquidity risk and cash flow risk
In respect of bank balances, the liquidity risk is managed by maintaining a cash balance within the banking facilities agreed throughout the year.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the very limited availability of credit offered to customers. The amounts presented in the balance sheet are net of allowances for doubtful debtors.
Trade creditors' liquidity risk is managed by ensuring funds are available to meet amounts due.
Loans comprise funds provided by the company loan bankers. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments.
The company is a lessee in respect of finance leased assets. The liquidity risk in respect of these is managed by ensuring that there are sufficient funds to meet the payments.
F.A. Gates & Son Limited
Directors' Report for the Year Ended 31 January 2023
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
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F.A. Gates & Son Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
F.A. Gates & Son Limited
Independent Auditor's Report to the Members of F.A. Gates & Son Limited
Opinion
We have audited the financial statements of F.A. Gates & Son Limited (the 'company') for the year ended 31 January 2023, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, and 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 company's affairs as at 31 January 2023 and of its 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 director's 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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.
F.A. Gates & Son Limited
Independent Auditor's Report to the Members of F.A. Gates & Son Limited
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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
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, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the 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 6], 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 is 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 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 company or to cease operations, or have no realistic alternative but to do so.
F.A. Gates & Son Limited
Independent Auditor's Report to the Members of F.A. Gates & Son Limited
Auditor 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 an auditor’s report 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.
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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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below: |
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enquiring of management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they had knowledge of any actual, suspected or alleged fraud; and the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations. |
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we obtained an understanding of the legal and regulatory frameworks applicable to the company based on our understanding of the company, sector experience and discussions with management. The most significant considerations for the company are the Companies Act 2006, Corporate and VAT legislation, Employment Taxes, Consumer Rights Act 2015, Health and Safety, Food Safety laws and the Bribery Act 2010. |
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discussing amongst the engagement team, who also undertook the audit testing on significant components, to assess how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas: management override of control; and revenue recognition, specifically the manipulation of revenue using fraudulent journals. |
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we tested the appropriateness of accounting journals and other adjustments made in the preparation of the financial statements. |
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we reviewed the company's accounting policies for non-compliance with relevant standards. Our work also included considering significant accounting estimates for evidence of misstatement or possible bias and testing any significant transactions that appeared to be outside the normal course of business. |
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we critically assessed the appropriateness and tested the application of the revenue policies. |
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Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
F.A. Gates & Son Limited
Independent Auditor's Report to the Members of F.A. Gates & Son Limited
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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 an auditor’s report 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.
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For and on behalf of
Westwood House
78 Loughborough Road
Quorn
Leicestershire
LE12 8DX
F.A. Gates & Son Limited
Profit and Loss Account and Statement of Retained Earnings for the Year Ended 31 January 2023
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Note |
2023 |
2022 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
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Other interest receivable and similar income |
- |
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Interest payable and similar charges |
( |
( |
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(200,557) |
(100,780) |
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Profit before tax |
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|
|
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Taxation |
( |
( |
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Profit for the financial year |
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|
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Retained earnings brought forward |
7,388,148 |
6,050,900 |
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Retained earnings carried forward |
7,772,959 |
7,388,148 |
F.A. Gates & Son Limited
(Registration number: 03691840)
Balance Sheet as at 31 January 2023
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Note |
2023 |
2022 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Retained earnings |
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Shareholders' funds |
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Approved and authorised by the
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F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
Somerby Road
Cold Overton
Oakham
Rutland
LE15 7QB
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Summary of disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements as permitted by Financial Reporting Standard 102 'The Financial Reporting Standard in the United Kingdom and Republic of Ireland';
- the requirements of section 7 Statement of Cash Flows.
F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Name of parent of group
These financial statements are consolidated in the financial statements of Gates Family Holdings Limited.
The financial statements of Gates Family Holdings Limited may be obtained from Westwood House, 78 Loughborough Road, Quorn, Loughborough, Leicestershire, LE12 8DX.
Judgements
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
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(i) Useful economic lives of tangible fixed 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 current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 13 for the carrying amount of the tangible fixed assets, and see the policy below for the useful economic lives of each class of asset. |
(ii) Stock provisioning. The company holds high levels of seasonal stock and as a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.
