FOR THE 52 WEEKS ENDED 2 JANUARY 2022
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WEBBS GARDEN CENTRES LIMITED
COMPANY INFORMATION
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WEBBS GARDEN CENTRES LIMITED
CONTENTS
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WEBBS GARDEN CENTRES LIMITED
STRATEGIC REPORT
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
The principal activity of the business during the year was that of the retailing of garden supplies and leisure products.The results for the year and financial position of the Company are as shown in the annexed financial statements. Total revenue for the year was £26.0m (2020: £19.2m) and the profit before taxation for the year was £2,262k (2020: £950k). We have focused on trading the business as best we can and being flexible to meet the ever changing challenges and consumer needs during what has been a challenging and chaotic trading environment for the business and Retail and Hospitality sectors in general due to the ongoing Covid-19 pandemic in 2021.
Since the start of January 2021, the Government put the country into another national lockdown due to Covid-19. As in November 2020, our Garden Centre stores were able to remain open to trade, but our Restaurants had to remain closed until 17
th
May 2021 onwards, when government lockdown restrictions were eased to allow restaurants to reopen for trade.
Due to the heavier restrictions on travelling and customer movements during this lockdown, plus the first few months of the year being our typical off peak trading period, customer footfall into our stores was almost 60% down on normal levels in January. However, through careful management of wages (helped by ongoing furlough support) and other overheads, the business did not make a much bigger loss than normal in January. Once the weather started to improve in February and we were able to visually merchandise our new seasonal products so well in our stores, the changes in customer spending patterns towards more Home Living & Gardening products resulted in a significant improvement in trading performance.
Whilst customer volumes into our stores remained under normal levels, our Average Transaction Value increased significantly, with fewer browsers in our stores and increased demand for higher ticket garden furniture, BBQs and Landscapes products. This, along with a continued surge in online sales, as customers shopped more from home, resulted in a very strong trading performance in the first 4 months of 2021, significantly ahead of 2019 and 2020 since mid-February even with our Restaurants being closed.
Significant delays in imported container deliveries subsequently impacted on sales of furniture from mid-April onwards across the entire sector, as we were unable to pre-sell such items when delivery dates were unknown. However, we maintained very close communications with all of our customers to manage any ongoing order delays and reduce the risk of high refund volumes. Whilst demand remained for many outdoor gardening products for the rest of the year, trading elsewhere reduced to more normalised levels from Summer onwards, and was supported further once we reopened our restaurants from 17
th
May 2021.
Christmas trading was strong and was supported greatly by our successful Christmas Events at each store.
The impact of Brexit has been minimal on the ongoing trading performance of the business in 2021. The disruption felt has been more administrative through additional regulation and paperwork, but more keenly felt by our suppliers due to initial chaos at the borders and delays in transportation of goods, whether from EU or Far East.
The business continues to manage cost inflation, which has soared in 2022 to date as a result of fuel and utility rate increases having a knock-on effect across all our cost inputs and supply network. This, along with the reintroduction of Business Rates from mid-2021 and the significant increase in wages due to annual National Living/Minimum Wage increases and the increase in National Insurance from April 2022, has made the ongoing trading environment even tougher for most businesses. The above naturally puts more pressure on profit generation albeit we have a history of managing in such tough times and protecting cash flows and will continue to do so whilst maintaining our very strong relationship with our bank.
The directors aim to ensure the company continues to produce sustained growth within its principal activities. The Company will ensure it continues to source products and deliver services that are attractive to its marketplace in order to ensure its continued profitability. The cost base of the Company continues to be closely managed in order to maintain profitability.
Overall, the directors believe the garden centre sector has proved very resilient versus other retail sectors over the last 2 years and provides the consumer with many critical products required during such a time and supports the ongoing demand for our products and services.
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WEBBS GARDEN CENTRES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
The directors remain positive about the business and its ability to identify opportunities to continue to trade successfully and manage our cashflows effectively in such challenging times.
Webbs continues to have a strong Balance Sheet even after such turbulent trading conditions in the last 2 years. Webbs has remained financially self-sufficient throughout the period and is in a strong cash flow position following a record year of sales and profit generation in 2021.
