Company registration number SC697070 (Scotland)
THORBURN HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
THORBURN HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mr A E Thorburn
Mr E R Thorburn
Mr P J D Morris
Company number
SC697070
Registered office
Unit 1
Duns Industrial Estate
Duns
Berwickshire
TD11 3HS
Auditor
Greaves West & Ayre
17 Walkergate
Berwick-upon-Tweed
Northumberland
TD15 1DJ
THORBURN HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 35
THORBURN HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

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

Review of the business

This financial year has marked a significant milestone for us as we successfully built and relocated to our new premises in Duns. Our new facility is equipped with state-of-the-art plant and machinery, enhancing our ability to fabricate products more efficiently. This transition has required considerable time and investment.

As a result, we have been able to expand our product range and, more importantly, increase our workforce, leading to additional employment opportunities.

 

We take pride in the fact that, despite the scale of our construction project, we have maintained a healthy turnover for the year.

 

The directors are mindful of the current economic climate and are confident that the demand for our diverse range of products and buildings will remain stable into the foreseeable future.

 

Key performance indicators:

 

Thorburn Holdings Limited (group) for the year:

Turnover - £14,849,908 (2022: £13,611,673)

Profit before tax - £171,443 (2022: £1,340,427)

 

Thorburn Group Limited (subsidiary) for the year:

Turnover - £14,056,914 (2022: £13,461,628)

Profit before tax - £206,984 (2022: £1,330,002)

 

Premier Livestock Handling Ltd (subsidiary) for the year:

Turnover - £25,042 (2022*: £151,586)

Loss before tax - £1,052 (2022*: profit £23,677)

 

Thorburn Group Berwick Limited (subsidiary) for the 8 month period since acquisition:

Turnover - £925,086

Loss before tax - £12,108

 

* The comparatives are presented for the 8 month period since acquisition in 2022.

Principal risks and uncertainties

The group's activities expose it to a variety of risks including credit risk. The directors regularly monitor and review financial risks.

 

Credit risk - Where deemed necessary credit checks are performed on potential customers before sales are transacted.

 

The group is also insured against risks such as financial loss and offsite storage or transit.

 

At the present time there appears to be no let up in the demand for the group's services and the directors are satisfied with the current and future order book.

On behalf of the board

Mr E R Thorburn
Director
26 November 2024
THORBURN HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

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

Principal activities

The principal activity of the company continued to be that of a holding company for the purposes of Thorburn Group Limited.

Results and dividends

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

No ordinary dividends were paid by the company. The directors do not recommend payment of a dividend.

Directors

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

Mr A E Thorburn
Mr E R Thorburn
Mr P J D Morris
Financial instruments
Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Credit risk

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Price risk

The group is exposed to price risk and constantly monitors the prices of steel and other raw materials in order to mitigate inflation and increases in prices.

Auditor

The auditors, Greaves West & Ayre, will be proposed for reappointment in accordance with Section 485 of the Companies Act 2006.

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

THORBURN HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
On behalf of the board
Mr E R Thorburn
Director
26 November 2024
THORBURN HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -

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.

THORBURN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THORBURN HOLDINGS LIMITED
- 5 -

Qualified opinion on financial statements

We were engaged to audit the financial statements of Thorburn Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2022 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 changes in equity, the group statement of cash flows, the company 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 Acceptable Practice).

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

The evidence available to us was limited in relation to the comparatives in the current year's financial statements which are derived from the financial statements for the year 30 November 2022. In our report on those financial statement we stated the following:

While management has taken steps to rectify these deficiencies in the current year, we were unable to obtain sufficient appropriate audit evidence to confirm the accuracy of the comparative figures for turnover and cost of sales.

The opening balance position of work in progress and amounts recoverable on contracts affects the cost of sales balance for the year ended 2023. As explained above, we were unable to verify these opening balances and consequently this affects our ability to assess the accuracy of the gross profit margin and the overall financial performance reported for the current year. This is because the opening balances, carried forward from the prior year, form the basis of the calculation for the current year's cost of sales, and any potential inaccuracies or misstatements in the opening balances could have a direct impact on the reported cost of sales figure.

