Company Registration No. 06307541 (England and Wales)
SHERBORNE HOLDINGS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2023
10 Bridge Street
Christchurch
Dorset
BH23 1EF
SHERBORNE HOLDINGS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 6
Directors' report
7 - 8
Directors' responsibilities statement
9
Independent auditor's report
10 - 13
Profit and loss account
14
Group statement of comprehensive income
15
Group balance sheet
16 - 17
Company balance sheet
18 - 19
Group statement of changes in equity
20
Company statement of changes in equity
21
Group statement of cash flows
22
Notes to the financial statements
23 - 50
SHERBORNE HOLDINGS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr J Sherborne
Mr C Sherborne
Mr J Clark
Mr M Meyer
Mr O Sherborne
Mr R Pride
Secretary
Mr B Carr
Company number
06307541
Registered office
45-47 Ashley Road
Boscombe
Bournemouth
Dorset
BH1 4LG
Auditor
TC Group
10 Bridge Street
Christchurch
Dorset
BH23 1EF
SHERBORNE HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

The directors present the strategic report for the year ended 31 March 2023.

Fair review of the business

The group uses a range of performance indicators at branch level to manage the performance of the business. We consider that the key performance indicators relevant to the overall financial performance and strength of the group are sales, gross margin, operating profit and net assets. We comment on these below.

 

Sales for the year to 31 March 2023 were £95,359,880 (2022 - £106,525,990), a decrease of 10.5%. Gross margin decreased to 40.5% (2022 - 43.3%). Operating profit decreased to £11,155,858 (2022 - £17,911,633), down 37.7% compared to the previous year. Profit before tax decreased to £11,120,754 (2022 - £17,788,447), down 37.9% compared to the previous year.

 

During the previous year the group benefited from exceptional industry-wide factors that arose as a result of the global pandemic and the subsequent high demand for materials. These exceptional circumstances had largely run their course by the start of the year ending 31 March 2023. The elevated level of home refurbishments carried out during the pandemic had subsided and there were again greater opportunities to travel abroad for holidays, reducing domestic spending. In addition, the increased cost of living pressure from price inflation and significant interest rate rises were weighing on spending on major home improvement projects. Consequently, the sector has returned to more normal levels of market activity.

The group ended the year with net assets of £79,949,134 (2022 - £70,518,144) including cash of £5,087,961 (2022 - £9,087,580), the key elements of this strong net asset position being tangible assets, stocks and debtors.

 

A significant proportion of the assets of Sherborne Holdings Limited are the trading and investment properties. The property portfolio has performed in line with the local markets, which have remained robust in recent years. Approximately 80% of the portfolio is leased to the main trading subsidiary in the Group, Sydenhams Limited. The remaining 20% of the portfolio is leased to external commercial and residential tenants, with all properties being presently occupied.

 

Acquisitions

In April 2022, the entire share capital of M’s Building Supplies Limited was acquired by Sydenhams Limited for consideration of £1,926,386. Goodwill of £855,066 was generated by the transaction. The land and property were acquired by Sherborne Holdings for consideration £2,257,223, including professional costs.

 

In December 2022 Guernsey Building Supplies Limited acquired a larger site to allow expansion of the business in the second half of 2023-24. Consideration of £4,650,000 was paid for this site and the balance is held in capital work in progress at the year-end.

 

In May 2022 the formerly leased site in Blandford Forum, occupied by Sydenhams Hire Centres, was purchased by Sherborne Holdings for consideration £392,985 including professional fees. This site became a trading property of the Group.

 

Disposals

In June 2022 the former trading site in Maiden Bradley was sold for consideration £797,285, generating a profit on disposal of £617,535.

 

In March 2023 an investment property on Gillingham High Street was sold for consideration £570,000 generating a profit on disposal of £216,410.

 

SHERBORNE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
Principal risks and uncertainties

In addition to the risks relating to financial instruments, detailed in the Directors' Report, the directors consider the following to be the key matters of strategic importance and principal risks and uncertainties faced by the business:

 

 

Statement Of Carbon Footprint

Carbon footprint during this period: 2,527 tCO2e

 

Carbon Intensity Measure

Total size of estate: 744.1 thousand sqft.

Carbon intensity is 3.4 tCO2e per 1000 sqft.

 

Total turnover for 2023 is: 95,202 thousand £.

Carbon intensity is 0.0265 tCO2e per 1000 £.

 

Statement Of Carbon Emissions

Statement of carbon emissions compliant with UK legislation set out in the Streamlined Energy and Carbon Reporting (SECR), 21 January 2021 covering energy use and associated greenhouse gas emissions relating to gas, electricity and transport, intensity ratios and energy efficiency actions.

 

Current reporting year (April 2022 – March 2023)

Total energy use covering electricity, gas, other fuel and transport – 10,731,209 kWh (2022 - 12,025,753 kWh)

Total emissions generated through combustion of gas - 122 tCO2e (2022 - 143 tCO2e)

Total emissions generated through combustion of other fuel - 489 tCO2e (2022 – 589 tCO2e)

Total emissions generated through use of purchased electricity - 698 tCO2e (2022 – 761 tCO2e)

Total emissions generated through business travel – 1,218 tCO2e (2022 – 1,440 tCO2e)

Total gross emissions – 2,527 tCO2e (2022 – 2,932 tCO2e)

Intensity ratio (total gross emissions) - 3.40 kgCO2 per sqft (2022 – 3.98 kgCO2 per sqft)

Intensity ratio (total gross emissions) - 0.0265 kgCO2 per £ turnover (2022 - 0.0275 kgCO2 per £ turnover)

Decreased energy use due to decreased business activity, without any of the shut-down periods due to Covid-19

that were present in previous years.

