Company registration number 00906135 (England and Wales)
THOMAS SHERRIFF AND COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
THOMAS SHERRIFF AND COMPANY LIMITED
COMPANY INFORMATION
Directors
W S Hutchison
J W Laing
E J Turner
R R Lyall
N Hardie
(Appointed 1 February 2023)
Company number
00906135
Registered office
17 Walkergate
Berwick-upon-Tweed
Northumberland
TD15 1DJ
Auditor
Greaves West & Ayre
17 Walkergate
Berwick-upon-Tweed
Northumberland
TD15 1DJ
THOMAS SHERRIFF AND COMPANY LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 6
Independent auditor's report
7 - 10
Profit and loss account
11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 31
THOMAS SHERRIFF AND COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 1 -

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

Review of the business

Thomas Sherriff and Company Limited are a privately owned and managed business providing a positive environment for its staff and takes a medium/​long term view on investment.

 

Its primary activities are the sale, distribution and servicing of agricultural and turf machinery, with retail/​trade parts and hardware sales.

 

Turnover for the year has increased by 5.2% to £56m, however gross profit has shown decline from 14.3% to 13.5%. Net profit before tax has dropped from £2.48m to £1.42m with margins of 4.63% and 2.52% respectively. This is due to increased employee costs via pay rise and headcount, and increased levels of interest-bearing borrowing.

 

Equity has grown to £10,758,004 (2023: £9,973,460) meaning future investment in people and assets can be planned in line with ours and John Deere’s strategy.

Key suppliers

John Deere is our major supplier, of both Agricultural and Turf equipment, and accounts for around half of total revenue. Other key brands in our portfolio include Kramer, Kuhn, Stewart Trailers and Dal-bo.

 

Revenue and volume targets are set by our key suppliers which we work hard to achieve to maintain a strong working relationship, whilst delivering expert customer service.

 

Financing & Cashflow

The company continues its longstanding relationship with Barclays Bank plc utilising banking and loan facilities. In addition, we call on stocking finance when required from Novuna Business Finance (part of Mitsubishi HC Capital UK plc) as well as John Deere Bank SA.

 

Cashflow is controlled by rigorous forecasting to ensure we maintain liquidity.

 

Minimal foreign currency transactions are processed and as such we do not partake in any hedging activities.

 

 

People

This year saw us recruit our first ever female apprentice technician, joining the growing pool of apprentices in line with John Deere’s strategy. In addition, we have increased our female representation in our parts departments.

 

We have continued to develop our management team with soft skills training delivered by an external party to ensure that our staff have the essential leadership qualities.

 

Furthermore, we identify any succession planning gaps and address these to ensure continuity of the business.

 

Headcount has increased this year and there are plans to grow it in the following year and as such the business is now requiring more HR support with an in-house role identified for 2024.

 

Health & Safety

Given the nature of our business we take health and safety in the workplace very seriously and retain an external company to audit and support us in this area throughout the year. We believe we have all policies and training in place to ensure the safety of our staff and customers.

THOMAS SHERRIFF AND COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 2 -
Principal risks and uncertainties

The management and execution of the strategic plan of the business are subject to several risks and uncertainties. The company is an important part of the agricultural community, and the directors believe that there are no perceived areas of risk or uncertainty that will have a significant impact on the profitability of the company which have not been addressed.

 

 

Key performance indicators

The directors consider that their key financial performance indicators are those that communicate the overall performance and strength of the company, these being turnover, gross profit margin and profit before tax. We also consider absorption and NOROS (Net Operating Return on Sales) in our monthly reviews to give an overview of the health of the trading business.

 

We also utilise a suite of reports created both in-house and by John Deere to look at other areas of the business such as market share, engaged hectares, labour recovery rates and customer satisfaction.

 

Statement by the directors in performance of their duties under s172(1) of the Companies Act 2006

The board of directors of Thomas Sherriff and Company Limited consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the Company (having regard to the stakeholders and matters set out in s172(1)(a-f) of the Act) in the decisions taken during the year ended 31 January 2024. In particular, by reference to the approval of our business plan and regular board meeting discussions which guide the future of the Company.