We have continued to invest in a number of capital projects to ensure the ongoing development of the business, its store estate and online platform. The net book value of tangible fixed assets has increased from £20.3m in 2020 to £20.6m in 2021. The expenditure on tangible fixed assets in 2021 was £946k (2020: £672k). The directors have decided to maintain the value of Freehold Land and Buildings at their Wychbold premises as at 2 January 2022, on a Fair Value basis.
The directors constantly monitor the risks and uncertainties facing the Company with particular reference to the exposure on exchange rates, liquidity, stocks, interest rates and credit risks. They are confident that there are suitable policies in place and there are no material risks and uncertainties which have not been considered.
The Company uses various financial instruments which include loans, cash and various items, such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Company’s operations.
The existence of these financial instruments exposes the Company to a number of financial risks, which are described in more detail below.
The main risks arising from the Company’s financial instruments are currency risk, interest rate risk, credit risk and liquidity risk. The directors review and agree policies for managing each of these risks and they are summarised below.
Currency Risk
The Company has exposure to translation and transaction foreign exchange risk through its supply chain. Transaction exposures are hedged, principally using forward currency contracts. Whilst the aim is to achieve an economic hedge the Company does not adopt an accounting policy of hedge accounting for these financial statements.
Liquidity Risk
The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by utilising related Company funds.
Interest Rate Risk
The Company finances its operations through a mixture of retained profits, related Company funds and borrowings. The Company has previously used base rate caps and swaps to manage its interest rate risk.
Credit Risk
The Company’s principal financial assets are stock. It does not have significant credit risk in relation to Trade Debtors due to the retail nature of the business. Its principal trade debtors relate to rental amounts due from tenants who occupy parts of the sites at Wychbold, Hagley and Cheltenham, which carries minimal risk due to contractual lease agreements in place and good covenance of tenants through estate management.
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WEBBS GARDEN CENTRES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
The directors monitor performance of the business using key performance indicators (KPI’s) both financial and non-financial. These are monitored at all levels of the business.
These include:
Sale units and value – monitored continually by customer, supplier, category and model range. Turnover has increased by 35% to £26.0 million in 2021 from £19.2 million last year.
Gross profit margin – raw material cost prices and currency rates are closely tracked. Gross profit margin percentage increased from 46.0% in 2020 to 47.5% in 2021, even though our restaurants were unable to trade for over 4 months of the year which drive higher margin Catering sales. This has been achieved through improvements in stock loss reduction and reduced promotional and clearance activity during the year.
Wage to sales ratios – total wages as a percentage of sales decreased from 23.2% in 2020 to 22.6% in 2021 including the furlough support received from the Government in both years.
Stock turn – as at 2 January 2022 stock was turning at 3.1 times per annum based on the previous 12 months cost of sales. This is in line with the previous year-end at the same stock turn rate even though we have carried over higher volumes of seasonal stock due to significant delays in overseas container deliveries towards the back end of 2021.
Customer numbers and footfall are tracked at all of our stores.
Cash flow targets – forecasts are established and reviewed weekly and monthly to ensure working capital is effectively managed.
Staff retention and wellbeing – monitored to ensure employee welfare is at the forefront of the business.
Customer service – levels of quality and performance are continually reviewed to maximise customer satisfaction.
The directors recognise that there are some serious environmental and local community challenges that come with running a business responsibly. Webbs is currently a long way from being a totally sustainable business but is taking many steps to get there. Practices such as recycling waste materials and controlling energy usage are now well established. The Company continues to investigate and invest in new energy saving technologies such as LED lighting and Solar Panels and are seeking to ensure that the large Wychbold site becomes self-sufficient in its energy generation and use in the future. Water conservation remains of paramount importance, and we benefit from rainwater harvesting in the irrigation of our retail areas.
This report was approved by the board on 29 June 2022
and signed on its behalf.
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WEBBS GARDEN CENTRES LIMITED
DIRECTORS' REPORT
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
The directors present their report and the financial statements for the 52 weeks ended 2 January 2022.
The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:
∙
select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙
make judgments and accounting estimates that are reasonable and prudent;
∙
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙
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 to 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' reports may differ from legislation in other jurisdictions.
The profit for the 52 weeks, after taxation, amounted to £
1,634,836
(2020:
£
403,681
)
.
Dividends of £261,765 (2020: £133,269) were declared in the year.
