Company registration number 03058225 (England and Wales)
ST JOHNS BUILDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
ST JOHNS BUILDINGS LIMITED
COMPANY INFORMATION
Directors
Mr R Norton
Mr P Harrison
Mr J P A O'Brien
Mr D C Taylor
Miss F Heaton
Mr P C M Aslett
Mr D Frieze
Miss L Cavanagh
Ms D White
Mr R Thyne
(Appointed 23 January 2023)
Secretary
Mr D Anderson
Company number
03058225
Registered office
24a-26 St John Street
Manchester
M3 4DJ
Auditor
MHA Moore and Smalley
Richard House
9 Winckley Square
Preston
PR1 3HP
ST JOHNS BUILDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
ST JOHNS BUILDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -

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

Strategy & Business Model

 

The primary function of St Johns Buildings Limited is to deliver clerking, practice development and support services to barristers to enable them to achieve their practice objectives. We have offices in Manchester, Chester, Liverpool, and Sheffield. We are mid-way through our current 3-year plan (2022-2024) with our board and senior management team working towards agreed goals including Continuous System & Process improvement, improved physical infrastructure, succession planning, new work streams and a continued focus on the use of technology in how we deliver case work to barristers.

 

During this period, we have undertaken a partial separation and sale of part of our Manchester premises which has provided funds for significant improvements via refurbishments in our Manchester, Chester and Liverpool sites.

Impact of External Factors

 

Since the conclusion of the Covid 19 pandemic we have been adapting to the changes brought about by the court service for less ‘in person’ hearings, the desire of lots of people to work from home and improved digital connectivity for meetings, conferences, and hearings.

 

The period of ‘strike’ by criminal barristers has concluded with significant fee increases but the resulting backlog in handling cases has led to a significant increase in work and as a consequence, barristers in this sector are extremely busy.

Business Review

 

We have recruited significant numbers of new practitioners at both pupil and experienced levels during this period although our overall number of members remains at around 240 given that we have had several retiring members and people leaving to take up full time judicial appointments. Despite no increase in member numbers, our fees to members’ receipts have increased.

 

We continue to control overhead costs very tightly and have continued to review every item of expenditure given the increases suppliers are proposing due to the cost-of-living crisis. We have significantly invested during this financial period in our Manchester, Chester & Liverpool sites in terms of modern reworking and refurbishment.

 

Our agile and flexible working changes have enabled us to work seamlessly across sites and groups within Chambers to support faster and more accurate billing and fee collection processes. This has resulted in excellent financial performance throughout Chambers. We were able to maintain reinvestment whilst not taking as much money off members to fund activities and also to invest in our staff.

 

Our involvement in legal technology developments and cutting-edge collaboration is supporting growth in existing and new case flows to barristers. We have upgraded our telephone system and other elements of ICT by completing our cloud storage projects and provided enhanced systems and training re data security.

 

Our heightened profile in the legal services sector has been maintained with significant client facing activity and improvements in our marketing & PR team, with more focussed expenditure in digital marketing and brand awareness, we are seeing positive developments for Chambers in this area.

 

We have seen strong performance at all levels and areas within Chambers this year and once again, financial targets have been exceeded.

 

ST JOHNS BUILDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
Key performance indicators

 

Actions taken over the last 12 months continue to support a cost-effective, technologically advancing business with improved liquidity, reduced long term liabilities, valuable fixed assets and increased overall net assets. We continue to review systems and processes, measuring results for income, overheads, liquidity etc.

 

 

 

KPI’s Year ended Sept

Chambers Income

Co Turnover

Overheads

Operating profit

Cash at Bank

Liquidity ratio

2023

£36m

£5.2m

£4.6m

£544k

£2.2m

4.7

2022

£34m

£4.8m

£4.6m

£256k

£1.8m

1.4

Legislative and Regulatory Risks

 

We continue to review risk identification and management through our Head of Finance & professional advisors and have a coherent compliance plan in place as part of the SJB’s finance risk management strategy. We have added general business risk and Technology business risk registers during this period.

 

We are committed to providing an efficient, effective, and expert service to all clients. All financial policies and procedures adopted by Chambers are intended to avoid, reduce, or mitigate against potential financial risk to the business or its ability to provide client services to the standard that is set for itself by the business and to the standards expected by The Bar Council. These risks might include loss of members / failure to recruit new members, lack of working capital, insufficient supervision of large projects etc.

 

We have reviewed our Compliance Plan which identifies the main roles and activities in managing financial risk & updated our Financial Risk Register categorising identified risks. Each identified risk is subject to procedural control which can be daily, weekly, monthly, or quarterly depending on the risk involved.