Our discussions and plans aim to secure the success of the Company in the long term for the benefit of stakeholders, employees and customers.

 

To achieve this, we have built a board with a great deal of industry experience to allow them to assess the risks facing the Company.

 

The Company gives full and fair consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion.

 

Where existing employees become disabled, it is the Company’s policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim.

 

As the board of directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating with the highest standards of business conduct and good governance. This contributes to the delivery of our plans for the Company's future. The intention is to continue to grow the Company's reputation and ensure that the actions of management and employees reflect the board's responsible behaviour.

 

In turn, this allows stakeholders to also benefit from the Company's success.

 

 

On behalf of the board

E J Turner
Director
21 October 2024
THOMAS SHERRIFF AND COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the supply, maintenance and hire of agricultural and ground care equipment.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £89,544. The directors do not recommend payment of a final dividend.

Directors

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

W S Hutchison
J W Laing
E J Turner
R R Lyall
N Hardie
(Appointed 1 February 2023)
Acquisition of own shares

The entity has bought back a total of 500,000 ordinary shares of £0.001 each for a total aggregate consideration of £1,500,000 under the share buy back scheme.

 

During the year the entity bought back 62,496 Ordinary shares of £0.001 each.

 

The maximum number of £0.001 Ordinary shares held during the year was 741,471.

 

62,496 Ordinary shares of £0.001 were cancelled by the company during the year.

 

The buyback of 62,496 Ordinary shares of £0.001 each represents 8% of the maximum number of £0.001 Ordinary shares held during the year.

 

None of the shares bought back were charged.

Business relationships

The directors are aware of the need to consider fostering the Company’s business relationships with suppliers, customers and others. The directors aim to maintain good relationships with both customers, suppliers and employees to ensure the smooth running of the business and the efficient and effective execution of the board's plans for the business.

Auditor

Greaves West & Ayre were appointed as auditor to the company 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.

Energy and carbon report

As the company has consumed more than 40,000 kWh of energy in this reporting period, it is considered a high energy user under these regulations and is required to report on its emissions, energy consumption and energy efficiency activities.

THOMAS SHERRIFF AND COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 4 -
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
339,960
354,637
- Electricity purchased
260,274
256,048
600,234
610,685
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
71.62
79.30
- Biofuel useage
1.24
0.94
- Fuel consumed for owned transport
508.37
446.27
581.23
526.51
Scope 2 - indirect emissions
- Electricity purchased
53.35
49.52
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
46.40
55.04
Total gross emissions
680.98
631.07
Intensity ratio
Tonnes CO2e per full-time employee
5.16
5.01
Quantification and reporting methodology

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

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per full time equivalent (FTE) source, a recommended ratio.

THOMAS SHERRIFF AND COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 5 -
Measures taken to improve energy efficiency

The Company has made efforts to improve their operational energy efficiency and reduce carbon emissions in recent years.

 

Biomass Boiler

A biomass boiler was installed in 2017 at the newly built head office site in Haddington and provides all hot water and heating. This is fed with wood pellets sourced locally, less than 30 miles away. No plans currently for upgrading the systems at other outlets.

 

LED lighting upgrades

In 2021 the Company introduced a policy of replacing all failed lighting with LED fittings. Investment has already been made at Head Office and has continued to be implemented across all other outlets as and when required.

 

Electric vehicle use

Following the first purchase of a hybrid vehicle in January 2020 we subsequently introduced a policy to replace vehicles with electric and hybrid vehicles where practical. We now have a fleet of 15 hybrid cars and 1 fully electric car across the sales and management team. We have charging points fitted at all owned outlets, with additional charging points installed at Haddington in the year to meet demand with the increased fleet.

 

Waste Recycling

Each outlet has recycling collections for plastic, cardboard and oil. Where possible we also reuse plastic and cardboard packaging.

