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Registration number: 07516262

Prepared for the registrar

Sherbornes Solicitors Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 May 2024

 

Sherbornes Solicitors Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 9

 

Sherbornes Solicitors Limited

Company Information

Directors

S L Birks

D J Sherborne

T K Brunsdon

M J Lennon

Registered office

4 Royal Crescent
Cheltenham
GL50 3DA

Bankers

Handelsbanken
First Floor Regent House
65 Rodney Road
Cheltenham
GL50 1HX

Accountants

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Sherbornes Solicitors Limited

(Registration number: 07516262)
Balance Sheet as at 31 May 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

5

36,592

63,816

Current assets

 

Debtors

6

608,291

590,628

Cash at bank and in hand

 

227,044

172,806

 

835,335

763,434

Creditors: Amounts falling due within one year

7

(292,354)

(217,262)

Net current assets

 

542,981

546,172

Total assets less current liabilities

 

579,573

609,988

Deferred tax liabilities

8

(9,047)

(15,904)

Net assets

 

570,526

594,084

Capital and reserves

 

Called up share capital

10

10

Share premium reserve

638

638

Profit and loss account

569,878

593,436

Shareholders' funds

 

570,526

594,084

For the financial year ending 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 27 February 2025 and signed on its behalf by:
 


T K Brunsdon
Director


M J Lennon
Director

 

Sherbornes Solicitors Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

 

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
4 Royal Crescent
Cheltenham
GL50 3DA

 

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Judgements

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Key sources of estimation uncertainty

Bad debt provision - due to the nature of the business, there are high levels of trade debtors at the year end, and therefore a risk that some of these balances may be irrecoverable. A bad debt review is carried out, where debts are assessed and provided against when the recoverability of these balances is considered to be uncertain. The carrying amount is £86,904 (2023 - £43,983).

Amounts recoverable on contracts - The process of assessing amounts recoverable on contracts requires various estimates and judgements to be made. Fee earners are required to record time spent on client assignments and this is used as the basis for the amounts recoverable on contracts estimate. A year end report of time on all assignments is circulated to fee earners to identify likely recoverable amounts. The carrying amount is £27,263 (2023 - £25,243).

 

Sherbornes Solicitors Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Revenue recognition

Fee income represents the fair value of services provided during the year on client assignments. Fair value reflects the amounts expected to be recoverable from clients based on time spent, skills provided and expenses incurred, and exclude VAT. Income is recognised as contract activity progresses and the right to consideration is secured, except where the final outcome cannot be assessed with reasonable certainty.

Income in respect of contingent fee assignments is recognised in the period when the contingent event occurs and collectability of the fee is assured.

Unbilled income on individual client assignments is included as amounts recoverable on contracts within debtors.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Goodwill

Goodwill is amortised over its useful life, which shall not exceed five years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Brand names

Over 4 years

Goodwill

Over 4 years

 

Sherbornes Solicitors Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

4 years straight line

Motor vehicles

4 years straight line

Cycle to work scheme assets

5 years straight line

Computer equipment

3 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from clients for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Sherbornes Solicitors Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

Sherbornes Solicitors Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 10 (2023 - 8).

 

4

Intangible assets

Goodwill
 £

Brand names
 £

Total
£

Cost and amortisation

At 31 May 2023 and 31 May 2024

33,000

150,000

183,000

Carrying amount

At 31 May 2023 and 31 May 2024

-

-

-

 

Sherbornes Solicitors Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

 

5

Tangible assets

Fixtures and fittings
 £

Motor vehicles
 £

Cycle to work scheme assets
 £

Computer equipment
 £

Total
£

Cost

At 1 June 2023

31,065

105,437

8,104

22,256

166,862

Additions

-

-

3,558

2,335

5,893

Disposals

(7,006)

-

-

(8,743)

(15,749)

At 31 May 2024

24,059

105,437

11,662

15,848

157,006

Depreciation

At 1 June 2023

26,385

52,718

3,640

20,303

103,046

Charge for the year

2,699

26,359

2,214

1,845

33,117

Eliminated on disposal

(7,006)

-

-

(8,743)

(15,749)

At 31 May 2024

22,078

79,077

5,854

13,405

120,414

Carrying amount

At 31 May 2024

1,981

26,360

5,808

2,443

36,592

At 31 May 2023

4,680

52,719

4,464

1,953

63,816

 

Sherbornes Solicitors Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 May 2024

 

6

Debtors

2024
 £

2023
 £

Trade debtors

370,121

347,820

Amounts recoverable on contracts

27,068

25,243

Other debtors

185,818

186,855

Prepayments

25,284

30,710

 

608,291

590,628

Less non-current portion

(155,000)

(154,986)

Details of non-current trade and other debtors

£155,000 (2023 - £154,986) of other debtors is classified as non-current. This relates to a loan made to Acrylic Aquariums.

 

7

Creditors

2024
 £

2023
 £

Due within one year

Directors' loan accounts

-

312

Trade creditors

60,047

55,236

Social security and other taxes

36,365

39,800

Outstanding defined contribution pension costs

946

468

Other creditors

2,154

-

Accrued expenses

13,133

9,078

Corporation tax liability

141,701

84,823

Deferred income

38,008

27,545

292,354

217,262

 

8

Deferred tax

Deferred tax assets and liabilities

2024

Liability
£

Fixed asset timing differences

9,047

2023

Liability
£

Fixed asset timing differences

15,904

 

9

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £4,055 (2023 - £Nil).

 

10

Related party transactions

At 31 May 2024, the company was owed by the director D Sherborne £Nil (2023 - £1,869) and owed S Birks £Nil (2023 - £312), all in the form of directors' loan accounts. The loans have no fixed repayment terms and no interest is payable on the loans.