Company Registration No. 06307541 (England and Wales)
SHERBORNE HOLDINGS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024
10 Bridge Street
Christchurch
Dorset
BH23 1EF
SHERBORNE HOLDINGS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 5
Directors' report
6 - 9
Directors' responsibilities statement
10
Independent auditor's report
11 - 14
Profit and loss account
15
Group statement of comprehensive income
16
Group balance sheet
17 - 18
Company balance sheet
19 - 20
Group statement of changes in equity
21
Company statement of changes in equity
22
Group statement of cash flows
23
Notes to the financial statements
24 - 50
SHERBORNE HOLDINGS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr J Sherborne
Mr C Sherborne
Mr J Clark
Mr M Meyer
Mr O Sherborne
Mr R Pride
Secretary
Mr B Carr
Company number
06307541
Registered office
45-47 Ashley Road
Boscombe
Bournemouth
Dorset
BH1 4LG
Auditor
TC Group
10 Bridge Street
Christchurch
Dorset
BH23 1EF
Business address
45-47 Ashley Road
Boscombe
Bournemouth
Dorset
BH1 4LG
SHERBORNE HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

The directors present the strategic report for the year ended 31 March 2024.

Fair review of the business

The last couple of years have been more challenging for the construction, DIY and repairs and maintenance sector. Naturally this has impacted directly on the supply chain, where builders’ merchants play a key role.

 

Macroeconomic factors have been a significant driver with higher price inflation in goods, services and energy followed by rapid rises in interest rates. Consequently a ‘cost-of-living crisis’ emerged in the UK and led to declining demand for goods and services, including projects being deferred. The builders’ merchant sector has therefore become more competitive since the pandemic with businesses having to absorb more overheads across the board to retain customers. The greater competition has led to increased redundancies and branch closures across the industry. The Sherborne Holdings Group, whilst not closing any branches, has not been immune to these forces; making strategic decisions in order to continually manage costs and maximise efficiency, whilst still maintaining the high levels of quality and service that we are renowned for.

 

It is also of note that 2023-24 was consistently one of the wettest years on record, and particularly in the regions where the business operates around the South West quarter of the UK. Reports from customers of waterlogged sites, and postponements were not uncommon. Whether the rain delays will lead to a catch-up period in more settled weather, however, remains to be seen with all of the other complexities in the wider market at the moment.

 

Despite the challenges it has remained important that we invest in the business for the future and we have not delayed purchases of new plant and equipment where required, development of new and existing sites, a new e-commerce website (expected to be live by Q4 2024) and our commitment to the environment with our new Sustainability Working Group. 2024 sees the year of the 150th birthday of Sydenhams Ltd, the main trading entity of the Group, and we are all enthusiastic to see that the business prospers for the next 150 years! More details on some of these points follow later in the report.

 

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

 

Sales for the year to 31 March 2024 were £84,088,437 (2023 - £95,359,879), a decrease of 11.8%. Gross margin increased to 40.9% (2023 – 40.5%). Operating profit decreased to £5,531,584 (2023 - £11,155,858), down 50.4% compared to the previous year. Profit before tax decreased to £5,549,882 (2023 - £11,120,753), down 50.1% compared to the previous year.

 

The group ended the year with net assets of £76,382,833 (2023 - £79,949,134) including cash of £5,088,807 (2023 - £5,087,961), the key elements of this strong net asset position being tangible assets, stocks and debtors.

 

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

 

 

SHERBORNE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

Acquisitions

 

In December 2022 Guernsey Building Supplies Limited acquired a larger site to allow expansion of the business. Following a period of investment to adapt and modernise the site accordingly, the new branch opened for trading in August 2023, with the old site being leased to tenants. The new branch is proving popular with customers on the island and offers an experience and range of goods beyond what was possible at the previous location.

 

In recent years our Wickham Timber Centre and Timber Engineering site was expanded through the purchase of an adjacent plot of land. The new factory unit was completed and capitalised in November 2023. This is an exciting opportunity for the business as it allows the expansion of our Timber Frame business to offer more eco-friendly and net-zero residential and commercial property into the UK market. We have many years of experience in the Timber Frame market and see this expansion as a necessary step towards a greener future of construction and is an area where we conduct significant R&D to continually enhance this offering.

 

On 26th June 2024 completion took place on the purchase of a new site in Warminster. This provides a larger premises for our Warminster Hire depot to extend their range and facilities. The purchase will also likely add an additional unit to the investment property portfolio, for lease to external tenants.