The directors who served during the 52 weeks were:
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WEBBS GARDEN CENTRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
The Company’s strategy remains one of steady investment in the estate, maintaining and growing revenue and the profit base and reducing net debt despite ongoing challenges such as Covid-19 compliance, significant cost inflation, Living Wage and National Insurance rises and increasing Regulatory compliance requirements (e.g. the introduction of Plastic Packaging Tax from April 2022). Focus for 2022 will be investment in IT infrastructure, developing and upgrading front and back-end EPOS, ERP & Hospitality systems throughout the Company, enabling more automation and productivity improvements to ensure we maintain and improve our customer and colleague experience both in store and online. We are also looking to invest in ways to become a more sustainable business, including submission of planning application for a solar panel field on our nursery land at Wychbold which we hope will be successful in the next 12 months.
Webbs Garden Centres Limited are committed to the development and improvement of all employees within the business. We believe that we can only improve as a whole if we continue to communicate regularly and receive feedback from all those involved in the business. Employees are kept well informed of the performance and objectives of the business through weekly meetings, monthly newsletters and bi-annual Director presentations and Chairman statements.
Employees have continued to play a key role in shaping the development of the business including ranging decisions and store layout following our refit programmes in all our stores. Employees are fully appraised and consulted on significant changes to company policy, including changes to our Covid-19 risk assessments and policies in line with government guidance in the last 12 months. Directors and senior management, whilst sited at our store in Wychbold, regularly discuss matters of concern and current interest with employees across all of our sites. We conduct an annual employee survey, through Great Places To Work, the findings of which help us shape our Company welfare and development strategy, as detailed below.
We introduced a more formalised Career Paths Document in 2018 and also further developed colleague training and career development pathways in 2019, to ensure we are supporting the development of all of our employees, no matter what stage of their careers with us. This includes a Specialist Training Guarantee open to all permanent Webbs employees, to gain a recognised formal qualification in their specialist areas. This is being used in employee appraisals to help set objectives and improve motivation and drive performance at all levels. We have recently invested in our HR team to enable us to focus more time on developing this career pathway and training programme across the business to drive performance levels and buy-in from all colleagues. We also run a Future Leaders Programme for all Webbs employees who are not already at Supervisor level or above and who would like to develop their leadership skills for the future.
Webbs Garden Centres Limited is an equal opportunities employer and actively recruits from all aspects of society. It is the company policy to promote an environment free from discrimination, harassment and victimisation, where everyone will receive equal rights regardless of gender, colour, ethnic origin, disability, age, marital status, sexual orientation or religion. All decisions relating to employment practices are based solely upon work criteria and individual merit.
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WEBBS GARDEN CENTRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Webbs Garden Centres Limited is a totally customer-focused business, all our decisions on strategy and future development are with our customers at the forefront of our thoughts. The majority of our customers are those who shop either at our stores or online via our website. Sales transactions with these retail customers are immediate, in that the customer pays for the goods they buy at the time of buying them. Our only debtors in relation to these retail customers relate to credit card or digital payment transactions which take approximately 2-3 days to clear in our bank account from the respective merchant providers. We only recognise these sales in our accounts once the stock has transferred ownership from us to the customer.
We very rarely undertake business to business transactions, although we do have a small number of wholesale customer accounts who pay within 30 days for the goods or services they receive.
Our only other customers are our tenants, who lease areas of our property at each of our stores for the purposes of their own retail trading activity. Our tenants pay us rental and service charges over the respective agreed contractual lease terms and these are invoiced and paid either monthly or quarterly depending on the tenant agreement in place.
Webbs Garden Centres Limited ensures it maintains very strong relationships with all of its suppliers, whether they relate to the supply of retail items for sale in our stores, or services and non-stock items and consumables. Our standard payment terms of agreement with our suppliers are End Of Month 60 days (“EOM60”) from date of invoice, although we have a variety of payment terms agreed and in place across our suppliers depending on the nature of the stock or service involved. We make weekly supplier payment runs and always pay our invoices on time unless we are awaiting credit notes being agreed with respective suppliers in turn.
