Year Ended
Registration number:
St Aubyn Estates Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
St Aubyn Estates Limited
Company Information
Directors |
Lady M St Levan Lord J St Levan H J St Aubyn F J St Aubyn A C Lavery S Sweetland |
Registered office |
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Solicitors |
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Bankers |
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Auditors |
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St Aubyn Estates Limited
Strategic Report for the Year Ended 31 December 2023
The directors present their strategic report for the year ended 31 December 2023.
Principal activity
St Aubyn Estates Limited has two principal activities, being firstly to act as the management company for the wider St Aubyn Estates, and secondly to be the legal entity under which a number of individual businesses operate.
Management Company for the wider St Aubyn Estates
The company provides services to the family estate, including estate management, land & property management, finance, payroll, marketing and administration. The family estate incorporates a number of Trusts, partnerships and sole trading businesses which include the operation of the visitor attraction of St Michael’s Mount and land across West Cornwall. It also includes support of the St Aubyn Foundation, the St Aubyn family’s charity that awards grants primarily to local organisations and community groups, as well as operating a learning initiative.
Business Operations
Two principal business trades are carried out under St Aubyn Estates Limited, being:
Hospitality - the operation of the Beach Box.
Building and Construction - a building company with particular expertise in the heritage sector, trading as Cornish Heritage Builders.
Fair review of the business
The financial year has seen a profit recorded of £1,061,449 (2022: £1,115,310). The main driver was the successful performance of Cornish Heritage Builders, which increased both turnover and profitability.
Rental income from the Godolphin was as expected and paid within the terms of the agreement with our tenant.
Estate management was profitable, but failed to reach its budget due to a number of one-off costs.
The Beach Box had a reduced turnover during the year, but made a modest profit as a result of tighter cost control.
The company continues to commit to the integration of sustainability into the various St Aubyn entities it manages. This is demonstrated with the progression of accreditation through the Green Dragon Environmental Management System tiers. Sustainability meetings have increased throughout the management structure and a Sustainability Strategy Board has been formed meeting monthly. The company continues to engage with key sustainability stakeholders regularly.
The split of turnover by segment is as below. These figures exclude intra-company trading, predominantly building work undertaken by Cornish Heritage Builders within the Hospitality businesses, and management fees charged by the Estate Management division to the operational hospitality and building businesses. These management fees include finance, IT and marketing support.
St Aubyn Estates Limited
Strategic Report for the Year Ended 31 December 2023
Business Segment |
Year Ended 2023 |
Year Ended 2022 |
|
£ |
£ |
||
Cornwall Heritage Builders |
4,049,673 |
3,272,504 |
|
Hospitality |
197,009 |
246,449 |
|
Estate Management |
2,892,492 |
2,505,055 |
|
Godolphin Arms rental income |
260,220 |
260,000 |
|
Total |
7,399,394 |
6,284,008 |
Estate Management
The Estate Management function includes accounts, payroll, IT, marketing and land and property management. These costs are recharged to other areas of the businesses both within the company and to the wider Estate. Management fees to estate entities continue at pre-pandemic levels.
Balance Sheet
The Godolphin was revalued on 1st March 2019 at a figure of £3.85m, the valuation was on an existing use basis. The asset is now operated as a leased asset. The directors have reviewed the valuation and have confirmed that £3.85m is their estimate of its value for its new use.
Prospects and Post Balance Sheet Events
Trading across all business units looks promising in both the short term and the longer term.
The bank loan from Barclays Bank was repaid in full when it fell due in March 2024.
Business Systems
The company measures key performance indicators (including financial measures) on a regular basis across the various business segments, with management reporting on a timely basis. The full Board meets once per quarter to review business performance.
St Aubyn Estates Limited
Strategic Report for the Year Ended 31 December 2023
Principal risks and uncertainties
The management and Board regularly review the risks which the business faces and makes appropriate plans to mitigate such risks. The key business risks and uncertainties include:
• There were a number of departures at senior executive level during the year. While these positions have all since been filled, the retention of key personnel remains an important priority.
• The pension scheme could result in deficit increases at a future date, but the most recent valuation of the scheme’s assets and liabilities has demonstrated a markedly improved position.