 

Matters of strategic importance and principal risks and uncertainties

 

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

 

 

 

 

 

 

 

SHERBORNE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Section 172(1) of the Companes Act 2006

Overview of how the directors fulfil their duties:

 

Our Shareholders

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

 

Our Employees

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

 

Our Customers

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

 

Our Suppliers

Maintaining a good relationship with suppliers is crucial to the success of the business and this is managed both through direct contact with the supply chain and through the use of buying groups. Along with regular communication with the key management personnel in which relationships are developed the group also prides itself on the prompt payment to suppliers. Any issues relating to supplier accounts will normally be sorted promptly either with or without Board involvement.

 

Community and Environment

The Board recognises the importance of running a group that not only generates value for the shareholders and employees, but also plays its part to contribute to wider society. Whether this is in making charitable donations of either building materials, time or money to various causes, sponsoring numerous local sports teams and individual athletes, aiming to be environmentally aware and responsible in our activities, or engaging with local communities that live in the vicinity of our branches. During 2023 we established a Sustainability Working Group comprising four individuals from across the business with a range of experience and skills, who meet regularly. We have reached out to a number of trusted partners and advisors to gather information and plan a way forward to enhance our sustainability and ESG strategy. We are currently working on additional accreditation in ISO14001 and the Global Reporting Initiative that will reinforce this commitment.

 

Culture

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

 

 

SHERBORNE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

Health & Safety

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

 

On behalf of the board

Mr J Sherborne
Director
13 September 2024
SHERBORNE HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

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

Results and dividends

The results for the year are set out on page 15.

During the year interim equity dividends of £1.78 per ordinary share were paid totalling £4,786,926. The directors proposed a final equity dividend of £0.91 per ordinary share totalling £2,447,248 which was also paid in the year ending 31 March 2024.

Directors

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

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

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

Financial instruments

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

 

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

 

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

 

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

SHERBORNE HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
Employee involvement

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

 

Pensions

The defined benefit section of the Sydenhams Pension Scheme closed to future accrual at 31 March 2006, at which date the scheme had a deficit of £2,279,185. An actuarial update performed at 31 March 2024 demonstrated a surplus of £3,649,764 (2023 - £3,813,369). The group made contributions of £nil (2023 - £540,000) during the year.

Energy and carbon report

In line with the Streamlined Energy and Carbon Reporting legislation, the company is required to report its energy consumption and greenhouse gas emissions arising in the UK. All scope 1 & 2 sources of energy and emissions have been disclosed as well as mandatory scope 3 sources of energy and emissions.

 

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

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
2,323
2,527
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
127.99
122.00
- Fuel consumed for owned transport
1,743.92
1,707.00
1,871.91
1,829.00
Scope 2 - indirect emissions
- Electricity purchased
450.74
698.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
-
-
Total gross emissions
2,322.65
2,527.00
Intensity ratio
Intensity per £m turnover
25.83
26.50
SHERBORNE HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

 

All conversion factors and fuel properties used in this disclosure have been taken from the 2023 “UK Government Greenhouse Gas Conversion Factors for Company Reporting” published by the Department for Energy Security & Net Zero (DESNZ) and the Department for Environment, Food & Rural Affairs (DEFRA). All greenhouse gas emissions have been expressed in terms of their carbon dioxide equivalence.

 

Fuel

 

Conversion

 

Factor

Electricity: UK

kg CO2e/kWh

0.20707

Natural gas (Standard UK grid)

kg CO2e/kWh (Gross CV)

0.18293

Diesel

kg CO2e/litre

2.51206

kg CO2e/kWh (Gross CV)

0.23908

Petrol

kg CO2e/litre

2.09747

kg CO2e/kWh (Gross CV)

0.22166

LPG

kg CO2e/litre

1.55713

kg CO2e/kWh (Gross CV)

0.21450

Kerosene

kg CO2e/litre

2.54016

kg CO2e/kWh (Gross CV)

0.24677

 

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per £m turnover, the recommended ratio for the sector.

Measures taken to improve energy efficiency

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

•    LED lighting continues to be rolled out across the group with PIR sensors in low traffic areas.

•    Increased use of solar panels.

•    ESOS surveys completed and reports.

•    Timers installed on hot water, so it is not running when sites are closed.

•    Environmental group formed to work towards formal standards.

