Company Registration No. 01421946 (England and Wales)
MELDONGREEN LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2020
MELDONGREEN LIMITED
COMPANY INFORMATION
Directors
Mr M R Seaby
Mr N P Seaby
Secretary
Mr M R Seaby
Company number
01421946
Registered office
1 Nelson Street
Southend on Sea
Essex
SS1 1EG
Auditor
Azets Audit Services
1 Nelson Street
Southend on Sea
Essex
SS1 1EG
Bankers
Clydesdale Bank Plc
30 Lombard Street
London
EC3V 9BB
MELDONGREEN LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 32
MELDONGREEN LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 JANUARY 2020
- 1 -
The directors present the strategic report for the period ended 31 January 2020.
Fair review of the business
In last year’s review of the business we reported that 2018/19 had been a challenging and loss-making year for the business where we experienced a difficult retail environment. As a consequence, we undertook a major restructure to slim down our cost base in the second half of 2018/19 which came into effect before we moved into 2019/20, and we then followed up with a strategic review in Spring 2019. This review has resulted in a number of actions including both re-setting the trading performance as well as looking to generate significant funds from underutilised assets. The actions from the review were a mix of short term and medium-term actions, and some of the actions arising from that project are ongoing and will benefit the business going forward.
One of the actions from that review was to move our year end to 31st January, so we report an eleven-month period for 2019/20’s results. This has allowed us to have our end of year stocktake away from our preparation for the start of the new trading season, so stocks are at a lower level to ease counting and staff are not distracted from preparations for the new season.
We are pleased to report that following on from actions we saw encouraging signs in 2019/20 and our business has moved back into profit for the period. Our objectives of reducing overall borrowings continues as well as reducing the working capital tied up in the business with stock levels dropping significantly in the period. We continue with our plan to sell some parcels of land, with planning permission in place on one of these plots.
The profit and loss account is set out on page
8
and shows a change in turnover for the eleven months to £
6,452,139
(Year 2019: £6,845,717), and as mentioned, we did see a move into profit for the eleven months of £
123,754
compared to a loss of £272,68
6
for twelve months in 2019, which reflects the efforts of the management team during a continued tight retail environment.
When we moved into the 2020/21 financial year, we were not expecting the massive impact that the Coronavirus pandemic would have on our country or on the world. It has stretched our health service, our population and our economy in more directions that anyone could have imagined, and continues to challenge us all. In some ways we were fortunate that a large part of our business falls into the essential retailing category, but we did see a major impact during lockdown at our Garden Centre site. We are most grateful for Government support that we have had through rates relief, a grant and the Coronavirus Job Retention Scheme which has helped support the cost base of our business. It has allowed us to continue to provide a service to our customers and reduce the potential financial impact of the virus.
We are pleased to report that with lockdown many customers have embarked on projects within their homes and gardens which we have provided the wherewithal to implement, and this has meant that are trade has been brisk and we have outperformed our budgets. We know that there are still hard times to come, but we are pleased with the business’s perform
ance
so far in 2020/21.
We would again like to thank our staff for their hard work and efforts during a busy period of change for the business, and we are very grateful for their drive to keep us in the Premier League for the industry, with hard work, a strong customer service ethos and an innovative approach to our market place.
MELDONGREEN LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
- 2 -
Principal risks and uncertainties
The retail market in general has been challenging, and 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.
We have now improved visibility of performance and stock to the business down to site and product level. This change will help each site manager better trade their business and allow us to understand and better satisfy our customers and have better control of stock. During the 2020/21 year we also refreshed our retail point of sales systems and our website platforms, which will further improve the information we have to run our business.
Capital expenditure continues to be closely controlled and it is anticipated that for the full year 2020/21 this will be mainly limited to a major refresh of our coffee shop at our Mill Race Garden Centre plus some other smaller projects which have health and safety aspects to them. The cash flow is managed as part of the daily/weekly control procedures and are within our facilities.
We continue to monitor Government and Industry guidance on maintaining a safe retail environment for customers and staff during the continued Coronavirus crisis, implementing changes as required and we will continue to monitor risks and make further changes as required.
Outlook
As a result of our strategic review we continue to be confident about the future and a potentially smaller business with the converting of non-performing assets into cash. This is being supported by an improved trading performance and better information and processes to understand and respond to customer demand.