• Risk of IT security breach could result in loss of data, or an inability to use the systems. The company is managing this risk by retaining external IT advisors. Management have commissioned an external audit of current systems and levels of protection, and all staff are directed to maintain vigilent to avoid attempted breaches.
• Exposure to credit risk for our building activities, particularly with large contracts. This is managed by working with trusted credit-worthy clients and monitoring payments closely.
• Inflationary pressures pose several risks and uncertainties for the UK economy. Key risks impacting on the business are:
- Increase in material prices - this will be managed by ensuring contracts include provisions for increase in material costs and regular monitoring of contracts.
- Recruitment of staff - though the new business structure has reduced the need for hospitality staff, there are still issues recruiting and retaining new staff due to the continued competitive market. The company is reviewing pay, benefit, and recruitment policies to manage this risk.
- Reduced visitor numbers to Cornwall would be liable to feed through to a lower level of management fees.
Approved and authorised by the
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St Aubyn Estates Limited
Directors' Report for the Year Ended 31 December 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Material financial instruments include a bank loan (total balance £1.2m at balance sheet date), which is at a fixed rate of interest for the five years to February 2024. This loan was established in February 2019 to replace two previous bank loans and the existing overdraft, all of which were at a variable rate based on the Bank of England interest rates. Therefore, the business exposure to interest rate risk has been reduced. The loan was repaid in full in March 2024.
The company does not currently hedge this nor any other risks, and does not use hedge accounting.
Going concern
The Company has operated profitability the last few years.
The combination of operating the asset of The Godolphin as an investment property and strong Cornish Heritage Builders and Estate Management business will mean that the company can continue to operate profitably into future years, as it has in 2023. The bank loan was fully repaid in March 2024 and the Estate cash balances are available if necessary to provide cashflow.
Going forward the operations of the company should result in positive cash. In addition, St Aubyn Estates Limited is part of the wider portfolio of the St Aubyn family of businesses and as such is able to benefit from the cash flow available through these other operations. Because of the relationship between the company, the ultimate holding company, and the other businesses, all of which are effectively under the control of the St Aubyn family, the directors are able to rely on the wider financial support to ensure that St Aubyn Estates Limited is considered as a going concern and is able to meet its liabilities as they fall due.
St Aubyn Estates Limited
Directors' Report for the Year Ended 31 December 2023
Disclosure of information to the auditors
Each director has taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
......................................... |
St Aubyn Estates Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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 Aubyn Estates Limited
Independent Auditor's Report to the Members of St Aubyn Estates Limited
Opinion
We have audited the financial statements of St Aubyn Estates Limited (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of 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:
• | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
St Aubyn Estates Limited
Independent Auditor's Report to the Members of St Aubyn Estates Limited
We have nothing to report in this regard.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 7, 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 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
St Aubyn Estates Limited
Independent Auditor's Report to the Members of St Aubyn Estates Limited
As part of the audit planning, we obtained an understanding of the legal and regulatory framework that is applicable to the company and the sector in which the company operates. The key regulations we identified included registration with the Food Standards Agency, alcohol licensing, health and safety regulations due to the employment of staff and the hosting of the public and compliance with grant conditions. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as The Companies Act 2006 and corporation tax legislation.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place. As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity's ability to continue trading and the risk of material misstatement to the accounts.
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur as part of the audit planning process. We determined that these risks are low considering the fact that the company operates with a management board who provide external scrutiny, and a pay review system which is not financial performance based, and so there would be no motivation for management to influence performance for individual gain.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures included the following:
• We reviewed legal and professional costs to identify any possible non-compliance or legal costs in respect of non-compliance.
• We reviewed board minutes, for instances of non compliance.
• We obtained copies of the Company’s health and safety policies and reviewed these for appropriateness, framed in our understanding of the sector.
• We performed a search to confirm the company held its food hygiene certificate and had adhered to relevant food hygiene laws.
• We reviewed the company's accounting estimates for bias
• We made enquires of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements.
• We reviewed a sample of expenditure to ensure it was appropriate to the running of the business.
• We audited the risk of mangement override of controls through testing journal entries and other adjustments for appropriateness and evaluating the business rationale of significant transactions outside the normal course of business.
As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which there were none.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description froms part of our auditor's report.
St Aubyn Estates Limited
Independent Auditor's Report to the Members of St Aubyn Estates Limited
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.
