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REGISTERED NUMBER: 01421946 (England and Wales) |
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MELDONGREEN LIMITED |
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Group Strategic Report, |
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Report of the Directors and |
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Consolidated Financial Statements |
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For The Year Ended 28 February 2017 |
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REGISTERED NUMBER: 01421946 (England and Wales) |
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MELDONGREEN LIMITED |
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Group Strategic Report, |
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Report of the Directors and |
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Consolidated Financial Statements |
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For The Year Ended 28 February 2017 |
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MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Contents of the Consolidated Financial Statements |
For The Year Ended 28 February 2017 |
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Page |
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Company Information | 1 |
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Group Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 6 |
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Consolidated Statement of Comprehensive Income | 8 |
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Consolidated Balance Sheet | 9 |
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Company Balance Sheet | 10 |
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Consolidated Statement of Changes in Equity | 11 |
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Company Statement of Changes in Equity | 12 |
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Consolidated Cash Flow Statement | 13 |
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Notes to the Consolidated Cash Flow Statement | 14 |
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Notes to the Consolidated Financial Statements | 15 |
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MELDONGREEN LIMITED |
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Company Information |
For The Year Ended 28 February 2017 |
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DIRECTORS: |
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SECRETARIES: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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BANKERS: | Clydesdale Bank Plc |
30 Lombard Street |
London |
EC3V 9BB |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Group Strategic Report |
For The Year Ended 28 February 2017 |
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The directors present their strategic report of the company and the group for the year ended 28 February 2017. |
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REVIEW OF BUSINESS |
The profit and loss account is set out on page 6 and shows a drop in turnover to £7,488,914 (2016: £7,776,916), |
however, we did see an increase in profit in the year. The increase in profit to £297,630 (2016: £145,389) was partly |
down to the profit on the sale of a property in the period and partly due to tighter cost controls. |
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The impact of Brexit has been felt across the business, with customers tending to be more cautious with their spending |
on higher value purchases, and we expect to see a continued tighter trading environment for the foreseeable future. The |
movement in the value of the Pound against key Dollar and Euro import currencies have put pressures on our margins |
and we have had to work hard to rebuild margin performance without a corresponding impact on sales. Further |
pressures on staff costs from increases in the minimum wage continue to challenge our cost base. In 2016/17 we found a |
better balance between driving sales through advertising, increasing our returns per Pound of advertising spend. As ever |
the management team strive to innovate and improve our retail standards in order that our business continues to be in the |
Premier League for the industry. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The market for the supply of aquatic products and livestock remains highly competitive in the UK, as does the garden |
centre market. The company seeks to manage the risk of losing customers to key competitors by the provision of its |
expertise and knowledge of products and their uses to its customers, efficient handling of customer enquiries and by |
maintaining strong relationships with customers. |
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Each site is expensive to operate and to maintain. Key operating costs are continually monitored with budgets being set |
for each cost category at each site. |
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This monitoring process continues to drive the business forward and we continually refine this process during the year. |
Capital projects are potentially available, however, the business needs to prove it can generate sufficient free cash flows |
to be able to sustain such projects in the future. Greater review of potential capital projects will take place with selection |
based upon those which will deliver the best benefits for the business only. |
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The company monitors cash flow as part of its day to day control procedures, the Finance Director considers cash flow |