The Directors will continue to keep the performance of all sites under review and take a cautious view of the market place although will continue to offer customer new products and great customer service
Mr N P Seaby
Director
26 January 2021
MELDONGREEN LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 JANUARY 2020
- 3 -
The directors present their annual report and financial statements for the period ended 31 January 2020.
Principal activities
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.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr M R Seaby
Mr N P Seaby
Results and dividends
No ordinary dividends were paid.
Auditor
On 7 September 2020 Group Audit Service Limited trading as Wilkins Kennedy Audit Services changed its name to Azets Audit Services Limited. The name they practice under is Azets Audit Services and accordingly they have signed their report in their new name.
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the group will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
MELDONGREEN LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
- 4 -
On behalf of the board
Mr N P Seaby
Director
26 January 2021
MELDONGREEN LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MELDONGREEN LIMITED
- 5 -
Opinion
We have audited the
financial statements of Meldongreen Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 January 2020 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and the parent company's affairs as at 31 January 2020 and of the group's profit for the period 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's responsibilities for the audit of the financial statements
section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the
group's or the parent
company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
MELDONGREEN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MELDONGREEN LIMITED
- 6 -
Opinions on other matters 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 strategic report and the directors' r
eport for the financial period 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
group and the parent
company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept 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.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine
is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the
group's and the parent
company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the
group or the parent
company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
MELDONGREEN LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MELDONGREEN LIMITED
- 7 -
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Paul East (Senior Statutory Auditor)
for and on behalf of Azets Audit Services
26 January 2021
Chartered Accountants
Statutory Auditor
1 Nelson Street
Southend on Sea
Essex
SS1 1EG
MELDONGREEN LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 JANUARY 2020
- 8 -
Period
Year
ended
ended
31 January
28 February
2020
2019
Notes
£
£
Turnover
6,452,139
6,845,717
Cost of sales
(3,604,594)
(3,892,809)
Gross profit
2,847,545
2,952,908
Administrative expenses
(2,668,225)
(3,143,272)
Other operating income
33,880
20,750
Operating profit/(loss)
3
213,200
(169,614)
Interest payable and similar expenses
7
(89,446)
(103,072)
Profit/(loss) before taxation
123,754
(272,686)
Tax on profit/(loss)
8
(34,373)
40,351
Profit/(loss) for the financial period
89,381
(232,335)
Profit/(loss) for the financial period is all attributable to the owners of the parent company.
MELDONGREEN LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 JANUARY 2020
- 9 -
Period
Year
ended
ended
31 January
28 February
2020
2019
£
£
Profit/(loss) for the period
89,381
(232,335)
Other comprehensive income
-
-
Total comprehensive income for the period
89,381
(232,335)
Total comprehensive income for the period is all attributable to the owners of the parent company.
MELDONGREEN LIMITED
GROUP BALANCE SHEET
AS AT 31 JANUARY 2020
31 January 2020
- 10 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
9
2,020
3,795
Tangible assets
10
5,337,189
5,435,822
5,339,209
5,439,617
Current assets
Stocks
13
1,495,810
1,763,427
Debtors
14
328,630
376,507
Cash at bank and in hand
29,243
19,728
1,853,683
2,159,662
Creditors: amounts falling due within one year
15
(2,338,836)
(2,619,232)
Net current liabilities
(485,153)
(459,570)
Total assets less current liabilities
4,854,056
4,980,047
Creditors: amounts falling due after more than one year
16
(1,284,405)
(1,501,198)
Provisions for liabilities
19
(146,301)
(144,880)
Net assets
3,423,350
3,333,969
Capital and reserves
Called up share capital
21
100,000
100,000
Revaluation reserve
3,087,983
3,087,983
Profit and loss reserves
235,367
145,986
Total equity
3,423,350
3,333,969
The financial statements were approved by the board of directors and authorised for issue on 26 January 2021 and are signed on its behalf by:
26 January 2021
Mr N P Seaby
Director
MELDONGREEN LIMITED
COMPANY BALANCE SHEET
AS AT 31 JANUARY 2020
31 January 2020
- 11 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
9
2,020
3,795
Tangible assets
10
5,337,189
5,435,822
Investments
11
204
204
5,339,413
5,439,821
Current assets
Stocks
13
1,495,810
1,763,427
Debtors
14
5,018,881
4,624,234
6,514,691
6,387,661
Creditors: amounts falling due within one year
15
(7,816,784)
(7,552,936)
Net current liabilities
(1,302,093)
(1,165,275)
Total assets less current liabilities
4,037,320
4,274,546
Creditors: amounts falling due after more than one year
16
(1,284,405)
(1,501,198)
Provisions for liabilities
19
(146,301)
(144,880)
Net assets
2,606,614
2,628,468
Capital and reserves
Called up share capital
21
100,000
100,000
Revaluation reserve
3,087,983
3,087,983
Profit and loss reserves
(581,369)
(559,515)
Total equity
2,606,614
2,628,468
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s loss for the year was £21,854 (2019 - £6,692 loss).