 

Utilities

Energy consumption expressed in kilowatt-hours has been taken from suppliers' invoices. Location based kgCO2e/kWh conversion factors for the average UK grid supply have been used to calculate greenhouse gas emissions from electricity and natural gas consumption.

Transport

Staff drive personal or company vehicles and are reimbursed through mileage claims. The litres of fuel used is recorded and the kWh/litre and kgCO2e/litre conversion factors from the category "Diesel (average biofuel blend) and Petrol (average biofuel blend)" have been used to calculate greenhouse gas emissions and underlying energy use.

 

SHERBORNE HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -

Other Fuels & Emissions

LPG and Kerosene have been used and the kgCO2e/litre and kgCO2e/kWh conversion factors have been used to calculate greenhouse gas emissions and underlying energy use.

Maintenance records did not contain any instances of refrigerant leaks during the reference period. No other fugitive emissions have been identified.

Auditor

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr J Sherborne
Director
13 September 2024
SHERBORNE HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

SHERBORNE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SHERBORNE HOLDINGS LIMITED
- 11 -
Opinion

We have audited the financial statements of Sherborne Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

SHERBORNE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHERBORNE HOLDINGS LIMITED
- 13 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

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

 

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

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

Our approach was as follows:

 

 

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

SHERBORNE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SHERBORNE HOLDINGS LIMITED
- 14 -

 

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

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

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

James Blake FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
18 September 2024
Office: Christchurch
SHERBORNE HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
Notes
£
£
Turnover
3
84,088,437
95,359,879
Cost of sales
(49,683,348)
(56,758,015)
Gross profit
34,405,089
38,601,864
Distribution costs
(2,577,836)
(2,763,945)
Administrative expenses
(27,305,807)
(25,624,045)
Other operating income
1,010,138
941,983
Operating profit
4
5,531,584
11,155,857
Interest receivable and similar income
8
255,376
70,876
Interest payable and similar expenses
9
(237,078)
(105,980)
Profit before taxation
5,549,882
11,120,753
Tax on profit
10
(1,181,917)
(1,401,319)
Profit for the financial year
25
4,367,965
9,719,434
Profit for the financial year is all attributable to the owners of the parent company.
SHERBORNE HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
2024
2023
£
£
Profit for the year
4,367,965
9,719,434
Other comprehensive income
Actuarial (loss)/gain on defined benefit pension schemes
(333,665)
1,064,353
Tax relating to other comprehensive income
(366,427)
(546,012)
Other comprehensive income for the year
(700,092)
518,341
Total comprehensive income for the year
3,667,873
10,237,775
Total comprehensive income for the year is all attributable to the owners of the parent company.
SHERBORNE HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 17 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
2,416,420
2,816,804
Other intangible assets
12
1,223,159
1,746,473
Total intangible assets
3,639,579
4,563,277
Tangible assets
13
41,348,321
43,061,308
Investment properties
14
12,414,191
9,131,377
Investments
15
160,199
160,199
57,562,290
56,916,161
Current assets
Stocks
16
18,733,475
20,496,473
Debtors
17
11,610,205
10,776,722
Cash at bank and in hand
5,088,807
5,087,961
35,432,487
36,361,156
Creditors: amounts falling due within one year
18
(15,961,580)
(13,313,364)
Net current assets
19,470,907
23,047,792
Total assets less current liabilities
77,033,197
79,963,953
Creditors: amounts falling due after more than one year
19
(1,204,700)
(1,204,700)
Provisions for liabilities
Deferred tax liability
21
3,095,428
2,623,488
(3,095,428)
(2,623,488)
Net assets excluding pension surplus
72,733,069
76,135,765
Defined benefit pension surplus
22
3,649,764
3,813,369
Net assets
76,382,833
79,949,134
SHERBORNE HOLDINGS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2024
31 March 2024
2024
2023
Notes
£
£
£
£
- 18 -
Capital and reserves
Called up share capital
23
2,689,284
2,689,284
Revaluation reserve
25
244,731
233,302
Profit and loss reserves
25
73,448,818
77,026,548
Total equity
76,382,833
79,949,134
The financial statements were approved by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
13 September 2024
Mr J Sherborne
Mr J Clark
Director
Director
Company registration number 06307541 (England and Wales)
SHERBORNE HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 19 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
27,157,354
28,362,994
Investment properties
14
10,342,191
9,131,377
Investments
15
8,930,009
8,930,009
46,429,554
46,424,380
Current assets
Debtors
17
1,491,227
2,287,629
Cash at bank and in hand
-
0
357,652
1,491,227
2,645,281
Creditors: amounts falling due within one year
18
(7,815,246)
(5,613,199)
Net current liabilities
(6,324,019)
(2,967,918)
Total assets less current liabilities
40,105,535
43,456,462
Creditors: amounts falling due after more than one year
19
(1,204,700)
(1,204,700)
Provisions for liabilities
Deferred tax liability
21
1,385,580
1,784,783
(1,385,580)
(1,784,783)
Net assets
37,515,255
40,466,979
Capital and reserves
Called up share capital
23
2,689,284
2,689,284
Revaluation reserve
25
244,731
233,302
Profit and loss reserves
25
34,581,240
37,544,393
Total equity
37,515,255
40,466,979