 

SHERBORNE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Carbon And Energy Efficiency Actions

We are committed to responsible carbon management and will practise energy efficiency throughout our organisation, wherever it’s cost effective. We recognise that climate change is one of the most serious environmental challenges currently threatening the global community and we understand we have a role to play in reducing greenhouse gas emissions.

We have implemented the policies below for the purpose of increasing the businesses energy efficiency in the relevant financial year.

 

Methodology used in the calculation of disclosures

ESOS methodology (as specified in Complying with the Energy Savings Opportunity Scheme version 6, published by the Environment Agency, 21.01.21) used in conjunction with Government GHG reporting conversion factors.

 

For carbon only related matters, the SECR methodology as specified in "Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting and greenhouse gas reporting" was used in conjunction with Government GHG reporting conversion factors.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/850130/Env-reporting-guidance_inc_SECR_31March.pdf

 

SECR Methodology Notes

1.    SECR methodology as specified in "Environmental reporting guidelines: including Streamlined Energy and Carbon Reporting and greenhouse gas reporting" used in conjunction with Government GHG reporting conversion factors.

 

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/850130/Env-reporting-guidance_inc_SECR_31March.pdf

 

2.    Intensity ratios calculated using square footage.

-    Kg CO2e per square foot of total site area

-    Total gross emissions kg CO2e per £ turnover.

 

3.    The calculations have been approved by a PAS51215 compliant body.

 

4.    2023 turnover = £95,202,479

 

5.    Data estimation accounts for 0.65%.

SHERBORNE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
Promoting the success of the company

Overview of how the directors fulfil their duties:

 

Our Shareholders

The joint shareholders are both full time employees and members of the Board. This allows the other directors to regularly engage with the shareholders in day-to-day business, as well as at the Board meetings.

 

Our Employees

Being a family business that has been trading for almost 150 years, with many long-serving employees, reflects in the values of the group and the way in which the employees are engaged in the business activities and are fairly treated. The group has a well-developed branch structure with each branch having its own manager / assistant manager who makes many of the key decisions as to how that branch is run, alongside the Board. This allows a level of employee engagement at each branch and fosters a friendly competitive nature between the branches. Where circumstances allow, Board members perform regular branch visits and meetings are held at different sites throughout the year, which allows directors to engage directly with the employees at each site.

 

Our Customers

Providing a friendly and value-added service to customers is extremely important to the business and we pride ourselves on the relationships that we build with our customers, often over the very long-term. Management and directors, along with sales staff and sales representatives have regular dialogue with customers, responding to feedback and reacting to their needs. Given the clear and open lines of communication within the business mean that decisions can be made quickly to improve the situation for stakeholders, including customers. There are a number of non-financial KPIs that are monitored in relation to the customer accounts and these are reported to management and the Board when appropriate and are used to improve the customer relationships.

 

Our Suppliers

Maintaining a good relationship with suppliers is crucial to the success of the business and this is managed both through direct contact with the supply chain and through the use of buying groups. Along with regular communication with the key management personnel in which relationships are developed the group also prides itself on the prompt payment to suppliers. Even during the Covid-19 Pandemic, when cashflow was less certain at times, we maintained this policy. Any issues relating to supplier accounts will normally be sorted promptly either with or without Board involvement.

 

Community and Environment

The Board recognises the importance of running a group that not only generates value for the shareholders and employees but also plays its part to contribute to wider society. Whether this is in making charitable donations of either building materials, time or money to various causes, sponsoring the local sports teams, aiming to be environmentally aware and responsible in our activities, or engaging with local communities that live in the vicinity of our branches.

 

Culture

Honesty, integrity and ethical standards are at the heart of how the group operates. A prudent approach is taken to doing business and the purpose is not to create short term profits but to grow the business sustainably both organically and by acquiring appropriate businesses as they come up for sale in our geographical areas of operation. This strategy has proven successful in creating long term confidence and value in the business for our stakeholders as well as increasing the service offering that we are able to provide to both existing and new customers.

 

SHERBORNE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -

Health & Safety

The safety and well-being of our employees, customers, suppliers and wider stakeholders is of utmost priority to the group. Health & safety risk assessments are regularly carried out by our external consultant and health & safety managers to understand and minimise the risks surrounding our activities. Health & safety training for all staff and logging of incidents and near-misses is carried out using the SafetyCloud managed system and there is monthly reporting to the Board of any matters requiring attention. The Board reinforces the importance of health & safety awareness and compliance throughout the group and encourages a pro-active approach to its management.

On behalf of the board

Mr J Sherborne
Director
10 October 2023
SHERBORNE HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the group continued to be that of sale and distribution of timber and building materials, timber engineering and the hire and sale of tools. The principal activities of the company during the year were provision of services to group companies and the letting of properties.

Results and dividends

The results for the year are set out on page 14.