The financial statements were approved by the board of directors and authorised for issue on 26 January 2021 and are signed on its behalf by:
26 January 2021
Mr N P Seaby
Director
Company Registration No. 01421946
MELDONGREEN LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 JANUARY 2020
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 March 2018
100,000
3,087,983
378,321
3,566,304
Period ended 28 February 2019:
Loss and total comprehensive income for the period
-
-
(232,335)
(232,335)
Balance at 28 February 2019
100,000
3,087,983
145,986
3,333,969
Period ended 31 January 2020:
Profit and total comprehensive income for the period
-
-
89,381
89,381
Balance at 31 January 2020
100,000
3,087,983
235,367
3,423,350
MELDONGREEN LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 JANUARY 2020
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 March 2018
100,000
3,087,983
(552,823)
2,635,160
Period ended 28 February 2019:
Loss and total comprehensive income for the period
-
-
(6,692)
(6,692)
Balance at 28 February 2019
100,000
3,087,983
(559,515)
2,628,468
Period ended 31 January 2020:
Loss and total comprehensive income for the period
-
-
(21,854)
(21,854)
Balance at 31 January 2020
100,000
3,087,983
(581,369)
2,606,614
MELDONGREEN LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 JANUARY 2020
- 14 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
305,534
284,844
Interest paid
(89,446)
(103,072)
Income taxes (paid)/refunded
-
1
Net cash inflow from operating activities
216,088
181,773
Investing activities
Purchase of tangible fixed assets
(33,943)
(24,689)
Proceeds on disposal of tangible fixed assets
4,349
50,992
Receipts arising from loans made
(8,028)
(6,833)
Net cash (used in)/generated from investing activities
(37,622)
19,470
Financing activities
Repayment of bank loans
(263,646)
(313,174)
Payment of finance leases obligations
(31,996)
(105,026)
Net cash used in financing activities
(295,642)
(418,200)
Net decrease in cash and cash equivalents
(117,176)
(216,957)
Cash and cash equivalents at beginning of period
(611,843)
(394,886)
Cash and cash equivalents at end of period
(729,019)
(611,843)
Relating to:
Cash at bank and in hand
29,243
19,728
Bank overdrafts included in creditors payable within one year
(758,262)
(631,571)
MELDONGREEN LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 JANUARY 2020
- 15 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
290,479
264,740
Interest paid
(74,170)
(86,051)
Net cash inflow from operating activities
216,309
178,689
Investing activities
Purchase of tangible fixed assets
(33,943)
(24,689)
Proceeds on disposal of tangible fixed assets
4,349
50,992
Receipts arising from loans made
(8,028)
(6,833)
Net cash (used in)/generated from investing activities
(37,622)
19,470
Financing activities
Repayment of bank loans
(263,646)
(313,174)
Payment of finance leases obligations
(31,996)
(105,026)
Net cash used in financing activities
(295,642)
(418,200)
Net decrease in cash and cash equivalents
(116,955)
(220,041)
Cash and cash equivalents at beginning of period
(636,123)
(416,082)
Cash and cash equivalents at end of period
(753,078)
(636,123)
Relating to:
Bank overdrafts included in creditors payable within one year
(753,078)
(636,123)
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2020
- 16 -
1
Accounting policies
Company information
Meldongreen Limited
(“the company”)
is a
private
limited company domiciled and incorporated in England and Wales.
The registered office is
1 Nelson Street, Southend on Sea, Essex, SS1 1EG.
The group consists of Meldongreen Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
In the opinion of the directors, it remains appropriate to continue to adopt the going concern basis of accounting.
1.2
Basis of consolidation
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
The consolidated financial statements incorporate those of Meldongreen Limited and all of its subsidiaries (ie entities that the
g
roup controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.
All financial statements are made up to 31 January 2020
.
Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 17 -
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Reporting period
The Directors of the company opted to change the year end date to 31st January as part of a future restructuring plan. This means that the current period figures show results for a period of 11 months. The comparative amounts presented in the financial statements and related notes show results for a full 12 months, meaning they are not entirely comparable.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of
a
business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.