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £4,282,450 (2023 - £9,319,325 profit).

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

SHERBORNE HOLDINGS LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
31 March 2024
- 20 -
The financial statements were approved by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
13 September 2024
Mr J Sherborne
Mr J Clark
Director
Director
Company registration number 06307541 (England and Wales)
SHERBORNE HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
2,689,284
233,302
67,595,558
70,518,144
Year ended 31 March 2023:
Profit for the year
-
-
9,719,434
9,719,434
Other comprehensive income:
Actuarial gains on defined benefit plans
-
-
1,064,353
1,064,353
Tax relating to other comprehensive income
-
-
0
(546,012)
(546,012)
Total comprehensive income for the year
-
-
10,237,775
10,237,775
Dividends
11
-
-
(806,785)
(806,785)
Balance at 31 March 2023
2,689,284
233,302
77,026,548
79,949,134
Year ended 31 March 2024:
Profit for the year
-
-
4,367,965
4,367,965
Other comprehensive income:
Actuarial loss on defined benefit plans
-
-
(333,665)
(333,665)
Tax relating to other comprehensive income
-
-
0
(366,427)
(366,427)
Total comprehensive income for the year
-
-
3,667,873
3,667,873
Dividends
11
-
-
(7,234,174)
(7,234,174)
Transfers
-
11,429
(11,429)
-
Balance at 31 March 2024
2,689,284
244,731
73,448,818
76,382,833
SHERBORNE HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
2,689,284
233,302
29,031,854
31,954,440
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
9,319,324
9,319,324
Dividends
11
-
-
(806,785)
(806,785)
Balance at 31 March 2023
2,689,284
233,302
37,544,393
40,466,979
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
4,282,450
4,282,450
Dividends
11
-
-
(7,234,174)
(7,234,174)
Transfers
-
11,429
(11,429)
-
Balance at 31 March 2024
2,689,284
244,731
34,581,240
37,515,255
SHERBORNE HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
12,574,082
12,985,556
Interest paid
(237,078)
(105,980)
Income taxes paid
(2,020,000)
(2,376,179)
Net cash inflow from operating activities
10,317,004
10,503,397
Investing activities
Purchase of business
-
(1,227,834)
Purchase of intangible assets
(18,918)
-
Purchase of tangible fixed assets
(4,455,185)
(12,509,762)
Proceeds from disposal of tangible fixed assets
668,410
1,325,473
Purchase of investment property
-
(280,000)
Proceeds from disposal of investment property
25,001
475,000
Loans issued
(105,671)
-
Interest received
71,131
476
Dividends received
5,228
5,226
Net cash used in investing activities
(3,810,004)
(12,211,421)
Financing activities
Dividends paid to equity shareholders
(7,234,174)
(806,785)
Net cash used in financing activities
(7,234,174)
(806,785)
Net decrease in cash and cash equivalents
(727,174)
(2,514,809)
Cash and cash equivalents at beginning of year
5,087,961
7,602,770
Cash and cash equivalents at end of year
4,360,787
5,087,961
Relating to:
Cash at bank and in hand
5,088,807
5,087,961
Bank overdrafts included in creditors payable within one year
(728,020)
-
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
1
Accounting policies
Company information

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

 

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

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 25 -
1.3
Basis of consolidation

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

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

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

1.4
Going concern

At the time of approving the financial statements, the directors are satisfied that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is considered to be 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 26 -
1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
over 5 years
Customer relationships
over 10 years
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

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

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Investment properties

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

 

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

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 27 -
1.10
Fixed asset investments

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

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.11
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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

 

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

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

progress.