 

This year again our management team also led all staff and barristers through the substantial ongoing refresher training for GDPR &, heightened Cyber Security measures and training.

 

Market risk

 

Our consistent approach to risk management remains the identification of risk, assessment of the likelihood of it arising, the extent of impact if the risk was to occur, the steps to be taken to either eliminate or mitigate the risk, on-going monitoring, and review of both the risk and our control of it.

 

“Risk” for Chambers can be defined as the risk of direct or indirect loss resulting from inadequate or failed internal processes, people, and systems, and from external events (e.g., Covid). The potential cost to SJB arising from the ineffective management of risk is not limited to direct financial loss. Other types might include loss of a client, loss of Chambers good reputation and future work through recommendations, the loss of the time in dealing with problems etc.

 

Ultimately, it can be seen as events which hinder the business in achieving its objectives, namely continuing to provide a high standard of client service, supporting Barristers in the achievement of their practice objectives and to make a sustainable profit to reinvest in the future development of Chambers.

 

We continue to take the appropriate steps to mitigate the risks, future proof the business & provide a highly efficient, digitalised service to both members & clients.

 

ST JOHNS BUILDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -

 

On behalf of the board

Mr R Norton
Director
27 March 2024
ST JOHNS BUILDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -

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

Principal activities

The company's principal activity is that of the provision of chambers and clerking services to barristers at locations in Manchester, Liverpool, Chester and Sheffield.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr R Norton
Mr P Harrison
Mr J P A O'Brien
Mr D C Taylor
Miss F Heaton
Mr B Lawrence
(Resigned 23 January 2023)
Mr P C M Aslett
Mr D Frieze
Miss L Cavanagh
Ms D White
Mr R Thyne
(Appointed 23 January 2023)
Auditor

The auditor, MHA Moore and Smalley, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management objectives and policies, exposure to other risks and likely future developments.

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
Mr R Norton
Miss F Heaton
Director
Director
27 March 2024
ST JOHNS BUILDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 5 -

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.

ST JOHNS BUILDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ST JOHNS BUILDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of St Johns Buildings Limited (the 'company') for the year ended 30 September 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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.

ST JOHNS BUILDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ST JOHNS BUILDINGS LIMITED
- 7 -

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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below:

Because of the field in which the client operates, we identified the following areas as those most likely to have a material impact on the financial statements: BARMARK compliance, employment law and compliance with the UK Companies Act.

ST JOHNS BUILDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ST JOHNS BUILDINGS LIMITED
- 8 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

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.

Karen Hain
Senior Statutory Auditor
For and on behalf of MHA Moore and Smalley
Chartered Accountants
Statutory Auditor
Richard House
9 Winckley Square
Preston
PR1 3HP
30 March 2024
ST JOHNS BUILDINGS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
5,184,544
4,823,504
Administrative expenses
(4,640,526)
(4,567,192)
Operating profit
4
544,018
256,312
Interest receivable and similar income
7
20,407
1,387
Interest payable and similar expenses
6
(88,548)
(44,024)
Profit before taxation
475,877
213,675
Tax on profit
8
122,872
(67,806)
Profit for the financial year
598,749
145,869