projections on an ongoing basis and ensures that appropriate facilities are available to be drawn upon as necessary. |
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MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Group Strategic Report |
For The Year Ended 28 February 2017 |
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OUTLOOK |
The Directors continue to keep the performance of all sites under review. Following a period of improving trading |
conditions post the recession, 2016/17 saw us experience the fallout from the Brexit vote. We will continue to invest in |
our business to improve our retail presentation, and our Gravesend site has relocated within its host garden centre in late |
2017, allowing us to refresh the whole feel of the store and to develop our customer experience further through some |
step change rather than a gradual approach used in our other sites. We will continue to review advertising spend |
balancing targeted spend on key geographic areas as well as driving traffic to our website through search engine |
optimisation. We carry on our investment in our two websites; for the Swallow Aquatics and Mill Race brands. The |
company is confident that it will continue to operate cost effectively and to more than service its debt and interest |
requirements. |
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Daily cash flow is being closely monitored paying particular attention to stock holding and setting continued targets for |
stock reduction. As a result, the business is much more readily living within its facility and has created headroom to live |
through the quieter periods. |
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ON BEHALF OF THE BOARD: |
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MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Report of the Directors |
For The Year Ended 28 February 2017 |
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The directors present their report with the financial statements of the company and the group for the year ended |
28 February 2017. |
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PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of a parent company, providing expertise, finance, |
goods at wholesale prices and other services in line with those normally provided by a parent to its subsidiaries. |
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All of the company's subsidiaries continued their principle activity, being that of retail Aqua-Life and Fish Nursery |
Centres. |
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DIVIDENDS |
No dividends will be distributed for the year ended 28 February 2017. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2016 to the date of this report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
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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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the |
directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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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. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the |
company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the |
company and the group 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 the group and hence for taking reasonable |
steps for the prevention and detection of fraud and other irregularities. |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act |
2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as |
a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are |
aware of that information. |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Report of the Directors |
For The Year Ended 28 February 2017 |
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AUDITORS |
The auditors, Wilkins Kennedy LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditors to the Members of |
Meldongreen Limited |
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We have audited the financial statements of Meldongreen Limited for the year ended 28 February 2017 on pages eight to |
thirty. The financial reporting framework that has been applied in their preparation is 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'. |
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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 a Report of the Auditors 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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Respective responsibilities of directors and auditors |
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Scope of the audit of the financial statements |
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give |
reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. |
This includes an assessment of: whether the accounting policies are appropriate to the group's and the parent company's |
circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting |
estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the |
financial and non-financial information in the Group Strategic Report and the Report of the Directors to identify material |
inconsistencies with the audited financial statements and to identify any information that is apparently materially |
incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. |
If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our |
report. |
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Opinion on financial statements |
In our opinion the financial statements: |
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give a true and fair view of the state of the group's and of the parent company's affairs as at 28 February 2017 and of