 

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 28 -
1.14
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, 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.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 29 -
1.15
Equity instruments

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

1.16
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 30 -
1.18
Retirement benefits

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

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

 

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

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

 

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

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

1.19
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

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

1.20
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
2
Judgements and key sources of estimation uncertainty

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

 

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

 

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

 

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

 

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

 

Investment property values are calculated on a rental yields basis with a percentage of between 5% to 15% utilised depending on the underlying risk of the tenant. These values are supported by independent valuations performed on a periodic basis.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales and distribution of timber and building materials
77,666,418
87,748,761
Design and manufacture of engineered timber products
3,265,522
4,302,393
Tool sales and repairs
741,228
823,191
Plant and tool hire
2,415,269
2,485,534
84,088,437
95,359,879
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
3
Turnover and other revenue
(Continued)
- 32 -
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
77,978,587
90,702,815
Channel Islands
6,109,850
4,657,064
84,088,437
95,359,879
2024
2023
£
£
Other revenue
Interest income
250,149
65,650
Dividends received
5,227
5,226
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
2,648,555
2,460,857
Profit on disposal of tangible fixed assets
(409,065)
(1,042,258)
Profit on disposal of investment property
-
0
(213,267)
Amortisation of intangible assets
942,616
981,074
Operating lease charges
477,694
492,314
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
66,140
64,650
For other services
Taxation compliance services
5,455
5,725
All other non-audit services
20,125
20,050
25,580
25,775
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Merchanting
429
435
-
-
Office and management
41
42
7
8
Total
470
477
7
8

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
15,035,081
15,161,827
409,065
516,168
Social security costs
1,429,907
1,458,106
47,709
66,920
Pension costs
1,190,500
1,226,499
25,271
28,291
17,655,488
17,846,432
482,045
611,379
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
320,786
399,571
Company pension contributions to defined contribution schemes
10,481
9,283
331,267
408,854

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 4 (2023 - 4).

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Directors' remuneration
(Continued)
- 34 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
176,081
167,148
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
70,100
93
Interest on the net defined benefit asset
179,018
65,174
Other interest income
1,031
383
Total interest revenue
250,149
65,650
Other income from investments
Dividends received
5,227
5,226
Total income
255,376
70,876
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
67
338
Dividends on redeemable preference shares not classified as equity
60,235
60,235
Other interest on financial liabilities
164,851
36,199
Interest on finance leases and hire purchase contracts
9,745
9,208
Other interest
2,180
-
Total finance costs
237,078
105,980
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,103,565
1,422,503
Adjustments in respect of prior periods
-
0
(108,786)
Benefit arising from a previously unrecognised tax loss or credit
(27,161)
-
0
Total current tax
1,076,404
1,313,717
Deferred tax
Origination and reversal of timing differences
415,339
87,602
Adjustment in respect of prior periods
(309,826)
-
0
Total deferred tax
105,513
87,602
Total tax charge
1,181,917
1,401,319

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

2024
2023
£
£
Profit before taxation
5,549,882
11,120,753
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,387,471
2,112,943
Tax effect of expenses that are not deductible in determining taxable profit
219,879
34,095
Gains not taxable
-
0
(186,939)
Effect of change in corporation tax rate
51,837
126,628
Effect of overseas tax rates
(172,219)
(167,123)
Under/(over) provided in prior years
(27,161)
(112,564)
Deferred tax adjustments in respect of prior years
(277,890)
(309,995)
Enhanced capital allowances
-
0
(95,726)
Taxation charge
1,181,917
1,401,319
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 36 -

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

2024
2023
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
366,427
546,012
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
2,447,248
-
Interim paid
4,786,926
806,785
7,234,174
806,785
12
Intangible fixed assets
Group
Goodwill
Software
Customer relationships
Total
£
£
£
£
Cost
At 1 April 2023
4,008,779
-
0
8,898,595
12,907,374
Additions
-
0
18,918
-
0
18,918
At 31 March 2024
4,008,779
18,918
8,898,595
12,926,292
Amortisation and impairment
At 1 April 2023
1,191,975
-
0
7,152,122
8,344,097
Amortisation charged for the year
400,384
3,153
539,079
942,616
At 31 March 2024
1,592,359
3,153
7,691,201
9,286,713
Carrying amount
At 31 March 2024
2,416,420
15,765
1,207,394
3,639,579
At 31 March 2023
2,816,804
-
0
1,746,473
4,563,277
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Intangible fixed assets
(Continued)
- 37 -