During the year interim equity dividends of £0.30 per ordinary share were paid totalling £806,785 in relation to the year ending 31 March 2023. The directors are proposing no final dividend for the year ended 31 March 2023 is voted.

Directors

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

Mr J Sherborne
Mr C Sherborne
Mr J Clark
Mr M Meyer
Mr O Sherborne
Mr R Pride
Directors' insurance

The group maintains professional indemnity insurance covering directors, officers and senior managerial staff.

Financial instruments

The group's principal financial instruments comprise of sterling bank balances, bank borrowings, preference shares, trade debtors and trade creditors arising from its trading activities.

 

The financial risk management objectives and policies of the group aim to minimise the risk of disruption to the business and to maintain the flexibility to react to new business opportunities. Counterparty risk relating to bank balances is managed by banking with financial institutions with strong credit ratings. Most sales are made on credit terms, and hence the group is at risk of customers defaulting on payment. This risk is managed by strict credit management procedures, and the Board review performance on a regular basis.

 

Liability and cash flow risk is managed by regular review of funding needs and maintaining borrowing facilities to enable the group to take advantage of acquisition and development opportunities as they arise.

 

The group has no material exposure to interest rate risk, price risk and foreign exchange risk.

SHERBORNE HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
Employee involvement

Group management keep employees informed of developments in the business and other matters relevant to them as employees and the performance of the group, through regular branch visits, holding board meetings at branches and the use of a staff magazine. The group encourages feedback from employees on operational and management issues relating to the running of the business.

 

Pensions

The defined benefit section of the Sydenhams Pension Scheme closed to future accrual at 31 March 2006, at which date the scheme had a deficit of £2,279,185. An actuarial update performed at 31 March 2023 demonstrated a surplus of £3,813,369 (2022 - £2,143,842) after associated deferred taxation. The group made contributions of £540,000 (2022 - £540,000) during the year.

Energy and carbon report

The directors have chosen to report on the company's emission and energy consumption within the strategic report.

Auditor

TC Group were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

On behalf of the board
Mr J Sherborne
Director
10 October 2023
SHERBORNE HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -

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:

 

 

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.

SHERBORNE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SHERBORNE HOLDINGS LIMITED
- 10 -
Opinion

We have audited the financial statements of Sherborne Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 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 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 group and parent 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 group's and parent 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.

SHERBORNE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHERBORNE HOLDINGS LIMITED
- 11 -

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:

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 their 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

SHERBORNE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHERBORNE HOLDINGS LIMITED
- 12 -
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.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

SHERBORNE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHERBORNE HOLDINGS LIMITED
- 13 -

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. 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.

James Blake FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
7 November 2023
Office: Christchurch
SHERBORNE HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
Turnover
3
95,359,879
106,525,990
Cost of sales
(56,758,015)
(60,436,918)
Gross profit
38,601,864
46,089,072
Distribution costs
(2,763,945)
(2,515,382)
Administrative expenses
(25,624,045)
(26,397,582)
Other operating income
941,983
735,525
Operating profit
4
11,155,857
17,911,633
Interest receivable and similar income
8
70,876
4,611
Interest payable and similar expenses
9
(105,980)
(127,797)
Profit before taxation
11,120,753
17,788,447
Tax on profit
10
(1,401,319)
(3,434,936)
Profit for the financial year
25
9,719,434
14,353,511
Profit for the financial year is all attributable to the owners of the parent company.
The notes on pages 23 to 50 form part of these financial statements
SHERBORNE HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
2023
2022
£
£
Profit for the year
9,719,434
14,353,511
Other comprehensive income
Actuarial gain on defined benefit pension schemes
1,064,353
1,603,842
Tax relating to other comprehensive income
(546,012)
(304,730)
Other comprehensive income for the year
518,341
1,299,112
Total comprehensive income for the year
10,237,775
15,652,623
Total comprehensive income for the year is all attributable to the owners of the parent company.
SHERBORNE HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 16 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
2,816,804
2,355,787
Other intangible assets
12
1,746,473
2,333,498
Total intangible assets
4,563,277
4,689,285
Tangible assets
13
43,061,308
33,125,543
Investment properties
14
9,131,377
9,261,377
Investments
15
160,199
160,199
56,916,161
47,236,404
Current assets
Stocks
16
20,496,473
21,411,439
Debtors
17
10,776,722
13,354,397
Cash at bank and in hand
5,087,961
9,087,580
36,361,156
43,853,416
Creditors: amounts falling due within one year
18
(13,313,364)
(19,520,945)
Net current assets
23,047,792
24,332,471
Total assets less current liabilities
79,963,953
71,568,875
Creditors: amounts falling due after more than one year
19
(1,204,700)
(1,204,700)
Provisions for liabilities
Deferred tax liability
21
2,623,488
1,989,873
(2,623,488)
(1,989,873)
Net assets excluding pension surplus
76,135,765
68,374,302
Defined benefit pension surplus
22
3,813,369
2,143,842
Net assets
79,949,134
70,518,144
SHERBORNE HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2023
31 March 2023
2023
2022
Notes
£
£
£
£
- 17 -
Capital and reserves
Called up share capital
23
2,689,284
2,689,284
Revaluation reserve
25
233,302
233,302
Profit and loss reserves
25
77,026,548
67,595,558
Total equity
79,949,134
70,518,144
The financial statements were approved by the board of directors and authorised for issue on 10 October 2023 and are signed on its behalf by:
10 October 2023
Mr J Sherborne
Mr J Clark
Director
Director
Company registration number 06307541 (England and Wales)
SHERBORNE HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 18 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
28,362,994
23,623,211
Investment properties
14
9,131,377
9,261,377
Investments
15
8,930,009
10,343,183
46,424,380
43,227,771
Current assets
Debtors
17
2,287,629
148,369
Cash at bank and in hand
357,652
-
0
2,645,281
148,369
Creditors: amounts falling due within one year
18
(5,613,199)
(8,432,217)
Net current liabilities
(2,967,918)
(8,283,848)
Total assets less current liabilities
43,456,462
34,943,923
Creditors: amounts falling due after more than one year
19
(1,204,700)
(1,204,700)
Provisions for liabilities
Deferred tax liability
21
1,784,783
1,784,783
(1,784,783)
(1,784,783)
Net assets
40,466,979
31,954,440
Capital and reserves
Called up share capital
23
2,689,284
2,689,284
Revaluation reserve
25
233,302
233,302
Profit and loss reserves
25
37,544,393
29,031,854
Total equity
40,466,979
31,954,440