 

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 qualified opinion.

Opinions on other matters prescribed by the Companies Act 2006

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

THORBURN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THORBURN HOLDINGS LIMITED
- 6 -
Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to stock, described above:

 

 

Notwithstanding our qualified opinion on the financial statements, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, performed subject to the pervasive limitation described above, we have not identified material misstatements in the strategic report and the directors' report.

 

Arising from the limitation of our work referred to above:

 

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

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.

Auditor's responsibilities for the audit of the financial statements

Our responsibility is to conduct an audit of the groups financial statements in accordance with International Standards on Auditing (UK) and to issue an auditor's report.

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 statement to material misstatement, including obtaining an understanding of how fraud might occur, by:

THORBURN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THORBURN HOLDINGS LIMITED
- 7 -

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.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.

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.

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.

Other matters which we are required to address

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 misstatements in respect of irregularities, including fraud.

THORBURN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THORBURN HOLDINGS LIMITED
- 8 -

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.

Craig Little CA (Senior Statutory Auditor)
For and on behalf of Greaves West & Ayre
28 November 2024
Chartered Accountants
Statutory Auditor
17 Walkergate
Berwick-upon-Tweed
Northumberland
TD15 1DJ
THORBURN HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
14,849,910
13,611,673
Cost of sales
(11,822,167)
(10,680,451)
Gross profit
3,027,743
2,931,222
Administrative expenses
(2,621,923)
(1,704,782)
Other operating income
76,570
138,532
Operating profit
4
482,390
1,364,972
Interest receivable and similar income
7
2,082
1,141
Interest payable and similar expenses
8
(313,030)
(25,686)
Profit before taxation
171,442
1,340,427
Tax on profit
9
277,020
(317,588)
Profit for the financial year
448,462
1,022,839
Profit for the financial year is all attributable to the owners of the parent company.
THORBURN HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
448,462
1,022,839
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
448,462
1,022,839
Total comprehensive income for the year is all attributable to the owners of the parent company.
THORBURN HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
596,897
587,147
Tangible assets
11
6,377,700
4,818,721
6,974,597
5,405,868
Current assets
Stocks
14
1,428,158
846,961
Debtors
15
4,163,802
4,041,235
Cash at bank and in hand
845,437
671,389
6,437,397
5,559,585
Creditors: amounts falling due within one year
16
(4,584,349)
(4,107,905)
Net current assets
1,853,048
1,451,680
Total assets less current liabilities
8,827,645
6,857,548
Creditors: amounts falling due after more than one year
17
(3,350,982)
(2,308,446)
Provisions for liabilities
Deferred tax liability
20
576,629
817,531
(576,629)
(817,531)
Government grants
21
(720,000)
-
0
Net assets
4,180,034
3,731,571
Capital and reserves
Called up share capital
23
100
100
Other reserves
2,190,953
2,190,953
Profit and loss reserves
1,988,981
1,540,518
Total equity
4,180,034
3,731,571

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 26 November 2024 and are signed on its behalf by:
26 November 2024
Mr E R Thorburn
Director
Company registration number SC697070 (Scotland)
THORBURN HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 NOVEMBER 2023
30 November 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
5,016,120
5,016,120
Current assets
Debtors
15
100
100
Creditors: amounts falling due within one year
16
(165,362)
(165,362)
Net current liabilities
(165,262)
(165,262)
Net assets
4,850,858
4,850,858
Capital and reserves
Called up share capital
23
100
100
Profit and loss reserves
4,850,758
4,850,758
Total equity
4,850,858
4,850,858

