Style Gardens Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03876990 (England and Wales)

STYLE GARDENS LIMITED

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2018

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

G.N. Pugh

I.M. Pugh

REGISTERED OFFICE:

Port Road

Wenvoe

Cardiff

CF5 6AD

REGISTERED NUMBER:

03876990 (England and Wales)

FIXED ASSETS

Tangible assets

4

713,771

517,315

CURRENT ASSETS

Stocks

5

137,519

105,519

Debtors

6

37,236

35,141

Cash at bank and in hand

22,992

41,305

197,747

181,965

CREDITORS

Amounts falling due within one year

7

642,366

588,988

NET CURRENT LIABILITIES

(444,619

)

(407,023

)

TOTAL ASSETS LESS CURRENT LIABILITIES

269,152

110,292

CREDITORS

Amounts falling due after more than one year

8

(145,127

)

(1,342

)

PROVISIONS FOR LIABILITIES

11

(76,854

)

(49,466

)

ACCRUALS AND DEFERRED INCOME

(19,622

)

(21,621

)

NET ASSETS

27,549

37,863

CAPITAL AND RESERVES

Called up share capital

12

110,000

110,000

Revaluation reserve

13

179,876

197,864

Retained earnings

13

(262,327

)

(270,001

)

SHAREHOLDERS' FUNDS

27,549

37,863

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

Style Gardens Limited 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

Going concern

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.

At the Balance sheet date the Company had net current liabilities of £444,618. The Directors are aware of the

position and have taken steps with a view to securing the future of the Company.The profits of the Company

have been steadily increasing in the last two years. The Company can also rely on the continued support of the

Company's bankers and its Parent company.

The Directors have prepared forecasts for the next twelve months. They believe that these forecasts are based

on realistic income assumptions and are confident that the Company will continue to be able to meet its debts as

they fall due.

If the Company were unable to continue in operational existence for the foreseeable future, adjustments would

have to be made to reduce the Balance sheet values of assets to their recoverable amounts and to provide for

further liabilities that might arise, and to reclassify fixed assets and long term liabilities as current assets and

liabilities. The Directors believe that it is appropriate for the financial statements to be prepared on a going

concern basis.

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 7 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, excluding discounts, rebates,

value added tax and other sales taxes.

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.

Short leasehold

-

Over term of lease

Plant and machinery

-

20% on reducing balance

Motor vehicles

-

20% 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

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

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.

Hire purchase and leasing commitments

Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair

value. The capital element of the future payments is treated as a liability and interest is charged to the Profit and

Loss Account on a straight line basis.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with

the lessor are charged against profits on a straight line basis over the period of the lease.

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 33 (2017 - 28 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

£

£

£

COST OR VALUATION

At 1 February 2017

1,100,808

173,596

-

Additions

131,134

14,507

113,635

At 31 January 2018

1,231,942

188,103

113,635

DEPRECIATION

At 1 February 2017

627,474

131,000

-

Charge for year

52,254

8,945

4,304

At 31 January 2018

679,728

139,945

4,304

NET BOOK VALUE

At 31 January 2018

552,214

48,158

109,331

At 31 January 2017

473,334

42,596

-

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST OR VALUATION

At 1 February 2017

1,000

5,471

1,280,875

Additions

-

3,440

262,716

At 31 January 2018

1,000

8,911

1,543,591

DEPRECIATION

At 1 February 2017

969

4,117

763,560

Charge for year

3

754

66,260

At 31 January 2018

972

4,871

829,820

NET BOOK VALUE

At 31 January 2018

28

4,040

713,771

At 31 January 2017

31

1,354

517,315

Cost or valuation at 31 January 2018 is represented by:

Fixtures

Short

Plant and

and

leasehold

machinery

fittings

£

£

£

Valuation in 2003

562,120

-

-

Cost

669,822

188,103

113,635

1,231,942

188,103

113,635

Motor

Computer

vehicles

equipment

Totals

£

£

£

Valuation in 2003

-

-

562,120

Cost

1,000

8,911

981,471

1,000

8,911

1,543,591

If the short leasehold property had not been revalued it would have been included at the following historical

cost:

2018

2017

as restated

£

£

Cost

538,688

538,688

Aggregate depreciation

241,302

241,302

Value of land in freehold land and buildings

297,386

297,386

The short leasehold property was valued on open market value basis on 29 October 2002 by Quinton Edwards, Chartered Surveyors

.