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £9,319,325 (2022 - £7,824,255 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

SHERBORNE HOLDINGS LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2023
31 March 2023
- 19 -
The financial statements were approved by the board of directors and authorised for issue on 10 October 2023 and are signed on its behalf by:
10 October 2023
Mr J Sherborne
Mr J Clark
Director
Director
Company registration number 06307541 (England and Wales)
SHERBORNE HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
2,689,284
233,302
55,035,611
57,958,197
Year ended 31 March 2022:
Profit for the year
-
-
14,353,511
14,353,511
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
1,603,842
1,603,842
Tax relating to other comprehensive income
-
-
0
(304,730)
(304,730)
Total comprehensive income for the year
-
-
15,652,623
15,652,623
Dividends
11
-
-
(3,092,676)
(3,092,676)
Balance at 31 March 2022
2,689,284
233,302
67,595,558
70,518,144
Year ended 31 March 2023:
Profit for the year
-
-
9,719,434
9,719,434
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
1,064,353
1,064,353
Tax relating to other comprehensive income
-
-
0
(546,012)
(546,012)
Total comprehensive income for the year
-
-
10,237,775
10,237,775
Dividends
11
-
-
(806,785)
(806,785)
Balance at 31 March 2023
2,689,284
233,302
77,026,548
79,949,134
SHERBORNE HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
2,689,284
233,302
24,300,276
27,222,862
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
7,824,254
7,824,254
Dividends
11
-
-
(3,092,676)
(3,092,676)
Balance at 31 March 2022
2,689,284
233,302
29,031,854
31,954,440
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
9,319,324
9,319,324
Dividends
11
-
-
(806,785)
(806,785)
Balance at 31 March 2023
2,689,284
233,302
37,544,393
40,466,979
SHERBORNE HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
12,985,556
10,291,044
Interest paid
(105,980)
(127,797)
Income taxes paid
(2,376,179)
(2,882,118)
Net cash inflow from operating activities
10,503,397
7,281,129
Investing activities
Purchase of business
(1,227,834)
-
Purchase of tangible fixed assets
(12,509,762)
(3,300,493)
Proceeds on disposal of tangible fixed assets
1,325,473
466,136
Purchase of investment property
(280,000)
-
Proceeds on disposal of investment property
475,000
29,205
Proceeds on disposal of investments
-
10,000
Interest received
476
-
0
Dividends received
5,226
4,611
Net cash used in investing activities
(12,211,421)
(2,790,541)
Financing activities
Dividends paid to equity shareholders
(806,785)
(3,092,676)
Net cash used in financing activities
(806,785)
(3,092,676)
Net (decrease)/increase in cash and cash equivalents
(2,514,809)
1,397,912
Cash and cash equivalents at beginning of year
7,602,770
6,204,858
Cash and cash equivalents at end of year
5,087,961
7,602,770
Relating to:
Cash at bank and in hand
5,087,961
9,087,580
Bank overdrafts included in creditors payable within one year
-
(1,484,810)
The notes on pages 23 to 50 form part of these financial statements
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
1
Accounting policies
Company information

Sherborne Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 45-47 Ashley Road, Boscombe, Bournemouth, Dorset, BH1 4LG.

 

The group consists of Sherborne Holdings Ltd and all of its subsidiaries. The company's and group's principal activities are disclosed in the Directors' Report.

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, [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.

For the purposes of its individual financial statements, the company is a qualifying entity under the FRS 102 Reduced Disclosure Framework and has taken advantage of the exemption from the following disclosure requirement.

 

1.2
Business combinations

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. Investments 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.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 24 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Sherborne Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2023. 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 group.

 

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.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors are satisfied that the group 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.

1.5
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.

 

Turnover is recognised on dispatch of the goods or completion of services. Work in progress is invoiced on dispatch in line with the contract and cumulative project profit margins. Hire income is recognised on a straight line basis over the period of the hire contract.

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, which is considered to be 10 years.

 

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.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 25 -
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:

Customer relationships
over 10 years
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
over 50 years
Leasehold land and buildings
over 10 years
Plant and equipment
over 5 to 10 years
Fixtures and fittings
over 3 to 5 years
Motor vehicles
over 4 years

Freehold land and assets in the course of construction are not depreciated.

