REGISTERED NUMBER: 15416891 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30th September 2024 |
for |
SORCERER HOLDINGS LIMITED |
REGISTERED NUMBER: 15416891 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30th September 2024 |
for |
SORCERER HOLDINGS LIMITED |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Contents of the Consolidated Financial Statements |
for the year ended 30th September 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Profit and Loss Account | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
SORCERER HOLDINGS LIMITED |
Company Information |
for the year ended 30th September 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Statutory Auditors |
Monometer House |
Rectory Grove |
Leigh on Sea |
Essex |
SS9 2HN |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Group Strategic Report |
for the year ended 30th September 2024 |
The directors present their strategic report of the company and the group for the year ended 30th September 2024. |
Introduction |
The directors have pleasure in presenting their strategic report for the year ended 30th September 2024. |
The directors aim to present a balanced and comprehensive review of the development and performance of the group's business during the year and its position at the year end. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties that the group faces. |
Business review |
In the financial year, the directors arranged to enter into a new long term lease with the group's parent, Sorcerer Holdings Limited. The lease provides for a 25 term that provides long term strategic advantages in terms of planning for the future as well as being able to offer valued tenancies longer term arrangements. |
The directors note that the trading results for the financial year were impacted by the continued recessionary market conditions in the UK that first began at the end of the previous financial trading year through challenging levels of inflation and interest rate rises for the consumer to address. |
The business was able to report a level of gross profit margin of 19.8% (down from 23.2% in FY23). The directors take comfort from noting that the underlying gross margins returned to expected levels in this financial year, recovering from excess stock sell off in the last financial year, noting that the gross profit margin impact arose solely from employment costs that rose significantly over the period through the increasing levels of the National Minimum Pay levels and related pay matters. The directors have taken action to address the clear need to reduce employment costs as a consequence through the implementation of changes to operational trading hours and staffing levels generally. The directors are confident that there will be no impact upon the exemplary levels of customer service in making the requisite changes. |
Taking into account the board's ongoing efforts to structure the business to be capable of delivering greater operational efficiencies through investment in both processes and innovation, the directors are satisfied with the level of gross profit margins reported in the year considering the challenges they faced in the market as outlined. |
Resultant from the above the group has reported profitability at £0.264m before tax (4.2%) compared to the previous year's profitability of £0.805m before tax (11.7%). |
The directors are pleased to report that a successful round of negotiations took place following the financial year end which has seen long term tenants favourably renewing leases for a further term, the benefits of which will accrue with immediate effect. |
The directors recognise that economic conditions are challenging at the time of preparing this report, but with the actions around process and controls being fully implemented, the board are confident that recent historic profitability trends are attainable into the coming financial year and beyond. |
Principal risks and uncertainties |
The directors recognise that risk is inherent in any business and seek to manage risk in a controlled manner. |
The key business risks are set out as follows: |
Economic - the group is subject to many of the same general economic risks faced by other businesses especially during periods of economic downturn. The business seeks to mitigate this risk by having a diverse range of products with a broad demographic mix of customers. |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Group Strategic Report |
for the year ended 30th September 2024 |
Commercial - the business operates in a competitive marketplace and faces competition from other retailers. The business seeks to mitigate this risk by continually developing and expanding their product range, and offering an extensive range of high quality products. |
Financing - the group retains a significant cash holding to provide flexibility around purchasing and seasonal trading impacts, whilst capital investment funding requirements are met through a combination of medium term loans. |
Financial - the business has limited exposure to liquidity risk, and interest rate fluctuations. The business has established a number of policies and management tools to mitigate the risks presented. |