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 £0 (2022 - £0 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 26 November 2024 and are signed on its behalf by:
26 November 2024
Mr E R Thorburn
Director
Company registration number SC697070 (Scotland)
THORBURN HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
Share capital
Merger Reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 December 2021
100
2,190,953
517,679
2,708,732
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
-
1,022,839
1,022,839
Balance at 30 November 2022
100
2,190,953
1,540,518
3,731,571
Year ended 30 November 2023:
Profit and total comprehensive income for the year
-
-
448,462
448,462
Balance at 30 November 2023
100
2,190,953
1,988,981
4,180,034
THORBURN HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 December 2021
100
4,850,758
4,850,858
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 30 November 2022
100
4,850,758
4,850,858
Year ended 30 November 2023:
Profit and total comprehensive income
-
-
-
0
Balance at 30 November 2023
100
4,850,758
4,850,858
THORBURN HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,391,430
650,739
Interest paid
(297,451)
(25,686)
Income taxes (paid)/refunded
(429,830)
25,048
Net cash inflow from operating activities
664,149
650,101
Investing activities
Purchase of business
-
(170,000)
Purchase of intangible assets
(89,415)
50,000
Purchase of tangible fixed assets
(1,476,070)
(3,959,261)
Proceeds from disposal of tangible fixed assets
59,040
56,700
Purchase of subsidiaries, net of cash acquired
-
(276,951)
Opening bank at acquisition
-
77,123
Repayment of loans
(71,786)
(75,340)
Government grant received
750,000
-
0
Interest received
2,082
1,141
Net cash used in investing activities
(826,149)
(4,296,588)
Financing activities
Proceeds from new bank loans
883,430
897,365
Repayment of bank loans
(121,084)
-
Payment of finance leases obligations
(426,298)
1,924,682
Net cash generated from financing activities
336,048
2,822,047
Net increase/(decrease) in cash and cash equivalents
174,048
(824,440)
Cash and cash equivalents at beginning of year
671,389
1,495,829
Cash and cash equivalents at end of year
845,437
671,389
THORBURN HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
-
0
-
0
Cash and cash equivalents at end of year
-
0
-
0
THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 17 -
1
Accounting policies
Company information

Thorburn Holdings Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Unit 1, Duns Industrial Estate, Duns, Berwickshire, TD11 3HS.

 

The group consists of Thorburn Holdings Limited and all of its subsidiaries.

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. The principal accounting policies adopted are set out below.

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.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Thorburn 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 30 November 2023. 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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation 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.

 

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.

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.

 

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.6
Intangible fixed assets - goodwill

Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of ten years.

1.7
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:

Leasehold improvements
4% straight line
Plant and machinery
15% reducing balance
Office Equipment
15% reducing balance/25% straight line
Motor vehicles
25% reducing balance
THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 19 -

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.

1.8
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.

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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

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

1.9
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.

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.

THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 20 -

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.

1.10
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.

 

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.

1.11
Cash and cash equivalents

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

1.12
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.

THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

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.

THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
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.

1.14
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.

1.15
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.

1.16
Retirement benefits

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

THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.17
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.

1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales
14,849,910
13,611,673
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
14,849,910
13,611,673
2023
2022
£
£
Other revenue
Interest income
2,082
1,141
Grants received
30,000
-
THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 24 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(30,000)
-
Depreciation of owned tangible fixed assets
538,775
243,770
Profit on disposal of tangible fixed assets
(8,437)
(12,288)
Amortisation of intangible assets
79,665
67,010
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
18,377
15,268
For other services
Taxation compliance services
1,000
2,285
All other non-audit services
62,806
30,712
63,806
32,997

Included within other fees paid to auditor is £20,817 (2022: £10,532) in respect of IT hardware that has been recharged.

THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 25 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
21
-
-
-
Employees
89
79
-
-
Directors
2
4
-
-
Total
112
83
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,342,482
2,677,603
-
0
-
0
Social security costs
366,966
190,166
-
-
Pension costs
57,429
40,157
-
0
-
0
3,766,877
2,907,926
-
0
-
0
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
96
20
Other interest income
1,986
1,121
Total income
2,082
1,141
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
96
20
THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 26 -
8
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
297,452
25,686
Other interest
15,578
-
Total finance costs
313,030
25,686
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
3,283
(267,888)
Adjustments in respect of prior periods
(7,525)
-
0
Total current tax
(4,242)
(267,888)
Deferred tax
Origination and reversal of timing differences
(272,778)
584,281
Changes in tax rates
-
0
1,195
Total deferred tax
(272,778)
585,476
Total tax (credit)/charge
(277,020)
317,588