All goodwill currently held has been fully amortised.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
Straight line over 6 years
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 18 -
1.8
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Straight line over 50 years
Leasehold improvements
Not provided
Plant and equipment
25% on reducing balance
Fixtures and fittings
25% on reducing balance
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
1.9
Fixed asset investments
I
n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
1.10
Impairment of fixed assets
At each reporting
period
end date, the
group
reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 19 -
1.12
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
m
ethod unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 20 -
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset
if, and only if, there is
a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.16
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss
so as to produce a constant periodic rate of interest on the remaining balance of the liability.
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 21 -
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
d
asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
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.
Stock valuations
The group considers what value stock should be carried at given the varying types of stock offered. This is done by taking into account the purchase price from suppliers and costs of transit for imported items.
3
Operating profit/(loss)
2020
2019
£
£
Operating profit/(loss) for the period is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
121,790
143,832
Depreciation of tangible fixed assets held under finance leases
6,474
12,981
Profit on disposal of tangible fixed assets
(37)
(9,483)
Amortisation of intangible assets
1,775
4,115
Operating lease charges
(214,500)
(234,000)
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
- 22 -
4
Auditor's remuneration
2020
2019
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
16,260
16,013
Audit of the financial statements of the company's subsidiaries
6,955
5,340
23,215
21,353
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the period was:
Group
Company
2020
2019
2020
2019
Number
Number
Number
Number
Management
119
128
3
3
Their aggregate remuneration comprised:
Group
Company
2020
2019
2020
2019
£
£
£
£
Wages and salaries
1,523,579
1,832,797
279,972
325,932
Social security costs
14,684
16,696
14,291
16,067
Pension costs
21,267
22,991
7,225
9,375
1,559,530
1,872,484
301,488
351,374
6
Directors' remuneration
2020
2019
£
£
Remuneration for qualifying services
86,081
96,016
Company pension contributions to defined contribution schemes
7,225
9,375
93,306
105,391
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
- 23 -
7
Interest payable and similar expenses
2020
2019
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
79,987
87,749
Other finance costs:
Interest on finance leases and hire purchase contracts
9,459
15,323
Total finance costs
89,446
103,072
8
Taxation
2020
2019
£
£
Deferred tax
Origination and reversal of timing differences
34,373
(40,351)
The actual charge/(credit) for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:
2020
2019
£
£
Profit/(loss) before taxation
123,754
(272,686)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
23,513
(51,810)
Tax effect of expenses that are not deductible in determining taxable profit
-
(1,802)
Tax effect of utilisation of tax losses not previously recognised
(39,724)
-
Unutilised tax losses carried forward
-
31,419
Permanent capital allowances in excess of depreciation
16,211
22,193
Deferred tax movements
34,373
(40,351)
Taxation charge/(credit)
34,373
(40,351)
9
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 March 2019 and 31 January 2020
650,000
39,115
689,115
Amortisation and impairment
At 1 March 2019
650,000
35,320
685,320
Amortisation charged for the period
-
1,775
1,775
At 31 January 2020
650,000
37,095
687,095
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
9
Intangible fixed assets
(Continued)
- 24 -
Carrying amount
At 31 January 2020
-
2,020
2,020
At 28 February 2019
-
3,795
3,795
Company
Goodwill
Software
Total
£
£
£
Cost
At 1 March 2019 and 31 January 2020
650,000
39,115
689,115
Amortisation and impairment
At 1 March 2019
650,000
35,320
685,320
Amortisation charged for the period
-
1,775
1,775
At 31 January 2020
650,000
37,095
687,095
Carrying amount
At 31 January 2020
-
2,020
2,020
At 28 February 2019
-
3,795
3,795
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
- 25 -
10
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2019
4,143,390
1,506,869
364,754
1,304,110
75,293
7,394,416
Additions
-
-
9,308
5,285
19,350