Financial key performance indicators |
The key performance indicators are as follows: |
2024 | 2023 |
£'000 | £'000 |
Turnover | 6,251 | 6,874 |
Gross profit | 1,236 | 1,592 |
Operating profit | 375 | 844 |
Pre-tax profit | 264 | 805 |
The directors monitor a range of KPIs on a regular basis including operating efficiency, asset utilisation, liquidity and asset ratios, as well as cash flow forecasting systems. |
ON BEHALF OF THE BOARD: |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Report of the Directors |
for the year ended 30th September 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30th September 2024. |
PRINCIPAL ACTIVITIES |
The principal activities of the group were that of a Garden Centre and a Holding company. |
DIVIDENDS |
The total distribution of dividends for the year ended 30th September 2024 will be £ 421,910 . |
DIRECTORS |
The directors who have held office during the period from 1st October 2023 to the date of this report are as follows: |
Mr S L Humphreys |
Miss K B Humphreys |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- select suitable accounting policies and then apply them consistently |
- make judgments and accounting estimates that are reasonable and prudent |
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements |
- prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the company will continue in business |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Report of the Directors |
for the year ended 30th September 2024 |
AUDITORS |
The auditors, Barrons Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Sorcerer Holdings Limited |
Opinion |
We have audited the financial statements of Sorcerer Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30th September 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30th September 2024 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Sorcerer Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Sorcerer Holdings Limited |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. |
The following laws and regulations were identified as being of significance to the entity: |
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation. |
- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include operating licence, environmental regulations, health and safety legislation. |
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud. |
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Sorcerer Holdings Limited |
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 a Report of the Auditors 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 |
Chartered Accountants |
& Statutory Auditors |
Monometer House |
Rectory Grove |
Leigh on Sea |
Essex |
SS9 2HN |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Consolidated Profit and Loss Account |
for the year ended 30th September 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 | 6,251,248 | 6,873,500 |
Cost of sales | 5,015,564 | 5,281,899 |
GROSS PROFIT | 1,235,684 | 1,591,601 |
Administrative expenses | 1,141,947 | 1,073,119 |
93,737 | 518,482 |
Other operating income | 281,291 | 325,780 |
OPERATING PROFIT | 5 | 375,028 | 844,262 |
Interest receivable and similar income | 51,017 | 32,015 |
426,045 | 876,277 |
Interest payable and similar expenses | 6 | 161,799 | 71,639 |
PROFIT BEFORE TAXATION | 264,246 | 804,638 |
Tax on profit | 7 | 82,966 | 202,674 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 181,280 | 601,964 |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Consolidated Other Comprehensive Income |
for the year ended 30th September 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 181,280 | 601,964 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
181,280 |
601,964 |
Total comprehensive income attributable to: |
Owners of the parent | 181,280 | 601,964 |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Consolidated Balance Sheet |
30th September 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 7,754,653 | 1,161,990 |
Investments | 11 | - | - |
7,754,653 | 1,161,990 |
CURRENT ASSETS |
Stocks | 12 | 1,169,656 | 1,331,031 |
Debtors | 13 | 131,247 | 2,050,065 |
Cash at bank and in hand | 2,176,631 | 916,279 |
3,477,534 | 4,297,375 |
CREDITORS |
Amounts falling due within one year | 14 | 1,400,357 | 1,658,704 |
NET CURRENT ASSETS | 2,077,177 | 2,638,671 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,831,830 |
3,800,661 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(7,083,321 |
) |
(817,395 |
) |
PROVISIONS FOR LIABILITIES | 19 | (41,386 | ) | (35,513 | ) |
NET ASSETS | 2,707,123 | 2,947,753 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 11,000 | 11,000 |
Retained earnings | 21 | 2,696,123 | 2,936,753 |
SHAREHOLDERS' FUNDS | 2,707,123 | 2,947,753 |
The financial statements were approved by the Board of Directors and authorised for issue on 24th June 2025 and were signed on its behalf by: |
Mr S L Humphreys - Director |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Company Balance Sheet |
30th September 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 15,951 | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Consolidated Statement of Changes in Equity |
