Registration number:
Sadie Coles H Q Limited
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Brebners
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Sadie Coles H Q Limited
Contents
Company Information |
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Strategic Report |
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Director's Report |
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Statement of Director's Responsibilities |
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Independent Auditor's Report |
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Income Statement |
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Statement of Financial Position |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Sadie Coles H Q Limited
Company Information
Director |
Sadie Coles |
Registered office |
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Auditor |
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Sadie Coles H Q Limited
Strategic Report for the Year Ended 31 July 2024
The director presents her strategic report for the year ended 31 July 2024.
Principal activity
The principal activity of the company is that of the operation of art galleries.
Fair review of the business
Sadie Coles HQ is a contemporary art gallery occupying three spaces in the West End of London which opened in 1997 to present the work of living artists. The inaugural exhibition - new paintings by American artist John Currin - was presented in parallel to an exhibition by British artist Sarah Lucas, ‘The Law’, in a temporary location on St John Street.
This pairing established the continued international dimension of the gallery’s programme with Sadie Coles HQ currently representing over fifty artists from around the world.
Sadie Coles HQ regularly participates in up to eight or nine international art fairs each year, from leaders in their field ArtBasel (Hong Kong, Paris, Basel & Miami) and frieze (London & Seoul), to other territories such as Tokyo Gendai and miart Milan.
Sadie Coles HQ is an active supporter of international contemporary art - donating regularly to institutions and museums beyond the private sector and supporting the museum exhibitions and catalogues of its artists. The gallery operates its own publishing wing, producing books and catalogues independently or in partnership with art publishers. It also hosts younger galleries through its Shop residency and has a performance platform GARGLE.
Mirroring a slowdown in the wider market the turnover has decreased during the period from £52.3m to £28.7m. While this wider market slowdown has also squeezed gross profit margins, the company has continued to remain profitable, reflecting the core strength of the business, albeit at reduced levels compared to previous years. This has been achieved with lower distribution costs and overheads. The director is also pleased that despite this slowdown, the company remains in a strong net current asset position of £28.8m, with cash in the bank of £5.8m.
Financial Key Performance Indicators
The company's key financial and other performance indicators during the year were as follows:
Unit |
2024 |
2023 |
|
Turnover |
£ |
28,697,937 |
52,300,661 |
Profit before taxation |
£ |
399,731 |
5,512,102 |
Gross profit margin |
% |
25 |
31 |
The director seeks to ensure that responsible business practice is fully integrated into the management of the company's operations and into the culture of all parts of its business.
Financial Instruments
The company's principle financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations. No trading in financial instruments is undertaken.
Sadie Coles H Q Limited
Strategic Report for the Year Ended 31 July 2024
Principal risks and uncertainties
Due to the nature of the financial instruments used by the company there is no exposure to price risk. Other financial risks are managed as follows, bank balances are maintained to provide sufficient working capital and are regularly reviewed by the director to ensure efficient use of funds.
The company is exposed to interest rate risk on surplus funds invested, trade debtors are managed via terms of trade and regular monitoring of outstanding amounts. Trade creditors are managed by ensuring that sufficient funds are available to meet liabilities when due.
The company is company is exposed to foreign exchange risk as it sells and purchases artwork and incurs certain overheads in foreign currencies. The director regularly reviews currency markets in order to mitigate the impact of significant currency movements.
Future developments
The gallery is looking forward to the opening of a newly refurbished 6,000 sq ft Georgian townhouse on Savile Row in the autumn of 2025 and is confident of continued success.
Section 172(1) statement
Section 172 of The Companies Act 2006 states that a director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In doing so a director of a company must have regard (amongst other matters) to:
a. The likely consequences of any decision in the long term;
b. The interests of the company’s employees;
c. The need to foster the company’s business relationships with suppliers, customers and others;
d. The impact of the company’s operations on the community and the environment;
e. The desirability of the company maintaining a reputation for high standards of business conduct; and
f. The need to act fairly between members of the company.
The following summarises how the director has fulfilled her duties under Section 172 of The Companies Act 2006.
Decision making
The company fulfils its duties to act in good faith to promote the activities of the gallery, which is the exhibition and promotion of the work of the artists it represents. This takes the form of mounting exhibitions of new contemporary art in its three London galleries and taking part in around ten international trade fairs a year.