Creditor days as at 2 January 2022 were 65 compared to 44 days at 3 January 2021. This significant variation is due to the timing and value of month-end payment runs at the year-end, as the majority of our supplier payments are made at the end of the calendar month, whereas our accounting periods are on a 4-4-5 basis. We also received a much higher volume of late large furniture container deliveries, with longer payment terms, towards the end of 2021 versus the previous year which has driven up this KPI.
People with disabilities have fair and full consideration for all job vacancies at Webbs Garden Centres Limited. The Company has a commitment to interview those people with disabilities who fulfil the minimum criteria for the individual role and endeavour to retain employees in the workforce if they become disabled during employment. Webbs Garden Centres Limited has an excellent record of working with local disabled employees to provide long-term employment opportunities within the business.
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WEBBS GARDEN CENTRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
The Company’s energy consumption for the 52 weeks to 2 January 2022 was 1,850,639 kWh across its 3 sites. This equates to total greenhouse gas emissions of 401,617 kgs of Carbon Dioxide during that period. This is calculated by taking the sum of all electricity and gas usage in kWh from the respective meters at each site which are generated by Webbs Garden Centres Limited and excludes usage by our Tenants onsite.
We also generated greenhouse gas emissions of approximately 117,000 kgs of Carbon Dioxide from fuel consumption by our own transport fleet during the period. This reflects us having our own fleet of 5 Lorries/Vans to deliver goods direct to customers from all 3 stores to significantly reduce the use of couriers, as well as the significant growth in sales driving increased order delivery volumes. This also reflects more of our employees undertaking business travel due to the relaxation of Covid-19 related lockdowns from May 2021 onwards compared to the previous 12-month period, such as visiting trade shows and suppliers and getting around our existing store portfolio which were previously restricted during 2020 and the first half of 2021. However, we are mindful of the environmental impact that travel can have so our employees have continued to engage in video conferencing and digital communication methods to minimise the amount of travel required, both in the UK and overseas.
Please refer to the section under ‘Environment’ in the Strategic Report for further information on the Company’s Environmental and Sustainability strategy and measures which Webbs Garden Centres Limited has undertaken and is considering to improve energy efficiency in the period and in future, including new radiant heaters installed within our 3 stores in 2020 and future investment in more solar panels and LED lighting in the next 12-24 months which would result in Webbs being almost entirely self-sufficient at its Wychbold site once this has been implemented.
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WEBBS GARDEN CENTRES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
There have been no significant events affecting the Company since the year end.
The auditors, Bishop Fleming LLP, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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WEBBS GARDEN CENTRES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEBBS GARDEN CENTRES LIMITED
We have audited the financial statements of Webbs Garden Centres Limited (the 'Company') for the 52 weeks ended 2 January 2022, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity
and the related notes, 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).
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' 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 financial statements are 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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
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WEBBS GARDEN CENTRES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEBBS GARDEN CENTRES LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Strategic report and the Directors' report for the financial 52 weeks for which the financial statements are prepared is consistent with the financial statements; and
∙
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the 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 or the Directors' report.
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WEBBS GARDEN CENTRES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEBBS GARDEN CENTRES LIMITED (CONTINUED)
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 Auditors' 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.
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:
Identifying and assessing potential risks related to irregularities The procedures undertaken in order to identify and assess risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, are as follows: • We have considered the nature of the industry and sector, control environment and business performance; • We have considered the results of our enquiries of management including the Finance team and Director about their own identification and assessment of the risk of irregularities; • For any matters identified we have obtained and reviewed the company's documentation of their policies and procedures relating to; - Identifying, evaluating and complying with laws and regulations whether they were aware of any instances of non-compliance; - Detecting and responding to the risk of fraud and whether they have knowledge of actual, suspected or alleged fraud; and - The internal controls established to mitigate the risks of fraud or non-compliance with laws and regulations. • We have considered the matters discussed among the audit engagement team, including internal tax specialists regarding how and where fraud might occur in the financial statements and potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: • Revenue recognition; and • Accounting estimates. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006 and tax legislation.