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

ST JOHNS BUILDINGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
598,749
145,869
Other comprehensive income
Revaluation of tangible fixed assets
(32,192)
-
0
Total comprehensive income for the year
566,557
145,869
ST JOHNS BUILDINGS LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
7,229,217
7,720,714
Investments
10
4
4
7,229,221
7,720,718
Current assets
Debtors
12
637,475
302,243
Cash at bank and in hand
2,157,728
1,827,262
2,795,203
2,129,505
Creditors: amounts falling due within one year
13
(594,362)
(1,477,467)
Net current assets
2,200,841
652,038
Total assets less current liabilities
9,430,062
8,372,756
Creditors: amounts falling due after more than one year
14
(1,258,961)
(645,340)
Provisions for liabilities
Deferred tax liability
16
352,962
475,834
(352,962)
(475,834)
Net assets
7,818,139
7,251,582
Capital and reserves
Called up share capital
18
517,737
517,737
Share premium account
3,238,445
3,238,445
Revaluation reserve
2,240,056
2,821,468
Capital redemption reserve
48,962
48,962
Profit and loss reserves
1,772,939
624,970
Total equity
7,818,139
7,251,582
The financial statements were approved by the board of directors and authorised for issue on 27 March 2024 and are signed on its behalf by:
Mr R Norton
Miss F Heaton
Director
Director
Company Registration No. 03058225
ST JOHNS BUILDINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 October 2021
517,572
3,236,630
2,847,006
48,962
453,563
7,103,733
Year ended 30 September 2022:
Profit and total comprehensive income for the year
-
-
-
-
145,869
145,869
Issue of share capital
165
1,815
-
-
-
1,980
Transfers
-
-
(25,538)
-
25,538
-
Balance at 30 September 2022
517,737
3,238,445
2,821,468
48,962
624,970
7,251,582
Year ended 30 September 2023:
Profit for the year
-
-
-
-
598,749
598,749
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
(32,192)
-
-
(32,192)
Total comprehensive income for the year
-
-
(32,192)
-
598,749
566,557
Transfers
-
-
(549,220)
-
549,220
-
Balance at 30 September 2023
517,737
3,238,445
2,240,056
48,962
1,772,939
7,818,139
ST JOHNS BUILDINGS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
2,474
435,429
Interest paid
(88,548)
(44,024)
Income taxes paid
(61,296)
(106,799)
Net cash (outflow)/inflow from operating activities
(147,370)
284,606
Investing activities
Purchase of tangible fixed assets
(708,066)
(370,903)
Proceeds from disposal of tangible fixed assets
1,337,815
-
0
Interest received
20,407
1,387
Net cash generated from/(used in) investing activities
650,156
(369,516)
Financing activities
Proceeds from issue of shares
-
0
1,980
Repayment of bank loans
(172,320)
(198,709)
Net cash used in financing activities
(172,320)
(196,729)
Net increase/(decrease) in cash and cash equivalents
330,466
(281,639)
Cash and cash equivalents at beginning of year
1,827,262
2,108,901
Cash and cash equivalents at end of year
2,157,728
1,827,262
ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 14 -
1
Accounting policies
Company information

St Johns Buildings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 24a-26 St John Street, Manchester, M3 4DJ.

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. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 402 of the Companies Act 2006 not to prepare consolidated accounts as under section 405 all of the dormant subsidiary companies can be excluded from consolidation in Companies Act group accounts. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.

1.4
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:

Land and buildings
2% straight line (excluding land)
Fixtures, fittings & equipment
15% reducing balance

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 credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries 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.

ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -

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.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

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.

ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 and bank loans, 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.

ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities

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

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
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.

1.12
Retirement benefits

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

ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.13
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.

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Property valuation

Property assets are included at valuation. The last professional valuation of the properties was carried out in September 2023. The directors ongoing assessment of these valuations requires judgements to be made based on current market conditions. Where additional information is available, including offers made on properties which are for sale, this is also taken into consideration.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Member charges income
5,184,544
4,823,504
2023
2022
£
£
Other revenue
Interest income
20,407
1,387
ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 19 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
10,300
9,250
Depreciation of owned tangible fixed assets
201,377
189,969
Profit on disposal of tangible fixed assets
(371,820)
-
Operating lease charges
61,568
78,161
5
Employees

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

2023
2022
Number
Number
Administrative staff
79
76

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,779,226
2,634,303
Social security costs
283,450
277,500
Pension costs
163,672
160,548
3,226,348
3,072,351

Additional information relating to the pension costs is shown in note 17.

6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
88,548
44,024

 

ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 20 -
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
20,287
1,387
Other interest income
120
-
0
Total income
20,407
1,387
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
61,295
Deferred tax
Origination and reversal of timing differences
(122,872)
6,511
Total tax (credit)/charge
(122,872)
67,806

The actual (credit)/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
475,877
213,675
Expected tax charge based on the standard rate of corporation tax in the UK of 22.01% (2022: 19.00%)
104,741
40,598
Tax effect of expenses that are not deductible in determining taxable profit
(47,526)
9,093
Depreciation on assets not qualifying for tax allowances
-
0
22,023
Deferred tax rate difference
(14,697)
1,562
Superdeduction adjustment
(9,271)
(5,470)
Indexation relief/ gains not chargeable
(156,119)
-
0
Taxation (credit)/charge for the year
(122,872)
67,806
ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
9
Tangible fixed assets
Land and buildings
Assets under construction
Fixtures, fittings & equipment
Total
£
£
£
£
Cost or valuation
At 1 October 2022
7,325,000
250,465
1,218,396
8,793,861
Additions
131,823
633,177
15,251
780,251
Disposals
(994,404)
(70,489)
(138,723)
(1,203,616)
Revaluation
(318,749)
-
0
(384,489)
(703,238)
Transfers
813,153
(813,153)
-
0
-
0
At 30 September 2023
6,956,823
-
0
710,435
7,667,258
Depreciation and impairment
At 1 October 2022
263,700
-
0
809,447
1,073,147
Depreciation charged in the year
146,284
-
0
55,093
201,377
Eliminated in respect of disposals
(53,698)
-
0
(111,738)
(165,436)
Revaluation
(346,049)
-
0
(324,998)
(671,047)
At 30 September 2023
10,237
-
0
427,804
438,041
Carrying amount
At 30 September 2023
6,946,586
-
0
282,631
7,229,217
At 30 September 2022
7,061,300
250,465
408,949
7,720,714