the group's 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. |
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Opinion on other matter prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of our audit, the information given in the Group Strategic |
Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent |
with the financial statements, and has been prepared in accordance with applicable legal requirements. In the light of the |
knowledge and understanding of the group and the parent company and its environment, we have not identified any |
material misstatements in the Group Strategic Report or the Report of the Directors. |
Report of the Independent Auditors to the Members of |
Meldongreen Limited |
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Matters on which we are required to report by exception |
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: |
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adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not
been received from branches not visited by us; or |
- | the parent company 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. |
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for and on behalf of
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Statutory Auditor |
Chartered Accountants |
1-5 Nelson Street |
Southend on Sea |
Essex |
SS1 1EG |
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MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Consolidated Statement of Comprehensive Income |
For The Year Ended 28 February 2017 |
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2017 | 2016 |
Notes | £ | £ |
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TURNOVER | 7,488,914 | 7,776,916 |
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Cost of sales | 4,229,359 | 4,219,741 |
GROSS PROFIT | 3,259,555 | 3,557,175 |
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Administrative expenses | 2,882,130 | 3,314,707 |
377,425 | 242,468 |
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Other operating income | 10,200 | 8,700 |
OPERATING PROFIT | 4 | 387,625 | 251,168 |
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Interest payable and similar expenses | 5 | 89,995 | 105,779 |
PROFIT BEFORE TAXATION | 297,630 | 145,389 |
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Tax on profit | 6 | 47,530 | 16,700 |
PROFIT FOR THE FINANCIAL YEAR |
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OTHER COMPREHENSIVE INCOME |
Revaluation of freehold property | - | 876,245 |
Income tax relating to other comprehensive
income |
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(120,730 |
) |
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX |
- |
755,515 |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
250,100 |
884,204 |
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Profit attributable to: |
Owners of the parent | 250,100 | 128,689 |
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Total comprehensive income attributable to: |
Owners of the parent | 250,100 | 884,204 |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Consolidated Balance Sheet |
28 February 2017 |
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2017 | 2016 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 14,429 | 20,949 |
Tangible assets | 10 | 5,576,959 | 5,653,098 |
Investments | 11 | - | - |
5,591,388 | 5,674,047 |
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CURRENT ASSETS |
Stocks | 12 | 1,906,948 | 1,968,786 |
Debtors | 13 | 301,236 | 281,364 |
Cash at bank and in hand | 40,551 | 53,022 |
2,248,735 | 2,303,172 |
CREDITORS |
Amounts falling due within one year | 14 | 2,060,312 | 2,348,305 |
NET CURRENT ASSETS/(LIABILITIES) | 188,423 | (45,133 | ) |
TOTAL ASSETS LESS CURRENT
LIABILITIES |
5,779,811 |
5,628,914 |
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CREDITORS |
Amounts falling due after more than one
year |
15 |
(1,963,012 |
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(2,074,631 |
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PROVISIONS FOR LIABILITIES | 20 | (145,937 | ) | (133,521 | ) |
NET ASSETS | 3,670,862 | 3,420,762 |
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CAPITAL AND RESERVES |
Called up share capital | 21 | 100,000 | 100,000 |
Revaluation reserve | 3,087,983 | 3,087,983 |
Retained earnings | 482,879 | 232,779 |
SHAREHOLDERS' FUNDS | 3,670,862 | 3,420,762 |
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The financial statements were approved by the Board of Directors on 4 November 2017 and were signed on its behalf |
by: |
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N P Seaby - Director |
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MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Company Balance Sheet |
28 February 2017 |
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2017 | 2016 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
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Tangible assets | 10 |
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Investments | 11 |
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CURRENT ASSETS |
Stocks | 12 |
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Debtors | 13 |
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CREDITORS |
Amounts falling due within one year | 14 |
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NET CURRENT LIABILITIES | ( |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
15 |
( |
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( |
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PROVISIONS FOR LIABILITIES | 20 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 21 |
