Company registration number 00268552 (England and Wales)
STRETTONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
STRETTONS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
STRETTONS LIMITED
COMPANY INFORMATION
Directors
S E D Tilsiter
C J M Collins
M R Iliffe
M R Bolton
N A Matthews
A Lattimer
J P Cuthbert
G P Powis
P Charles
(Appointed 1 May 2023)
A Brown
(Appointed 1 May 2022)
Secretary
S E D Tilsiter
Company number
00268552
Registered office
Waltham House
11 Kirkdale Road
Leytonstone
London
E11 1HP
Auditor
Goodman Jones LLP
29/30 Fitzroy Square
London
W1T 6LQ
Business address
Waltham House
11 Kirkdale Road
Leytonstone
London
E11 1HP
Bankers
National Westminster Bank Plc
STRETTONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 1 -

The directors present the strategic report for the year ended 30 April 2023.

Fair review of the business

Our strength lies in our diverse client base, the variety of works we undertake, and our presence across different geographical regions. While the Eastern sector of the M25 remains our primary focus, we have been actively expanding our team in the city. Our expertise extends to managing and facilitating auctions for properties throughout England and Wales. We understand the significance of attracting and retaining highly skilled professionals, and we are committed to creating a positive work environment at Strettons. To achieve this goal, we consistently invest in the development of our team members and uphold our core values of integrity, quality, energy, and teamwork, ensuring that Strettons remains an enjoyable workplace.

 

This year, our performance exceeded expectations despite the challenges faced by the banking and tech sectors, which had a significant impact on our markets by decreasing trading activity. This was in stark contrast to the previous year, where market conditions were exceptionally strong. Although inflation and rising interest rates continue to affect our customers and colleagues, we are confident in our business model's resilience, financial stability, and expertise. We believe these factors will enable us to continue supporting them now and in the future.

 

Due to the challenging economic back drop, our company’s revenue dropped below prior years. Despite this, the company’s strong cost control and adherence to its important cost initiatives helped to maintain an acceptable 2022/23 overall performance. The full year revenue declined 10.01% on 2022/23 to £9,537,595 (2021/22: £10,598,539).

 

The company remains dedicated to making operational and strategic choices aimed at evolving into a more resilient and well-balanced organisation. Building upon these foundational changes, the board is determined to grow the company's organic growth, primarily by investing in key personnel and technology in strategic areas, with the goal of achieving top-notch performance and efficiency improvements to reduce costs. Consequently, the Leadership Team has conducted a thorough review of the company's strategy, with a renewed emphasis on prioritising clients, nurturing talent, enhancing services, and fostering synergies.

 

Key performance indicators

Our key performance indicators are:

 

Turnover which has decreased by 10.01% from £10,598,539 to £9,537,595.

 

Staff costs which have decreased by 7.89% from £7,707,717 to £7,099,700.

 

Debtor days which have increased from 40 days to 50 days.

 

Net profit before tax which has increased from £33,790 to £35,001.

 

On behalf of the board

S E D Tilsiter
Director
13 November 2023
STRETTONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -

The directors present their annual report and financial statements for the year ended 30 April 2023.

Principal activities
The principal activity of the company continues to be that of Chartered Surveyors, Auctioneers, Property Managers and Estate Agents.
Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

S E D Tilsiter
C J M Collins
M R Iliffe
M R Bolton
N A Matthews
G M Mariner
(Resigned 23 September 2022)
A Lattimer
J P Cuthbert
G P Powis
P Costa
(Resigned 20 May 2022)
P Charles
(Appointed 1 May 2023)
A Brown
(Appointed 1 May 2022)
Results and dividends

The results for the year are set out on page 7.

A dividend of £20,000 was paid during the year.

Auditor
The auditor, Goodman Jones LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STRETTONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -
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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
S E D Tilsiter
Director
13 November 2023
STRETTONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STRETTONS LIMITED
- 4 -
Opinion

We have audited the financial statements of Strettons Limited (the 'company') for the year ended 30 April 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

STRETTONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRETTONS LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried. These procedures included:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

STRETTONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRETTONS LIMITED
- 6 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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.