The company aims to achieve the very best standards of operational and curatorial practice; to be accessible across both digital and IRL platforms; to be always client oriented and inspire trust; to innovate and be forward thinking. The company reviews and considers the various stakeholders when arriving at recommended business decisions consistent with its strategy. This innovative strategy allows us to be competitive, flexible and resilient while also responding to a rapidly changing market situation.
Examples include:
• Ongoing review of the company’s operational structure to ensure the organisational model remains fit for the future; and
• Founding member of the Gallery Climate Coalition (GCC), a charitable organisation that aims to facilitate at least a 50% reduction in the sector’s carbon emissions by 2030.
Sadie Coles H Q Limited
Strategic Report for the Year Ended 31 July 2024
Employee engagement
The company values the knowledge and experience of its staff and invests in training and skills acquisition to encourage personal development. We aim to be a responsible employer in our approach to the pay and benefits of employees. The health, safety and wellbeing of our employees is one of the primary considerations in the way we do business. Our Human Resources function strives to continually deliver a consistent support to our employees with regular meetings, annual reviews, and an open-door policy.
Business Relationships
The company engages with a variety of external stakeholders, including clients, artists, collaborators, and suppliers. It prioritises maintaining close relationships with artists and clients and transparent relationships with suppliers to build integrity and reputation.
Community and Environment
The company is a founding member of Gallery Climate Coalition, an industry association which aims to promote sustainability and environmental reform within the art world. The company strives to improve its carbon footprint by examining all aspects of our business to find energy-saving, recycling and resource-sharing initiatives. The Company contributes to other international bodies that aim to improve industry standards, promote collaboration, innovation, and support. It actively supports several arts and educational organisations.
Culture and values
The company’s culture is characterised by innovation, professionalism, responsibility, and a deep respect for the clients of the gallery, artists, or collectors. It aims to maintain good working practices and a reputation for high standards of business conduct to secure long-term success. The company embraces diversity, flexibility, sustainability and fully engages with continuous improvement both within the organisation as well as within our creative industry.
Approved by the
.........................................
Director
Sadie Coles H Q Limited
Director's Report for the Year Ended 31 July 2024
The director presents her report and the financial statements for the year ended 31 July 2024.
Director of the company
The director who held office during the year was as follows:
Dividends
During the year interim dividends of £1,347,000 (2023: £451,000) were paid. No final dividend is proposed.
Disclosure of information in the strategic report
The company has chosen in accordance with S.414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained within the director's report. It has done so in respect of future developments and financial instruments.
Streamlined energy and carbon reporting
The UK Government's Streamlined Energy and Carbon Reporting (SECR) policy was implemented on 1 April 2019. The tables below represent the company's energy use and associated greenhouse gas (GHG) emissions from electricity, gas, and fuel in the UK for the year ended 31 July 2024. The data covers all five (2023: four) of the company's sites in the UK.
UK energy use
The total energy consumption of Sadie Coles H Q Limited is broken down below:
Scope |
2024 |
2024 |
|
Gas |
Scope 1 |
- |
- |
Electricity |
Scope 2 |
62,294 |
100 |
Transport Fuel |
Scope 3 |
- |
- |
Total |
62,294 |
100 |
|
|
Scope |
2023 |
2023 |
|
Gas |
Scope 1 |
- |
- |
Electricity |
Scope 2 |
59,535 |
100 |
Transport Fuel |
Scope 3 |
- |
- |
Total |
59,535 |
100 |
|
|
Sadie Coles H Q Limited
Director's Report for the Year Ended 31 July 2024
Associated greenhouse gas emissions
The total associated greenhouse gas (GHG) emissions associated with this energy use is broken down below:
2024 |
2024 |
|
Davies St - Electricity |
5,747 |
45 |
12 Kingly St - Electricity |
2,917 |
23 |
62 Kingly St - Electricity |
2,901 |
22 |
Bury St - Electricity |
1,333 |
10 |
Total |
12,898 |
100 |
|
2023 |
2023 |
|
Davies St - Electricity |
5,361 |
45 |
12 Kingly St - Electricity |
2,312 |
19 |
62 Kingly St - Electricity |
2,821 |
24 |
Bury St - Electricity |
1,494 |
12 |
Total |
11,988 |
100 |
|
Emissions intensity ratio
After careful consideration, Sadie Coles H Q Limited has decided that the Intensity Ratio used for SECR reporting will be kgCO2e per average employee in the period.