Government grants
Government grants are recognised on an accruals basis.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the 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.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
|
Asset class |
Depreciation method and rate |
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Freehold land |
Nil |
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Freehold buildings |
2% straight line |
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Motor vehicles |
25% reducing balance |
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Plant and machinery |
20% straight line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the trade debtors.
F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of goods for resale comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in the profit and loss account.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
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Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
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2023 |
2022 |
|
|
Sale of goods |
|
|
|
Rental concession income |
|
|
|
|
|
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Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2023 |
2022 |
|
|
Government grants |
- |
|
|
Property rental income |
|
|
|
Business interruption insurance claim |
- |
|
|
|
|
F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
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Operating profit |
Arrived at after charging/(crediting):
|
2023 |
2022 |
|
|
Depreciation |
|
|
|
Profit on disposal of plant and machinery |
(72,370) |
(12,703) |
|
Government grants |
The amount of grants recognised in the financial statements was £Nil (2022 - £
|
Other interest receivable and similar income |
|
2023 |
2022 |
|
|
Interest income on bank deposits |
- |
|
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Dividend income |
- |
|
|
- |
|
|
Interest payable and similar expenses |
|
2023 |
2022 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
- |
|
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F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
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Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2023 |
2022 |
|
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Wages and salaries |
|
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Social security costs |
|
|
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Pension costs, defined contribution scheme |
|
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The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
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2023 |
2022 |
|
|
Administration and support |
|
|
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Sales, marketing and distribution |
|
|
|
|
|
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Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2023 |
2022 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
42,654 |
40,321 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2023 |
2022 |
|
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Accruing benefits under money purchase pension scheme |
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Auditors' remuneration |
|
2023 |
2022 |
|
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Audit of the financial statements |
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F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
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Taxation |
Tax charged in the profit and loss account:
|
2023 |
2022 |
|
|
Current taxation |
||
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UK corporation tax |
|
|
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UK corporation tax adjustment to prior periods |
- |
( |
|
134,414 |
213,175 |
|
|
Deferred taxation |
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Arising from origination and reversal of timing differences |
|
( |
|
Arising from changes in tax rates and laws |
|
- |
|
Total deferred taxation |
|
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
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2023 |
2022 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
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Deferred tax expense relating to changes in tax rates or laws |
|
- |
|
Tax (decrease)/increase from effect of capital allowances and depreciation |
( |
|
|
Tax increase/(decrease) from other short-term timing differences |
|
( |
|
Tax decrease from effect of adjustment in research and development tax credit |
- |
( |
|
Total tax charge |
|
|
F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Deferred tax
Deferred tax assets and liabilities
|
2023 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
|
2022 |
Asset |
Liability |
|
Accelerated capital allowances |
- |
|
From 1 April 2023 the rate of corporation tax in the United Kingdom will increase from 19% to 25%. Companies with profits of £50,000 or less will continue to be taxed at 19% which is the new small profits rate. Where taxable profits are between £50,000 and £250,000 the higher rate of 25% will apply but with a marginal relief applying as profits increase.
|
Tangible assets |
|
Land and buildings |
Motor vehicles |
Properties under construction |
Plant and machinery |
Total |
|
|
Cost or valuation |
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|
At 1 February 2022 |
|
|
- |
|
|
|
Additions |
|
|
|
|
|
|
Disposals |
- |
( |
- |
( |
( |
|
At 31 January 2023 |
|
|
|
|
|
|
Depreciation |
|||||
|
At 1 February 2022 |
|
|
- |
|
|
|
Charge for the year |
|
|
- |
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
( |
|
At 31 January 2023 |
|
|
- |
|
|
|
Carrying amount |
|||||
|
At 31 January 2023 |
|
|
|
|
|
|
At 31 January 2022 |
|
|
- |
|
|
Included within the net book value of land and buildings above is £9,731,016 (2022 - £9,333,189) in respect of freehold land and buildings.