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
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

Property rented to a group entity is accounted for as tangible fixed assets.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 26 -
1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In 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.

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

1.11
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.

1.12
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.

 

Cost is based on the cost of purchase on a first in first out basis.

 

Where work has been undertaken on contracts but has not been fully invoiced, the amount is included in

work in progress. Work in progress is valued at materials cost. No profit margin is recognised within work in

progress.

 

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.

1.13
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.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 27 -
1.14
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 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.

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 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 28 -
1.15
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.

1.16
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.

1.17
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.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 29 -
1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.19
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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.

1.20
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.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 30 -
1.21
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 in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are described below.

 

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

 

The fixed asset depreciation charge is derived from the estimated useful economic life and residual value of the asset. These are reviewed annually alongside any impairment indicators.

 

The intangible assets are reviewed for their useful lives and carrying values on an annual basis to ensure these are consistent with expectations of future economic benefits. These reviews include intangible assets arising on business combinations.

 

Accruals for goods or services not yet invoiced are estimated based on historic activity with the supplier or quotations received ahead of invoicing.

 

The directors assess the closing debtor balances for recoverability and those not considered probable of recovery are provided for.

 

Stock is held at the lower of cost and net realisable value which is based on the estimated sales value of the asset at the year end.

 

The group operates a defined benefit pension scheme. The principle assumptions underlying the carrying value of the defined pension liability are based on advice from an independent actuary and are disclosed in the notes to the financial statements.

 

Management reviews the judgements and estimates used to determine the fair values attributed to the group's investment properties on an annual basis.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Sales and distribution of timber and building materials
87,748,761
96,751,374
Design and manufacture of engineered timber products
4,302,393
6,619,859
Tool and sales and repairs
823,191
707,407
Plant and tool hire
2,485,534
2,447,351
95,359,879
106,525,990
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
90,702,815
102,272,526
Channel Islands
4,657,064
4,253,464
95,359,879
106,525,990
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(6,446)
Depreciation of owned tangible fixed assets
2,460,857
2,449,602
Profit on disposal of tangible fixed assets
(1,042,258)
(464,975)
Profit on disposal of investment property
(213,267)
(11,705)
Amortisation of intangible assets
981,074
958,090
Operating lease charges
492,314
455,545

Government grants received are under the Coronavirus Job Retention Scheme.

5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
64,650
63,000
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
5
Auditor's remuneration
(Continued)
- 32 -
For other services
Taxation compliance services
5,725
5,000
All other non-audit services
20,050
15,750
25,775
20,750
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Merchanting
435
456
-
-
Office and management
42
42
8
8
Total
477
498
8
8

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
15,161,828
16,101,053
516,168
530,506
Social security costs
1,458,106
1,325,394
66,920
65,560
Pension costs
1,226,499
1,092,119
28,291
26,948
17,846,433
18,518,566
611,379
623,014
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
399,571
390,264
Company pension contributions to defined contribution schemes
9,283
8,357
408,854
398,621
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
7
Directors' remuneration
(Continued)
- 33 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 4 (2022 - 4).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
167,148
162,338
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
93
-
0
Interest on the net defined benefit asset
65,174
-
0
Other interest income
383
-
Total interest revenue
65,650
-
Other income from investments
Dividends received
5,226
4,611
Total income
70,876
4,611
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
338
-
Dividends on redeemable preference shares not classified as equity
60,235
60,235
Bank and other interest payable
36,199
128,425
Interest on finance leases and hire purchase contracts
9,208
9,826
Total finance costs
105,980
127,797
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 34 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,422,503
3,313,541
Adjustments in respect of prior periods
(108,786)
-
0
Total current tax
1,313,717
3,313,541
Deferred tax
Origination and reversal of timing differences
87,602
121,395
Total tax charge
1,401,319
3,434,936

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
11,120,753
17,788,447
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
2,112,943
3,379,805
Tax effect of expenses that are not deductible in determining taxable profit
34,095
49,032
Gains not taxable
(186,939)
-
0
Change in unrecognised deferred tax
-
0
50,056
Effect of change in corporation tax rate
126,628
349,371
Effect of overseas tax rates
(167,123)
(146,301)
Under/(over) provided in prior years
(112,564)
-
0
Deferred tax adjustments in respect of prior years
(309,995)
(205,990)
Enhanced capital allowances
(95,726)
(41,037)
Taxation charge
1,401,319
3,434,936
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 35 -

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
546,012
304,730

On the 3rd March 2021 the UK Government announced that the UK Corporation tax rate would increase from 19% to 25% from 1st April 2023.