The intensity ratio is therefore 339 kgCO2e / employee (2023: 324 kgCO2e / employee).
Energy efficiency measures
The company continues to implement the following measures:
• Preference to use sea freight rather than air freight, which produces 95% less carbon, for shipping of artwork.
• Move to carbon zero electric transport within London. The company currently uses Zhero, who have recently added larger vehicles to their fleet and so will now be able to transport larger items for the gallery.
• Re-use and recycle packaging to reduce the waste produced by the gallery.
• Change energy suppliers to those with carbon neutral credentials.
Sadie Coles H Q Limited
Director's Report for the Year Ended 31 July 2024
Methodology used
The calculations use the GHG Protocol Methodology.
The energy consumption was collected as follows:
• The Davies Street office and gallery electricity consumption was that invoiced by British Gas and Ecotricity.
• The 12 Kingly Street office electricity consumption was that invoiced by Ecotricity.
• The 62 Kingly Street office and gallery electricity consumption was that invoiced by EDF Energy.
• The Bury Street office and gallery electricity consumption was that invoiced by Ecotricity.
The emissions were calculated using conversion factors from the government's GHG reporting publications (see below for references). The emissions factor for Grid Electricity scope 2 emissions produced from ‘electricity generated’ was used to calculate emissions associated with electricity consumption.
References:
• https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2022
• https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2023
• https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2024
Disclosure of information to the auditor
The director has taken steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that she knows of and of which she knows the auditors are unaware.
Approved by the director on
.........................................
Sadie Coles
Director
Sadie Coles H Q Limited
Statement of Director's Responsibilities
The director acknowledges her responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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.
Sadie Coles H Q Limited
Independent Auditor's Report to the Members of Sadie Coles H Q Limited
for the Year Ended 31 July 2024
Opinion
We have audited the financial statements of Sadie Coles H Q Limited (the 'company') for the year ended 31 July 2024, which comprise the Income Statement, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Sadie Coles H Q Limited
Independent Auditor's Report to the Members of Sadie Coles H Q Limited
for the Year Ended 31 July 2024
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of director's remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities (set out on page 8), the director is 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 director determines 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 director is 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 director either intends 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.
Sadie Coles H Q Limited
Independent Auditor's Report to the Members of Sadie Coles H Q Limited
for the Year Ended 31 July 2024
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:
Based on our understanding of the company and the industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006) and UK corporate taxation laws, health and safety legislation, the Modern Slavery Act 2015, Anti-Money laundering regulations for Art Market Participants, and data protection legislation. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.
We understood how the company is complying with relevant legislation by making enquiries of management. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements.
We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection and understanding of legal costs; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud.
Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.
The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.
The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission, misrepresentation or forgery.
Sadie Coles H Q Limited
Independent Auditor's Report to the Members of Sadie Coles H Q Limited
for the Year Ended 31 July 2024
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.
......................................
For and on behalf of
130 Shaftesbury Avenue
W1D 5AR
Sadie Coles H Q Limited
Income Statement for the Year Ended 31 July 2024
Note |
2024 |
(As restated) |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Distribution costs |
( |
( |
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
65,807 |
5,473,873 |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
- |
|
333,924 |
38,229 |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
Sadie Coles H Q Limited
Statement of Financial Position as at 31 July 2024
Note |
2024 |
(As restated) |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investment property |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
60 |
60 |
|
Capital redemption reserve |
40 |
40 |
|
Profit and loss account |
30,777,530 |
31,918,037 |
|
Shareholders' funds |
30,777,630 |
31,918,137 |
Approved and authorised by the
......................................................................