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Lowin House
Tregolls Road
Cornwall
TR1 2NA
St Aubyn Estates Limited
Profit and Loss Account
Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
- |
|
Interest payable and similar charges |
( |
( |
|
(53,290) |
(56,336) |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
St Aubyn Estates Limited
Statement of Comprehensive Income
Year Ended 31 December 2023
2023 |
2022 |
|
Profit for the year |
|
|
Actuarial gain/(loss) on defined benefit pension schemes |
( |
|
Total comprehensive income for the year |
|
|
St Aubyn Estates Limited
Balance Sheet
31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
- |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Share premium reserve |
|
|
|
Revaluation reserve |
|
|
|
Profit and loss account |
( |
( |
|
Total equity |
|
|
Approved and authorised by the
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Company Registration Number: 00392156
St Aubyn Estates Limited
Statement of Changes in Equity
Year Ended 31 December 2023
Share capital |
Share premium |
Revaluation reserve |
Pension Scheme reserve |
Profit and loss account |
Total |
|
At 1 January 2023 |
|
|
|
- |
( |
|
Profit for the year |
- |
- |
- |
- |
|
|
Other comprehensive income |
- |
- |
- |
( |
- |
( |
Total comprehensive income |
- |
- |
- |
( |
|
|
Transfers |
- |
- |
- |
250,004 |
(250,004) |
- |
At 31 December 2023 |
|
|
|
- |
( |
|
The Pension Scheme reserve and Profit and Loss account represent distributable reserves.
St Aubyn Estates Limited
Statement of Changes in Equity
Year Ended 31 December 2023
Share capital |
Share premium |
Revaluation reserve |
Pension Scheme reserve |
Profit and loss account |
Total |
|
At 1 January 2022 |
|
|
|
( |
( |
|
Profit for the year |
- |
- |
- |
- |
|
|
Other comprehensive income |
- |
- |
- |
|
- |
|
Total comprehensive income |
- |
- |
- |
|
|
|
Transfers |
- |
- |
- |
228,000 |
(228,000) |
- |
At 31 December 2022 |
|
|
|
- |
( |
|
St Aubyn Estates Limited
Statement of Cash Flows
Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss from disposals of investments |
|
- |
|
Profit/loss on disposal of tangible assets |
1,950 |
(11,267) |
|
Finance income |
( |
- |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
Pension Scheme contribution paid |
(218,004) |
(232,000) |
|
Pension finance cost |
(32,000) |
4,000 |
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Increase in trade debtors |
( |
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Decrease in deferred income, including government grants |
- |
( |
|
Net cash flow from operating activities |
( |
|
|
Cash flows from investing activities |
|||
Interest received |
|
- |
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Acquisition of intangible assets |
- |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayments of loans |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
501,146 |
1,038,490 |
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Going concern
The financial statements have been prepared on a going concern basis.
As detailed further in the Directors Report, the directors consider that the recent actions taken to operate the Godolphin as an investment property and reduce the cost base, put the company on a sound financial footing with the ability to operate profitably going forward.
St Aubyn Estates Limited is part of the wider portfolio of the St Aubyn family of businesses and as such is able to benefit from the cash flow available through these other operations. Because of the relationship between the company, the ultimate holding company and the other businesses, all of which are effectively under the overall control of the St Aubyn family, the directors are able to rely on the wider financial support to ensure that the St Aubyn Estates Limited is considered as a going concern and is able to meet its liabilities as they fall due.
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Key sources of estimation uncertainty
For the accounting year ended 31 December 2023, the fair value basis has been used to value the company's freehold property. In the prior year, a transfer from freehold property to investment property to the value of £3,850,000 occured due to a change in use of the property. The fair value basis has been chosen to measure the investment property, based on the valuation performed in 2019 by an independent professional valuer, Pinders, with experience in the location and category of property valued. The valuer used observable market prices adjusted as necessary for any difference in the future, location or condition of the specific asset. The directors consider this valuation remains appropriate at the year end.
The company is a member of a Defined Benefit Pension Scheme policy, the value of which is determined by a qualified third party actuary. The actuary has considered the High Court rules on GMP Equalisation in arriving at their estimate. The carrying amount is £nil (2022: £nil). The surplus of £637,000 (2022: £538,000) has not been recognised in the balance sheet. .