for the year ended 30th September 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1st October 2022 | 11,000 | 2,966,584 | 2,977,584 |
Changes in equity |
Dividends | - | (631,795 | ) | (631,795 | ) |
Total comprehensive income | - | 601,964 | 601,964 |
Balance at 30th September 2023 | 11,000 | 2,936,753 | 2,947,753 |
Changes in equity |
Dividends | - | (421,910 | ) | (421,910 | ) |
Total comprehensive income | - | 181,280 | 181,280 |
Balance at 30th September 2024 | 11,000 | 2,696,123 | 2,707,123 |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Company Statement of Changes in Equity |
for the year ended 30th September 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Balance at 30th September 2023 |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - |
Balance at 30th September 2024 |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Consolidated Cash Flow Statement |
for the year ended 30th September 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 537,501 | 1,488,840 |
Interest paid | (156,521 | ) | (68,066 | ) |
Interest element of hire purchase payments paid |
(5,278 |
) |
(3,573 |
) |
Tax paid | (214,031 | ) | (60,225 | ) |
Net cash from operating activities | 161,671 | 1,356,976 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (6,685,862 | ) | (33,496 | ) |
Sale of tangible fixed assets | - | 3,308 |
Interest received | 51,017 | 32,015 |
Net cash from investing activities | (6,634,845 | ) | 1,827 |
Cash flows from financing activities |
New loans in year | 4,040,000 | - |
Loan repayments in year | (1,028,706 | ) | (190,508 | ) |
Capital repayments in year | (12,839 | ) | (5,376 | ) |
Amount introduced by directors | 6,610,026 | 504,630 |
Amount withdrawn by directors | (1,453,045 | ) | (2,515,967 | ) |
Equity dividends paid | (421,910 | ) | (631,795 | ) |
Net cash from financing activities | 7,733,526 | (2,839,016 | ) |
Increase/(decrease) in cash and cash equivalents | 1,260,352 | (1,480,213 | ) |
Cash and cash equivalents at beginning of year |
2 |
916,279 |
2,396,492 |
Cash and cash equivalents at end of year | 2 | 2,176,631 | 916,279 |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 30th September 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 264,246 | 804,638 |
Depreciation charges | 136,110 | 180,921 |
Loss on disposal of fixed assets | - | 3,896 |
Finance costs | 161,799 | 71,639 |
Finance income | (51,017 | ) | (32,015 | ) |
511,138 | 1,029,079 |
Decrease in stocks | 161,375 | 610,936 |
(Increase)/decrease in trade and other debtors | (15,212 | ) | 120,036 |
Decrease in trade and other creditors | (119,800 | ) | (271,211 | ) |
Cash generated from operations | 537,501 | 1,488,840 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30th September 2024 |
30.9.24 | 1.10.23 |
£ | £ |
Cash and cash equivalents | 2,176,631 | 916,279 |
Year ended 30th September 2023 |
30.9.23 | 1.10.22 |
£ | £ |
Cash and cash equivalents | 916,279 | 2,396,492 |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 30th September 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
Other |
non-cash |
At 1.10.23 | Cash flow | changes | At 30.9.24 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 916,279 | 1,260,352 | 2,176,631 |
916,279 | 1,260,352 | 2,176,631 |
Debt |
Finance leases | (29,893 | ) | 12,839 | - | (59,966 | ) |
Debts falling due |
within 1 year | (192,001 | ) | 15,065 | - | (176,936 | ) |
Debts falling due |
after 1 year | (794,125 | ) | (3,026,359 | ) | - | (3,820,484 | ) |
(1,016,019 | ) | (2,998,455 | ) | - | (4,057,386 | ) |
Total | (99,740 | ) | (1,738,103 | ) | - | (1,880,755 | ) |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Financial Statements |
for the year ended 30th September 2024 |
1. | STATUTORY INFORMATION |
Sorcerer Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
During the year, on 30th June 2024, the company merged with Summerhill Nurseries Limited using a share for share swap meeting the requirements for merger accounting. As a result, the directors have decided to prepare the financial statements under the merger accounting method. |
The following are the practical effects of merger accounting: |
(a) | the new shares issued as consideration for the merger, and therefore the 'parent's' investment in the 'acquired' company, are recorded at their nominal amount in the books of the acquiring company; |
(b) | the net assets of the two companies are combined using existing book values, with adjustments made as necessary to ensure that the same accounting policies are applied to the calculation of the net assets of both companies; |
(c) | no amount is recognised as consideration for goodwill; and |
(d) | the consolidated profit and loss account includes the profits of each company for the entire period, regardless of the date of the merger, and the comparative amounts in the consolidated accounts are restated ti the aggregate of the amounts recorded by the two companies. The only exception is the disclosure of directors' remuneration. Adjustments are made as necessary to ensure that the profits of the combining companies has been calculated using consistent accounting policies. |