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

2023
2022
£
£
Profit before taxation
171,442
1,340,427
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
42,861
254,681
Tax effect of expenses that are not deductible in determining taxable profit
16,850
800
Tax effect of income not taxable in determining taxable profit
(9,616)
(3,312)
Tax effect of utilisation of tax losses not previously recognised
2,160
-
0
Unutilised tax losses carried forward
6,264
-
0
Adjustments in respect of prior years
123
-
0
Permanent capital allowances in excess of depreciation
(63,123)
(522,433)
Amortisation on assets not qualifying for tax allowances
-
0
2,472
Chargeable gains
-
0
371
Deferred tax: Origination and reversal of timing differences
(272,539)
585,009
Taxation (credit)/charge
(277,020)
317,588
THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 27 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 December 2022
735,157
Additions
89,415
At 30 November 2023
824,572
Amortisation and impairment
At 1 December 2022
148,010
Amortisation charged for the year
79,665
At 30 November 2023
227,675
Carrying amount
At 30 November 2023
596,897
At 30 November 2022
587,147
The company had no intangible fixed assets at 30 November 2023 or 30 November 2022.
THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 28 -
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Assets under construction
Plant and machinery
Office Equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 December 2022
377,029
-
0
1,713,657
3,766,797
32,920
537,889
6,428,292
Additions
-
0
-
0
1,737,596
170,743
11,860
100,654
2,020,853
Business combinations
-
0
-
0
-
0
329,945
14,041
63,645
407,631
Disposals
-
0
-
0
-
0
(118,190)
-
0
(94,750)
(212,940)
Transfers
-
0
3,359,735
(3,451,253)
91,518
-
0
-
0
-
0
At 30 November 2023
377,029
3,359,735
-
0
4,240,813
58,821
607,438
8,643,836
Depreciation and impairment
At 1 December 2022
-
0
-
0
-
0
1,343,910
17,074
248,587
1,609,571
Depreciation charged in the year
-
0
56,217
-
0
380,549
12,772
89,237
538,775
Eliminated in respect of disposals
-
0
-
0
-
0
(86,595)
-
0
(75,742)
(162,337)
Depreciation acquired on business combinations
-
0
-
0
-
0
223,795
4,996
51,336
280,127
At 30 November 2023
-
0
56,217
-
0
1,861,659
34,842
313,418
2,266,136
Carrying amount
At 30 November 2023
377,029
3,303,518
-
0
2,379,154
23,979
294,020
6,377,700
At 30 November 2022
377,029
-
0
1,713,657
2,422,887
15,846
289,302
4,818,721
The company had no tangible fixed assets at 30 November 2023 or 30 November 2022.
THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 29 -
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
5,016,120
5,016,120
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2022 and 30 November 2023
5,016,120
Carrying amount
At 30 November 2023
5,016,120
At 30 November 2022
5,016,120
13
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Thorburn Group Limited
Unit 1, Duns Industrial Estate, Berwickshire, TD11 3HS
Ordinary/Preference
100.00
-
Thorburn Group (Berwick) Limited
Ramparts Business Park, 20 Kings Mount Berwick-upon-Tweed, Northumberland, TD15 1TQ
Ordinary
-
100.00
Premier Livestock Handling Ltd
Unit 1, Duns Industrial Estate, Berwickshire, TD11 3HS
Ordinary
-
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Thorburn Group Limited
4,376,255
483,919
Thorburn Group (Berwick) Limited
540,212
(18,396)
Premier Livestock Handling Ltd
98,366
(935)
THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 30 -
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
136,404
83,573
-
-
Finished goods and goods for resale
1,291,754
763,388
-
0
-
0
1,428,158
846,961
-
-
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,655,345
2,192,982
-
0
-
0
Gross amounts owed by contract customers
783,662
998,650
-
0
-
0
Corporation tax recoverable
272,680
272,622
-
0
-
0
Other debtors
198,249
105,095
100
100
Prepayments and accrued income
253,866
471,886
-
0
-
0
4,163,802
4,041,235
100
100
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
130,106
177,015
-
0
-
0
Obligations under finance leases
19
501,345
336,586
-
0
-
0
Payments received on account
689,124
83,534
-
0
-
0
Trade creditors
2,113,019
2,400,092
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
65,362
65,362
Corporation tax payable
44,129
450,972
-
0
-
0
Other taxation and social security
507,279
254,979
-
-
Other creditors
283,927
128,811
100,000
100,000
Accruals and deferred income
315,420
275,916
-
0
-
0
4,584,349
4,107,905
165,362
165,362
THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 31 -
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
1,529,605
720,350
-
0
-
0
Obligations under finance leases
19
1,669,326
1,588,096
-
0
-
0
Other creditors
152,051
-
0
-
0
-
0
3,350,982
2,308,446
-
-
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,659,711
897,365
-
0
-
0
Payable within one year
130,106
177,015
-
0
-
0
Payable after one year
1,529,605
720,350
-
0
-
0