F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2023 |
2022 |
|
|
Plant and machinery |
28,440 |
84,000 |
|
Motor vehicles |
91,290 |
- |
|
119,730 |
84,000 |
Restriction on title and pledged as security
|
Stocks |
|
2023 |
2022 |
|
|
Goods for resale |
|
|
Impairment of stocks
The amount of impairment loss included in the profit and loss account is £Nil (2022 - £347,771). The amount of reversal of impairment recognised in the profit and loss account is £178,895 (2022 - £Nil). These relate to items damaged during storage, seasonality and slow moving items.
|
Debtors |
|
Current |
Note |
2023 |
2022 |
|
Trade debtors |
|
|
|
|
Amounts owed by related parties |
|
|
|
|
Other debtors |
|
|
|
|
|
|
F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
|
Creditors |
|
Note |
2023 |
2022 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to related parties |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other payables |
|
|
|
|
Accrued expenses |
|
|
|
|
Income tax liability |
429,929 |
295,514 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 February 2022 |
|
|
|
Additional provisions |
|
|
|
At 31 January 2023 |
|
|
|
|
||
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
|
Share capital |
Allotted, called up and fully paid shares
|
2023 |
2022 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
Rights, preferences and restrictions
|
Ordinary shares have the following rights, preferences and restrictions: |
|
Reserves |
Share capital
There is a single class of ordinary shares. All the shares hold full voting rights and there are no restrictions on the distribution of dividends and the repayment of capital.
Profit and loss account
The profit and loss reserve represents accumulated comprehensive income for the year and prior periods less dividends paid.
|
Loans and borrowings |
|
2023 |
2022 |
|
|
Non-current loans and borrowings |
||
|
Bank borrowings |
|
|
|
Hire purchase and finance lease liabilities |
|
- |
|
|
|
|
|
2023 |
2022 |
|
|
Current loans and borrowings |
||
|
Bank borrowings |
|
|
|
Bank overdrafts |
|
- |
|
Hire purchase and finance lease liabilities |
|
|
|
|
|
|
F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Bank borrowings
|
The bank borrowings are secured on freehold property owned by the company and freehold property owned by a director. |
Included in the loans and borrowings are the following amounts due after more than five years:
|
2023 |
2022 |
|
|
After more than five years by instalments |
|
|
|
- |
- |
Borrowings due after five years
Included in bank loans are seven seperate loans from the same provider all repayable in monthly instalments. These are as follows:
- £82,640 repayable in 1 year 4 months subject to interest at 1.20% over base;
- £25,376 repayable in 2 years 4 months subject to interest at 1.20% over base:
- £72,764 repayable in 2 years 10 months subject to interest at 1.45% over base;
- £320,209 repayable in 2 years 11 months subject to interest at 1.45% over base;
- £2,980,191 repayable in 12 years 2 months subject to interest at 2.41% over base;
- £450,306 repayable in 12 years 11 months subject to interest at 2.41% over base;
- £743,487 repayable in 14 years 7 months subject to interest at 2.75% over base.
|
Obligations under leases and hire purchase contracts |
Finance leases
The hire purchase liabilities are secured on the assets they relate to.
The total of future minimum lease payments is as follows:
|
2023 |
2022 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
- |
|
|
|
F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
|
Related party transactions |
Key management compensation
|
2023 |
2022 |
|
|
Salaries and other short term employee benefits |
|
|
|
Transactions with directors |
|
2023 |
At 1 February 2022 |
Advances to director |
Repayments by director |
At 31 January 2023 |
|
N. A. Gates |
||||
|
Director's loan account |
( |
|
( |
|
|
K. G. Gates |
||||
|
Director's loan account |
( |
|
( |
( |
|
J. E. Gates |
||||
|
Director's loan account |
( |
|
( |
( |
|
2022 |
At 1 February 2021 |
Advances to director |
Repayments by director |
At 31 January 2022 |
|
N. A. Gates |
||||
|
Director's loan account |
( |
|
( |
( |
|
K. G. Gates |
||||
|
Director's loan account |
( |
|
( |
( |
|
J. E. Gates |
||||
|
Director's loan account |
( |
|
( |
( |
F.A. Gates & Son Limited
Notes to the Financial Statements for the Year Ended 31 January 2023
Summary of transactions with other related parties
At the balance sheet date the company was owed an amount of £497,562 (2022 - £497,198) from it's ultimate parent company and £17 (2022 - £83) from a fellow subsidiary company.
During the year the company has had commercial use of land owned by the Nigel Gates LLP and N. A. Gates, a director and shareholder of the company, for a rental charge of £12,500 (2022 - £nil).
|
Parent and ultimate parent undertaking |
The company's immediate parent is
These financial statements are available upon request from the registered office, Westwood House, 78 Loughborough Road, Quorn, Leicestershire LE12 8DX.