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Revaluation reserve |
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Retained earnings | ( |
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SHAREHOLDERS' FUNDS |
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Company's profit for the financial year | 136,372 | 387,657 |
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The financial statements were approved by the Board of Directors on
by: |
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MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Consolidated Statement of Changes in Equity |
For The Year Ended 28 February 2017 |
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Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
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Balance at 1 March 2015 | 100,000 | 136,590 | 2,332,468 | 2,569,058 |
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Changes in equity |
Dividends | - | (32,500 | ) | - | (32,500 | ) |
Total comprehensive income | - | 128,689 | 755,515 | 884,204 |
Balance at 29 February 2016 | 100,000 | 232,779 | 3,087,983 | 3,420,762 |
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Changes in equity |
Total comprehensive income | - | 250,100 | - | 250,100 |
Balance at 28 February 2017 | 100,000 | 482,879 | 3,087,983 | 3,670,862 |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Company Statement of Changes in Equity |
For The Year Ended 28 February 2017 |
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Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
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Balance at 1 March 2015 |
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( |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 29 February 2016 |
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( |
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Changes in equity |
Total comprehensive income | - |
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Balance at 28 February 2017 |
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( |
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MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Consolidated Cash Flow Statement |
For The Year Ended 28 February 2017 |
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2017 | 2016 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 43,750 | 409,336 |
Interest paid | (85,605 | ) | (102,281 | ) |
Interest element of hire purchase payments
paid |
(4,390 |
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(3,498 |
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Tax paid | (11,026 | ) | (36,466 | ) |
Net cash from operating activities | (57,271 | ) | 267,091 |
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Cash flows from investing activities |
Purchase of intangible fixed assets | - | (9,000 | ) |
Purchase of tangible fixed assets | (117,901 | ) | (65,340 | ) |
Sale of tangible fixed assets | 345,598 | 791 |
Net cash from investing activities | 227,697 | (73,549 | ) |
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Cash flows from financing activities |
New loans in year | - | 300,000 |
Loan repayments in year | (129,431 | ) | (235,246 | ) |
Capital repayments in year | 70,328 | (9,860 | ) |
Amount withdrawn by directors | (106,223 | ) | (199,903 | ) |
Equity dividends paid | - | (32,500 | ) |
Net cash from financing activities | (165,326 | ) | (177,509 | ) |
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Increase in cash and cash equivalents | 5,100 | 16,033 |
Cash and cash equivalents at beginning of
year |
2 |
(340,341 |
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(356,374 |
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Cash and cash equivalents at end of year | 2 | (335,241 | ) | (340,341 | ) |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Notes to the Consolidated Cash Flow Statement |
For The Year Ended 28 February 2017 |
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1. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2017 | 2016 |
£ | £ |
Profit before taxation | 297,630 | 145,389 |
Depreciation charges | 151,552 | 142,852 |
(Profit)/loss on disposal of fixed assets | (296,590 | ) | 804 |
Finance costs | 89,995 | 105,779 |
242,587 | 394,824 |
Decrease/(increase) in stocks | 61,838 | (235,529 | ) |
Decrease/(increase) in trade and other debtors | 86,195 | (70,054 | ) |
(Decrease)/increase in trade and other creditors | (346,870 | ) | 320,095 |
Cash generated from operations | 43,750 | 409,336 |
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2. | CASH AND CASH EQUIVALENTS |
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The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these |
Balance Sheet amounts: |
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Year ended 28 February 2017 |
28/2/17 | 1/3/16 |
£ | £ |
Cash and cash equivalents | 40,551 | 53,022 |
Bank overdrafts | (375,792 | ) | (393,363 | ) |
(335,241 | ) | (340,341 | ) |
Year ended 29 February 2016 |
29/2/16 | 1/3/15 |
£ | £ |
Cash and cash equivalents | 53,022 | 53,695 |
Bank overdrafts | (393,363 | ) | (410,069 | ) |
(340,341 | ) | (356,374 | ) |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Notes to the Consolidated Financial Statements |
For The Year Ended 28 February 2017 |
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1. | STATUTORY INFORMATION |
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Meldongreen Limited is a
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registered number and registered office address can be found on the General Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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In the opinion of the directors, it remains appropriate to continue to adopt the going concern basis of accounting. |