11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
-
2,285,891
Interim paid
806,785
806,785
806,785
3,092,676
Full details of dividends are included in the director's report.
12
Intangible fixed assets
Group
Goodwill
Customer relationships
Total
£
£
£
Cost
At 1 April 2022
3,039,530
8,240,407
11,279,937
Additions
855,066
-
0
855,066
At 31 March 2023
3,894,596
8,240,407
12,135,003
Amortisation and impairment
At 1 April 2022
683,743
5,906,909
6,590,652
Amortisation charged for the year
394,049
587,025
981,074
At 31 March 2023
1,077,792
6,493,934
7,571,726
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Intangible fixed assets
(Continued)
- 36 -
Carrying amount
At 31 March 2023
2,816,804
1,746,473
4,563,277
At 31 March 2022
2,355,787
2,333,498
4,689,285
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 37 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2022
27,523,767
-
0
3,872,617
8,952,935
4,525,436
7,120,644
51,995,399
Additions
110,485
33,250
8,949,287
1,791,602
527,740
1,253,488
12,665,852
Disposals
(771,913)
-
0
-
0
(1,085,365)
(111,214)
(343,537)
(2,312,029)
Transfers
3,772,979
-
0
(3,784,194)
-
0
11,215
-
0
-
0
Other changes
-
0
-
0
(38,609)
-
0
-
0
-
0
(38,609)
At 31 March 2023
30,635,318
33,250
8,999,101
9,659,172
4,953,177
8,030,595
62,310,613
Depreciation and impairment
At 1 April 2022
4,233,932
-
0
-
0
5,382,079
3,584,173
5,669,672
18,869,856
Depreciation charged in the year
323,933
9,625
-
0
870,499
336,492
920,308
2,460,857
Eliminated in respect of disposals
(641,663)
-
0
-
0
(985,039)
(108,925)
(345,781)
(2,081,408)
At 31 March 2023
3,916,202
9,625
-
0
5,267,539
3,811,740
6,244,199
19,249,305
Carrying amount
At 31 March 2023
26,719,116
23,625
8,999,101
4,391,633
1,141,437
1,786,396
43,061,308
At 31 March 2022
23,289,835
-
0
3,872,617
3,570,856
941,263
1,450,972
33,125,543
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 38 -
Company
Freehold land and buildings
Assets under construction
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
24,040,985
3,694,444
149,447
91,115
27,975,991
Additions
1,385,485
3,834,112
3,517
-
0
5,223,114
Disposals
(771,913)
-
0
-
0
-
0
(771,913)
Transfers
3,772,979
(3,772,979)
-
0
-
0
-
0
Other changes
-
0
(38,609)
-
0
-
0
(38,609)
At 31 March 2023
28,427,536
3,716,968
152,964
91,115
32,388,583
Depreciation and impairment
At 1 April 2022
4,162,511
-
0
148,781
41,488
4,352,780
Depreciation charged in the year
296,198
-
0
1,090
17,184
314,472
Eliminated in respect of disposals
(641,663)
-
0
-
0
-
0
(641,663)
At 31 March 2023
3,817,046
-
0
149,871
58,672
4,025,589
Carrying amount
At 31 March 2023
24,610,490
3,716,968
3,093
32,443
28,362,994
At 31 March 2022
19,878,474
3,694,444
666
49,627
23,623,211
14
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 April 2022
9,261,377
9,261,377
Additions through external acquisition
280,000
280,000
Disposals
(410,000)
(410,000)
At 31 March 2023
9,131,377
9,131,377

The 2023 valuations were made by the directors, on an open market value for existing use basis.

If the investment properties had been accounted for under the historic cost accounting rules, the properties would be valued at £3,491,794 (2022: £3,565,967).

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 39 -
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
-
0
-
0
8,770,760
10,183,934
Listed investments
159,249
159,249
159,249
159,249
Unlisted investments
950
950
-
0
-
0
160,199
160,199
8,930,009
10,343,183

Investments in subsidiaries reflect the company's interest in the entire issued ordinary share capital of Sydenhams Limited and Isobar Properties Limited, Sydenhams Limited holds the entire issued ordinary share capital of Sydenhams Timber Engineering Limited, Sydenhams Hire Centres Limited, A Grade Timber Limited, Guernsey Building Supplies Limited, M's Building Supplies Limited, Avon Plywood Limited and Tipadel Limited.

 

The principle activities of Sydenhams Limited are the sale and distribution of timber and building materials. Those of Sydenhams Timber Engineering Limited are the design and manufacture of engineered timber products, those of Sydenhams Hire Centres Limited are tool hire, tool sales and repairs, those of Guernsey Building Supplies Limited and M's Building Supplies Limited are the sale and distribution of timber and building materials.

 

A Grade Timber Limited, Tipadel Limited, and Avon Plywood Limited are dormant companies.

 

All subsidiaries are incorporated in the United Kingdom and registered in England and Wales other than Guernsey Building Supplies Limited which is incorporated in Guernsey. The registered office of the UK subsidiaries is 45-47 Ashley Road, Boscombe, Bournemouth, Dorset, BH1 4LG.

 

The registered office of the Guernsey subsidiary is Route de la Garenne, Pitronnerie Road, St Peter Port, Guernsey, GY1 2RA.