The directors have reassessed the cost brought forward of certain fixed asset categories, which were fully amortised and had a net book value of £nil in the prior period. Consequently, the aggregate costs brought forward and amortisation brought forward within these accounts may not be comparable with those published in the prior year financial statements.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 38 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2023
30,635,318
33,250
8,999,101
9,676,619
4,952,696
8,030,595
62,327,579
Additions
3,487
-
0
2,392,549
1,286,929
230,595
541,621
4,455,181
Disposals
-
0
-
0
-
0
(987,710)
(34,537)
(590,088)
(1,612,335)
Transfers
8,709,395
-
0
(10,115,824)
674,157
732,272
-
0
-
0
Transfer to investment property
(2,346,075)
-
0
(978,311)
-
0
-
0
-
0
(3,324,386)
Transfers to Intangible fixed assets
-
0
-
0
(18,918)
-
0
-
0
-
0
(18,918)
At 31 March 2024
37,002,125
33,250
278,597
10,649,995
5,881,026
7,982,128
61,827,121
Depreciation and impairment
At 1 April 2023
3,916,202
9,625
-
0
5,284,986
3,811,259
6,244,199
19,266,271
Depreciation charged in the year
420,966
10,500
-
0
1,039,443
403,231
774,415
2,648,555
Eliminated in respect of disposals
-
0
-
0
-
0
(807,317)
(34,536)
(566,173)
(1,408,026)
Transfer to investment property
(28,000)
-
0
-
0
-
0
-
0
-
0
(28,000)
At 31 March 2024
4,309,168
20,125
-
0
5,517,112
4,179,954
6,452,441
20,478,800
Carrying amount
At 31 March 2024
32,692,957
13,125
278,597
5,132,883
1,701,072
1,529,687
41,348,321
At 31 March 2023
26,719,116
23,625
8,999,101
4,391,633
1,141,437
1,786,396
43,061,308
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 39 -
Company
Freehold land and buildings
Assets under construction
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
28,427,536
3,716,968
152,964
91,115
32,388,583
Additions
3,487
396,279
-
0
-
0
399,766
Transfers
3,131,156
(3,131,156)
-
0
-
0
-
0
Transfer to investment property
(246,075)
(978,311)
-
0
-
0
(1,224,386)
At 31 March 2024
31,316,104
3,780
152,964
91,115
31,563,963
Depreciation and impairment
At 1 April 2023
3,817,046
-
0
149,871
58,672
4,025,589
Depreciation charged in the year
365,485
-
0
1,439
14,096
381,020
At 31 March 2024
4,182,531
-
0
151,310
72,768
4,406,609
Carrying amount
At 31 March 2024
27,133,573
3,780
1,654
18,347
27,157,354
At 31 March 2023
24,610,490
3,716,968
3,093
32,443
28,362,994

The directors have reassessed the cost brought forward of certain fixed asset categories, which were fully depreciated and had a net book value of £nil in the prior period. Consequently, the aggregate costs brought forward and depreciation brought forward within these accounts may not be comparable with those published in the prior year financial statements.

14
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 April 2023
9,131,377
9,131,377
Transfers from owner-occupied property
1,224,386
1,224,386
Disposals
(25,001)
(25,001)
Transfers from Property, plant and equipment
2,072,000
-
Net gains or losses through fair value adjustments
11,429
11,429
At 31 March 2024
12,414,191
10,342,191

The 2024 valuations were made by the directors, on an open market value for existing use basis.

If the investment properties had been accounted for under the historic cost accounting rules, the properties would be valued at £6,791,179 (2023: £3,491,794).

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 40 -
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
-
0
-
0
8,770,760
8,770,760
Listed investments
159,249
159,249
159,249
159,249
Unlisted investments
950
950
-
0
-
0
160,199
160,199
8,930,009
8,930,009

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

 

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

 

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

 

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

 

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

 