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Basis of consolidation |
The consolidated profit and loss account and balance sheet include the accounts of the company and its |
subsidiary undertakings made up to 28 February 2017. The results of subsidiaries sold or acquired are included |
in the profit and loss account up to, or from the date control passes. Intra-group sales and profits are eliminated |
fully on consolidation. |
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Significant judgements and estimates |
The preparation of financial statements requires management 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. |
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The estimates underlying assumptions are reviewed on a continuing 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. |
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The key judgements and sources of estimation uncertainty that have a significant effect on the amounts |
recognised in the financial statements are described below. |
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Revenue recognition |
A key judgement in revenue recognition is to distinguish whether the goods have been dispatched and therefore |
to determine whether the revenue should be recognised. Invoices are raised at point of sale and monitored to |
ensure cut-off procedures are followed correctly. |
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Stock valuations |
The group considers what value stock should be carried at given the varying type of stock offered. This is done |
by taking into accounts purchase price from supplier and costs of transit for imported items. |
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Going concern |
The directors confirm that the financial statements have been prepared on a going concern basis. Having paid |
particular attention to the period of a year from our approval of these financial statements, the directors have |
satisfied themselves that the company will have adequate financial resources so that it is appropriate to adopt this |
basis. |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
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2. | ACCOUNTING POLICIES - continued |
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Turnover |
Turnover represents net invoiced sales of goods, excluding value added tax. Turnover is recognised when the |
goods are physically collected by the customer. |
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Business combinations and goodwill |
Acquisitions of subsidiaries and businesses are accounted for using the purchase method. The cost of the |
business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, |
liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the |
acquiree plus costs directly attributable to the business combination. |
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Any excess of the cost of the business combination over the acquirer's interest in the net fair value of the |
identifiable assets and liabilities is recognised as goodwill. If the net fair value of the identifiable assets and |
liabilities exceeds the cost of the business combination the excess is recognised separately on the face of the |
consolidated statement of financial position immediately below goodwill. |
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Goodwill is written off to the profit and loss account over its useful economic life. Where net assets in subsidiary |
companies do not support the value of goodwill then this is written off to the profit and loss account |
immediately. |
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All goodwill currently held has been fully amortised. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost |
less any accumulated amortisation and any accumulated impairment losses. |
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Tangible fixed assets |
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Freehold property | - |
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Improvements to property | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Motor vehicles | - |
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At each reporting date, fixed assets are reviewed to determine whether there is an indication that those assets |
have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any |
affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, |
the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised |
immediately in profit or loss. |
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If an impairment subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its |
recoverable amount, but not in excess of the amount that would have been determined had no impairment loss |
been recognised for the asset in prior years. A reversal of an impairment is recognised immediately in profit or |
loss. |
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Stocks |
Stocks are valued at the lower of cost and net realisable value. Cost is determined on a first in first out basis. Net |
realisable value represents estimated selling price less costs to complete and sell. Provision is made for slow |
moving, obsolete or damaged stock where the net realisable value is less than cost. |
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MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
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Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of |
Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or |
directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance |
sheet date. |
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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. |
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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. |
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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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme |
are charged to profit or loss in the period to which they relate. |
|
Employee benefits |
Short term employee benefits, including holiday entitlement and other non-monetary benefits, and contributions |
to defined contribution plans are recognised as an expense in the period in which they are incurred. |
|
The company recognises an accrual for accumulated annual leave accrued by employees as a result of services |
rendered in the current period for which employees can carry forward and use within the next year. The accrual |
is measured at the salary cost of the respective employee in relation to the period of absence. |
|
Trade and other receivables |
Trade and other receivables are measured at transaction price less any impairment unless the arrangement |
constitutes a financing transaction in which case the transaction is measured at the present value of future |
receipts discounted at the prevailing market rate of interest. Loans are initially measured at fair value and are |
subsequently measured at amortised cost using the effective interest rate method less any impairment. |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
2. | ACCOUNTING POLICIES - continued |
|
Trade and other payables |
Trade and other payables are measured at transaction price unless the arrangement constitutes a financing |
transaction in which case the transaction is measured at present value of future payments discounted at prevailing |
market rate of interest. Other financial liabilities are initially measured at fair value net of their transaction costs. |
They are subsequently measured at amortised cost using the effective interest method. |
|
3. | EMPLOYEES AND DIRECTORS |
2017 | 2016 |
£ | £ |
Wages and salaries |
|
|
Social security costs |
|
|
Other pension costs |
|
|
|
|
The average monthly number of employees during the year was as follows: |
2017 | 2016 |
|
Management | 3 | 10 |
|
The average number of employees by undertakings that were proportionately consolidated during the year was |
139 . |
|
Key management includes only directors and therefore no separate disclosure of key management remuneration |
will be made. |
|
2017 | 2016 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
|
The number of directors to whom retirement benefits were accruing was as follows: |
|
Money purchase schemes |
|
|
|
4. | OPERATING PROFIT |
|
The operating profit is stated after charging/(crediting): |
|
2017 | 2016 |
£ | £ |
Hire of plant and machinery |
|
|
Depreciation - owned assets |
|
|
Depreciation - assets on hire purchase contracts |
|
|
(Profit)/loss on disposal of fixed assets | ( |
) |
|
Computer software amortisation |
|
|
Auditors' remuneration |
|
|
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2017 | 2016 |
£ | £ |
Bank interest and charges |
|
|
Hire purchase |
|
|
|
|
|
6. | TAXATION |
|
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2017 | 2016 |
£ | £ |
Current tax: |
UK corporation tax |
|
|
|
Deferred tax |
|
|
Tax on profit |
|
|
|
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is |
explained below: |
|
2017 | 2016 |
£ | £ |
Profit before tax |
|
|
Profit multiplied by the standard rate of corporation tax in the UK of
(2016 - |
|
|
|
Effects of: |
Expenses not deductible for tax purposes |
|
|
Income not taxable for tax purposes | ( |
) |
|
Depreciation in excess of capital allowances | - |
|
Utilisation of tax losses |
|
( |
) |
Rents received | 48,840 | - |
Deferred tax | 12,416 | 5,674 |
Capital gains | 33,663 | - |
Total tax charge | 47,530 | 16,700 |
|
Tax effects relating to effects of other comprehensive income |
|
There were no tax effects for the year ended 28 February 2017. |
|
2016 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of freehold property |
|
(120,730 | ) | 755,515 |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
7. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
|
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not |
presented as part of these financial statements. |
|
|
8. | DIVIDENDS |
2017 | 2016 |
£ | £ |
Interim |
|
|
|
9. | INTANGIBLE FIXED ASSETS |
|
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 March 2016 |
and 28 February 2017 |
|
|
|
AMORTISATION |
At 1 March 2016 |
|
|
|
Amortisation for year |
|
|
|
At 28 February 2017 |
|
|
|
NET BOOK VALUE |
At 28 February 2017 |
|
|
|
At 29 February 2016 |
|
|
|
|
Company |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 March 2016 |
and 28 February 2017 |
|
|
|
AMORTISATION |
At 1 March 2016 |
|
|
|
Amortisation for year |
|
|
|
At 28 February 2017 |
|
|
|
NET BOOK VALUE |
At 28 February 2017 |
|
|
|
At 29 February 2016 |
|
|
|
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
10. | TANGIBLE FIXED ASSETS |
|
Group |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2016 | 4,235,390 | 1,434,717 | 322,667 |
Additions | - | 1,410 | 19,108 |
Disposals | (92,000 | ) | - | - |
At 28 February 2017 | 4,143,390 | 1,436,127 | 341,775 |
DEPRECIATION |
At 1 March 2016 | 220,107 | - | 302,109 |
Charge for year | 83,634 | - | 7,790 |
Eliminated on disposal | (43,393 | ) | - | - |
At 28 February 2017 | 260,348 | - | 309,899 |
NET BOOK VALUE |
At 28 February 2017 | 3,883,042 | 1,436,127 | 31,876 |
At 29 February 2016 | 4,015,283 | 1,434,717 | 20,558 |
|