Statement of directors' responsibilities

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

 

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

 

 

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

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the fair review of the business, principal risks and uncertainties facing the company as well as trading performance and future developments, please see the Strategic Report on page 1.

THOMAS SHERRIFF AND COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 6 -
Statement of disclosure to auditor

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

On behalf of the board
E J Turner
Director
21 October 2024
THOMAS SHERRIFF AND COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THOMAS SHERRIFF AND COMPANY LIMITED
- 7 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

THOMAS SHERRIFF AND COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THOMAS SHERRIFF AND COMPANY LIMITED (CONTINUED)
- 8 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in

line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including

fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

THOMAS SHERRIFF AND COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THOMAS SHERRIFF AND COMPANY LIMITED (CONTINUED)
- 9 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

To address the risk of fraud through management bias and override of controls, including any fraud associated with revenue recognition, we:

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

The laws and regulations which are considered to be significant to the entity relate to health and safety.

Discussions are held with management to determine whether any breaches have occurred as well as legal

expenditure being scrutinised for any evidence on non-compliance.

 

The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed

and from discussions with management.

THOMAS SHERRIFF AND COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THOMAS SHERRIFF AND COMPANY LIMITED (CONTINUED)
- 10 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

Roseanne Bennett FCA
Senior Statutory Auditor
For and on behalf of Greaves West & Ayre
22 October 2024
Chartered Accountants
Statutory Auditor
17 Walkergate
Berwick-upon-Tweed
Northumberland
TD15 1DJ
THOMAS SHERRIFF AND COMPANY LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
56,359,011
53,577,672
Cost of sales
(48,733,018)
(45,896,711)
Gross profit
7,625,993
7,680,961
Administrative expenses
(5,982,245)
(5,117,630)
Other operating income
38,865
47,866
Operating profit
4
1,682,613
2,611,197
Interest payable and similar expenses
8
(258,201)
(130,214)
Profit before taxation
1,424,412
2,480,983
Tax on profit
9
(362,803)
(476,320)
Profit for the financial year
1,061,609
2,004,663

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

THOMAS SHERRIFF AND COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2024
- 12 -
2024
2023
£
£
Profit for the year
1,061,609
2,004,663
Other comprehensive income
-
-
Total comprehensive income for the year
1,061,609
2,004,663
THOMAS SHERRIFF AND COMPANY LIMITED
BALANCE SHEET
AS AT 31 JANUARY 2024
31 January 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
97,285
133,760
Other intangible assets
11
2,605
4,447
Total intangible assets
99,890
138,207
Tangible assets
12
5,085,102
4,633,113
Investments
13
100
100
5,185,092
4,771,420
Current assets
Stocks
15
25,241,831
16,286,712
Debtors
16
4,595,229
7,576,987
Cash at bank and in hand
4,266
6,851
29,841,326
23,870,550
Creditors: amounts falling due within one year
17
(22,876,671)
(17,437,357)
Net current assets
6,964,655
6,433,193
Total assets less current liabilities
12,149,747
11,204,613
Creditors: amounts falling due after more than one year
18
(936,897)
(910,206)
Provisions for liabilities
Deferred tax liability
21
(454,846)
(320,947)
Net assets
10,758,004
9,973,460
Capital and reserves
Called up share capital
23
734
804
Share premium account
79,938
79,938
Capital redemption reserve
22,451
22,381
Profit and loss reserves
10,654,881
9,870,337
Total equity
10,758,004
9,973,460
The financial statements were approved by the board of directors and authorised for issue on 21 October 2024 and are signed on its behalf by:
E J Turner
R R Lyall
Director
Director
Company Registration No. 00906135
THOMAS SHERRIFF AND COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
- 14 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 February 2022
887
79,938
22,298
8,218,414
8,321,537
Year ended 31 January 2023:
Profit and total comprehensive income for the year
-
-
-
2,004,663
2,004,663
Dividends
10
-
-
-
(102,756)
(102,756)
Reduction of shares
23
(83)
-
0
83
-
-
Share buy back from reserves
-
-
-
(249,984)
(249,984)
Balance at 31 January 2023
804
79,938
22,381
9,870,337
9,973,460
Year ended 31 January 2024:
Profit and total comprehensive income for the year
-
-
-
1,061,609
1,061,609
Dividends
10
-
-
-
(89,544)
(89,544)
Reduction of shares
23
(70)
-
0
70
-
0
-
Share buy back from reserves
-
-
-
(187,521)
(187,521)
Balance at 31 January 2024
734
79,938
22,451
10,654,881
10,758,004
THOMAS SHERRIFF AND COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(865,533)
1,512,546
Interest paid
(258,201)
(130,214)
Income taxes paid
(535,021)
(471,093)
Net cash (outflow)/inflow from operating activities
(1,658,755)
911,239
Investing activities
Purchase of tangible fixed assets
(933,273)
(536,516)
Proceeds from disposal of tangible fixed assets
47,119
25,570
Net cash used in investing activities
(886,154)
(510,946)
Financing activities
Share buyback
(187,521)
(249,984)
Unpaid share capital paid
6,534
23,060
Movement in stocking loans
1,098,115
91,079
Repayment of bank loans
(145,666)
(141,958)
Payment of finance leases obligations
(68,903)
-
0
Proceeds from finance leases
769,589
-
0
Dividends paid
(89,544)
(102,756)
Net cash generated from/(used in) financing activities
1,382,604
(380,559)
Net (decrease)/increase in cash and cash equivalents
(1,162,305)
19,734
Cash and cash equivalents at beginning of year
(188,560)
(208,294)
Cash and cash equivalents at end of year
(1,350,865)
(188,560)
Relating to:
Cash at bank and in hand
4,266
6,851
Bank overdrafts included in creditors payable within one year
(1,355,131)
(195,411)
THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
- 16 -
1
Accounting policies
Company information