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WEBBS GARDEN CENTRES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEBBS GARDEN CENTRES LIMITED (CONTINUED)
In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These include data protection regulations, health and safety regulations and employment legislation. Audit response to risks identified As a result of performing the above procedures, we have identified revenue recognition and accounting estimates as key audit matters related to the potential risk of fraud. Our procedures to respond to risks identified included the following: • Documenting and validating the control environment for income and debtors and carrying out walkthrough testing; • Undertaking substantive sample-based testing or proof in total calculations on all material revenue streams to ensure revenue has been recognised appropriately and accurately; • Considering manual income journals as part of our work on fraud risks documented above; • Reviewing the financial statement disclosures and testing to supporting documentation; • Enquiring of management concerning actual and potential litigation claims; • Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement; • Reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and • In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. 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 an 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 the events and transactions reflected in the financial statements, the less likely we would become aware of it.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' report.
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WEBBS GARDEN CENTRES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF WEBBS GARDEN CENTRES LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
1-3 College Yard
WR1 2LB
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WEBBS GARDEN CENTRES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
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WEBBS GARDEN CENTRES LIMITED
REGISTERED NUMBER:
00777596
STATEMENT OF FINANCIAL POSITION
AS AT
2 JANUARY 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 20 to 43 form part of these financial statements.
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WEBBS GARDEN CENTRES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE 52 WEEKS ENDED
2 JANUARY 2022
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WEBBS GARDEN CENTRES LIMITED
STATEMENT OF CASH FLOWS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
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WEBBS GARDEN CENTRES LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Page 18
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WEBBS GARDEN CENTRES LIMITED
ANALYSIS OF NET DEBT
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Webbs Garden Centres Limited is a private company, limited by shares, registered in England and Wales. The registered office is Worcester Road, Wychbold, Droitwich, Worcestershire, WR9 0DG.
The company registration number is: 00777596. The presentation currency of the financial statements is the Pound Sterling (£).
2.
ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Directors have considered the implications of external factors (such as COVID-19) in relation to the risk of the business continuing to operate as a going concern, and have concluded that there are sufficient cash resources in place to trade through the current pandemic. They have not identified any significant issues that are expected to affect the company's ability to continue as a going concern.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
2.
ACCOUNTING POLICIES (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
2.
ACCOUNTING POLICIES (continued)
Land is not depreciated. Depreciation on other assets is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided at the following annual rates in order to write off each asset over the estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
2.
ACCOUNTING POLICIES (continued)
The Company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
2.
ACCOUNTING POLICIES (continued)
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
2.
ACCOUNTING POLICIES (continued)
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
estimates. Critical areas of judgement: Depreciation and amortisation The difference between the purchase price and estimated residual value of a fixed asset which has a limited useful economic life should be allocated on a systematic basis to each accounting period during the useful life of the asset. The depreciation/amortisation charge for each period should be recognised as an expense in the profit and loss account unless it is permitted to be included in the carrying amount of another asset. For each major class of depreciable asset the method of depreciation/amortisation and the or depreciation/amortisation rates have been disclosed.
All turnover arose within the United Kingdom and related to the one principal activity of the company.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Page 28
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Page 29
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
12.
TAXATION (CONTINUED)
Following announcements made in the March 2021 Budget, the main rate of corporation tax is expected to increase to 25% from 1 April 2023. This was enacted on 10 June 2021.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Page 31
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Page 32
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
15.
TANGIBLE FIXED ASSETS (CONTINUED)
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
15.
TANGIBLE FIXED ASSETS (CONTINUED)
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
The 2020 valuations were made by Savills, on an open market value for existing use basis.
A property valuation was carried out in January 2021 by Savills which showed the value of the investment property being valued at an amount in excess of the carrying value currently used in the financial statements above. However, the directors have decided not to increase the value of these investment properties as at 2 January 2022 due to any potential impacts that may arise on property valuations as the company trades through the COVID pandemic. This will be reviewed again in 2022.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Page 36
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Page 37
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Page 38
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Page 39
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Page 40
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Page 41
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss account
The company operates a defined contribution pension scheme the assets of which are held in independently administered funds. The pension cost charge represents contributions payable by the company and amounted to £235,690 (2020: £195,584).
The company had no outstanding liabilites at year end (2020: £Nil) in respect of the defined contribution pension scheme.
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WEBBS GARDEN CENTRES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEKS ENDED 2 JANUARY 2022
The following advances and credits to a director subsisted during the years ended 2 January 2022 and 3 January 2021.
The company is controlled by majority shareholder Edward Alexander Broughton Webb.
Page 43
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