The carrying value of land and buildings comprises:

2023
2022
£
£
Freehold
3,546,586
3,205,300
Long leasehold
3,400,000
3,856,000
6,946,586
7,061,300
ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
9
Tangible fixed assets
(Continued)
- 22 -

Included within land and buildings are the following freehold properties:

24A St John Street, Manchester

21 White Friars, Chester

38 Vernon Street, Liverpool and

7 Leopold Street, Sheffield

 

Also included is 26 St John Street, Manchester which is a leasehold property held on a 999 year lease from September 2002.

All of the above properties were revalued in September 2023 by Edwards & Co. Chartered Surveyors on an open market value basis.

 

The directors are not aware of any material change in value and therefore these valuations have been reflected within the accounts.

 

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2023
2022
£
£
Cost
5,367,456
5,906,233
Accumulated depreciation
(1,455,709)
(1,520,209)
Carrying value
3,911,747
4,386,024
10
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
11
4
4
11
Subsidiaries

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

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
24B St John Street (1995) Limited
England & Wales
Dormant company
Ordinary
100.00
24C St John Street (1995) Limited
England & Wales
Dormant company
Ordinary
100.00
ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 23 -
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
555,007
238,968
Other debtors
12,500
9,500
Prepayments and accrued income
69,968
53,775
637,475
302,243
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
15
176,668
962,609
Trade creditors
55,384
189,132
Corporation tax
-
0
61,295
Other taxation and social security
252,204
189,201
Other creditors
52,197
13,225
Accruals and deferred income
57,909
62,005
594,362
1,477,467
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
1,258,961
645,340
Amounts included above which fall due after five years are as follows:
Payable by instalments
544,326
253,437
15
Loans and overdrafts
2023
2022
£
£
Bank loans
1,435,629
1,607,949
Payable within one year
176,668
962,609
Payable after one year
1,258,961
645,340

The bank loans are secured by fixed charges over 24A St John Street, Manchester, 26 St John Street, Manchester, 38 Vernon Street, Liverpool and 7 Leopold Street, Sheffield.

ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 24 -
16
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:
£
£
ACAs
427,837
305,185
Tax losses
(72,062)
-
Revaluations
670
177,342
Short term timing differences
(3,483)
(6,693)
352,962
475,834
2023
Movements in the year:
£
Liability at 1 October 2022
475,834
Effect of change in tax rate - profit or loss
(122,872)
Liability at 30 September 2023
352,962

The deferred tax liability set out above is expected to reverse in future years and relates to accelerated capital allowances and revaluations that are expected to mature / be used within the same period. Also included is the balance in respect of tax losses which is expected to reverse within 12 months and relates to the tax losses against future expected profits of the same period.

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
163,672
160,548

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.

 

The charge to profit and loss is separated between employer pension contributions shown separately from employee contributions which have been deducted from staff salaries under the salary sacrifice scheme shown within wages and salaries.

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
517,737
517,737
517,737
517,737
ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 25 -
19
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for its usage of photocopiers and other IT equipment. Leases are negotiated for an average term of 5 years and rentals are fixed for an average of 5 years with no option to extend at their termination.

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

2023
2022
£
£
Within one year
39,009
49,521
Between two and five years
2,087
32,715
41,096
82,236
20
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, is as follows:

2023
2022
£
£
Aggregate compensation
1,126,318
1,102,358
21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
598,749
145,869
Adjustments for:
Taxation (credited)/charged
(122,872)
67,806
Finance costs
88,548
44,024
Investment income
(20,407)
(1,387)
Gain on disposal of tangible fixed assets
(371,820)
-
Depreciation and impairment of tangible fixed assets
201,377
189,969
Movements in working capital:
(Increase)/decrease in debtors
(335,232)
41,459
Decrease in creditors
(35,869)
(52,311)
Cash generated from operations
2,474
435,429
ST JOHNS BUILDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 26 -
22
Analysis of changes in net debt
2023
£
Opening net funds/(debt)
Cash at bank and in hand
1,827,262
Borrowings excluding overdrafts
(1,607,949)
219,313
Changes in net debt arising from:
Cash flows of the entity
502,786
Closing net funds/(debt) as analysed below
722,099
Closing net funds/(debt)
Cash at bank and in hand
2,157,728
Borrowings excluding overdrafts
(1,435,629)
722,099
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