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2016 | 1,194,603 | 114,273 | 7,301,650 |
Additions | 29,233 | 68,150 | 117,901 |
Disposals | (8,500 | ) | - | (100,500 | ) |
At 28 February 2017 | 1,215,336 | 182,423 | 7,319,051 |
DEPRECIATION |
At 1 March 2016 | 1,020,763 | 105,573 | 1,648,552 |
Charge for year | 41,877 | 11,731 | 145,032 |
Eliminated on disposal | (8,099 | ) | - | (51,492 | ) |
At 28 February 2017 | 1,054,541 | 117,304 | 1,742,092 |
NET BOOK VALUE |
At 28 February 2017 | 160,795 | 65,119 | 5,576,959 |
At 29 February 2016 | 173,840 | 8,700 | 5,653,098 |
|
The Freehold Properties were revalued on the basis of an open market valuation for existing use in October 2015 |
by Messrs. Quinton Smith, Chartered Surveyors, London. The directors are of the opinion that the accounting |
policy in place gives a realistic estimate of the current valuation for existing use. |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
10. | TANGIBLE FIXED ASSETS - continued |
|
Group |
|
Cost or valuation at 28 February 2017 is represented by: |
|
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
Valuation in 2003 | 1,222,752 | - | - |
Valuation in 2007 | 373,535 | - | - |
Valuation in 2011 | (108,524 | ) | - | - |
Cost | 2,655,627 | 1,436,127 | 341,775 |
4,143,390 | 1,436,127 | 341,775 |
|
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
Valuation in 2003 | - | - | 1,222,752 |
Valuation in 2007 | - | - | 373,535 |
Valuation in 2011 | - | - | (108,524 | ) |
Cost | 1,215,336 | 182,423 | 5,831,288 |
1,215,336 | 182,423 | 7,319,051 |
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Improvements | Fixtures |
to | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 March 2016 | 35,970 | 1,889 | 48,451 | - | 86,310 |
Additions | - | 12,995 | - | 68,150 | 81,145 |
Transfer to ownership | - | (1,889 | ) | (36,314 | ) | - | (38,203 | ) |
At 28 February 2017 | 35,970 | 12,995 | 12,137 | 68,150 | 129,252 |
DEPRECIATION |
At 1 March 2016 | - | 1,024 | 34,493 | - | 35,517 |
Charge for year | - | 3,248 | - | 11,358 | 14,606 |
Transfer to ownership | - | (1,024 | ) | (28,424 | ) | - | (29,448 | ) |
At 28 February 2017 | - | 3,248 | 6,069 | 11,358 | 20,675 |
NET BOOK VALUE |
At 28 February 2017 | 35,970 | 9,747 | 6,068 | 56,792 | 108,577 |
At 29 February 2016 | 35,970 | 865 | 13,958 | - | 50,793 |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
10. | TANGIBLE FIXED ASSETS - continued |
|
Company |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2016 |
|
|
|
Additions |
|
|
|
Disposals | ( |
) |
|
|
At 28 February 2017 |
|
|
|
DEPRECIATION |
At 1 March 2016 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal | ( |
) |
|
|
At 28 February 2017 |
|
|
|
NET BOOK VALUE |
At 28 February 2017 |
|
|
|
At 29 February 2016 |
|
|
|
|
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 March 2016 |
|
|
|
Additions |
|
|
|
Disposals | ( |
) |
|
( |
) |
At 28 February 2017 |
|
|
|
DEPRECIATION |
At 1 March 2016 |
|
|
|
Charge for year |
|
|
|
Eliminated on disposal | ( |
) |
|
( |
) |
At 28 February 2017 |
|
|
|
NET BOOK VALUE |
At 28 February 2017 |
|
|
|
At 29 February 2016 |
|
|
|
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
10. | TANGIBLE FIXED ASSETS - continued |
|
Company |
|
Cost or valuation at 28 February 2017 is represented by: |
|
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
Valuation in 2003 | 1,222,752 | - | - |
Valuation in 2007 | 373,535 | - | - |
Valuation in 2011 | (108,524 | ) | - | - |
Cost | 2,655,627 | 1,436,127 | 341,775 |
4,143,390 | 1,436,127 | 341,775 |
|
Fixtures |
and | Motor |
fittings | vehicles | Totals |
£ | £ | £ |
Valuation in 2003 | - | - | 1,222,752 |
Valuation in 2007 | - | - | 373,535 |
Valuation in 2011 | - | - | (108,524 | ) |
Cost | 1,215,336 | 182,423 | 5,831,288 |
1,215,336 | 182,423 | 7,319,051 |
|
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Improvements | Fixtures |
to | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 March 2016 |
|
|
|
|
|
Additions |
|
|
|
|
|
Transfer to ownership | - | (1,889 | ) | (36,314 | ) | - | (38,203 | ) |
At 28 February 2017 |
|
|
|
|
|
DEPRECIATION |
At 1 March 2016 |
|
|
|
|
|
Charge for year |
|
|
|
|
|
Transfer to ownership | - | (1,024 | ) | (28,424 | ) | - | (29,448 | ) |
At 28 February 2017 |
|
|
|
|
|
NET BOOK VALUE |
At 28 February 2017 |
|
|
|
|
|
At 29 February 2016 |
|
|
|
|
|
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
11. | FIXED ASSET INVESTMENTS |
|
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 March 2016 |
and 28 February 2017 |
|
NET BOOK VALUE |
At 28 February 2017 |
|
At 29 February 2016 |
|
|
The group or the company's investments at the Balance Sheet date in the share capital of companies include the |
following: |
|
Subsidiaries |
|
|
Registered office: 1 Nelson Street, Southend-on-Sea |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2017 | 2016 |
£ | £ |
Aggregate capital and reserves |
|
|
Profit/(loss) for the year |
|
( |
) |
|
|
Registered office: 1 Nelson Street, Southend-on-Sea |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2017 | 2016 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
(Loss)/profit for the year | ( |
) |
|
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
11. | FIXED ASSET INVESTMENTS - continued |
|
|
Registered office: 1 Nelson Street, Southend-on-Sea |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2017 | 2016 |
£ | £ |
Aggregate capital and reserves |
|
|
Profit/(loss) for the year |
|
( |
) |
|
|
Registered office: 1 Nelson Street, Southend-on-Sea |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2017 | 2016 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
|
|
The company owns 100% of the issued share capital of Swallow Aquatics (Rayleigh) Limited, Swallow Aquatics |
