Company Registration No. 02862671 (England and Wales)
GROWELL HYDROPONICS AND PLANT LIGHTING LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
PAGES FOR FILING WITH REGISTRAR
GROWELL HYDROPONICS AND PLANT LIGHTING LTD
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 9
GROWELL HYDROPONICS AND PLANT LIGHTING LTD
BALANCE SHEET
AS AT
31 OCTOBER 2019
31 October 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
3
271,860
246,190
Current assets
Stocks
1,736,956
1,889,213
Debtors
5
1,104,909
359,014
Cash at bank and in hand
713,030
703,909
3,554,895
2,952,136
Creditors: amounts falling due within one year
6
(1,653,179)
(1,679,985)
Net current assets
1,901,716
1,272,151
Total assets less current liabilities
2,173,576
1,518,341
Provisions for liabilities
7
(34,911)
(27,851)
Net assets
2,138,665
1,490,490
Capital and reserves
Called up share capital
8
7,359
8,430
Capital redemption reserve
2,143
1,072
Profit and loss reserves
2,129,163
1,480,988
Total equity
2,138,665
1,490,490
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 October 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
GROWELL HYDROPONICS AND PLANT LIGHTING LTD
BALANCE SHEET (CONTINUED)
AS AT
31 OCTOBER 2019
31 October 2019
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 21 July 2020 and are signed on its behalf by:
T D Ward
Director
Company Registration No. 02862671
GROWELL HYDROPONICS AND PLANT LIGHTING LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2019
- 3 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2017
8,698
804
1,266,966
1,276,468
Year ended 31 October 2018:
Profit and total comprehensive income for the year
-
-
868,033
868,033
Dividends
-
-
(630,000)
(630,000)
Own shares acquired
-
-
(24,011)
(24,011)
Redemption of shares
8
(268)
268
-
-
Balance at 31 October 2018
8,430
1,072
1,480,988
1,490,490
Year ended 31 October 2019:
Profit and total comprehensive income for the year
-
-
792,130
792,130
Dividends
-
-
(48,000)
(48,000)
Own shares acquired
-
-
(95,955)
(95,955)
Redemption of shares
8
(1,071)
1,071
-
-
Balance at 31 October 2019
7,359
2,143
2,129,163
2,138,665
GROWELL HYDROPONICS AND PLANT LIGHTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
- 4 -
1
Accounting policies
Company information
Growell Hydroponics and Plant Lighting Ltd is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
3 Coventry Innovation Village, Cheetah Road, Coventry, CV1 2TL.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
These financial statements are prepared on the going concern basis.
true
T
he directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern
which relate to the potential financial impact of the Covid-19 pandemic. However t
he directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
1.3
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.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
10% straight line and over the term of the lease
Plant and machinery
20% straight line
Fixtures, fittings and equipment
20% straight line
Computer equipment
33.3% straight line
Motor vehicles
25% straight line
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 credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
GROWELL HYDROPONICS AND PLANT LIGHTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 5 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and s
ell.
1.7
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
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.
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.11
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
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
GROWELL HYDROPONICS AND PLANT LIGHTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
1
Accounting policies
(Continued)
- 6 -
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 when the
company
has 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expen
se.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease
.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 4 (2018 - 4
).
GROWELL HYDROPONICS AND PLANT LIGHTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 7 -
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 November 2018
417,187
621,314
1,038,501
Additions
39,521
60,475
99,996
At 31 October 2019
456,708
681,789
1,138,497
Depreciation and impairment
At 1 November 2018
267,991
524,320
792,311
Depreciation charged in the year
40,556
33,770
74,326
At 31 October 2019
308,547
558,090
866,637
Carrying amount
At 31 October 2019
148,161
123,699
271,860
At 31 October 2018
149,196
96,994
246,190
4
Financial instruments
2019
2018
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
9,950
-
5
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
55,572
150,986
Amounts owed by group undertakings
848,368
-
Derivative financial instruments
9,950
-
Other debtors
26,711
26,711
Prepayments and accrued income
164,308
181,317
1,104,909
359,014
GROWELL HYDROPONICS AND PLANT LIGHTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 8 -
6
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
1,024,536
854,662
Corporation tax
173,700
189,179
Other taxation and social security
140,126
112,751
Other creditors
129,041
367,698
Accruals and deferred income
185,776
155,695
1,653,179
1,679,985
7
Provisions for liabilities
2019
2018
£
£
Deferred tax liabilities
34,911
27,851
8
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
7,359 Ordinary shares of £1 each
7,359
8,430
On 5 April 2019 1,071 ordinary shares of £1 each were bought back by the company for cash consideration of £95,955 and subsequently cancelled.
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2019
2018
£
£
1,489,706
771,371
10
Events after the reporting date
At the time of approval of the financial statements, the United Kingdom is subject to lockdown measures due to the Covid-19 pandemic. The directors estimate that this will have a significant impact on the company's sales during this lockdown period, however it is not currently possible to reliably estimate the full financial effect on the company.
GROWELL HYDROPONICS AND PLANT LIGHTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2019
- 9 -
11
Related party transactions
The following amounts were outstanding at the reporting end date:
2019
2018
Amounts due to related parties
£
£
Key management personnel
218,159
The amounts due to key management personnel were repayable on demand and interest free.
The company has taken advantage of the exemption under the terms of FRS 102 not to disclose related party transactions with wholly owned group entities.
12
Directors' transactions
Description
% Rate
Opening balance
Interest charged
Amounts repaid
Closing balance
£
£
£
£
Loan
4.00
17,585
680
(780)
17,485
17,585
680
(780)
17,485
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