Martin Bailey
Senior Statutory Auditor
For and on behalf of Goodman Jones LLP
15 November 2023
Chartered Accountants
Statutory Auditor
29/30 Fitzroy Square
London
W1T 6LQ
STRETTONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
9,537,595
10,598,539
Administrative expenses
(9,546,024)
(10,625,916)
Other operating income
55,787
108,215
Operating profit
9
47,358
80,838
Interest receivable and similar income
6
57,135
2,176
Interest payable and similar expenses
7
(69,492)
(49,224)
Profit before taxation
35,001
33,790
Tax on profit
8
(27,964)
(11,713)
Profit for the financial year
7,037
22,077

The profit and loss account has been prepared on the basis that all operations are continuing operations.

STRETTONS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
56,231
96,751
Tangible assets
13
70,275
86,785
Investments
12
1
51
126,507
183,587
Current assets
Debtors
14
1,990,896
1,954,100
Cash at bank and in hand
2,015,311
2,807,773
4,006,207
4,761,873
Creditors: amounts falling due within one year
16
(2,413,123)
(2,751,115)
Net current assets
1,593,084
2,010,758
Total assets less current liabilities
1,719,591
2,194,345
Creditors: amounts falling due after more than one year
17
(937,500)
(1,387,500)
Provisions for liabilities
Deferred tax liability
18
20,395
32,186
(20,395)
(32,186)
Net assets
761,696
774,659
Capital and reserves
Called up share capital
20
32,893
32,893
Profit and loss reserves
728,803
741,766
Total equity
761,696
774,659
The financial statements were approved by the board of directors and authorised for issue on 13 November 2023 and are signed on its behalf by:
S E D Tilsiter
N A Matthews
Director
Director
Company Registration No. 00268552
STRETTONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2021
32,893
743,689
776,582
Year ended 30 April 2022:
Profit and total comprehensive income
-
22,077
22,077
Dividends
10
-
(24,000)
(24,000)
Balance at 30 April 2022
32,893
741,766
774,659
Year ended 30 April 2023:
Profit and total comprehensive income
-
7,037
7,037
Dividends
10
-
(20,000)
(20,000)
Balance at 30 April 2023
32,893
728,803
761,696
STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 10 -
1
Accounting policies
Company information

Strettons Limited is a private company limited by shares incorporated in England and Wales. The registered office is Waltham House, 11 Kirkdale Road, Leytonstone, London, E11 1HP.

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 amounts 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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Stretton Group Limited. These consolidated financial statements are available from its registered office, Waltham House, 11 Kirkdale Road, Leytonstone, London, E11 1HP.

1.2
Going concern

A going concern review has been carried out using the company’s cashflow forecast as a base case scenario, extending to the end of April 2024 and beyond. This forecast builds upon the achievements of 2023 so far, during which the company has successfully achieved the revenue forecasts for the year. This performance is expected to continue throughout 2023/24. There is also continued positivity around the expected cash flows of the business, with the cash balance remaining firmly in line for the entire forecast period.true

 

It is recognised that the market conditions could change over the next 12 months from date of approval and therefore a sensitivity analysis has been performed, representing a reasonable worst-case scenario, reducing the income by 4.9% and forecasted costs decreased by 6.8%. It is expected that in this scenario the cash balance remains strong and healthy.

 

On this basis the directors continue to see no issues with going concern status of the firm and therefore continue to adopt the concern basis in preparing the financial statements.

 

 

 

STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 11 -
1.3
Turnover
Turnover represents amounts receivable for services supplied by the company net of VAT and trade discounts.

Revenue from the provision of professional services is recognised when the services are provided. Income is deferred where it relates to services to be provided in the next accounting period.

1.4
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
25% straight line
1.5
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:

Fixtures, fittings & equipment
20% - 33% 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.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the company 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.

STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 12 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.8
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.

1.9
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.

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 method 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 13 -
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 company 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 company 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 payments 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
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.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 14 -
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.

Deferred tax
Deferred taxation is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes.  The deferred tax balance has not been discounted.
1.12
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.

1.13
Retirement benefits

The company operates a defined contribution pension scheme and part of the pension charge disclosed in Note 18 represents the amount payable by the company to the fund in respect of the year. The assets are held separately from those of the company in an independently administered fund. The remainder of the pension charge, as disclosed in Note 18, represents the amount paid into a directors' personal pension scheme.

 

1.14
Leases

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 leases asset are consumed.

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

 

During the year, the group received £Nil (2022 - £83,251) under the government backed Coronavirus Job Retention Scheme (CJRS), following the outbreak of Covid-19 during the year. This amount has been recognised as other operating income.

1.16

Group accounts

The financial statements present information about the company as an individual undertaking and not about its group. The company has not prepared group accounts as it is exempt from the requirement to do so by section 400 of the Companies Act 2006 as it is a subsidiary undertaking of Strettons Group Limited, a company incorporated in England and Wales, and is included in the consolidated accounts of that company.

STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

 

Acquired goodwill is stated at cost less amortisation. Goodwill acquired during April 2018, which amounted to £100,000, has a useful life of 4 years in the opinion of the directors, and is amortised on a straight line basis over this period.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Fees receivable
9,537,595
10,598,539
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
9,537,595
10,598,539
2023
2022
£
£
Other revenue
Interest income
57,135
2,176
Grants received
-
87,264
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Sales
58
65
Administrative
58
54
Total
116
119
STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
4
Employees
(Continued)
- 16 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
5,963,906
6,774,373
Social security costs
712,613
705,896
Pension costs
114,480
257,972
6,790,999
7,738,241
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,252,288
1,702,782
Company pension contributions to defined contribution schemes
7,620
140,043
1,259,908
1,842,825

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2022 - 7).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
183,883
240,303
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
57,135
2,176
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
69,492
49,224
STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 17 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
20,913
10,219
Adjustments in respect of prior periods
18,842
-
0
Total current tax
39,755
10,219
Deferred tax
Origination and reversal of timing differences
(11,791)
1,494
Total tax charge
27,964
11,713

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
35,001
33,790
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
6,650
6,420
Tax effect of expenses that are not deductible in determining taxable profit
7,219
7,305
Adjustments in respect of prior years
18,842
-
0
Deferred tax calculated on a higher rate
3,005
(1,967)
Enhanced capital allowances
(7,546)
(4,112)
Utilisation of tax losses
-
0
(9,905)
Unprovided deferred tax re pension creditor
(736)
4,280
Change in future tax rate
530
9,692
Taxation charge for the year
27,964
11,713
9
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(87,264)
Fees payable to the company's auditor for the audit of the company's financial statements
29,845
23,588
Depreciation of owned tangible fixed assets
47,434
78,651
Amortisation of intangible assets
40,520
61,420
Profit on disposal of intangible assets
(131)
-
Operating lease charges
423,168
383,196
STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 18 -
10
Dividends
2023
2022
£
£
Final paid
20,000
24,000
11
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 May 2022 and 30 April 2023
100,000
182,706
282,706
Amortisation and impairment
At 1 May 2022
100,000
85,955
185,955
Amortisation charged for the year
-
0
40,520
40,520
At 30 April 2023
100,000
126,475
226,475
Carrying amount
At 30 April 2023
-
0
56,231
56,231
At 30 April 2022
-
0
96,751
96,751
12
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
15
1
1
Investments in joint ventures
-
0
50
1
51
Movements in fixed asset investments
Shares in subsidiaries and joint ventures
£
Cost or valuation
At 1 May 2022
51
Disposals
(50)
At 30 April 2023
1
Carrying amount
At 30 April 2023
1
At 30 April 2022
51
STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 19 -
13
Tangible fixed assets
Fixtures, fittings & equipment
£
Cost
At 1 May 2022
530,885
Additions
31,233
Disposals
(619)
At 30 April 2023
561,499
Depreciation and impairment
At 1 May 2022
444,100
Depreciation charged in the year
47,433
Eliminated in respect of disposals
(309)
At 30 April 2023
491,224
Carrying amount
At 30 April 2023
70,275
At 30 April 2022
86,785
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,167,810
1,159,570
Amounts owed by group undertakings
186,254
138
Other debtors
33,933
76,180
Prepayments and accrued income
602,899
718,212
1,990,896
1,954,100
15
Subsidiaries