Sydenhams Limited, Sydenhams Timber Engineering Limited, Sydenhams Hire Centres Limited and M's Building Supplies Limited are audited. Guernsey Building Supplies Limited has an indefinite audit waiver. Isobar Properties Limited has taken advantage of the audit exemption available to dormant companies under section 480 of the Companies Act 2006.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
15
Fixed asset investments
(Continued)
- 41 -
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 April 2023 and 31 March 2024
160,199
Carrying amount
At 31 March 2024
160,199
At 31 March 2023
160,199
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 April 2023 and 31 March 2024
8,770,760
159,249
8,930,009
Carrying amount
At 31 March 2024
8,770,760
159,249
8,930,009
At 31 March 2023
8,770,760
159,249
8,930,009
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
18,733,475
20,496,473
-
0
-
0
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 42 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,625,060
8,311,713
-
0
-
0
Corporation tax recoverable
627,545
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
1,402,425
2,201,318
Other debtors
2,343,231
2,282,132
88,802
86,311
Prepayments and accrued income
932,698
182,877
-
0
-
0
11,528,534
10,776,722
1,491,227
2,287,629
Amounts falling due after more than one year:
Other debtors
81,671
-
0
-
0
-
0
Total debtors
11,610,205
10,776,722
1,491,227
2,287,629
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
728,020
-
0
728,020
-
0
Trade creditors
7,963,114
7,896,798
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
3,696,159
5,273,229
Corporation tax payable
-
0
289,503
275,585
108,471
Other taxation and social security
968,168
1,163,631
550
-
Other creditors
2,960,781
67,318
2,960,781
67,318
Accruals and deferred income
3,341,497
3,896,114
154,151
164,181
15,961,580
13,313,364
7,815,246
5,613,199
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
1,204,700 5% preference shares
20
1,204,700
1,204,700
1,204,700
1,204,700
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 43 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
728,020
-
0
728,020
-
0
Preference shares
1,204,700
1,204,700
1,204,700
1,204,700
1,932,720
1,204,700
1,932,720
1,204,700
Payable within one year
728,020
-
0
728,020
-
0
Payable after one year
1,204,700
1,204,700
1,204,700
1,204,700

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

 

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

21
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Fixed asset timing differences
1,480,763
466,411
Revaluations
1,239,245
2,227,464
Retirement benefit obligations
912,440
546,012
Long service employment provisions
(537,020)
(616,399)
3,095,428
2,623,488
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Deferred taxation
(Continued)
- 44 -
Liabilities
Liabilities
2024
2023
Company
£
£
Fixed asset timing differences
146,335
-
Revaluations
1,239,245
1,784,783
1,385,580
1,784,783
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
2,623,488
1,784,783
Charge/(credit) to profit or loss
105,513
(399,203)
Credit to other comprehensive income
(40,901)
-
Credit to other comprehensive income - PY understatement
407,328
-
Liability at 31 March 2024
3,095,428
1,385,580
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
1,165,229
1,198,208

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Defined benefit schemes

The group operates a defined benefit pension scheme.

 

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

 

The defined benefit section closed to future accrual at 31 March 2006. The latest actuarial update at 31 March 2024 showed an increase in the surplus from £3,813,369 to £3,649,764. The scheme's assets are held in independent, trustee-administered funds.

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Retirement benefit schemes
(Continued)
- 45 -
2024
2023
Key assumptions
%
%
Discount rate
4.8
4.7
Expected rate of increase of pensions in payment
5
5
Expected rate of salary increases
n/a
n/a
Inflation (RPI)
3.7
3.5
Inflation (CPI)
2.9
2.7
Mortality assumptions
2024
2023

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
21.6
22.2
- Females
23.4
23.8
Retiring in 20 years
- Males
23.2
23.8
- Females
24.5
25

Mortality - prior to retirement assumes AMN00/AFN00 (2023 - AMN00/AFN00). Mortality post-retirement for deferred pensioners, insured pensions and scheme pensioners assumes 100% S3PMA/105% S3PFA, CMI 2022 model with long-term improvement 1.5% pa (M) and 1.0% pa (F) (2023 - S3PMA/S3PFA, CMI 2021 model with long-term improvement 1.5% pa (M) and 1.0% pa (F)).        