Thomas Sherriff and Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is 17 Walkergate, Berwick-upon-Tweed, Northumberland, TD15 1DJ.

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.

The company has taken advantage of the exemption under section 402 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for 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.

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.

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.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 ten 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.

1.5
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:

Website
25% Straight Line
1.6
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
2% straight line
Leasehold land and buildings
Over the term of the lease
Plant and equipment
10% & 20% straight line
Computers
25% straight line
Motor vehicles
20% straight line

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

1.7
Fixed asset investments

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

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

THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 18 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the company 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks and work in progress 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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.10
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.

THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 19 -
1.11
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.12
Equity instruments

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

1.13
Taxation

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

Current tax

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

THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
1
Accounting policies
(Continued)
- 21 -
Deferred tax

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

 

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

1.14
Employee benefits

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

 

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

 

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

1.15
Retirement benefits

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

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

1.17
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.

THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Stock Provision

Stock has been valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks.

 

Parts stock is depreciated on a reducing balance method over 3 years and whole goods are considered on an individual basis based on a number of different factors. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of agricultural and ground care equipment
50,991,586
48,910,847
Servicing of agricultural and ground care equipment
5,367,425
4,666,825
56,359,011
53,577,672
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
55,920,041
52,651,131
Europe
338,186
873,642
United States of America
-
50,951
Rest of World
100,784
1,948
56,359,011
53,577,672
2024
2023
£
£
Other revenue
Commissions received
27,652
33,618
THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 23 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
378,250
356,571
Depreciation of tangible fixed assets held under finance leases
81,451
-
Profit on disposal of tangible fixed assets
(25,536)
(12,093)
Amortisation of intangible assets
38,317
38,322
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 company
22,900
21,500
For other services
Taxation compliance services
4,440
3,600
All other non-audit services
3,473
3,431
7,913
7,031
6
Employees

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

2024
2023
Number
Number
Production
61
60
Selling and Distribution
48
43
Administration
23
23
Total
132
126

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,450,235
4,584,766
Social security costs
544,349
461,255
Pension costs
149,870
125,896
6,144,454
5,171,917
THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 24 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
496,765
337,493
Company pension contributions to defined contribution schemes
30,000
24,000
526,765
361,493

