Company registration number 02529442 (England and Wales)
SALLY CLARKE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
PAGES FOR FILING WITH REGISTRAR
SALLY CLARKE LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
SALLY CLARKE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2023
31 August 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
4,251,037
4,431,361
Investments
4
446,005
446,005
4,697,042
4,877,366
Current assets
Debtors
5
2,611,085
3,534,156
Cash at bank and in hand
1,480
910
2,612,565
3,535,066
Creditors: amounts falling due within one year
6
(4,022,510)
(4,038,248)
Net current liabilities
(1,409,945)
(503,182)
Total assets less current liabilities
3,287,097
4,374,184
Creditors: amounts falling due after more than one year
7
(2,313,595)
(2,620,910)
Net assets
973,502
1,753,274
Capital and reserves
Called up share capital
8
73,960
73,960
Share premium account
116,010
116,010
Revaluation reserve
9
2,159,485
2,159,485
Profit and loss reserves
(1,375,953)
(596,181)
Total equity
973,502
1,753,274

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 21 August 2024 and are signed on its behalf by:
J E Morton Morris
Director
Company Registration No. 02529442
SALLY CLARKE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -
1
Accounting policies
Company information

Sally Clarke Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, Regis House, 45 King William Street, London, United Kingdom, EC4R 9AN.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the truegroup has adequate resources to continue in operational existence for the foreseeable future.

 

The directors note that included within loans and overdrafts (note 11) is a mortgage with a balance of £2.4m secured against the freehold property. This mortgage is due for repayment in March 2025 and the Company will shortly be entering into negotiations to refinance these borrowings. In the opinion of the directors the value of the property secured against this finance remains significantly above the level of borrowing required for the business. The directors are in the process of obtaining valuations of the property which will further support the application to refinance the loan.

 

The directors therefore continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

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:

Freehold land and buildings
Building depreciated over 33 years, land not depreciated
Leasehold improvements
Over the length of the lease

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.

SALLY CLARKE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 3 -
1.5
Fixed asset investments

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

1.6
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.

1.7
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 statement of financial position 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.

Derecognition of financial assets

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

cancelled.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

SALLY CLARKE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 4 -
1.8
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.

1.9
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 income statement 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.

1.10
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.

1.11
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
Employees

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

2023
2022
Number
Number
Directors
2
2
SALLY CLARKE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 5 -
3
Tangible fixed assets
Land and buildings
£
Cost or valuation
At 1 September 2022 and 31 August 2023
5,901,950
Depreciation and impairment
At 1 September 2022
1,470,589
Depreciation charged in the year
180,324
At 31 August 2023
1,650,913
Carrying amount
At 31 August 2023
4,251,037
At 31 August 2022
4,431,361

Included within the net book value of land and buildings above is £3,961,832 (2022 - £4,105,983) in respect of freehold land and buildings and £289,205 (2022 - £325,376) in respect of improvements to leasehold premises.

The fair value of the company's freehold property was revalued on 31 January 2020 by an independent valuer. Where the directors consider that there has been a material change in the valuation of the property between formal valuations they would then revalue the property to reflect its current market value.

 

The directors are satisfied that the value of the property is not less than the amount shown in the financial statements.

 

The name and qualification of the independent valuer are Savills Chartered Surveyors who are external to the company, in accordance with guidelines in issue by The Royal Institution of Chartered Surveyors.

 

Had this class of asset been measured on a historical cost basis, the carrying amount would have been £1,991,271 (2022: £2,040,961).

4
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
446,005
446,005
SALLY CLARKE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 6 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
2,461,341
3,392,162
Other debtors
78,264
83,897
Prepayments and accrued income
71,480
58,097
2,611,085
3,534,156

Due after more than one year:

 

£31,250 (2022 - £56,250) of other debtors is classified as due after more than one year.

6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
299,764
244,240
Other borrowings
2,812,604
2,830,144
Trade creditors
49,770
74,685
Amounts owed to group undertakings
796,136
827,987
Taxation and social security
12,736
10,804
Other creditors
7,043
8,066
Accruals and deferred income
44,457
42,322
4,022,510
4,038,248
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
2,123,595
2,430,910
Other creditors
190,000
190,000
2,313,595
2,620,910
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
73,960
73,960
73,960
73,960

The whole of the issued share capital (2022 - whole) is owned, by the immediate parent, Lydling Holdings Limited (see note 13) and consequently no consolidated accounts are produced for the Sally Clarke group of companies.

SALLY CLARKE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 7 -
9
Revaluation reserve
2023
2022
£
£
At the beginning and end of the year
2,159,485
2,159,485
10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Emphasis of matter

We draw attention to note 1.2 of the financial statements, which describes the directors’ policy and actions in relation to borrowings secured again the Company’s properties. Our opinion is not modified in respect of this matter.

Senior Statutory Auditor:
John Howard
Statutory Auditor:
Azets Audit Services
11
Operating lease commitments
Lessee

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

2023
2022
£
£
823,125
915,625
12
Related party transactions
Transactions with related parties

During the year the company entered into transactions in the ordinary course of business with related parties as follows:

Rents Received
2023
2022
£
£
Notting Hill Bakery
152,000
151,548
Sally Clarke Restaurant Limited
120,000
120,000
2023
2022
Amounts due to related parties
£
£
Sally Clarke Retail Limited
796,136
827,987
SALLY CLARKE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
12
Related party transactions
(Continued)
- 8 -

The following amounts were outstanding at the reporting end date:

2023
2023
2023
Balance
Provision
Net
Amounts due from related parties
£
£
£
Sally Clarke Restaurant Limited
962,893
-
962,893
Sally Clarke (Westbourne Grove) Limited
132,004
-
132,004
Sally Clarke Kitchen Limited
866,621
866,621
-
2022
2022
2022
Balance
Provision
Net
Amounts due in previous period
£
£
£
Sally Clarke Restaurant Limited
1,398,979
-
1,398,979
Sally Clarke (Westbourne Grove) Limited
125,623
-
125,623
Sally Clarke Kitchen Limited
810,698
-
810,698
13
Parent company

The company's immediate parent is Lydling Holdings Limited, incorporated in England and Wales.

The ultimate controlling party is the Lydling Trust.

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