Revenue recognition
Turnover is measured as the fair value of consideration receivable. Turnover is reduced for estimated customer returns, rebates and other similar allowances.
Revenue from the sale of goods is recognised when all the following conditions are satisfied:
• The Company has transferred to the buyer the significant risks and rewards of ownership of the goods.
• The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold.
• The amount of revenue can be measured reliably.
• It is probable that the economic benefits associated with the transaction will flow to the Company; and
• The costs incurred or to be incurred in respect of the transaction can be measured reliably.
Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is passed.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expenses recognised as other comprehensive income is also recognised directly in other comprehensive income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted at the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Tangible assets
Land and buildings held and used in the Company’s own activities for production and supply of goods or for administrative purposes are stated in the balance sheet at their revalued amounts. The revalued amounts equate to the fair value at the date of revaluation, less any depreciation or impairment losses subsequently accumulated.
Any revaluation increase or decrease on land and buildings is credited to the revaluation reserve account.
Other fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.
At each balance sheet date, the company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. If the recoverable amount of an asset is estimated to be less than the carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised as an expense immediately.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Leasehold Improvements |
Over the term of the lease |
Plant, equipment, motor vehicles and tools |
5% to 33% on a straight line basis |
Investment property
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Software |
10% straight line |
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Stocks
Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell.
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of stocks recognised in the period in which the reversal occurs.
Defined contribution pension obligation
The company contributed to two money purchase pension schemes during the year. The obligations for contributions to defined contribution schemes are recognised as an expense as incurred. The assets of the scheme are held separately from those of the Company in independently administered funds.
Defined benefit pension obligation
The company also operates a defined benefit pension scheme. Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.
The liability recognised in the Balance Sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date minus the fair value of plan assets. The defined benefit obligation is measured using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future payments by reference to market yields at the reporting date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.
Any resulting pension scheme surplus (to the extent that it is recoverable) or deficit is recognised in full. The movement in the scheme surplus of deficit is split between operating charges, finance items and, in the statement of total comprehensive income, actuarial gains and losses.
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Turnover |
Business |
2023 |
2022 |
|
£ |
£ |
||
Cornish Heritage Builders |
4,049,673 |
3,272,504 |
|
Hospitality |
197,009 |
246,449 |
|
Estate management & overheads |
2,892,492 |
2,505,055 |
|
Total |
7,139,174 |
6,024,088 |
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2023 |
2022 |
|
Godolphin Arms rental income |
|
|
Other grants receivable |
|
|
|
|
Other gains and losses |
The analysis of the company's other gains and losses for the year is as follows:
2023 |
2022 |
|
Gain/loss on disposal of property, plant and equipment |
( |
|
Gain/loss from disposals of investments |
( |
- |
(1,951) |
11,266 |
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - plant and machinery |
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs |
|
|
Pension costs, defined benefit scheme |
- |
|
Other employee expense |
|
|
|
|
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
The figures above included £1,868,460 (2022 - £1,596,686) of staff costs which were recharged at cost to other legal entities. These figures are included in turnover (as income) and in administrative expenses; the net impact on the P&L is nil.
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Cornish Heritage Builders |
|
|
Beach Box |
|
|
Estate management and admin |
|
|
Staff recharged to other legal entities |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
151,843 |
131,506 |
During the year the number of directors who were receiving benefits was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
Auditor's remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
Audit-related assurance services |
|
|
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Other interest receivable and similar income |
2023 |
2022 |
|
Interest income on financial assets |
|
- |
Other finance income |
|
- |
|
- |
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest expense on other finance liabilities |
|
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
2023 |
2022 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Arising from changes in tax rates and laws |
|
|
Total deferred taxation |
|
|
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
- |
Deferred tax expense relating to changes in tax rates or laws |
|
|
Deferred tax credit from unrecognised temporary difference from a prior period |
( |
( |
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Tax increase from changes in pension fund prepayment |
- |
|
Other tax effects for reconciliation between accounting profit and tax expense (income) |
( |
( |
Total tax charge |
|
|
From 1 April 2023 the rate of corporation tax increased to 25%, from 19%.