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 5 (2023 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
120,976
92,150
Company pension contributions to defined contribution schemes
6,000
6,000
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
258,201
130,214
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
228,904
461,369
Deferred tax
Origination and reversal of timing differences
133,899
14,951
Total tax charge
362,803
476,320
THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
9
Taxation
(Continued)
- 25 -

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
1,424,412
2,480,983
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
356,103
471,387
Tax effect of expenses that are not deductible in determining taxable profit
433
722
Gains not taxable
(10,659)
(2,298)
Effect of change in corporation tax rate
(9,239)
-
0
Permanent capital allowances in excess of depreciation
(107,734)
(8,442)
Deferred tax movement
133,899
14,951
Taxation charge for the year
362,803
476,320
10
Dividends
2024
2023
£
£
Interim paid
89,544
102,756
11
Intangible fixed assets
Goodwill
Website
Total
£
£
£
Cost
At 1 February 2023 and 31 January 2024
364,751
7,367
372,118
Amortisation and impairment
At 1 February 2023
230,991
2,920
233,911
Amortisation charged for the year
36,475
1,842
38,317
At 31 January 2024
267,466
4,762
272,228
Carrying amount
At 31 January 2024
97,285
2,605
99,890
At 31 January 2023
133,760
4,447
138,207
THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 26 -
12
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 February 2023
2,990,216
1,201,669
410,773
32,542
1,553,614
6,188,814
Additions
-
0
-
0
694,433
33,088
205,752
933,273
Disposals
(1,165)
-
0
-
0
-
0
(80,251)
(81,416)
At 31 January 2024
2,989,051
1,201,669
1,105,206
65,630
1,679,115
7,040,671
Depreciation and impairment
At 1 February 2023
396,642
119,189
222,496
16,223
801,151
1,555,701
Depreciation charged in the year
40,866
10,272
143,821
10,629
254,113
459,701
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(59,833)
(59,833)
At 31 January 2024
437,508
129,461
366,317
26,852
995,431
1,955,569
Carrying amount
At 31 January 2024
2,551,543
1,072,208
738,889
38,778
683,684
5,085,102
At 31 January 2023
2,593,574
1,082,480
188,277
16,319
752,463
4,633,113

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
705,620
-
0
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
100
100
14
Subsidiaries

Details of the company's subsidiaries at 31 January 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sherriff (Farmsight) Limited
17 Walkergate, Berwick Upon Tweed, TD15 1DJ
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
14
Subsidiaries
(Continued)
- 27 -
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Sherriff (Farmsight) Limited
100
-
0
15
Stocks
2024
2023
£
£
Work in progress
90,149
111,385
Finished goods and goods for resale
25,151,682
16,175,327
25,241,831
16,286,712
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,670,300
5,630,004
Unpaid share capital
10,406
16,940
Corporation tax recoverable
1,780
-
0
Other debtors
221,906
62,331
Prepayments and accrued income
690,837
1,867,712
4,595,229
7,576,987
17
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
1,505,258
365,411
Obligations under finance leases
20
548,202
-
0
Other borrowings
19
2,591,426
1,493,311
Trade creditors
16,895,824
11,434,244
Corporation tax
-
0
304,337
Other taxation and social security
415,953
831,790
Other creditors
269,764
172,305
Accruals and deferred income
650,244
2,835,959
22,876,671
17,437,357
THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 28 -
18
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
19
784,413
910,206
Obligations under finance leases
20
152,484
-
0
936,897
910,206
19
Loans and overdrafts
2024
2023
£
£
Bank loans
934,540
1,080,206
Bank overdrafts
1,355,131
195,411
Other loans
2,591,426
1,493,311
4,881,097
2,768,928
Payable within one year
4,096,684
1,858,722
Payable after one year
784,413
910,206

The bank loans are secured by way of a fixed charge over land and buildings and a debenture.

 

Interest on the loans are charged at 2% and 2.25% over the bank's sterling base rate.