The bank development loan has a facility of up to £1.75 million and is secured by a floating charge covering all the property or undertaking of the company, and also standard security over land at Cheeklaw, Duns.

19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
686,466
489,392
-
0
-
0
In two to five years
1,895,510
1,849,680
-
0
-
0
In over five years
-
0
23,058
-
0
-
0
2,581,976
2,362,130
-
-
Less: future finance charges
(411,305)
(437,448)
-
0
-
0
2,170,671
1,924,682
-
0
-
0

Finance lease payments represent rentals payable by the company or group 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 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 32 -
20
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
927,344
817,531
Tax losses
(350,715)
-
576,629
817,531
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 December 2022
817,531
-
Credit to profit or loss
(272,778)
-
Transfer on acquisition
31,876
-
Liability at 30 November 2023
576,629
-

The deferred tax liability set out above is not expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

Following the enactment of the Finance Act 2021 the deferred tax provision at the period end has been calculated using a rate of 25% (2022: 25%).

21
Government grants
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
720,000
-
-
-
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
57,429
40,157

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.

THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 33 -
23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
70
70
70
70
Ordinary B shares of £1 each
25
25
25
25
Ordinary C shares of £1 each
5
5
5
5
100
100
100
100
24
Acquisition of a business

On 24 March 2023 the group acquired 100% percent of the issued capital of Thorburn Group (Berwick) Ltd (formerly known as SWP Engineering Services Limited).

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Cash and cash equivalents
235,787
-
235,787
Net current and fixed assets
31,382
Goodwill
371,315
Total consideration
638,484
The consideration was satisfied by:
£
Cash
338,350
Deferred consideration
300,134
638,484
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
767,953
Loss after tax
(8,857)
THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 34 -
25
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
448,462
1,022,839
Adjustments for:
Taxation (credited)/charged
(217,973)
317,588
Finance costs
313,030
25,686
Investment income
(2,082)
(1,141)
Government grant received
(750,000)
-
0
Gain on disposal of tangible fixed assets
(8,437)
(12,288)
Amortisation and impairment of intangible assets
79,665
67,010
Depreciation and impairment of tangible fixed assets
538,775
232,945
Increase in deferred income
720,000
-
Movements in working capital:
Increase in stocks
(581,197)
(107,971)
Increase in debtors
(50,723)
(663,882)
Increase/(decrease) in creditors
901,910
(230,048)
Cash generated from operations
1,391,430
650,738
26
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
-
-
Cash absorbed by operations
-
-
27
Analysis of changes in net debt - group
1 December 2022
Cash flows
Acquisitions and disposals
New finance leases
30 November 2023
£
£
£
£
£
Cash at bank and in hand
671,389
512,398
(338,350)
-
845,437
Borrowings excluding overdrafts
(897,365)
(762,346)
-
-
(1,659,711)
Obligations under finance leases
(1,924,682)
426,298
-
(672,287)
(2,170,671)
(2,150,658)
176,350
(338,350)
(672,287)
(2,984,945)
THORBURN HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 35 -
28
Analysis of changes in net funds - company
1 December 2022
30 November 2023
£
£
2023-11-302022-12-01falsefalseCCH SoftwareCCH Accounts Production 2024.310Mr A E ThorburnMr E R ThorburnMr P J D 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