(Harling) Limited, Swallow Aquatics (Kent) Limited and Swallow Aquatics (Colchester) Limited. All these |
companies are incorporated in England and Wales. |
|
12. | STOCKS |
|
Group | Company |
2017 | 2016 | 2017 | 2016 |
£ | £ | £ | £ |
Stocks | 1,906,948 | 1,968,786 |
|
|
|
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
Group | Company |
2017 | 2016 | 2017 | 2016 |
£ | £ | £ | £ |
Trade debtors | 22,851 | 14,582 |
|
|
Amounts owed by group undertakings | - | - |
|
|
Other debtors | 172,318 | 266,782 |
|
|
Directors' current accounts | 106,067 | - | 106,067 | - |
301,236 | 281,364 |
|
|
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
|
Group | Company |
2017 | 2016 | 2017 | 2016 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 670,319 | 641,393 |
|
|
Hire purchase contracts (see note 17) | 18,979 | 12,960 |
|
|
Trade creditors | 949,731 | 1,285,709 |
|
|
Amounts owed to group undertakings | - | - |
|
|
Tax | 35,114 | 11,026 |
|
|
Social security and other taxes | 28,605 | 32,115 |
|
|
VAT | 122,893 | 155,121 | 122,893 | 155,121 |
Other creditors | 197,669 | 181,150 |
|
|
Directors' current accounts | - | 156 | - | 156 |
Accruals and deferred income | 37,002 | 28,675 |
|
|
2,060,312 | 2,348,305 |
|
|
|
15. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
|
Group | Company |
2017 | 2016 | 2017 | 2016 |
£ | £ | £ | £ |
Bank loans (see note 16) | 1,895,927 | 2,071,855 |
|
|
Hire purchase contracts (see note 17) | 67,085 | 2,776 |
|
|
1,963,012 | 2,074,631 |
|
|
|
16. | LOANS |
|
An analysis of the maturity of loans is given below: |
|
Group | Company |
2017 | 2016 | 2017 | 2016 |
£ | £ | £ | £ |
Amounts falling due within one year or on |
demand: |
Bank overdrafts | 375,792 | 393,363 |
|
|
Bank loans - due within one ye |
ar | 294,527 | 248,030 | 294,527 | 248,030 |
670,319 | 641,393 |
|
|
Amounts falling due between one and two |
years: |
Bank loans - 1-2 years | 289,323 | 294,526 |
|
|
Amounts falling due between two and five |
years: |
Bank loans - 2-5 years | 1,606,604 | 1,777,329 |
|
|
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
17. | LEASING AGREEMENTS |
|
Minimum lease payments fall due as follows: |
|
Group |
Hire purchase contracts |
2017 | 2016 |
£ | £ |
Net obligations repayable: |
Within one year | 18,979 | 12,960 |
Between one and five years | 67,085 | 2,776 |
86,064 | 15,736 |
|
Company |
Hire purchase contracts |
2017 | 2016 |
£ | £ |
Net obligations repayable: |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
Amounts payable under hire purchase lease agreements are secured upon the assets concerned. |
|
18. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
Group | Company |
2017 | 2016 | 2017 | 2016 |
£ | £ | £ | £ |
Bank overdrafts | 375,792 | 393,363 |
|
|
Bank loans | 2,190,454 | 2,319,885 |
|
|
2,566,246 | 2,713,248 |
|
|
|
Bank loans and overdrafts are secured by a first legal charge over the Rayleigh, Harling and Colchester freehold |
properties. In addition, the bank holds cross guarantees and debentures in relation to all of the group companies. |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
19. | FINANCIAL INSTRUMENTS |
|
Group |
The group has the following financial instruments: |
|
Group | Company |
Note | £ | £ |
|
Financial assets at fair value through profit or loss | - | - |
|
Financial assets that are debt instruments measured at
amortised cost |
|
- Trade debtors | 13 | 22,851 | 21,395 |
- Other debtors | 13 | 278,385 | 3,736,398 |
301,236 | 3,757,793 |
|
Financial assets that are equity instruments measured at cost
less impairment |
|
- |
- |
|
Financial liabilities measured at amortised cost |
- Trade creditors | 14 | 949,731 | 869,341 |
- Other creditors | 14 - 15 | 3,073,593 | 7,630,098 |
4,023,324 | 8,499,439 |
|
20. | PROVISIONS FOR LIABILITIES |
|
Group | Company |
2017 | 2016 | 2017 | 2016 |
£ | £ | £ | £ |
Deferred taxation | 145,937 | 133,521 | 145,937 | 133,521 |
|
Group |
Deferred |
tax |
£ |
Balance at 1 March 2016 | 133,521 |
Provided during year | 12,416 |
Balance at 28 February 2017 | 145,937 |
MELDONGREEN LIMITED (REGISTERED NUMBER: 01421946) |
|
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 28 February 2017 |
|
|
20. | PROVISIONS FOR LIABILITIES - continued |
|
Company |
Deferred |
tax |
£ |
Balance at 1 March 2016 |
|
Provided during year |
|
Charge on revaluation |
Balance at 28 February 2017 |
|
|
21. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2017 | 2016 |
value: | £ | £ |
|
Ordinary | £1 | 100,000 | 100,000 |
|
22. | PENSION COMMITMENTS |
|
The company operates a defined contribution scheme for the benefit of 1 of the group's directors. The assets of |
the scheme are administered by trustees in a fund independent from those of the company. |
|
23. | CONTINGENT LIABILITIES |
|
The companies in the group have given unlimited cross-guarantees to it's bankers. |
|
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
|
During the year directors were advanced an aggregated total of £106,067. These balances remained outstanding |
at the year-end. |
|
All amounts advanced to directors were repaid prior to November 2017. |
|
25. | RELATED PARTY DISCLOSURES |
|
During the year the company sold goods in the normal course of business to Swallow Aquatics (Rayleigh) |
Limited, Swallow Aquatics (Harling) Limited, Swallow Aquatics (Colchester) Limited and Swallow Aquatics |
(Kent) Limited. |
|
The price charged was the normal market price in the case of each individual sale. |
|
26. | ULTIMATE CONTROLLING PARTY |
|
The ultimate controlling party is the board of directors by virtue of their combined 100% shareholding. No |
individual director has ultimate control of the company. |