 

The other loan is a stocking loan which is secured over the assets attributable to the loan.

 

 

 

20
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
566,055
-
0
In two to five years
188,133
-
0
754,188
-
0
Less: future finance charges
(53,502)
-
0
700,686
-
0

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 29 -
21
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
454,846
320,947
2024
Movements in the year:
£
Liability at 1 February 2023
320,947
Charge to profit or loss
133,899
Liability at 31 January 2024
454,846

The deferred tax liability set out above is in relation to accelerated capital allowances the effect is expected to reverse over the life of the assets.

 

Following the enactment of the Finance Act 2021 the deferred tax provision at the year end has been calculated using a rate of 25% (2023 25%).

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
149,870
125,896

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
672,000
741,471
672
742
A shares of 0.1p each
53,908
48,846
54
49
725,908
790,317
726
791
Issued and not fully paid
A shares of 0.1p each
8,060
13,122
8
13
Total equity share capital
734
804
THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
23
Share capital
(Continued)
- 30 -

500,000 Ordinary shares of £0.001 are currently being repurchased by the company over a period of 25 months. During the year to 31 January 2024, 69,471 of these shares were repurchased leaving no shares still to be repurchased as at 31 January 2024.

24
Operating lease commitments

Operating lease payments represent rentals payable by the company for a vehicle and IT equipment. Leases are negotiated for an average term of 3 years with an option to extend at the prevailing market rate.

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

2024
2023
£
£
Within one year
175,804
13,409
Between two and five years
499,865
1,549
675,669
14,958
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
180,165
292,446
26
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
2024
2023
£
£
Other related parties
15,042
10,654

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Other related parties
2,309
1,299
THOMAS SHERRIFF AND COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
- 31 -
27
Directors' transactions

Dividends totalling £83,874 (2023 - £95,164) were paid in the year in respect of shares held by the company's directors.