Deferred tax
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
Provisions |
- |
|
Tax liability on investment property |
- |
|
Tax losses carry-forward |
|
- |
|
|
2022 |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
Provisions |
|
- |
Tax liability on investment property |
- |
|
Tax losses carry-forward |
|
- |
|
|
The remaining losses have been recognised to generate a deferred tax asset, due to the profitability in the year coupled with management expectations of profitable trade to continue into the future.
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Intangible assets |
Internally generated software development costs |
Total |
|
Cost or valuation |
||
At 1 January 2023 |
|
|
At 31 December 2023 |
|
|
Amortisation |
||
At 1 January 2023 |
|
|
Amortisation charge |
|
|
At 31 December 2023 |
|
|
Carrying amount |
||
At 31 December 2023 |
|
|
At 31 December 2022 |
|
|
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Tangible assets |
Leasehold improvements |
Plant, Equipment, Motor Vehicles and Tools |
Total |
|
Cost or valuation |
|||
At 1 January 2023 |
|
|
|
Additions |
- |
|
|
Disposals |
- |
( |
( |
At 31 December 2023 |
|
|
|
Depreciation |
|||
At 1 January 2023 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
- |
( |
( |
At 31 December 2023 |
|
|
|
Carrying amount |
|||
At 31 December 2023 |
|
|
|
At 31 December 2022 |
|
|
|
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Investment properties |
2023 |
|
At 1 January 2023 |
|
At 31 December 2023 |
|
The Investment Property was externally revalued on 1 March 2019 by an independent valuer. The valuation was carried out by Pinders, a company of Chartered Surveyors. The Godolphin Arms property (based on the assumptions that the business was an operational entity, valued with regard to trading potential) was valued at £3,850,000. This asset is pledged as security for liabilities. The directors consider this remains an appropriate best estimate of market value as at 31 December 2023.
If the investment property had been measured on a historical cost basis, the carrying amount would have been £2,083,496.
The asset has been leased out since 1 December 2020.The lease consitutes an operating lease. The expectations are that the lease utilised for a minimum period of 20 years and therefore the lease income, including lease incentives, has been recognised on a straight-line basis in line with FRS102 s20. The lease has a break clause at 31 October 2025. The minimum value of receipts under this lease, including the lease premium, are as follows: £260,000, due in less than one year; £216,667 due later one year, but no later than 5 years.
Investments |
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 January 2023 |
|
Disposals |
( |
At 31 December 2023 |
|
Carrying amount |
|
At 31 December 2023 |
|
At 31 December 2022 |
|
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
Estate Office, King's Road, Marazion, Cornwall, TR17 0EL |
Ordinary Shares |
|
|
England |
||||
|
St Aubyn Estate Office, West End, Marazion, Cornwall, TR17 0EL, England |
Ordinary Shares |
|
|
|
Estate Office, Kings Road, Marazion, Cornwall TR17 0EL |
Ordinary Shares |
|
|
England |
Subsidiary undertakings |
Mounts Bay Developments Limited The principal activity of Mounts Bay Developments Limited is |
The Godolphin Company Limited The principal activity of The Godolphin Company Limited is |
The Mount Haven Hotel Limited The principal activity of The Mount Haven Hotel Limited is |
Stocks |
2023 |
2022 |
|
Work in progress |
1,218 |
82,775 |
Other inventories |
211,125 |
147,235 |
|
|
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Debtors |
2023 |
2022 |
|
Trade debtors |
|
|
Amounts due from related undertakings |
1,373,679 |
783,581 |
Other debtors |
|
|
Prepayments |
|
|
Accrued income |
|
|
|
|
Cash and cash equivalents |
2023 |
2022 |
|
Cash on hand |
|
|
Cash at bank |
|
|
|
|
Creditors |
Note |
2023 |
2022 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts due to group undertakings |
|
|
|
Amounts due to related undertakings |
1,491,312 |
2,077,915 |
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
|
|
||
Due after one year |
|||
Loans and borrowings |
- |
|
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Loans and borrowings |
2023 |
2022 |
|
Current loans and borrowings |
||
Bank borrowings |
|
|
Other borrowings |
|
- |
|
|
2023 |
2022 |
|
Non-current loans and borrowings |
||
Bank borrowings |
- |
|
Amounts due to related undertakings |
- |
|
- |
|
The bank loan is held on a fixed rate of interest, and is due to mature in 2024. The loan is secured on the freehold property of the Godolphin Arms. A further guarantee to the bank loan has been provided by St. Aubyn (Land's End) Settlement.