Sadie Coles
Director
Company registration number: 03211376
Sadie Coles H Q Limited
Statement of Changes in Equity for the Year Ended 31 July 2024
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 August 2023 |
|
|
|
|
Prior period adjustment |
- |
- |
( |
( |
At 1 August 2023 (As restated) |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 July 2024 |
|
|
|
|
Share capital |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 August 2022 |
|
|
|
|
Prior period adjustment |
- |
- |
( |
( |
At 1 August 2022 (As restated) |
|
|
|
|
Profit for the year (As restated) |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 July 2023 (As restated) |
60 |
40 |
31,918,037 |
31,918,137 |
Sadie Coles H Q Limited
Statement of Cash Flows for the Year Ended 31 July 2024
Note |
2024 |
(As restated) |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss on disposal of tangible assets |
- |
|
|
Finance income |
( |
( |
|
Finance costs |
|
- |
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Decrease/(increase) in debtors |
|
( |
|
(Decrease)/increase in creditors |
( |
|
|
Cash generated from operations |
( |
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
( |
( |
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
- |
|
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
- |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 August |
|
|
|
Cash and cash equivalents at 31 July |
5,848,927 |
10,751,277 |
Sadie Coles H Q Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal activity of the company continued to be that of the operation of art galleries.
The principal place of business is:
62 Kingly Street
London
W1B 5QN
Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention and are presented in sterling, which is the functional currency of the entity.
Going concern
The company made a profit for the year ended 31 July 2024 and had net assets amounting to £30,777,630 at that date, including cash at bank of £5,848,927.
The director and management team have produced unaudited forecasts which show improved revenue and profits are expected in the year ended 31 July 2025.
After making enquiries and taking into account the circumstances outlined above the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the director continues to adopt the going concern basis in preparing the financial statements.
Sadie Coles H Q Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Other than those involving estimations there are no judgements that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements. |
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
- Useful economic lives of tangible fixed assets
Tangible fixed assets are depreciated to their estimated residual values over their estimated useful lives. The company exercises judgement to determine these useful lives and residual values.
- Valuation of investment property
Investment properties are held at fair value. The company exercises judgement to determine the fair value at the year end date.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
Turnover in respect of the sale of artworks are recognised when the company has a legal right to consideration and is recognised in full at the time of the contractual agreement of sale.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, 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 income 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.
Sadie Coles H Q Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
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 over their estimated useful lives as follows:
Asset class |
Depreciation method and rate |
Short leasehold property improvements |
10-33% straight-line or over the period of the lease if shorter |
Fixtures and fittings |
20% straight-line |
Motor vehicles |
20% straight-line |
Investment property
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Sadie Coles H Q Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Consignment stock
The company holds and sells stock for certain third parties where the owner of the stock retains the risks and rewards of ownership. Such stock is not included in the company's statement of financial position.
When consignment stock is sold on behalf of third parties the company recognises the sale proceeds within turnover and accounts for the commission element due to the third parties within cost of sales.
Certain items of stock are held jointly with third parties. Stock at the year end date includes the company's share of such items. Where items are sold during the year the profit and loss amount includes the company's share of the revenue, cost of sales and any incidental costs.
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.
Operating leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term on a straight-line 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.
Turnover |
The analysis of the company's revenue for the year from continuing operations is as follows:
2024 |
(As restated) |
|
Sale of Artwork |
|
|
The turnover and operating profit for the year was derived from the company's principal activity. In the director's opinion the disclosure of the geographical split of turnover would be seriously prejudicial to the interests of the company and in accordance with the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 Section 68 (5) this has not been disclosed.
Sadie Coles H Q Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2024 |
2023 |
|
Rental income |
|
|
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Foreign exchange (gains)/losses |
( |
|
Operating lease expense - property |
|
|
Bad debts |
(371,160) |
207,999 |
Loss on disposal of property, plant and equipment |
- |
|
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Other finance income |
|
|
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest expense on other finance liabilities |
|
- |
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
Sadie Coles H Q Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
The average number of persons employed by the company (including the director) during the year, analysed by category was as follows:
2024 |
2023 |
|
Administration and support |
|
|
Sales |
|
|
|
|
Key management compensation |
Key management includes the directors and members of senior management. The compensation paid or payable to key management for employee services was as follows:
2024 |
2023 |
|
Wages and salaries |
732,265 |
1,410,791 |
Post-employment benefits |
69,041 |
19,319 |
801,306 |
1,430,110 |
Director's remuneration |
The director's remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Auditor's remuneration |
2024 |
2023 |
|
Fees payable to the auditors |
||
Audit of the financial statements |
24,000 |
18,000 |
Other fees to auditors |
||
Other services |
|
|
Sadie Coles H Q Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Taxation |
Tax charged/(credited) in the income statement
2024 |
(As restated) |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
- |
( |
217,916 |
1,265,301 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
(As restated) |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax credit from unrecognised temporary difference from a prior period |
( |
( |
Tax increase from effect of capital allowances and depreciation |
|
|
Under/(Over) provision of tax in prior periods |
|
( |
Total tax charge |
|
|
Effect of corporation tax rates
The corporate tax rate applicable for the year ended 31 July 2024 was 25%. From 1 April 2023 the mainstream corporation tax rate increased to 25%. The effective rate for the year ended 31 July 2023 was 21%.