 

Sydenhams Limited, Sydenhams Timber Engineering Limited, Sydenhams Hire Centres Limited and M's Building Supplies Limited are audited. Guernsey Building Supplies Limited has an indefinite audit waiver. Isobar Properties Limited has taken advantage of the audit exemption available to subsidiary companies under section 479A of the Companies Act 2006.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
15
Fixed asset investments
(Continued)
- 40 -
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 April 2022 and 31 March 2023
160,199
Carrying amount
At 31 March 2023
160,199
At 31 March 2022
160,199
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 April 2022 and 31 March 2023
10,183,934
159,249
10,343,183
Impairment
At 1 April 2022
-
-
-
Impairment losses
1,413,174
-
1,413,174
At 31 March 2023
1,413,174
-
1,413,174
Carrying amount
At 31 March 2023
8,770,760
159,249
8,930,009
At 31 March 2022
10,183,934
159,249
10,343,183
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
20,496,473
21,411,439
-
0
-
0
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 41 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
8,311,713
10,799,606
-
0
-
0
Amounts owed by group undertakings
-
-
2,201,318
-
Other debtors
2,282,132
2,266,584
86,311
148,369
Prepayments and accrued income
182,877
288,207
-
0
-
0
10,776,722
13,354,397
2,287,629
148,369
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
-
0
1,484,810
-
0
1,484,810
Trade creditors
7,896,798
8,372,008
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
5,273,229
5,144,914
Corporation tax payable
289,503
1,702,926
108,471
273,364
Other taxation and social security
1,163,631
1,596,425
-
-
Other creditors
67,318
1,367,318
67,318
1,367,318
Accruals and deferred income
3,896,114
4,997,458
164,181
161,811
13,313,364
19,520,945
5,613,199
8,432,217
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
1,204,700 5% preference shares
20
1,204,700
1,204,700
1,204,700
1,204,700
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 42 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank overdrafts
-
0
1,484,810
-
0
1,484,810
Preference shares
1,204,700
1,204,700
1,204,700
1,204,700
1,204,700
2,689,510
1,204,700
2,689,510
Payable within one year
-
0
1,484,810
-
0
1,484,810
Payable after one year
1,204,700
1,204,700
1,204,700
1,204,700

The overdraft is secured by way of a charge over the freehold properties at Shaftesbury Road, Gillingham; Winnall Industrial Estate, Winchester; Manor Way, Frome; Churchfields Industrial Estate, Salisbury; Ashley Road, Boscombe; and Centurion Way, Warminster.

 

The 5% cumulative preference shares of £1 each confer no voting rights and have no rights to dividends other than a fixed cumulative dividend of 5%. On winding up, they rank ahead of ordinary shares and will be repaid at par. They carry no right to participate in the profits or the capital of the company and are therefore classified as non-equity shares.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Fixed asset timing differences
466,411
670,101
Revaluations
2,227,464
1,455,711
Retirement benefit obligations
546,012
407,330
Long service employment provisions
(616,399)
(543,269)
2,623,488
1,989,873
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
21
Deferred taxation
(Continued)
- 43 -
Liabilities
Liabilities
2023
2022
Company
£
£
Fixed asset timing differences
-
329,072
Revaluations
1,784,783
1,455,711
1,784,783
1,784,783
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
1,989,873
1,784,783
Credit to profit or loss
(181,572)
-
Charge to other comprehensive income
546,012
-
Charge to equity
269,175
-
Liability at 31 March 2023
2,623,488
1,784,783
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,226,499
1,092,119

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.

Defined benefit schemes

The group operates a defined benefit pension scheme.

 

The defined contribution section closed with effect from 31 March 2012 and was replaced with a group personal pension scheme. Contributions to the group personal pensions scheme during the year are disclosed in note 6.

 

The defined benefit section closed to future accrual at 31 March 2006. The latest actuarial update at 31 March 2023 showed an increase in the surplus from £2,143,842 to £3,813,369. The scheme's assets are held in independent, trustee-administered funds. The pension asset is shown net of deferred tax.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
22
Retirement benefit schemes
(Continued)
- 44 -
2023
2022
Key assumptions
%
%
Discount rate
4.7
2.7
Expected rate of increase of pensions in payment
5.0
5.0
Expected rate of salary increases
n/a
n/a
Inflation (RPI)
3.5
3.6
Inflation (CPI)
2.7
2.7
Mortality assumptions
2023
2022

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
22.2
21.8
- Females
23.8
24
Retiring in 20 years
- Males
23.8
22.8
- Females
25
24.8

Mortality - prior to retirement assumes AMN00/AFN00 (2022 - AMN00/AFN00). Mortality post-retirement for deferred pensioners, inured pensions and scheme pensioners assumes 100% S3PMA/105% S3PFA, CMI 2021 model with long-term improvement 1.5% pa (M) and 1.0% pa (F) (2022 - S3PMA/S3PFA, CMI 2020 model with long-term improvement 1.0% pa (M) and 0.75% pa (F)).

 

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2023
2022
Group
£
£
Present value of defined benefit obligations
(14,202,449)
(18,715,919)
Fair value of plan assets
18,015,818
20,859,761
Deficit in scheme
3,813,369
2,143,842
Deferred taxation balance relating to pension schemes
(546,012)
(407,330)
Total asset/(liability) recognised
3,267,357
1,736,512
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
22
Retirement benefit schemes
(Continued)
- 45 -

Reconciliation of present value of plan liabilities:         2023 2022

                             £ £    

    

At the beginning of the year                 18,715,919 21,386,815

Interest cost     494,338 415,502

Actuarial gains                         (4,193,616) (1,863,001)

Benefits paid                         (814,192) (1,223,397)

At the end of the year                     14,202,449 18,715,919

    

Reconciliation of present value of plan assets:              2023 2022

                             £     £

At the beginning of the year                 20,859,761 21,409,125

Interest income                 559,512 421,349

Actuarial gains/(losses)                     (3,129,263) (287,316)