33,943
Disposals
-
-
-
-
(32,280)
(32,280)
At 31 January 2020
4,143,390
1,506,869
374,062
1,309,395
62,363
7,396,079
Depreciation and impairment
At 1 March 2019
426,083
6,038
329,037
1,123,064
74,372
1,958,594
Depreciation charged in the period
75,962
3,163
8,474
38,074
2,591
128,264
Eliminated in respect of disposals
-
-
-
-
(27,968)
(27,968)
At 31 January 2020
502,045
9,201
337,511
1,161,138
48,995
2,058,890
Carrying amount
At 31 January 2020
3,641,345
1,497,668
36,551
148,257
13,368
5,337,189
At 28 February 2019
3,717,307
1,500,831
35,717
181,046
921
5,435,822
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
10
Tangible fixed assets
(Continued)
- 26 -
Company
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 March 2019
4,143,390
1,506,869
364,754
1,304,110
75,293
7,394,416
Additions
-
-
9,308
5,285
19,350
33,943
Disposals
-
-
-
-
(32,280)
(32,280)
At 31 January 2020
4,143,390
1,506,869
374,062
1,309,395
62,363
7,396,079
Depreciation and impairment
At 1 March 2019
426,083
6,038
329,037
1,123,064
74,372
1,958,594
Depreciation charged in the period
75,962
3,163
8,474
38,074
2,591
128,264
Eliminated in respect of disposals
-
-
-
-
(27,968)
(27,968)
At 31 January 2020
502,045
9,201
337,511
1,161,138
48,995
2,058,890
Carrying amount
At 31 January 2020
3,641,345
1,497,668
36,551
148,257
13,368
5,337,189
At 28 February 2019
3,717,307
1,500,831
35,717
181,046
921
5,435,822
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2020
2019
2020
2019
£
£
£
£
Plant and equipment
70,940
77,414
70,940
77,414
Land and buildings with a carrying amount of £3,641,345 were revalued on the basis of an open market valuation for existing use in October 2015 by Messrs, Quinton Smith who are independent valuers not connected with the company.
The historic cost of land and buildings is £2,655,627.
11
Fixed asset investments
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Investments in subsidiaries
12
-
-
204
204
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
11
Fixed asset investments
(Continued)
- 27 -
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.
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 March 2019 and 31 January 2020
204
Carrying amount
At 31 January 2020
204
At 28 February 2019
204
12
Subsidiaries
Details of the company's subsidiaries at 31 January 2020 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Swallow Aquatics (Rayleigh) Limited
1 Nelson Street, Southend on Sea, Essex, SS1 1EG
Ordinary
100.00
Swallow Aquatics (Colchester) Limited
As above
Ordinary
100.00
Swallow Aquatics (Kent) Limited
As above
Ordinary
100.00
Swallow Aquatics (Harling) Limited
As above
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Swallow Aquatics (Rayleigh) Limited
1,144,033
135,041
Swallow Aquatics (Colchester) Limited
(369,232)
32,961
Swallow Aquatics (Kent) Limited
506,728
(42,527)
Swallow Aquatics (Harling) Limited
(464,588)
(14,237)
13
Stocks
Group
Company
2020
2019
2020
2019
£
£
£
£
Stocks
1,495,810
1,763,427
1,495,810
1,763,427
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
- 28 -
14
Debtors
Group
Company
2020
2019
2020
2019
Amounts falling due within one year:
£
£
£
£
Trade debtors
59,751
27,060
55,783
26,325
Amounts owed by group undertakings
-
-
4,723,898
4,453,130
Other debtors
244,278
291,894
235,771
141,711
304,029
318,954
5,015,452
4,621,166
Amounts falling due after more than one year:
Deferred tax asset (note 19)
24,601
57,553
3,429
3,068
Total debtors
328,630
376,507
5,018,881
4,624,234
15
Creditors: amounts falling due within one year
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Bank loans and overdrafts
17
1,308,234
1,261,760
1,303,050
1,266,312
Obligations under finance leases
18
46,567
45,199
46,567
45,199
Trade creditors
639,701
854,104
577,585
723,196
Amounts owed to group undertakings
-
-
5,792,943
5,218,226
Other taxation and social security
97,654
227,674
3,777
207,335
Other creditors
102,471
82,583
31,361
26,945
Accruals and deferred income
144,209
147,912
61,501
65,723
2,338,836
2,619,232
7,816,784
7,552,936
16
Creditors: amounts falling due after more than one year
Group
Company
2020
2019
2020
2019
Notes
£
£
£
£
Bank loans and overdrafts
17
1,207,359
1,390,788
1,207,359
1,390,788
Obligations under finance leases
18
77,046
110,410
77,046
110,410
1,284,405
1,501,198
1,284,405
1,501,198
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
- 29 -
17
Loans and overdrafts
Group
Company
2020
2019
2020
2019
£
£
£
£
Bank loans
1,757,331
2,020,977
1,757,331
2,020,977
Bank overdrafts
758,262
631,571
753,078
636,123
2,515,593
2,652,548
2,510,409
2,657,100
Payable within one year
1,308,234
1,261,760
1,303,050
1,266,312
Payable after one year
1,207,359
1,390,788
1,207,359
1,390,788
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.