Sadie Coles H Q Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Deferred tax
Deferred tax assets and liabilities
2024 |
Asset |
Accelerated capital allowances |
|
Other timing differences |
|
|
2023 |
Asset |
Accelerated capital allowances |
|
Other timing differences |
|
|
Tangible assets |
Short leasehold property improvements |
Fixtures and fittings |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 August 2023 |
|
|
|
|
Additions |
|
|
- |
|
At 31 July 2024 |
|
|
|
|
Depreciation |
||||
At 1 August 2023 |
|
|
|
|
Charge for the year |
|
|
- |
|
At 31 July 2024 |
|
|
|
|
Carrying amount |
||||
At 31 July 2024 |
|
|
- |
|
At 31 July 2023 |
|
|
- |
|
Sadie Coles H Q Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Investment properties |
2024 |
|
Fair value |
|
At 1 August 2023 |
|
At 31 July 2024 |
|
The investment property has been reflected at fair value as estimated by the director based on rental yields and other market factors at an amount of £1,242,522.
Stocks |
2024 |
2023 |
|
Finished goods and goods for resale |
|
|
Stock is stated after provisions for impairment of £109,012 (2023: £10,173).
Debtors |
Note |
2024 |
2023 |
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Deferred tax asset |
|
|
|
Corporation tax asset |
|
- |
|
Total current trade and other debtors |
|
|
Trade debtors are stated after provisions for impairment of £114,151 (2023: £784,561).
Cash and cash equivalents |
2024 |
2023 |
|
Cash on hand |
|
|
Cash at bank |
|
|
|
|
Sadie Coles H Q Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Creditors |
2024 |
(As restated) |
|
Due within one year |
||
Trade creditors |
|
|
Social security and other taxes |
|
|
Other payables |
|
|
Accruals and deferred income |
|
|
Corporation tax liability |
- |
610,046 |
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
60 |
|
60 |
There are no restrictions on the repayment of capital or the distribution of dividends.
Commitments and guarantees |
The total of future minimum lease payments not reflected on the statement of financial position is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Sadie Coles H Q Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Operating leases - lessor
The total of future minimum lease receipts is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
Dividends |
Interim dividends paid
2024 |
2023 |
|||
Interim dividend of £ |
|
|
||
Analysis of changes in net debt |
At 1 August 2023 |
Financing cash flows |
At 31 July 2024 |
|
Cash and cash equivalents |
|||
Cash |
10,751,277 |
(4,902,350) |
5,848,927 |
|
( |
|
|
|
Related party transactions |
The dividends paid in the year as shown in note 22 were paid to the director.
Transactions with directors |
At 31 July 2024 an amount of £815,902 (2023: £1,346,186) was due to the company from the director. During the year advances of £790,440 and repayments of £1,347,000 were made. Interest of £26,276 (2023: £17,787) is payable to the company at 2.25% per annum. There are no set terms in place.
Sadie Coles H Q Limited
Notes to the Financial Statements for the Year Ended 31 July 2024
Prior year adjustment |
During the year the director identified income relating to the years to 31 July 2023 and 31 July 2024 which had been recognised in earlier years. This has been corrected in these financial statements and the comparative figures restated.
The effect of these adjustments on the comparative figures relating to the year to 31 July 2023 is to decrease the brought forward retained earnings by £887,752, increase sales by £624,982, increase cost of sales by £252,447, increase accruals and deferred income by £2,749,810, and decrease trade creditors by £2,026,356 from that previously reported.