Turnover |
The turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before the revenue is recognised: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- | the Company has transferred the significant risks and rewards of ownership to the buyer; |
- | the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- | the amount of revenue can be measured reliably; |
- | it is probable that the Company will receive the consideration due under the transaction; and |
- | the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Rendering of services |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- | the amount of revenue can be measured reliably; |
- | it is probable that the Company will receive the consideration due under the contract; |
- | the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
- | the costs incurred and the costs to complete the contract can be measured reliably |
Rents receivable |
Rent receivable is measured as the fair value of consideration received as per the terms of the lease agreement. Rent is received on a monthly on an accruals basis. |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets less residual value over their estimated useful lives, using either a straight line or reducing balance method, as indicated below. |
Depreciation is provided on the following basis: |
Leasehold property | - Straight Line over 25 years |
Freehold property | - No depreciation - High residual value depreciation not deemed necessary |
Plant and machinery etc. | - 20% Straight Line, 25% Straight Line and 33% Straight Line |
The asset's residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit and loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2024 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Financial instruments |
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit and loss. |
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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. |
Debtors |
Basic financial assets, including trade and other debtors, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment. |
Creditors |
Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, 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. Such instruments are subsequently carried at amortised cost using effective interest method, less any impairment. |
Cash and cash equivalents |
Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amount of cash with insignificant risk of change in value. |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2024 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Sale of Goods | 5,797,901 | 6,502,315 |
Sale of Services | 453,347 | 371,185 |
6,251,248 | 6,873,500 |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 1,708,191 | 1,593,841 |
Social security costs | 135,762 | 127,335 |
Other pension costs | 36,377 | 30,557 |
1,880,330 | 1,751,733 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 2 | 2 |
Staff | 85 | 78 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 17,688 | 17,688 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 9,438 | 10,688 |
Depreciation - owned assets | 121,840 | 169,796 |
Depreciation - assets on hire purchase contracts | 14,271 | 11,125 |
Loss on disposal of fixed assets | - | 3,896 |
Auditors' remuneration | 21,000 | 15,750 |
Foreign exchange differences | (682 | ) | - |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2024 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 2,805 | 319 |
Bank loan interest | 61,294 | - |
Arrangement fees | 40,000 | - |
Bank loan interest | 52,422 | 67,747 |
Hire purchase | 5,278 | 3,573 |
161,799 | 71,639 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 77,093 | 214,031 |
Deferred tax | 5,873 | (11,357 | ) |
Tax on profit | 82,966 | 202,674 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 264,246 | 804,638 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
66,062 |
201,160 |
Effects of: |
Expenses not deductible for tax purposes | 8 | 3,618 |
Depreciation in excess of capital allowances | 12,205 | 38,349 |
Deferred tax | 5,873 | (11,357 | ) |
Corporation tax rate change | - | (29,096 | ) |
Profit taxed at 19% | (1,182 | ) | - |
Total tax charge | 82,966 | 202,674 |
8. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements. |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2024 |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of o1 each |
Interim | 237,535 | 346,495 |
Ordinary C shares of o1 each |
Interim | 184,375 | 285,300 |
421,910 | 631,795 |
10. | TANGIBLE FIXED ASSETS |
Group |
Freehold | Long | Plant and |
property | leasehold | machinery |
£ | £ | £ |
COST |
At 1st October 2023 | - | 3,129,696 | 590,427 |
Additions | 6,491,732 | 162,173 | 61,077 |
At 30th September 2024 | 6,491,732 | 3,291,869 | 651,504 |
DEPRECIATION |
At 1st October 2023 | - | 2,075,939 | 529,924 |
Charge for year | - | 76,000 | 39,644 |
At 30th September 2024 | - | 2,151,939 | 569,568 |
NET BOOK VALUE |
At 30th September 2024 | 6,491,732 | 1,139,930 | 81,936 |
At 30th September 2023 | - | 1,053,757 | 60,503 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1st October 2023 | 104,111 | 40,067 | 3,864,301 |