Contributions                 540,000 540,000

Benefits paid                 (814,192) (1,223,397)

At the end of the year         18,015,818 20,859,761

 

Group
2023
2022

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(2,569,751)
162,190
Less: calculated interest element
(559,512)
(421,349)
Return on scheme assets excluding interest income
(3,129,263)
(259,159)
Actuarial changes related to obligations
4,193,616
1,863,001
Deferred taxation balance relating to pension schemes
(546,012)
(407,330)
Total costs
518,341
1,196,512
Group
2023

The defined benefit obligations arise from plans funded as follows:

£
Wholly unfunded obligations
-
Wholly or partly funded obligations
(14,202,449)
(14,202,449)
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
22
Retirement benefit schemes
(Continued)
- 46 -

Fair value of plan assets at the reporting period end

Group
2023
2022
£
£
Equity instruments
2,350,340
5,178,044
Bonds
13,614,689
12,235,357
Annuities
1,191,662
1,413,039
Global real estate & infrastructure
612,371
1,517,054
Cash
246,756
516,267
18,015,818
20,859,761
The company is not party to the rights and obligations associated with the defined benefit pension scheme.
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2,689,284
2,689,284
2,689,284
2,689,284
24
Fair value reserve

The fair value reserve reflects cumulative gains and losses in the fair value of investment properties.

25
Reserves
Profit and loss reserves

The profit and loss account reflects cumulative profits and losses net of distributions to members.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 47 -
26
Acquisition of a business

On 25 April 2022 the group acquired 100 percent of the issued capital of M's Building Supplies Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
53,989
102,101
156,090
Inventories
350,000
-
350,000
Trade and other receivables
148,989
-
148,989
Cash and cash equivalents
698,552
-
698,552
Trade and other payables
(172,665)
-
(172,665)
Tax liabilities
(109,646)
-
(109,646)
Total identifiable net assets
969,219
102,101
1,071,320
Goodwill
855,066
Total consideration
1,926,386
The consideration was satisfied by:
£
Cash
1,926,386
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
-
Loss after tax
(71,731)

The goodwill arising on the acquisition of the business is attributable to the anticipated profitability of the distribution of the company's products in new markets and the future operating synergies from the combination.

27
Financial commitments, guarantees and contingent liabilities

The company is jointly and severally liable for the VAT liability of the group of which it is a member. At the year end the group liability was £817,096 (2022: £1,247,424).

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 48 -
28
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
425,449
405,994
282,022
232,468
Between two and five years
1,257,288
1,054,515
797,390
619,400
In over five years
3,144,094
3,349,749
3,144,094
3,271,319
4,826,831
4,810,258
4,223,506
4,123,187
Lessor

The operating leases represent leases to third parties.

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
573,635
608,885
573,635
608,885
Between two and five years
1,704,773
1,585,158
1,704,773
1,585,158
In over five years
1,183,042
932,292
1,183,042
932,292
3,461,450
3,126,335
3,461,450
3,126,335
29
Related party transactions
Remuneration of key management personnel

The remuneration of the group's key management personnel, who are the statutory directors of each of the companies of the group, is as follows:

2023
2022
£
£
Aggregate compensation
1,345,617
1,605,333
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
29
Related party transactions
(Continued)
- 49 -
Other information

During the year, consistent with their interests in the issued share capital of the company, close members of the families directors' received, in aggregate, preference dividends of £60,235 (2022: £60,235).

 

All dividends paid as disclosed in note 12 were to the directors and their close family members.

 

During the year, the directors maintained directors loan accounts with the group. At the start of the year the group owed the directors' £1,300,000. During the year, the directors were fully repaid leaving no outstanding balances at the year end. The balances accrued interest at a rate of 4.3% and interest of £45,617 was charged in respect of this.

 

Transactions with other related parties

 

The company has taken advantage of the exemption available under Section 33 of FRS 102 from disclosing transactions with wholly-owned group companies.

30
Controlling party

The ultimate controlling parties are the majority shareholders C J Sherborne and J R Sherborne.

31
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
9,719,434
14,353,511
Adjustments for:
Taxation charged
1,401,319
3,434,936
Finance costs
105,980
127,797
Investment income
(70,876)
(4,611)
Gain on disposal of tangible fixed assets
(1,042,258)
(464,975)
Gain on disposal of investment property
(213,267)
(11,705)
Amortisation and impairment of intangible assets
981,074
958,090
Depreciation and impairment of tangible fixed assets
2,460,857
2,449,602
Pension scheme non-cash movement
(540,000)
(540,000)
Movements in working capital:
Decrease/(increase) in stocks
914,966
(6,478,012)
Decrease/(increase) in debtors
2,577,675
(1,436,696)
Decrease in creditors
(3,309,348)
(2,096,893)
Cash generated from operations
12,985,556
10,291,044
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 50 -
32
Analysis of changes in net funds - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
9,087,580
(3,999,619)
5,087,961
Bank overdrafts
(1,484,810)
1,484,810
-
0
7,602,770
(2,514,809)
5,087,961
Borrowings excluding overdrafts
(1,204,700)
-
(1,204,700)
6,398,070
(2,514,809)
3,883,261
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300Mr J SherborneMr C SherborneMr J ClarkMr M MeyerMr O SherborneMr R PrideMr B 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