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

Plant and

and

machinery

fittings

Totals

£

£

£

COST OR VALUATION

At 1 February 2017

11,878

-

11,878

Additions

-

60,426

60,426

At 31 January 2018

11,878

60,426

72,304

DEPRECIATION

At 1 February 2017

4,276

-

4,276

Charge for year

1,520

2,015

3,535

At 31 January 2018

5,796

2,015

7,811

NET BOOK VALUE

At 31 January 2018

6,082

58,411

64,493

At 31 January 2017

7,602

-

7,602

5.

STOCKS

2018

2017

as restated

£

£

Stock of goods for resale

137,519

105,519

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

as restated

£

£

Trade debtors

22,227

20,019

Prepayments and accrued income

15,009

15,122

37,236

35,141

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

as restated

£

£

Bank loans and overdrafts

64,410

45,662

Hire purchase contracts (see note 9)

13,390

2,683

Trade creditors

147,810

105,787

Tax

-

18,753

Social security and other taxes

5,763

43,425

Other creditors

567

567

Amounts owed to group undertakings

366,764

366,218

Accruals

43,662

5,893

642,366

588,988

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 AFTER MORE THAN ONE YEAR

2018

2017

as restated

£

£

Bank loans

98,940

-

Hire purchase contracts (see note 9)

46,187

1,342

145,127

1,342

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2018

2017

as restated

£

£

Net obligations repayable:

Within one year

13,390

2,683

Between one and five years

46,187

1,342

59,577

4,025

Non-cancellable

operating leases

2018

2017

as restated

£

£

Within one year

83,250

83,250

Between one and five years

166,500

166,500

In more than five years

333,000

333,000

582,750

582,750

10.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

as restated

£

£

Bank overdrafts

48,614

45,662

Bank loans

114,736

-

163,350

45,662

The Natwest bank holds a first legal charge over the leasehold premises Port Road, Wenvoe. The bank also

holds a fixed and floating charge over all of the assets of the company. The bank also holds a personal

guarantee of £50,000 each, from all of the Directors, charges on their life cover policies and a collateral

guarantee from S. Pugh & Son (Garden Centre) Limited and security on the assets of S Pugh & Son (Garden

Centre) Limited.

11.	PROVISIONS FOR LIABILITIES

2018

2017

as restated

£

£

Deferred tax

76,854

49,466

Deferred

tax

£

Balance at 1 February 2017

49,466

Accelerated capital allowances

31,885

Charges on revaluation

(4,497

)

Balance at 31 January 2018

76,854

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2018

2017

value:

as restated

£

£

110,000

Ordinary Shares of

£1

110,000

110,000

13.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1 February 2017

(270,001

)

197,864

(72,137

)

Deficit for the year

(14,811

)

(14,811

)

Deferred tax on revaluation

-

4,497

4,497

Depreciation on revalued

amount

22,485

(22,485

)

-

At 31 January 2018

(262,327

)

179,876

(82,451

)

14.	CONTINGENT LIABILITIES

The Company had no contingent liability as at the Balance sheet date.

15.	OTHER FINANCIAL COMMITMENTS

The company had no other financial commitments as at 31 January 2018.

16.	RELATED PARTY DISCLOSURES

S Pugh & Son (Garden Centre) Limited is the parent Company with directors in common.

During the year, Style Gardens Limited made purchases of £64,893 (2017 - £50,635) from and no sales (2017 -

Nil) from S Pugh & Son (Garden Centre) Limited. All these transactions were carried out on an arms length

basis.

Included in creditors is £366,764 (2017 - £366,218) due to S Pugh & Son (Garden Centre) Limited and the

Company has a guarantee in respect of the lease entered into by Style Gardens Limited.

Included in fixed assets are additions totalling £175,577 for work completed on the new coffee shop at Wenvoe,

with the work being completed by Pughs Construction Limited, a Company in which G.N. Pugh and I.M. Pugh

are Directors.

17.	ULTIMATE PARENT COMPANY