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

2024
2023
Group
£
£
Present value of defined benefit obligations
(13,428,969)
(14,202,449)
Fair value of plan assets
17,078,733
18,015,818
Surplus in scheme
3,649,764
3,813,369
The company had no post employment benefits at 31 March 2024 or 1 April 2023.
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Retirement benefit schemes
(Continued)
- 46 -
Group
2024
2024

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(316,936)
2,569,751
Less: calculated interest element
817,274
559,512
Return on scheme assets excluding interest income
500,338
3,129,263
Actuarial changes related to obligations
(166,673)
(4,193,616)
Deferred taxation balance relating to pension schemes
366,429
546,012
Total costs/(income)
700,094
(518,341)
Group
Group
Group
2024
2023
Movements in present value of defined beneft obligations
£
£
Liabilities a 1 April 2023
(14,202,449)
(18,715,919)
Benefits paid
1,245,063
814,192
Actuarial gains and losses
166,673
4,193,616
Interest cost
(638,256)
(494,338)
At 31 March 2024
(13,428,969)
(14,202,449)
Group
Group
2024
2023

The defined benefit obligations arise from plans funded as follows:

£
£
Wholly unfunded obligations
-
-
Wholly or partly funded obligations
(13,428,969)
(14,202,449)
(13,428,969)
(14,202,449)
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
22
Retirement benefit schemes
(Continued)
- 47 -
Group
Group
2024
2023

Movements in the fair value of plan assets

£
£
Fair value of assets at 1 April 2023
18,015,818
20,859,761
Interest income
817,274
559,512
Return on plan assets (excluding amounts included in net interest)
(500,338)
(3,129,263)
Benefits paid
(1,254,021)
(814,192)
Contributions
-
540,000
At 31 March 2024
17,078,733
18,015,818

Fair value of plan assets at the reporting period end

Group
Company
Company
2024
2023
2024
2023
£
£
£
£
Equity instruments
-
2,350,340
-
2,350,340
Bonds
13,076,252
13,614,689
13,076,252
13,614,689
Annuities
1,342,382
1,191,662
1,342,382
1,191,662
Global real estate & infrastructure
-
612,371
-
612,371
Cash
2,660,099
246,756
2,660,099
246,756
17,078,733
18,015,818
17,078,733
18,015,818
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
2,689,284
2,689,284
2,689,284
2,689,284
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 48 -
24
Revaluation reserve

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

25
Reserves
Profit and loss reserves

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

26
Financial commitments, guarantees and contingent liabilities

The company is jointly and severally liable for the VAT liability of the group of which it is a member. At the year end the group liability was £583,879 (2023: £817,923).

27
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
428,752
425,449
293,291
282,022
Between two and five years
1,388,759
1,257,288
1,080,918
797,390
In over five years
3,026,408
3,144,094
3,026,408
3,144,094
4,843,919
4,826,831
4,400,617
4,223,506
Lessor

The operating leases represent leases to third parties.

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
713,735
573,635
593,735
573,635
Between two and five years
2,191,388
1,704,773
1,721,388
1,704,773
In over five years
896,333
1,183,042
896,333
1,183,042
3,801,456
3,461,450
3,211,456
3,461,450
SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 49 -
28
Related party transactions
Remuneration of key management personnel

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

2024
2023
£
£
Aggregate compensation
1,140,212
1,345,617
Other information

During the year, consistent with their interests in the issued share capital of the company, close members of the families directors' received, in aggregate, preference dividends of £60,235 (2023: £60,235).

 

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

 

During the year, the directors maintained directors loan accounts with the group. Balances owed at 31 March 2024 totaled £2,893,463. The balances accrued interest at a rate of 5.7% and interest of £164,851 was charged in respect of this.

 

Transactions with other related parties

 

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

29
Controlling party

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

SHERBORNE HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 50 -
30
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
4,367,965
9,719,434
Adjustments for:
Taxation charged
1,181,917
1,401,319
Finance costs
237,078
105,980
Investment income
(255,376)
(70,876)
Gain on disposal of tangible fixed assets
(409,065)
(1,042,258)
Gain on disposal of investment property
-
0
(213,267)
Amortisation and impairment of intangible assets
942,616
981,074
Depreciation and impairment of tangible fixed assets
2,648,555
2,460,857
Pension scheme non-cash movement
-
(540,000)
Movements in working capital:
Decrease in stocks
1,762,997
914,966
(Increase)/decrease in debtors
(100,265)
2,577,675
Increase/(decrease) in creditors
2,197,660
(3,309,348)
Cash generated from operations
12,574,082
12,985,556
31
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
5,087,961
846
5,088,807
Bank overdrafts
-
0
(728,020)
(728,020)
5,087,961
(727,174)
4,360,787
Borrowings excluding overdrafts
(1,204,700)
-
(1,204,700)
3,883,261
(727,174)
3,156,087
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.210Mr J SherborneMr C SherborneMr J ClarkMr M MeyerMr O SherborneMr R PrideMr B 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