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2023 |
As restated |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 January 2023 |
|
|
Increase (decrease) in existing provisions |
|
|
At 31 December 2023 |
|
|
|
Pension and other schemes |
The following disclosures relate only to the Pension and Life Assurance Plan of the Godolphin Company Limited which is the only defined benefit scheme of St Aubyn Estates Ltd.
The contributions are determined by a qualified actuary on the basis of triennial valuations using the projected unit method. The most recent valuation was at 30 November 2023. Effective as of 30 November 2023 no deficit recovery contributions are necessary, as the scheme is in surplus.
On 30th April 2014 the scheme was closed to future accrual and since then the payments that have been made are deficit reduction payments.
The scheme has a number of purchased annuities in respect of past retirements. These are understood to fully match the associated liabilities and so have been excluded from both the assets and liabilities at each accounting date.
The date of the most recent comprehensive actuarial valuation was
The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was £(32,000) (2022 - £4,000).
The total cost relating to defined benefit schemes for the year included in the cost of an asset was £218,004 (2022 - £232,000).
Reconciliation of scheme assets and liabilities to assets and liabilities recognised
The amounts recognised in the balance sheet are as follows:
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
2023 |
2022 |
|
Fair value of scheme assets |
|
|
Present value of defined benefit obligation |
( |
( |
637,000 |
538,000 |
|
Further capping of resulting net asset |
(637,000) |
(538,000) |
Defined benefit pension scheme surplus/(deficit) |
- |
- |
Defined benefit obligation
Changes in the defined benefit obligation are as follows:
2023 |
|
Present value at start of year |
|
Interest cost |
|
Actuarial gains and losses |
( |
Benefits paid |
( |
Present value at end of year |
|
Fair value of scheme assets
Changes in the fair value of scheme assets are as follows:
2023 |
|
Fair value at start of year |
|
Interest income |
|
Return on plan assets, excluding amounts included in interest income/(expense) |
( |
Employer contributions |
|
Benefits paid |
( |
Fair value at end of year |
|
Analysis of assets
The major categories of scheme assets are as follows:
2023 |
2022 |
|
Cash and cash equivalents |
91,000 |
313,000 |
Equity instruments |
1,312,000 |
1,188,000 |
Property |
255,000 |
267,000 |
1,658,000 |
1,768,000 |
Return on scheme assets
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
2023 |
2022 |
|
Return on scheme assets |
|
( |
The pension scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.
Principal actuarial assumptions
The principal actuarial assumptions at the balance sheet date are as follows:
2023 |
2022 |
|
Discount rate |
|
|
Inflation |
|
|
Post retirement mortality assumptions
2023 |
2022 |
|
Current UK pensioners at retirement age - male |
22.00 |
22.00 |
Current UK pensioners at retirement age - female |
24.00 |
25.00 |
Future UK pensioners at retirement age - male |
23.00 |
24.00 |
Future UK pensioners at retirement age - female |
26.00 |
27.00 |
St Aubyn Estates Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Defined Contribution Schemes
The company also contributed to two defined contribution schemes during the year. The assets of these schemes are held separately from those of the company in independently administered funds. The pension cost charge represents contributions of £115,921 (2022 - £51,962). Included in creditors at the year end is £nil (2022 - £nil) of outstanding contributions.
Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is
Related party transactions |
Transactions with directors |
Building works on standard commercial terms for A J H Thomas to the value £36,659 (2022: £5,886 was completed during the year, with payments totalling £31,189 (2022: £4,382). The total amount owed by A J H Thomas at 31 December 2023 was £6,974 (2022: £1,504).
Services on standard commercial terms for F St Aubyn to the value £nil (2022: £6,275) were provided during the year, with payments totalling £nil (2022: £6,275). The total amount owed by F St Aubyn at 31 December 2023 was £nil (2022: £nil).
Services on standard commercial terms for H St Aubyn to the value of £6,000 (2022: £nil) were provided during the year. The total amount owed by H St Aubyn at 31 December 2023 was £6,000 (2022: £nil).
Outstanding at the year end was a balance of £nil (2022: £324) owed from Lord & Lady St Levan. The previous year's balance was settled in January 2023.
Summary of transactions with parent
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
140,000 |
|
140,000 |