S. Pugh & Son ( Garden Centre ) Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01872960 (England and Wales)

S. PUGH & SON ( GARDEN CENTRE ) LTD

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2018

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

Mrs W.M. Pugh

G.N. Pugh

I.M. Pugh

SECRETARY:

Mrs W.M. Pugh

REGISTERED OFFICE:

Tynant Nursery

Ty Nant Road

Morganstown

Cardiff

SOUTH GLAMORGAN

CF15 8LB

REGISTERED NUMBER:

01872960 (England and Wales)

FIXED ASSETS

Tangible assets

4

1,489,074

1,325,514

Investments

5

82,500

82,500

1,571,574

1,408,014

CURRENT ASSETS

Stocks

6

359,513

239,720

Debtors

7

538,595

528,570

Cash at bank and in hand

159,012

312,635

1,057,120

1,080,925

CREDITORS

Amounts falling due within one year

8

783,279

654,908

NET CURRENT ASSETS

273,841

426,017

TOTAL ASSETS LESS CURRENT LIABILITIES

1,845,415

1,834,031

CREDITORS

Amounts falling due after more than one year

9

(373,625

)

(420,137

)

PROVISIONS FOR LIABILITIES

12

(84,258

)

-

NET ASSETS

1,387,532

1,413,894

CAPITAL AND RESERVES

Called up share capital

13

5,000

5,000

Revaluation reserve

14

84,555

84,555

Retained earnings

14

1,297,977

1,324,339

SHAREHOLDERS' FUNDS

1,387,532

1,413,894

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 January 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 January 2018 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

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 on 14 August 2018 and were signed on its behalf by:

G.N. Pugh - Director

1.	STATUTORY INFORMATION

S. Pugh & Son ( Garden Centre ) Ltd is a private company, limited by shares , registered in England and Wales.

The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Significant judgements and estimates

In the application of the company's accounting policies, which are described in note 1, management is required

to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not

readily apparent from other sources. The estimates and underlying assumptions are based on historical

experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates

are recognised in the period in which the estimate is revised if the revision affects only that period, or in the

period of the revision and future periods if the revision affects both current and future periods.

Valuation of land and buildings

As described in note 9 to the financial statements, land and buildings are stated at fair value based on the

valuation performed by the Directors.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods, net of VAT and

trade discounts.

Rents received

Rental income is recognised in the period to which it relates, net of VAT.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Freehold property

-

2.5% of valuation

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

12.5% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Investment property

Investment properties for which fair value can be measured reliably without undue cost or effort are measured

at fair value at each reporting date with changes in fair value measured through profit and loss.

The methods and significant assumptions used to ascertain the fair value at the balance sheet date and fair value

movement in the profit for the year are as follows:

Properties are valued by the directors using a yield calculation to ascertain a fair value.

Stocks

Stock is valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items. Cost price is calculated by reference to retail prices less known mark-ups. Nursery stock is

calculated by reference to the cost of equivalent stock items available from external suppliers.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to

the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different

from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and

laws that have been enacted or substantively enacted by the year end and that are expected to apply to the

reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital

element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Group accounts

In preparing these financial statements,advantage has been taken of the exemptions conferred by section 399 of

the Companies Act 2006 not to prepare consolidated group accounts, on the grounds that the group is entitled to

the benefit of those exemptions as a small size group.These financial statements therefore present present

information about the company as an individual undertaking and not about its group.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past

event, it is probable that an outflow of economic benefit will be required in settlement and the amount can be

reliable estimated.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in the profit and loss account in other

administration expenses.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 81 (2017 - 77 ) .

4.	TANGIBLE FIXED ASSETS

Freehold

Short

Plant and

property

leasehold

machinery

£

£

£

COST OR VALUATION

At 1 February 2017

1,039,751

194,731

280,677

Additions

29,253

94,439

-

At 31 January 2018

1,069,004

289,170

280,677

DEPRECIATION

At 1 February 2017

281,083

21,127

246,928

Charge for year

26,726

9,702

6,756

At 31 January 2018

307,809

30,829

253,684

NET BOOK VALUE

At 31 January 2018

761,195

258,341

26,993

At 31 January 2017

758,668

173,604

33,749

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

COST OR VALUATION

At 1 February 2017

624,421

30,177

75,073

2,244,830

Additions

135,287

-

14,448

273,427

At 31 January 2018

759,708

30,177

89,521

2,518,257

DEPRECIATION

At 1 February 2017

301,140

26,616

42,422

919,316

Charge for year

50,615

890

15,178

109,867

At 31 January 2018

351,755

27,506

57,600

1,029,183

NET BOOK VALUE

At 31 January 2018

407,953

2,671

31,921

1,489,074

At 31 January 2017

323,281

3,561

32,651

1,325,514

Cost or valuation at 31 January 2018 is represented by:

Freehold

Short

Plant and

property

leasehold

machinery

£

£

£

Valuation in 2011

84,555

-

-

Cost

984,449

289,170

280,677

1,069,004

289,170

280,677

Fixtures

and

Motor

Computer

fittings

vehicles

equipment

Totals

£

£

£

£

Valuation in 2011

-

-

-

84,555

Cost

759,708

30,177

89,521

2,433,702

759,708

30,177

89,521

2,518,257

Properties are held for investment purposes and as such they are not depreciated. Such properties are not held

for consumption but for investment and the Directors consider that to depreciate them would not give a true and

fair view.