Additions | 7,078 | 6,714 | 6,728,774 |
At 30th September 2024 | 111,189 | 46,781 | 10,593,075 |
DEPRECIATION |
At 1st October 2023 | 77,368 | 19,080 | 2,702,311 |
Charge for year | 10,148 | 10,319 | 136,111 |
At 30th September 2024 | 87,516 | 29,399 | 2,838,422 |
NET BOOK VALUE |
At 30th September 2024 | 23,673 | 17,382 | 7,754,653 |
At 30th September 2023 | 26,743 | 20,987 | 1,161,990 |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2024 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1st October 2023 | - | 44,500 | 44,500 |
Additions | 44,374 | - | 44,374 |
At 30th September 2024 | 44,374 | 44,500 | 88,874 |
DEPRECIATION |
At 1st October 2023 | - | 22,906 | 22,906 |
Charge for year | 5,177 | 9,094 | 14,271 |
At 30th September 2024 | 5,177 | 32,000 | 37,177 |
NET BOOK VALUE |
At 30th September 2024 | 39,197 | 12,500 | 51,697 |
At 30th September 2023 | - | 21,594 | 21,594 |
Company |
Freehold |
property |
£ |
COST |
Additions |
At 30th September 2024 |
NET BOOK VALUE |
At 30th September 2024 |
The property cost was based on the valuation carried out by CBRE Limited on 21st May 2024. |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2024 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
Additions |
At 30th September 2024 |
NET BOOK VALUE |
At 30th September 2024 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Pipps Hill Road, Arterial Road, Billericay, Essex, CM11 2UJ |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
12. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Finished goods | 1,169,656 | 1,331,031 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Trade debtors | 81 | 399 |
Other debtors | 24,064 | 12,462 |
Directors' current accounts | - | 1,934,030 |
Prepayments and accrued income | 107,102 | 103,174 |
131,247 | 2,050,065 |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 176,936 | 192,001 |
Hire purchase contracts (see note 17) | 20,080 | 6,623 |
Trade creditors | 896,230 | 1,078,027 |
Amounts owed to group undertakings | - | - |
Corporation Tax | 77,093 | 214,031 |
Social security and other taxes | 42,574 | 62,031 |
Other creditors | 39,605 | 45,945 |
Accruals and deferred income | 147,839 | 60,046 |
1,400,357 | 1,658,704 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans (see note 16) | 3,820,484 | 794,125 |
Hire purchase contracts (see note 17) | 39,886 | 23,270 |
Directors' loan accounts | 3,222,951 | - | 3,222,951 | - |
7,083,321 | 817,395 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 176,936 | 192,001 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 188,017 | 196,856 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 3,632,467 | 234,433 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | - | 362,836 | - | - |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2024 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 20,080 | 6,623 |
Between one and five years | 39,886 | 23,270 |
59,966 | 29,893 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans | 3,997,420 | - |
Hire purchase contracts | 59,966 | - | - | - |
4,057,386 | - |
The bank loan balance is secured by a debenture in favour of Barclays Bank plc and consists of fixed and floating charges over the Company's property and assets. |
The hire purchase contracts are secured against the assets to which they relate. |
19. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 41,386 | 35,513 |
Group |
Deferred |
tax |
£ |
Balance at 1st October 2023 | 35,513 |
Provided during year | 5,873 |
Balance at 30th September 2024 | 41,386 |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 |
value: | £ |
5,000 | Ordinary | £1 | 5,000 |
1,000 | Ordinary B | £1 | 1,000 |
5,000 | Ordinary C | £1 | 5,000 |
11,000 |
The following shares were issued during the year for cash at par: |
5,000 Ordinary shares of £1 |
1,000 Ordinary B shares of £1 |
5,000 Ordinary C shares of £1 |
Ordinary and Ordinary C Shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any right of redemption. |
Ordinary B Shares have attached to them dividend rights; they do not confer any right of redemption. |
21. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1st October 2023 | 2,936,753 |
Profit for the year | 181,280 |
Dividends | (421,910 | ) |
At 30th September 2024 | 2,696,123 |
Company |
Retained |
earnings |
£ |
Profit for the year |
At 30th September 2024 |
SORCERER HOLDINGS LIMITED (REGISTERED NUMBER: 15416891) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30th September 2024 |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
Director's current account 2024 |
2024 | 2023 |
£ | £ |
Balance outstanding at start of the year | 1,934,030 | (77,307 | ) |
Amounts repaid | (6,610,026 | ) | (504,630 | ) |
Amounts advanced | 1,453,045 | 2,515,967 |
Balance outstanding at end of period | (3,222,951 | ) | 1,934,030 |
During the year, the company charged interest on the directors' loan accounts totalling £31,423 (2023: £15,505). |
23. | RELATED PARTY DISCLOSURES |
During the year, Summerhill Nurseries Limited was charged rent of £109,900 (2023: £144,400) by directors of the company. |
24. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling parties are Mr S L Humphreys and Ms K B Humpheys. |