Details of the company's subsidiaries at 30 April 2023 are as follows:

Name of undertaking
Class of
% Held
shares held
Direct
Strettons Frankis Porter Limited
Ordinary
100

Registered office addresses (all UK unless otherwise indicated):

Waltham House 11 Kirkdale Road, Leytonstone, London, United Kingdom, E11 1HP
The company was dormant in the year, and has not traded.
STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 20 -
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
450,000
450,000
Trade creditors
355,884
262,030
Amounts owed to group undertakings
1
1
Amounts owed to undertakings in which the company has a participating interest
-
0
50
Corporation tax
39,755
10,219
Other taxation and social security
559,272
617,737
Other creditors
21,385
39,506
Accruals and deferred income
986,826
1,371,572
2,413,123
2,751,115
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
937,500
1,387,500

Loans totalling £1,387,500 (2022: £1,837,500) relate to the government backed Coronavirus Business Interruption Loan (CBIL) loan scheme. Interest and arrangement fees on this loan is paid by the government for the first 12 months, with an annual interest rate of 2.07% over the base rate. The directors consider the interest rate on this loan to be at a market rate and as such have not recognised the immaterial impact of discounting the loans to present value.

18
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
20,395
32,186
2023
Movements in the year:
£
Liability at 1 May 2022
32,186
Credit to profit or loss
(11,791)
Liability at 30 April 2023
20,395

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 21 -
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
114,480
257,972

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2023
2022
£
£
Ordinary share capital
Authorised
50,000 Ordinary shares of £1 each
50,000
50,000
Issued and fully paid
32,893 Ordinary shares of £1 each
32,893
32,893
21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases. The commitments fall due as follows:

2023
2022
£
£
Within one year
261,194
105,804
Between two and five years
657,274
62,639
918,468
168,443
During the year £57,254 (2022: £57,000) in relation to the rental lease commitment was expensed in the profit and loss account. Iincluded in this is a service charge of £18,265. The service charge is CPI linked and the rate used to determine future service charges is the average CPI rate for the year at 7.8%.
STRETTONS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 22 -
22
Directors' transactions

At the balance sheet date, the company was owed an amount of £nil (2022: £9,318) by Mountgrove Properties (No.2) Limited. a company partly owned by B Tobin, a director and shareholder of Strettons Group Limited.

 

The company occupied rented properties owned by The Strettons Pension Scheme. The properties are leased on normal commercial terms and during the year rent totalling £150,089 (2022: £137,421) was charged. At the balance sheet date, an amount of £nil (2022: £nil) was owed to the company by The Strettons Pension Scheme.

 

The company also manages, free of charge, properties owned by some of the directors and their families as well as properties owned by The Strettons Pension Scheme.

 

Strettons Limited manages properties owned by companies/pensions schemes controlled by one or more of the directors. During the year, sales to such companies totalled £1,068 (2022: £5,484) and at the balance sheet date, an amount of £nil (2022: £2,280) was due to Strettons Limited.

23
Ultimate controlling party

The company is controlled by the directors of Strettons Group Limited, the parent company incorporated in England and Wales.

24
Related party transactions

The company has taken advantage of the exemption available in FRS 102 para 33.1A "Related party disclosures", whereby it has not disclosed transaction with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

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