The value of the properties, which have been included at a fair value valuation and have been considered by the

Directors.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Fixtures

and

fittings

£

COST OR VALUATION

At 1 February 2017

21,171

Transfer to ownership

(21,171

)

At 31 January 2018

-

DEPRECIATION

At 1 February 2017

4,962

Transfer to ownership

(4,962

)

At 31 January 2018

-

NET BOOK VALUE

At 31 January 2018

-

At 31 January 2017

16,209

5.	FIXED ASSET INVESTMENTS

Other

investments

£

COST

At 1 February 2017

and 31 January 2018

82,500

NET BOOK VALUE

At 31 January 2018

82,500

At 31 January 2017

82,500

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

Styles Garden Centre Limited

Registered office:

Nature of business: Garden Centre

%

Class of shares:

holding

Ordinary

75.00

2018

31.1.17

£

£

Aggregate capital and reserves

27,549

95,328

(Loss)/profit for the year

(10,314

)

40,929

6.

STOCKS

2018

2017

£

£

Stock of goods for resale

359,513

239,720

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

126,138

116,110

Other debtors

354,558

397,943

Prepayments and accrued income

57,899

14,517

538,595

528,570

There is no formal agreement between the group undertaking balance and the Company for the group

undertakings to repay their loans in more than one year. All the loans are repayable by demand and are shown

at cost. The amounts shown in the accounts are at their carrying values.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Bank loans and overdrafts

50,132

44,465

Hire purchase contracts (see note 10)

-

588

Trade creditors

432,744

288,137

Tax

37,786

40,870

Social security and other taxes

117,046

129,450

Other creditors

10,000

10,000

Directors' current accounts

100,933

83,104

Accrued expenses

34,638

58,294

783,279

654,908

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2018

2017

£

£

Bank loans

373,625

420,137

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2018

2017

£

£

Net obligations repayable:

Within one year

-

588

Non-cancellable

operating leases

2018

2017

£

£

Within one year

148,816

147,442

Between one and five years

297,632

294,884

In more than five years

595,264

589,768

1,041,712

1,032,094

11.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Bank loans

423,757

464,602

Hire purchase contracts

-

588

423,757

465,190

The Natwest bank holds a first charge over land at Pughs Garden Centre, at east side Ty Nant Road,

Morganstown. The bank also holds a fixed and floating charge over all current and future assets of the

company. The company has also provided an unlimited guarantee to a loan creditor of its subsidiary, Style

Gardens Limited and cross guarantee in favour of S Pugh & Son (Garden Centre Cwmbran) Limited.

Bank loans are secured by the Company's land and buildings which have a carrying value of £761,195 (2017 -

£758,668). The directors consider that the carrying amounts of the bank loans and overdraft approximate to

their fair values.

12.	PROVISIONS FOR LIABILITIES

2018

2017

£

£

Deferred tax

84,258

-

Deferred

tax

£

Accelerated capital allowances

84,258

Balance at 31 January 2018

84,258

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

£

£

5,000

Ordinary

£1

5,000

5,000

14.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 February 2017

1,324,339

84,555

1,408,894

Profit for the year

122,056

122,056

Dividends

(148,418

)

(148,418

)

At 31 January 2018

1,297,977

84,555

1,382,532

15.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

During the year the directors maintained loan accounts with the company. The movements in the directors loan

accounts were as follows:

31.01.18

31.01.17

CWC Pugh

Balance B.Fwd

66,091

58,469

Amounts withdrawn

(24,663

)

(17,769

)

Dividends voted

34,136

25,391

Balance C.Fwd

75,564

66,091

Maximum amount owed to/from the company during the year

75,564

66,091

WM Pugh

Balance B.Fwd

8,610

7,225

Amounts withdrawn

(10,807

)

(9,655

)

Dividends voted

14,842

11,040

Balance C.Fwd

12,645

8,610

Maximum amount owed to/from the company during the year

12,645

8,610

GN Pugh

Balance B.Fwd

73

187

Amounts withdrawn

(49,630

)

(37,097

)

Dividends voted

49,720

36,983

Balance C.Fwd

163

73

Maximum amount owed to/from the company during the year

163

187

IM Pugh

Balance B.Fwd

8,330

6,145

Amounts withdrawn

(45,490

)

(34,798

)

Dividends voted

49,720

36,983

Balance C.Fwd

12,560

8,330

Maximum amount owed to/from the company during the year

12,560

8,330

16.	RELATED PARTY DISCLOSURES

There was no controlling party during the period under review.

During the year the company made sales of £64,893 (2017 - £50,635) to and no purchases (2017 - Nil) from

Style Gardens Limited , a subsidiary undertaking. All of these transactions were carried out on an arms length

basis.

As at 31 January 2018 a balance of £366,764 (2017 - £366,218) was due from Style Gardens Limited.

The company has given a guarantee in respect of a lease agreement entered into by Style Gardens Limited.

During the year the company has paid rent of £70,000 (2017 - £70,000) to the pension fund, in which the

directors hold a beneficial interest and £30,000 (2017 - £28,500).

As at 31 January 2018 a balance of £10,249 (2017 - £33,683 Debtor) was due to Pugh's Construction Limited.

Also, included in fixed assets additions is £181,055 (2017 - £42,688) of construction invoices for work

completed at the Company's main premises and new coffee shop.

17.	ULTIMATE CONTROLLING PARTY