28
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit for the year after tax
1,061,609
2,004,663
Adjustments for:
Taxation charged
362,803
476,320
Finance costs
258,201
130,214
Gain on disposal of tangible fixed assets
(25,536)
(12,093)
Amortisation and impairment of intangible assets
38,317
38,322
Depreciation and impairment of tangible fixed assets
459,701
356,571
Movements in working capital:
Increase in stocks
(8,955,119)
(4,075,211)
Decrease/(increase) in debtors
2,977,004
(3,517,165)
Increase in creditors
2,957,487
6,110,925
Cash (absorbed by)/generated from operations
(865,533)
1,512,546
29
Analysis of changes in net debt
1 February 2023
Cash flows
Other non-cash changes
31 January 2024
£
£
£
£
Cash at bank and in hand
6,851
(2,585)
-
4,266
Bank overdrafts
(195,411)
(1,159,720)
-
(1,355,131)
(188,560)
(1,162,305)
-
(1,350,865)
Borrowings excluding overdrafts
(2,573,517)
(952,449)
-
(3,525,966)
Obligations under finance leases
-
68,903
(769,589)
(700,686)
(2,762,077)
(2,045,851)
(769,589)
(5,577,517)
2024-01-312023-02-01falseCCH SoftwareCCH Accounts Production 2024.210W S HutchisonJ W LaingE J TurnerR R LyallN HardieMr Neil HardieMr Neil Hardiefalsefalse009061352023-02-012024-01-3100906135bus:Director12023-02-012024-01-3100906135bus:Director22023-02-012024-01-3100906135bus:Director32023-02-012024-01-3100906135bus:Director42023-02-012024-01-3100906135bus:Director52023-02-012024-01-3100906135bus:Director62023-02-012024-01-3100906135bus:Director72023-02-012024-01-3100906135bus:RegisteredOffice2023-02-012024-01-31009061352024-01-31009061352022-02-012023-01-3100906135core:ContinuingOperations2022-02-012023-01-3100906135core:RetainedEarningsAccumulatedLosses2022-02-012023-01-3100906135core:RetainedEarningsAccumulatedLosses2023-02-012024-01-3100906135core:Goodwill2024-01-3100906135core:Goodwill2023-01-3100906135core:OtherResidualIntangibleAssets2024-01-3100906135core:OtherResidualIntangibleAssets2023-01-31009061352023-01-3100906135core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2024-01-3100906135core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-01-3100906135core:LandBuildingscore:OwnedOrFreeholdAssets2024-01-3100906135core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-01-3100906135core:PlantMachinery2024-01-3100906135core:ComputerEquipment2024-01-3100906135core:MotorVehicles2024-01-3100906135core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-3100906135core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-3100906135core:PlantMachinery2023-01-3100906135core:ComputerEquipment2023-01-3100906135core:MotorVehicles2023-01-3100906135core:CurrentFinancialInstrumentscore:WithinOneYear2024-01-3100906135core:CurrentFinancialInstrumentscore:WithinOneYear2023-01-3100906135core:Non-currentFinancialInstrumentscore:AfterOneYear2024-01-3100906135core:Non-currentFinancialInstrumentscore:AfterOneYear2023-01-3100906135core:CurrentFinancialInstruments2024-01-3100906135core:CurrentFinancialInstruments2023-01-3100906135core:Non-currentFinancialInstruments2024-01-3100906135core:Non-currentFinancialInstruments2023-01-3100906135core:ShareCapital2024-01-3100906135core:ShareCapital2023-01-3100906135core:SharePremium2024-01-3100906135core:SharePremium2023-01-3100906135core:CapitalRedemptionReserve2024-01-3100906135core:CapitalRedemptionReserve2023-01-3100906135core:RetainedEarningsAccumulatedLosses2024-01-3100906135core:RetainedEarningsAccumulatedLosses2023-01-3100906135core:ShareCapital2022-01-3100906135core:SharePremium2022-01-3100906135core:CapitalRedemptionReserve2022-01-3100906135core:RetainedEarningsAccumulatedLosses2022-01-3100906135core:ShareCapital2022-02-012023-01-3100906135core:SharePremium2022-02-012023-01-3100906135core:ShareCapital2023-02-012024-01-3100906135core:SharePremium2023-02-012024-01-310090613512023-02-012024-01-310090613512022-02-012023-01-310090613522023-02-012024-01-310090613522022-02-012023-01-31009061352023-01-31009061352022-01-3100906135core:WithinOneYear2024-01-3100906135core:WithinOneYear2023-01-3100906135core:Goodwill2023-02-012024-01-3100906135core:IntangibleAssetsOtherThanGoodwill2023-02-012024-01-3100906135core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-02-012024-01-3100906135core:LandBuildingscore:OwnedOrFreeholdAssets2023-02-012024-01-3100906135core:LandBuildingscore:LongLeaseholdAssets2023-02-012024-01-3100906135core:PlantMachinery2023-02-012024-01-3100906135core:ComputerEquipment2023-02-012024-01-3100906135core:MotorVehicles2023-02-012024-01-3100906135core:UKTax2023-02-012024-01-3100906135core:UKTax2022-02-012023-01-3100906135core:Goodwill2023-01-3100906135core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-01-3100906135core:LandBuildingscore:OwnedOrFreeholdAssets2023-01-3100906135core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-3100906135core:PlantMachinery2023-01-3100906135core:ComputerEquipment2023-01-3100906135core:MotorVehicles2023-01-3100906135core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-02-012024-01-3100906135core:BetweenTwoFiveYears2024-01-3100906135core:BetweenTwoFiveYears2023-01-3100906135core:OtherRelatedPartiescore:SaleOrPurchaseGoods2023-02-012024-01-3100906135core:OtherRelatedPartiescore:SaleOrPurchaseGoods2022-02-012023-01-3100906135bus:PrivateLimitedCompanyLtd2023-02-012024-01-3100906135bus:FRS1022023-02-012024-01-3100906135bus:Audited2023-02-012024-01-3100906135bus:FullAccounts2023-02-012024-01-31xbrli:purexbrli:sharesiso4217:GBP