18
Finance lease obligations
Group
Company
2020
2019
2020
2019
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
46,567
45,199
46,567
45,199
In two to five years
77,046
110,410
77,046
110,410
123,613
155,609
123,613
155,609
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
Amounts payable under hire purchase lease agreements are secured upon the assets concerned.
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
- 30 -
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
Assets
Assets
2020
2019
2020
2019
Group
£
£
£
£
Accelerated capital allowances
146,301
144,880
-
-
Tax losses
-
-
24,601
57,553
146,301
144,880
24,601
57,553
Liabilities
Liabilities
Assets
Assets
2020
2019
2020
2019
Company
£
£
£
£
Accelerated capital allowances
146,301
144,880
-
-
Tax losses
-
-
3,429
3,068
146,301
144,880
3,429
3,068
Group
Company
2020
2020
Movements in the period:
£
£
Liability at 1 March 2019
87,327
141,812
Charge to profit or loss
34,373
1,060
Liability at 31 January 2020
121,700
142,872
20
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
21,267
22,991
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
- 31 -
21
Share capital
Group and company
2020
2019
Ordinary share capital
£
£
Issued and fully paid
100,000 Ordinary shares of £1 each
100,000
100,000
22
Contingent liabilities
The companies in the group have given unlimited cross-guarantees to its bankers.
23
Events after the reporting date
The COVID-19 pandemic is a non-adjusting event as at 31st January 2020 for the purposes of these financial statements. The company has assessed the impact of COVID-19 on its ability to continue as a going concern. The COVID-19 outbreak has developed rapidly in 2020 and has caused disruption to business, economic activities and impacted global markets.
Management continues to consider the potential implications of the COVID-19 pandemic, however at this stage it has not had a material impact on any of the balances in the company's financial statements.
24
Directors' transactions
During the period, directors were advanced an aggregate total of £14,861 (2019 - £8,881). These balances remained outstanding at the year end.
25
Cash generated from group operations
2020
2019
£
£
Profit/(loss) for the period after tax
89,381
(232,335)
Adjustments for:
Taxation charged/(credited)
34,373
(40,351)
Finance costs
89,446
103,072
Gain on disposal of tangible fixed assets
(37)
(9,483)
Amortisation and impairment of intangible assets
1,775
4,115
Depreciation and impairment of tangible fixed assets
128,264
156,813
Movements in working capital:
Decrease in stocks
267,617
389,950
(Increase)/decrease in debtors
(51,621)
60,831
Decrease in creditors
(253,664)
(147,768)
Cash generated from operations
305,534
284,844
MELDONGREEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
- 32 -
26
Cash generated from operations - company
2020
2019
£
£
Loss for the period after tax
(21,854)
(6,692)
Adjustments for:
Taxation charged/(credited)
1,060
(12,239)
Finance costs
74,170
86,051
Gain on disposal of tangible fixed assets
(37)
(9,483)
Amortisation and impairment of intangible assets
1,775
4,115
Depreciation and impairment of tangible fixed assets
128,264
156,813
Movements in working capital:
Decrease in stocks
267,617
389,950
Increase in debtors
(386,258)
(4,398,720)
Increase in creditors
225,742
4,054,945
Cash generated from operations
290,479
264,740
27
Analysis of changes in net debt - group
1 March 2019
Cash flows
31 January 2020
£
£
£
Cash at bank and in hand
19,728
9,515
29,243
Bank overdrafts
(631,571)
(126,691)
(758,262)
(611,843)
(117,176)
(729,019)
Borrowings excluding overdrafts
(2,020,977)
263,646
(1,757,331)
Obligations under finance leases
(155,609)
31,996
(123,613)
(2,788,429)
178,466
(2,609,963)
28
Analysis of changes in net debt - company
1 March 2019
Cash flows
31 January 2020
£
£
£
Bank overdrafts
(636,123)
(116,955)
(753,078)
Borrowings excluding overdrafts
(2,020,977)
263,646
(1,757,331)
Obligations under finance leases
(155,609)
31,996
(123,613)
(2,812,709)
178,687
(2,634,022)
2020-01-31
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false
CCH Software
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