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Registered number:
FOR THE YEAR ENDED 31 MARCH 2025
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SUDBURY SILK MILLS LIMITED
COMPANY INFORMATION
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SUDBURY SILK MILLS LIMITED
CONTENTS
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SUDBURY SILK MILLS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The principal activity of the company during the year was that of a holding company of a trading group. The company also holds cash, other investments and properties that are rented out both for use within the business and to third parties. The subsidiary companies are principally engaged in the designing and the weaving of silk and other luxury fabrics. One subsidiary also holds properties that are rented out for use within the business. .
During the year, turnover decreased by 4.7% to £9,666k (2024 - £10,141k), with a gross margin of 37.0% (2024 – 37.2%). The Group made a net profit before tax of £597k (2024 - £1,842k).
The Group has delivered another successful year, achieved in a business environment which remains volatile and uncertain. Despite significant year on year wage inflation and challenging global economic conditions in customer markets, the company has maintained stability through leveraging customer relationships, and benefiting from cost monitoring, judicious investment, and efficiency programs. Liquidity remains strong, with a current ratio of 7.3 (2024 – 5.7). Considering the prevailing market conditions, the director’s express satisfaction with this year’s results.
The UK manufacturing sector faces continued risks and persistent challenges such as ongoing higher interest rates, political uncertainty both locally and abroad and escalation of conflict in Europe and the Middle East.
Despite these challenging conditions, group directors maintain a positive outlook for the business. Emphasis will be placed on cost reduction, staff training and safety measures, adoption of new technologies, and exceptional customer service as key drivers for achieving expected profitability.
Financial
The directors measure the Group's performance on gross profit and net profit achieved. Environmental Social and Governance Further to financial performance indicators we have recognised the importance of environmental, social and governance activities and upcoming reporting requirements. The directors recognise our industry’s impact on our planet, and want to be a positive force for change. The directors are committed to more than just meeting industry sustainability standards—we aim to set the bar higher. They are delighted to be the first UK mill to earn the Oeko-Tex STeP certification and consider seriously a forward-thinking approach and dedication to environmental and ethical excellence. The directors sustainability efforts focus on four main pillars: Products, Processes, Environment, and Social Responsibility. The businesses have taken a proactive approach to undertake actions toward measuring and simultaneously reducing energy usage and the environmental impact of wider business activities. Beyond this responsibility section, further data on other environmental, social and governance topics, plus more detailed examples of the company’s progress are available in our annual responsibility report.
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SUDBURY SILK MILLS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
This report was approved by the board and signed on its behalf.
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SUDBURY SILK MILLS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
The profit for the year, after taxation, amounted to £568,797 (2024 - £1,434,731).
During the year, the directors declared dividends of £100,000 (2024 - £167,104).
The directors who served during the year were:
The Directors have been actively and closely involved in the affairs of the Group throughout the year to 31 March 2025, they continue to be involved and as such are aware of the effect of rising costs and economic uncertainty on the business and operations of the Group.
Net assets within the Group remain more than sufficient to meet its financial obligations when they become due. The Directors continue to explore new market opportunities and plan to continue the investment in developing and sustaining the business going forward. Whilst there is clearly currently some future economic uncertainty, these conditions do not cast significant doubt about the ability of the Group to continue as a going concern. Based on this, the Directors have concluded that they have a reasonable expectation that the Group will have adequate resources to continue in operational existence for the foreseeable future, and, based on the economic environment recovering within the timeframe being widely anticipated, at least twelve months from the date of signing these financial statements, they continue to adopt the going concern basis of accounting in preparing these financial statements. Further detail is included in the going concern accounting policy.
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SUDBURY SILK MILLS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
There have been no significant events affecting the Group since the year end.
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SUDBURY SILK MILLS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The auditors, Larking Gowen LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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SUDBURY SILK MILLS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUDBURY SILK MILLS LIMITED
We have audited the financial statements of Sudbury Silk Mills Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2025, which comprise the Group Statement of comprehensive income, the Group and Company Balance sheets, the Group Statement of cash flows, the Group and Company Statements of changes in equity and the related notes, 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 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 or 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.
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SUDBURY SILK MILLS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUDBURY SILK MILLS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
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 Directors' report.
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SUDBURY SILK MILLS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUDBURY SILK MILLS LIMITED (CONTINUED)
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 Auditors' 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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• Enquiry with management regarding any actual or potential litigations and claims against the company; • Enquiry with management regarding any known or suspected instances of non-compliance with laws and regulations and fraud; • Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; • Challenging assumptions and judgments made by management in their significant accounting estimates, in particular in relation to the investment property valuation; • Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness. Because of the field in which the client operates, we identified the following areas or laws and regulations as those most likely to have a material impact on the financial statements: Health and Safety; employment law (including the Working Time Directive); anti-bribery and corruption; General Data Protection Regulations andcompliance with the UK Companies Act. Because of the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
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 Auditors' report.
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SUDBURY SILK MILLS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SUDBURY SILK MILLS LIMITED (CONTINUED)
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 Auditors' 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
Chartered Accountants
Statutory Auditors
Ipswich
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SUDBURY SILK MILLS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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SUDBURY SILK MILLS LIMITED
REGISTERED NUMBER: 11267590
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2025
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SUDBURY SILK MILLS LIMITED
REGISTERED NUMBER: 11267590
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 43 form part of these financial statements.
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SUDBURY SILK MILLS LIMITED
REGISTERED NUMBER: 11267590
COMPANY BALANCE SHEET
AS AT 31 MARCH 2025
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SUDBURY SILK MILLS LIMITED
REGISTERED NUMBER: 11267590
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 21 to 43 form part of these financial statements.
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